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Real estate investing can be a profitable and worthwhile financial venture to build cash flow, obtain a great return-on-investment and to build a legacy for your children and your children’s children. However, be wise and understand that you can achieve significant success sooner by avoiding common investor pitfalls.

Mistake # 1 – Spending thousands of dollars buying books, tapes and attending seminars and then putting all of that information on a bookshelf and never looking at (or using) itI am continually amazed at the number of “would be” investors who have spent a bundle of money attending seminars, getting an education and then never using it to start their investment program. Not only is it a waste of thousands of dollars but it could be the biggest financial mistake you can make.

Mistake # 2 – Failure to learn the basics of real estate investingThe other extreme to Number 1 above are potential investors who realize real estate is the best way to accumulate wealth and venture into the purchase of properties without knowing the basics of real estate investing. Those investors are certain to get into financial trouble.

Mistake # 3 – Fear of making a huge financial mistakeWe all fear making mistakes, especially a large financial one. If you follow the advice in Number 2 above, you won’t have to worry about making a financial mistake.

Mistake # 4 – Not looking at more propertiesDon’t fall in love with the first property you look at. Lots of investors buy properties because they “look nice” or they are too lazy to see what else is currently on the market that may be better. Part of sound real estate investing is in giving yourself a choice so you can select the best one, financially.

Mistake # 5 – “A better deal may be around the corner” syndromeThis is the opposite mistake of Number 4. This investor never starts his or her real estate investment program because they always hope a better deal may be out there somewhere if they wait…and wait…and wait.

Mistake # 6 – Thinking that real estate investing is strictly a complicated game that only the wealthy can playFirst of all, real estate investing isn’t complicated if you learn how to do it first. Did you know that even professional investors use a simple nine step process to analyze the financial feasibility of an investment property?

Here’s a brief idea of the nine simple steps to use in analyzing any type or size investment property.

A Basic Financial Property Analysis1. Scheduled Gross Income (Income if 100% leased) 2. Less: Allowance for vacancies 3. Operating Income before expense & Mtg. Pmts. 4. Less Operating Expenses (Taxes, insurance, utilities, repairs and maintenance etc.) 5. Equals: Operating Income (Income before Mtg. Pmts.) 6. Minus: Mortgage Payments 7. Equals Cash Flow 8. Plus: Mortgage Principle Payment 9. Total Return

There is a lot more to it than that, but this is the basic nine step procedure most professional investors use when analyzing any income producing investment property.

Mistake # 7 – Falling in love with a propertyOnce you’ve got your feet wet and become a real estate investor, you’ll wonder why you waited so long to begin. Now you’ll face another problem – falling in love with your property. They’ve seen how well it is doing, cash flow has been going up each year, and they’ve fallen in love with their tenants (not literally). Two big mistakes are made here. First, never fool yourself into thinking your property is doing well enough to sell or trade up because your cash flow is considerably higher than when you purchased the property.

The second part of mistake number 7 is getting so friendly with your tenants that you fail to maintain rental standards based on what the market will bear. This greatly hinders your growth potential.

Mistake # 8 – Failure to effectively plan your financial goalsBefore you purchase that first property, which, of course, you have financially analyzed, determine what you expect from your investments — your financial goals. It is known as “The ‘time vs. money’” concept. The more you have of one the less you need of the other in order to reach your financial goals.

Mistake # 9 – Trying to purchase properties that the seller isn’t motivated to sellBuying off-market properties is a wise strategy that can can generate “built-in” profits. However, I have seen potential buyers continually try to purchase investment properties that owners are just not interested in selling. This includes property owners with the attitude that “Sure, it is for sale… for a price.” Unfortunately the ‘for a price’ part usually means it will make no financial sense for a buyer.

Mistake # 10 – Believing you can get rich overnight.Getting rich overnight won’t happen . . . (regardless of what a number of the so called “experts” tell you). It takes time, hard work and knowledge of real estate investing to do it with maximum return. The important thing to remember is that YOU can do it. You can join the millions of investors who generate sizable incomes by investing in real estate but be patient and prudent.

Mistake # 11 – Not financially analyzing a potential investment propertyThis is the most serious mistake an investor, or potential investor, can make. I have seen a few pros in the business rely on a “worthless and inaccurate” rule of thumb to make a huge financial purchase decision, with total disregard for how well the property will perform.

It’s all in the numbers! Make sure you have carefully collected the right data, that you are allowing for all contingencies and that the numbers work before you buy.

Oh, yes, there is one more major mistake lots of investor make:

Mistake # 12 – Thinking it is important to pay off your mortgage as soon as you can because mortgages are a ‘necessary evil’First of all as a real estate investor, mortgages are an important part of financial success and not a necessary evil. You must learn why this is true. You must learn how, in the right situation, a second or third mortgage can be a nice thing. Secondly, mortgages are one of the keys to generating wealth in real estate. You must learn how to use financing as one of the keys to building a profitable real estate portfolio, without concern for it being “risky.”

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In some U.S. cities, local governments and organizations offer free or highly discounted real estate to attract residents, revitalize neighborhoods, or stimulate economic development. Here are a few examples of such cities or programs:

1. Buffalo, New York Program: Urban Homestead Program * Details*: The city of Buffalo offers vacant homes for $1 to individuals who agree to renovate and live in the property for a minimum period. The program aims to rejuvenate neighborhoods with high vacancy rates. Applicants must demonstrate the ability to bring the home up to code within a specified time frame.

2. Curtis, Nebraska Program: Free Lots in Roll’n Hills * Details*: Curtis offers free residential lots to individuals who agree to build a home within a set time frame. The city is promoting its “Roll’n Hills” subdivision, hoping to attract new residents to this small community. The program is aimed at revitalizing the area by encouraging new construction.

3. Lincoln, Kansas Program: Free Lots in Lincoln * Details*: Lincoln offers free residential lots in a new subdivision to anyone willing to build a home. The lots are provided with the expectation that the homes will be completed within a year. This program is designed to attract new families and businesses to the small town.

4. Marne, Iowa Program: Free Land Program * Details*: Marne, a small town in Iowa, offers free land to individuals willing to build a home. The land comes with some requirements, such as the home needing to be a certain size and built within a specific time frame. This initiative aims to increase the town’s population and economic activity.

5. Mankato, Kansas Program: Free Lots for New Construction * Details*: Mankato offers free lots to individuals or families who commit to building a home. This program is part of the city’s effort to encourage new residents and development in the area. The lots are in a residential area with access to necessary utilities.

Important Considerations: Eligibility: Most programs have specific requirements, such as a commitment to build and occupy the property, financial ability to complete the project, and sometimes even community involvement. * Costs: While the land or property might be free, there are still costs associated with building, renovation, and taxes. * Location*: These opportunities are typically in smaller towns or cities that are seeking to boost their populations and local economies.

These programs are great opportunities for those willing to invest time and resources into building or renovating properties in smaller communities.

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Real estate investing offers various strategies to grow wealth, each with its own risk profile, time commitment, and potential returns. Here are five of the best real estate investing strategies:

1. Rental Properties (Buy and Hold)Overview:* Purchase properties to rent out and generate a steady stream of income.

Pros:* Passive income through rental payments. * Property appreciation over time. * Tax benefits, such as depreciation and mortgage interest deductions.

Cons:* Requires property management, which can be time-consuming or costly if outsourced. * Risk of vacancy and maintenance issues.

Best For:* Long-term investors looking for steady cash flow and potential appreciation.

1. House FlippingOverview:* Buy properties, renovate them, and sell at a higher price.

Pros:* Potential for high short-term profits. * Opportunity to leverage market timing and improvements.

Cons:* Requires significant upfront capital and expertise in construction/renovation. * Market fluctuations can impact profitability.

Best For:* Investors with experience in real estate, construction, or design who can manage projects efficiently.

1. Real Estate Investment Trusts (REITs)Overview:* Invest in publicly traded companies that own, operate, or finance income-generating real estate.

Pros:* Liquid investment similar to stocks. * Diversification across various properties and markets. * Regular dividends.

Cons:* Limited control over property management and decisions. * Market risk similar to other equities.

Best For:* Investors looking for real estate exposure without direct property ownership or management responsibilities.

1. Short-Term Rentals (Airbnb/VRBO)Overview:* Rent out properties on a short-term basis to tourists and travelers.

Pros:* Higher income potential compared to traditional long-term rentals. * Flexibility to use the property personally.

Cons:* Requires constant management and marketing. * Subject to local regulations and seasonal demand.

Best For:* Investors in high-demand tourist locations or those who prefer more active management.

1. Real Estate CrowdfundingOverview:* Pool money with other investors to fund real estate projects through online platforms.

Pros:* Low barrier to entry with small investment minimums. * Access to diverse real estate projects.

Cons:* Less liquidity compared to REITs. * Dependent on the performance of specific projects and platforms.

Best For:* Investors looking for a passive investment with diversification in different real estate projects without direct management.

Each of these strategies can be tailored to your financial goals, risk tolerance, and level of involvement.

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Investing in real estate during recessionary times can be challenging but also presents unique opportunities. Here are some strategies to consider:

1. Focus on Cash Flow Why: In uncertain times, properties that generate consistent rental income become highly valuable. * Strategy:* Look for properties in stable markets with strong rental demand. Multifamily units, single-family homes in high-demand areas, and properties near employment hubs can be good options.

2. Consider Distressed Properties Why: Recessions often lead to more foreclosures and distressed properties, which can be acquired at a discount. * Strategy:* Identify and purchase distressed properties that can be rehabilitated and either rented out or sold for a profit once the market recovers.

3. Invest in REITs Why: Real Estate Investment Trusts (REITs) offer a way to invest in real estate without directly owning property, providing liquidity and diversification. * Strategy:* Focus on REITs that invest in sectors more resilient to economic downturns, like healthcare, residential, or industrial properties.

4. Prioritize Location Why: Location becomes even more critical during a recession as demand tends to consolidate in stronger markets. * Strategy:* Invest in properties in economically diverse regions with strong job markets, good infrastructure, and population growth. Areas with universities, government employment, or stable industries are typically more resilient.

5. Leverage Low Interest Rates Why: Recessions often lead to lower interest rates, making financing cheaper. * Strategy:* Refinance existing properties to lower your debt costs, or use low-interest loans to acquire new properties, ensuring the investments are cash-flow positive.

6. Stay Liquid and Avoid Overleveraging Why: Liquidity is crucial during a recession to cover unexpected expenses or take advantage of sudden opportunities. * Strategy:* Keep sufficient cash reserves and avoid taking on too much debt. This ensures you can weather economic downturns without being forced to sell assets at a loss.

7. Invest in Essential Services Real Estate Why: Properties tied to essential services, like grocery stores, healthcare facilities, or affordable housing, tend to perform better during recessions. * Strategy:* Look for opportunities in these sectors, which are less likely to see a decline in demand during economic downturns.

8. Prepare for Longer Holding Periods Why: Property values might take longer to recover during a recession, so a longer investment horizon may be necessary. * Strategy:* Be prepared to hold onto properties longer than usual, focusing on assets that can generate consistent income during this period.

9. Diversify Your Portfolio Why: Diversification reduces risk, especially in volatile markets. * Strategy:* Spread your investments across different property types (residential, commercial, industrial) and geographic locations to mitigate risk.

10. Negotiate Stronger Deals Why: In a recession, sellers may be more willing to negotiate favorable terms due to lower demand. * Strategy:* Use the market conditions to negotiate lower purchase prices, better financing terms, or favorable contingencies.

11. Partner with Experienced Investors Why: Experienced investors can provide valuable insights and help navigate the complexities of investing during a recession. * Strategy:* Consider joint ventures or partnerships with seasoned investors who have successfully navigated past downturns.

12. Monitor Market Trends Closely Why: Recessions can create rapid shifts in the real estate market. * Strategy:* Stay informed about economic indicators, local market conditions, and government policies that could impact real estate. This will help you make timely and informed decisions.

By implementing these strategies, you can better position yourself to take advantage of opportunities and minimize risks during a recession.

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As some of you may know, when I moved to Tennessee, I purchased my first RV Park. Using income from the sale of other properties, I was able to completely purchase the park without having to borrow or raise funds. And even though I was a bit reluctant to make the purchase, it has been a great investment and a lot of fun.

However, if you don’t happen to have the funds from the sale of another property to help you get started in acquiring an RV Park, there are still other other ways you can get started without a lot of money. Starting an RV park with little to no money is challenging, but it is still possible with creativity, strategic planning, and resourcefulness. Here are some steps and strategies to help you get started:

1. Develop a Solid Business Plan Detailed Planning: Create a comprehensive business plan outlining your vision, target market, revenue projections, and marketing strategies. This will be crucial for attracting investors and securing financing. * Market Research:* Conduct thorough market research to identify a suitable location and understand the demand and competition in the area.

2. Find Potential Partners or Investors Joint Ventures: Partner with landowners who have unused property suitable for an RV park. Offer them a percentage of profits in exchange for using the land. * Investors: Pitch your business plan to potential investors. Highlight the profitability of the RV park industry and present a clear plan for returns on their investment. * Crowdfunding:* Use crowdfunding platforms to raise funds. Create a compelling campaign that tells your story and explains why your RV park is a good investment.

3. Lease Instead of Buying Leasing Land: Instead of buying land, negotiate a lease agreement with a landowner. This reduces upfront costs and allows you to allocate funds to other areas of the business. * Rent-to-Own:* Explore rent-to-own agreements, where you lease the property with an option to purchase it later.

4. Utilize Government Grants and Loans Small Business Grants: Research and apply for small business grants available for tourism, hospitality, or rural development. Grants do not need to be repaid and can provide essential startup capital. * SBA Loans: Apply for loans from the Small Business Administration (SBA). They offer various loan programs with favorable terms for small businesses. * Economic Development Programs:* Check for local or state economic development programs that offer financial assistance or incentives for new businesses.

5. Minimize Initial Costs Phased Development: Start small and expand gradually. Focus on setting up basic amenities and adding more features as your revenue grows * Used Equipment: Purchase used or refurbished equipment and structures to save on costs. Look for auctions, classifieds, and surplus sales. * DIY Projects:* If possible, undertake some construction and maintenance tasks yourself to reduce labor costs.

6. Barter and Trade Services Skill Exchange: Offer free stays or services in exchange for construction, maintenance, or marketing work. This can help you build and maintain your park at a lower cost. * Partnerships:* Form partnerships with local businesses to trade services. For example, partner with a landscaping company for maintenance in exchange for free advertising.

7. Generate Pre-Opening Revenue Pre-sales: Offer discounted pre-sale packages to future guests. This can generate upfront cash flow and build a customer base before opening. * Membership Programs:* Create membership programs that offer exclusive benefits and early access to bookings. Collect membership fees in advance.

8. Optimize Operations for Profitability Low-Cost Marketing: Utilize social media, free online listings, and word-of-mouth marketing to promote your RV park. * Efficient Management: Implement efficient management practices to keep operational costs low. Use software for reservations, accounting, and maintenance tracking. * Additional Revenue Streams:* Offer extra services such as equipment rentals, guided tours, or a small convenience store to increase revenue.

9. Seek Community Support Local Community: Engage with the local community to gain support and possibly financial backing. Local residents and businesses may see the value in having an RV park in their area. * Volunteer Programs:* Create volunteer programs where people can help set up and maintain the park in exchange for free stays or other perks.

10. Be Persistent and Adaptable Perseverance: Starting a business with no money requires persistence and resilience. Be prepared to face challenges and setbacks, and stay committed to your vision. * Flexibility:* Be adaptable and willing to adjust your plans based on feedback, financial constraints, and market conditions.

By leveraging partnerships, creative financing options, and strategic cost-saving measures, you can start an RV park even with limited funds.

How can I become a successful RV Park owner?Becoming a successful RV park owner involves a combination of strategic planning, excellent customer service, effective marketing, and efficient management. Here are key steps and tips to help you achieve success:

1. Understanding the Industry Market Knowledge: Stay informed about trends in the RV industry, including customer preferences, seasonal variations, and emerging technologies. * Competitor Analysis:* Study your competitors to understand their strengths and weaknesses, and identify opportunities for differentiation.

2. Developing a Solid Business Plan Clear Vision: Define your goals and objectives for the RV park. Are you aiming for a family-friendly environment, a luxury resort, or a budget-friendly stopover? * Financial Planning: Outline detailed financial projections, including expected revenue, operating expenses, and profit margins. Factor in contingencies for unexpected costs. * Marketing Strategy:* Develop a comprehensive marketing plan to attract and retain customers, leveraging both online and offline channels.

3. Enhancing Customer Experience Amenities and Services: Offer a variety of amenities such as clean restrooms, laundry facilities, Wi-Fi, recreational areas, and convenience stores. Tailor services to your target demographic. * Customer Service: Train your staff to provide exceptional customer service. Friendly and helpful interactions can significantly enhance guest satisfaction and encourage repeat visits. * Feedback and Improvement:* Actively seek customer feedback and make necessary improvements. Address complaints promptly and use feedback to enhance your offerings.

4. Effective Marketing and Outreach Online Presence: Create and maintain a professional website with detailed information about your park, amenities, rates, and booking options. Utilize SEO to improve visibility. * Social Media: Use social media platforms to engage with potential and current customers. Share updates, promotions, and user-generated content. * Partnerships:* Partner with local tourism boards, RV clubs, and travel bloggers to increase your park’s exposure.

5. Efficient Operations and Management Reservation System: Implement a reliable reservation system to manage bookings, track occupancy, and reduce overbooking risks. * Maintenance: Regularly maintain and upgrade your facilities to ensure safety and comfort. Create a maintenance schedule and address issues promptly. * Staffing:* Hire competent and motivated staff. Provide training and create a positive work environment to reduce turnover.

6. Financial Management Cost Control: Monitor expenses closely and find ways to reduce costs without compromising quality. Negotiate with suppliers and consider bulk purchasing for savings. * Revenue Diversification: Explore additional revenue streams such as renting out equipment, hosting events, or offering guided tours. * Financial Tracking:* Use accounting software to keep accurate financial records. Regularly review financial statements to track performance and make informed decisions.

7. Building a Community Events and Activities: Organize events and activities to create a sense of community among your guests. This can include themed weekends, movie nights, or nature hikes. * Loyalty Programs: Implement a loyalty program to reward repeat customers and encourage longer stays. * Guest Engagement:* Foster relationships with your guests by being present, approachable, and responsive to their needs.

8. Adapting and Innovating Stay Flexible: Be willing to adapt your business model based on changing market conditions and customer feedback. * Innovation:* Continuously look for innovative ways to enhance your park’s appeal, whether through new technologies, unique services, or sustainable practices.

9. Legal and Regulatory Compliance Permits and Licenses: Ensure you have all the necessary permits and licenses to operate. Stay compliant with local, state, and federal regulations. * Safety Standards:* Adhere to safety standards and regulations to ensure the well-being of your guests and staff.

10. Networking and Learning Industry Associations: Join RV park owner associations and participate in industry events and conferences to network and learn from other successful owners. * Continuous Learning:* Stay updated with industry best practices, new management techniques, and emerging trends through continuous education and training.

By focusing on these areas, you can build a thriving RV park business that attracts loyal customers and generates sustainable profits.

How do I acquire an RV Park?Acquiring an RV park involves several steps, from researching potential properties to finalizing the purchase. Here’s a comprehensive guide to help you through the process:

1. Research and Planning Market Research: Study the RV park market to understand demand, competition, and potential profitability in various locations. * Budgeting: Determine your budget, including the purchase price, closing costs, renovations, and initial operating expenses. * Business Plan:* Create a business plan outlining your goals, target market, marketing strategies, and financial projections.

2. Finding an RV Park Real Estate Listings: Search for RV parks for sale on real estate websites, specialized RV park marketplaces, and through real estate agents. * Networking: Attend industry events, join online forums, and connect with RV park owners and investors to find off-market deals. * Brokers:* Hire a commercial real estate broker who specializes in RV parks to help you find suitable properties.

3. Evaluating Potential Properties Site Visit: Visit potential properties to assess their condition, layout, and amenities. * Financial Performance: Review the current financial performance of the RV park, including occupancy rates, revenue, and expenses. * Due Diligence:* Conduct thorough due diligence, including environmental assessments, zoning regulations, and potential legal issues.

4. Financing the Purchase Loan Options: Explore financing options such as commercial real estate loans, SBA loans, or seller financing. * Loan Approval: Prepare the necessary documentation and apply for a loan. Ensure your credit score and financials are in good shape. * Down Payment:* Arrange for the down payment, typically 20-30% of the purchase price.

5. Making an Offer Offer Letter: Submit a formal offer to the seller, including the proposed purchase price, contingencies, and closing timeline. * Negotiation: Negotiate terms with the seller, including price, contingencies, and any included assets (e.g., equipment, structures). * Purchase Agreement:* Once terms are agreed upon, draft and sign a purchase agreement.

6. Closing the Deal Escrow Account: Open an escrow account to hold funds and documents during the closing process. * Inspections and Appraisals: Arrange for property inspections and appraisals to ensure the property’s value and condition. * Title Search: Conduct a title search to ensure there are no legal issues or claims against the property. * Final Walkthrough: Perform a final walkthrough of the property before closing. * Closing Documents:* Review and sign all closing documents, including the deed, loan agreements, and transfer of ownership paperwork.

7. Post-Acquisition Transition Plan: Implement a transition plan for taking over operations, including hiring staff, marketing, and improving facilities. * Operational Systems: Set up operational systems such as booking software, accounting, and maintenance schedules. * Marketing and Outreach:* Launch marketing campaigns to attract customers and establish a strong online presence.

Additional Tips Professional Advice: Consult with real estate professionals, accountants, and attorneys throughout the process to ensure you make informed decisions. * Networking: Join RV park owner associations and online communities to stay updated on industry trends and best practices. * Continuous Improvement:* Regularly assess and improve your RV park to enhance customer satisfaction and profitability.

Acquiring an RV park requires careful planning, thorough research, and professional guidance. With the right approach, you can successfully own and operate a profitable RV park.

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Getting started in real estate investing as a teenager can be a great way to learn about finance, build skills, and potentially make money. Here’s a detailed guide to help you get started:

1. Education and Learning Read Books: Start with foundational books like “Rich Dad Poor Dad” by Robert Kiyosaki, “The Millionaire Real Estate Investor” by Gary Keller, and “The Book on Rental Property Investing” by Brandon Turner. * Online Courses: Platforms like Udemy, Coursera, and Khan Academy offer courses on real estate basics. * Podcasts and Videos:* Listen to real estate podcasts and watch YouTube channels focused on real estate investing and market trends.

2. Networking Join Real Estate Groups: Look for local real estate investment groups or online forums where you can meet experienced investors and learn from them. * Mentorship: Find a mentor in the real estate field. Many experienced investors are willing to share their knowledge and guide newcomers. * Attend Seminars and Workshops:* Participate in real estate seminars, webinars, and workshops to gain insights and meet industry professionals.

3. Understanding the Market Research Local Market: Study the real estate market in your area. Understand property values, rental rates, and market trends. * Track Listings:* Follow real estate listings on websites like Zillow, Realtor.com, and Redfin to see what properties are available and their price ranges.

4. Saving Money Start a Savings Plan: Begin saving money for future investments. Consider getting a part-time job or starting a side hustle to build your savings. * Budgeting:* Learn to budget your money wisely and save a portion of your income regularly.

5. Getting Involved Part-Time Jobs: Consider working in a real estate office, property management company, or as an assistant to a real estate agent or investor to gain practical experience. * Volunteering:* Volunteer at local housing organizations or community development programs to understand the housing market and build connections.

6. Developing Skills Communication: Enhance your communication and negotiation skills. Real estate involves dealing with various stakeholders, so being able to communicate effectively is crucial. * Financial Literacy:* Understand basic financial concepts such as mortgages, loans, interest rates, and investment strategies.

7. Exploring Entry-Level Opportunities Wholesaling: Learn about real estate wholesaling, where you find properties below market value and assign the contract to an investor for a fee. * Real Estate Investment Trusts (REITs): Consider investing in REITs, which allow you to invest in real estate without owning physical properties. * Real Estate Crowdfunding:* Explore real estate crowdfunding platforms where you can invest small amounts of money in larger real estate projects.

8. Legal and Licensing Understand Legal Requirements: Learn about the legal aspects of real estate, such as contracts, zoning laws, and tenant rights. * Get Licensed:* If you’re old enough, consider getting a real estate license, which can open up more opportunities for you in the industry.

9. Staying Informed Follow News: Keep up with real estate news and trends by following industry publications, blogs, and news outlets. * Continuous Learning:* Real estate is an ever-evolving field. Continue to educate yourself and stay updated with the latest trends and strategies.

10. Leverage Technology Use Apps: There are numerous real estate apps that can help you track the market, manage properties, and connect with other investors. * Online Tools:* Use online calculators and tools to evaluate potential investments and understand financing options.

Practical Steps for Getting Started1. Set Goals: Define what you want to achieve with real estate investing. Are you looking for short-term profits, long-term wealth, or both? 2. Create a Plan: Develop a step-by-step plan to reach your goals. This might include saving a certain amount of money, learning specific skills, or gaining work experience. 3. Start Small: Consider beginning with smaller investments, such as REITs or crowdfunding, to build your knowledge and confidence. 4. Seek Advice: Regularly seek advice and feedback from mentors and experienced investors. 5. Stay Persistent: Real estate investing can be challenging, especially at the beginning. Stay persistent, keep learning, and adapt your strategies as needed.

By starting early and taking these steps, you can build a strong foundation in real estate investing and set yourself up for future success in the industry.

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Building a real estate empire by buying fourplexes is a strategic approach that can generate significant cash flow and long-term wealth. Here are the steps you can take to achieve this:

1. Education and Research Understand the Market: Learn about real estate investing, particularly in multi-family properties like fourplexes. * Local Market Analysis: Study local real estate markets to identify areas with strong rental demand and growth potential. * Financial Education:* Familiarize yourself with key financial concepts such as ROI, cash flow, cap rates, and financing options.

2. Financial Preparation Credit Score: Ensure you have a good credit score to secure favorable mortgage terms. * Down Payment: Save for a down payment. Fourplexes often require a down payment of 20-25% for conventional loans. * Emergency Fund:* Have reserves for unexpected expenses or vacancies.

3. Finding the Right Property Location: Choose a property in a desirable area with a strong rental market, good schools, and amenities. * Property Condition: Look for properties that are in good condition or need minimal repairs. Factor in any renovation costs. * Rental Income:* Ensure the property can generate sufficient rental income to cover mortgage, taxes, insurance, and maintenance costs.

4. Financing the Purchase Mortgage Options: Explore different mortgage options such as FHA or USDA loans (which might allow for a much lower down payment – zero to 3.5% – if you live in one unit) or conventional loans. * Pre-Approval: Get pre-approved for a mortgage to streamline the purchasing process. * Leverage:* Use leverage wisely. Borrowing can amplify your returns but also increases risk.

5. Property Management Self-Management vs. Hiring a Manager: Decide whether to manage the property yourself or hire a property management company. * Tenant Screening: Implement a thorough tenant screening process to reduce the risk of defaults and vacancies. * Maintenance and Repairs:* Stay on top of maintenance to keep the property in good condition and retain tenants.

6. Scaling Up Refinancing: Consider refinancing properties to pull out equity for purchasing additional properties. * 1031 Exchange: Utilize 1031 exchanges to defer capital gains taxes when selling properties and buying new ones. * Portfolio Diversification:* Diversify your portfolio across different neighborhoods or even different cities to spread risk.

7. Legal and Tax Considerations LLC Formation: Consider forming an LLC for liability protection and potential tax benefits. * Tax Strategies: Work with a tax advisor to maximize deductions and plan for taxes. * Compliance:* Ensure compliance with local, state, and federal regulations regarding rental properties.

8. Continuous Learning and Networking Real Estate Groups: Join real estate investment groups or associations to network with other investors and stay informed about industry trends. * Education:* Continuously educate yourself through books, courses, and seminars.

Example Path1. First Fourplex: Purchase your first fourplex in a promising area, live in one unit (if using an FHA or USDA loan), and rent out the other three units. 2. Cash Flow Management: Use rental income to cover mortgage and other expenses, saving the surplus for future investments. 3. Second Property: After a one year, refinance the first property to pull out equity and purchase a second fourplex. Move out of the first fourplex and move into the newly purchased fourplex. 4. Repeat and Scale: Continue this process, leveraging your growing equity and cash flow to acquire more properties.

In just 5 years, you will have 20 units. Then you can leverage the 20 units to buy 100 units and continue the process to grow your portfolio to 1,000 units! By following these steps and maintaining a disciplined approach, you can build a substantial real estate empire that was initially built upon fourplexes.

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By Mary Aspen Richardson

Managing your real estate portfolio from afar, particularly during a cross-country move, can seem unnerving. However, with the right strategies and careful planning, you can make sure your properties remain well-maintained and profitable. Here are some key steps and considerations to help you manage your real estate portfolio effectively, even when you’re miles away.

Understand Your PropertiesThe first step in managing your real estate portfolio from a distance is to have a thorough understanding of each property. This involves a comprehensive review of their condition, value, and potential issues. Inspect the physical state of your properties to identify any repairs or maintenance that need to be addressed. It’s also important to get updated appraisals to understand the current market value of your properties, which can help you make informed decisions. Reviewing rental agreements and current tenant statuses is also crucial to ensure a consistent income stream.

Analyze Local Market TrendsConsider the local market trends and economic factors that could impact your properties’ value and rental potential. Analyzing neighborhood developments and planned infrastructure projects can provide insights into future property appreciation. Understanding the local market helps you anticipate changes and adapt your strategies accordingly. Having a clear picture of your real estate portfolio sets the foundation for effective management from afar, enabling you to strategize long-term goals and make timely decisions to maximize your investments.

Hire a Reliable Property Management CompanyA property management company handles day-to-day operations, tenant issues, maintenance, and even rent collection, allowing you to focus on other aspects of your move. When choosing a property management company, look for those with a strong track record and experience in managing properties similar to yours. Asking for references from other property owners can provide insight into their satisfaction with the company’s services.

Additionally, ensure the company has a robust communication system in place to keep you updated on all aspects of your property. A good property management company can be a valuable partner in managing your real estate portfolio from afar, providing peace of mind, and ensuring your properties are well taken care of.

Partner with a Reputable Moving CompanyAdding a reliable moving company to your plan can significantly ease the stress of managing your real estate portfolio from afar. Companies like AmeriSafe Moving Services offer a range of comprehensive moving solutions tailored to both residential and commercial needs. Their professional network ensures your belongings are safely transported across states, making them an excellent partner for your relocation needs. Using such reputable services lets you focus more on the strategic management of your properties rather than logistical challenges.

Utilize Technology for Managing Your Real Estate Portfolio from AfarTechnology offers numerous tools to help you manage your real estate portfolio remotely. Property management software allows you to monitor your properties, track income and expenses, and communicate with your property management company from anywhere. Installing cameras and security systems can help you keep an eye on your properties in real time, ensuring their safety.

Smart home devices, such as smart thermostats, lights, and locks, can help you control and monitor property conditions from a distance. Utilizing these technologies can provide peace of mind and ensure your properties are well-managed even when you’re not physically present.

Financial ManagementManaging your real estate portfolio’s finances is very important, especially from afar. Effective financial management helps maintain the health of your real estate portfolio while you’re away so your investments continue to thrive. Follow some tips:

• Setting up automatic payments for mortgages, insurance, and other recurring expenses can help you avoid late fees and ensure consistent cash flow. This simplifies your financial processes and reduces the risk of missed payments.
• Creating a detailed budget for each property, accounting for maintenance, repairs, and other unexpected expenses, is also important. This ensures you are prepared for any financial surprises that may arise.
• Regularly reviewing financial reports can help you keep track of income, expenses, and overall profitability. These reviews should be thorough and frequent, allowing you to spot trends and make adjustments as needed.

Automate and Monitor PaymentsAutomating your payments is one of the most efficient ways to manage your finances from afar. It ensures that all your obligations are met on time without the need for constant oversight. Monitoring these automated payments regularly helps in detecting any discrepancies early, ensuring your financial records are accurate and up-to-date. Keeping a close eye on these transactions can prevent issues from escalating, providing a stable financial base for your properties.

Detailed Budgeting and ForecastingCreating a detailed budget for each property is essential for effective financial management. This budget should include all potential expenses, such as maintenance, repairs, and unexpected costs. Regularly updating this budget based on actual expenses and market conditions will help you make informed decisions. Forecasting future expenses and potential income changes can also prepare you for market fluctuations, ensuring that your portfolio remains profitable.

Stay Compliant with Local LawsReal estate laws and regulations can vary significantly from one location to another, making it essential to stay compliant with local laws to avoid legal issues. Hiring a local real estate attorney can provide valuable advice on legal matters and ensure your properties comply with local regulations. An attorney can also help you navigate any changes in laws that might affect your properties.

Stay Informed About Legal ChangesStaying informed about any changes in laws that could impact your properties is also important. Subscribing to local real estate newsletters and following news updates can help you stay up-to-date. This proactive approach helps you anticipate and prepare for legal changes that may affect your properties.

Regular Audits and UpdatesConducting regular audits of your properties ensures that you are in continuous compliance with local laws and regulations. These audits should be thorough, examining every aspect of your property management practices. Regular updates on legal changes, facilitated by your attorney or through local real estate resources, keep you informed about new regulations, allowing you to adjust your management practices accordingly.

Legal Counsel and Continuous EducationHiring a local real estate attorney is a proactive step in managing your property’s legal compliance. An attorney can provide ongoing education on new regulations and legal requirements, ensuring you remain informed and compliant. Regular consultations with your legal counsel can help you stay ahead of potential legal challenges, protecting your investments from unforeseen legal troubles.

Final ThoughtsManaging your real estate portfolio from afar during a cross-country move can be difficult, but with careful planning and the right strategies, it is entirely possible. Following our strategies can ensure your properties are well-maintained and profitable, even when you’re miles away. Managing real estate from afar doesn’t have to be intimidating; with the right approach, you can make it a seamless and successful endeavor.

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By Rhonda Underhill

Embarking on the journey of real estate investing can be daunting, but the BRRRR strategy — Buy, Rehab, Rent, Refinance, Repeat — offers a clear roadmap. This approach allows you to maximize your investment potential and steadily build wealth. Understanding each step and applying strategic methods will ensure you achieve your financial goals. The Old Dawg’s REI Network offers this guide.

Unlocking the BRRRR StrategyBRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. This strategy is designed to help you acquire properties, improve them to increase value, rent them out to generate income, refinance to pull out the increased equity, and then repeat the process. By following the BRRRR method, you can leverage the value of each property to finance future investments, making it a powerful tool for real estate investors.

Identifying Ideal Properties for BRRRRSuccessful implementation of the BRRRR strategy starts with identifying properties in areas poised for growth and high rental demand. Focus on properties that are undervalued yet situated in desirable neighborhoods to maximize potential returns. Consider the property’s layout, size, and structural condition, and conduct thorough inspections to avoid unexpected renovation costs. Careful selection and evaluation ensure each property offers a strong return potential, crucial for the strategy’s success.

Efficient and Cost-Effective Property RehabbingEfficient property rehabilitation requires a meticulous approach to planning and budgeting, starting with a thorough assessment of the property’s needs and prioritizing crucial repairs. Developing a comprehensive budget that covers all expected costs, from materials to labor, is essential, and hiring dependable contractors is key to successful execution. Implementing cost-saving strategies, such as bulk material purchases or refurbishing existing fixtures, can further enhance budget efficiency.

Organizing Documents and Ensuring Secure Information Organizing your documents effectively is key to maintaining smooth business operations. By converting your important files to PDFs, you ensure that they remain accessible and uniform across various devices and platforms. When it comes to sharing these PDFs electronically, it’s vital to secure sensitive data. Exploring how to redact a PDF is crucial, allowing you to obscure personal details such as credit card numbers, social security numbers, and addresses, protecting both your and your tenants’ privacy.

Benefits of the BRRRR MethodThe BRRRR strategy offers significant benefits, including rapid equity building through property rehabilitation and refinancing. This approach allows investors to generate a passive income stream from rentals while systematically scaling their real estate portfolio. Leveraging the accumulated equity from each property, investors can finance new acquisitions, progressively leading to wealth accumulation and enhanced financial independence. This method strategically blends growth and income generation, making it an ideal model for ambitious real estate investors.

Attracting Tenants and Setting Competitive Rental RatesSecuring consistent rental income begins with attracting reliable tenants through strategic marketing and rigorous screening processes, including background and income verification. It’s essential to set competitive rental rates by analyzing local market trends and offering desirable amenities like modern appliances or pet-friendly environments. These strategies ensure your property remains appealing and competitively priced, optimizing your rental income potential.

Refinancing to Pull Out EquityRefinancing is a critical step in the BRRRR strategy, allowing you to pull out equity and reinvest in new properties. Start by working with lenders who understand real estate investments and offer favorable terms. Understand the appraisal process, as this determines the property’s current value and the amount of equity you can access. Prepare your property for appraisal by ensuring it is well-maintained and any recent upgrades are highlighted.

The BRRRR strategy provides a structured approach to real estate investing, enabling you to build equity, generate passive income, and expand your portfolio. By mastering each step—from buying and rehabbing to renting, refinancing, and repeating—you can achieve financial success and grow your investments sustainably. Following these best practices will ensure you maximize your returns and build a robust real estate portfolio for the future.

If you’re interested in generating cash flow in retirement, visit The Old Dawg’s REI Network today!

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Achieving financial independence and building wealth are aspirations shared by many. While there are various paths to wealth accumulation, real estate investing stands out as one of the most effective strategies for the average person. Here’s why real estate investing can pave the way to financial success:

1. Accessible Entry PointReal estate investing offers a relatively low barrier to entry compared to other investment vehicles like stocks or businesses. Many people can start by purchasing a single property, leveraging financing options such as mortgages. This accessibility allows individuals with moderate savings to enter the market and begin building their investment portfolio.

2. Appreciation and Equity Build-UpOne of the primary advantages of real estate investing is property appreciation over time. Historically, real estate values tend to increase, providing investors with equity build-up as the property’s value appreciates. This appreciation can significantly contribute to wealth accumulation, especially when compounded over several years.

3. Leverage and Financing OpportunitiesReal estate allows for leveraging—using borrowed capital to increase the potential return on investment. With mortgage financing, investors can control a more valuable asset than their initial investment, magnifying potential returns. This ability to leverage allows individuals to accelerate wealth creation compared to solely relying on personal savings.

4. Multiple Income StreamsReal estate investing provides various avenues for generating income. Rental properties can generate monthly cash flow from tenants’ rent payments, which can cover mortgage payments and expenses while providing passive income. Additionally, investors can profit from property appreciation and tax benefits such as depreciation deductions.

5. Hedge Against InflationReal estate investments are often considered a hedge against inflation. As prices rise over time, real estate values and rental incomes tend to increase as well. Unlike some other investments that may be negatively impacted by inflation, real estate can maintain or even increase in value, thereby preserving and growing wealth.

6. Tax AdvantagesReal estate investors can benefit from various tax advantages that can enhance overall returns. Deductions such as mortgage interest, property taxes, depreciation, and expenses related to property management can reduce taxable income, thereby lowering the investor’s tax liability. These tax incentives can contribute significantly to the profitability of real estate investments.

7. Diversification of Investment PortfolioIncluding real estate in an investment portfolio provides diversification, spreading risk across different asset classes. Real estate values often move independently of stock market investments, offering a buffer against market volatility. Diversifying into real estate can stabilize overall portfolio performance and reduce overall investment risk.

8. Control and TangibilityUnlike investing in stocks or mutual funds, real estate investments offer tangible assets that investors can see and touch. This control over physical properties allows investors to make direct improvements, manage operations, and make strategic decisions that can directly impact property value and profitability.

9. Long-Term Wealth BuildingReal estate investing is well-suited for long-term wealth building due to its ability to generate consistent cash flow and appreciation over time. With proper management and strategic acquisitions, investors can build a portfolio of properties that steadily increase in value and provide ongoing income, ultimately leading to financial independence and wealth accumulation.

10. Legacy and Generational WealthReal estate investments can create a lasting legacy and generational wealth. Properties can be passed down to heirs or sold at a profit, providing financial security for future generations. This aspect of real estate investing allows individuals to create a lasting impact and secure their family’s financial future.

ConclusionReal estate investing offers unparalleled opportunities for the average person to achieve wealth and financial independence. Through accessible entry points, potential for appreciation, multiple income streams, tax advantages, and the ability to leverage, real estate allows individuals to build substantial wealth over time. By understanding the fundamentals, conducting thorough research, and leveraging professional guidance, aspiring investors can embark on a journey towards wealth through real estate investing. With patience, diligence, and strategic planning, real estate can indeed be the best pathway for an average person to achieve lasting financial success.

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Investing in real estate can be a lucrative venture, but getting started requires careful planning and consideration, especially when choosing your first investment property. Whether you aim to generate rental income or flip properties for profit, here’s a comprehensive guide to help you navigate the process of finding your first real estate investment property.

1. Set Clear Investment GoalsBefore you start searching for properties, define your investment objectives. Are you looking for rental income, long-term appreciation, or a quick flip? Understanding your goals will guide your property search and investment strategy.

2. Determine Your BudgetCalculate how much you can afford to invest in a property. Consider your savings, financing options (such as mortgages or loans), and potential for additional funding from investors or partners. Knowing your budget will narrow down your choices and prevent you from overextending financially.

3. Research Real Estate MarketsExplore different real estate markets to find one that aligns with your investment goals. Factors to consider include property prices, rental demand, economic growth, and local amenities. Look for emerging neighborhoods or areas with potential for growth to maximize your investment returns.

4. Identify Investment StrategiesDecide on the type of investment property that suits your strategy—whether it’s residential (single-family homes, condos, apartments) or commercial (office buildings, retail spaces). Each type has its own advantages and challenges, so choose based on your comfort level and market research.

5. Network and Seek AdviceBuild relationships with real estate agents, investors, and property managers who have experience in the local market. Their insights can provide valuable guidance and access to off-market properties that may not be publicly listed.

6. Evaluate PropertiesWhen evaluating potential properties, consider factors such as location, condition, potential for renovation, rental yield (if applicable), and future resale value. Conduct thorough inspections and due diligence to uncover any issues that could affect your investment.

7. Run Financial AnalysisCalculate the potential return on investment (ROI) for each property you’re considering. Factor in expenses such as property taxes, maintenance costs, insurance, and management fees. Use metrics like cap rate, cash-on-cash return, and net operating income to assess profitability.

8. Negotiate and PurchaseOnce you’ve found a promising property, negotiate the purchase price and terms with the seller. Consider hiring a real estate attorney to review contracts and ensure all legal aspects are handled correctly. Secure financing or funding as needed to finalize the purchase.

9. Manage Your InvestmentAfter acquiring the property, focus on effective management to maximize returns. If renting out, screen tenants carefully, maintain the property regularly, and respond promptly to tenant concerns. For flips, oversee renovations within budget and schedule to enhance property value.

10. Monitor Market TrendsStay informed about market trends and economic indicators that could impact your investment. Keep track of rental rates, property values, and regulatory changes that may affect your investment strategy over time.

11. Review and AdjustRegularly review your investment portfolio and property performance. Adjust your strategy as needed to optimize returns and mitigate risks. Consider reinvesting profits into additional properties or diversifying into different types of real estate investments.

ConclusionFinding your first real estate investment property requires careful planning, research, and strategic decision-making. By setting clear goals, conducting thorough market research, and leveraging professional advice, you can make informed choices that lay the foundation for a successful real estate investment journey. Remember, patience and diligence are key to finding the right property that aligns with your financial goals and risk tolerance.

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Determining which retail Real Estate Investment Trusts (REIT) have the longest growth potential involves analyzing several key factors, including market trends, portfolio diversity, geographic presence, financial health, and strategic initiatives. Some retail REITs are better positioned to capitalize on future growth opportunities due to their strong fundamentals and adaptability to market changes. Here are a few notable retail REITs with significant growth potential:

1. Simon Property Group (SPG) Portfolio: SPG owns high-quality malls, premium outlets, and international properties. * Growth Initiatives: SPG has been diversifying its portfolio and investing in mixed-use developments. They are also expanding their international footprint and digital strategy. * Financial Health*: Strong balance sheet and access to capital for growth initiatives.

2. Regency Centers (REG) Portfolio: Specializes in grocery-anchored shopping centers, which have shown resilience. * Growth Initiatives: Focus on redevelopment and expansion of existing properties, as well as strategic acquisitions. * Financial Health*: Conservative balance sheet management and consistent dividend growth.

3. Federal Realty Investment Trust (FRT) Portfolio: High-quality shopping centers and mixed-use properties in affluent areas. * Growth Initiatives: Emphasis on mixed-use development projects and strategic reinvestment in properties. * Financial Health*: Strong operating performance and a history of dividend growth.

4. Realty Income Corporation (O) Portfolio: Diversified portfolio of retail properties with long-term net leases. * Growth Initiatives: Expansion into international markets and increasing presence in non-retail sectors. * Financial Health*: Consistent track record of dividend increases and conservative leverage.

5. Kimco Realty Corporation (KIM) Portfolio: Focus on open-air, grocery-anchored shopping centers. * Growth Initiatives: Redevelopment projects, including mixed-use developments and residential components. * Financial Health*: Strong balance sheet and consistent dividend payouts.

Factors Influencing Growth Runway Market Trends: E-commerce growth, consumer behavior shifts, and the economic environment. * Portfolio Quality: Location, tenant mix, and property type diversification. * Redevelopment and Expansion: Ability to capitalize on redevelopment opportunities and strategic acquisitions. * Financial Stability*: Strong balance sheet, access to capital, and prudent financial management.

Among these, Simon Property Group (SPG) and Federal Realty Investment Trust (FRT) stand out due to their strategic initiatives and strong financial health. SPG’s extensive portfolio and focus on mixed-use developments, combined with its international presence, provide a solid foundation for long-term growth. FRT’s focus on affluent markets and mixed-use properties also positions it well for future growth.

Ultimately, the REIT with the longest growth runway will depend on its ability to adapt to market trends, execute strategic initiatives effectively, and maintain strong financial health.

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In today’s dynamic economic landscape, choosing the right type of real estate investment requires careful consideration of market trends, economic indicators, and future growth potential. The real estate market is influenced by a multitude of factors, including interest rates, inflation, technological advancements, and changing consumer behaviors. As we navigate through 2024, here are some of the most promising types of real estate investments for the current economy.

1. Industrial Real EstateWhy It’s Attractive: The rise of e-commerce and the demand for efficient supply chain logistics have significantly boosted the industrial real estate sector. Warehouses, distribution centers, and fulfillment centers are in high demand as companies strive to meet consumer expectations for rapid delivery.

Key Drivers:

• E-commerce Growth: Online shopping continues to expand, necessitating more warehouse space.
• Supply Chain Optimization: Companies are investing in logistics facilities to streamline operations and reduce delivery times.
• Resilience: Industrial properties have shown resilience during economic downturns due to stable demand.

2. Multifamily Residential PropertiesWhy It’s Attractive: Multifamily residential properties, including apartment buildings, remain a solid investment due to the growing demand for rental housing. Factors such as high home prices, urbanization, and changing lifestyle preferences contribute to this trend.

Key Drivers:

• Affordability: High home prices make renting an attractive option for many people, especially younger demographics.
• Urbanization: Cities continue to attract people for job opportunities and amenities, sustaining demand for rental properties.
• Steady Income: Multifamily properties provide a steady income stream through rental payments.

3. Mixed-Use DevelopmentsWhy It’s Attractive: Mixed-use developments, which combine residential, commercial, and retail spaces, offer diversified income streams and create vibrant communities. These developments cater to the growing preference for live-work-play environments.

Key Drivers:

• Convenience: Consumers prefer the convenience of having amenities and services within walking distance.
• Community Appeal: Mixed-use projects often create attractive, sustainable communities that can command higher rents and property values.
• Diversification: Investors benefit from multiple income streams, reducing risk.

4. Healthcare Real EstateWhy It’s Attractive: The healthcare sector’s stability and growth prospects make healthcare real estate a compelling investment. Properties such as medical office buildings, senior living facilities, and hospitals are essential and less affected by economic cycles.

Key Drivers:

• Aging Population: An aging population increases demand for healthcare services and senior living facilities.
• Stability: Healthcare facilities typically have long-term leases and stable occupancy rates.
• Essential Services: Healthcare properties provide essential services, ensuring steady demand.

5. Data CentersWhy It’s Attractive: The increasing reliance on digital infrastructure makes data centers a highly lucrative investment. These facilities are critical for storing, processing, and managing data for businesses and consumers alike.

Key Drivers:

• Digital Transformation: The growth of cloud computing, big data, and artificial intelligence drives demand for data centers.
• High Demand: As more industries adopt digital solutions, the need for data storage and processing continues to rise.
• Resilience: Data centers are essential for modern economies, providing stable and growing returns.

6. Retail Real Estate (Selective)Why It’s Attractive: While traditional brick-and-mortar retail faces challenges, certain segments of retail real estate remain promising. Grocery-anchored shopping centers and experiential retail spaces, such as entertainment and dining venues, are attracting consumers.

Key Drivers:

• Experiential Retail: Consumers seek experiences that online shopping cannot provide, supporting demand for entertainment and dining venues.
• Necessity-Based Retail: Grocery stores and essential service providers continue to thrive, even in economic downturns.
• Adaptation: Retail spaces are adapting by incorporating more mixed-use and community-focused elements.

ConclusionIn today’s economy, the best real estate investments are those that align with prevailing market trends and demonstrate resilience and growth potential. Industrial real estate, multifamily residential properties, mixed-use developments, healthcare real estate, data centers, and selective retail real estate offer compelling opportunities. Investors should carefully evaluate their risk tolerance, investment horizon, and market dynamics to make informed decisions and capitalize on the most promising sectors of the real estate market.

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The landscape of global real estate investment is continually evolving, shaped by economic conditions, technological advancements, and shifting demographic trends. The world’s largest real estate investors, including institutional investors, sovereign wealth funds, and real estate investment trusts (REITs), are adapting their strategies to capitalize on emerging opportunities and mitigate risks. Here’s how these major players are investing today.

1. Logistics and Industrial Real EstateInvestment Rationale: The rise of e-commerce has significantly increased the demand for logistics and industrial properties. Investors are targeting warehouses, distribution centers, and fulfillment centers to capitalize on the growth in online retail.

Key Trends:

• E-commerce Growth: Giants like Amazon and Alibaba are driving the need for extensive logistics networks.
• Urban Warehousing: Proximity to urban centers is crucial for rapid delivery services, prompting investments in urban warehouses.
• Supply Chain Resilience: The COVID-19 pandemic highlighted the importance of robust supply chains, further boosting the appeal of industrial real estate.

Notable Investors:

• Blackstone: One of the largest real estate investors globally, Blackstone has heavily invested in logistics properties, particularly through its subsidiary, Logicor.
• Prologis: A REIT specializing in logistics real estate, Prologis continues to expand its portfolio with strategic acquisitions and developments.

2. Data CentersInvestment Rationale: The digital economy’s expansion is fueling the demand for data centers, which are essential for data storage, processing, and management. The world’s biggest investors are pouring capital into these high-tech facilities.

Key Trends:

• Cloud Computing: The shift towards cloud services by businesses is driving demand for data centers.
• Big Data and AI: The need to process and store vast amounts of data is accelerating investments in data centers.
• Cybersecurity: Increasing concerns about data security are prompting investments in secure and resilient data infrastructure.

Notable Investors:

• Equinix: As one of the leading data center REITs, Equinix continues to expand globally, driven by increasing digital demand.
• Digital Realty: Another major player in the data center space, Digital Realty is investing heavily in new facilities and technology upgrades.

3. Multifamily and Affordable HousingInvestment Rationale: With urbanization and high housing costs, there is a growing need for multifamily and affordable housing. Investors are focusing on these segments to ensure steady rental income and social impact.

Key Trends:

• Urban Living: Millennials and Gen Z favor urban living, sustaining demand for rental apartments.
• Affordable Housing: Addressing the affordability crisis, investors are targeting developments that provide cost-effective housing solutions.
• Government Incentives: Policies promoting affordable housing developments are attracting investment.

Notable Investors:

• Brookfield Asset Management: Known for its diversified portfolio, Brookfield is actively investing in multifamily housing projects globally.
• BlackRock: The world’s largest asset manager is increasing its exposure to multifamily housing through various funds and partnerships.

4. Sustainable and Green BuildingsInvestment Rationale: Sustainability is becoming a critical consideration in real estate investment. Green buildings not only reduce environmental impact but also attract higher rents and valuation premiums.

Key Trends:

• Environmental Regulations: Stricter environmental laws are pushing investors towards sustainable buildings.
• Tenant Demand: Corporations and tenants are increasingly seeking eco-friendly spaces.
• Long-term Value: Sustainable buildings tend to have lower operating costs and higher long-term value.

Notable Investors:

• Hines: A global real estate firm, Hines is at the forefront of sustainable development, focusing on LEED-certified buildings.
• PGIM Real Estate: As part of its ESG strategy, PGIM Real Estate is investing in green buildings and retrofitting existing properties to improve energy efficiency.

5. Mixed-Use DevelopmentsInvestment Rationale: Mixed-use developments, which combine residential, commercial, and retail spaces, are attracting significant investment. These projects cater to the growing preference for live-work-play environments.

Key Trends:

• Urbanization: Increasing urban populations are driving demand for integrated living spaces.
• Community Building: Mixed-use developments create vibrant communities, enhancing property values.
• Diversified Income Streams: Investors benefit from multiple revenue sources, reducing risk.

Notable Investors:

• Allianz Real Estate: Known for its strategic investments, Allianz is focusing on large-scale mixed-use developments in major cities.
• Qatar Investment Authority: Through partnerships and direct investments, QIA is heavily involved in mixed-use projects, particularly in key global markets.

ConclusionThe world’s biggest real estate investors are strategically adapting to current market conditions by focusing on sectors with strong growth potential and resilience. Logistics and industrial properties, data centers, multifamily and affordable housing, sustainable buildings, and mixed-use developments are at the forefront of their investment strategies. By aligning their portfolios with these trends, they are positioning themselves for sustained growth and profitability in a rapidly evolving real estate landscape.

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Real estate investing has long been a popular avenue for building wealth and achieving financial independence. However, not everyone who ventures into this field finds success. What sets successful real estate investors apart from the rest? Here are the top traits that distinguish the most accomplished in this industry:

1. Knowledge and EducationSuccessful real estate investors prioritize education. They understand that the market is constantly evolving and that staying informed is crucial. They dedicate time to learning about market trends, property laws, financing options, and investment strategies. Continuous education through books, seminars, courses, and networking with other professionals keeps them ahead of the curve.

2. Analytical SkillsReal estate investment involves significant financial commitment, and successful investors excel in analyzing potential deals. They can evaluate properties and markets meticulously, considering factors such as location, market conditions, property conditions, and potential for appreciation or rental income. They rely on data and metrics to make informed decisions rather than relying on gut feelings.

3. Financial AcumenA solid understanding of finances is essential. Successful investors are skilled at managing budgets, understanding cash flow, calculating return on investment (ROI), and navigating financing options. They have a keen sense of how to leverage debt wisely and can effectively manage their financial resources to maximize returns.

4. Risk ManagementInvesting in real estate involves risks, and successful investors are adept at managing them. They conduct thorough due diligence, employ contingency plans, and diversify their portfolios to mitigate potential losses. They understand that risk is inherent in any investment and are prepared to handle setbacks without becoming discouraged.

5. Persistence and PatienceReal estate investment is not a get-rich-quick scheme. It requires persistence and patience. Successful investors understand that building a profitable portfolio takes time and are willing to wait for the right opportunities. They stay focused on their long-term goals, even when faced with challenges or market fluctuations.

6. Networking and Relationship BuildingBuilding a network of contacts is invaluable in real estate. Successful investors cultivate relationships with real estate agents, contractors, attorneys, accountants, and other investors. These connections can provide access to off-market deals, valuable advice, and collaborative opportunities. Strong relationships also facilitate smoother transactions and better negotiation outcomes.

7. Adaptability and FlexibilityThe real estate market can be unpredictable. Successful investors are adaptable and open to changing their strategies in response to market conditions. They are not afraid to pivot their approach, whether it involves shifting their focus to different property types, markets, or investment strategies. Flexibility allows them to seize new opportunities and navigate downturns effectively.

8. Attention to DetailDetails matter in real estate investment. Successful investors pay close attention to every aspect of their deals, from contract terms to property inspections. They meticulously review all documentation, ensuring that no detail is overlooked. This thoroughness helps prevent costly mistakes and ensures smooth transactions.

9. Ethical PracticesIntegrity and ethical behavior are fundamental traits of successful investors. They conduct their business transparently and honestly, building trust with clients, partners, and tenants. Ethical practices lead to long-term success by fostering positive reputations and sustainable business relationships.

10. Vision and PlanningSuccessful investors have a clear vision for their investment goals and create detailed plans to achieve them. They set realistic, measurable objectives and develop strategies to reach those milestones. A well-defined plan keeps them focused and organized, enabling them to track their progress and make necessary adjustments along the way.

ConclusionThe journey to becoming a successful real estate investor is paved with continuous learning, strategic planning, and a commitment to ethical practices. By cultivating these top traits—knowledge, analytical skills, financial acumen, risk management, persistence, networking, adaptability, attention to detail, ethics, and vision—investors can position themselves to navigate the complexities of the real estate market and achieve lasting success.

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By Mary Aspen Richardson

Investing in real estate can be incredibly rewarding for retirees or people approaching retirement, but sticking to one market limits your potential. Expanding your real estate investment horizons opens doors to fresh opportunities and generates increased cash flow during retirement. This strategy involves looking beyond your local market to find properties that offer better returns and growth prospects.

Relocation in Real Estate InvestmentRelocating for real estate investment means considering markets outside your current location. It’s not just about moving to a new city or state; it’s about finding places where your investment can grow. This approach helps you tap into markets with high demand, lower prices, and promising future growth. For instance, while some cities have skyrocketing property prices, others offer affordable options with high rental yields.

By doing this, you will access properties outside of your current market

Advantages of Relocating for Real Estate Investment Access to Emerging Markets: One of the main benefits of relocation is gaining access to emerging markets. These areas often have lower property prices and higher potential for appreciation. For example, investing in a growing city like Austin, Texas, which has seen a population increase of over 20% in the last decade, can lead to substantial returns. * Diversification of Portfolio: By relocating, you can diversify your investment portfolio. That means spreading your investments across different regions and reducing risk. If one market faces a downturn, your investments in other areas can balance it out. Think of it like not putting all your eggs in one basket. * Cost Efficiency*: Relocating to less saturated markets can be cost-effective. In many cases, property prices in these areas are significantly lower than in major metropolitan cities. Thus, you can buy more or larger properties for the same amount. For example, properties in suburban areas can offer better value for money than city centers.

Key Considerations Before RelocatingRelocating for real estate investment is a significant decision. It requires thorough market research, financial planning, and personal considerations. It takes time to research, so this is one of the reasons why people over 50 excel in real estate investing.

Start by understanding the local market trends. Check population growth, job market stability, and future economic prospects. For instance, cities with growing industries often see a rise in housing demand, which can be a great opportunity for investors.

Financial planning is essential. Budget for all expenses related to relocation, including travel, legal fees, and property management. Explore different financing options available in the new market. Some states offer attractive loan programs and incentives for investors. Make sure you are fully aware of all costs to avoid surprises later.

Lifestyle and personal factors also matter. Moving impacts your personal life, so consider how it will affect your daily routine and retirement plans. Ensure that the new location fits your long-term goals and lifestyle preferences.

Steps to Take When Relocating for Real Estate InvestmentCreating a relocation plan is the first step. Set clear investment goals and identify target markets. A well-defined plan helps you stay focused and organized throughout the process.

Next, conduct thorough due diligence. That involves legal and financial checks to ensure that your investment is sound. Partnering with local experts can provide valuable insights and help you navigate the new market.

Executing the relocation involves handling the logistics of moving and setting up your initial investments. Having a clear timeline and checklist is important to ensure everything goes smoothly.

Every step needs to be taken with caution.

Overcoming Challenges in RelocationRelocating to a new market comes with its challenges. Dealing with unfamiliar markets can be daunting. However, partnering with local experts can help you navigate these challenges. They can provide insights into market conditions and help you avoid common mistakes.

Mitigating risks and uncertainties is crucial. Diversifying your portfolio across different markets can reduce risks. For instance, if one market faces a downturn, your investments in other areas can offset the impact.

Adapting to cultural and regulatory differences is also important. Different regions have different regulations and cultural practices. Understanding these differences can help you make better investment decisions.

Handling complex relocation logistics can be tough, so choosing the right moving company is crucial. If you’re considering moving within or to Canada to invest in its urban condos or rural properties, Centennial Moving Canada is a great option. This moving company excels at long-distance and cross-border moving, making your relocation smooth and stress-free. Their experience and expertise ensure your belongings are handled carefully, allowing you to seamlessly start your new investment journey.

Future Trends in Real Estate Investment and RelocationSeveral trends can impact real estate investment and relocation. Predicting market movements can help you stay ahead of the curve. For example, urbanization and technological advancements are shaping the future of real estate.

The role of technology is becoming increasingly important. Tools like virtual tours and online property management platforms make relocation easier. They allow you to manage properties remotely and stay connected with the market. They can even get you started with real estate investing with no money.

Sustainable and smart investment practices are also gaining traction. Investors are increasingly looking for properties that are energy-efficient and environmentally friendly. These trends can offer new opportunities for expanding your real estate investment horizons.

Even expanding your real estate investment horizons can be made easier with technology

Final Thoughts on Expanding Your Real Estate Investment HorizonsRelocating for real estate investment can open up new opportunities and help you diversify your portfolio. By understanding local market trends, planning your finances, and considering personal factors, you can succeed in expanding your real estate investment horizons. Whether you are a seasoned investor or just starting, considering markets beyond your local area can be a game-changer. Explore new opportunities and take your real estate investing to the next level.

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In the competitive world of real estate, off-market properties represent hidden opportunities for buyers and investors alike. These properties, often not listed on the Multiple Listing Service (MLS) or traditional channels, can offer unique advantages such as reduced competition, potential for better deals, and exclusive access to coveted locations. Here’s a comprehensive guide on how to uncover and capitalize on off-market real estate properties.

1. Network with Real Estate ProfessionalsForge relationships with real estate agents, brokers, and other industry professionals who have access to off-market properties. Attend networking events, join local real estate associations, and engage with professionals through social media platforms like LinkedIn. Establishing a strong network can provide insider access to off-market listings before they hit the market.

2. Tap into Your Sphere of InfluenceLeverage your personal and professional connections to uncover off-market opportunities. Let friends, family, colleagues, and acquaintances know that you’re in the market for real estate investments. Often, sellers prefer to transact off-market through trusted referrals, making your network a valuable source of leads.

3. Direct Mail CampaignsImplement targeted direct mail campaigns to reach property owners in your desired area. Craft personalized letters or postcards expressing your interest in purchasing off-market properties and highlight the benefits of a discreet sale. Include your contact information and encourage recipients to reach out if they’re considering selling.

4. Explore Distressed PropertiesDistressed properties, such as foreclosures, short sales, and probate properties, often present off-market opportunities. Monitor public records, foreclosure listings, and probate court filings to identify distressed properties in need of a quick sale. Approach distressed property owners with offers tailored to their unique circumstances.

5. Utilize Online Platforms and DatabasesExplore online platforms and databases specializing in off-market real estate listings. Websites like Real Estate Investor Leads, DealMachine, and Reonomy offer access to off-market leads, distressed properties, and property owner information. Leverage these tools to uncover hidden gems in your target market.

6. Attend Real Estate AuctionsParticipate in real estate auctions, both online and offline, to discover off-market properties available for sale. Auctions often feature distressed properties, bank-owned assets, and motivated sellers looking for a quick transaction. Conduct thorough due diligence beforehand and be prepared to act swiftly if a promising opportunity arises.

7. Hire a Real Estate WholesalerEngage with real estate wholesalers who specialize in sourcing off-market properties and connecting buyers with motivated sellers. Wholesalers often have access to a network of distressed property owners and can negotiate favorable deals on your behalf. Collaborating with a reputable wholesaler can streamline the off-market property acquisition process.

8. Drive for DollarsTake to the streets and drive through neighborhoods in your target market to identify potential off-market properties. Look for signs of distress such as overgrown lawns, boarded-up windows, or vacant properties. Make note of these properties and reach out to owners directly to express your interest in purchasing.

9. Build Relationships with Property OwnersProactively reach out to property owners in your desired area and express your interest in purchasing their property off-market. Offer flexible terms, such as a quick closing or all-cash offer, to entice sellers to consider a discreet sale. Building rapport and demonstrating your sincerity can increase your chances of securing off-market deals.

10. Engage in Creative Marketing StrategiesThink outside the box and implement creative marketing strategies to attract off-market property leads. Consider hosting neighborhood events, distributing flyers, or placing targeted advertisements in local publications. Position yourself as a trusted and knowledgeable real estate professional who can provide solutions to property owners looking to sell discreetly.

ConclusionIn conclusion, uncovering off-market real estate properties requires persistence, creativity, and a proactive approach. By leveraging your network, exploring alternative channels, and engaging in targeted marketing efforts, you can unlock hidden opportunities and secure lucrative off-market deals in today’s competitive real estate market.

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Embarking on a real estate investing journey without any initial capital may seem like an insurmountable challenge. However, with creativity, resourcefulness, and strategic planning, it’s entirely possible to kickstart your investment career even if you’re starting from scratch. Here’s a comprehensive guide on how to get started in real estate investing with absolutely no money:

1. Educate Yourself: Before diving into the world of real estate investing, arm yourself with knowledge. Take advantage of the plethora of free resources available online, including blogs, podcasts, and forums dedicated to real estate investing. Additionally, consider investing in books or courses authored by experienced investors to gain valuable insights and expertise.
2. Leverage Your Skills and Resources: While you may not have financial capital, you likely possess other valuable resources, such as time, skills, and connections. Assess your strengths and determine how you can leverage them to your advantage in the real estate market. Whether it’s your expertise in property management, marketing skills, or network of contacts, find ways to utilize your assets to progress your investment goals.
3. Start Small with Wholesaling: Wholesaling is a low-risk strategy that allows you to earn income in real estate without using your own money. In essence, you act as a middleman, finding discounted properties and selling the contracts to other investors for a profit. To get started, focus on building relationships with motivated sellers, learning how to identify undervalued properties, and honing your negotiation skills.
4. Utilize Seller Financing and Lease Options: In transactions where traditional financing is not an option, explore alternative financing methods such as seller financing and lease options. Seller financing involves the seller acting as the lender, allowing you to purchase the property with little to no money down and pay the seller over time. Lease options enable you to control a property by leasing it with the option to purchase it at a predetermined price in the future.
5. Form Partnerships: Partnering with individuals who have capital but lack the time or expertise to invest in real estate can be mutually beneficial. Consider forming joint ventures or partnerships where you contribute your skills and sweat equity while your partner provides the financial resources needed to fund the investment. Be transparent and communicate clearly to establish trust and align expectations.
6. Utilize Hard Money Lenders: Hard money lenders are private individuals or companies that offer short-term loans secured by real estate. While hard money loans typically come with higher interest rates and fees, they can provide quick access to funding without the stringent requirements of traditional lenders. Use hard money loans strategically for fix-and-flip projects or to acquire distressed properties that can be renovated and sold for a profit.
7. Sweat Equity and DIY Renovations: If you have construction or renovation skills, consider leveraging them to add value to properties. By investing your time and labor into property improvements, you can increase the property’s market value without relying solely on financial capital. From minor repairs to major renovations, DIY projects can significantly impact the profitability of your real estate investments.
8. Network and Build Relationships: Networking is invaluable in the real estate industry, particularly when you’re starting with limited funds. Attend local real estate meetups, join online forums, and connect with seasoned investors, real estate agents, and other industry professionals. Building relationships with individuals who can provide mentorship, guidance, and potential investment opportunities can open doors and propel your investing career forward.
9. Be Creative and Persistent: Real estate investing requires creativity, persistence, and a willingness to think outside the box. Don’t be discouraged by setbacks or obstacles along the way. Instead, view challenges as opportunities to innovate and refine your approach. Stay adaptable, continuously educate yourself, and remain persistent in pursuing your investment goals.
10. Scale Up Gradually: As you gain experience and build your investment portfolio, gradually scale up your activities and diversify your real estate holdings. Reinvest profits into acquiring additional properties, expanding your network, and refining your investment strategies. Stay disciplined and focused on long-term growth, and celebrate your achievements along the way.

In conclusion, getting started in real estate investing with no money requires resourcefulness, determination, and a willingness to learn. By leveraging your skills, forming strategic partnerships, exploring alternative financing options, and thinking creatively, you can overcome financial barriers and embark on a successful investment journey. Remember, the key is to take action, stay persistent, and continuously adapt to the ever-evolving landscape of real estate investing. With dedication and perseverance, your journey from zero to real estate investor can become a reality.

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Real estate investing can be an enticing venture, promising lucrative returns and long-term financial stability. However, it’s not without its pitfalls. Many investors dive into the market without proper knowledge or preparation, leading to costly mistakes that can derail their success. Whether you’re a seasoned investor or just starting out, understanding and avoiding these top five mistakes can save you time, money, and headaches in your real estate journey.

1. Lack of Research and Due DiligenceOne of the most common mistakes investors make is failing to conduct thorough research and due diligence before making a purchase. This can involve neglecting to thoroughly assess the property’s location, market trends, potential risks, and the financial viability of the investment. Without proper research, investors may underestimate renovation costs, overestimate rental income, or overlook crucial factors that could impact the property’s value. To avoid this mistake, take the time to thoroughly analyze each potential investment opportunity, consult with real estate professionals, and gather as much information as possible before making a decision.

2. OverleveragingAnother critical mistake that many real estate investors make is overleveraging their investments. While using leverage can amplify returns, it also increases risk, especially if market conditions change or rental income decreases. Overleveraging can leave investors vulnerable to financial hardship, particularly if they are unable to cover mortgage payments or unexpected expenses. To mitigate this risk, it’s essential to maintain a conservative approach to financing, avoid taking on excessive debt, and have sufficient reserves to weather potential downturns in the market.

3. Ignoring Cash FlowCash flow is the lifeblood of any real estate investment, yet many investors overlook its importance, particularly when focusing on long-term appreciation. While property values may appreciate over time, cash flow provides ongoing income and ensures the sustainability of the investment. Ignoring cash flow can lead to financial strain, especially if rental income fails to cover expenses or unexpected vacancies occur. To maximize cash flow, investors should carefully analyze rental markets, set appropriate rent prices, and budget for ongoing expenses such as maintenance, property management, and taxes.

4. Neglecting Property ManagementEffective property management is crucial to the success of any real estate investment, yet it’s a mistake that many investors overlook. Poor management can lead to tenant issues, maintenance problems, and decreased property value, ultimately undermining the investment’s potential returns. Whether managing properties themselves or hiring a professional management company, investors must prioritize effective property management to ensure tenant satisfaction, minimize vacancies, and preserve the property’s value over time.

5. Failing to Plan for the UnexpectedReal estate investing comes with inherent risks and uncertainties, from market fluctuations to unforeseen expenses. Failing to plan for the unexpected can leave investors vulnerable to financial setbacks and derail their investment goals. To mitigate this risk, investors should create contingency plans, maintain adequate reserves for emergencies, and stay informed about market trends and regulatory changes that could impact their investments. By anticipating and preparing for potential challenges, investors can better navigate the ups and downs of the real estate market and protect their investment portfolio.

In ConclusionReal estate investing offers tremendous opportunities for wealth creation, but it’s essential to approach it with caution and foresight. By avoiding these top five mistakes and adopting a disciplined approach to investing, investors can increase their chances of success and achieve their financial goals in the dynamic world of real estate. Remember, diligence, patience, and a thorough understanding of the market are key to building a successful real estate portfolio.

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By Pauline Cruz

As one of the largest sectors in the global economy, commercial real estate plays a crucial role in shaping environmental and social outcomes. With an increasing recognition of environmental challenges and changing consumer expectations, real estate companies are reassessing their operations to adhere to sustainable standards.

In this article, we’ll explore the revolution of sustainable practices in commercial real estate and how it impacts you as a stakeholder in this evolving market.

Shifting Perspectives on SustainabilitySustainability is no longer viewed as a mere trend or a secondary concern. Today, it’s a fundamental aspect of corporate social responsibility (CSR) practices. As a conscious consumer and investor, you’re aware of the importance of supporting businesses that prioritize corporate social responsibility. This shift in perspective has extended throughout the commercial real estate sector, prompting developers, investors, and tenants alike to rethink their approach to building design, operation, and management.

Here are some statistics related to commercial real estate sustainability:

• The real estate sector accounts for nearly 40% of global carbon dioxide emissions.
• Currently, 40-48% of new commercial buildings are “green”, compared to only 2% in 2005.
• The World Green Building Council has found that green-certified buildings can command a rental premium of up to 30%.
• The market size of the global green building materials market is expected to reach $234.47 billion by 2027.

Sustainable Practices in Commercial Real EstateCommercial real estate companies have embraced a range of sustainable practices to reduce their ecological footprint and promote corporate social responsibility. Here are seven examples of how these companies are integrating sustainability into their operations:

Energy-Efficient Building DesignReal estate companies are increasingly prioritizing energy-efficient building design to reduce their carbon footprint and operational costs. This involves incorporating features such as LED lighting, high-efficiency HVAC systems, and smart building automation technology. For instance, integrating natural ventilation systems and rooftop solar panels significantly reduces environmental impact.

Green Roof InstallationGreen roof installation is a significant aspect of sustainable practices in commercial real estate. These roofs, covered with vegetation, offer numerous benefits beyond traditional roofing systems. They provide natural insulation, reducing energy consumption for heating and cooling. Additionally, they help mitigate stormwater runoff by absorbing rainwater, which improves overall water management on the property. Green roofs also contribute to improved air quality by absorbing pollutants and releasing oxygen.

Waste Management and Recycling ProgramsReal estate companies prioritize waste management and recycling to minimize landfill waste and conserve resources. This includes establishing recycling stations, implementing composting initiatives, and collaborating with waste management firms for proper material disposal. Achieving high diversion rates through these programs significantly reduces waste sent to landfills, demonstrating a commitment to environmental responsibility.

Promotion of Sustainable TransportationEncouraging sustainable transportation is a core initiative for real estate companies. Providing amenities such as bike racks, electric vehicle charging stations, and access to public transportation encourages eco-friendly commuting. By offering transportation benefits like discounted transit passes, companies reduce car dependency and foster sustainable commuting practices among employees and tenants.

Sustainable Shipping PracticesReal estate companies prioritize sustainable shipping practices beyond on-site measures. Partnering with logistics firms prioritizing eco-friendly packaging materials and transportation methods is crucial. Implementing electric vehicles for last-mile delivery and adopting reusable packaging solutions reduces waste in logistics operations, contributing to a greener supply chain and environmental sustainability.

LEED CertificationLeadership in Energy and Environmental Design (LEED) certification is a globally recognized symbol of sustainability achievement in the commercial real estate industry. Companies pursue LEED certification for both new construction and existing buildings to demonstrate their commitment to environmental stewardship and sustainable building practices. To get LEED certification, buildings must meet stringent criteria across various categories, including energy efficiency, water conservation, indoor environmental quality, and materials selection.

Water Conservation MeasuresCommercial real estate companies are also increasingly implementing water conservation measures to reduce their water usage and promote sustainable water management practices. This involves the adoption of water-saving technologies and strategies both inside and outside buildings. For instance, low-flow plumbing fixtures, such as faucets, toilets, and showerheads, are installed to minimize water wastage without compromising functionality. Additionally, rainwater harvesting systems are integrated into building designs to capture and store rainwater for non-potable uses like irrigation and flushing toilets.

A Look Into The FutureIn the coming years, sustainability will drive the evolution of commercial real estate. Expect innovations like net-zero energy buildings, circular economy strategies, and advanced green technologies to reshape the industry. Amidst climate change concerns, resilience and adaptability will become paramount. With a steadfast dedication to environmental and corporate responsibility, the future of commercial real estate promises a more sustainable, resilient, and socially aware built environment.

Final ThoughtsEmbracing sustainability is about meeting regulations and, at the same time, securing long-term value. By integrating eco-conscious practices into your investment strategy, you not only contribute to a healthier planet but also position yourself for success in an increasingly sustainable market.

If you’re eyeing real estate investing as a means to fund your retirement years, visit the Old Dawg’s REI Network blog for valuable information and resources.

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In the realm of real estate investing, success often comes with experience, wisdom, and a strategic approach. While investors of all ages can thrive in this dynamic field, there’s a compelling case to be made for why individuals over the age of 50 are particularly well-suited to excel in real estate investing. Here’s why:

Financial Stability and SecurityIndividuals over 50 typically have had more time to establish financial stability and security. They may have paid off mortgages, accumulated savings, and built retirement accounts, providing them with a solid financial foundation to invest in real estate. With fewer financial obligations and greater liquidity, older investors can take advantage of investment opportunities and weather market fluctuations more effectively.

Accumulated Life ExperienceLife experience is a valuable asset in real estate investing. Individuals over 50 have likely experienced various ups and downs in their personal and professional lives, developing resilience, problem-solving skills, and emotional intelligence along the way. They bring a wealth of wisdom, perspective, and intuition to their investment decisions, enabling them to navigate complex transactions, negotiate effectively, and mitigate risks with confidence.

Established Networks and RelationshipsOver the years, individuals over 50 have had the opportunity to build extensive networks and relationships within their communities and industries. These connections can be invaluable in real estate investing, providing access to off-market deals, financing options, professional services, and investment partners. Seasoned investors can leverage their networks to source opportunities, gain insights, and collaborate with trusted advisors and peers.

Long-Term Vision and PatienceReal estate investing is often a long-term endeavor that requires patience, perseverance, and a strategic mindset. Individuals over 50 tend to have a longer time horizon and a more patient approach to investing, allowing them to ride out market cycles and capitalize on appreciation over time. They understand the importance of long-term wealth accumulation and are willing to make strategic investments that may yield returns over the years rather than seeking quick profits.

Lifestyle Flexibility and FreedomAs individuals approach retirement age, they may have greater flexibility and freedom to pursue their passions and interests outside of traditional employment. Real estate investing offers the opportunity to generate passive income, build wealth, and enjoy a flexible lifestyle. Older investors can tailor their investment strategies to align with their lifestyle goals, whether it’s traveling, spending time with family, or pursuing hobbies, while still earning income from their real estate portfolio.

Desire for Legacy BuildingMany individuals over 50 are motivated by a desire to leave a lasting legacy for future generations. Real estate investing provides a tangible means to build wealth and create a legacy that can be passed down to heirs. Whether it’s through acquiring rental properties, developing commercial projects, or participating in real estate syndications, older investors can contribute to the growth and prosperity of their families and communities for years to come.

ConclusionIn conclusion, individuals over 50 possess a unique combination of financial stability, life experience, established networks, long-term vision, lifestyle flexibility, and a desire for legacy building that positions them for success in real estate investing. By leveraging their strengths and harnessing their wisdom, older investors can navigate the complexities of the real estate market with confidence and achieve their investment goals.

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Real estate investing can be an excellent way to build wealth and secure your financial future. However, it’s not without its challenges. To navigate the complex world of real estate and emerge successful, investors need a solid strategy and the right knowledge. Whether you’re a seasoned investor or just starting out, here are some top tips to help you achieve success in the world of real estate investing.

1. Educate Yourself: Before diving into real estate investing, take the time to educate yourself about the market, investment strategies, and local regulations. Attend seminars, read books, listen to podcasts, and seek advice from experienced investors. Understanding the fundamentals of real estate will help you make informed decisions and avoid costly mistakes.
2. Set Clear Goals: Define your investment objectives and set clear, achievable goals. Are you looking to generate passive income through rental properties, or do you aim to flip houses for a quick profit? Understanding your goals will guide your investment strategy and help you stay focused on what matters most to you.
3. Conduct Thorough Market Research: Success in real estate investing often depends on timing and location. Conduct thorough market research to identify emerging trends, growth areas, and neighborhoods with high potential for appreciation. Analyze market data, vacancy rates, rental yields, and economic indicators to make informed investment decisions.
4. Build a Reliable Network: Networking is key in the world of real estate investing. Surround yourself with a team of professionals, including real estate agents, contractors, attorneys, and property managers. A reliable network can provide valuable insights, resources, and support to help you succeed in your investments.
5. Crunch the Numbers: Before making any investment, conduct a comprehensive financial analysis to ensure it aligns with your goals and expectations. Calculate potential returns, including rental income, expenses, taxes, and financing costs. Factor in unexpected expenses and vacancies to assess the true profitability of the investment.
6. Diversify Your Portfolio: Diversification is essential for mitigating risk and maximizing returns in real estate investing. Consider diversifying your portfolio across different property types, locations, and investment strategies. This can help you weather market fluctuations and minimize the impact of any single investment performing poorly.
7. Practice Due Diligence: Never skip due diligence when evaluating potential investment opportunities. Thoroughly inspect properties, review financial documents, and verify the accuracy of seller-provided information. Pay attention to factors such as property condition, title issues, zoning regulations, and potential liens.
8. Stay Flexible and Adaptive: The real estate market is dynamic and subject to change. Stay flexible and adaptive in your investment approach, and be prepared to adjust your strategies as market conditions evolve. Remain open to new opportunities and be willing to pivot when necessary to optimize your investment portfolio.
9. Manage Risk Effectively: Real estate investing inherently involves risk, but there are ways to manage and mitigate it. Maintain adequate insurance coverage, establish emergency funds for unexpected expenses, and consider incorporating risk management techniques such as asset allocation and leverage control into your investment strategy.
10. Stay Committed for the Long Term: Real estate investing is not a get-rich-quick scheme; it requires patience, perseverance, and a long-term perspective. Stay committed to your investment strategy, and resist the temptation to make impulsive decisions based on short-term market fluctuations. Remember that wealth accumulation through real estate often occurs gradually over time.

ConclusionSuccessful real estate investing requires a combination of knowledge, strategy, and discipline. By following these top tips and continuously learning and adapting, investors can increase their chances of achieving long-term success in the dynamic and rewarding world of real estate.

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by Mary Aspen Richardson

Navigating the process of moving when managing multiple properties poses unique challenges. After all, managing the logistics of relocation alongside the demands of property management requires careful planning and strategic thinking. From coordinating tenant transitions to maintaining financial stability, there is much to consider! So, let’s cover the most important bits of knowledge and prep work you’ll need to handle this easily.

Assessing your current situationAssessing your current situation is necessary if you want to minimize the impact of moving on your real estate investments.

Start by evaluating your workload, including tenant leases and maintenance schedules. Then, consider factors like distance and logistics to determine how the relocation will affect your properties.

Understanding the scope of the task ahead will help you prioritize tasks effectively! This may involve identifying critical responsibilities such as lease renewals and financial documentation. You may also be dealing with multiple locations and relocating, for instance, from Denver to a different city in Colorado or a different state. This will pose additional pressure on your operations.

Taking stock of your current situation allows you to plan strategically for the transition. This helps you anticipate any challenges that may arise during your indisposed period.

Establishing prioritiesEstablishing priorities will help you with managing multiple properties while preparing for a relocation. Identify critical tasks such as lease renewals and property inspections. Prioritize these tasks based on urgency and importance to ensure you can dedicate enough time to your own relocation needs!

So, as mentioned before, say you are moving from Denver to a different city; don’t forget that finding the best movers in Denver, CO, takes time and effort, too! By allocating time and resources efficiently, you can stay organized and minimize disruptions to your property management duties.

Communicating with tenantsCommunication with tenants is something you should not neglect during your relocation. As such, inform your tenants about your upcoming relocation promptly and transparently, ensuring they understand any changes that may affect them.

Clear channels for questions and concerns allow tenants to feel supported and reassured throughout the process. This might involve holding a meeting or sending detailed emails outlining the moving timeline and any adjustments to lease terms.

Maintaining open and proactive communication can foster positive relationships with your tenants and mitigate potential misunderstandings or conflicts.

Delegating responsibilitiesDelegating responsibilities is extremely helpful when managing multiple properties and preparing for a move. So, assign tasks to trusted team members or property management services, ensuring clear roles and expectations! Effectively distributing workload enables you to focus on critical aspects of the move while ensuring all necessary tasks are completed.

For example, you might delegate maintenance tasks to local contractors or hire temporary staff for administrative duties. This allows you to streamline operations and maintain productivity throughout the transition. Effective delegation also fosters collaboration and empowers your team to take ownership of their responsibilities!

Organizing documentation and financesOrganizing documentation and finances is extremely important if you’re moving when managing multiple properties. As such, gather all necessary paperwork and financial documents, including leases, utility bills, and tax records.

Establishing a systematic approach to organizing these documents can also ensure easy access and reference when needed. So, consider using digital platforms or cloud storage for secure and efficient retrieval.

Maintaining organized financial records allows you to track expenses, monitor cash flow, and ensure compliance with tax obligations. Besides, readily available documentation facilitates communication with tenants, contractors, and other stakeholders.

Managing property inspections and maintenanceManaging property inspections and maintenance is a big part of maximizing real estate revenue, and you mustn’t neglect it just due to moving.

Schedule thorough inspections before and after the move to identify any maintenance issues promptly. Addressing maintenance concerns this way helps maintain tenant satisfaction and prevents small issues from escalating into costly repairs.

Of course, consider hiring professional inspectors to ensure properties meet safety standards and comply with regulations.

Handling tenant relations effectivelyHandling tenant relations effectively is key to maintaining positive rental experiences, especially during a move.

Keep lines of communication open with tenants throughout the moving process, addressing concerns promptly and professionally. Offering incentives, such as rent discounts or assistance with relocation, can help mitigate any inconveniences caused by the relocation.

Remember to listen attentively to tenant feedback and address any issues promptly to foster trust and goodwill. Doing this can enhance your reputation as a landlord and lead to positive referrals and reviews.

Budgeting for moving expensesMake sure to estimate the cost of the move and allocate funds accordingly to avoid financial strain. Consider unexpected expenses and budget buffers to account for unforeseen circumstances!

Moreover, it helps if you find movers with thousands of satisfied customers like Spyder Moving Denver. These experts can offer all the services you need in one place, including packing, moving particularly heavy or tricky items, and even temporarily storing your belongings until your new home is ready. This way, you can budget much more easily than juggling multiple contractors.

Adhering to legal obligationsAdhering to legal obligations is a priority if moving when managing multiple properties. To avoid potential legal issues, you need to ensure compliance with local landlord-tenant laws and regulations:

• Review lease agreements and rental policies carefully to understand your rights and responsibilities as a landlord.
• Give proper notice to tenants regarding the relocation and any changes to lease terms. This is essential for transparency and legal compliance.
• Stay informed about legal requirements to protect your and your tenants’ interests.
• Seek legal advice if necessary to address any concerns or uncertainties.

Maintaining continuity in property managementMaintaining continuity in property management is crucial for managing your investments, especially during a relocation.

Therefore, work to implement strategies to minimize disruptions and ensure seamless operations across all properties. This might involve utilizing automated systems for rent collection and maintenance requests to streamline processes.

You should also continuously monitor property management tasks to address any issues promptly and effectively.

Communicate with tenants and service providers to maintain open lines of communication and foster positive relationships.

Finally, remember to stay organized and proactive in addressing any challenges that may arise during the process.

Handle moving when managing multiple properties easilyMoving when managing multiple properties demands meticulous organization and proactive communication. Still, by implementing the strategies we outlined, you can navigate the challenges of relocation while sustaining property management operations! Just remember to prioritize tenant satisfaction, legal compliance, and financial stability throughout the process. If you do, with careful planning and attention to detail, you can minimize disruptions and ensure the continued success of your real estate ventures amidst relocation demands!

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Investing in small multifamily properties has long been considered a smart strategy for both seasoned investors and newcomers alike. These properties offer a blend of stability, cash flow potential, and scalability that appeals to a wide range of investors. For those looking to capitalize on this lucrative market, here are five of the best real estate markets to consider for purchasing small multifamily properties:

1. Austin, TexasAustin’s vibrant economy, booming tech sector, and population growth make it an attractive market for small multifamily property investors. The city’s strong job market, coupled with a diverse and educated workforce, drives demand for rental housing. Additionally, Austin’s favorable business climate and low cost of living compared to other tech hubs like Silicon Valley attract young professionals and families seeking affordable housing options.

2. Denver, ColoradoDenver’s robust economy, thriving cultural scene, and outdoor recreational opportunities have made it a magnet for millennials and remote workers seeking a high quality of life. The city’s population growth has outpaced housing supply, leading to a shortage of affordable rental units. Small multifamily properties in neighborhoods close to downtown Denver and employment centers offer investors an opportunity to capitalize on strong rental demand and appreciation potential.

3. Atlanta, GeorgiaAtlanta’s diverse economy, affordable housing market, and expanding job opportunities make it an attractive destination for real estate investors. The city’s status as a transportation and logistics hub, coupled with its growing film and television industry, drives demand for rental housing. Small multifamily properties in neighborhoods undergoing revitalization or located near universities and employment centers offer investors attractive returns and long-term appreciation potential.

4. Nashville, TennesseeNashville’s thriving music scene, burgeoning tech industry, and strong job market make it a hotbed for real estate investment. The city’s population growth, fueled by domestic migration and an influx of young professionals, has led to increased demand for rental housing. Small multifamily properties in neighborhoods experiencing gentrification or located near downtown Nashville and major employers offer investors a chance to capitalize on the city’s growth trajectory.

5. Tampa, FloridaTampa’s sunny climate, growing economy, and affordable housing market make it an attractive destination for real estate investors. The city’s diverse economy, anchored by industries such as healthcare, finance, and tourism, provides a stable foundation for rental housing demand. Small multifamily properties in neighborhoods experiencing urban revitalization or located near Tampa’s waterfront and cultural attractions offer investors strong rental income potential and the opportunity for appreciation.

ConclusionInvesting in small multifamily properties can be a lucrative strategy for building wealth and generating passive income. By targeting markets with strong economic fundamentals, population growth, and rental demand, investors can position themselves for long-term success. Whether you’re a seasoned investor or a newcomer to real estate investing, these five markets offer compelling opportunities to capitalize on the growing demand for rental housing and achieve your financial goals.

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By Laura Watson

Are you looking to update the exterior of your home? Whether you want to boost curb appeal or simply give your home a fresh new look, we’ve got you covered. In this article, we have compiled a list of the 10 best exterior home renovation ideas that are sure to transform your house into a stunning showpiece. From adding a pop of color with a vibrant front door to installing energy-efficient windows, these ideas will not only enhance the aesthetics of your home but also increase its value.

We’ll explore the latest trends in exterior design, providing you with inspiration and practical tips to help you get started on your renovation journey. So, if you’re ready to give your home a much-needed facelift, read on and discover the top renovation ideas that will make your home the envy of the neighborhood.

Curb Appeal: Enhancing the First ImpressionThe exterior of your home is the first thing visitors and passersby notice. Enhancing your home’s curb appeal can instantly make it more inviting and visually appealing. One way to achieve this is by incorporating landscaping elements that complement your home’s architecture. Consider adding flower beds, shrubs, or trees to create a welcoming entrance. Another option is to install outdoor lighting that highlights your home’s best features and adds a sense of security. Set a u-shaped sofa in the entrance lawn, additionally, updating your front door with a fresh coat of paint or replacing it with a stylish new one can make a significant impact. Remember to choose a color that complements the overall color scheme of your home. These simple yet effective changes can transform the look of your home and make a lasting impression on visitors.

To further enhance your home’s curb appeal, consider adding architectural details such as window shutters, decorative moldings, or a covered porch. These elements not only add visual interest but also create a sense of charm and character. Additionally, upgrading your garage door can have a major impact on the overall appearance of your home. Choose a design and color that complements the style of your home and be sure to opt for a durable and low-maintenance material. By paying attention to these small details, you can greatly enhance the curb appeal of your home and create a welcoming and attractive exterior.

Another key aspect of enhancing curb appeal is maintaining a clean and tidy exterior. Regularly clean your windows, gutters, and siding to keep your home looking its best. Pressure washing your driveway and walkways can also make a dramatic difference in the overall appearance of your home. Additionally, consider adding outdoor seating or a cozy porch swing to create a welcoming outdoor space. By investing a little time and effort in these simple exterior improvements, you can significantly increase the curb appeal of your home and make a positive impression on guests and increase the value of your property in real estate and attract potential buyers.

Updating the Siding: Materials and Design OptionsThe siding of your home plays a vital role in both its aesthetics and protection against the elements. If your current siding is worn out or outdated, it may be time for an upgrade. When choosing new siding, consider the architectural style of your home, the climate you live in, and your budget. There are several materials to choose from, each with its own unique advantages and considerations.

Vinyl siding is a popular choice due to its affordability, versatility, and low maintenance requirements. It comes in a wide range of colors and styles, allowing you to achieve the desired look for your home. Another option is fiber cement siding, which offers the durability of cement combined with the versatility of wood. Fiber cement siding is resistant to rot, pests, and fire, making it a practical and long-lasting choice. For a more traditional and timeless look, consider wood siding. While it requires more maintenance, wood siding offers a natural beauty that is hard to replicate with other materials.

In addition to choosing the right material, you can also enhance the look of your siding by selecting the right design and texture. Horizontal lap siding is a classic choice that suits a variety of architectural styles. Vertical siding can add a modern and sleek touch to your home. If you’re looking for a unique and eye-catching option, consider shake or shingle siding. The key is to select a design that complements the overall style of your home and creates visual interest.

When updating your siding, it’s important to consider the insulation properties of the material. Insulated siding can help improve energy efficiency and reduce heating and cooling costs. Additionally, be sure to choose a reputable contractor for the installation to ensure a professional and durable result. By selecting the right material, design, and texture, you can update your home’s exterior and give it a fresh new look that will last for years to come.

Revamping the Roof: Choosing the Right MaterialsThe roof is one of the most important elements of your home’s exterior. Not only does it protect your home from the elements, but it also contributes to its overall aesthetic appeal. If your roof is showing signs of wear and tear or if you simply want to update its look, revamping the roof can make a significant difference.

When it comes to roofing materials, there are several options to choose from. Asphalt shingles are the most common choice due to their affordability and durability. They come in a variety of colors and styles, allowing you to achieve the desired look for your home. Another popular option is metal roofing, which offers exceptional durability and longevity. Metal roofs are resistant to fire, hail, and strong winds, making them a practical choice for homes in areas prone to severe weather. Additionally, metal roofs are energy-efficient and can help reduce heating and cooling costs.

For a more traditional and elegant look, consider slate or clay tile roofing. These materials are known for their beauty and longevity but are more expensive than other options. If you’re looking for an eco-friendly choice, consider a green roof or a roof made from recycled materials. These roofs not only provide insulation but also absorb rainwater and reduce storm water runoff.

When revamping your roof, it’s important to consider the architectural style of your home and the climate you live in. Additionally, be sure to hire a professional roofing contractor to ensure a proper installation. By choosing the right materials and design, you can give your home a fresh new look and enhance its durability and energy efficiency.

Upgrading the Windows and Doors: Efficiency and AestheticsWindows and doors are essential components of your home’s exterior. Upgrading them can not only improve the aesthetics of your home but also enhance its energy efficiency and security. When selecting new windows and doors, consider factors such as material, style, and energy efficiency.

One popular choice for windows is vinyl. Vinyl windows are affordable, low-maintenance, and energy-efficient. They come in a variety of styles, including casement, double-hung, and sliding, allowing you to choose the best option for your home. Another option is wood windows, which offer a classic and timeless look. Wood windows require more maintenance but can be customized to match the architectural style of your home.

When it comes to doors, fiberglass and steel are popular choices. Fiberglass doors offer the look of wood but with greater durability and energy efficiency. They are also resistant to warping, cracking, and rotting, making them a practical choice for exterior doors. Steel doors are known for their strength and security. They are also energy-efficient and require minimal maintenance.

In addition to selecting the right materials, consider adding features such as double glazing or low-emissivity coatings to improve energy efficiency. These features can help reduce heating and cooling costs by minimizing heat transfer. Additionally, consider installing storm doors or windows for added protection against the elements.

Upgrading your windows and doors not only enhances the aesthetics and functionality of your home but also increases its value. By choosing energy-efficient options, you can reduce your carbon footprint and save money on utility bills. So, whether you’re looking to replace a few windows or upgrade your entire entryway, investing in high-quality windows and doors is a smart choice for any exterior renovation project.

Landscaping and Outdoor Living Spaces: Creating an Inviting AtmosphereA well-designed outdoor space can greatly enhance the overall appeal of your home. Whether you have a small front yard or a spacious backyard, landscaping and creating outdoor living spaces can transform your home into a haven of relaxation and entertainment.

Start by assessing the layout and size of your outdoor space. Consider how you want to use the area and what features are important to you. If you enjoy hosting gatherings, consider creating a patio or deck where you can set up outdoor furniture and a grill. This will provide a designated space for entertaining and dining al fresco. If you have children or pets, consider adding a play area or a fenced-in yard for their safety and enjoyment.

When it comes to landscaping, choose plants and flowers that are suitable for your climate and require low maintenance. Consider adding colorful flower beds or planting trees for shade and privacy. Incorporate elements such as a water feature, a fire pit, or outdoor lighting to create a welcoming and relaxing atmosphere. Additionally, consider adding pathways or stepping stones to connect different areas of your outdoor space.

To make the most of your outdoor space, invest in quality outdoor furniture and accessories. Choose durable materials that can withstand the elements and opt for comfortable seating and lounging options. Add cushions, pillows, and outdoor rugs to create a cozy and inviting atmosphere. If you have limited space, consider vertical gardening or hanging plants to maximize the use of your outdoor area.

By creating an inviting outdoor space, you can extend your living area and enjoy the beauty of nature right at your doorstep. Whether you prefer a tranquil oasis or an entertainment hub, landscaping and outdoor living spaces can enhance the overall appeal and value of your home.

Adding a Fresh Coat of Paint: Transforming the Look of Your HomeOne of the most cost-effective ways to update the exterior of your home is by adding a fresh coat of paint. A new color can completely transform the look and feel of your home, giving it a modern and updated appearance. When choosing a paint color, consider the architectural style of your home, the surrounding landscape, and the overall color scheme of your neighborhood.

If you want to make a bold statement, consider opting for a vibrant and eye-catching color for your front door. This can instantly add personality and curb appeal to your home. Popular choices include bright red, sunny yellow, or deep blue. Just make sure the color complements the rest of your home’s exterior.

When it comes to the main body of your home, neutrals are always a safe choice. Shades of gray, beige, or taupe can create a timeless and elegant look. If you want to add visual interest, consider painting the trim or shutters in a contrasting color. This can create a striking and sophisticated look.

Before painting, make sure to prepare the surface properly by cleaning and repairing any damage. It’s also important to choose high-quality exterior paint that is specifically designed for outdoor use. This will ensure a long-lasting and durable finish. If you’re unsure about which colors to choose, consider consulting with a professional color consultant or a local paint store.

Adding a fresh coat of paint is a relatively simple and affordable way to update the look of your home. Whether you decide to go for a bold color or a classic neutral, a fresh coat of paint can give your home a much-needed facelift and increase its curb appeal.

Incorporating Eco-Friendly Features: Sustainability and Energy EfficiencyIncorporating eco-friendly features into your exterior renovation can not only help protect the environment but also save you money on energy bills. With the increasing focus on sustainability and energy efficiency, there are several options to choose from when it comes to making your home more eco-friendly.

One of the simplest ways to reduce your carbon footprint is by installing energy-efficient lighting. LED lights are a popular choice as they consume less energy and have a longer lifespan compared to traditional incandescent bulbs. Additionally, consider installing motion sensor lights or solar-powered lights for your outdoor spaces to further reduce energy consumption.

Another eco-friendly feature to consider is rainwater harvesting. By installing a rainwater collection system, you can collect rainwater and use it for watering your plants or washing your car, reducing your reliance on municipal water supply. This not only conserves water but also reduces your water bill.

Investing in energy-efficient windows and doors can also make a significant impact on your home’s energy consumption. Look for windows and doors with a high energy-efficiency rating to minimize heat loss or gain. Additionally, consider adding insulation to your walls and roof to further improve energy efficiency.

If you’re looking to go a step further, consider installing solar panels on your roof. Solar energy is a clean and renewable source of power that can greatly reduce your reliance on fossil fuels. While the upfront cost may be higher, the long-term savings and environmental benefits make it a worthwhile investment.

By incorporating eco-friendly features into your exterior renovation, you can reduce your environmental impact and create a more sustainable home. Not only will this benefit the planet, but it will also save you money in the long run.

Enhancing the Driveway and Walkways: Improving Functionality and AestheticsThe driveway and walkways of your home play a crucial role in both functionality and aesthetics. Upgrading these areas can greatly enhance the overall appeal and value of your home. When it comes to enhancing your driveway and walkways, there are several options to consider.

If your current driveway is cracked, stained, or outdated, consider replacing it with a new one. Concrete driveways are a popular choice due to their durability and affordability. They come in a variety of finishes and can be customized with patterns or colors. Another option is asphalt, which offers a smooth and sleek look. Asphalt driveways are known for their strength and ability to withstand heavy loads.

To add visual interest and texture to your driveway, consider using pavers or interlocking stones. These materials come in a variety of shapes, colors, and patterns, allowing you to create a unique and personalized look. Additionally, pavers and interlocking stones are easy to repair and maintain.

When it comes to walkways, consider using materials that complement the overall design of your home.

ConclusionAs a real estate investor, you should always look for and implement strategies to boost your return on investment. One of the most cost-effective ways to do that is by searching out and conducting strategic interior and exterior renovations to improve and enhance the most important parts of your home.

Photo by Blue Bird: https://www.pexels.com/photo/brown-wooden-ladder-beside-painting-materials-7218525/

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By Emily John

IntroductionLooking to make a profitable investment in the real estate market? Unlocking the secrets of analyzing rental properties can be your key to success. In this comprehensive guide, we will take you through the process of evaluating rental properties to maximize your profitability.

Whether you’re a seasoned investor or just starting out, understanding the nuances of rental property analysis is crucial. This guide will equip you with the knowledge and tools you need to make informed decisions and avoid costly mistakes while sitting on your comfortable corner sofa.

From calculating cash flow and determining rental yields to evaluating market trends and assessing property condition, we will cover it all. You’ll learn how to analyze potential returns, estimate expenses, and navigate market fluctuations. Armed with these insights, you can confidently identify properties with the greatest profit potential.

With a focus on accuracy and reliability, this guide combines expert advice with practical examples to help you unlock the secrets of rental property analysis. Whether your goal is to build a portfolio or generate passive income, this guide will empower you to make sound investment decisions. Get ready to unlock the potential of rental properties and achieve maximum profitability.

Key Metrics for Rental Property AnalysisWhen analyzing rental properties, there are key metrics that can help you assess their profitability. These metrics provide valuable insights into the financial performance of a property and allow you to compare different investment opportunities.

Cash Flow AnalysisOne of the most important metrics in rental property analysis is cash flow. Cash flow refers to the amount of money that is left over after deducting all expenses from rental income. Positive cash flow indicates that the property generates more income than it costs to operate, while negative cash flow means the property is not generating enough income to cover expenses.

To calculate cash flow, subtract all expenses, including mortgage payments, property taxes, insurance, maintenance costs, and vacancy allowance, from the rental income. It’s important to be conservative when estimating expenses to ensure you have a realistic cash flow projection.

Return on Investment (ROI) AnalysisReturn on investment (ROI) is another crucial metric in rental property analysis. ROI measures the profitability of an investment by comparing the amount of return generated to the initial investment cost. It helps you assess the potential return you can expect from a property relative to the amount of money you put in.

To calculate ROI, divide the annual cash flow by the total investment cost, including the purchase price, closing costs, and any renovation expenses. Multiply the result by 100 to get the ROI percentage. A higher ROI indicates a more profitable investment.

Cap Rate AnalysisCap rate, short for capitalization rate, is a metric used to evaluate the potential return on investment of a rental property. It measures the rate of return an investor can expect to earn on their investment, based on the property’s net operating income (NOI) relative to its market value.

To calculate cap rate, divide the property’s NOI by its market value. The NOI is the property’s annual income after deducting all operating expenses, excluding mortgage payments. Cap rate provides a standardized way to compare different investment opportunities and assess their profitability.

Assessing Market ConditionsWhile analyzing rental properties, it’s essential to consider the current market conditions. Understanding the local real estate market can help you identify opportunities and make informed decisions.

Evaluating Rental Property LocationLocation is a critical factor that can significantly impact the profitability of a rental property. Properties in desirable locations with high demand tend to have higher rental rates and lower vacancy rates. On the other hand, properties in less desirable locations may struggle to attract tenants and achieve optimal rental income.

When evaluating rental property location, consider factors such as proximity to amenities, schools, employment opportunities, transportation, and safety. Research the neighborhood’s rental market and vacancy rates to gauge the potential demand for rental properties in that area. A thorough analysis of the location can help you identify properties with the greatest profit potential.

Analyzing Rental Property ExpensesAnalyzing rental property expenses is crucial for accurate financial projections and assessing profitability. Expenses can vary depending on factors such as property type, location, age, and condition. It’s important to consider both fixed and variable expenses when analyzing a rental property.

Fixed expenses include mortgage payments, property taxes, insurance, and any homeowner association fees. Variable expenses include maintenance and repair costs, property management fees, vacancy allowance, and utilities. It’s essential to estimate these expenses accurately to calculate cash flow and ROI effectively.

Understanding Rental Property Financing OptionsFinancing plays a significant role in rental property investment. Understanding the financing options available to you can help you make informed decisions and maximize profitability.

Traditional FinancingTraditional financing options, such as mortgages offered by banks and financial institutions, are commonly used to purchase rental properties. These loans typically require a down payment and have fixed interest rates and repayment terms. Traditional financing allows investors to leverage their investment and generate higher returns.

Private FinancingPrivate financing, also known as hard money loans or private money loans, involves borrowing from individuals or private lenders. Private financing can be a viable option for investors who may not qualify for traditional financing or need quick access to funds. However, private financing often comes with higher interest rates and shorter repayment terms.

Seller FinancingSeller financing is an arrangement where the property seller provides financing to the buyer. In this scenario, the buyer makes monthly payments to the seller instead of a traditional lender. Seller financing can be beneficial for both parties as it allows the buyer to purchase the property without a traditional mortgage, and the seller can earn interest on the financed amount.

Understanding the available financing options and their terms can help you determine the most suitable approach for your rental property investment.

Conclusion: Taking Action on Profitable Rental PropertiesAnalyzing rental properties for maximum profitability requires a combination of financial analysis, market research, and due diligence. By considering key metrics such as cash flow, ROI, and cap rate, as well as evaluating market conditions and understanding financing options, you can make informed investment decisions.

Remember, thorough research and accurate financial projections are essential when analyzing rental properties. It’s crucial to consider factors such as location, expenses, and market trends to identify properties with the greatest profit potential. By unlocking the secrets of rental property analysis, you can unlock the potential for maximum profitability.

So, whether you’re looking to build a real estate portfolio or generate passive income, use this comprehensive guide to equip yourself with the knowledge and tools needed to make sound investment decisions. Get ready to unlock the secrets and unlock the potential of rental properties for maximum profitability.

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By Bill Manassero

Real estate investing has long been regarded as a pathway to wealth creation and financial freedom. However, the misconception that substantial capital is required to get started often deters aspiring investors from pursuing their goals. The truth is, with creativity, resourcefulness, and strategic planning, it’s possible to embark on a real estate investing journey with little to no money upfront. Here’s a comprehensive guide on how to get started in real estate investing with no money:

1. Educate YourselfBefore diving into real estate investing, it’s crucial to educate yourself about the fundamentals of the industry. Take advantage of resources such as books, podcasts, online courses, and seminars to learn about different investment strategies, market dynamics, financing options, and risk management techniques. Familiarize yourself with real estate terminology, concepts, and best practices to build a solid foundation of knowledge and skills.

2. Leverage Other People’s Money (OPM)One of the most effective strategies for getting started in real estate investing with no money is to leverage other people’s money (OPM). This involves partnering with investors, lenders, or private individuals who are willing to finance your deals in exchange for a share of the profits. Seek out potential joint venture partners, equity investors, or private lenders who are interested in collaborating on real estate projects and can provide the necessary capital to fund your investments.

3. Explore Creative Financing OptionsIn addition to OPM, explore creative financing options that require little to no money down. Look into seller financing, lease options, subject-to transactions, and seller carryback mortgages as alternative methods for acquiring properties with minimal upfront costs. Negotiate favorable terms with sellers, landlords, or distressed property owners to structure deals that align with your investment objectives and financial constraints.

4. Start SmallWhen starting out in real estate investing with no money, focus on small-scale, low-cost investment opportunities that offer high potential returns. Consider investing in wholesaling, bird-dogging, or flipping properties, which require minimal capital investment and can generate quick profits. Look for distressed properties, off-market deals, or motivated sellers who are willing to sell below market value and present opportunities for profitable transactions.

5. Build Relationships and NetworkNetworking and building relationships with other real estate professionals, investors, and industry experts are essential for finding opportunities and accessing resources in the real estate market. Attend local real estate networking events, join investor groups, and participate in online forums to connect with like-minded individuals, learn from experienced investors, and discover potential investment partners or mentors. Cultivate relationships with real estate agents, wholesalers, contractors, and other professionals who can provide valuable insights, referrals, and support in your real estate investing journey.

6. Take Advantage of Government Programs and IncentivesExplore government programs, grants, and incentives designed to support real estate investors, particularly those investing in affordable housing, community development, or distressed areas. Investigate federal, state, and local initiatives such as low-income housing tax credits, HUD programs, and community development block grants that offer financial assistance, tax benefits, or regulatory relief for eligible real estate projects. Research eligibility requirements, application processes, and program guidelines to determine if you qualify for assistance and can leverage government resources to finance your investments.

7. Develop a Solid Business PlanDeveloping a solid business plan is essential for getting started in real estate investing with no money. A well-thought-out plan will help you clarify your goals, define your strategy, and outline the steps needed to achieve success. Here’s a step-by-step guide to developing a business plan for real estate investing with no money:

8. Define Your Investment Goals: Start by clearly defining your investment goals. Consider factors such as your desired rate of return, investment timeline, risk tolerance, and exit strategy. Determine whether you’re interested in short-term profits through strategies like flipping or long-term wealth accumulation through rental properties.

9. Identify Your Niche and Investment Strategy: Identify your niche within the real estate market and choose an investment strategy that aligns with your goals and resources. Explore options such as wholesaling, flipping, rental properties, lease options, or creative financing. Evaluate the pros and cons of each strategy and select the one that best suits your interests and expertise.
10. Research Your Target Market: Conduct thorough research on your target market to identify opportunities and assess demand and supply dynamics. Analyze market trends, economic indicators, demographic data, and local real estate conditions. Identify emerging neighborhoods, underserved markets, or distressed areas with potential for growth and investment.
11. Analyze Your Financing Options: Explore creative financing options that require little to no money down. Research strategies such as seller financing, lease options, subject-to transactions, or partnerships with investors or lenders. Evaluate the feasibility and risks associated with each financing option and choose the one that best fits your investment strategy and circumstances.
12. Create a Marketing Plan: Develop a marketing plan to attract investment opportunities and generate leads. Utilize online and offline marketing channels such as websites, social media, networking events, direct mail, and word-of-mouth referrals. Craft compelling marketing messages and materials to communicate your value proposition and attract potential sellers, investors, or partners.
13. Establish Your Team and Network: Build a team of professionals and a network of contacts to support your real estate investing endeavors. Identify key players such as real estate agents, attorneys, lenders, contractors, and property managers who can provide expertise, advice, and assistance. Cultivate relationships with other investors, mentors, and industry experts to learn from their experiences and leverage their knowledge.
14. Develop a Financial Plan: Create a financial plan that outlines your budget, cash flow projections, and investment criteria. Estimate your expenses, including acquisition costs, renovation expenses, holding costs, and selling or leasing costs. Calculate your potential returns, including rental income, appreciation, and resale profits. Set realistic financial goals and benchmarks to measure your progress and track your success.
15. Outline Your Action Plan and Timeline: Develop a detailed action plan and timeline for executing your investment strategy. Break down your goals into actionable steps and prioritize tasks based on their importance and urgency. Set deadlines and milestones to keep yourself accountable and ensure progress towards your objectives. Review and adjust your action plan regularly to adapt to changing market conditions and opportunities.
16. Monitor and Evaluate Your Progress: Monitor your progress and evaluate the performance of your investments regularly. Track key metrics such as cash flow, occupancy rates, property values, and return on investment. Identify areas of improvement and adjust your strategies accordingly. Stay informed about market trends, regulatory changes, and economic developments that may impact your investments.
17. Continuously Learn and Adapt: Real estate investing is a dynamic and evolving field, so it’s essential to continuously learn and adapt to stay competitive. Stay updated on industry trends, best practices, and emerging opportunities through books, courses, seminars, and networking events. Seek feedback from mentors, peers, and professionals to identify areas for growth and improvement. Stay flexible and open-minded to adjust your strategies as needed to capitalize on new opportunities and navigate challenges.

By following these steps and developing a solid business plan, you can get started in real estate investing with no money and set yourself up for success in the dynamic and rewarding world of real estate.

Conclusion:Real estate investing with no money upfront is indeed possible with the right knowledge, strategy, and determination. By leveraging other people’s money, exploring creative financing options, starting small, building relationships, and taking advantage of government programs, aspiring investors can overcome the barrier of capital and embark on their real estate journey.

However, it’s important to approach investing with caution and diligence. Conduct thorough research, due diligence, and financial analysis before making any investment decisions. Seek advice from experienced investors, real estate professionals, and financial advisors to gain insights and guidance along the way.

Remember that real estate investing is not without risks, and success often requires patience, persistence, and adaptability. Stay informed about market trends, economic indicators, and regulatory changes that may impact your investments. Be prepared to navigate challenges, setbacks, and unexpected obstacles with resilience and determination.

With dedication, education, and the right mindset, anyone can achieve success in real estate investing, regardless of their financial situation. By taking action, seizing opportunities, and continuously learning and growing, you can turn your dreams of real estate investing into a reality and build a prosperous future for yourself and your loved ones.

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By Bill Manassero

Once hailed as a disruptor in the hospitality industry, Airbnb’s meteoric rise has been marred by a series of challenges in recent years, leading to a noticeable decline in its dominance. From regulatory hurdles to changing consumer preferences and the impacts of the COVID-19 pandemic, Airbnb faces a host of obstacles that threaten its position in the short-term rental market.

Regulatory ChallengesOne of the significant challenges facing Airbnb is the increasing regulatory scrutiny it faces in various jurisdictions around the world. Many cities have implemented regulations aimed at curbing short-term rentals, citing concerns about housing affordability, neighborhood disruption, and tax evasion. These regulations often impose restrictions on the number of days a property can be rented out or require hosts to obtain permits and pay taxes.

Airbnb’s business model, which relies on individuals renting out their properties to travelers, has clashed with these regulations, leading to legal battles and fines in several cities. As a result, the platform has had to navigate a complex regulatory landscape, which has constrained its growth potential and increased operational costs.

Changing Consumer PreferencesAnother factor contributing to Airbnb’s decline is shifting consumer preferences in the wake of the COVID-19 pandemic. The pandemic prompted a significant downturn in travel and tourism, leading to a sharp decline in bookings and revenue for Airbnb and other short-term rental platforms.

As travelers prioritize safety and hygiene, many are opting for traditional hotels with standardized cleaning protocols and amenities. Additionally, the rise of remote work and the shift towards longer-term stays have prompted some travelers to seek accommodations that offer more space, reliability, and consistency, which may favor traditional hospitality providers over individual hosts on Airbnb.

Quality Control and Trust IssuesWhile Airbnb initially thrived on the concept of peer-to-peer rentals and the sharing economy, concerns about quality control and trust have emerged as significant challenges for the platform. Instances of fraudulent listings, misrepresentation of properties, and negative guest experiences have eroded trust in Airbnb among both hosts and guests.

In response, Airbnb has implemented stricter verification processes, enhanced safety measures, and introduced new features such as Airbnb Plus and Airbnb Luxe, which offer premium, curated listings. However, these efforts may not be enough to address the underlying issues of trust and reliability that have plagued the platform.

Competition and Market SaturationThe short-term rental market has become increasingly crowded, with numerous competitors vying for market share alongside Airbnb. Traditional hotel chains have entered the space with their own short-term rental platforms, while other startups and online travel agencies have emerged as viable alternatives to Airbnb.

This heightened competition, coupled with market saturation in popular tourist destinations, has put pressure on Airbnb’s growth prospects and profitability. As the market becomes more fragmented, Airbnb may struggle to maintain its dominant position and differentiate itself from competitors.

ConclusionIn conclusion, Airbnb’s decline reflects a confluence of factors, including regulatory challenges, changing consumer preferences, quality control issues, and increased competition. While the platform revolutionized the way people travel and book accommodations, its future success hinges on its ability to adapt to these challenges and regain the trust of hosts and guests alike. Whether Airbnb can overcome these obstacles and regain its momentum remains to be seen, but the evolving dynamics of the short-term rental market suggest that the company faces an uphill battle in reclaiming its former glory.

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By Pauline Cruz

When it comes to increasing a property’s value, real estate professionals must look at the many possibilities and parts of a home. And two spaces that you should definitely consider renovating if you want to unlock new opportunities. The attic and basement, of course.

Exploring design strategies to upgrade these two often-overlooked areas can amp up the value of any home. From creating additional sleeping quarters to crafting entertainment or home office spaces, the possibilities are almost endless. Let’s explore the different ways you can unlock the full potential of your real estate investment.

Getting Started: Familiarize Yourself with the ChallengesThe attic and basement hold so much untapped potential. But they also come with challenges that you need to know.

Study the Structural ConcernsLearning about the unique structural elements of these two spaces and planning ahead can help you create the right approaches and workarounds. These are some concerns you may need to look into:

• Natural Light: Natural light helps make homes feel more bright. Unfortunately, attics and basements are two parts of the house that tend to lack ample natural light. To avoid these spaces from looking dark and gloomy, you can incorporate design strategies like skylights or light wells. In situations where natural light simply cannot make its way to these areas, adding light-colored walls and ambient and accent lighting can help create a more inviting atmosphere.
• Ceiling Height: Low ceiling heights in attics and basements can pose design challenges and limit the types of renovations possible. It’s essential to assess ceiling heights and consider creative design solutions.
• Insulation and Ventilation: Proper insulation and ventilation are critical for attics and basements to maintain comfortable temperatures and save energy. Evaluate existing insulation levels and consider upgrading to high-performance insulation materials. Plus, it ensures effective ventilation to prevent moisture buildup and mold growth and improve overall indoor air quality.

Know (and Comply with) the Building Codes and RegulationsIf you want to mitigate the risks of upgrading your home, you must understand and comply with building codes and regulations. These guidelines are meant to be followed not just to avoid hefty fines but also to avoid project delays and ensure the safety and integrity of your home.

To maximize success, your renovations must be completed safely and up to code. When you know that you have complied with regulations and industry best practices, you can be more confident while negotiating with potential buyers.

Renovation Options for Attics and BasementsThese two parts of your home hold so much untapped potential. You can either go all out with a full-blown renovation project or make a few simple yet impactful changes that can highlight these areas.

Create a Sleeping NookAttics with low ceilings can be converted into an additional bedroom or a sleeping nook. Low ceilings may feel constricting, but with the right furniture and design elements, you can turn a gloomy space into an intimate and inviting one. Use plush bedding, soft lighting, and other personal touches to impress potential buyers.

Build a Family Entertainment AreaBasements don’t always have to look and feel dark. You can convert it into a family entertainment area where everyone can gather and unwind. Soundproofing is crucial to minimize noise transfer from this area to other parts of the house. Another important element is comfortable seating. You can add various seating options, including oversized bean bags and a sectional couch, which are excellent for both family bonding and gaming.

For finishing touches, why not add unique puzzles, old-school video games, or even a home cinema projector? This way, you help viewers to visualize the amount of fun and bonding they can have with their loved ones.

Highlight the FunctionalityWhat’s great about basements and attics is that they can serve multiple purposes. You can highlight this by creating a flexible layout accommodating various activities. When you highlight the functionality and potential of these rooms, you can improve the space and enhance the overall value of a home.

Install versatile furniture like seats that double as storage or a pull-out couch that can be used by house guests. Fold-down furniture is also an excellent option to maximize the space. For example, an attic can be used as a meditation room in the morning and then seamlessly converted into a home office with the right elements.

ConclusionAttic and basement renovations may be tricky because of the different design challenges. But when done well, it can boost your property’s value. And it all starts with thoughtful planning.

Whether you envision a simple yet cozy sleeping nook or an all-out entertainment den, a thorough understanding of these spaces and a willingness to consider creative solutions are needed. Moreover, ensuring compliance with industry standards and building codes is an absolute must. By keeping this in mind, there’s no doubt that you can enhance both your property and its market value.

Looking for surefire ways to sell your home? Visit the Old Dawg’s REI Network blog today.

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By Mary Aspen Richardson

Exploring the nuances of the impact of moving on your real estate investments unveils a complex interplay of financial considerations and lifestyle adjustments. As individuals contemplate relocation, whether for career advancements or personal reasons, understanding how such a move can influence their real estate portfolio becomes a necessity after all. From evaluating market dynamics to assessing tax implications, navigating this terrain demands meticulous planning and foresight to safeguard and optimize one’s investment endeavors!

Understanding market dynamicsUnderstanding market dynamics is the first puzzle piece for understanding the impact of moving on your real estate investments. By researching the local market, investors can identify trends and potential opportunities. Factors such as supply and demand, economic conditions, and population growth affect property values. So, naturally, analyzing these factors helps people make better decisions. Assessing risks and opportunities enables them to anticipate market changes and adjust their strategies accordingly. Finally, staying updated on market dynamics allows people to capitalize on emerging trends and mitigate potential risks. Therefore, a deep understanding of market dynamics empowers you to navigate the real estate market confidently and optimize investment portfolios for long-term success.

Selling your current propertyAnother notable impact of moving on your real estate investments is selling your current property. Firstly, evaluating the timing of the sale and market conditions is essential. Next, consider implementing strategies to maximize the sale price, such as staging the property and making necessary repairs. Accounting for costs like real estate agent commissions and closing fees is also important for budgeting. Then, there are costs for refreshing your property, including painting, landscaping, or minor renovations to enhance its appeal. Pricing the property competitively based on comparable sales in the area can also attract potential buyers. Lastly, navigating the negotiation process and finalizing the sale requires attention to detail and effective communication. By carefully managing each aspect of selling your property, you can optimize its value and ensure a positive impact on your finances!

Buying in a new locationWhen buying in a new location, thorough research lets you make better decisions. Start by exploring the local real estate market to understand trends and property values. Then, identify desirable neighborhoods and property types that align with your preferences and budget. Budgeting for potential differences in property prices and considering additional costs like taxes and homeowner association fees is also essential. Furthermore, working with a local real estate agent can provide valuable insights and assistance throughout the buying process. Finally, visiting the area in person to get a feel for the community and amenities can also help you make a confident decision. You can find the perfect property in your new location that meets your needs and goals by carefully evaluating your options and conducting due diligence.

Renting out your current propertyRenting out your current property can be a smart financial move to circumvent the impact of moving on your real estate investments, especially since it offers multiple benefits beyond immediate income. By becoming a landlord, you generate rental income and build equity in your property over time. This steady stream of income can help offset mortgage payments and other expenses associated with homeownership. Furthermore, renting out your property allows you to diversify your investment portfolio and prepare long-term income for your retirement. However, it’s crucial to consider the responsibilities of being a landlord, such as property maintenance, tenant management, and legal obligations. Working with a property management company can alleviate some of these burdens while ensuring a smooth rental experience. Therefore, renting out your property can be a lucrative investment strategy with the potential for long-term financial stability.

Impact on cash flow and financingMoving can significantly impact your real estate investments, affecting cash flow and financing alike. Firstly, there are the cost aspects of moving itself, too. You wouldn’t want to tackle moving from California and hiring interstate movers without accounting for it in your budget, especially considering how much interstate movers can help. Beyond the immediate expenses of relocation, such as hiring movers or transportation costs, there are broader financial implications, too. These include potential changes in property values, rental income, or mortgage terms based on the new location. You need to thoroughly analyze how the move will impact your cash flow and financing options to make solid decisions about your real estate investments. Taking these factors into account can help ensure a smoother transition and mitigate any unexpected financial challenges along the way!

Tax implications of relocatingUnderstanding the tax implications of relocating is very much necessary for managing your finances effectively. Firstly, consider how moving affects your tax situation, including potential deductions and credits related to real estate investments. Consulting with a tax professional can provide valuable insights into how relocation may impact your tax liability here. In addition to that, be aware of any state-specific tax laws or regulations that may apply in your new location. Deductions for moving expenses may be available if the move is related to starting a new job or business! However, keeping accurate records and documentation to support any claims is crucial. By staying informed about the tax implications of relocating, you can minimize your tax burden and ensure compliance with the laws.

Long-term planning and exit strategiesLong-term planning and exit strategies are invaluable for real estate investors looking to cultivate financial wellness. Creating a comprehensive investment plan involves setting clear portfolio growth and diversification goals. Consider factors such as market trends, risk tolerance, and investment timelines when developing your strategy. Moreover, establishing exit strategies for each property allows you to adapt to changing market conditions and capitalize on opportunities for profit. Whether you are planning to sell, refinance, or reinvest, having a well-defined exit strategy ensures you can make informed decisions when the time comes. Regularly reviewing and adjusting your long-term plan and exit strategies can also help you stay on track toward achieving your financial goals and building long-term wealth through real estate investments.

Achieve true financial success and stabilityThe impact of moving on your real estate investments underscores the need for strategic decision-making and comprehensive planning. You can navigate this transition with confidence and foresight by delving into market dynamics, evaluating financial implications, and considering long-term goals. Whether seizing new opportunities or adapting to changing circumstances, understanding and mitigating the effects of relocation on real estate investments lets you achieve financial success and stability in the long run!

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By Rhonda Underhill

Starting over in a new city presents challenges and opportunities, especially for senior citizens. It’s a phase that demands resilience but also paves the way for growth and new beginnings.

With thoughtful preparation and a positive mindset, navigating this significant change can lead to a rewarding experience. This guide from the Old Dawg’s REI Network offers strategic advice to ensure a smooth transition, empowering you to establish a vibrant and fulfilling life in your new locale.

Comprehensive Area EvaluationBefore you embark on your journey, it’s crucial to have a deep understanding of your future home. Evaluate the cost of living, healthcare facilities, recreational activities, and the proximity to family and friends.

This groundwork will not only assist in making an informed decision but also in setting realistic expectations. By prioritizing what’s most important, you can find a place that aligns with your lifestyle and needs, ensuring a smoother adjustment to your new surroundings.

Employment ProspectsFor those looking to remain active in the workforce, securing employment beforehand offers financial stability and a sense of purpose. It connects you to the community and provides a routine, making the transition to a new environment less overwhelming.

Investigate job opportunities that cater to your skills and interests, and leverage professional networks to facilitate your job search. This proactive approach can significantly ease your integration into the city’s social and economic fabric.

Support for Lifestyle ChangesTransitioning to a new chapter in life often involves reassessing personal habits, particularly when it comes to alcohol use. For those who have leaned on alcohol as a way to cope, exploring the treatment options available at local rehabilitation centers represents a significant stride toward a healthier existence.

Such a proactive approach bolsters mental and physical health and uplifts the quality of life in your new environment. This commitment to change signifies a powerful dedication to improving well-being as you journey through this fresh phase. If you’re concerned with the costs of seeking treatment, contact your health insurance provider to inquire about your coverage, and look for a facility with free services.

Social IntegrationBuilding a new social network is pivotal for feeling connected and supported. Engage in clubs, groups, or organizations that reflect your interests, be it a book club, a gardening group, or a volunteer project.

These platforms offer opportunities to meet like-minded individuals, fostering friendships and a sense of belonging. This social engagement is vital for emotional well-being, helping you to feel part of the community and reducing feelings of isolation.

Urban ExplorationImmersing yourself in the city’s culture and environment is a delightful way to feel more at home. Take the time to explore different neighborhoods, visit landmarks, and enjoy local cuisine. This exploration acquaints you with the area and allows you to discover new favorites and routines. It’s a fun and engaging way to connect with your new city, turning unfamiliar places into familiar haunts.

Keeping in TouchMaintaining relationships with family and friends is essential during this transition. Regular communication through calls, messages, and visits keeps you grounded and provides emotional support. These connections remind you of the continuity in your life, bridging the gap between your past and present. They play a critical role in your adaptation process, offering encouragement and a listening ear when needed.

Embracing NoveltyBe open to new experiences and adventures the city offers. Whether participating in cultural events, starting a new hobby, or enrolling in classes, these activities enrich your life and expand your horizons. Stepping out of your comfort zone can lead to unexpected joys and learning, making your relocation not just a change of address but a journey of personal growth.

Prioritizing Well-BeingFinally, never underestimate the importance of self-care. Prioritize activities that nurture your physical, emotional, and mental health. Whether through exercise, meditation, or enjoying nature, taking time for yourself is crucial. It ensures you remain energized and balanced, fully embracing and enjoying your new environment.

ConclusionRelocating to a new city in your senior years is a significant milestone that offers a unique blend of challenges and opportunities. By approaching this transition with preparation, openness, and a focus on well-being, you can build a fulfilling life of new experiences and connections.

Remember, this journey is about moving to a new place and rediscovering yourself and what makes you thrive. Embrace the adventure with an open heart, and let your new city be the canvas for your next great chapter.

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By Pauline Cruz

In the highly competitive arena of real estate investment, the critical role of sustaining strong investor relations is indisputable. Real estate funds, in particular, face the unique challenge of balancing investor expectations with the dynamic nature of the property market. The key to navigating this intricate balance lies in expert private equity real estate funds operations, a strategic approach that can provide tailored support to private equity real estate funds throughout their lifecycle. This article explores the importance of this critical component in boosting investor relations and presents several top strategies for optimizing stakeholder engagement and building trust. Let’s dive in.

Key Benefits for Optimized Relations with Real Estate Fund InvestorsFirst, let’s identify just how vital enhanced investor relations are in real estate fund management.

Increased Investor ConfidenceA cornerstone of successful real estate funds is the confidence investors place in them. This confidence is greatly bolstered through effective communication and transparent operations. It cultivates trust when investors are consistently informed about the fund’s performance, strategies, and market insights. And this is critical, as investors get a sense of security and assurance about their investments.

Transparency in operations, especially in how decisions are made and how funds are allocated, further encourages investors to commit for the long term. This results in a more stable capital base for the fund.

Improved Fund PerformanceSatisfied investors are also more inclined to participate in future funding rounds, ensuring a steady flow of capital. This financial stability allows fund managers to focus on optimizing investment values and pursuing growth opportunities without the constant pressure of fundraising.

Enhanced ReputationThe reputation of a real estate fund in the market is a pivotal factor in attracting and retaining investors. Good investor relations play a significant role in shaping this reputation. When existing investors have positive experiences, they become the fund’s advocates, often leading to referrals and new investor interest.

A fund known for its strong investor relations is also perceived as more reliable and trustworthy, which is particularly attractive to potential investors. This enhanced reputation also contributes to the fund’s overall brand strength.

Streamlined Decision-MakingEffective investor relations facilitate streamlined decision-making processes within real estate funds. Clear and consistent communication ensures investors are well-informed about the fund’s strategies, market positions, and potential risks. When investors understand the rationale behind decisions, they are more likely to support them, even during challenging market conditions. This is crucial for agile decision-making, allowing fund managers to quickly adapt strategies to market changes or new opportunities.

More efficient decision-making also leads to better operations, which enables the fund to capitalize on profitable ventures promptly.

Top Strategies for Bolstering Investor RelationsNow, let’s unpack how to ramp up investor relations with these innovative strategies in real estate fund administration:

1. Implementing Advanced Reporting ToolsAdvanced reporting tools can bolster investor relations in real estate funds. These can give the latter real-time access to their investment data, including individual asset performance, fund-level returns, and comparative market analysis. For instance, a dashboard can display live data on rental yields, occupancy rates, and capital appreciation of properties within the fund, helping them manage real estate assets.

Additionally, integrating predictive analytics can offer insights into future market trends so investors can grasp potential investment outcomes. This level of transparency and accessibility to information empowers stakeholders to make informed decisions, fostering a deeper trust in the fund’s management.

1. Regular and Transparent CommunicationMaintaining a consistent and transparent communication strategy is equally vital. This involves setting a regular schedule for updates, either monthly or quarterly, to keep investors informed about the fund’s performance, upcoming projects, and any significant market developments. Communication should be holistic, highlighting both successes and challenges. For instance, in a challenging market phase, explain the impact on investments and the strategies in place to mitigate risks. Utilizing various channels like email newsletters, web portals, and virtual meetings can ensure that this communication is accessible and engaging.

2. Personalized Investor ExperiencesRecognizing and catering to the investors’ diverse needs is essential. This can be achieved by offering personalized communication and services. For instance, some investors may prefer detailed analytical reports, while others might appreciate a summarized overview. Personalization can also extend to acknowledging significant milestones like anniversaries of their investment with the fund. Tailoring interactions and services enhance investor satisfaction and build a stronger, more personal connection with the fund.

3. Educational InitiativesEducating investors is a strategic way to enhance fund engagement and confidence. This is possible through regular webinars, informative newsletters, and comprehensive reports on market dynamics, investment strategies, and the fund’s unique approach.

4. Proactive Issue ResolutionAddressing concerns and issues promptly and efficiently demonstrates a commitment to investor satisfaction. Have a system to quickly identify and handle investor queries or complaints, such as a dedicated investor relations team.

5. Investor Feedback MechanismsEstablishing channels for investors to provide feedback and suggestions is a powerful way to engage them actively. This could be through surveys, suggestion boxes, or interactive Q&A sessions during investor meetings. This communication channel can further improve investor relations by making investors feel heard and valued.

Parting NotesReal estate funds stand out through exceptional investor relations. These go beyond administrative skills, forging trust, transparency, and mutual respect. In the competitive real estate sector, embracing these principles enhances investor relationships, securing stability and success for your fund. As the real estate market changes, strong investor relations don’t just support growth – they are the driving force behind enduring success, ensuring mutual prosperity for both your fund and its investors.

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By Amelia Lopez Preparing for the future is an aspect that many working people think about all the time. The motivation to work hard often comes from wanting to improve one’s future — a future where living comfortably in retirement and ensuring the family is cared for is the reality. It is likely that, when you receive your paycheck, generated from a pay stub maker, you, too, might consider investing your surplus income in a...

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By Mary Aspen Richardson Alt-text: by talking to a real estate agent, you can elevate your retirement like this senior couple Planning for retirement is a journey, not a destination. As you embark on this path, consider the power of real estate. It’s not just about owning a home; it’s about leveraging property to elevate your retirement. Let’s delve into the unique advantages real estate offers for long-term wealth. As we navigate...

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By Rhonda Underhill Becoming a commercial real estate developer can be an exciting and lucrative career opportunity. However, it also requires extensive knowledge of construction, project management, and financing. Whether you are a seasoned investor or a newcomer to the industry, the key to success lies in education, careful planning, attention to detail, and a willingness to adapt. In this article shared by Old Dawg’s REI Network, we will explore what it...

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By Amelia Lopez Investing opportunities are everywhere, and countless promise great returns. The most profitable investments among them are houses and apartment units for rent. Real estates are tangible investments that can provide a more predictable cash flow than stock and cryptocurrency. Below are some reasons to choose real estate and a guild of expanding property investments. Is real estate investing a good idea? Real estate investment offers buyers several potential benefits,...

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By Mary Aspen Richardson If you’re unsure where to source your funding, we have a potential option for you! So, let’s go over a beginner’s guide to real estate crowdfunding. Understanding real estate crowdfunding platforms Before we get started on the details of our guide to real estate crowdfunding, we must understand the platforms involved. The platforms play a crucial role in reshaping how investors approach commercial real estate opportunities. So, understanding...

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By Emily John As a real estate professional, its important to know your options, know how much you can afford and be prepared to walk away from the deal if necessary. Keep reading for more tips on how to successfully negotiate with your seller or lender during the home-buying process. Understand the role of negotiation in real estate. Negotiation is a key part of the real estate process. It’s a skill that...

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Real estate has always been considered a sound investment, and in today’s economic climate, it’s a profitable avenue for seniors who prioritize security. The beauty of investing in real estate is its flexibility, offering multiple strategies that can be tailored to your risk tolerance and goals. For risk-averse seniors, the aim is to maximize safety and stability while still enjoying a healthy return on investment. In 2023, the real estate market is...

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By Qasim Ashfaq Introduction When you’re selling your home, it’s important to make sure that it looks inviting and appealing to potential buyers. But if you have valuables in your home and don’t want them to be stolen, how do you keep them safe as they’re being shown? In this article I’ll explain some tips for storing your valuables when selling a home. Make a list of valuables. As you begin to prepare...

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By Mary Aspen Richardson Navigating the realm of real estate investing as a passive investor can be a smart and lucrative decision. Whether you’re a seasoned investor or just starting, this guide will provide valuable tips to help you make informed decisions and maximize your returns. As a passive investor, you can enjoy the benefits of real estate ownership without the day-to-day responsibilities. In this article, we’ll explore the essentials of passive...

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by Aliza Zulfiquar Your retirement is meant to be filled with relaxation and enjoyment, but for most seniors, financial worries cast a shadow over this golden stage of life. Property taxes, rising housing costs, and utility bills are examples of limited financial freedom. Retirees are starting to understand the importance of downsizing to smaller homes to reap numerous economic benefits. They are thus implementing this change of lifestyle for an improved quality...

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By Ronda Underhill Attracting high-quality tenants can be a challenge for landlords, especially in today’s competitive rental market. To stand out from the crowd and appeal to prospective tenants, it’s crucial to make your rental property as attractive as possible. In this article from The Old Dawg’s REI Network, we’ll discuss several effective strategies you can implement to make your rental property more appealing to renters. Make Energy-Efficient Upgrades One of the...

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By Laura Watson

A commercial investment should produce a return of capital. You should have an understanding of the basic tenants of the investment you are considering. You should know the cost basis of your investment. Any potential income from your business investments is expected to be taxed as ordinary income in the year earned, regardless of whether or not it is distributed to you. Do not take on too much risk at one time and don’t spread yourself too thin by investing in too many companies at once

A commercial investment should produce a return of capital.What is the cost basis of your investment?

This is a term that refers to the original purchase price of an asset, including any expenses associated with buying it (such as commissions). If you sell an investment for more than its original cost, then you have a capital gain. If you sell it for less than its original cost, then you have a capital loss.

You should have an understanding of the basic tenants of the investment you are considering.The first principle you should follow is to have an understanding of the basic tenants of the investment you are considering. To do this, it’s important to know what you are investing in, how much risk is involved and what potential return on your investment could be. The last thing you want to do is invest without knowing what could happen if something goes wrong. You can also invest with construction companies which deal with commercial construction.

Getting familiar with these three elements will help protect yourself from making poor decisions down the line, which could ultimately lead to losing money or even losing everything altogether!

You should know the cost basis of your investment.It is important to know the cost basis of your investment. When you buy a share of company stock, for example, your broker should provide you with its cost basis. This information will allow you to calculate how much profit or loss was made on the sale when it comes time to sell that stock.

This number is different from what’s known as “tax basis” because it includes additional costs such as commissions paid when purchasing shares or other investments. Tax basis only includes original purchase price plus any capital gains taxes paid on previous sales of securities over time (if applicable). Here’s an example:

• You bought 100 shares at $10 each ($1000 total) in 2010 after paying $50 commission per transaction; thus making up half their current value today ($200). You’ve also sold some shares along the way but didn’t pay any taxes since they were considered long-term gains; now those same 100 shares have grown into 200 shares worth $40 each ($8000 total). Your current holdings would be valued at around $14000 dollars but if we used only tax basis then this would only reflect half those profits due because there wasn’t anything else added after buying them originally!

Any potential income from your business investments is expected to be taxed as ordinary income in the year earned, regardless of whether or not it is distributed to you.Any potential income from your business investments is expected to be taxed as ordinary income in the year earned, regardless of whether or not it is distributed to you. For example, if you own a business and receive cash dividends from that business, they are subject to taxation at ordinary income tax rates.

You may also be able to deduct expenses (e.g., depreciation) from your business’ earnings before calculating taxes on them. These deductions reduce the amount of taxable income for a given period; however, there are limits on how much can be deducted depending on what type of business entity you operate through (i.e., sole proprietorship vs C Corp).

The bottom line: Any potential income from your investments will likely be taxed as ordinary income in its respective year–and this includes any distributions received from companies owned by REITs or master limited partnerships (MLPs).

Do not take on too much risk at one time and don’t spread yourself too thin by investing in too many companies at once.* Risk is the chance of losing money. * The amount of risk you take is measured by volatility, which is the degree to which a security’s value fluctuates over time. * The greater the volatility, the higher your chances are of losing money. * So if you spread yourself too thin, then there may not be enough time for recovery if one company goes bankrupt and takes all your investment with it

What is a commercial investment?A commercial investment is an investment in a business. It can be in the form of equity or debt, but it’s not a personal investment, as you would make with your own money and time. Rather, it’s an investment in a company that makes money and pays you back with interest over time.

What does this mean for you? It means that when you buy stock in a company or lend them money through some other type of loan agreement (like bonds), they’ll pay back your principal plus interest on schedule–and hopefully sooner than later!

What are the principles of commercial investment?The first principle of commercial investment is that you need to have an understanding of the basic tenants of the investment you are considering. The more you know about an industry, the better equipped you will be to make sound decisions and avoid costly mistakes.

It’s also important to understand your cost basis in any given property or business. Your cost basis refers back to when and how much money was put into something by way of purchasing shares or other assets like land or buildings. If there was a trade-in involved at some point along with interest rates being paid on loans taken out during those transactions, then all these factors should be taken into account when calculating how much profit (or loss) could potentially result from selling off those same assets today after having held onto them for some time now since originally purchasing them from someone else who may have been willing).

Equity Investment PrinciplesEquity investment is when you buy a share of the company. It’s also called equity financing, or simply “equity.”

When you invest in equity, you’re buying stock in a company. There are two types of stocks: common and preferred. Common stock gives its owner voting rights and partial ownership of all assets; preferred doesn’t come with voting rights but does pay dividends at regular intervals (e.g., quarterly). You can purchase these via online brokers like Fidelity Investments or Charles Schwab–but keep in mind that if your goal is passive income from your investments, then it might be better to look elsewhere for this type of investment opportunity (more on that later).

Debt Investment Principles* Debt investments are typically safer than equity investments. * Debt investments are less risky than equity investments. * Debt investment principles tend to be more predictable than those of equity investors, who can sometimes make poor decisions and lose money on their investment.

You need to know the principles of investment before investing in any business.Investing is a risky business which requires you to understand the principles of investment before investing in any business. You should invest in a business only if you understand the business and its prospects.

Learn how to invest wisely before jumping into it with both feet.Before you jump into investing with both feet, it’s important to understand the principles of investing. The risks involved in investing should also be clear to you. You need to know how much money can be lost or made and what kinds of investments are available for your portfolio. In addition, it’s vital that investors learn about different asset classes (such as stocks, bonds and real estate) as well as types of businesses (such as startups).

ConclusionWe hope that you have gained a basic understanding of how to invest wisely and what principles to follow when doing so. If you’re still unsure about anything, don’t hesitate to reach out! We are always here to help our readers understand what it means to be an investor and make smart decisions with their money.

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By Amelia Lopez

IntroductionReal estate investment is an exciting and lucrative business that has sparked the interest of investors worldwide. The earning of the best realtors in Berkeley, California is handsome enough to make anyone take up this profession. Despite its potential for success, some people have lost money in real estate ventures, primarily because they made common investing mistakes. In this article, we shall explore the most substantial investment errors investors make and find ways to avoid them.

8 Biggest Mistakes Real Estate Investors Make1. Not Doing Proper ResearchInvesting without performing due diligence on the market and properties is a recipe for disaster. Not collecting the required knowledge about the property owners, the competition, the local economy, the demand for rental property, etc., shows a lack of consideration. It is essential to do thorough research by hiring professionals or yourself and gathering precise and relevant data. You should investigate the property’s location, demographic and economic factors that influence the neighborhood, and the property’s history, among other factors. If possible, go and see the property yourself to avoid a costly mistake.

1. Paying Extra for the PropertyOne of the gravest mistakes in real estate investment is to pay above the market price for a property. Overestimating the prospective income or aiming for an ambitious property acquisition can lead to losses in the short and long term. Look at comparable homes in the same neighborhood to determine the worth of a property. Consult with market professionals, such as agents, appraisers, and other investors, to know the correct range of prices and evaluate the return on investment. Overestimating the value of a property could limit recovery from losses in rents, appreciation, or resale values.

2. Under-Evaluating ExpensesSome investors underestimate the total cost of ownership in real estate. You need to mind all the expenses, such as building maintenance, property insurance, property management, taxes, utilities, and mortgage and interest payments. Failing to account for these expenses in making investment decisions is a serious offense that could jeopardize investing success. Analyzing the net operating income can expose the risks and returns of buying real estate assets.

3. Not Making a Solid Business PlanReal estate investment needs discipline and planning. Set goals, develop a strategy, and prepare a plan with a viable risk management system. Investors should consider all aspects of the business plan concerning property investment, such as the type of property, financing, marketing strategy, owner vs. rental operated, projected income/expense estimates, market trends, potential issues, and full feedback mechanisms. A comprehensive business strategy clearly outlines essential stages of investing decisions, actions, and contingencies, allowing better judgment calls and predictions of future trends.

4. Over-LeveragingIt is not wise to take on too much debt to buy real estate, even if it seems like a guaranteed source of a successful venture. Over-leveraging yourself can. Damaging your finances and personal life may limit your opportunities. Investors need to recognize and balance the cash flow requirements from the real estate portfolio, including debt service coverage, as part of overall management. Don’t stop working through solid investments within an affordable range while keeping reserve capital for emergencies or business expansion requirements.

5. Making Emotional DecisionsBeing impulsive with the purchase, sale, or keeping of an asset, based on personal feelings rather than rational analysis can lead to costly decisions. Fear, greed, and wishful thinking can derail well-established investment criteria and responsibilities. In contrast, if investors adhere to an objective outlook, deal with facts head-on, and predict market and social forces, they can avoid making decisions based on sentiments.

6. Not Crediting NetworkingEveryone in real estate has a network, and who you know is essential. Private money lending groups, real estate agents, brokers, repair contractors, tax advisors, estate lawyers, and dealmakers are critical factors in finding a great deal, selling, flipping, leasing, and financing. Once connected with the right crowd of investors, buyers, or sellers, you can reduce the chances of slipping into an unfortunate real estate trap.

7. Not Paying Attention to MaintenanceThe cost of property maintenance can put off investors who choose not to maintain the building to save money. Sometimes, landlords neglect minor repairs. They tend not to spend money on significant repairs, such as roof and electrical harm, if they don’t see them as worth their while or do the work themselves improperly. Inadequate maintenance implies taking life risks and cutting short the insurance policy without making adjustments or upgrading features. Investors need to attend to property issues diligently and react fast and prevent possible further losses.

ConclusionReal estate is a financially rewarding investment that requires time, effort, research, and planning. Investing in real estate necessitates financial management, operational thinking, and leveraging open communication. Many real estate investing mistakes can be fatal, and avoiding them is more powerful than considering the profits. Every investor must avoid risky business strategies based on anger, emotional yearnings, and peripheral pressure. By understanding the significance of minimizing risk and nurturing professional networks, Real estate investors can benefit and grow financially.

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By Mary Aspen Richardson

As we approach retirement, many of us look for ways to generate additional income and ensure our financial security. One option that has gained popularity in recent years, and which we frequently discuss in our podcasts, is real estate investing. However, as with any investment, there are risks involved. That’s why it’s critical to do your due diligence in real estate investing, especially if you’re over 50.

What is due diligence in real estate investing, you may ask? In simple terms, it’s the process of thoroughly researching and evaluating a potential investment before making a purchase. Today, we will look at how to research real estate opportunities before committing and provide practical tips on how to do it effectively.

Conducting thorough researchOne of the first steps in due diligence in real estate investing is conducting thorough research. This includes researching the local real estate market, understanding the property’s history and potential issues, analyzing comparable properties to determine fair value, and researching the financial and legal status of the property.

Researching the local real estate market involves understanding the current state of the market, such as trends in property values, supply and demand, and rental rates. This information can help you determine if it’s a good time to invest and what type of property will likely generate the best return.

Understanding the property’s history and potential issues is critical to avoid costly surprises down the road. This includes researching any previous sales, liens, or title issues, as well as inspecting the property for any physical defects or maintenance issues.

Analyzing comparable properties is important to determine the fair market value of the property you’re considering. This involves comparing the property to similar properties in the area that have recently sold or are currently on the market. Doing this lets you determine if the property is priced fairly and if there’s room for negotiation.

Researching the financial and legal status of the property is crucial to avoid any potential legal or financial issues. This research includes reviewing any existing leases, property tax records, and zoning regulations. Additionally, it’s important to ensure that the property is free from any legal or financial encumbrances that could affect your ownership or use of the property. If you need helpful resources for your research, you can check out our website for additional advice.

Caption: Carefully examine any property before you invest.
Alt-tag: Person viewing a building through a magnifying glass.

Investing in real estate in New JerseyWhen it comes to real estate investing in New Jersey, several areas stand out as great options. One of the most popular areas for real estate investment is Bergen County, known for its affluent neighborhoods, excellent school systems, and proximity to New York City. Another popular location is Morris County, which boasts a strong job market, low crime rates, and excellent amenities. Middlesex County is another great option, with its diverse population and thriving economy.

Additionally, Mercer County, Monmouth County, and Somerset County all offer unique advantages for real estate investors, such as strong rental markets and growing populations. For those interested in waterfront property, Hudson County has many advantages, and it represents one of the best places to invest in real estate in Hudson County, NJ, due to its location, diverse population, and growing economy. Jersey City, the seat of Hudson County, is a bustling urban center with a thriving arts and culture scene, making it an attractive location for young professionals and families. Ultimately, the best place to invest in real estate in New Jersey will depend on individual goals and preferences, but these areas are worth considering.

Caption: New Jersey has plenty of interesting investment opportunities.
Alt-tag: Image of Hudson River Waterfront in New Jersey.

Evaluating the investment opportunityOnce you’ve conducted your research, the next step in due diligence in real estate investing is evaluating the investment opportunity. This involves identifying the property’s potential for appreciation and cash flow, determining the best investment strategy based on individual goals and risk tolerance, analyzing the costs associated with owning the property and considering the impact of taxes and financing options.

Identifying the property’s potential for appreciation and cash flow is critical to determine if the investment is likely to generate a positive return. This involves analyzing the local market and economic conditions, as well as the potential for rental income and property appreciation over time.

Determining the best investment strategy based on individual goals and risk tolerance can ensure that you’re investing in a way that aligns with your personal financial objectives. For example, if you’re looking for a steady income, investing in a rental property may be a good option. On the other hand, if you’re looking for long-term appreciation, investing in a property with a strong potential for growth may be more suitable.

Analyzing the costs associated with owning the property is important to ensure that you’re aware of all expenses and can factor them into your investment decision. This includes property taxes, insurance, maintenance costs, and any fees associated with property management.

Considering the impact of taxes and financing options will let you maximize your return on investment. This includes understanding the tax implications of owning a rental property, as well as exploring financing options that can minimize your costs and maximize your potential returns.

Caption: As with any type of investment, there will always be risks.
Alt-tag: A person counting money next to a piggy bank.

Assessing the risks of real estate investingAnother important aspect of due diligence in real estate investing is assessing the risks involved. This includes understanding the risks associated with the property, such as potential maintenance issues or structural problems, as well as risks associated with the local real estate market, such as changes in property values or rental rates.

It’s also important to consider the risks associated with owning a rental property, such as tenant turnover, non-payment of rent, and potential legal disputes with tenants. To mitigate these risks, you should have a solid plan in place for managing the property, such as hiring a reputable property management company, conducting thorough tenant screening, and having adequate insurance coverage. Consider asking others who have experience in real estate investment for advice.

In addition to assessing the risks, try to have an exit strategy in place in case the investment doesn’t go as planned. This may involve selling the property, refinancing the property, or finding alternative ways to generate income from the property.

ConclusionIn summary, due diligence in real estate investing is critical, especially for those over 50 who are looking for ways to generate additional income and secure their financial future. Conducting thorough research, evaluating the investment opportunity, and assessing the risks involved are all important steps in the due diligence process.

By taking the time to do your due diligence, you can minimize the risks and maximize the potential returns of your real estate investment. Remember to be patient, take your time, and seek professional advice if needed. So, whether you’re considering investing in a rental property or buying a property to flip, always remember the importance of due diligence in real estate investing. It could mean the difference between a successful investment and a costly mistake.

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By Amelia Lopez

IntroductionAre you tired of living in cramped apartments with skyrocketing rent and no sense of community? Co-living regions in high-rise apartments in Korea can be the response you’re searching for. Co-living is a state-of-the-art new shared living style with moderation, accommodation, and an incorporated local area. With its contemporary offices, good sites, and stunning vistas, elevated structures make the best climate for co-living spaces.

This development is changing the housing market and is particularly interesting to youthful experts and understudies searching for a better approach to life. This article analyzes the effect of co-living spaces in skyscraper designs and how things modify how we view public living.

How Co-Living Spaces in Tall Structures Have ChangedElevated structure co-living spaces have been created over the long haul to address the issues of twenty to thirty-year-olds and Age Z. They furnish flexible and prudent lodging arrangements with a solid accentuation on area living.

These locales are developing an ever-increasing number of popular in metropolitan regions, changing the substance of traditional land. With an end goal to tempt inhabitants, engineers and business visionaries are entering the market with a decision of plan and convenience choices.

Co-living spaces have a bright future, with room for industry expansion and advancement.

The Advantages of Co-Living for Gen Z and MillennialsCo-living spaces have become popular among millennials and Generation Z because they give several advantages that traditional living arrangements might not.

• Affordability and Flexibility: Co-living spaces offer affordable living options, often with flexible lease agreements, allowing renters to avoid the long-term commitments of traditional leases.
• Community Living: Co-living spaces prioritize community living, offering shared spaces and events that foster social interaction and a sense of belonging.
• Design and Amenities: Co-living spaces often have modern and stylish designs, focusing on amenities that enhance the living experience, such as fitness centers and rooftop lounges.
• Location: Urban regions with easy access to transit, entertainment, and job prospects are where co-living places are frequently found.

The Impact of Co-Living on the Real Estate MarketCo-living spaces are changing the real estate market as investors and developers see the advantages of this type of accommodation.

• Expanded Need: The development of co-living spaces has been prodded by the expanded requirement for adaptable and reasonable lodging choices.
• New Plans of Action: With an emphasis on local area improvement and giving shared conveniences, co-living has led to new plans of action for engineers, financial backers, and property chiefs.
• Particular Spaces: Co-living offices offer flexible living game plans that can be changed to suit occupants’ requirements, from brief visits to extended leases.
• Influence on Customary Land: Because of the rising prevalence of co-living, customary land has been affected, driving property managers and property chiefs to change by occupants’ moving requirements.

An Inside Look at Co-Living Spaces: FeaturesCo-living spaces offer more than simply communal living areas; they also have distinctive designs and amenities tailored to users’ demands.

• Modular Living Areas: Co-living facilities frequently have variable living arrangements, such as micro-apartments, individual rooms, and shared spaces.
• Local Area Spaces: People group spaces, which incorporate shared living quarters, kitchens, and in any event, cooperating spaces, are a fundamental part of co-lodging.
• Innovation-Empowered Spaces: Co-residing networks use innovation to work on the existences of their inhabitants by giving accommodations like robotized registrations and brilliant home frameworks.
• Social Conveniences: Co-living spaces offer social conveniences that advance local area and prosperity, for example, housetop gardens, yoga studios, and, surprisingly, on-location treatment meetings.

The Rise of Co-living Startups: A Booming IndustryHere are some ways in which co-living startups are revolutionizing the real estate industry:

• Offering flexible and affordable housing solutions for millennials and Gen Z who prefer experiences over ownership.
• Creating shared living spaces that encourage community building and social interactions among residents.
• Making it more straightforward for people to find and move into co-living spaces by streamlining the booking and administration process with technology.
• Collaborating with investors and property owners to broaden their co-living options and attract more clients.
• Including sustainability and wellness elements in their buildings, such as green areas, fitness centers, and wholesome food selections, to appeal to customers who are concerned about the environment and their health.

Traditional Living vs. Co-Living Spaces: Which is Better?Although Gen Z and millennials are increasingly interested in co-living spaces, is it superior to traditional living? Let’s take a closer look.

• Cost: Co-living spaces can be cheaper than traditional living options, especially in urban areas with high rents.
• Social Life: Co-living spaces offer a built-in community, making meeting new people easier and building friendships. Socializing in a traditional setting could be more difficult.
• Privacy: Traditional living areas offer more privacy than co-living settings. Co-living arrangements, however, frequently combine private bedrooms with communal living areas, allowing for a balance between solitude and socialization.
• Flexibility: Unlike co-living places, where leases and move-in/move-out dates are more flexible, traditional living alternatives typically require a long-term commitment.

Addressing Issues in Co-Living Spaces: Privacy and CommunityCo-living places have been more well-liked in recent years as a practical and cheap housing choice for many individuals. Sharing living quarters with others does present some difficulties, though, just like any other living situation. Following are some typical issues that co-living spaces encounter and some solutions to them:

• Finding a balance between community and privacy is one of the co-living environments’ most challenging concerns.
• While some might find it awkward to live with strangers, others yearn for the camaraderie that co-living offers.
• Co-living facilities must balance communal and private spaces to meet this challenge.
• To guarantee that everybody’s necessities and assumptions are met, it is additionally essential to set clear standards and rules for local area living.
• Keeping a culture of shared regard and thought for each other’s security and individual space in a co-living climate is another issue.
• Co-living networks can take on local area-building exercises and advance open correspondence among inhabitants to battle this.

The Future of Co-living Spaces: Trends and PredictionsAs urbanization and the sharing economy grow, co-living spaces become increasingly popular. Here are some trends and predictions for the future of this industry:

• Tech integration will become more prevalent, allowing residents to easily manage their living arrangements through apps and other digital platforms.
• Sustainability and eco-friendliness will be emphasized, with features like renewable energy sources and green spaces becoming standard.
• Co-living spaces will become more specialized to cater to specific demographics, such as seniors or families with children.
• The global epidemic has brought attention to the value of health and safety, prompting improved hygienic precautions and the adoption of touchless technology.

ConclusionHigh-rise co-living places are becoming more popular, providing a fresh take on communal living. Co-living is growing in popularity among city inhabitants because of its affordability, convenience, and community advantages. As the idea spreads, future co-living places are likely to be even more creative and environmentally friendly. Co-living spaces in high-rise buildings have a bright future, evidence of how modern society’s demands and preferences are evolving.

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Real estate investing can be a lucrative way to build wealth, and there are many ways to invest in real estate.

This article explores the various types of real estate investing strategies, including residential, commercial, industrial, mixed-use, REITs, real estate development, and flipping, and the unique benefits and challenges that each presents.

Whether you’re a seasoned real estate investor or just starting out, understanding the nuances of different types of real estate investments can help you make informed decisions and maximize your returns.

All About Residential real estate (including Benefits and Challenges)Residential real estate involves buying, owning, and renting out properties that are used for residential purposes, such as single-family homes, apartments, and condominiums. This also covers single-family and multi-family investments.

Difference between Single-Family and Multi-Family InvestmentSingle-family and multi-family properties are both popular types of real estate investments, each with its own advantages and disadvantages. Here are some key differences between the two:

Investment costGenerally, single-family homes are less expensive to purchase than multi-family properties. This means that investors may be able to acquire multiple single-family properties for the same cost as one multi-family property.

Tenant turnoverMulti-family properties tend to have higher tenant turnover rates than single-family homes. This means that investors may have to spend more time and money on finding new tenants and preparing units for new renters.

Rental incomeMulti-family is more defined to be rental properties because there are more units to rent out. However, if a single-family home is located in a desirable area or has unique features that attract high-paying renters, it may generate more rental income than a multi-family property.

Property managementManaging a multi-family property can be more complex than managing a single-family home because there are more tenants and units to manage. This can require more time, effort, and expertise on the part of the investor or property manager.

Resale valueMulti-family properties can be more attractive to institutional buyers, such as real estate investment trusts (REITs) or pension funds, which can drive up the resale value. Single-family homes may be more attractive to individual buyers, but they may not have as much appeal to large-scale investors.

Ultimately, whether to invest in single-family or multi-family properties depends on the individual investor’s goals, resources, and preferences. Both types of properties can be profitable, and many investors choose to diversify their portfolios with a mix of both.

Benefits and Challenges of Single-family InvestmentsSingle-family homes are a popular type of real estate investment, particularly for individual investors. Benefits of this investment include affordability, attractiveness to renters, flexibility, appreciation potential, and tax benefits.

Single-family Investment BenefitsSingle-family homes are generally more affordable than multi-family or commercial properties, making them accessible to a wider range of investors. Additionally, single-family homes can be particularly attractive to renters who want more space, privacy, and control than they might have in an apartment or multi-family unit.

In terms of flexibility, single-family homes can be used for a variety of purposes, including long-term rentals, short-term rentals (such as vacation rentals), and owner-occupancy. This gives investors a great deal of flexibility in terms of how they use the property. You may check best practices for vacation rental investors if you are particularly into that kind of investment.

Furthermore, single-family homes can appreciate in value over time, providing a potential source of long-term wealth for investors. Real estate investments, including single-family homes, also offer several tax benefits, such as deductions for property taxes, mortgage interest, and depreciation.

Single-family Investment Challenges On the other hand, this investment faces challenges such as maintenance and repairs, vacancies, limited income potential, location, and financing challenges.

As the sole owner of the property, investors are responsible for all maintenance and repair costs, which can be expensive and time-consuming. In addition, single-family homes can be subject to longer vacancies, particularly if they are located in less desirable areas or have high rental turnover rates.

Moreover, because single-family homes have only one unit, the income potential is limited compared to multi-family or commercial properties.

The location of a single-family home can also greatly impact its desirability and rental potential, and investors may have limited options in terms of where they can invest due to affordability or availability.

Ultimately, obtaining financing for a single-family home can be more difficult than for multi-family or commercial properties, particularly for new or inexperienced investors.

In summary, single-family homes can offer several benefits to investors but also come with their own set of challenges. It’s important for investors to carefully consider their goals, resources, and risk tolerance before making any investment decisions.

Benefits and Challenges of Multi-family InvestmentsMulti-family properties, such as apartment buildings, offer a unique set of benefits and challenges for real estate investors. Here are some of the key benefits and challenges of multi-family investments:

Multi-family Investment BenefitsFirst benefit on the list is that multi-family properties can benefit from economies of scale, such as lower maintenance costs per unit and reduced marketing costs per vacancy. Additionally, they can provide a steady stream of rental income, which can help investors build wealth over time.

Furthermore, Investing in multi-family properties can provide diversification for real estate portfolios, as well as a hedge against vacancies and downturns in specific markets.

Professional management is another benefit. Multi-family properties often require professional property management, which can free up time for investors and ensure that the property is well-maintained.

Moreover, like other types of real estate, multi-family properties can appreciate in value over time, providing investors with a potential source of long-term wealth.

Multi-family Investment ChallengesUpfront costs are one primary challenge of multi-family properties as they can be expensive to purchase, particularly in desirable areas with high demand. Aside from that, these properties also often have higher tenant turnover rates than single-family homes, which can increase management costs and reduce cash flow.

Multi-family properties are also subject to a range of regulations and zoning laws, which can vary from city to city and state to state. In addition, its management can be more complex than managing a single-family home, particularly if the property has multiple units or is located in a different state or region.

Ultimately, it can be affected by market volatility, particularly in areas with oversupply or shifts in demand.

In summary, multi-family properties offer several benefits to investors but also come with their own set of challenges. It’s important for investors to carefully evaluate these factors before investing in multi-family properties to ensure that they align with their investment goals and risk tolerance.

All About Commercial Real Estate (Including Benefits and Challenges)This type of investment involves buying, owning, and renting out properties that are used for commercial purposes, such as office buildings, retail spaces, and warehouses. Explained below are its benefits and challenges.

Commercial Investment BenefitsCommercial properties can offer higher income potential than residential properties, particularly in high-demand areas. In addition, oftentimes, they sign longer leases than residential tenants, providing a more stable income stream for investors.

Moreover, similar to residential investments, commercial properties often require professional property management, which can free up time for investors and ensure that the property is well-maintained.

Like other types of real estate, commercial properties can also appreciate in value over time, and diversification is possible.

Commercial Investment ChallengesSimilar again to residential properties, commercial ones can be expensive to purchase, particularly in desirable areas with high demand. Furthermore, while commercial leases tend to be longer, tenant turnover rates can still be higher than in residential properties.

Commercial properties can also be affected by market volatility, particularly in areas with oversupply or shifts in demand. They are also subject to a range of regulations and zoning laws, which can vary from city to city and state to state.

Finally, commercial tenants can be at risk of bankruptcy or financial difficulties, which can impact rental income for investors.

Other Types of Real Estate (Including Benefits and Challenges)Other real estate investment types are industrial, multi-use, real estate development, and flipping.

Industrial Real EstateIndustrial real estate involves buying, owning, and renting out properties that are used for industrial purposes, such as factories, manufacturing plants, and distribution centers.

Its benefits include high-income potential, long-term leases, diversification, strong demand, and low tenant turnover. However, you have to be prepared for high upfront costs, limited financing options, tenant risk, regulatory challenges, and specialized property management.

Multi-use Real EstateMulti-use involves buying, owning, and renting out properties that combine residential, commercial, and/or industrial uses. Examples include live-work spaces, urban infill projects, and mixed-use developments.

With this investment, you shall enjoy diversification, higher rental yields, increased demand, appreciation potential, and flexibility. However, balancing these advantages are management complexity, regulatory challenges, higher upfront costs, tenant risk, and market volatility

Real Estate Investment Trusts (REITS)REITs refer to the act of buying shares in companies that own, manage, and/or finance income-generating real estate. REITs can invest in any of the above types of real estate.

Similar to the previous type, REITs offer diversification, professional management, liquidity, access to larger properties, and income potential. However, as an investor, you may experience limited control, market volatility, fees, limited upside potential, and regulatory challenges.

Real Estate DevelopmentReal estate development, on the other hand, pertains to buying land, developing it into a property, and selling or leasing the property for a profit. This can include residential, commercial, or industrial development.

With development, there’s a potential for high returns, control over the project, creation of new assets. However, there is also a high risk, high upfront costs, long project timelines, regulatory challenges, construction, and execution risks.

Real Estate FlippingFinally, flipping involves buying a property, renovating or improving it, and quickly selling it for a profit. It gives investors the potential for quick profits, control over the project, ability to improve properties. However, it is also high risk, has high upfront costs, and is subject to market volatility, construction and execution risks, and legal and tax implications.

The BottomlineUnderstanding the advantages and disadvantages of real estate investing for beginners or experienced ones is crucial to making informed investment decisions.

Take the time to read and learn about the benefits and challenges of each type of investment, and make the best decision for your financial goals, including the effective marketing techniques for real estate.

Start your real estate investment journey now with the help of Cashflow Notepad.

About Our Guest Author: The Cashflow Notepad and Huy NguyenCashflownotepad is a financial blog that provides practical advice and actionable strategies on personal finance, investing, and entrepreneurship. The website aims to help people achieve financial freedom and build wealth through informative articles, tutorials, podcasts, and e-books. The blog is run by a team of financial experts, including Huy Nguyen.

Huy Nguyen is a financial coach, real estate investor, and entrepreneur who has over a decade of experience in the financial industry. Huy’s expertise in personal finance, investing, and entrepreneurship has helped him build a strong following on social media, and he is widely recognized as an authority in the financial industry.

He specializes in helping people create passive income streams through real estate investing, stocks, and businesses. Huy’s coaching and consulting services are designed to be personalized, practical, and effective, providing clients with actionable strategies to help them achieve their financial goals. He has helped numerous clients achieve financial success through his coaching and consulting services.

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By Mary Aspen Richardson

While buying real estate can be lucrative, doing it alone can be risky and time-consuming. Property proprietors can reap the rewards from joint ventures, leasing, and professional management in several ways. To thrive in such a cutthroat environment, one must also be crafty. Although a degree may be helpful for some real estate investors, it is not always necessary to succeed in the business. There are commonalities among the most successful property proprietors that cannot be taught in a classroom, which can help with real estate investment strategies for long-term success.

Things to Do for Long-Term SuccessAs mentioned, real estate investment can be a profitable long-term strategy, but success depends on careful planning and execution. Therefore, here are some strategies to consider when embarking on this adventure.

Formulate a planReal estate owners need to take a business-like strategy to their operations if they want to set and reach both short- and long-term goals. Making a company plan can help you avoid getting distracted by trivial issues and instead concentrate on your most pressing goals and strategies. You can even leverage technology to streamline your real estate investment and make your plan much smoother.

Purchasing real estate is a long and involved process, so having a plan can help owners remain organized and on track. The plan would outline how much money you expect to make and lose from rents, how many units you want to own when you want to renovate or update the units, how the population is expected to change, and anything else that could have an impact on your company.

Know the marketSuccessful property investors study their selected fields in great detail, whether residential or commercial real estate. Real estate owners who stay abreast of trends in areas like client spending habits, interest rates, and unemployment can better anticipate future developments and adapt accordingly. They can then predict when these trends will change, providing opportunities for astute traders. And if you are moving from LA to SF for better real estate locations. Be sure to find a suitable team to help you with the move and may have some info on good nearby locations.

Be HonestIn most jurisdictions, landlords are not obligated to adhere to any sort of code of behavior. Taking advantage of the situation would be easy, but the most successful property proprietors always act ethically. The idea of a homeowner is commonly held because real estate transactions involve individuals. The most astute property proprietors know it’s better to play fair than to check their limits. This is your chance to ditch the 9 to 5 job with real estate investment. You just need to start small and be honest. In today’s market, you are sure to grow.

Develop a NicheIf buyers want to gather the necessary data, they must settle on a course of action. Putting in the effort to learn as much as possible about a topic is essential to succeed in the long run. Once a dealer has mastered one market, they can use that expertise in similar contexts in other parts of the world. Luxury residential, affordable housing complexes, and rural revitalization projects are all instances of market niches.

Encourage ReferralsInvestors in real estate rely heavily on word-of-mouth, so they must treat others with respect. Everyone with whom the proprietor interacts while doing business falls under this category. Successful real estate owners pay close attention to detail, are responsive to tenant complaints, and present their company positively and competently. This establishes the credibility necessary to attract additional partners interested in working with the sponsors.

These are Some Strategies that Can Be of HelpTwo popular real estate investment strategies for long-term success are the buy and hold approach and the fix-and-flip strategy. Both strategies have unique risks and rewards. Successful real estate investors often use a combination of methods to diversify their portfolios and maximize returns over the long term.

Buy and Hold Investment ApproachThe strategy known as “buy and hold” involves investing in a property with the intent of holding it for a long period of time, typically five years or more. The goal is to generate passive revenue via lease payments and profit from the appreciation of the property over time. This is the ideal real estate investment strategy for long-term success. Owners who want a steady income stream and have the patience to wait for the value of their property to increase will benefit significantly from this strategy.

The potential for passive income is a major benefit of the buy-and-hold strategy. By charging rent, property owners can generate regular income that can be used to pay for expenses like the mortgage, taxes, and maintenance. Additionally, the property’s value may increase over time, increasing the owner’s ability to sell it while pocketing a profit.

Fix-and-Flip StrategyThe goal of the fix-and-flip strategy is to make a profit from the sale of a property after it has been purchased, renovated, and then resold. Owners comfortable taking on some of the sales risk associated with a renovation or construction project will benefit greatly from this strategy.

The potential for substantial profits represents one of the main benefits of the fix-and-flip strategy. Those looking to maximize their returns on investment should consider purchasing a property needing repair and then reselling it after the improvements have been made. Not all shoppers are suited to this strategy because it requires much time, effort, and expertise.

Some Tips that Can Be of Great HelpReal estate investment strategies for long term success rely heavily on location, market condition, and property management. By taking the time to consider these factors carefully, real estate investors can develop a sound investment plan that will lead to long-term success. Here is a short overview of what each of them offers.

Location is KeyWhen considering a property’s location, consider factors such as transportation access, proximity to amenities like shopping and restaurants, and the quality of the local schools. These factors can all impact the property’s value and demand now and in the future. A bad location is one of the biggest real estate investment mistakes you can make. The location is the most crucial part of the investment. It has to be good.

Consider Market ConditionsIt’s also important to consider the local market conditions when investing in real estate. Is the market currently in a boom or a bust? Are property values on the rise or decline? Understanding these factors can help in investment decisions.

Another factor to consider is financing. Real estate investing can require a significant amount of capital, and it’s important to have a solid financing plan in place. You may be able to secure a traditional mortgage, or you may need to explore alternative financing options such as private lending or partnerships.

Property Management is CrucialWhen investing in real estate, it’s also important to have a solid understanding of the legal and regulatory landscape. Real estate investing can be subject to a variety of laws and regulations. And it’s vital to ensure you comply with all applicable rules and regulations.

Long-Term Success in Real Estate InvestingFinally, it’s crucial to have a plan for managing the property once you’ve made the investment. This can involve hiring a property manager, handling maintenance and repairs yourself, or outsourcing these tasks to a third-party provider.

In ConclusionReal estate investing can be a great way to build long-term wealth. But it’s essential to do your due diligence and invest wisely. By considering factors such as location, market conditions, financing, and property management, you can make more informed investment decisions and build real estate investment strategies for long-term success. Patience, discipline, and a commitment to ongoing learning will all significantly assist you in achieving long term success in real estate investing and building a more secure financial future.

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In this article, we will go over the top real estate investment strategies for long-term success and why you should try them out.

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By Mary Aspen Richardson

If you are planning for your retirement, you’re probably wondering about the best way to secure your financial future. While there are a variety of investment options available, for some reason, real estate is often overlooked. However, real estate investing can be an excellent way to start your retirement plan, and that’s exactly what we will explore further in this article. With the help of an experienced team from olddawgsreinetwork.com, we did thorough research, and here’s all you need to know about starting your retirement by making a smart real estate investment.

Real Estate Investing 101: Everything You Need To Know To Start Your Retirement PlanReal estate investing can help you generate long-term passive income, essential for your retirement plan. Real estate provides a sense of security as a tangible asset, making it a popular investment option for retirees. This type of investing also offers the potential for appreciation, meaning that the value of your property may increase over time, providing a valuable ROI.

Additionally, you can leverage your real estate investment by using the property’s equity to purchase additional investment properties. And even if the worst happens, there are plenty of real estate exit strategies you can explore. Now let’s learn more about real estate investing and how it can help you start your retirement plan.

Determine Your Goals and Risk ToleranceThe first step in any investment plan is determining your investment goals and risk tolerance. Ask yourself: Do you want long-term appreciation or immediate cash flow, and how much risk are you willing to take? Your answers will help you create a solid plan and avoid making impulsive decisions.

To create a real estate investing retirement plan, set specific goals that align with your investment goals, financial situation, and time frame. You should include what type of properties you plan to invest in, how much money you want to make, and when you plan to retire. Once you have these goals, you can develop a plan to achieve them.

Choosing the Right Investment PropertyChoosing the right investment property is crucial to the success of your retirement plan. Rental properties, such as apartments or single-family homes, are popular choices for real estate investing. Alternatively, commercial properties, such as office buildings or retail spaces, can provide higher rental income but may require more maintenance and management.

If this is your first time investing in real estate, it’s best to start small. Consider investing in a single-family home or a duplex as your first rental property. This will allow you to get a feel for the market and learn the ins and outs of managing a rental property. As you gain more experience, you can consider investing in larger properties or expanding your portfolio.

Also, when choosing a property, it’s essential to consider factors such as location, property type, and the condition of the property. You’ll want to invest in a property that will provide a steady stream of income. On top of that, you want a property that will appreciate in value over time. Properties in prime locations, such as urban areas or popular vacation destinations, tend to appreciate value faster and generate higher rental income. There are great passive income opportunities with Airbnb, too.

Do Your ResearchBefore you invest in any property, do your research. This means researching the local real estate market, analyzing the potential rental income, and determining the expenses associated with owning and managing the property. It’s also a good idea to talk to other real estate investors and professionals, such as real estate agents, property managers, and accountants. They can provide valuable market analysis and help you find investment opportunities that fit your goals.

Financing Your Investment PropertyThe next and most critical aspect of your real estate investing journey. You’ll want to consider your options carefully and choose a financing option that suits your unique situation. One option for financing your investment property is through a traditional mortgage. Alternatively, you can choose to finance your investment property with a hard money loan, which is a short-term loan that is secured by the property itself.

Whichever financing option you choose, it’s essential to consider the interest rate and repayment terms carefully. You’ll want to ensure that you can afford the monthly payments and that the interest rate is favorable.

Set a Realistic BudgetIt’s not a secret that investing in a property requires a significant amount of capital, so it’s essential to set a budget and stick to it. Therefore, it’s crucial to determine how much you can afford to invest and how much financing you will need. Setting a realistic budget will help you avoid overextending yourself financially.

Also, make sure to factor in additional expenses. For example, property taxes, insurance, and maintenance costs. Think of even the most minor details, such as moving expenses and the costs of renting a storage unit. Even the smallest details count, so listen to the advice from the team from Movers Not Shakers NYC and do thorough research and compare costs before hiring movers or renting storage.

Decide About Managing Your Investment PropertyManaging your investment property can be challenging, especially if it’s your first time buying rental properties. Therefore, it’s essential to have a plan in place for managing your property and ensuring that it generates a steady stream of income.

Managing a rental property can be a complex, challenging, and time-consuming process. So if you lack the time or expertise to manage your property, consider hiring a property manager. A property manager can handle tasks such as screening tenants, handling everything related to maintenance and repairs, and collecting rent. This option can be especially beneficial if you’re not located near your investment property or don’t have the time to manage it yourself.

Alternatively, you can choose to manage your property yourself. This option requires more time and effort but can be more cost-effective. It’s essential to have a plan in place for tenant screening, rent collection, and maintenance to ensure that your property generates a steady stream of income.

Have Realistic ExpectationsReal estate investing can be a profitable venture, but it’s essential to have realistic expectations. Finding the right property and tenants may take time, and you may encounter unexpected expenses along the way. The real estate market can also be unpredictable, meaning your property’s value and rental income fluctuate over time. However, with patience and a long-term mindset, real estate investing can be a great way to build wealth and secure your retirement.

Also, as the real estate market is constantly changing, it’s essential to stay up to date on industry trends and best practices. Attend industry conferences, read industry publications, and seek mentorship opportunities to educate yourself and improve your investment strategy continually. For instance, you can learn how to leverage technology to make the most of your real estate business and further diversify your portfolio. This will help you adapt to market changes and make informed investment decisions.

ConclusionReal estate investing can be an excellent way to secure your financial future, especially for retirement. However, it requires careful planning, research, and attention to detail. But with the proper knowledge and a solid plan, you can build a successful retirement portfolio that provides stable cash flow and long-term appreciation. Start today and take advantage of the opportunities available in the real estate market. Your financial future is waiting!
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By Mary Aspen Richardson

Investing in real estate may be lucrative, but it requires a substantial time commitment and a sizable financial commitment. In today’s fast-paced world, technology has become an indispensable tool for simplifying processes and maximizing productivity in the real estate industry. Whether you’re an experienced investor or just getting started, there are many ways that technology may streamline your real estate investment and make it easier and more fruitful.

Property Management SoftwareKeeping track of a portfolio’s several properties is a daunting challenge for any investor. If you own many properties and want to better organize your day-to-day operations, property management software might be a great help. The convenience of property management software lies in the fact that it can be accessed from any device at any time, from any location.

Using property management software, you can eliminate a lot of the mundane, time-consuming tasks associated with property management, allowing you to put your focus where it belongs: on your investment. Though this will be a lot of help, there are also some things you can’t be successful without. Real estate negotiation is something you will have to master if you want to be a successful investor.

Online Marketplaces for Real Estate InvestmentAs a place where buyers and sellers may meet, online real estate investment marketplaces make it easier to find properties to put money into. Among the many online real estate investment platforms available today, three of the most well-known are Fundrise, RealtyMogul, and Roofstock.

Users of these services have access to a wide variety of investment opportunities, from single-family homes to apartment buildings and beyond. Internet-based marketplaces make it possible to research investment opportunities, examine property information and financials, and even make an investment. All of this without leaving your house.

Investing in real estate through an online marketplace has several advantages. Which includes helping streamline your real estate investment process that facilitates well-informed decisions. In addition, several of these platforms have professionals available to provide assistance and direction, which simplifies the management of the investment process.

Real Estate Investment AppsThe term “real estate investing app” refers to mobile applications designed specifically for the needs of real estate investors. To keep your finances in order, monitor market fluctuations, and make educated investment decisions, you may find these apps useful.

In the world of real estate investment, mobile apps provide you the flexibility to manage your portfolio from anywhere, at any time. In order to maximize earnings while avoiding risks. Real estate investors might benefit from employing tools that help them stay informed and make decisions quickly and easily. These are some of the best advantages that investors will have, but also the biggest challenges for real estate investors. Everybody will start using these newly available shortcuts, and competition will skyrocket. So be prepared for some struggling.

VR is the most recent innovation in real estate marketing

Virtual and Augmented Reality for Real EstateUsing VR and AR to make financial decisions about the property is a smart move. Through the use of these innovations, you may engage with properties in exciting new ways. Learning more about their potential and making better investment decisions as a result. The applications of virtual reality and augmented reality include:

• One may take virtual tours of houses without ever leaving the comfort of their own home.
• Building design and upkeep: You can utilize VR and AR to see the potential design and remodel options, which will let you make more informed decisions about repairs and improvements.
• In the realm of advertising and promotion, VR and AR may be used to construct virtual walkthroughs. It provides a novel and interesting experience for potential buyers or renters.

Virtual reality (VR) and augmented reality (AR) might help you save time and money during property tours and renovations while providing a more exciting and immersive experience for potential renters and purchasers. And when looking for reliable help in logistics services in California, be sure to find the right people to help transport all the furniture or any other help you need before you complete the real estate deal.

Be sure that drones are one of the best ways to streamline your real estate investment

Drones for Real Estate PhotographyThere is a logical reason why drones are becoming increasingly popular in the property industry. Drones’ ability to take aerial footage and stills offers a new perspective that was previously unavailable without a significant investment of time and money. Drone photography has many advantages in the real estate industry:

• Drones are more easily available to real estate investors due to their lower cost compared to traditional aerial photography methods.
• You can put your time and energy into other aspects of your business because drones can shoot pictures and movies so quickly and easily.
• More potential buyers or tenants may be attracted to your property if you use aerial photography and video.

By utilizing drones for real estate photography, you can present your properties in a novel and engaging way. Which will increase your chances of finding a buyer or tenant and help streamline your real estate investment.

Smart Locks and Access ControlProperty technology companies also advocate installing smart locks and an access control system by allowing real estate agents and builders to maintain tabs on their properties. This technology makes the real estate market safer for everyone. Guests, delivery workers, and service providers may all be granted or denied entrance to a property at the touch of a button using a smart lock’s app (such as stagers, open houses, or cleaning services).

Smart locks are not only convenient but also cheap, safe, and easy to install and use. Installation of smart locks that guarantee the safety and security of a home may help a real estate company gain the trust of its clients. It’s also not necessary to constantly operate the locks. Sure enough, authorized visitors may get in swiftly by inputting an authorization number. Not using all of these advantages that you can easily acquire are some of the biggest real estate investing mistakes. So be sure to use everything that you can get your hands on.

ConclusionReal estate investors may streamline their processes and make more informed decisions with the help of cutting-edge technology. Property management software, online marketplaces, real estate investment applications, virtual reality (VR), augmented reality (AR), drones, and artificial intelligence (AI) are just some of the ways in which technology may be used to make the real estate investing process easier and more fruitful.

The use of technology in the real estate industry is no longer just a passing novelty. By embracing technology and keeping up with the latest innovations, you can stay ahead of the competition and streamline your real estate investment to the next level.

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Meta: This article will tell you everything about how technology can help you streamline your real estate investment

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by Rhonda Underhill

Paying for college can be a stretch at any time, and if you’re balancing other endeavors, like family and home maintenance, you might need a bit of additional income. Returning to school as an adult can be rewarding, and finding a way to make it financially feasible is important. Although flipping houses involves a good deal of work, it can be lucrative. Read on for tips on how to make it work for you.

Investigate the Neighborhood First

Before you begin searching for a particular house to purchase and flip, devote some time to research the best areas for quickly reselling an upgraded property. Find listings for homes of the type you’re considering, and follow them to see how long it takes them to sell. Keep notes on which neighborhoods have more rapid sales. Look for areas where enhancements to the community are underway, such as new or upgraded schools, parks, and shopping areas, commuter line expansion, greenways, and increased access to highways. Areas with high-ranking schools are also likely to be lucrative.

Apply the 70% Rule

The 70% rule states that you should pay no more than 70% of the cost you hope to sell a property for (the after-repair value or ARV) minus the cost of repairs. No doubt, some research will be needed to determine average costs for various renovations, as well as the average price per square foot for similar properties in your area of interest. If you stick with this rule, you can avoid getting in over your head. The most popular renovations in flipped houses are the kitchen, bathroom, and flooring. Any or all of these could give the home a fresh appeal.

Deep Clean Before You Go Public

Once the repairs and renovations are completed, your property will need a good cleaning before it’s ready to be put on the market. You can hire a cleaning service, or you can save money by doing the cleaning yourself. You might want to invest in a corded stick vacuum for this task. This type of vacuum is lightweight and easily portable, and it can make reaching small spaces easier. Remember to clean up the exterior of the property, too, particularly the front entrance. The importance of curb appeal cannot be overstated. Keeping the vegetation trimmed and giving the front door a fresh coat of paint can dramatically elevate the appeal of your property.

You’re a Business Now

Now that you are ready to offer the property for rent, you’re actually in business. When choosing a structure for your company, you might want to consider becoming a limited liability partnership (LLC). This can be a good choice since it protects you and your assets if you are sued. An LLC also has some tax advantages and may be a more flexible way to operate. You’ll need to specify someone as the registered agent for your business. This is an individual who is available in person during normal business hours to represent the company to the government and any legal or tax professionals. You could do this yourself, although you might also hire someone through a registered agent service.

Keep Track of the Paperwork

Your house-flipping activity will generate a lot of paperwork, and it’s important to keep it organized and easy to find. There are online tools available to help you with this task. It’s a good idea to scan all paperwork, so you also have electronic copies in one location. Although you might initially compile all the digital records in one file, you may later need to break this down into smaller files. A PDF splitter tool can help you separate a big file into multiple smaller files. With this tool, the information you need can be easily pulled out, renamed, downloaded, and shared as needed.

Although flipping houses require a lot of work, it can pay off, and many have found it to be an excellent way to pay for a return to university. Make sure you’ve thoroughly researched the location of the house you intend to buy and flip, as this could be the determining factor in whether or not it sells quickly once you’ve completed the remodel. If you set your business up as an LLC, you’ll be risking far less. Before you market the home, be sure it is thoroughly cleaned, and you’ll be ready to present it to the public most effectively.

If you’re considering real estate investment as a means to finance your retirement years, check out Old Dawg’s REI Network, which includes a blog, newsletter, podcast, and website. This network provides information and community for real estate investors seeking to generate cash for retirement.

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By Mary Aspen Richardson

Buying an investment home for the first time is exciting, but it can be equally challenging. The moment you enter the market, it’s like you stepped into an aquarium full of sharks, and each shark wants that piece of food you want. Okay, it’s not always like that. However, a lot of times bidding wars and all that comes with them can be pretty exhausting. If you’ve determined you want to swim with sharks and win the race, we’ve prepared this first-time buyers’ guide to real estate negotiations.

First-time investors’ guide to real estate negotiations tip: research, research – and more researchWhen entering a conversation you know nothing about, find out as much as possible about it. Only knowledge is power; the sooner you gather that knowledge, the better the outcome. So, make sure to spend some time on the internet and familiarize yourself with terms and expectations. Doing extensive research is not just for younger, first-time buyers. It’s one of the best habits that all successful investors have. Also, investigate all the experts you’ll need to contact and check the reviews of some best picks. That will give you a head start and make the process easier.

Have a planThe most critical step you can take toward entering any negotiation with confidence is to have your financials in order. And confidence starts when you work out your plan. First, make sure you know what your budget is and have a conversation with your bank or mortgage broker to be pre-approved before you even begin browsing or negotiating for a home.

You’ll need to show the seller you can qualify for a mortgage loan. What will happen if you offer a house before you have evidence of money? The odds of a customer choosing you over another candidate are pretty low. Submit an offer only after you’ve confirmed you can acquire a mortgage loan. A pre-approval letter from a mortgage lender lets sellers know you’ve been accepted for a particular loan amount and may go forward with purchasing a house. It’s crucial to have all this in order before considering buying a home to avoid any unpleasant surprises.

It’s good to estimate the cost of everythingEven at the beginning of the process, it’s good to imagine that you’ve already won the negotiations. That means you need to consider the costs of other professionals you’ll need to hire. Don’t let the unplanned moving cost make a jump scare on you. Put everything on paper and consider all the costs, like:

• packing
• storage
• transportation

After all, this will also bring a dash of positive thinking, as you’ll assume that you’re winning from the start.

Cooperate with a reliable real estate agentBecause real estate listing sites are so easily accessible, many homebuyers falsely feel they no longer need to work with a real estate agent. But a real estate agent’s services extend beyond that. When it comes time to negotiate the price of your house, your agent will be an invaluable tool in guiding you to a reasonable offer. So don’t overlook the tips in our first-time investors’ guide to real estate negotiations and work closely with an agent.

Agents in the real estate industry have extensive knowledge of the property market in your area. They are conversant with the ebb and flow of interest rates, the properties likely to appreciate, and the likely tax burden associated with various real estate investments. Professional real estate agents can put their feelings about a property aside throughout the purchase.

For instance, they are better positioned to fight on your behalf. In addition, a real estate agent will be able to assist you in creating the most robust offer letter possible, with all the necessary safeguards, to ensure your interests are protected.

Present the sellers with an attractive proposalIn an auction, the seller’s goal is to get the highest possible price. To avoid an auction, it is in your best interest as a buyer to be able to negotiate a fair price with the seller. Some sellers may be concerned that the day of the auction won’t bring in sufficient interest from qualified buyers. Still, others may be eager to sell soon since they have already found their new place to live. Some sellers may choose to find a buyer who would maintain the house rather than demolish it.

You may call the real estate agent or stop by their office with a deposit check in your offer amount. If the seller rejects your first offer, you may raise it over time without exceeding your limit.

Leave your feelings at the doorPutting aside any sentimental ties you may have to a home before making a purchase is crucial. Whether at auction or by private agreement, you must have the option to back out of a transaction if the price is too high. Sometimes sellers have a firm price in mind and refuse to compromise. If it’s not meant to be, there will be another house along that will be a better fit. If you can maintain emotional distance during talks, it will be easier to maintain command of the situation.

Confidence is the keyLike in any other conversation, your confidence boosts your chances of winning. Doing research and all the things we mentioned above, this first-time investors’ guide to real estate negotiations will only give you confidence and boost your self-esteem. It’s psychologically inevitable that the seller will have a better opinion of you if you approach the negotiations like you own the world. Of course, no first time can be perfect, and you might feel fear and excitement. That’s completely normal. But, sometimes, you need to fake it till you make it, and even if you’re not sure that you’ve got the situation under control, acting like it will boost your odds.

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SHOW NOTES FOR EPISODE 688: A FINAL FAREWELLIn May of 2016, Bill Manassero launched the Old Dawg’s REI Network Podcast to help educate real estate investors over 50 years of age and to document his own goal to acquire 1,000 units in six years. In this episode, Bill shares his own personal success story and closes out the podcast’s final show.

IntroductionWell, this is it guys! This is going to be a difficult show for me. I have truly grown to love the folks who listen to and communicate with me via this show. I have met many of you, done business with some, and even had some of you on the show as guests. It has been a great adventure these past six plus years, hosting the Old Dawg’s REI Network Podcast! This show will remain one of the most amazing experiences of my life.

Just so you know, we will be keeping the Old Dawg website active so that you can reference the nearly 700 podcasts and 300 plus blog articles. There’s a ton of great content for real estate investors from beginners through experts in the podcasts and blog. So, please visit and searches our content on any real estate investing topics you desire. And, who knows… we may even add a few new blog articles or forgotten shows every now and then. So, stay on our mailing list! Believe me, we won’t be mailing unless there is something new – we are totally anti-spam!

But, before I sign-off, I have a few things I would like to share…

First of all, I just want to thank all of you who have listened to this podcast, especially those who have been with us from the beginning. Wow! Without you there would be no show. You have all been awesome. And I can’t thank you enough

I also want to thank my friend and mentor Joe Fairless who urged me to do the show in the first place (over 6 years ago). Even though I was reluctant, I am so thankful I went through with it! This podcast was a true blessing!

And I want to thank someone for which there would truly be no show. And that’s my producer Tim Edmondson!

An audio genius who has master engineered songs for some of the biggest music legends of all time – no lie! He also happens to be my dear brother-in-law, great friend, bff and former band mate in the world famous Mister Bill Band (and an extraordinary drummer) – and a former drummer for the 80s rock band Dramarama. Tim made this show sound great!!!

He had the weekly challenge of cleaning up my technical disasters, making the episodes sound extremely professional, removing my endless, and-ahs, ya-knows, likes, ums, so forths, Darth Vadar breathing episodes, and bad jokes, just to name a few. Believe me, if you ever heard the raw version of each show you wouldn’t believe it compared to the final mastered version. Tim is a true audio artist who painted the palete of this podcast since our very first show in May of 2016. I can never thank you enough brother!

And finally, I don’t know if I mentioned it or not on the show but I was thinking of writing a book to share my story – from the streets of Port-au-Prince, Haiti to multifamily millionaire. But, the more I thought about it, the more I saw it to be a very, very short book. Because if I truly shared my “secret” to success — how I started with almost nothing to become financially set for life –a lot of people wouldn’t believe it!

It actually started in 1988 when I was an over ambitious entrepreneur. I was devoted to becoming a millionaire before the age of 30. All I cared about was making money and making myself happy. Driving fast cars. Living a fast lifestyle. Dating beautiful women. Thinking I was invincible… but not realizing I was far from it!

I also took a lot of chances. Did a lot of dumb things. Was very greedy. And, one day, everything caught up with me. My house of cards came crashing down — almost overnight. I went from young business superstar to being subpoenaed by the SEC and two steps away from serving time in prison.

I was one of the worst times in my life. I had got myself into a lot of trouble and it looked like I had no way out. I was a mess. I was at my lowest point ever and didn’t want to ive. But, thankfully, when you’re down far enough, sometimes, the only way to look was up.

And I did! I prayed. I was in my office at 3am in the morning (which was a common occurrence at that time) and I prayed to a God I didn’t really know and wasn’t even sure existed. My prayer was simple, “Take my life anyway you want. Car accident. Getting robbed and shot! Anything! But hopefully something quick. And if you don’t take my life (if you even exist) , then I will.”

In the days that followed a series of supernatural events happened. I found myself at the Palos Verdes Country Club looking for my Chiropractor friend who invited me to a meeting of big wig Southern California businessmen, one of which was possibly interested in helping me. He was a high tech, high ticket CEO coach who worked with software company CEOs and an new emerging group of start-up entrepreneurs who were creating these networked businesses with this thing called the Internet. Anyway, he invited me to breakfast where he very quickly pried out of this egotistical, too proud to admit I was a failure, how I managed to totally make a total disaster of my life. And, believe or not, I walked away from the meeting with a glimmer of hope that I might not end up in jail.

He wanted to meet again, next week for breakfast. I was nervous, however, because I knew that this guy was not cheap and his hourly rate was more than I had left in my checking account! However, he agreed to meet with me – not just once, but every week, at the same place, for breakfast. He was going to help me with my business problem – and was going to do it for FREE!. Oh, but I had to agree to do one thing! In addition to the help he would give me for my business, I also had to agree to do a Bible study with him at the same time. Oh no! What was I getting myself into? I wasn’t real thrilled about the Bible study but I was just desperate enough to agree to anything.

So, we started meeting and three quarters of out time was spent talking business and actually resolving some of my major business problems and a quarter of our time was on the Bible study. However, as much as I tried to cheat and skip through the Bible study, I couldn’t avoid the “homework” park of my assignment – I had to actually read the Bible and answer some of the very tough questions.

I had never really read the Bible before and, surprisingly, I became caught up in it. I was learning a lot interesting things that were also giving me hope.

And as continued meeting with him, a shift was occurring, and I ended up wanting to spend more time talking about the Bible and less about my business problems. I learned about a God who loved me so much that he sent his only son to die for my sins. I remembered seeing these signs at sports event “John 3:16” and now I actually understood what it meant and not just for everyone but specifically for me and my dilemma!

And, one night, I was again in my office. It’s 3am and, again, I began to pray. But this time, my prayer was different. I prayed, “Dear God. When I prayed to you last time God, I asked you to take my life – kill me – any way you wanted to. But I never dreamed turn my request to take my life like this. I’m asking you now to take my life, but not to kill me but to give me a new life – a life I want to give to YOU! I don’t even care anymore if I end up in jail. I just want to live my life for you. And no matter what the situation or where I am – including jail – I will serve you joyfully no matter what!”

And that’s what happened more than 30 years ago.

And, over the years, I saw miracle after miracle:

• Delivered me from addictions and all of my business problems
• Meeting my wife
• Having 7 beautiful children
• I continued in business for a number of years but my heart was drawn more and more to full-time ministry.
• First, with a children’s music ministry where we released 3 albums and traveled the world for concerts and church events
• And then, later on, to serving, full-time, the street children of Haiti as missionaies.
• In Haiti, the miracles continued
  • I saw kids lives transformed, saved from trafficking
  • Families transformed
  • People delivered from all kids of things
  • There during the earthquake, where our orphanage was transformed into a triage unit
    • Even non-religious reporters reporting on what was happening were dumbfounded of how our little triage unit served over 500 people who went through there (because all the hospitals were down) and how not a single person died under our care
    • How doctors and medical supplies kept showing up miraculously
    • Some of the reporters just quit asking how these things were happening and would say, “I know. Don’t tell me. It was God!” And it was. And it is .
    • One of those reporters, a woman named Soledad O’ Brien, with CNN, ended up doing a one-hour documentary on the experience called “Rescued” and writing about the experience in a book years later as well.
    • Oprah Winfrey even came to interview and feature our family on her show – but, it was never about us – it was always about Him!
    • God is real and he’s still working miracles every day!

After 12 amazing years in Haiti, getting older and realizing it was time to retire, even though we had no money, having lived on faith for all those years. That same God that saved me 30 years ago and showed us miracle after miracle in our lives, led me to this crazy Real Estate Investing thing where be continued to bless and provide not only what we need now but enough for the rest of our lives.

That’s why I didn’t end up writing that book. I don’t want to share what I did… because it wasn’t me. And that’s not false modesty – that’s reality! We serve a God who is faithful and real. He is the reason we succeeded. He directed our path every inch of the way and blessed us in more ways than I can ever express in the short time of this podcast.

Now, I know there are many listening to this from all different backgrounds and beliefs, and I really want to thank you for listening to this full podcast.

But would be remiss if, in my final podcast, I didn’t share the real story of my success and my journey.

Thank you very much for being part of our family here at the Old Dawg’s REI Network. I appreciate you all so very much and am sincerely going to miss you.

Well, that’s it for now!

For the final time… keep moving forward and may God bless!

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By Brittany Fisher

Nobody is ever too young (or too old) to take control of their own life. For this reason, estate planning is highly recommended, even for young adults. In fact, it’s something that should be undertaken the moment a person turns 18 and is legally out of their parents’ care. After all, nobody can say for certain what life will bring, and it’s important to be prepared for eventualities.

No doubt, estate planning is the best way to do exactly that as it plans for the handling, management, and dispersal of assets and financial obligations in the event of one’s death. Moreover, it’s also a great way to ensure that one is properly taken care of in case of illness or injury that leaves one helpless and incapacitated. That’s why the Old Dawg’s REI Network invites you to take a look at your options.

Get InsuredFirst thing’s first: insurance is often touted as a real financial must-have in every person’s life, regardless of age. For most people, this is to ensure that their loved ones are provided for in case something happens to them. More often than not, though, this is something that most young people can’t appreciate, especially when they are yet to have a family of their own. But the fact is, as Anderson Retirement Solutions notes, life insurance matters to young adults because this can cover debts that you might leave behind.

To determine your coverage needs, get an approximate total of your debts and assets, as well as lost future income if you’re raising a family. If you’re a homeowner, ascertain your home’s worth and equity. Having as much financial information as possible ensures you choose the proper amount of coverage. Keep in mind that many employers offer perks like life insurance as a benefit, so speak with someone in HR to see if it’s available. Remember: the sooner you purchase life insurance, the lower your premiums will be.

Create a WillCreating a will is not the be-all and end-all of estate planning, but it is a significant part of it. In a nutshell, a will is a legal document wherein you can specify inheritance of your assets, or guardianship of your children—or in the absence of either, where your worldly possessions should go. This is crucial because the lack of a will might cause your assets to get tied up in probate court for years, which can be inconvenient to the people you leave behind. For this reason, it’s definitely more than wise to add this to your estate planning checklist.

A living will is another item you should look into. Essentially, this is a directive in which you can specify who should make healthcare decisions for you, including difficult end-of-life decisions, when you’re unable to make them yourself. Be sure to keep this document updated as major events occur in your life; for example, if you get divorced, make sure to update your will to exclude your spouse, if you so choose.

As with your will and your insurance paperwork, it’s important to keep all your documents organized. A good way to do this is by digitizing these “paper” records and other documents. When digitizing your records, instead of using many files, this free PDF merger tool can keep all their documents in one file, which will cut time on having to find a document. Once you combine PDF files, you can move PDF pages to get their records in the right order.

Designate a Power of AttorneyWith pretty much the same rationale as a living will, you can also consider assigning someone you trust as a proxy through a power of attorney. Aside from being able to make healthcare decisions for you when you’re incapacitated, a power of attorney will allow your proxy access to your medical records, as well.

You can also execute a durable power of attorney for financial decisions, as well. Again, this document will give your proxy access to your financial accounts when needed. National Law Review points out that it can be very useful for young people who are still finding their way in the adult world to assign a parent as such. It can even come in handy for adults living abroad who need a parent or trusted individual to take care of financial matters back home.

Think Long TermNo one relishes the thought of having to leave their home, but if health concerns require you to move into assisted living, that’s a choice best made by you, rather than your family. So it’s a good idea to research the top facilities in your area—including their amenities, prices, and reviews—and make sure your preferences are known, should the need arise.

Everyone should have a sound estate plan to go through life, and young adults are not exempted. In fact, it may even be more important to start taking such responsible steps at a young age as it can certainly provide you with the peace of mind and security that ultimately allows you to live your life to the fullest.

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SHOW NOTES FOR EPISODE 687: STRATEGIES TO CREATE A RECESSION-RESISTANT REAL ESTATE PORTFOLIOSuccessful real estate investing in today’s economy requires a strategic approach. Caution and diversity are key! In today’s episode, multifamily real estate investor and co-founder of SMK Capital Management Mark Khuri shares the creative strategies his company has used to prosper through two recessions.

What You Will Learn* What three recession-resistant assets are best known for excellent returns during tough economic times * How long you should hold on to a real estate investment during a recession * What traits does an investment need to have to prosper during tough economic times * Why the U.S. housing market is in decline * How debt can affect your real estate investment returns * The five key things investors over 50 are looking for in a real estate investment * What two main attributes should you be looking for in a recession-resistant real estate investment

About Our GuestMark KhuriMark has been an avid real estate investor for over 17 years and throughout his career, he has been involved in sourcing, underwriting, acquiring, raising capital, rehabilitating, managing, and selling both residential and commercial investments throughout multiple markets in the US.

Mark has analyzed thousands of investment opportunities and has successfully bought, renovated, sold, and invested in over 120 properties with a combined value of over $1 billion and created and managed over 60 real estate partnerships with investors.

More About Mark* Mark’s career began in finance * He also did internal auditing * In 2004-2005, he started investing in real estate on the side * He expanded his portfolio by partnering with family members * Mark and his brother bought a fourplex * His parents and another brother pooled funds to buy some other assets as well * By 2010, he decided to go full-time into real estate * His family founded SMK Capital Management at this time * They wanted to create more diversification and to allow other investors to invest in their projects

How They’re Dealing with Today’s Economy* Recession-resistance is top-of-mind for his company for the last 5 years * In 2018, they created a “recession-resistant” fund with the intent of diversifying across lowly or inversely correlated assets such as: + Self-Storage Facilities + Mobile Home Parks + Apartment Communities in the Class B Workforce Housing sector in growth markets + Most of the investments were 5 to 10-year holds - They were purposely targeting medium to long-term investments with the intention of “weathering the storm” should the economy be a recession, correction, down-turn, etc. - They didn’t want to be sellers at the wrong time + They wanted the fund to continue to cash flow and maintain asset value * They closed the fund to new capital in 2019 * The fund has done quite well thus far + They have returned a third of their investors’ funds back to them through some re-finances and through a couple of properties that have sold in the fund + They have just about caught up with their projected 8-10% preferred returns for investors + They stopped investing with the fund about 6 or 7 months ago to watch, wait and analyze to see “what was going to happen” – especially during the pandemic + By the 3rd quarter of 2020, they started seeing a lot of demand for affordable housing + They saw rapid rent growth, cap rate compression - So they adjusted and pivoted their investment strategy a little to include: * Shorter-term investments + Typically, 2 to 3-year value-add holds + 1980s vintage apartment communities with rents well-below-market + Rehab between 5-10 apartments a month + Increase rents * Not focusing as much on cash flow * For 2022 + Back to recession-resistant investments + Medium to long-term holds + Focusing more on growth + A lot of fixed-rate debt + More cautious approach + Still doing funds + But also will target and feature one project + They are in over 30 states, predominantly in the Midwest, South and Southeast U.S. + Criteria hasn’t changed much over the years + They are being more careful as to the type of debt they are putting on the asset - Being more conservative than before - With interest rates increasing, they continue to monitor daily - They are remaining very patient and just watching where things are going + The last deal they did was an affordable housing community in Houston - They did agency debt * 10-year fixed rates at 4.94% * With 7 years of interest only * and 76% low to cost * Very safe structure

Recession-Resistant Assets* Mobile Home Parks + The most affordable housing option + Barriers to entry to create new mobile home parks are extremely high - You have a fixed, and even declining, supply in some markets + It’s a unique asset class - During tough economic times, there is a strong demand for this type of housing * Self-Storage + There is a lot of data on how self-storage has reacted during various market cycles - In tough economic times, people tend to move out of their current homes * May down-size * Relocate * Move-in with family or friends * People need a place to put their furniture, etc. * Demand for self-storage increases * Apartments + Class B + Workforce housing + In growth markets + for example, 2-bedroom, 900 sq. ft. apartment that rents for $800-$1,400 - At least 2-people incomes are generally paying rent + Local median household income can afford the “post-renovation” rent

How They Are Responding to the Current Economy* All tough economic cycles are different * However, the the response is typically the same: + They are extra cautious about what they are investing in + Maybe even ceasing to invest for a while to “watch and see” what is happening or what direction things are taking + Regularly monitoring data for possible investment trends * As we approach 2023, single family home prices are leveling out and even declining * There is not much of an increase in housing supply * Debt has almost doubled in 2022 * The cost of home-ownership is out of reach for most Americans + Pre-Covid, 59% of Americans could afford a home + Now, it has gone down to the high 30% range * Mark thinks they will see more market clarity once the Fed shares where interest rates are going + A recent Fed meeting said that they may be reducing rates * According to Mark, there isn’t a lot that seems wrong with the economy + We’re not seeing distress in the assets themselves or the demand + The main issues in today’s economy is inflation and high interest rates + When you look at apartments, for example… - Occupancy is in the high 90% range across the US - Demand is skyrocketing and has been for a while - Continuing to see some organic rent growth in most markets * Not nearly as much as we have seen over the last 2 years - The basic investment fundamentals have been good (also the same is with mobile home parks and self-storage) + They will continue to track supply and see where those rates go

Biggest Mistake* Looking back at their pre-Great Recession investing in 2005-2010, there were doing a lot of single family and small multifamily (12-units and less) investing + Most everything they were buying was distressed - Boarded-up - Vacant properties + They were paying all cash directly from the bank (REOs, foreclosures, etc.) + They were putting a lot of money into the properties to make them “beautiful again” - They over-renovated - Over-spent - Took too long - Part of this was from an emotional decision + They weren’t getting the return for the money they were putting into the properties * The lesson learned was to: + Not be emotional when making decisions regarding your value-add efforts + Treat it as a business + Say “no” to certain upgrades that were not critical

Biggest Success* By 2009-20210, when Mark and his father created the company, he went to a lot of networking conferences, real estate meet-up groups in Southern California (where he lived at the time) for about 2 years – almost every week * He met a lot of people who were very dedicated, seasoned investors in the real estate investing space * He learned a ton of valuable information * He had many notebooks filled with notes * Many handshakes with lots of contacts * A lot of the people he met back then are still with them today! + Investors + Sponsors + Operating partners * He was motivated by a “never-ending quench for education and content” * Extremely valuable season of his career

Advice for Old Dawgs Looking at Real Estate Investing to Help Them in Their Retirement Years* A lot of his clients are 50 plus in age + What most of his clients tell him that they are looking for is… - Capital preservation - Income - Growth - They also want to remain passive and not have to deal with tenants, toilets, etc. - They also want to avoid the stock market * The design and structure of their investments is designed to meet those needs * Mark’s father was heavily vested in the stock market in the Great Recession and learned the hard way what not to do * That’s why they are very focused, with all their real estate investments, to see: + Pretty consistent distributions + Retaining or growing asset valuation + Income + Capital preservation * They remain committed to finding and source opportunities they think can weather a storm * They also remain conservative with longer projected holds * He always looks at each new deal by asking, “Will I be happy with this investment in 3 years?” + The answer has to be, “Absolutely!” or they won’t do the investment

Current Business* His company is on a trajectory where they feel they don’t need to do anything different * It sounds simple but that is what he likes about it * There are going to just keep going and doing the types of investment they have been doing + Add to and grow their portfolio in a meaningful way + Be even more diversified than they are today * They aren’t really looking for something special or new * They just want to continue with what they have been doing because it works * Diversification remains an important feature of their investment strategy + From 2005-2009, he was working with a private distribution company that had about $5 million in revenue - He helped them grow and expand their company - They got a large client/account * Revenue grew to $90 million annually * Then, the Recession hit * The large account went away * The company went back to $3-5 million annually - He learned a lot about diversification from this experience when you have “all your eggs in one basket” + Also, on the real estate investment side, when he left corporate America, they were predominantly focusing on single-family and small multifamily investment properties, which didn’t do very well throughout the Recession - But, through the networking events he was attending, he found out about other asset classes that had done pretty well (mobile home parks, self-storage, some apartments, etc.) * And he wanted to start diversifying into those asset classes

Rap-It-Up Favorite real estate book: Investing in Real Estate Private Equity by Sean Cook * Favorite business book: What it Takes by Stephen A Schwarzman (Co-Founder of Blackstone) * Most valuable web site for success (other than your own): GreenStreet.com and MarcusandMillichap.com * Favorite app: WeatherApp * Favorite quote: “Rule #1 – Don’t lose money. Rule #2 – Don’t forget rule #1.” – Warren Buffet * If you lost everything – all your assets – and had to start all over, knowing what you already know, and you only had $1,000, what would you do to re-launch your real estate investing business? I would just (use the money to) go network again like I did 12 or 13 years ago, when I first got started full-time in real estate to grow my network.*

How To Reach Mark* Company Website: SMKCap.com

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, or iHEARTRadio and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement, property management,

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SHOW NOTES FOR EPISODE 686: I JUST BOUGHT AN RV PARK!Even if you are strictly a passive real estate investor, there can come a time when you find an active deal that you simply can’t resist! In this episode, Bill shares how he stumbled upon just such a deal!

IntroductionOK, I know I know… for the last 6 months, I made a big deal about becoming a truly passive real estate investor coming into 2023. That I wasn’t going to buy any new properties and would only be passively investing in other people’s deals.

Well… in my defense… I also said you should be building up your cash for those amazing deals that will start popping up in the new recession.

Well, guest what, I truly stumbled across one of those deals and I just couldn’t resist.

As I may have mentioned, when I escaped California, I also happened to bring two of our children with us – my oldest son and my youngest daughter – both of which wanted to move to Tennessee also. They both started living with us but, once they got jobs they were planning to move out on their own. My oldest son got a great job but also found the girl of his dreams and now is married and has moved out. My youngest daughter found a great job in Knoxville, about an hour north of us and will also be moving out soon.

My son has been looking for a property with some acreage and I’ve been trying to help. And while we looking for properties, I literally stumble upon approx. 11.5 acres that was very unique…

• The owner had created a mini-mobile home/trailer park
• He purchased used trailers, ranging from 20-30ft, took the wheels off, put skirts around them and rented them out weekly, on a 6-month lease
• I’ve never seen a model like this
• It’s similar to the AirBNB medium-term rental but without have to buy:
  • Furniture
  • Appliances
  • Or much of anything
• They are hooked up to electricity, water, propane and septic
• And he throws in Cable TV and free parking and washer/dryer access

We were just looking for land and hopefully a house.

We found land (over 1 acres of it) and 5 homes that gross $5,000 a month. Oh, did I mention the property was selling for only $215,000 and included the trailer rental business.

• 1% rule – this is at 3%
• With a 30% ROI, meaning I would make my property purchase amount back in 3.5 years

I was stoked but my son and his new bride were not. They loved the business but not the idea of living there. They still have visions of the house with the white picket fence, room for their kids, etc. And I get it!

But I thought… here is a great piece of cash-flowing land with tons of undeveloped property for more trailers, AirBNBs, tiny houses, glamping and more…

But before I got too excited, I started doing my research on RV Parks…

Here’s what I found out…

The market size of the campground & RV park sector in the United States totaled 6.38 billion U.S. dollars in 2021, up from the previous year’s size of 5.93 billion U.S. dollars. Likely fueled by Covid! The campground & RV park sector in the United States is projected to surpass the previous year and reach over 7.01 billion in 2022.

10,000 baby boomers are turning 65 EVERY DAY! And plenty of them are selling their big paid-for homes and are buying RVs and either traveling around the country and/or looking for a nice place to settle. Since I moved to Tennessee, I have been meeting lots of retired couple who are doing just that! …and I’m just here in Tennessee.

And, it’s not just boomers…

The rise of the Millennials (those in their 20s and 30s) who are taking to RV travel due to its simplicity and family bonding potential…

I have also met a number of younger people on my podcast who are doing just as a result of their recent financial independence achieved through real estate investing – digital nomads, couples with young children, singles who just want to travel and others.

And here is the best part…

In a recession, people will be experiencing hard times: job and income loss, possible foreclosures, and much more.

• People may have to sell their houses and either move into a rental or, they may want to buy an RV for the mobility and self-containment
• With their RV, they only need to pay for food, gas, maintenance, insurance and the cheap cost of staying at an RV Park
• It will also give them the opportunity to search for and try out other parts of the country to eventually relocate
• Or, they may, chose to spend their retirement years living permanently in their RV, having the freedom to travel any time they want to any place they choose (that you can reach on a road or by boat)

So, is owning an RV park a good investment?

Purchasing an RV park means you’re getting in on an already growing market (with even more potential for growth in the coming decade). RV parks also tend to offer higher yields to owners than other commercial property investments. As stated above, investors can expect a 10% to 20% return on investment.

So what happened to my passive real estate investing????

Well, I’m still committed to being a passive investor but, if we can set-up, develop and build this RV Park right, we can shift the operational part of it to our children who are interested and/or hire outside managers.

Either way, it looks like a solid recession-proof investment that has longevity and great potential for significant boost in value

Now for those of you who are saying, “Hey wait a minute… how can I get in on this?”

Well, the good news is that Every day, the biological clock is advancing for the mom & pop owners of RV parks from coast to coast. This means that they are becoming more motivated to sell, as they may have health issues and/or just a general loss of interest in the business. And since they have no debt, they can get extremely aggressive on price and even may carry the financing.

So, if you are motivated and don’t mind doing a little research, maybe you could also find another “diamond in the rough” like we did.

I’m not trying to talk you into anything, just sharing, like I do every week, another real estate investing strategy to consider.

And I recognize, this isn’t for everyone but…

Instead of slaving away at a desk, you can enter the world of RV living – from part-time campers to full time RV enthusiasts… you’ll spend your days surrounded by people who are excited to be where you are.

You can play tour guide, helping families find the best hidden gems in your area.

You can choose your location – from serene nature settings to more fast-paced metro areas.

You can run your business the way you want – whether you want to live there or oversee others that do.

The choice is completely yours when you own and operate an RV park…

And the best part is that it’s all 100% building YOUR dream and YOUR future… not the future of someone else.

Here’s the thing about RV Parks: they’re a lot of fun. Many of them can feel like a big backyard barbeque – families milling around, getting to know one another… long-time friends reuniting as they take vacations together year after year… an atmosphere of fun and relaxation, no matter where you are.

But even more than that… they’re a truly low-maintenance, easy way to grow your investment.

On average, an RV park will yield 10-20%+ on your money. In fact, they’re among the highest-yielding of all real estate assets. If your goal is to maximize the return on your investment… RV parks are a pretty good place to start.

What’s more – RV parks are at the center of a number of “megatrends” – big changes in America that have a huge effect on business.

Links:

• 341: Real Estate Investing in Billboards and Mobile Home Parks – Part 1
• 343: Real Estate Investing in Billboards and Mobile Home Parks – Part 2

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, or iHEARTRadio and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement, property management,

Check out our other podcasts at olddawgsreinetwork.com.

Get a free copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

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By Amelia Lopez

Real estate has never had its charts smooth, but there is always a variation in property trends and prices. Commercial real estate shows an era of uncertainty, with increasing inflation affecting the rates of property and investors losing their confidence in the industry; the same amount invested in some other sector might give them quicker returns.

Even the best realtor in Albany ca, cannot get depressed over the industry’s situation, but they still work their best to find out middle ways for investors to stick to the industry. Every industry faces challenges in this post-pandemic era, but only the ones who can deal with these challenges skillfully will rise.

Five Upcoming challenged of Local Real Estate Investors 20232023 is just around the corner, and we all are wondering what the year will bring for us. While it will get much technological advancement, it may also bring some challenges you might need to prepare for.

Like all other industries, the real estate industry is also expecting to experience a change in trend with some pre-existing and post-new-year challenges that may change the direction of the industry.

Some significant expected challenges to be faced by Local real estate investors in 2023 are mentioned below;

Inflation and Interest RatesMany third-world countries and superpowers like the USA are moving towards imposing a greater inflation rate on their people to meet the losses made during the pandemic. Every industry experienced a downward curve in their sales during this era as there was mass-scale unemployment and a lack of buying power.

Like many other industries, governments across different countries impose high taxes and interest rates on property, which is a negative point for investors. They will have to buy property at a high rate, but the returns would be slow as the current time did not experience a promising trend in the property business.

Geopolitical reasonsThe political situation in various countries across the globe is uncertain. We are still determining when and who will turn the tables for everyone else and bring in their authority. Coupled with the third world war, the stakes in investing in real estate have become very high. Whether your country is directly involved or not, the world is.

War impacts the real estate sector of countries, posing a challenge for investors.

Climate changeThe year 2022 brought some catastrophic climate where significant parts of the world had exceptionally high rainfall and drowned major parts of some countries. The Asian continent was at the worst receiving end, where nearly 70% of some countries were underwater.

The western countries also experienced flooded roads etc. which was very disturbing. Now, the climatic conditions of 2023 are not expected to be better. Investors might rethink their decision to invest in property because of the high stakes of the coming climatic disasters.

Supply chain ShortageAre you shocked to see a supply chain shortage under the real estate topic? Well, like any other industry, several supplies are required in the industry. Delays in deliverables, high costs, lack of labor, etc., can significantly impact the real estate industry. Most experts believe that the gap in supply and demand started way before COVID-19 because everyone needs to be more flexible about their profit gains.

Labor shortageDue to wage issues across many countries, the availability of labor is significantly less, so the construction processes experience delays. The investors may find it frustrating to have to wait a long time for all the essential commodities to be available and may even halt the expected profit gains.

For example, if you decide to invest in a mall in an area that previously not having any mall and the construction experiences a delay because of lack of labor. Meanwhile, another competitor finishes their construction and operates the mall before you do. This would significantly impact your property sales as they might go differently than expected. You might have to fight extra with others to get into the labor force.

ConclusionWe can only guess what the year 2023 will bring for us, but the reality might be slightly different depending on the situation. Whatever the challenges, the property is still the most reliable sector of investment where the chances for a loss are minimal.

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SHOW NOTES FOR EPISODE 685: JUST GO FOR IT!Real estate investing does not have to be complicated! In today’s podcast, real estate investor and full-time employee James Ledbetter shares how he was able to build up an impressive real estate portfolio while still continuing to work full-time.

What You Will Learn* Real estate isn’t rocket science – but it is the perfect vehicle for the average person to become wealthy * How you can organically grow your real estate portfolio while working full-time * What a “Business Rental” is and how you can convert a residential house into one * How frugal living can accelerate your real estate wealth development * Why “Business Rental” tenants are better than residential tenants * How to get rid of difficult tenants without having to go through an eviction * Why it can make sense to cash out a retirement account early, even with the penalty

About Our GuestJames LedbetterTexas born & breed. Regular guy who works a regular full-time job as a banking compliance officer. Has been a real estate investor for a while. Grateful to be happily married AND blessed to be a dad of 2 teenage girls. Real estate investor & landlord (10 single-family rental houses) (1 ‘business’ rental house) (1 additional ‘business’ rental house in-the-works).

More About James* Talking real estate with like-minded individuals who, either stumbled into real estate or made a conscious decision to own residential rental properties is something he enjoys * Real estate investing is a vehicle that can help you reach several different goals and they don’t have to be the same for everyone * Four words, according to James, that describe his real estate investing journey: + Unsophisticated + Untraditional + Unconventional + Unorthodox + He says that because, as he has gone through this journey, tried to educate himself and learn from others, using the Internet, etc., he’s realized that real estate investors can come from many different molds - He says he’s a square peg for a round hole * Even though he’s enjoyed some successes in real estate, it’s not because he’s… + Very analytical + Sophisticated + Or has followed the recipe of other successful investors * He’s encouraged that there is more than one route to success in real estate

His First Property Purchase* As he got older, he realized he had to grow up and move out of his parents’ house * There was a house right down the street from his parents’ house, in Round Rock, Texas * He called the listing agent and said, “can you tell me how to make an offer, get a mortgage, etc…?” * It seemed cheap enough * He didn’t know anything about buying a house… + how to get a mortgage + But he wasn’t afraid to ask the questions to learn * He got referred to a loan officer by the agent + He got approved for the loan * The seller accepted his offer * As a single guy, in his late 20s, he purchased his first house in the 1990’s: + Approx. 850 sq. ft. house + Built in the 1930’s + Located only 3 doors down from the house he grew up in + Lived there as a bachelor for a few years + He still owns the house today! * Years later, he found his soulmate, got married, and decided to purchase another house for him and his wife in a nearby town without selling his first house + James and his wife moved into their house a few miles away and kept his first house as a rental * AND THUS BEGAN HIS RENTAL HOUSE/LANDLORD STORY. * He rented the house to regular residential renters for a number of years * But, as the area the house is located in became more “commercial,” he sought out a real estate agent that worked with businesses and told him about the house + Across the street was a funeral home + Down the street was a dentist + The agent started bringing by various potential business tenants * There were advantages of having a business in the home as opposed to a residential tenant + They stay longer, as they are trying to establish and build their business for the long term + The commercial real estate company he contracted helped him deal with the contracts and other complex items related to the lease and tenants - Tenants contact that company first + The tenant pays the utilities + Rent is paid through ACH – always on-time + The lease is a multi-year lease - The real estate company negotiated the multi-year lease with the tenant where the rent increases every year * Soon, a business tenant asked him if he could rent the house for his business + He was a financial planner working with Edward Jones financial company + The house turned into his first “Business Rental” + The tenant has remained there for a number of years

Growing His Portfolio* Even though he has a full-time job, he still continues to seek more properties * He also still manages his own properties himself * His W-2 income/salary helps him get loans * They live a very frugal lifestyle * When he has savings up to $20-30K, he’ll ask his wife if she minds if he starts shopping for a rental property + Then, he knows how much he has available for a down payment * He has heard that you are limited to 10 homes from most lenders but it hasn’t been an issue for him * He has been known to call every bank in a key region (Central Texas, Northern Texas or San Antonio) and ask if they would lend to him and has never had a problem * He currently has 10 single-family rental houses, 1 ‘business’ rental house and 1 additional ‘business’ rental house in the works

Biggest Mistakes* Allowing bad tenants to rent * He recently had to get rid of some horrible tenants at one of his properties * And, unfortunately, they are at one of his rental properties that is 4.5 hours away in San Antonio, TX + The long distance makes it more difficult * The good thing is that, since he started investing in real estate, he has never had to evict a tenant * He has had plenty of difficult/horrible tenants over the years but, fortunately, he has worked it out for them to leave without having to go through an eviction + Eviction is… - Costly - Wastes a lot of time + He has developed the skill to get rid of a problem tenant without having to go through the eviction process by… - Using the art of negotiation - Being savvy and smart + He then tries to “dust himself off” and try to find a better tenant

Biggest Successes* Keeping his full-time job while managing the properties * Keeping additional cash flow rental income coming in monthly * Living frugally * Paying off mortgages earlier + James had the good fortune of being able to paid off the mortgages on 4 properties

Advice for Old Dawgs Looking at Real Estate Investing to Help Them in Their Retirement Years* Consider liquidating an IRA or ROTH account. He did, and didn’t regret it. * James took $50K out of an employee 401-K * Paid the tax penalty * Used it to invest in more real estate rather than investments he doesn’t understand * IF you are a penny pincher like him, educate yourself for ‘free’ by using countless resources you can source online. No need to pay for expensive ‘guidance’ * You don’t have to get complicated or be real smart with your real estate investing. It’s easier than you think!

Current Real Estate Investing Business* He is currently in a “holding pattern” right now regarding his investing * He doesn’t see a need to add to his portfolio at this time * He is enjoying the process of paying off or paying down his mortgages and eventually owning his properties free and clear * He has also established lines of credit on properties he has paid-off… just in case

How to Reach James* Phone: 512-797-4708 * Email: emailledbetter@gmail.com * James says: “Call me! I love talking about real estate investing, and would relish the opportunity to help! No strings attached and of course FREE!”

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, or iHEARTRadio and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement, property management,

Check out our other podcasts at olddawgsreinetwork.com.

Get a free copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

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SHOW NOTES FOR EPISODE 684: MY 10 BIGGEST REAL ESTATE INVESTING MISTAKESEvery real estate investor makes mistakes. In fact, it’s an important part of the learning process. What’s important is what we learn from and do with these mistakes and how they help make us better investors. In this episode, Bill shares his personal top 10 real estate investing mistakes.

Introduction“Failure is the key to success; each mistake teaches us something.”

Mistakes are a gift. Without them, the learning process can take so much longer. But it’s always better, when possible, to learn from the mistakes of others. That’s why I always ask my guests to share their mistakes and lessons they’ve learned – to hopefully save you the personal pain points!

In today’s podcast, I will share my own personal real estate investing mistakes over the last 6 years, (which happen to match the mistakes of many of my guests) and how you can prevent the same from happening to you.

My guests have shared many different mistakes, all of which have been very helpful for me personally in my real estate investing journey. I have avoided a lot of potential problems because of their sharing their mistakes!

To be sure, there’s a lot that can go wrong when you invest in real estate. You can overpay for a property, buy in the wrong area, use the wrong lender or loan product, or overestimate your cash flow, just to name a few. The list of mistakes is far too long to discuss in this podcast. But here are 10 big mistakes you should know about and hopefully avoid in the future.

1 – Thinking too smallI spent approximately $150K on the cash purchase of 2 “Class C” SFRs and a “Class C” duplex which should have generated good cash flow based on my projections.

Then, after a year or 2, I borrowed against those 3 properties to get $100,000 down payment and $50K rehab to buy a 22-unit apartment

If I would have just skipped the first property purchases and taken the same $150K to buy a multifamily for $350,000 I would have made considerably more cash flow and, in a few years, instead of waiting 2 years and leveraging the 3 small properties, I could have gone straight for the 22-unit and leverage it in 2 to 3 years to buy a much larger apartment. Then, I would have established a track record as a successful commercial multifamily operator, been better positioned to attract investors and get bank funding.

I can’t tell you how many guests I’ve interview who went right for the multifamily properties first and then proceeded to scale so much faster.

2 – Investing in Cheap PropertiesWhen I started investing in rental properties, my first three properties (2 single family homes and one duplex) were all Class C properties. Having nearly 5 years experience with Class C properties, I have some strong opinions but I also want to now look at this class in light of current economic times and how the economy may affect these properties.

There are some real estate investors who seek out Class C properties because of the amazing potential in renovating and upgrading them. They allow real estate investors opportunities to enjoy a significant return on investment by making small improvements on the property. With proper upgrades, they can realize larger returns.

Even though a Class C property has an opportunity for strong cash flow if managed well, its potential for natural appreciation is usually very low or not to be expected due to the location. If you are looking for a capital gain, then investing in a Class C property may not be a good idea.

This type of real estate investment also carries higher risks since it will need more extensive improvements and ongoing management. One mistake many investors make when buying a Class C property is underestimating repairs and maintenance expenses. This can hugely affect their rate of return. With the type of tenants, property management will need to be more intensive. You will require greater oversight to deal with tenant problems, perform maintenance, and collect rent.

Financing can also be a problem when investing in this property class. Due to the poor condition of these properties, an investor often has fewer options for investment property financing. This can make pursuing a deal quite challenging compared to buying Class A or Class B properties. You may be forced to look for alternative sources of investment financing.

3 – Over-Estimating Cash FlowIf you buy a rental property that brings in $2,000 in monthly rent, and your monthly mortgage payment including taxes and insurance is $1,500, it may seem like the property should produce $500 in monthly cash flow. But that’s rarely the case.

One big mistake new real estate investors make is that they fail to budget for the unexpected — specifically vacancies and repairs.

At some point, your property will be unoccupied. It may only be for a few weeks between tenants, but it’s going to happen. This is why I encourage new investors to at least purchase a duplex as a first property, or, better yet, a fourplex. That way, if you have a vacancy, it only impacts one half of your cash flow with a duplex, or one forth, if it’s a fourplex.

That’s why, as a rule of thumb, it’d a good idea to set aside 10% of the rent to cover vacancies so you don’t have to come out of pocket to pay the mortgage when your tenants move out. When a tenant moves out, you have, what I call “turnover” or “turn around” expenses (painting/fixing things, replacing things like carpet or re-keying locks, etc.)

You’re also going to need to set money aside for maintenance and repairs over time. That’s for fixing clogged sinks and toilets, repairing leaky roofs, replacing light bulbs, servicing air conditioners, heaters, changing filters, and repairing appliances, etc. – not to mention replacing costly items like water heaters, HVAC, and appliances. Plan to set aside another 10% to 15% of the rent you collect to cover maintenance and repairs.

When calculating your expected cash flow, don’t forget to consider these expenses, or your projections aren’t likely to be too realistic.

4 – Avoid “Class C” PropertiesOne of my personal mistakes is that I purchased a bunch of “Class C” properties when I first started in real estate investing because they were cheap.

Class C properties are usually older buildings that are more than 30 years old with minimal amenities and outdated systems. In fact, they may have most of their original appliances and systems. Many of these investment properties show visible deterioration and often have deferred maintenance issues. Due to their poor condition, they tend to have lower upfront costs compared to the other property classes. However, they will often require more ongoing repairs and hands-on maintenance. As a real estate investor, you must invest some money in repairing the structure and mechanical systems. Some properties will require more than others and some will require significant renovation work before they can be expected to provide steady cash flows.

With all the negative characteristics of Class C properties, you may be wondering why an investor would want to invest in a Class C property. One aspect that makes a Class C property a good real estate investment is the low acquisition cost. They are cheaper than Class A and Class B properties and the rental rate is usually more than 1% of the acquisition cost. Therefore, the return on investment when investing in these properties is higher in terms of cash flow and cap rates. Out of all multifamily asset classes, these properties offer the highest potential for bigger cash flow. Since areas with this type of rental property tend to have lower-wage tenants, home ownership is usually a big challenge. Therefore, you will have a deep pool of renters if you decide to buy Class C properties for investment. If your real estate investment strategy focuses on cash flow, then Class C properties may be a good investment. With the right strategy, it can still very lucrative.

5 – Not Vetting Property Managers More CarefullyI just accepted that the property management that came with my turn-key properties was OK without checking them out first

Turn-key property managers should be carefully checked out in the same way you would screen non-turn-key situations

6 – Not Checking Out the Market BetterYou should always collect and analyze data on any potential market you are considering for investment. Ideally, seek out an “emerging market.”

• What are real estate prices doing in the area?
  • Going up
  • Declining
  • Stagnant
• What is the local job situation?
  • Job growth percentages up or down
  • Are new employers coming to the area
  • Is the market dependent on a single employer or industry
  • Get unemployment stats and trends
• What is the overall local economy?
  • Are businesses closing or moving out of the area?
  • Are commercial real estate values and office occupancy rates increasing
  • Are there “redevelopment plans?”
  • Does the city have a major “growth initiative?”

7 – Wasting Time with the Wrong Funding Source* This was one of my first big mistakes.

• Don’t think because it is a big name bank that that it will be your best source of money
• Know their funding requirements before applying
• Have good back-up sources before you are approved
• Make sure the lender is compatible with you and your plan
• Get a pre-approval before you start your search for a property

8 – Not having sufficient operational reservesHave a 6 month reserve, or back-up funding source, to cover maintenance and repairs expenses – especially if you are investing in “C Class” properties. This is not the same money you set aside for your value-add rehab or upgrade funds.

This can be costly as you struggle to cover expenses by creating additional debt

9 – Don’t Just Buy Only for Cash FlowIn the beginning, I only looked at cash flow. After all, my motto is “Cash Flow is King”

However, halfway through my investing efforts, I sought to build in the “equity factor,” buying properties that had “built-in” equity the day I signed the escrow papers.

In addition, I searched out “emerging markets” that further ensured a strong equity play

However, when I came to the end of my 6-year goal, it was the equity that allowed me to truly retire with confidence.

10 – Not Having a Mentor* I had done much research (reading books, listening to podcasts, attending boot camps, etc.) and felt I didn’t need a mentor and that I was ready to just get started

• Looking back, I see most of my mistakes could have been avoided if I had, first, sought out a good mentor to bounce things off before I purchased a property
• I trusted that my first “turn-key” properties were OK and skipped much of the normal due diligence. If I had a mentor, I could have run it my mentor first

Here Are a Couple of Bonus MistakesHere are two BONUS biggest mistakes, according to Old Dawg/Long-Time Investors:

• Not buying more
• Selling

Not buying more real estate! My most seasoned real estate investor guests all said the same thing! And, in an interview with Samuel K. Freshman, a Stanford Law grad who wrote the book on real estate syndication, and who has been investing in real estate for over 60 plus years said the same thing… My only regret is selling! He bragged to many of how he made a quick million selling an office building in downtown Los Angeles – he bought it for $1 million and sold it for $2 million. But he isn’t bragging today because, if he would have held on to the building today, it’s worth over $100 million!

Listen to his answer about his biggest mistake: 091: Real Estate Syndication for Dummies

In ConclusionThese are my “Big 10!” And, I’m sure, if you don’t already some of your own, you certainly will. It’s not a bad thing! Don’t consider mistakes a curse but a blessing! A free education, if you will!

Either way, it doesn’t mean you shouldn’t try to avoid mistakes as best you can –but understand — mistakes will happen. And when they do, learn from those mistakes, and chock it up to experience!

The bottom line! Learn from other people’s mistakes when you can. And when you do slip up, consider it homework, learn what needs to change, reengineer, do it better and reap the rewards!

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, or iHEARTRadio and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement, property management,

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By Mary Richardson Aspen

People are starting to invest more and more in real estate. The main reason is that it can be a very lucrative business. You can do it as a side job or make a living out of it. However, this doesn’t mean there’s no risk involved. Therefore, you should do a lot of research and develop a solid business plan. Apart from keeping up with real estate investing trends, it would be best if you also planned a way out. This way, you can reduce the risks and maximize your profits. Here are some of the best real estate exit strategies you should know about.

Things to consider before deciding on one of the best real estate exit strategiesThe truth is that there’s no such thing as the perfect real estate exit strategy. It all depends on your particular circumstances and your end goals. But in any case, there are some things to consider before making a decision. These will enable you to limit common risks involved in real estate investments.

• Market conditions are one of the first things to consider when choosing a real estate exit strategy. That is because some methods are not applicable under certain circumstances. Therefore, you should always do market research.
• Supply and demand are essential as well. You determine what clients are looking for and how much competition you have.
• Financing is something you should carefully consider. After all, you won’t be able to move forward without it. Thus, it’s essential to know your options.
• Your experience in the field is also essential. You don’t want to get in over your head. Thus, it would help if you opted for strategies with the knowledge and experience to apply.

1 – The traditional real estate exit strategyThat is usually the most straightforward real estate exit strategy you can apply. It involves buying a property and selling it for a higher price. Easy, right? Well, that’s not always the case. If you don’t make updates to the property, you might not find a buyer willing to accept your asking price. Therefore, make sure you don’t overprice it.

Furthermore, don’t expect to make a big profit. On the one hand, you can use this exit strategy as a starting point in your real estate investment venture. It will help you make some money that you can subsequently invest in a more lucrative property. On the other hand, you can apply it if you’re moving cross-state in California. After you hire movers to relocate and help you settle down, you can sell your old home. Then, use the proceeds to invest in a property closer to your new home.

2 – WholesalingWholesaling is one of the best real estate exit strategies because of its simplicity. You only act as an intermediary between a seller who wants to sell fast and a buyer willing to pay the right price. Of course, you still have to put in a bit of work. You must identify an undervalued property, place it under contract, asses it properly to set the right price and find a buyer. Once the sale goes through, the seller receives the initial price, the difference between the initial price and the selling price, and the buyer gets the property. Once again, it’s not about making a big profit but building up funds for your next investment.

3 – PrehabbingThe first two real estate exit strategies are some of the simplest. But they also don’t generate a significant profit. So, if you’re ready to get a more substantial return on your investment, you should consider prehabbing. That is a great option, particularly for beginner investors, because it’s less risky. You buy a distressed property and do only some minor repairs. These often include DIY activities like painting the walls and doing a bit of landscaping. Therefore, the costs are minimal. Once you finish, you sell the property at a higher price. Usually, you’ll have better luck selling to more significant real estate investors with the finances to continue the rehabbing process.

4 – Fixing and flippingTo make a more significant profit, fixing and flipping are one of the best real estate exit strategies. You buy aproperty below market value, renovate it, and then sell it for a higher price. But be advised that it’s not as easy as it may seem. You can’t just buy any fixer-upper. The location is significant.

Furthermore, you will need a good construction team to complete renovations promptly. Otherwise, you risk losing money instead of making money. You also considered hiring an experienced real estate agent who can find you a buyer quickly.

5 – Buying and holdingBuying and holding real estate has become very popular. You buy a property and then rent it out for a certain period. You can do this short-term or long-term, depending on your end goals. But either way, it’s very lucrative because you receive monthly cash flow. However, it would help if you considered the responsibilities you’ll have to assume as a landlord before renting out your investment property. After all, finding quality tenants and dealing with property maintenance and repairs can become stressful. Nevertheless, you can always hire a property manager to deal with all of that.

6 -BRRRBuy, Rehab, Rent, Refinance, Repeat (BRRR) is another excellent option. This strategy combines some of the previous strategies and can be very lucrative. You buy a distressed property at a low price, renovate it properly, and rent it out. Due to the rehab process, you can set up a higher rent. Thus, you’ll be able to recover your initial investment faster. Finally, you can take out a cash-out refinance loan, use the funds to buy a new property and repeat the process. The idea is to have patience because you won’t make money promptly. But in the end, it will be worth it.

ConclusionReal estate investing can be very lucrative, but it involves some risks. Therefore, you should do a lot of research and carefully consider your options. Now that you know some of the best real estate exit strategies, it’s time to develop an excellent business plan. That will help you maximize profits and minimize risks. So, don’t underestimate its importance.

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SHOW NOTES FOR EPISODE 681: MAKING BANK WITH MEDIUM-TERM RENTALS & INTERNATIONAL PET SITTINGIt’s one of the hottest real estate investing strategies today! In this podcast, medium-term rental expert, coach, podcast host, and author Zeona McIntyre shares how she discovered and became financially independent by investing in medium-term rentals.

What You Will Learn* Why medium-term rental investing is the best real estate investing strategy today * How you can start investing without buying a property * What makes out-of-state investing easy * How you can manage all your medium-term rentals while traveling the world * Why switching from short-term rentals to medium-term rentals can be more profitable * How to reduce your world travel expenses through house and pet sitting

About Out GuestZeona McIntyreZeona McIntyre has been an Airbnb host since 2012. After 10 years of managing short-term rentals across the globe, she has transitioned to selling Real Estate to investors looking to househack or live for free. She is an avid Real Estate Investor owning a double-digit portfolio of short and medium-term rentals. In the fall of 2022, she released the book: “30 Day Stay. An Investor’s Guide to Mastering the Medium-term Rental ” coauthored with Sarah Weaver. She teaches listeners how to achieve Financial Freedom through Real Estate on her Podcast: Invest2FI, co-hosted with Craig Curelop. She has been featured on BiggerPockets, Mr. Money Mustache, NPR, Business Insider, and more than 50 podcasts. Zeona has been to 47 countries. She spends half the year in Boulder, Colorado, and the other half traveling the world as an international pet sitter.

More About Zeona* Zeona is originally from Hawaii * Lives in Colorado now * Her real estate investing journey started in Boulder, CO (a college town) * She first heard about AirBNB in 2011 – it became popular in 2016 * She first heard about AirBNB from a friend who lived in New York City + He got laid off of his job + He had this super expensive apartment in NYC + He had heard about AirBNB and thought he could try it - He really wanted to just travel for a bit so he rented out his apartment on AirBNB while he was traveling + After a short time, he kept pestering Zeona to try doing AirBNB as well - She, at the time, was in massage school and trying to create a career and she said she wasn’t interest - After a year, he shared with her that he made $50,000 on an apartment that he didn’t even own * That got her attention – she never made that much money

Jumping in to AirBNB* She was 26 at the time, working for $15 an hour * She was renting a 2 bedroom apartment, that had a furnished 2nd bedroom where her roommate was just about to move out + She thought, this would be a good opportunity to try out this “AirBNB Thing” + It turned out to be so successful that she started renting her room out as well - She would do house/pet sitting to get out of the apartment * She started finding other apartments where she would do the same thing as an AirBNB arbitrage * It took her about two years before she could afford to buy an AirBNB property that she could own + It was a little one-bedroom condo in Boulder + She had been renting and re-renting a similar condo very close by for approximately a year and a half - So, she knew the area well and the seasonality of the rental peaks and dips * It ranged from $1,700 per month to $4,000 per month + It was very close to the college + The mortgage, HOA, etc. was only $950 per month + She liked owning better than renting because she was more secure - With rentals, the owner could cancel the arrangement at any time - She also wanted to buy more at that time because, when she bought the condo, the market was going up and her condo increased $100,000 in value in just 3 months

The Boost in Mid-Term Rentals* There is a new trend that is beginning * People who use AirBNBs are looking for longer stays * Since Covid, there are a lot more Digital Nomads and remote workers * The workforce in the U.S. used to be 7% remote workers + Today, its over 40% * There isn’t enough housing to accommodate this group * This niche is about to explode * They aren’t looking for short-term or long-term stays + They are looking for 30, 60, 90, 180 day stays * They don’t want to deal with furniture and move expenses every time they relocate * This is the group that Zeona and her new book focus on

The Advantages of Medium-Term RentalsWith the medium-term rental strategy, you will:

• Stop worrying about short-term rental regulations
• Handle less communication and coordination with renters
• Reduce expenses on supplies, cleaning fees, and more
• Simplify your bookkeeping and say goodbye to lodging tax
• Gain the ability to set your rates due to less competition
• Deal with less vacancy than long-term rentals and source higher profits with the right guests
• Use the property yourself or as a guest apartment when needed
• Find popularity in unusual locations (near a port, warehouse, etc.), allowing for cheaper property purchases
• Self-manage your properties from anywhere in the world with less hassle than short-term rentals

Expanding Her Portfolio* When she first started, she was living very frugally but she knew that would eventually change + She was financially independent with just one rental and one owned property - Her expenses were $2,500 and her net income was $2,500 - But she was concerned that the rental property terms could change because she didn’t own that one * She decided to purchase a property out-of-state in St. Louis (her other properties were in Colorado) + Buying out-of-state was a real leap of faith + She went to a friend’s wedding in St. Louis + At the wedding, she heard people talking about how low the rents were in St. Louis and this piqued her interest - Then, they said their mortgage was only $300 - Zeona’s mortgage was $1,100 a month for a one bedroom condo - The people in St. Louis were paying $300 monthly and were getting a 3-bedroom house! + She came back a month later and closed on her first property there - She bought on the edge of a gentrifying area that has done pretty well - The first house she bought, she rented out a room to a “property manager,” at a discount, who oversaw the the other tenants who rented rooms - A few years later, she went to rent out the whole house, as opposed to just renting by the room * She found that the quality of tenant that rents rooms vs. a house was very different + She eventually bought 4 places in St. Louis - However, she later scaled back down to one because the cheaper homes she was buying were in fringe areas or older, with lots of repairs and maintenance * Today, she is in 4 states: Colorado, Missouri, Florida and Washington * As AirBNB became more popular, there was more automation and software that made managing out-of-state-easier

Managing Other People’s AirBNBs* In 2015-2016, she couldn’t grow as fast as she wanted so she started managing other people’s AirBNBs as a co-manager + She didn’t have to pay anything to buy furniture, etc. + She split profits with the owners for managing it + She expanded it all over the U.S., plus 5 other countries + In every market she had a cleaner and a handyman + Otherwise, she did everything herself

Traveling* It was always a dream of Zeona to be a “Digital Nomad” (see episode #309) or have a job that wasn’t location-specific so she could travel * But she thought those jobs only went to tech people (engineers, programmers, etc.) * With her first AirBNB, she realized that most of what happens is virtual and that all she would need is a cleaner in the area * She saw how she could be anywhere in the world * The co-author of her book, Sarah Weaver, is a full-time Digital Nomad. + Sarah owns 19 units but has no home for herself * There are many countries you can go, where the U.S. dollar is still strong, and live like a king or queen * Zeona has been to 47 countries so far

International Pet Sitting* Very early on, she realized she made money when she was out of the house * This happened when she was renting out both of her first two AirBNBs * She started telling people (by word-of-mouth) that she was interested in pet sitting + Sometimes she got paid, sometimes she didn’t + Sometimes it was also a “house sitting” gig where she just got a free place to live for a while + Sometimes, though, the house wasn’t that great * She eventually found an app called “Trusted House Sitters” + You have an annual membership + It’s all over the world + There usually are pets that need sitting so they get free pet sitting too + And you get a free place to stay + She still does it today!

Biggest Mistakes* In the beginning, she hard on the cleaners of her AirBNBs on their pricing + She realizes now that it is better to pay someone a more to get someone that is good and more dependable, instead of being frugal * Also, in the beginning, she was very frugal in the furniture she bought for her AirBNBs + She didn’t have much money so she bought furniture second hand, on Craigslist, or garage sales + She now realizes it’s better to buy new, assemble and ship it + It lasts a lot longer + She used to have to fly out to her properties every year and a half to check on furniture and maybe do upgrades - Now she doesn’t need to do that

Biggest Success* Her ability to take risks has been beneficial to her business (i.e. her quick purchase of properties in St. Louis, etc.) * Too many people get caught up in “analysis paralysis” and end up never doing anything * You’re wasting precious time to build wealth if you’re always sitting on the sidelines

Advice for Old Dawgs Looking at Real Estate Investing to Help Them in Their Retirement Years* Zeona really loves the medium-term rental for cash flow * Retirees and seniors want cash flow too * Home prices are up – limiting the number of rentals you can acquire * Interest rates are up – seriously affecting mortgage rates and cash flow for longer term rentals * A lot of people are shifting from long-term rentals to furnished medium-term rentals for the cash flow * It gives you more flexibility to build up increased cash flowing assets * To get started, she recommends you get her book * The book is written, from A to Z on how to get started, with the intention that you will go get a property when you complete the book * If you need more, Zeona does 15-minute strategy sessions to address the nitty gritty details of buying that first property – she then can connect you with a vetted team you can work with in the market you are interested in

Current & Future Business* There is a lot of potential for medium-term rentals * Medium-term rental space is on the verge of exploding * There are a lot of opportunities * She is going to continue to slowly grow and pick up more properties * She is always refining what she has already owns * She feels she’s too diversified right now and may narrow down to less markets * She also has an interested in getting her own TV show

Rap-It-Up Favorite real estate book: The House Hacking Strategy by Craig Curelop * Favorite business book: Never Split the Difference by Chris Voss * Most valuable web site for success (other than your own): MrMoneyMustache.com * Favorite app: TrustedHouseSitters * Favorite quote: “You can go faster alone but you can go further with someone else.” * If you lost everything – all your assets – and had to start all over, knowing what you already know, and you only had $1,000, what would you do to re-launch your real estate investing business? I would rent a place to start. Then, I would rent and re-rent. Even if it’s just a one-bedroom or a room in a house that I’m renting from someone else, I would rent that place out and get out to do more pet sitting until I build up enough to buy my first place.*

How to Get Her Book On Amazon: 30 Day Stay. An Investor’s Guide to Mastering the Medium-Term Rental * On BiggerPockets.com: 30 Day Stay. An Investor’s Guide to Mastering the Medium-Term Rental (Get an extra 10% off if you mention her name – Zeona)*

How to Reach Zeona* Her website: ZeonaMcIntyre.com * Her Podcast: Invest2FI

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, or iHEARTRadio and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement, property management,

Check out our other podcasts at olddawgsreinetwork.com.

Get a free copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

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SHOW NOTES FOR EPISODE 682: CREATING YOUR 2023 STRATEGIC REAL ESTATE INVESTING PLANA good strategic real estate investing plan is critical if you hope to succeed as a real estate investor. In this episode, Bill shares why you need a plan in today’s economy and outlines how to write a 2023 Strategic Real Estate Investing Plan that will yield significant results!

IntroductionAs we approach year-end, I’m hoping you have already completed your 2023 Strategic Plan. If not, it’s still not too late!

If you have listened to this show for a while you know that at the end of every year, I push for you to create a new strategic plan for the new year. And if you are already do this every year – good for you! I know that you are seeing the results.

And, if you are just starting out in real estate investing, this could also be a great time for you to put your first strategic plan together. Or, if you are already investing, this is a great time to review where you are, where you’ve been and to plan where you want to be going! It’s important that you look ahead to what you need to do to reach your investing goals.

And, especially in light of the economy, recession and inflation, it’s more important than ever that your strategic plan list not only your goals and strategies for achieving those goals but to look at contingencies should there be radical shifts in the market or economy – your PLAN B, C, etc.

Developing a good strategic plan is critical if you are serious about real estate investing. Just buying a house here and there is not a plan. Or even saying I will buy one house a year. Your Strategic Plan puts your goals into perspective, helps define HOW you will achieve those goals and keeps you on track – to achieve your goals.

I know many of you will be creating your plan digitally on your phone, however, I’m and old dawg and prefer the old school method — buying a notebook – one with the clear slip covers so you can put 2023 Strategic Plan on it with relevant tabs. So you can start collecting all your data in one place.

I also love white boards (you don’t have to do this) and have a big one I use when planning where I can joint down random thoughts, ideas, goals, etc. to help me organize my thinking and ultimately the plan.

Don’t get hung-up on how it looks. You are not writing a doctoral thesis. It just has to work for you. But do take the time to map it out carefully so that your goals and objectives are realistic and achievable.

The First Step is Looking BackIf you are already investing, one of your most important steps, before writing your 2023 plan, is to look back at your current year before developing next year’s plan. You can gain great insight by looking back and assessing where you’ve been

Start collecting & compiling your data

Print out all your financials — all the financial tracking data. Profit and Loss statements. Balance Sheets. Rent Rolls. All of your income and expenses. If you don’t have those numbers readily available, its time to consider getting a financial bookkeeping program like QuickBooks or maybe even hiring a part-time bookkeeper. If you use Excel spreadsheets you can draw from that data but it’s best to have a way to easily track and generate reports that will help you continually assess how you are doing.

Also, look at other data pertinent to your real estate investing activities over the last year – look at your calendars, day timers, whatever records you had to get a good perspective of “The Year in Review,” so to speak. Where did you go? How did you spend your time? Track how many hours per week you spent on real estate investing education, mentoring, research, etc. Did you attend any industry boot camps or conferences? Did you listen to podcasts? Read books? Write down how much you spent on all these things (This also counts for your Real Estate Professional hours for the IRS!). Make records of your hours spent as well as how much money you spent on those activities – even mileage, as those are all legitimate tax deductions. Approach as if you are a reporter, writing about someone or chronicling a company. Dig deep.

Write down everything you can

Look at what you accomplished. Did you meet or surpass any of your goals? It’s time to celebrate your successes and learn from your failures. It’s OK to pat yourself on the back for your wins. Write them down. If something worked well, make a note and do more of it, but refine it to do even better. If you blew it, take the time to look at why you messed up, learn from it and either refine or kill it!

Paint a good picture of how your year went and write notes for what you would do differently in the year ahead — to do it better!

If you have not done anything yet but plan to get started in 2023, now is the time to look ahead.

Good Planning ResourcesI would recommend that you get some good books that will help you plan such as the The ABCs of Real Estate Investing by Ken McElroy, The Unofficial Guide to Real Estate Investing by Martin Stone, BiggerPockets The Ultimate Beginner’s Guide to Real Estate Investing (free), The Millionare Real Estate Investor by Gary Keller, Multifamily Millions by David Lindahl or The Complete Guide to Buying and Selling Apartment Buildings by Steve Burges. Also, listen to our episodes #006 – “How to Get Started in Real Estate Investing” and #010 on “Setting Your Real Estate Investing Goals.” Both are good primers before you write your plan. I will also be including a number of links from previous podcasts that will helpful on “Knowing Your Why,” “Setting Goals,” “Strategies” and other helpful topics

The Key Elements of Your Plan* Mission Statement * Goals * Strategy * Some sort of timeframe or timeline

Take note: this is not a Business Plan. A business plan is more formal and includes the following:

• Executive Summary
• Company Overview, Business Model, and USP
• Your Market Analysis and Specific Business Practices
• Marketing Plan
• Implementation
• Financial Plan
• Important Assumptions

You can get more formal if that helps you but I’m just saying… if you make it too complicated in the beginning, it may discourage you from continuing year after year. It just has to be focused but workable – a reference that you review on a daily or at lease weekly basis

Your Plan’s ElementsYour Why – This does not have to be formally written in your plan but you should know your why before you get started. For more detail, see episode #122 – The Importance of Knowing Your Why

Mission Statement — When people ask you what you do, what do you tell them? This mission statement should clearly define your purpose and should include the benefits your business provides. Do your research and come up with a solid mission statement. This is the “why” in your road trip.

Goals — Where do you want to go? What do you want real estate to help you to achieve? If your goal is to make $5,000 per month in passive income – write that down. If you goal is to flip four homes per month – write that down. These goals may change over time, affecting the rest of your plan – and that’s okay. Make sure to put down both short and long term goals. By setting smaller, more achievable goals, you’ll give yourself something to always look forward to accomplishing — this will help you stay motivated.

Strategy — There are hundreds of ways to make money in real estate – you don’t need hundreds. You simply need to pick one key strategy and become a master of it. That strategy (vehicle), if dependable, will carry you through to your destination (your goals). If you are choosing to wholesale or flip homes to generate cash in order to save up enough to purchase rental properties to eventually quit your job – write that down. If you are looking to build passive income from small multifamily properties for your retirement – write that down.

Time Frame — What is your time frame to reach your goal? Be realistic, but don’t be afraid to reach, either. Do you want to retire in ten years? Are you planning on quitting your job next month? Document your timeline here. You can do this in accordance with your goals, as mentioned above.

Market — Define your market. What kind of property will you be looking for? Low income? High Income? Commercial areas? As a beginner, choose an area you feel most comfortable with. Most new investors should plan on investing within a short driving distance to your home, rather than investing long distance (unless your location makes it impossible). Doing this will help you to become an expert in that area, which will help you more easily analyze deals and opportunities. It will also help you know the players in the area, which will ultimately help you find partners — and again, opportunities.

Criteria — Before you go out and start looking for deals, you need to really think about and determine the criteria which those deals must fall in. You’ll want to define your loan to value, cash flow requirements, max purchase amount, max rehab amount, max timeframe, etc. (these are all items you’ll pick up as we go further). One of the most important lessons you can possibly learn is to stick to your criteria and walk away from any deal that does not meet your criteria. It is very easy to become emotionally attached to a deal, but by sticking to your criteria, you take the emotion out of the picture.

Flexibility — If you are not finding enough deals to cherry pick from, you can change your market and/or strategy. This part of your plan is one of the most important to fully understand and clearly define. Too many new investors get excited and buy the first deal that comes their way. By having clearly defined criteria, you are able to easily reject the 99% of properties that are not a good deal.

Marketing Plan — How are you going to create a marketing system that will draw motivated sellers to you? How will you find the best deals that are listed? Will you use the MLS, agents/brokers, online searches, direct mail to lists, or other means of finding deals?

Financing Deals — How do you plan on purchasing your deals? Are you using conventional, hard money, private money, equity partners, seller financing, lease options, or some other creative method? Finding financing is often a challenge in today’s market, and private money provides a tremendous solution. Learn to attract private money, so you’ve always got a steady flow of finance when deals present themselves.

Your Teams — Clearly define your team and the systems you and they will use to delegate and automate tasks. Who will be on your team? Who is your broker, attorney, CPA, etc.? You don’t necessarily need to know who those people are, simply what roles you will need on your team. More on this below.

Exit Strategies & Backup Plans – Having multiple clearly defined exit strategies is one of the most important parts of your strategic plan, especially for new investors. How are you going to exit the deal? What are your backup plans? Do you flip, lease option, wholesale, bird dog, sell the note, sell the entity holding title, rent and hold, or some other technique? What is the end game? This needs to be clearly defined.

Financials — Include a personal description of where your financials are at today. What do you bring to the table? Do you have any equity you can use? Are you starting with nothing? Document your current situation and update it as often as it changes. As you move forward with your investments, it is always important to have at the ready your complete financials.

Summary

Don’t worry if you don’t understand everything yet or know how you’re going to accomplish everything in the plan. Remember, your strategic plan is a “work in process” that should get better and better the more you use it! It can and will change and evolve over time. As you learn through real life experience, you’ll revise, adapt and refine the plan to make your efforts more and more effective and profitable over time.

So, start researching, collecting data, buy your notebook and/or whiteboard and start the process. Remember… “A goal without a plan is just a wish.” So is a real estate investor’s hopes of being successful without a plan.

Additional References

• 368: Let’s Get Real About Goals
• How to Set and Achieve Your Real Estate Goals
• 010: Setting Your Real Estate Investing Goals
• 122 – The Importance of Knowing Your Why
• 508: Remembering Your Why
• 498: Best Real Estate Investment Strategies for a Covid Economy
• Top 5 Real Estate Investment Strategies
• A Beginner’s Guide to Real Estate Investing Strategies
• 347: Developing Your Real Estate Investing Action Plan for Maximum Success
• 058: Year-End Planning

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

Check out our other podcasts at olddawgsreinetwork.com.

Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

Additional Episode Sponsor: Meno Studio – menostudio777@gmail.com

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By Jenn Walker

When it comes to renovating your home, the changes you want to make may not always be the most financially rewarding. However, some renovations and updates can tremendously increase the value of your home so that if and when you decide to sell, you can get more than just your money back. So if you are trying to decide on a remodeling project, it is good to compare the potential value of the renovation with what it is going to cost you, allowing you to make the most financially responsible decisions concerning your home.

If you are looking to renovate your home but aren’t sure where to start, here are some of the best renovations you can complete to boost the value of your home.

Revamp the KitchenKitchens are an essential part of any home; it is where you cook meals, feed your family, and spend time with the people you love. With this in mind, an updated kitchen is a major selling point in any house, and most people put it high on their list of priorities when buying a home. Realtors estimated in 2019 that upon selling their house, homeowners can make back up to 52% of what they spent upgrading the kitchen.

Upgrade a BathroomBathrooms are one of the rooms we begin and end our days in, so having a home with a newly upgraded bathroom is a huge plus. Potential homebuyers are looking for bathrooms that feel fresh and clean, so getting rid of old tile and outdated countertops can completely change the atmosphere of the room. According to the National Association of the Remodeling Industry, it is estimated that homeowners can recover up to 57% of the cost of renovating a bathroom.

If you have an older home, you may want to consult with a plumber about the kind of work the pipes in your home might need. Upgrading a room like a bathroom is about more than just making things look nice, you also want to be sure that everything is functioning well too.

Add an AdditionAdding to the structure of your home will increase the square footage, naturally increasing the value of your home overall. Depending on the addition you can also make up for things that your original home may lack. For example, by adding a bedroom and bathroom to your house you can increase its marketability a lot; what once was suitable for a family of three could now house four. You can also use it to add to existing rooms, such as adding an ensuite bathroom to the master bedroom or expanding the kitchen to accommodate more storage. However you choose to utilize this space, you will want to consider how valuable it will be to others when you go to sell your home.

Improve your Outdoor SpaceHaving an outdoor space that can be enjoyed by you as well as guests is a great part of your home to invest in. Whether you are adding a patio, a porch, or landscaping to your backyard, an outdoor space can add a relaxing aspect to your home. The possibilities are endless; from an outdoor bar to a swimming pool, utilizing the area outside of your home can add value to the selling price as well as your own experience living there. Many potential buyers are looking for a home that is set apart from the rest and will be willing to pay more for a unique addition to the yard.

Make It More AccessibleAccessibility is important to any building, but making your home more accessible will make it more appealing to guests and potential buyers. By creating a space that is accommodating to individuals of all ages, sizes, and physical abilities you will increase the number of people that could purchase your home in the future.

Some helpful accessibility modifications can include replacing stairs with ramps, installing a stair lift or elevator, adding handicap-friendly bathroom features, and more. Not only does this renovation improve your home’s ability to be sold, but it also makes it a safer space for any of your own guests who are not as able-bodied as others.

Choose Updates That Make You HappyWhile selling your home at a higher price than you put into it is always a good goal, remember that you will also have to live with these renovations. It is good to weigh both aspects before starting your renovation project to ensure that you get the most value out of your investment.

Jenn Walker is a freelance writer, blogger, dog-enthusiast, and avid beach goer operating out of Southern New Jersey.

Photo by Blue Bird – pexels.com

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SHOW NOTES FOR EPISODE 681: HOW TO DITCH THE 9-TO-5 JOB WITH MULTIFAMILY INVESTINGDo you feel like there is an alternative career plan out there for you? What if you didn’t have to sit in a cubicle or a home office desk for 40 plus hours a week? In today’s episode, real estate investor, entrepreneur and author Pam Scamardo shares how she broke free from her cubicle 9-to-5 job by investing in apartment communities!

What You Will Learn* How it took Pam Scamardo only two years to become financially independent by investing in commercial multifamily properties * Why your first real estate investment should be a property with 5-units or above * How she wrote her book in only 4 hours! * The reasons why commercial real estate investing is better than residential real estate investing * How to quickly grow your portfolio without having to use your own money * The importance of mindset in creating a successful real estate career

About Our GuestPam ScamardoPam is an “Alumni Guest” and has previously appeared on two episodes:

• 279: Engineer Quits Job in Only 2 Years With Apartment Investing – Jan. 28 2019
• 409: Before You Quit Your Day Job… – April 27, 2020

Respected as a leader in the multi-family investing space, Pam Scamardo is dedicated to helping the industry evolve. She is an author of Create Wealth – How to Ditch the 9-5 Job Through Multifamily Investing which was recently published on Amazon a couple weeks ago. Through her various professional and community roles, including her recent appointment as CREW Network Board Director for the 2021-2022 term, Pam has been an advocate for investors at all stages. One of the most common misconceptions in the multi-family investing space is that it is reserved for the ultra-wealthy. Over a decade ago, Pam learned first-hand that you don’t need to be a millionaire to start investing in apartments and commercial real estate. At the time, she was an aeronautical and mechanical engineer, and had been employed by highly respected companies such as Lockheed Martin, Boeing and UTC Aerospace. Through her multi-family investments, she quickly gained a new title – job optional. For Pam, this meant that her investments were sustaining her financial needs and she no longer had to work – but rather, she could choose to work. This pivotal shift led Pam to launch her first company, TPK Properties, which helps syndicate apartment building investments.

More About Pam* Former aerospace and mechanical engineer * Got tired of sitting in her cubicle * Got assigned great tasks but with that came longer days, longer hours * Found financial independence through multifamily investing * It took two years, 3 properties and 6 investors to get financial independence * She has grown her investments even more today * Her success has also prompted her more to give back * She is still acquiring properties, teaching and is now an author

Writing Her Book* 2021, she was home sick for 14 days with Covid during the holidays + She was quarantining home alone for Christmas and New Years - She binge watched every show - Cleaned the house twice - Caught up on paperwork, bills, etc. - She ordered food she wanted to try + She thought, “What else can I do to be more productive?” * She started consolidating all of her thoughts into a Word doc + Blogs and articles she has written + Before she knew it, she had hundreds of pages of content + In just FOUR HOURS, she had written a book! * Then, she started thinking, “What am I going to do with a book?” + That’s when she started making spreadsheets on what to do next + She started getting excited about it – fun, exciting, new and scary at the same time * Next, she tried to find a publisher + It was like trying to acquire a new property - Going in and out of escrow - Pitching investors + She pitched herself to over 150 literary agents/publishing houses - “I’ve got a unique real estate book from a female perspective.” - Got all “nos” - One person said, “Since you starting out with no track record, try self-publishing on Amazon first and then, let’s talk!” * So she contacted a few friends that were writers/editors and they helped her! * She self-published the book this year! * And now she has two literary agents courting her

What’s in the Book?* Peter Harris (a good friend of Pam’s and of Bill) wrote the foreword to the book + Peter was her mentor (also was a mentor to Bill) + He is a good friend + A fellow real estate investor * In the book, Pam highlights the 12 steps she took to become financially independent through multifamily investing 1. Assessment + Emotionally + Financially + Physically 2. Education 3. Group Events, Seminars, Workshops 4. Networking 5. Mentors/Coaches 1. Should you get a mentor or coach? 2. Don’t expect free hand-outs 6. Partner Up 7. Investment Criteria 1. How she invests 8. Property Search 9. Lenders 10. Analyze 11. Offers 12. Exit Strategy * At the beginning of each chapter, she shares a personal story * At the end of each chapter she gives 3 key tips + This is for those who may not want to read word for word * She ends the book by listing her own personal goals

How and Why She Got Started in Real Estate Investing Her first purchase was a 6-unit building * The reason she chose a 6-unit is because she wanted to accelerate her growth by starting* with commercial real estate * If she bought a fourplex, it is not considered a commercial property (only 5-units and above are considered “commercial” – a fourplex is considered “residential”) * Later, she bought a fourplex but it was a big mistake for her that she regrets now * The reasons she chose commercial over residential + With residential… - …eventually you will tap out of your capital (you are only allowed 10 doors) - …you will tap out of your credit score – the credit bureaus heavily base your score on the property performance + With commercial, as you build your track record… - …the lending terms are more favorable - …they look more at the property’s performance and not at you personally - …you can get a non-recourse loan (which means the bank won’t go after you personally if things go badly) - …it’s less emotional – it’s all about the numbers! - …you can scale up faster * She had the 6-unit for one year and then bought the fourplex + She bought it because it was so cheap – only $79,000 - It was a lesson learned – don’t buy with your eyes or just your pocketbook * After the fourplex she bought a… + 10-unit + 16-unit + 24-unit + and just kept going up from there + She just wanted to buy one more unit than the previous property

Mindset is Important* If you don’t believe in yourself, no one else will * She had a lot of rejection starting out in real estate and even more in trying to publish her first book * But she feels that the rejection actually helped make her stronger and more committed than ever * Fear doesn’t disappear but you learn to work along side of it * And always be honest + She was honest with every lender she talked with + She would say, “I know I’m new and just starting out but I have a plan that I’m going to stick with, I won’t give up and I’m very tenacious!”

Recent Multifamily Investment Transactions* Right before the interest rates got hiked up, she took four existing apartment communities, re-financed, cashed-out, paid-out to all the investors in those properties and turned them into net-returns + This means, investors no longer have their own capital sitting in the deal + There might still have a mortgage but the mortgage is paid by your rental income + Would she do this again with 4 re-fis? No! It was a very stressful exercise - It took about a year to close! She started in 2020 and finished in 2022! - She was tenacious - Her investors were really happy!

Her Criteria* She wants to syndicate 100units * She wants to stay below where the institutional investors go (300-units and above) * She no longer knows her tenants but mainly stays in contact with her property managers * She has mostly been investing on the West Coast but is now looking at Tampa or somewhere in the Florida market + She is working with Sharelle (and her female team), from the Netflix series “Selling Tampa” + Also looking in Michigan and Texas

Organizations She Works With* She is a Board Director with C.R.E.W. (Commercial Real Estate Women) that has the mission to advance women globally in the commercial real estate arena + Not just multifamily investors - They have members in escrow, lending, appraisal, etc. + It’s a group that has women lifting up and supporting other women + C.R.E.W. has over 12,000 members globally + She was in Hawaii (during the interview) trying to launch the 78th chapter of the organization * She is also the Director of the Center for Real Estate at Cal State Fullerton + One of the largest business programs at the college + She is trying to help the college to get a real estate major established + She is trying to get a real estate concentration there to help students connect with Orange County commercial and residential real estate companies + She voluntarily works with the Dean of the College of Business and Economics

How to Get Pam’s Book To get Pam’s book, Create Wealth: How You C*an Ditch the 9-5 Job with Multifamily Investing, click HERE!

How to Reach Pam* Website: PamScamardo.com

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, or iHEARTRadio and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement, property management,

Check out our other podcasts at olddawgsreinetwork.com.

Get a free copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

Episode Sponsor: Meno Studio – menostudio777@gmail.com

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SHOW NOTES FOR EPISODE 680: HOW TO REDUCE REI RISK IN TOUGH ECONOMIC TIMES Real estate is not without its risks!  They are real enough in their own right.  From bad tenants to bad cash flow to bad contractors to natural disasters.  But how do you reduce risk in a bad economy?  In today’s episode, Bill shares 12 ways to mitigate the risks of real estate investing in today’s economy. Introduction As I mentioned a...

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One of the most elusive and desirable real estate opportunities is the “off-market property”.  This is a property where there is generally a motivated seller, but the property has not been broadcast on the MLS (Multiple Listing Service) or Loopnet.com and does not appear on any of the national or local real estate sites that “re-broadcast” the MLS and commercial properties. Savvy investors and specialty real estate companies covet a property where...

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SHOW NOTES FOR EPISODE 679: PASSIVE INVESTMENT OPPORTUNITIES WITH AIRBNBS Buying, operating and running a successful AirBNB/Short-term-rental (STR) is anything but passive.  You must work hard and be committed to making it work on a daily basis to succeed!  In this episode, ex-techie, real estate investor, and AirBNB owner Sief Khafagi shares how investors can now enjoy the high returns of STRs as a strictly passive investor! What You Will Learn How you can own AirBNBs/Short-term-rentals (STRs) and...

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SHOW NOTES FOR EPISODE 678: IS NOW A BAD TIME TO INVEST IN REAL ESTATE? Is now a bad time to invest in real estate?  It’s a fair question. If you’ve been following economic news — or even just gone shopping for groceries lately — it’s obvious the economy is hurting. In today’s podcast, Bill will take a look at what is going on with the economy and how that affects real estate investing....

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The internal rate of return (IRR) is one of the more preferred rates of return used by real estate investors trying to measure a rental property’s financial performance.  This is because it calculates the time value of the money.  It is defined as a discount rate at which the net present value of a set of cash flows equals zero. Here’s the idea.  IRR is the rate of return an investor can...

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SHOW NOTES FOR EPISODE 677: TAKING MULTIFAMILY TO THE NEXT LEVEL The difference between stumbling blocks and stepping stones is how you use them. In today’s podcast, successful multifamily real estate investors, authors and entrepreneurs J. Scott and Ashley Wilson share how they are taking challenging projects, within a challenging economy, and successfully transforming them up to the next level. What You Will Learn Why multifamily investing is the best place to invest during a recession...

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SHOW NOTES FOR EPISODE 676: 17 BEST HABITS OF HIGHLY SUCCESSFUL REAL ESTATE INVESTORS There are certain attributes and habits successful real estate investors share that are an integral part of their success.  In this episode, Bill shares 17 of those best habits and discusses how you can incorporate these habits into your everyday real estate investing activities for success now and in the future. Introduction As I have looked at various properties in...

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By Amelia Lopez If you are reading this article, you are probably planning to move into a new house or have already built one and need clarification on whether you may or may not install innovative technology to make your home a smart home. Well, you have landed on just the right site. What is Smart Home Technology? A smart home is more like a remote control home where the actions performed...

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SHOW NOTES FOR EPISODE 675: CASH FLOW THROUGH PRIVATE LENDING Some real estate strategies don’t work well in today’s economy but there is one that thrives!  In today’s podcast, real estate investor, author, private money lender and founder of Pine Financial Group Kevin Amolsch shares how he has found a niche that produces great returns in any economy. What You Will Learn How you can generate great cash flow lending or investing in...

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SHOW NOTES FOR EPISODE 674: GETTING REAL WITH REAL ESTATE Real estate investing is truly the best way for the average person to become wealthy.  However, don’t be deceived!  It doesn’t mean it will be an easy journey.  In this episode, Bill shares his personal experience and how he learned the hard way that real estate investing is not “easy money” and how you can better prepare! Introduction For those of you who missed...

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By Evelyn Long Land is the one thing they aren’t making more of, which explains why it’s a favorite investment among the elite. Housing is a basic necessity of life. People also need places to meet and eat, shop, conduct commerce, and entertain themselves. If you’re considering adding to your portfolio, you might ask if now is the right time. You have many factors to consider besides your budget. Where and when are...

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SHOW NOTES FOR EPISODE 673: UPDATE ON 1031 TAX DEFERRED EXCHANGES 1031 Exchanges are one of the greatest tools of wealthy real estate investors, but is it true the government is taking them away?  In this podcast, real estate investor, 1031 expert and senior vice president of Asset Preservation, Inc Scott Saunders shares the inside scoop of how the 1031 Exchange benefits real estate investors, other great tax hacks and the truth about the...

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NO SHOW NOTES FOR EPISODE 672: IMPORTANT SPECIAL ANNOUNCEMENT! In this episode, Bill makes a very important special announcement about the podcast.  There are no show notes for this episode.   IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, or iHEARTRadio and Subscribe, Rate & Review our podcast.  This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement,...

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Commercial real estate has many tools that can be used to maximize one’s return on investment (ROI).  Among the many tools to choose from, leverage is one of the most effective ways to limit (or omit) the amount of personal money you put in a deal, and see the highest return possible. In order to understand leverage in commercial real estate, you must completely understand what it is, and the main factors...

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SHOW NOTES FOR EPISODE 671: REAL ESTATE INVESTING OPPORTUNITIES IN CANADA Despite global economic challenges, there are still great real estate investing opportunities in Canada!  In today’s podcast, entrepreneur, author and real estate investor Matthew Ablakan shares how he became a real estate mogul by investing exclusively in Canadian Real Estate. What You Will Learn How to invest in real estate while still in high school – without a mortgage and without a full...

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SHOW NOTES FOR EPISODE 670: FIVE KEY REAL ESTATE INVESTING TRENDS FOR 2023 Recession, inflation, rising interest rates, and post-Covid recovery are just a few of the issues real estate investors will be dealing with in 2023.  In today’s episode, Bill will be looking at five key trends where real estate investors can still find profitability and great returns amidst the economic roller coaster. Introduction The last few years have witnessed a series of crises in the real...

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By Jenn Walker Renting out your investment property can be a great option for making cash on the side, or as a full-time commitment. However, there are important factors to consider before making the decision to become a landlord. Prior to getting started, you’ll want to do some research into protecting your investment and making smart choices throughout the process. Here are some things to keep in mind before renting your property...

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SHOW NOTES FOR EPISODE 669: HOW TO GROW YOUR PORTFOLIO TO 1,500 in 5 YEARS Success in real estate investing can be as simple as just having the right mindset and unrelenting persistence. In this episode, podcast host, marathon runner and real estate investor Jason Yarusi shares how he applied competitive running principles to go from bartender to real estate tycoon — all in just 5 years. What You Will Learn Why buying...

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SHOW NOTES FOR EPISODE 668: INVESTING IN FRACTIONAL REAL ESTATE A new real estate investment strategy that allows investors to invest as little as $5 is quickly gaining interest!  In today’s podcast, Bill explores “fractional real estate investing” where investors can participate at reasonable amounts yet enjoy their investment as a vacation rental as well. Introduction As I’ve mentioned numerous times on this podcast, real estate is one of the best ways to significantly increase your...

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Buying rental properties can be a great way to build your wealth.  However, as in most real estate investment, it is sometimes difficult to know if you’ve found a good deal – especially the first time.  Here are some things to look for to be sure that rental is a great investment. 1. Location If traffic is heavier, rentals are easier to rent.  A sign will often pull more response than an...

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SHOW NOTES FOR EPISODE 667: GENERATING CASH FLOW AND EQUITY WITH INTERNATIONAL LAND FLIPPING How would you like to generate cash flow and build equity with just a laptop and a phone from anywhere in the world?  In today’s podcast, Australian entrepreneur and real estate investor Alicia Jarrett shares how she generates great real estate income from anywhere in the world without having to deal with tenants, toilets and trash! What You Will...

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SHOW NOTES FOR EPISODE 666: ARE REITS A GOOD HEDGE AGAINST RECESSION? The great thing about REITs is that they’re required to pay at least 90% of their income to shareholders as dividends.  And as such, because REITs tend to pay higher dividends than your average stock — that alone could help you get through a recession!  In today’s podcast, Bill looks at the pros and cons of REITs and how they...

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By Amelia Lopez Every property owner’s primary goal while building their home or office space is to create a theme  that makes them happy, comfortable and safe with a hint of style and attractiveness. However, it can be costly to achieve the desired interior of your dream home or a suitable and spacious plan for your office. But what if, with the right tools, you can create a stylish design on a...

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While a good many millionaires will agree that their fortunes were made in real estate, the honest ones will also tell you that they’ve probably lost a few fortunes in real estate along the way.  This can be a risky business and every property purchased doesn’t always pan out to become a successful investment.  There are many risks involved in real estate investing and you would be going to battle unprepared if you...

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SHOW NOTES FOR EPISODE 663: FINDING OPPORTUNITIES IN ADVERSITY WITH REAL ESTATE INVESTING From punk rock producer to owner of the largest apartment complex in America, Jorge Newbery has experienced both extremes of success and failure.  In today’s podcast, you’ll hear how he lost 10s of millions of dollars and how he recovered and prospered! What You Will Learn How Jorge grew his real estate portfolio from a fourplex to the largest apartment complex in America Why...

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SHOW NOTES FOR EPISODE 662: EFFECTIVE REAL ESTATE INVESTING STRATEGIES FOR TODAY’S VOLATILE ECONOMY The expression “Desperate times calls for desperate measures” means actions that might have been rejected under other circumstances may well become the best choice.  In today’s podcast, Bill takes a look at today’s volatile economy and presents specific real estate investing strategies that can be both profitable and prudent. Introduction If you’ve listened to this show for any amount of time, you...

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Purchasing an apartment complex as an investment is a fantastic way to watch an asset single handedly generate thousands, even hundreds of thousands of dollars in a very short amount of time! A popular investment strategy, especially for new investors, is to purchase a more run down, mismanaged apartment complex at high cap rates.  The cap rate, or capitalization rate, is found by dividing the Net Operating Income by the Purchase Price....

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SHOW NOTES FOR EPISODE 661: HOW TO GET YOUR MONEY BACK FROM WALL STREET Was your retirement account hit hard this last year?  What if you could get all that you lost back and then some?  In today’s podcast, real estate investor, entrepreneur, author and martial arts expert Damion Lupo shares how he and other investors are taking control of their retirement accounts for total financial freedom. What You Will Learn How broker fees, commission and...

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SHOW NOTES FOR EPISODE #660 – MOST VULNERABLE U.S. HOUSING & FORECLOSURE MARKETS An economic shift is occurring across the U.S. but it’s not the same in every market. How can a real estate investor know where to invest?  In today’s podcast, Bill spotlights U.S. counties where foreclosures are high and examines others that are at high/low risk of declining values. Introduction The number of “foreclosure starts” — which is when the first...

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Your debt-to-income ratio (DTI) is a simple way of calculating how much of your monthly income goes toward debt payments.  Lenders use the DTI to determine how much money they can safely loan you toward a home purchase or mortgage refinancing.  Everyone knows that their credit score is an important factor in qualifying for a loan.  But in reality, the DTI is every bit as important as the credit score. Lenders usually...

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SHOW NOTES FOR EPISODE #659 – BEST OF OLD DAWG’S REI NETWORK PODCAST – BUYING PROPERTIES WITH LITTLE OR NO MONEY DOWN WITH BRANDON TURNER Did you know that you can acquire real estate with little or no money down?  In this episode, real estate investor, podcaster, author, entrepreneur, and speaker Brandon Turner shares how he got interested in real estate investing and further discusses how real estate investors can acquire properties for little...

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SHOW NOTES FOR EPISODE 658: THE PROS & CONS OF REAL ESTATE SYNDICATION INVESTING With the ups and downs of the stock market, coupled with a highly volatile economy, real estate investing has emerged as the leading investment choice for many investors.  In today’s podcast, Bill examines the pros and cons of one of the more passive forms of real estate investing – syndication investing. Introduction Many people are attracted to real estate investing because it’s...

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By Mary Aspen Richardson Investing in real estate can be lucrative but also challenging. It doesn’t always require a vast financial investment, opportunities are numerous, and it helps you create an extra income stream. If you’re successful, investing can become your primary source of income! Sounds great. However, it does require some know-how and effort on your part. Also, you need to be financially stable and invest some money and time. Having...

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SHOW NOTES FOR EPISODE 654: 5 COMMON MISTAKES REAL ESTATE INVESTORS MAKE Mistakes are a gift.  Without them, the learning process can take so much longer.  But it’s always better when others share the mistakes they’ve made and lessons learned – saving you the personal pain points!  In today’s podcast, Bill shares 5 common mistakes he and other real estate investors have made and how you can prevent the same from happening to you. As you know if...

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By David Dixon One of the best ways to diversify your investments is to get into the short-term rental property market. When you invest in a short-term vacation home rental, there are many amazing possibilities to grow your wealth long term. Before making this decision, however, be sure you’ve answered these critical questions, as well as explored the many pros and cons outlined by Redfin, so you can be confident that your investment will pay...

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SHOW NOTES FOR EPISODE 653: REAL ESTATE LEGAL ISSUES IN TODAY’S ECONOMY Lawsuits are definitely something real estate investors want to avoid. But did you know that lawsuits increase significantly during inflationary and recessionary cycles?  In today’s podcast, attorney, real estate investor and entrepreneur Scott Royal Smith shares how you can avoid the onslaught of frivolous law suits by doing just two things! What You Will Learn Why, when economies are struggling, is there...

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SHOW NOTES FOR EPISODE 652: I’M BAAAACK! Retirement is definitely a new season in a person’s life.  Some people embrace it.  Others consider it a dirty word.  And still others just ignore it.  In this episode, Bill shares how he finally came to terms with his own retirement as he launched a 32-hour transplant road trip leaving California to move to beautiful Tennessee. Hey fellow old dawgs!  Man I have missed you guys! However, hopefully...

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Properly underwriting the value of an apartment building is critical to finding and making great deals. Generally, a bank will use three different ways to assess an apartment asset’s value. The sales approach The replacement approach The income approach The sales approach – looks at other comparable properties and what they have recently sold at in the area.  Like residential real estate comps. The replacement approach looks at how much it would cost to create...

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SHOW NOTES FOR EPISODE 651: HANDS-OFF REAL ESTATE INVESTING With increasing inflation and recessionary concerns in today’s economy, many investors feel that the only wise place to invest is in real estate.  In today’s podcast, author, public speaker, real estate investor and CEO of Praxis Capital Inc. Brian Burke shares how and why passive real estate syndications have become a leading investment strategy. What You Will Learn How to invest in real estate with absolutely no money Creative...

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SHOW NOTES FOR EPISODE 650: HOW TO FIND BELOW MARKET PROPERTIES One key strategy for real estate investing success is finding good investment properties that are priced under market value.  However, in today’s sellers market, finding these “diamonds in the rough” can be challenging.  In today’s podcast episode, Bill shares some tried and true strategies that will help you both identify and acquire these properties. Finding below market value homes for sale is entirely possible. ...

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By Evelyn Long When renting an apartment, a tour is essential for many people. It helps them envision if they can call the property home, so ensuring you provide an efficient apartment tour is vital. Here are a few tips to help you get started. 1. Set Up Your Time Blocks Having set time blocks can create a more efficient process. It can allow you to schedule more tours in one day....

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SHOW NOTES FOR EPISODE 649: RICH DAD ROBERT KIYOSAKI REVEALS WHY THE RICH ARE GETTING RICHER Have you ever wondered why you work so hard, save and invest, yet never seem to get ahead financially?  In this episode, Rich Dad Poor Dad author Robert Kiyosaki talks about why most people never  get out of the rat race.  He also talks about his book, Why the Rich Are Getting Richer and why we need to prepare for...

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SHOW NOTES FOR EPISODE 648: JUST DO IT! One of the most difficult things for new real estate investors is just taking that first step – making that first purchase.  In today’s podcast, Bill shares how he made his first purchase and explores some of the common obstacles many new investors encounter that prevent them from investing and how you can overcome those challenges. Tip of the week: FIVERR.com FIVERR is a great online resource...

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Why would you buy investment property without seeing it?  It’s a numbers game.  Whether or not you see the property before you make an offer isn’t nearly as important as making sure the numbers make sense. A man in California used to just send out offers on a hundred MLS listings at a time, offering 25% less than the asking price on each one.  Occasionally a few sellers would accept his offers....

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SHOW NOTES FOR EPISODE 647: LONG DISTANCE REAL ESTATE INVESTING USING THE BRRRR METHOD He went from full-time cop to reluctant landlord to avid real estate investor to top producing real estate agent to best selling author to podcast host to real estate mogul – all within the last ten years.  In today’s podcast, David Greene shares his amazing story of how he learned how to be a successful real estate investor by mastering unique...

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SHOW NOTES FOR EPISODE 646: HOW TO RETIRE IN 5 YEARS Real estate investing can be the key to an early and fruitful retirement for those who are willing to put in the time and effort.  It’s especially effective if you have a full-time job, can aggressively save and ramp up quickly to build up your real estate holdings.  In this episode, Bill shares a simple formula anyone can use to build a retirement rental property portfolio...

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One of the most troublesome aspects of being a landlord is tenants who damage your property, from a few broken items to blatant disregard to total destruction, and even worse.  There are plenty of horror stories around about what tenants can do to a rental property. Sometimes a security deposit cover it.  Other times you have to take the tenant to court.  In either case, it either eats up valuable turn-around time...

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SHOW NOTES FOR EPISODE 645: LESSONS LEARNED FROM A NEWBIE INVESTOR He built his real estate portfolio to 16 units in less than one year while working a full-time job, launching a blog and starting a new podcast.  In this information-packed episode, Bo Kim, an accountant and newbie investor, shares his “young pup” insider secrets for the Old Dawg Network that helped him explode his real estate portfolio almost overnight, all at the ripe old age...

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SHOW NOTES FOR EPISODE 644: A BEGINNER’S GUIDE TO MAKING MONEY IN REAL ESTATE When it comes to investment, real estate has proven to generate some of the highest returns.  However, many people  are unsure about how to get started.  If you are a newbie investor, you can invest in income property in a multiple of different ways- directly, indirectly, with a bad credit score, with no credit, or even with no money-...

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By Rhonda Underhill Moving homes is a monumental feat, no matter what age you are. But it is perhaps even more of an achievement if you’ve decided to do so post-retirement because it doesn’t fit the conventional way of doing things. Furthermore, you may be experiencing new home jitters just because it is so unfamiliar to you. If so, Old Dawg’s REI Network explains how to get settled in quicker Getting your...

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SHOW NOTES FOR EPISODE 643: AFFORDABLE MULTIFAMILY INVESTING What happens when you own 23 single family rental homes and are still barely breaking even?  For author, educator and real estate investor with 50-plus years of experience Jay DeCima, he rolled up his sleeves and re-engineered his investing strategy to create a very profitable niche that virtually no one knows.  In this engaging two-part interview, expect to learn a lot from this seasoned REI vet. What...

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SHOW NOTES FOR EPISODE 642: HOW TO BECOME A REAL ESTATE INVESTOR FOR ONLY $500 How much money does it really take to become a real estate investor?  $500?  $5,000?  $50,000?  Or, does the amount of money even matter if there is no motivation?  Too often, we use the money issue as an excuse for inaction.  In this podcast, Bill addresses the motivation issue as well as sharing  multiple strategies a newbie real estate...

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Many people tend to get caught up in real estate trends reported in magazines, newspapers and on television.  This is not a wise idea. With the advent of the Internet, you can learn just about anything on a particular subject.  While access to information is usually a positive development, things can conversely get a bit crazy if you get overloaded with it.  Look long enough and you can find two pieces of...

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SHOW NOTES FOR EPISODE 641: FINANCIAL FREEDOM ONE RENTAL AT A TIME He started with $40,000 and leveraged it into a real estate empire — all while working full-time.  In this information-packed podcast episode, real estate investor, coach and author Michael Zuber shares his story of how he conservatively grew his rental portfolio, one house at a time, to financial independence, all with an understanding of the numbers, a single market focus and...

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SHOW NOTES FOR EPISODE 640: HOW TO ACQUIRE PROPERTIES WITH NO OR LITTLE MONEY DOWN Can or should you try to put as small a down payment as possible on an investment property?  Can you still acquire investment properties for little or no money down?  In this podcast, Bill explores these questions and shares information on where you can obtain loans that require little or no down payment. Before I show you how to acquire...

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By Jenn Walker Are you interested in entering the world of commercial real estate (CRE) but don’t know where to begin? From the outside looking in, commercial real estate seems like a complicated net of real estate terminology and finance jargon that only those with strong business acumen can understand. However, this is not the case! Understanding the ins and outs of CRE investing seems daunting at first, but anyone can become...

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SHOW NOTES FOR EPISODE 639: CREATING MULTIPLE STREAMS OF INCOME A wise real estate investor creates multiple streams of income to hedge their bet in challenging economic times.  In today’s podcast, real estate investor, author, coach, and entrepreneur Dustin Heiner shares how he has created multiple streams of passive income that can generate a river of income in any economic season! What You Will Learn How you can bec0me “successfully unemployed” Why you should never manage your own...

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SHOW NOTES FOR EPISODE 638: 9 REAL ESTATE INVESTING TIPS FROM BILLIONAIRES Most billionaires preserve their wealth by investing in real estate.  Even if they didn’t obtain their wealth through real estate, they know the value of real estate to grow, maintain and sustain their wealth! In today’s podcast, Bill shares 9 tips from billionaires who know and use the power of real estate investing to grow their wealth. Introduction We know there are billionaires...

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By James Ledbetter I convey this story not to impress anyone but simply to convey that time sure does race by when you’re a real estate investor! My First Rental Property It’s 1995 and I’m 26 years old and about to purchase a $57,000 house three doors down from my dad’s house where I lived in as a teenager.  I suppose I was motivated by the need to ‘act like a grown up’,...

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SHOW NOTES FOR EPISODE 637: RENTING HOMES OUT FOR $2,500 A DAY – PART 2 Do you know how to make 15X return on short-term rentals over long-term rentals?  If not, then you won’t want to miss this second part of a two-part podcast series!  Today’s show features healthcare professional, real estate investor, wife, mother and real estate coach Dr. Rachel Gainsbrugh who will continue sharing how she is able rent out her single family homes...

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SHOW NOTES FOR EPISODE 636: A REBOUND IN RETAIL REAL ESTATE? When Covid hit, the real estate market restaurants got crushed and offices and retail got hit even harder.  But, in a recent survey by Crexi, signs of a turn-around are emerging.  In today’s podcast, Bill takes a deep dive into the numbers to see if growth is on the horizon. When Covid hit, the real estate market did all kinds of interesting things. ...

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By Jenn Walker Financial investments can be an excellent way to grow your wealth, but it also comes with several risks that require patience and adaptability. Some of the most common investments include stocks and the housing market, and although they may seem accessible to some, there often comes a time when the volatility of an investment means it’s wiser to pull out than sit on it and potentially lose money. There...

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SHOW NOTES FOR EPISODE 635: RENTING HOMES OUT FOR $2,500 A DAY – PART 1 Did you know you can make 15X return on short-term rentals over long-term rentals?  If not, then you won’t want to miss this podcast!  Today’s show features healthcare professional, real estate investor, wife, mother and real estate coach Dr. Rachel Gainsbrugh who will share how she is able rent out her single family homes for as high as $2,500 A DAY!...

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SHOW NOTES FOR EPISODE 634: HAS THE U.S. HOUSING MARKET FINALLY PEAKED? This has been one of the hottest real estate markets in decades but there are finally signs that the market may be starting to cool.  In today’s podcast, Bill shares insights and expert opinions on whether the market has finally peaked… or not! Introduction This has been one of the hottest real estate markets in decades! Buyer demand has stayed strong...

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About 72% of renters have pets. As a landlord, it’s up to you to decide if you want to allow animals on the premises. While some markets make it a necessity to stay competitive, some landlords have been burned by pet damage in the past. How do you know what the right policy is for you? Having a flexible pet policy expands your tenant pool. On the other hand, it can cause...

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SHOW NOTES FOR EPISODE 633: ASSISTED LIVING HOUSING FRANCHISES 10,000 people turn 65 years of age EVERY DAY and that’s just one reason why the residential assisted living industry is booming!  In today’s podcast, Certified Franchise Executive and CEO and Co-Founder of Majestic Residences Franchise System Chuck Bongiovanni shares new investment opportunities available in the lucrative senior residential assisted living space. What You Will Learn How franchisees and investors are making $10,000 per month...

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SHOW NOTES FOR EPISODE 632: CONFESSIONS OF A FORMER ACTIVE REAL ESTATE INVESTOR Many new investors think the only way to become a real estate investor is by investing in rental properties.  In today’s podcast, Bill shares how he believed the same thing, learned some hard lessons along the way and, to help others, provides key warnings for investors seeking the rental property route. Introduction If you have listened to this podcast for any amount of...

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The most troublesome aspect of being a landlord is tenants who damage your property, from complete trashing to total destruction, and even worse. There are plenty of horror stories around about what tenants can to a rental. And, if you think finding a good tenant depends on luck, you couldn’t be more wrong, or else why don’t you work to ensure luck favours you, at least, in relation to the right choice...

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SHOW NOTES FOR EPISODE 631: HOW TO WORK WITH A REAL ESTATE BROKER TO FIND BETTER DEALS With property prices rising, along with increasing interest rates, you need to know how to find the very best deals — but how?  The best investors get the best deals (and often at below market prices) from brokers they already have a solid relationship with.  In today’s podcast, real estate investor and managing broker of Gardner Property Group Cory...

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SHOW NOTES FOR EPISODE 630: HOW TO PREPARE FOR A HOUSING MARKET CORRECTION It’s not a matter of if but when the housing market will correct or even crash! But what does that mean for real estate investors and what can you do to prepare and leverage when it does happen?  In this episode, Bill shares both the risks involved and opportunities available for savvy investors who are well prepared. Introduction Recently a group...

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By Brittany Fisher If you find the hustle and hubbub of urban life are beginning to wear, it may be worth considering moving to a smaller, slower locale. Towns and minor cities often provide much of the same amenities but with less traffic, people and intensity – they can also make for great investment locations. Here are some tips to consider as you plan your move. Finances One of the key advantages...

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SHOW NOTES FOR EPISODE 629: REAL ESTATE INVESTING OPPORTUNITIES IN PANAMA Have you ever wanted to own your own vacation rental in a beautiful exotic location and or live abroad in a great affordable vacation spot where you can invest in lucrative real estate deals all day long?  In today’s podcast, real estate investor, former Rich Dad Advanced Trainer/Educator and founder of My Panama Vacation Realty Evie Brooks shares how Panama is not only a great...

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SHOW NOTES FOR EPISODE 628: RECESSION-PROOF REAL ESTATE INVESTMENTS The impact of inflation has affected every aspect of our society.  But what about real estate investing?  In this episode, Bill shares specific real estate investing strategies that thrive during recessions and inflationary times. Introduction Everyone is talking about inflation these days. Knowing that products and services you buy are going to cost more can be frightening, especially if you’re locked into an income that doesn’t keep pace with...

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I often get the question, “What do I look for in a neighborhood?” My answer is always the same.  “Easy.  Value!” I usually get a strange look, but it’s true.  In a neighborhood, I am looking for clues to assess the value of the property, plain and simple. Well, maybe not so plain and simple, I know.  So let me explain. Normally, rehab properties are not in the expensive areas of town. ...

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SHOW NOTES FOR EPISODE 627: HOW TO GET MORE RENTAL INCOME FOR YOUR BUCK During inflationary times, increasing your rental income is critical.  But what if you could double, triple or even 5X your rents?  In this episode, real estate investor, CEO and co-founder of HomeRoom Co-Living shares how he was able to convert a 3-bedroom 2-bath house to accommodate multiple roommates and leverage that into a multimillion dollar real estate enterprise!...

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SHOW NOTES FOR EPISODE 626: INTEREST RATE INCREASE RESULTS IN 12% MORTGAGE DECLINE The Federal Reserve’s interest rate hikes are starting to make a dent in our hot housing market.  As rising rates have pushed home prices even higher, mortgage applications dropped 12% last week compared to the week prior and were 15% lower than the same week one year ago.  In this episode , Bill will share what this means for the housing...

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By Jenn Walker Securing your first rental property can be a thrilling experience, but once your name is on the building, the true work of being a landlord begins. If you’ve never been a landlord before, the responsibilities that come with the role might be overwhelming at first, and you might not be sure of what it means to be a good landlord in the first place. There’s no need to panic,...

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SHOW NOTES FOR EPISODE 625: HIGH YIELDING ALTERNATIVE REAL ESTATE INVESTMENTS Where can you invest in pre-vetted solid real estate investments and get a 12% return — without being an Accredited Investor and for as little as $10?  In this episode, Harvard MBA and JD, real estate investor, entrepreneur and CEO of Groundfloor Brian Dally, shares how anyone can get great returns with short-term investments and little cash. What You Will Learn How you...

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SHOW NOTES FOR EPISODE 624: THE MOST AND LEAST AFFORDABLE U.S. REAL ESTATE HOUSING MARKETS Less than half of the homes sold are affordable for middle-class Americans, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.  But there are still markets that are affordable!  In this podcast, Bill will share key markets where homes are both affordable and undervalued, as well as markets where homes are the least affordable. EDUCATIONAL OPPORTUNITY Getting a good education...

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What tenant wouldn’t love the allure of high speed Internet and a computer of their very own? This is one of many incentives that investors and property owners are offering in order to retain or reward long term tenants. There are other rewards that are just as effective and cost property owners a little less in order to keep the tenants, such as gift cards to restaurants after the renewal of a...

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SHOW NOTES FOR EPISODE 623: PASSIVE INVESTING IN TODAY’S ECONOMY In the wake of 2020 alone, central banks across the globe created more than TEN TRILLION DOLLARS — all out of thin air.  Inflation is here and those who are interested in protecting their wealth MUST be invested to thrive.  This is one of those massive wealth adjustment moments in history.  In today’s podcast, author,  full-time real estate investor, and founder of Asym Capital Hunter Thompson...

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SHOW NOTES FOR EPISODE 622: FORECLOSURES UP 132% – HOUSING CRASH OR MARKET CORRECTION With foreclosures up 139% over a year ago, inflation at a record high, and mortgage interest rates on the rise, are these signs that a housing market crash is the horizon?  In today’s podcast, Bill examines what these numbers are really telling us and whether we need to have cause for concern. Introduction As I was reading through real-estate data this...

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Start your real estate market research with the U.S. Census information about a town. You want to invest in a town that is growing, especially if you are investing in income properties. It’s getting easier to do this now, with all the information available online. Just go to the official U.S. Census site at www.census.gov. If you call the chamber of commerce, or the local department of economic development, they may have...

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SHOW NOTES FOR EPISODE 621: COST SEGREGATION REAL ESTATE STRATEGIES The good news is that real estate is selling at record profits.  The bad news is you have to pay taxes on those profits.  In today’s podcast, real estate investor and cost segregation expert Erik Oliver shares how unique tax reduction strategies are saving investors tens of thousands of dollars on single family homes through large multifamily properties. What You Will Learn The definition...

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SHOW NOTES FOR EPISODE 620: REI THROUGH CROWDFUNDING – WHICH ARE THE BEST SITES? If you’re not quite ready to invest in real estate syndications, crowdfunding might just be a great training ground.  For as little as $10, you can invest in residential and commercial real estate projects across the U.S. and get great returns.  In today’s podcast, Bill shares some of the best crowdfunding sites of 2022 according to Investopedia. Introduction Real...

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By Evelyn Long Despite all of the positives that can come with renting out properties, one of the downsides is sorting through all of the applications for potential applicants. It’s arguably one of the most important roles of a landlord or property manager. Ensuring your properties are inhabited by responsible and reliable tenants is key to a successful rental property on all fronts. Renting properties to the right tenant makes everyone’s life...

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SHOW NOTES FOR EPISODE 619: TAKING HOME BUILDING TO THE NEXT LEVEL – QUALITY HOMES IN 3 TO 5 DAYS! Electric cars  Cryptocurrency.  Mobile applications.  The future is here!  And real estate is no exception.  In today’s podcast, former Navy seal, Stanford engineer and real estate developer Garrett Moore shares how technology has made it possible to build a home in just 3 to 5 days! What You Will Learn How existing technology...

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SHOW NOTES FOR EPISODE 618: IS A REAL ESTATE MARKET CRASH IMMINENT?  5 PROS MAKE PREDICTIONS Aspiring home buyers and investors may have watched as mortgage rates in recent months rose along with home prices.   But it all begs the question: What will ultimately happen to the housing market in 2022 and are we approaching a crash?  In this episode, Bill shares his own thoughts and the opinions of 5 top experts. Introduction The...

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People purchase houses for many different reasons. Some people buy houses to improve on the property, and get a good return on investment from it. Other people buy property to sell on. For whatever reason they buy a house or property, they would like to see their home improvement value. Estimating your home improvement value is fairly easy. Raising that value is just as easy if you know what to do, and...

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SHOW NOTES FOR EPISODE 617: KNOWING HOW TO RIDE MARKET CYCLES Raging inflation.  Rising housing prices.  Stock market uncertainty.  How can you invest in real estate markets when there is such chaos?  In today’s podcast, experienced real estate investor, co-founder and managing partner of Trion Properties Max Sharkansky shares how his successful investment strategy used during the great recession is helping him to successfully invest in today’s market. What You Will Learn How...

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Do the creative real estate financing techniques you hear about really work? Yes and no. They likely have all worked somewhere for someone at least once. The important point is to understand the principles involved, so you can find your own creative ways to invest in real estate. Here are ten methods to get you thinking. 1. Use Hard Money Lenders Ask around or find these online. These lenders specialize in short-term...

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SHOW NOTES FOR EPISODE 615: A NEWBIE’S INVESTMENT JOURNEY Taking that first step is sometimes the most difficult task for any new real estate investor. In today’s episode, former Hollywood actor and advertising executive Ian Gilligan shares how he got interested in real estate investing, overcame some big challenges and eventually moved into financial independence.

What You Will Learn * How to find and invest in an emerging market * Why real estate investing is the perfect business start-up * The importance of surrounding yourself with people who are doing what you want to do but are more experienced and talented * Why he moved from Hollywood to central Texas * How the BRRR strategy is also the very best education for new real estate investors * The importance of treating your real estate investing as a business from the very beginning * How Ian is helping his parents with their retirement as he lays the foundation for his own retirement

Intro I talk a lot on this show about the importance of education to your success as a real estate investor. And, I’ve also said, the real education begins not with the training courses, home study courses, boot camps, books, podcasts, webinars, etc. (although they certainly help) but the REAL education begins when you sign your first set of escrow papers for your first investment property.

Well, we’re doing something a little different of today’s show. Most of the time we feature people who have gone from humble beginnings to massive success. Well, today’s guest is someone I actually first met in Haiti while we were serving there as missionaries. Years later, we stayed in contact and he ended up getting into real estate.

He is a person who has done all the research and has boldly taken the critical first step! The way he is moving forward, I’m sure he will be back on the podcast but it will be more on how be amassed his first billion.

About Our Guest Ian Gilligan Ian Gilligan is a 33 year old real estate investor living in Waco, TX. With a background in the entertainment industry, Ian’s interest in real estate investing was piqued after listening to an episode of the Old Dawg’s REI Network Podcast back in 2018. A year later, he purchased his first single family home in Dayton, OH. After recently stepping down from his full-time job in entertainment marketing, he purchased 3 more homes in Dayton, OH in the last 3 weeks, is finishing up a flip in Waco, and is taking steps towards actively wholesaling in McLennan County, TX.

More About Ian * Born and Raised in San Diego, California * Grew up doing theatre and acting * Moved to Los Angeles when he was 19 * Got into acting in Hollywood for a number of years * Found out it was not his passion so he got out of acting * Got into advertising * In 2018, he listened to the Old Dawg’s REI Network Podcast for the first time because he Bill and his family from a Haiti missions trip he went on * He found the podcast with Robert Kiyosaki and listened to it and a few more episodes * After that, he was sold on real estate as an investment and how smart a move it would be financially * After about 6 months, he found a good potential market to invest in (with Bill’s help) in Dayton, Ohio * In 2019, he bought his first rental property in Dayton

Why He Chose Dayton * One of the reasons he liked Dayton is because he was studying emerging markets and saw Dayton as a market that was poised for increased prices and market activity * As he looks back, he can see that he was right and prices have gone up significantly since 2018 * He still sees it as an excellent market where prices are continuing to increase * He is now very familiar with the market and has a team in place (property manager, agent and contractor) * All the pieces were in place to ramp up

Making the Move to Texas * He was sitting in his house during the summer of 2020, just a few months into the pandemic * He had already bought his first two properties in Dayton * His company said that he could work remotely from anywhere * The thought of owning his own house and house hacking really appealed to him * But he knew that he could never do it in Los Angeles because the homes are so expensive * Timing wise, it seemed like the perfect time to do that * He had some friends that were looking to move to Waco and there was a church there they all liked * He ended up moving down to Waco, buying a house, rehabbing it and renting out rooms to some of his friends * Initially, Ian was going to have a short stay in Waco, rehabbing a house and working remotely * He ended up loving living there * He also liked the numerous investment opportunities in Waco (in total contrast to LA) to buy long-term cash flowing rental properties * Also, he liked the quality of life in Waco * Waco has gone up in price since 2018 for a number of reasons: + Baylor has done a lot to boost the area + It’s located right between Austin and Dallas (some of the fastest growing cities in America) * He wants to continue buying in Waco * The rental market is very strong * He tried to buy a house at an auction in Waco + One of the properties he wanted to bid on, for some reason, didn’t show up at the auction + A few days later, a friend of Ian’s sent him a screenshot of a property he saw that popped up on a local Facebook page for local real estate investors in Waco - It was the exact property he wanted to bid on in the auction that never showed up - Apparently, a local wholesaler got a hold of the property - It didn’t make sense for Ian to buy it from the wholesaler - It looked like the wholesalers likely made $30K on the assignment fee for that house * That incident affected Ian in a number of ways + It made him want to find his own off-market leads + If these guys can do it, Ian figured he could do the same + He figured he could hold the good ones for rentals and wholesale the others

Finding Off-Market Properties * Ian has been focused on get the lists of distressed sellers + Foreclosure lists from County Clerk’s office * If you can be the first point of contact for these sellers, you have a pretty good chance of working with them * The trick is getting to them first

What Helped in the Beginning? * He had an initial education phase that lasted around 6 months * At 3 months, he felt like he had enough education for him to need at that point + He realized, that the next phase of his education had to be the “hands on” investing type of education – learning by doing! * He had a great broker in Dayton (Ryan Ingram) that helped him out a lot in the beginning + See our interview with Ryan on episode #461 + Ian wanted to surround himself with other people who have been successful in real estate or in aspects of real estate - Ian didn’t know anything about rehabbing * He found good contractors - He did the same with other real estate investors, lenders, property managers, etc.

Biggest Mistake * He wished he would have put more effort into setting up his real estate investing right as a business * He wishes he would have had the conversations with his CPA and attorney to focus on foundation business things and systems

Biggest Successes * Surrounding himself early on with people much more knowledgeable and experienced in real estate investing than he was * He also was glad that his first deal was a BRRRR strategy + You hit all factors of establishing a successful rental property investment - Buy – You learn about researching markets, analyzing properties and the whole purchase/acquisition side - Rehab – It needs work so you have to learn all the aspects of rehabbing, construction, etc. and coordinating a rehab team - Rent – You become a landlord and have to learn how to find and keep good tenants - Refinance – You learn the whole money part – banking, credit, fees, interest rates, etc. - Repeat – You learn how to apply everything you’ve learned to your next acquisition – and can do it even better! + He was able to pull money out of that first deal to buy the next one

Advice for Old Dawgs Looking at Real Estate Investing to Help Them in Their Retirement Years * First you need to ask yourself some questions: + What’s your pain threshold? + How involved do you want to be? - It’s not terribly complex but it is a lot of hard work + How much effort do you want to put into this? * Once you can answer those questions, you can determine your level of involvement: + I’m all in and roll up your sleeves and go + I’m interested but will need help: - Find a partner or partners - Find a young person who has the time and energy to do the time-consuming stuff + I want to be a passive only investor - Invest in syndications - Be a hard money lender

Plans for the Future * He wants to make sure his parents are set for retirement – help them build up their portfolio * He also wants to grow his own portfolio so that it can sustain itself + If one of his properties, 6 months from now, were to take a bad hit, for example, because some tenants trashed the place, that could hurt pretty bad right now + But, when he has 10 or 20 properties, later on, that wouldn’t hurt as bad and he could recover fairly smoothly * Once he “earns his stripes,” he would like to syndicate some deals * He wants to become known as a “trusted operator” + He has private money he has borrowed and it starts with them! * He wants to hold onto his properties as a hedge against inflation and taxes and to hold on to maintain great rates for his long-term debt

Rap-It-Up * Favorite Real Estate Book: Long-Distance Real Estate Investing by David Greene * Favorite Business Book: The 12 Week Year by Robin P. Moran * Favorite Website for Success: BiggerPockets * Favorite App: Things to-do list * Favorite Quote: “I am the way, the truth and the life. No one comes to the Father except through me.” – Jesus Christ * If you lost everything – all your assets – and had to start all over, knowing what you already know, and you only had $1,000, what would you do to re-launch your real estate investing business? … I would buy a computer and go to the first real estate meet-up I could find. I would pay for the appetizers. And then I would just start working the room..”

How to Reach Ian * Email: ianrgilligan@icloud.com

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

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SHOW NOTES FOR EPISODE 614: INVESTING IN FARMLAND AS A HEDGE AGAINST INFLATION One year ago, the average price of gasoline in the United States was around $2.11. Now, it’s more than $4. Used car prices are up over 25 percent. However, inflation can have an equally impactful effect on your portfolio’s risk profile and investment value. In today’s podcast, Bill looks at how investments in farmland can not only offset the impact of inflation but can yield high returns as well.

Introduction One year ago, the average price of gasoline in the United States was around $2.11. Now, it’s more than $4. Bacon prices are up 20 percent from last year. Used car prices are up over 25 percent. It’s fairly easy to notice the impact of inflation when buying groceries or making major purchases. However, inflation can have an equally impactful effect on your portfolio’s risk profile and investment value.

Cash (your everyday workhorse) * It’s one of the most important things to have available in uncertain times * It’s a great tool in your toolbox * If there is a deflationary event, you’re going to need cash for many different reasons * To buy assets at a discount * As a stability factor in your portfolio, too * It’s your stabilizer * Buy more gold and silver

You can buy more cash flow producing assets * Buy more assets for growth * You can always deploy if there’s a boom or a massive inflationary shift * Always have cash on hand – and not in the bank! * He’s very nervous about banks * The nature of banks is going to change very quickly * Banks have the right to keep your funds in the event of a major crisis

Infinite Banking Strategy * He “decentralizes” himself from the banking system working through insurance policies * Metals (your war horse) * Gold & Silver * Your defensive play * Your wealth insurance – especially when you start to see massive wild card events (major deflationary event, etc.) * Gold has been money for centuries * Silver is probably the most undervalued asset right now of all asset classes

A Cash Flow Portfolio (your race horse) * Your monthly income + Multiple diversified streams of income - Real estate - Resort properties - Businesses that focus on - Necessities (food, clothing, etc.) - A business that can relieve people of their problems during tough times (weekly co-living, cheap rentals) - Luxuries, too (some will seek these items in tough times) - Energy businesses - Go for different sectors and niches – DIVERSIFY! - Airbnb/Short-term rentals

Let’s dive into inflation, how it’s caused, and how farmland has historically protected investors against it.

A synopsis of what causes inflation

The Federal Reserve defines inflation as an increase in the prices of goods and services over time. Inflation can also be thought of as a decrease in purchasing power of a specific currency. As prices of goods and services rise, it takes more money to buy the same quantity as before.

Inflation hasn’t always been considered a bad thing, however. Prior to World War II, politicians openly promoted creating inflation to benefit domestic manufacturers, producers, and industries tied to natural resources. It wasn’t until after the Second World War and the rise of consumerism that sentiment around inflation began to change.

Although inflation is commonly seen in a negative light, it usually occurs as a byproduct of good intentions. During periods of economic downturn, unemployment tends to rise as consumers spend less, businesses are less profitable, and workers are laid off.

The government can intervene with monetary policy or fiscal policy; expansionary monetary policies like lowering the central bank interest rate or fiscal policies like stimulus checks act to promote economic activity.

The general theory is if more people and businesses have money to spend, fewer people will be unemployed.

The risk, however, is that these policies may generate inflation in several ways. First, demand-pull inflation is created when consumer demand suddenly exceeds production. For example, with millions of Americans having received multiple stimulus checks, consumer demand severely outpaced the production of gaming consoles, causing supply shortages and secondary market pricing pressure.

Second, cost-push inflation occurs when the cost to produce something rises. As the labor and material expenses to cultivate crops rises, those price increases are felt when people go grocery shopping as those costs are passed to the consumer.

How inflation is measured

Because of its complexity, there are several ways of measuring inflation, and those methods have even changed over time. The most widely used measurement is the Consumer Price Index (CPI) produced by the Bureau of Labor Statistics (BLS). The BLS gathers pricing data through direct data collection and surveys of American households.

The household surveys also gather information on the quantities of what is being purchased so the CPI can be weighted towards more popular goods. For example, the price of food (13.98 percent of the CPI Index in late 2021) holds more weight in the index than airline tickets (0.58 percent of the index).

“Farmland’s value can appreciate while simultaneously generating operating cash flow. Agriculture is vital for survival, and food will always be in demand.”

-FarmTogether

Another method of measuring inflation is the Personal Consumption Expenditures (PCE) index. The Bureau of Economic Analysis (BEA) collects data on prices from the BLS, consumers, corporations, and quarterly GDP statistics.

Since the PCE measures the change in prices for all items including those not paid out-of-pocket by consumers, this creates a different weighting system than the CPI. For example, the PCE index weighs health care costs twice as heavily as the CPI since households often do not pay the full cost of their healthcare. Though the Federal Reserve cites inflation using the PCE index, the CPI is often widely cited as it is generally more relevant to the general public.

The current state of inflation

In response to the COVID-19 pandemic, the federal government increased the U.S. money supply by $6 trillion. By materially changing how much United States currency circulates, this economic stimulus has resulted in higher inflation.

The CPI rose to 6.2 percent in October, a rate of inflation that has not been higher in the past 30 years. The 0.9 percent rise in prices from September to October was also greater than government expectations. The PCE index has risen to 4.4 percent, and the index has increased every month since the spring of 2020.

With prices rising and purchasing power decreasing, people have taken notice. Eighty-eight percent of Americans are concerned about it, while 81 percent of investors state inflation is their top concern. More S&P 500 companies are mentioning inflation during their earnings calls than any time in the past decade.

Although the Federal Reserve’s normal target for inflation is 2 percent, one in three institutional investors believe inflation will not normalize below 3 percent by the end of 2022. There’s also growing sentiment on whether the Federal Reserve’s practice of holding interest rates low for so long is the best idea, as the number of wealthy investors that strongly disagree with the Federal Reserve’s transitory approach to inflation more than doubled in just one month.

Should this much attention be given to inflation and its impact on investing? It depends on your portfolio, as inflation has impacted various asset classes differently in the past.

Public companies reliant on labor, raw materials, or other variable costs have traditionally faced rising expenses during inflationary periods. Fixed-income bonds lose value as their coupon payments remain steady during periods of currency devaluation. Safer investments in cash or cash equivalents deteriorate in value through reduced purchasing power.

Several various alternative assets have protected portfolios against rising prices in the past, with farmland emerging as a strong candidate worth considering to hedge against inflation.

How farmland has hedged against inflation

Let’s take a closer look at why farmland has traditionally performed exceptionally well during periods of high inflation.

Positive correlation to inflation

Over the past several decades, farmland returns have moved in strong correlation with rising prices. Farmland has historically held a 70-percent correlation to the CPI and an almost 80-percent correlation with the Producer Price Index. Agriculture investments have also had a stronger relationship to inflation indexes than traditional investments. In the past, commodities had a stronger correlation to inflation than U.S. equities, international equities, bonds, real estate, and gold.

Real asset

Real assets provide several unique benefits during inflationary periods. First, investment returns for real assets have historically been higher during these times. Real assets outperformed traditional assets from 2001 to 2020 during periods of higher inflation. Second, real assets have a history of nominal price growth over time. Since 1987, the nominal value of farmland has decreased year-over-year only once. Ignoring the impact of rising prices due to monetary supply, real assets had a tendency of preserving value over the past several decades.

Asset scarcity

The United States lost 11 million acres of arable farmland over the past two decades, and total international arable farmland is projected to decrease by 250 million acres by 2050. As farmland continues to become more scarce, the asset class creates a natural inflation hedge that protects the value of the deflationary asset.

Other fixed-quantity investments like precious metals or fixed supply cryptocurrencies claim the same argument: if the supply of an asset remains relatively stable or decreases, that asset may retain value simply because of its scarcity.

Investment cash flow

Farmland is unique as it has both an underlying asset in addition to operating income. Unlike long-term leases with fixed pricing in real estate, farmland operating income can fluctuate based on macroeconomic conditions. This has made farmland a tremendous investment during prior inflationary periods – as the cost to cultivate crops changes, commodity prices can change in response.

Offerings through FarmTogether distribute this cash flow on a quarterly or annual cadence based on harvest sales schedules. After a modest 3.4 percent operating rate of return in 2020, commodity prices surged during most of 2021 – partially in response to the underlying cost of producing those commodities.

Farmland continues to provide strong opportunities. Between 1992 and 2020, farmland generated an average annual return of 11 percent. Farmland’s value can appreciate while simultaneously generating operating cash flow. Agriculture is vital for survival, and food will always be in demand.

It’s also never been easier to invest in farmland due to FarmTogether’s online crowdfunding digital platform. In addition to these benefits, farmland has been one of the best hedges against inflation in the past. If inflation is on your mind and you’re worried about it adversely impacting your portfolio, consider the vast opportunities farmland through FarmTogether can offer.

Online Farmland Investment Portals * FarmTogether.com * FarmFolio.net * AcreTrader.com * FarmFundr.com * HarvestReturns.com

This blog post originally appeared on FarmTogether’s website

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

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One of the strategies commercial real estate investors like to employ is hiring consultants or market research companies to analyze a specific market a commercial real estate investor wants to pursue.

To a beginning investor, the overall strategy seems logical and well-intended. Who better to know a market than the analysts who spend there days and nights collecting, analyzing and reporting on such data?

I’ll tell you: YOU—the commercial real estate investor.

There is no substitute for doing your own research. There is no substitute for keeping your own counsel. There is no substitute for doing your own homework.

Why?

Because it’s YOUR MONEY that will ultimately be spent. It’s YOUR bank account that will ultimately reflect the success or failure of a commercial real estate endeavor.

Too many well meaning beginning real estate investors think they don’t have what it takes to do the homework required on a market. Too many well meaning investors yield to their analysis people who supposedly know more about the subject than they do.

This is a costly strategic mistake.

I have nothing against market research people or consultants. I have no axe to grind with them. They are extremely competent, thorough people who provide a valuable service.

My issue is with HOW they are used by the commercial real estate investor.

The challenge is when an investor trusts their judgment–more than his or her own. Many times an investor will be in awe of their command of the information, specifically statistics.

The reason I say this is because I have seen many real estate investors unwittingly fall victim to this process. It’s very easy to find yourself yielding to a “professional’s” opinion based upon research which you have paid handsomely for.

Don’t. It is a mistake that will cost you later on.

Look at it this way: Let’s say you want to invest in the stock market and you use the services of a stock broker to recommend a buy.

Do you really believe that the stock broker’s goal is for you to make a wise and carefully thought out purchase? Do you really believe their recommendation has been thoroughly researched and analyzed? Forgetting the self-serving aspects of the commission he makes selling you a stock, would you really want to trust him with your investment portfolio?

My guess is probably not.

So what’s the proper way to use these market research professionals? There are three common ways which these professionals are valuable to the commercial real estate investor:

1. One is as a way to flush out new ideas and do homework and research the “heavy lifting” which needs to be done that the investor doesn’t have time to accomplish on his or her own. The investor knows exactly the information he is after.
2. The second strategy is as a way to confirm the findings which the investor already believes are accurate. In other words, the investor is looking for a second opinion before he commits more resources to the project.
3. The third strategy is very interesting: Some investors will use professional resources to poke holes in their strategy. To find the fatal flaw. To find “the fly in the ointment.” The investor will never admit this to the professionals, yet he wants to know all the reasons the deal won’t work.

You’ll notice one thing in common with these three strategies: The investor will always do his own research. It’s a critical aspect of success—one that should never be delegated.

Bill Manassero is the founder/top dog at the “Old Dawg’s REI Network,” a blog, newsletter and podcast for seniors and retirees that teaches the art of real estate investing.

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SHOW NOTES FOR EPISODE 613: PROFIT FIRST REAL ESTATE INVESTING Too many real estate investors needlessly struggle with financial problems because they use old thinking that holds them back! In today’s podcast, real estate investor, entrepreneur and author David Richter shares how he transformed his real estate business from a cash-eating monster to a money-making machine.

What You Will Learn * How to turn your real estate business from a cash-eating monster to a money-making machine! * Why it’s important to view your real estate business from many different perspectives * How real estate investors get trapped into financial systems that make it impossible to succeed * Why “knowing your numbers” is critical to your real estate investing success * How accounting can help you create financial freedom * The critical role of mindset to your business’ success * You don’t have to be a math wiz to master your real estate business’ financials

About Our Guest David Richter David Richter is an active real estate investor who has been essential in closing over 850 deals over the last 7 years. Those deals include wholesale, turnkey, BRRRR strategy, owner finance, rentals, lease options, and many other exit. While growing and building a real estate business from 5 deals a month to over 25 deals a month, he realized that as money was coming in to his business, it was going right out just as fast.

With the unique opportunity of being in every seat as a real estate investor, he found a unique calling in his company’s finance seat to help other real estate businesses to see where their money was going too. David has helped real estate companies completely turn around, from going out of business to building cash reserves – all by using the Profit First cash flow system.

He wrote the book Profit First for Real Estate Investors as a derivative of the original Profit First by Mike Michalowicz (Michael has been a guest on the Old Dawg’s Podcast – 235: Clockwork: Designing Your Business to Run Itself With Mike Michalowicz ) – David’s book is specifically tailored for Real Estate Investors

David’s goal is to completely transform the Real Estate Investing industry when it comes to how real estate investors view their finances. He wants to bring investors true financial clarity and freedom, and help every investor stop living deal to deal.

More About David * A good friend of David’s gave him the book Rich Dad Poor Dad * The book opened his eyes to real estate investing * He bought a house right away off the MLS – a HUD foreclosure property – back in 2012 * He fixed it up and rented it out for a little while to generate cash flow * He also lived in it for two years * Then, he put a tenant in it on a lease option (rent-to-own) arrangement + Great tenant + Paid early each month + 6 months later, they paid off the house for a full purchase * He realized he liked real estate and wanted to do more

Working for a Real Estate Investing Company * Later, he got linked up with a company outside of Chicago (where he was living) that was doing 5 deals a month + He became part of the leadership team + They scaled up to about 25 deals a month + He got to sit in a lot of roles: - Acquisitions - Sales - Property Management - Project Management - Transaction Coordination - Finance * When he sat in the finance seat, all the other roles made sense (like acquisitions, sales, marketing and transaction coordination) * He could see the “money story” from the beginning to the end * He could see the money trail from acquisition to profit – what happened to the money along the way for the owners and the leadership team * He saw how it translated into bottom-line profits + As they were growing the company, he got to see all sides of the real estate investment business + They did over 750 deals while he was working there + It was a great learning experience + This was his crash course in real estate + They were making six and seven figure months from the sales of their properties but they were spending the same amount too - That part blew his mind! - “Why are we doing 300 deals a year and not making any money?” - This was his first “A-ha!” moment! * It got him more interested in the finance side of things and to looking deeper in to what is happening to the money - He went to the management team of the company and told them what they had to do to get back in the black * He shared how they had to sell some of he rentals to get back in the black * But they didn’t want to do what he was recommending * The company ended up splitting apart * People went different ways * David ended up selling his personal portfolio and moving across the country * It wasn’t a “victory story”

Getting a New Start * Once he moved across the country, he found a new investor and started working with him * He became the COO/CFO of the company * The first thing he looked at was the investor’s numbers + He told the investor, “I don’t care what you tell me about how great this company is, I’m going to look at the numbers to see what’s really going on.” + He dove in and found out that the numbers were a mess – like a lot of companies! + He told the owner, “We’ve got to clean this up!” + The bookkeeper was not being held accountable + They needed to get the right numbers recorded to get a true picture of the situation * The owner was very underleveraged + He had a small portfolio of rental properties + He was super underleveraged with his loans – what he owed on the the properties was 30% of what they were worth * He told the owner… + “Now that we know what your numbers are, we can access the equity to…” - Pull cash out (he was able to pull hundreds of thousands of dollars out) - Buy more properties - Create a “reserves” account – giving him piece of mind! * The owner told David, “This is changing my life!” + Knowing the numbers + Knowing how much I’m making each month + Knowing what my portfolio is worth + It’s changing my life, my kids’ lives - Now I’m able to pass something on to them that I have control over

Setting-up His Own Business * This was David’s “lightbulb moment” too + He saw how he could help other people to do the same! + He told a mentor of his that he was going to start his own business to help others facing the same dilemmas - His mentor asked him, “Have you ever read Profit First?” * David read the book and said, “Boom! This is a great framework for the cash flow of the business!” * David started implementing the Profit First principles with his his own company + He saw, first hand, how important cash flow was to a business + He also saw how important the numbers are to a business – “The numbers tell your story!” + Your business is your epic saga story! – You need to know what that story is! * David found out that most owners don’t care about the numbers! + They think, “I’m not going to think about it! I’m going to hand it off to an accountant or bookkeeper!” + He didn’t want to see other companies make the same mistakes as the first company he worked for

“Profit First” Principles * Profit First has two guiding principles + Mindset + Practical Application * Mindset + Accountants, bookkeepers and others (who don’t know what they’re talking about) have fed us a formula that is at the heart of the problem… - Sales minus Expenses equals Profits * In other words… + I make a sale + I take the cash and pay everyone and their mother + And, hopefully, with what is left over, I make a profit * We’re creating a bad habit by seeing profit as last + And then, never being able to take a profit - Profit First flips it! It says… * Sales minus Profits equals Expenses + Meaning… - I make a sale, where I build in my profit AND take the Profit out FIRST and then, what I have left over, are the Expenses for the business - The mindset is * “I’m setting up a profitable business from the get go!” * I know I’m making money – a profit – every time a make a sale! - Books that reinforce the Profit First approach: * Rich Dad Poor Dad * Richest Man in Babylon * They teach the “pay yourself first” philosophy * But Profit First provides an actual system to make it a reality! + Most businesses work like this: - They have one bank account that receives and disperses all money - Money comes in and goes out and most owners have no idea what the money was for - They just hope there’s enough money there when they need it - It creates bad habits * When there’s a lot there, I can spend it * When there’s very little, I’m more frugal + Profit first works differently: - Instead of one bank account and no control over where your money is… * Create several smaller bank accounts (like Dave Ramsey’s envelope system) * The sole purpose of these accounts is for the profitability of the company + Richard calls the first 3 bank accounts “The Golden Trio” - He got that from epic movies he loves that have 3 heroes: * Star Wars – Luke, Hans, Princess Leia * Your business is your “epic saga” * And, like all epic sagas, you want to win in the end! + It’s your legacy that you want to hand down one day to your children + You need heroes so you can pass on that saga! - The three main accounts are * Profit + For the reward of having an actual profitable company + For funneling a portion of your income + You take from it once a quarter, up to 50% * Owner’s Compensation + This is for the work you do in the business + You’re paid on a regular basis – a regular salary + To pay yourself on a consistent basis * Owner’s Tax + If you owe tax at the end of the year + You save for it throughout the year * When you first get started, you may not be able to fully-fund these accounts + You may have to slowly fill those buckets as you grow your portfolio + If you’re more active like flipping, wholesaling, etc., you may be able to fill up the buckets faster * Having those 3 accounts causing a mindset shift + You have these accounts so you will become more profitable + If your expenses are too high to fill those accounts, that’s a big red flag! + Sometimes you can only put a little bit in those accounts but the idea is to make profit it a habit in your business + Eventually, the system will work + Your properties are a business and you need to treat them as such! + There are ways on a deal basis or on a monthly basis with rentals that you are funding those accounts and funding profitability + Using this system, it makes it much easier for you to know how to scale your business and what it will take to be profitable and, eventually, achieve financial independence

Advice for the Not-So-Financially-Gifted Investor * One great aspect of the Profit First system/methodology is that it primarily deals with cash * You technically don’t need a bookkeeper, QuickBooks or other accounting software * All you need are bank accounts and the ability to transfer between them to fill up your “buckets” * A spreadsheet could be helpful but not necessarily required if you want to track it * YOU DON’T HAVE TO BE A FINANCE WIZ TO START THIS PROCESS! * If you want to get serious, and as your business grows and more and more transactions occur, yes, it makes sense to get a bookkeeper and finance software + David recommends QuickBooks online where you and your bookkeeper and/or accountant can all have access * But to get started, no, it’s not necessary * David has a fractional or “part-time” CFO business where he can provide investors with the professional accounting support for those who may want or need the high-level support + A lot of investors have bookkeepers and CPAs but they don’t always talk the same language as the entrepreneur + That’s why David created Simple CFO to help bridge that need

Biggest Investor Profit Mistakes * Having only one bank account that has no clarity nor control * A lot of real estate investors avoid financial management – they stick their heads in the sand + They like doing deals, closing deals, sales + But they don’t want anything to do with the financial side * They only talk with their CPAs once a year, at tax time + This is a big mistake + There is so much power in using your numbers to grow to where you want to be - You will not be able to grow if you don’t know those numbers and are not building in those habits to get you to those goals * Another mistake is people who steal from themselves + Mixing business and personal + Interchanging business and personal accounts and interchanging transactions + If you have multiple entities - Passive income and active income * Taking money out of your flipping business to fund your rental business

Biggest Successes * Having good mentors from the beginning + He works with mentors and key people a lot for advice and direction * Taking Action + He read Rich Dad Poor Dad and then bought a house - That house led to 850 more deals + He started his Profit First company and… - It led to working with 150 real estate investing companies - He has helped those companies to implement Profit First and become financially free

Advice for Old Dawgs Looking at Real Estate Investing to Help Them in Their Retirement Years * Take Action! + Call an investor-friendly Relator or broker + Do something to get a property under contract + Get the deals in the door to make the money + Use the Profit First system to keep the money!

Current Business * He’s excited to see business owners excited about their businesses AND generating profits! * He’s excited about his book, which is available on Amazon + The audio version is coming soon * He’s working hard to help business owners feel like true business owners and to achieve true financial freedom * He wants to grow his business to help even more people * His goal is to help 400 people on a monthly basis * He has 30 CFOs on his team to help business clients and wants to keep that number growing

Rap-It-Up * Favorite real estate book: Rich Dad Poor Dad by Robert Kiyosaki * Favorite business book: The Road Less Stupid by Keith Cunningham * Most valuable web site for success (other than your own): Google Sheets and Docs and QuickBooks online * Favorite app: Kindle and Audible * Favorite quote: “How you do anything is how you do everything” * If you lost everything – all your assets – and had to start all over, knowing what you already know, and you only had $1,000, what would you do to re-launch your real estate investing business? Partner with someone who is already doing deals to get right into the real estate game! Would probably focus on wholesaling or owner financing. Use his sales skills. Maybe pay for mentorship

How to Get His Book: Profit First for Real Estate Investors * Link to Purchase David’s book: Profit First for Real Estate Investing by David Richter

How to Reach David * Website: SimpleCFOSolutions.com * Schedule a free call with his team

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

Check out our other podcasts at olddawgsreinetwork.com.

Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

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SHOW NOTES FOR EPISODE 612: CRYPTO MEETS REAL ESTATE INVESTING Real estate experts and investors are starting to look toward asset tokenization as a way to improve the real estate investment world. In this episode, Bill explores how crypto and tokenization are becoming part of real estate investing for the long term.

Introduction Real estate investing has been a reliable way to build wealth for centuries, and over the past few decades, it’s been responsible for generating countless self-made millionaires. But the basic tenets of real estate investing haven’t changed much over the years—so it makes sense that it’s in line for a major shakeup.

Real estate experts and investors are starting to look toward asset tokenization as a way to improve the real estate investment world, provide more investment opportunities to eager financiers, and potentially spur further economic growth.

But how exactly could this work and what would those changes be?

What is Asset Tokenization Asset tokenization refers to the process of taking an asset and “tokenizing” it, dividing it into easily divisible, fungible tokens that can then be exchanged at users’ discretion.

By now, you’re almost certainly familiar with Bitcoin, a cryptocurrency that’s built on blockchain technology. Without going too much into detail, the entire Bitcoin world is built upon peer-to-peer connections and encrypted shared ledgers; it’s a decentralized system that essentially makes Bitcoin transactions fast, cheap, and nearly fraud-proof. Bitcoins themselves can be divided into smaller units and exchanged with one another, and they have a finite supply.

Asset tokenization could work fundamentally the same way, with divisible tokens representing a share of ownership stake in a different asset. In the real estate context, this could mean a residential property could become tokenized, with 100 individual digital tokens that each represent a 1 percent ownership stake in that property.

The Advantages of Tokenization in Real Estate Investing Even with the above example, you’re probably thinking of ways this could change the world of real estate investing. Realistically speaking, there are many different advantages of tokenizing real estate this way.

Higher liquidity. If you’ve enjoyed the sellers’ market of the past few years, you probably don’t have any concerns about selling a house. But the real estate market can suffer from liquidity problems. An investor getting rid of a fractional share of ownership in a property would be much easier than getting rid of an entire property by themselves. This means tokenization could finally make the real estate market liquid enough to attract investors for whom liquidity is a concern.

Divisibility and fractional ownership. Asset tokenization also enjoys the benefits of divisibility and fractional ownership. If someone doesn’t want to purchase a million-dollar apartment complex that’s being built in their town, they don’t have to. They can still invest in it by buying a small fraction of the building with whatever money they want to spend on it. If they want to invest $1,000, they can do that.

Accessibility. Digital transactions can also improve accessibility. As long as an investor has a computer and a bit of technical know-how, they can hypothetically purchase a fractional share of real estate that interests them. Note that they may also be able to forgo the typical processes of working with banks, lawyers, and agents to purchase property; many of the bureaucratic hurdles are removed.

Speed and cost reduction. Cryptocurrency enthusiasts are quick to point out that blockchain technology has the potential to make financial transactions much faster and much cheaper. While there are some kinks to still work out in this area, asset tokenization does have the potential to eliminate several costs associated with buying and managing property. Real estate transactions would have the potential to be much quicker and easier to manage.

New investment and rental models. Leaders in the investment field also need to understand that asset tokenization is so new and so innovative that it could create entirely new investment and rental models for real estate investors. For example, you can imagine a scenario in which a renter, instead of paying rent traditionally, buys a fractional share of ownership in the property every month, gradually working their way toward ownership in a measurable way.

What’s Holding the Industry Back? Why don’t leaders bring asset tokenization to the real estate world and start capitalizing on the benefits?

The technology is still new, which leads to a few different complications. For starters, there is no regulatory framework in place supporting this leap forward. Legal hurdles and regulatory complications are causing some investors and engineers to steer clear of this potential innovation. It’s also hard to convince somebody unfamiliar with this technology that buying a digital token representing a fractional share of ownership in a property is just as good as conventional ownership, so there may be an adoption problem initially.

Still, given enough time, all these problems should eventually be sorted out. The investment industry may not have the perfect technology to realize it yet, but sooner or later, asset tokenization is coming to the world of real estate investing, and it’s on leaders in the field to be prepared for it.

References:

• https://www.fastcompany.com/90736151/how-could-tokenization-reshape-real-estate-investing
• 607: Real Estate Disruptive Trends
• 611: Wealth Strategies for an Uncertain and Changing World
• 577: How to Access Home Equity Without Debt
• The Future of Real Estate Investment: Here’s What You Need to Know

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One thing that many people do not realize is that learning to invest in real estate is a process. They don’t realize that because they often only see the end result – a prosperous person with a Midas Touch, or a person who always finds themselves in an avalanche of great deals. They think the person was just in the right place at the right time.

Someone who has truly begun their own real estate journey knows, however, that these successful investors are utilizing a skill they have developed over time. Perhaps they have indeed developed a knack for being in the right place at the right time. However, that inate ability to “bei in the right place at the right time” was developed over years of learning. These investors learned when to go where so that deals could find them.

It’s like considering a hunter lucky because he tends to find deer in the woods, while you never see any in the city. The hunter isn’t lucky because he knows he has to go to the forest if he wants to find deer. It’s mindbogglingly simple when you really begin to think about it.

Ken McElroy, a previous guest on The Old Dawg’s REI Network Podcast #185, and the author of “The ABCs of Real Estate Investing,” one of the Rich Dad book series, said that, if you begin to do the things that investors do, you will start to see patterns. You can use those patterns to determine your course of action. It’s just another way of saying, “Art begins in imitation and ends in innovation.”

People who just don’t get that concept, or who refuse to accept it because it is attached to the concept of work, tend to be magical thinkers and get-rich-quick schemers. They think there is something mystical at work, when the only thing really at work is the investor. McElroy says that there are some people who just don’t really have the desire to do the work. Those tend to be the dreamers, and they are that way because they want to be.

However, if you do have the desire to do the work, and all you need is to be told what work to do, then there is hope. You can learn the technical skills. Those are the people, McElroy says, for whom he wrote “The ABCs of Real Estate Investing.”

Elsewhere in the Rich Dad series, Robert Kiyosaki, who started the series, said that the people who do lose big in real estate investment are typically the ones who jump in without first taking the time to learn about investing. They simply don’t know how to do it. That is what people don’t understand about getting rich, and more specifically about real estate investing — that it is a process! You are no more going to swagger into the arena, plunk down your money and make a killing any more than you would swagger into a hangar, jump into an airplane and start doing loop-de-loops. That approach is likely to get you killed. That approach in real estate investing is likely to cost you a lot of money.

But if you take it slowly, are willing to learn from those more experienced than you, and allow yourself to make plenty of small mistakes that won’t make you crash, then you will begin to build a base of knowledge. You will begin to see how it all fits together and you can apply that knowledge so that you can start to make money.

It is a process.

Bill Manassero is the founder/top dog at the “Old Dawg’s REI Network,” a blog, newsletter and podcast for seniors and retirees that teaches the art of real estate investing.

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SHOW NOTES FOR EPISODE 611: WEALTH STRATEGIES FOR AN UNCERTAIN AND CHANGING WORLD Major world and economic events are impacting us more today than ever before. As real estate investors, our livelihood is truly at risk! In today’s episode, podcaster, author and cash flow expert M.C. Laubscher shares what major events are in process, how we should prepare and ultimately how we should respond to not just survive but to thrive.

What You Will Learn * How a “4-Horse” Investing Strategy will help you through challenging economic times * Why there are major phases that reshape out country every 80 to 100 years * What are some of the biggest “storms” coming up that will affect investors? * How can you best position yourself and your portfolio to survive any major economic, political and global event * Why we are in the “4th Industrial Revolution” * What is “The Great Reset” and how will it impact us as real estate investors?

About Our Guest M.C. Laubscher M.C. Laubscher is a Husband, Dad, Podcaster, Author & Cash Flow Expert. As a cashflow investor and entrepreneur, M.C.’s passion is to assist investors & business owners to create, recover, warehouse & multiply cashflow through advance strategies. Having figured out how to escape the rat race and replace his income through cashflow investing, he shares how highly paid professionals and business owners can replace their incomes through cashflow investing strategies to escape the rat race. He is focused on helping business owners and investors capitalize on their economic opportunities in times of great change, disruption, and chaos.

M.C. is the creator & host of the top-rated business and investing podcasts, Cashflow Ninja & Cashflow Investing Secrets. The Cashflow Ninja Podcast has been downloaded over 4.5 million times in over 180 countries and has been featured as one of the top 48 podcasts for entrepreneurs by Entrepreneur Magazine and is regularly featured as one of the top 100 podcasts by Apple Podcasts.

M.C. also founded Producers Wealth an insurance brokerage helping clients in the United States with advanced cash flow strategies and Producers Capital Partners, a firm assisting investors all over the world to invest in alternative assets that produce passive income in any economy and market.

Reoccurring Cycles Causing Confusion * We are living in very interesting times * A lot of people are very concerned because many different storms are coming together simultaneously to create one big giant storm + We are seeing many different cycles overlap - Most people know about cycles such as… * Asset cycles * Market cycles * Economic cycles - But there’s also… * Demographic cycles * Empire cycles (power shifts globally as with Russia and the Ukraine) + When all these things come together, it causes a lot of confusion

The 4th Industrial Revolution * Then, throw in the technological development over the last 20 years + We are full-steam into the “4th Industrial Revolution” - Phase one – The Locomotive Engine (connecting societies) - Phase two – The organized workplace – assembly lines & quality control - Phase three – The age of the Internet (connecting the entire world) - Phase four – The Internet of things – smart watches, phones, TVs, appliances * AI (artificial intelligence) * Robotics * 3-D printing * Driverless vehicles + Things are moving much faster today than at any time in history + Many people don’t know what’s happening + Some do and are positioning for it

80 to 100 Year Cycles * From a book called “The Forth Turning” by William Strauss + We are living through this 4th turning now + The book talks about… - 80 to 100-year cycles that every country, empire goes through - There are seasons in these cycles: * Winters – dark, cold times * Spring – recovery * Summer – * Fall – - In the U.S. * 80 years ago – WWII * 80 years before that, there was the Civil War * 80 years before that, we had the American Revolution * These cycles repeat every 80 to 100 years

Massive Change, Disruption and the Great Reset * We are clearly in a time of great and rapid change * It is a time of very disruptive technologies that can impact everything within our economy + There is no sector or market that will not be impacted + It’s causing a lot of chaos and confusion + It’s also leaving a lot of people behind, which causes social friction + As you see these things boil over, it causes a very disruptive and divisive political environment * To add more fuel to the fire, there is a concept that has been floating around called “The Great Reset” + When people heard about this concept, they thought, “Is this just something with a bunch of guys with cigars sitting around in a dark room planning nefarious things?” + In reality, it is openly talked about in think tanks, global institutions (World Economic Forum) + There is even a book written by the chairman of the World Economic Forum, Klaus Schwab, wrote called “Covid: The Great Reset“ * What is the Great Reset? + The Great Reset is a time where we are going to see the reset, restructuring and collapse of structures, frameworks and systems that we have taken for granted our entire lives + All these things are coming together * If you understand what’s happening… + You see how things are connected + You realize where we are + You can anticipate what steps are coming * This could be one of the most exciting and exhilarating time in anyone’s life + Why? - Because it’s in times like this, where capital really moves - Money isn’t disappearing, it just changes hands – from one area of the economy to another area of the economy - People who position themselves well – on the right side of the greatest wealth transfer in human history * Which we’re already well into * If you just look at the numbers that have come out since 2020 * One of the areas you see this is in the cryptocurrency and blockchain areas + There are smart ways to invest in that marketplace - For example, the “California Gold Rush Strategy” * The people during the California Gold Rush who really made made fortunes were not the miners! + They were the people who… - Sold the shovels - Sold the equipment - Sold clothing, like the Levi and Straus family - Sold food to the miners - Housed them - Provided them with entertainment - Provided financial services (Wells Fargo) - People who will make a killing in the cryptocurrency space are those who provide * Specialized tax services and planning for crypto investors * Specialized legal assistance for crypto investors + Within this gloomy, chaotic, uncertain, disruptive times, there is an abundance of opportunities for those that want to see it and who will capitalize on it + But there is a lot of fear out there + Some people refer to it as maximalism – this will solve all problems are cure all ills + And the next person would say the complete opposite – saying no, this is the magic bullet * Ray Dalio (who has the four seasons portfolio) prepares for everything and anything + He elevates his portfolio in different areas which positions him to take advantage of an economic boom and inflation and an economic contraction, and for a recession and collapse and deflationary event that could occur + There are a lot of maximalist views - They are positioning themselves for anything that can be thrown at them - They have a stable of horses * This is a very dangerous time if you are going to bet everything you have on one horse in this race * You need a stable of horses for different tracks, for different environments that will be coming at us in the coming weeks and months ahead * M.C. asks himself, “What can I do to prepare for different types of outcomes?” and “How can I position myself and my overall wealth strategy so that there’s not any surprises out there?” + “Will there be wild cards?” – absolutely! + “Will there be blind spots?” – absolutely! + Every investor has them! + We don’t have a crystal ball! * M.C. has a daily exercise he does in navigating the environment that helps him a lot he has developed over the last two years + He got this concept from a man called Keith Cunningham called “Thinking Time” + Every single day, he blocks off one hour, grabs an empty notepad and just thinks - He thinks about his thinking - And he uses some frameworks to help him with it - Henry Ford said, “Thinking is one of the hardest things to do. That’s why so few people engage in it.” - He takes the frameworks and evaluates all the dangers and threats that’s out there each day * This gives clarity – to see what is a threat to you, your family, your business and your investments - Then, he thinks of potential threats he hasn’t seen yet - Then, he looks at opportunities * When you’ve written down your threats, that’s when opportunities will start to emerge – massive opportunities * For example, one of the threats he was looking at was in the energy markets + When Biden shut down energy production, M.C. saw that other types of energy had to be used - Unfortunately, we aren’t going to power everything around the globe with solar and wind – there will have to be another source of power to do that * Nuclear came to mind (it currently only powers 10% of countries around the world) + Then, he thought of uranium and the demand for uranium * Some key things he looks when assessing dangers and opportunities are: + Money - The monetary system changes every 30 to 40 years * August 15, 1971, Nixon took us off the gold standard * News headlines show the monetary system is ready for a shift in the making today + Bretton wood 2.0 (The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western European countries, Australia, and Japan after the 1944 Bretton Woods Agreement. ) - It’s in the process of resetting - The World Bank, IMF and central bankers are saying a change is needed and coming + Banking - The way that we bank is also changing - The debt market is the biggest market out there + Energy - Energy drives every economy - How important oil and gas is + Commerce - What’s happening in the business world - Everything is going digital + Markets – Equity, Currency, Commodity, Crypto + Real Estate - One of the best places to have been in the last two years was short-term rentals - The way we live and worked changed * We started going virtual * You no longer needed to live where your employer was based - It changed the job market * The talent pool is now basically the world + Travel - Airlines shut down for a bit - People are flying less - Instead of going on vacations out-of-country, people are driving 3 hours to stay at an Airbnb by the water for the weekend + Societal Trends + Health Trends + Food Trends + Supply Trends + Education Trends - There are enormous threats and enormous opportunities * Uranium traders * Short-term rentals * Education + The Tuttle Twins

The 4-Horse Strategic Investing Model * When looking at investing, he asks himself, “How can I position for any event – anything that may happen in the economy or anywhere?” * You need to have a stable of horses + He has 4 key areas of allocation or “4 horses” he depends on (Like Ray Dalio’s “4-Seasons): 1. Cash (your everyday workhorse) - It’s one of the most important things to have available in uncertain times - It’s a great tool in your toolbox - If there is a deflationary event, you’re going to need cash for many different reasons * To buy assets at a discount * As a stability factor in your portfolio, too - It’s your stabilizer * Buy more gold and silver * You can buy more cash flow producing assets * Buy more assets for growth * You can always deploy if there’s a boom or a massive inflationary shift - Always have cash on hand – and not in the bank! * He’s very nervous about banks * The nature of banks is going to change very quickly * Banks have the right to keep your funds in the event of a major crisis - Infinite Banking Strategy * He “decentralizes” himself from the banking system working through insurance policies 2. Metals (your war horse) - Gold & Silver - Your defensive play - Your wealth insurance – especially when you start to see massive wild card events (major deflationary event, etc.) - Gold has been money for centuries - Silver is probably the most undervalued asset right now of all asset classes 3. A Cash Flow Portfolio (your race horse) - Your monthly income - Multiple diversified streams of income * Real estate + Resort properties * Businesses that focus on + Necessities (food, clothing, etc.) + A business that can relieve people of their problems during tough times (weekly co-living, cheap rentals) + Luxuries, too (some will seek these items in tough times) + Energy businesses + Go for different sectors and niches – DIVERSIFY! * Airbnb/Short-term rentals - You do not want to depend on just one source of income in uncertain times - Other good cash flow niches during tough times from his book, The 21 Best Cash Flow Niches * Teak investments (within the timber niche) is held by many wealth families * Agriculture (crops, livestock, farms, etc.) * Music, movie and art royalties – There is a platform where you can buy the rights to songs by well-known artists, movie rights and art rights 4. A Growth Part (your fastest horse) - You need to continually increase your total holdings - Crypto and blockchain + These 4 Horses allow you to be ready for all seasons and any storms!

His Book and a Freebie! * The 21 Best Cash Flow Niches by M.C. Laubscher * If you buy the book, take a screenshot of the proof of purchase, email it to his team at info@cashflowninja.com and you will get FREE access to an eBook and additional cash flow niches as well.

How to Reach M.C. * Website: cashflowninja.com

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

Check out our other podcasts at olddawgsreinetwork.com.

Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

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SHOW NOTES FOR EPISODE 610: MINDSET MATTERS! Now that we’ve learned the 10 Steps to Real Estate Investing Success, it’s now time for implementation! In this episode, Bill shares the most vital ingredient necessary for true real estate investing success and it’s all about mindset!

Previous episodes of our 10 Steps to Real Estate Investing Success series have thus far included:

1. 590: Is Real Estate Investing For You?
2. 592: What Type of Real Estate Investing is For You?
3. 594: Building a Winning REI Strategy!
4. 596: Knowing Your Numbers
5. 598: The Business of Real Estate Investing
6. 560: The Importance of Your REI Team
7. 602: How to Choose the Right Real Estate Investing Strategy for You
8. 604: Finding the Best Market
9. 606: Creating Your Strategic Plan
10. 608: What’s Holding You Back?

Recap * Is REI for you + It’s not for everyone + It takes a lot of time upfront * What type of real estate + Fix ‘n Flip + Rentals + Airbnb + Syndications * Putting your strategy together + Building a strong foundation - Know your Why - Do your research - A mentor? - Mission/Vision - Setting goals + The numbers - Understanding the fundamentals + Treating REI as a business - Set it up right so you can enjoy the benefits * Asset protection (LLCs, etc.) * Tax advantages * Profit First strategies - Bookkeeping + Building a team - Key to success * Good lawyer * Good CPA * Bankers, Mortgage brokers * Realtors, agents, brokers - Gurus can be good but… + A strategy that fits you - Finding a niche + Finding the best markets - Best to stay in your back yard + Your Strategic Plan - Writing an evolving, living document that will help you succeed faster and more profitably - Constantly revising and refining + Just Do It! - The biggest step to success

Mindset Matters! Introduction So that’s it! The 10 Steps to Real Estae Investing Success! That is all you need to succeed! Or is it?

The most important step or “ingredient” is not necessarily something you can learn – yet it’s critical to your success! It’s not a step, it’s the MINDSET!

I have interviewed literally hundreds of successful real estate investors and those who succeeded best were the ones who had something different! Some were actually to naïve to ever consider the fact that failure was an option – they may have seen various degrees of success – but failure was not even an option!

In their naivety, they had built in a guarantee of success!

In so many regards, we look at the stupid ads with the guys with their exotic cars and bikini clad girlfriends, in front of the mansion, saying that they are doing a disservice, tricking people into paying their ridiculous coaching fees and planting false hope – seeing them as taking advantage of the naïve newbies. But, in some ways, they actually birthed the believers who see real estate success as something easy! Of course, we know it’s not really that easy! In fact, it’s a lot of hard work and headaches!

But there are some who see it as not only obtainable but a quick way to wealth!

To these people failure is not an option!

And they end up achieve just what they set out to do because they happened to have the right mindset!

So how do you get the right mindset?

Everyone is different!

Mine was based on my faith in God!

You can’t go into this with doubts, fear of failure, living in the worst case scenario. Yes, you must know the worst case scenario to be prudent and be a wise steward of your resources – but don’t let that drive! Be driven by the fact that you WILL succeed – and HOW successful you’ll be wholly depends on your mindset as you move forward and how you those mistakes into “success lessons.”

I’ve had close friends and relatives who started out great, hit rough times and sold everything off at a loss, only to regret it years later!

The true achievers only see one option – success!

They live by very simple rules:

• Don’t be discouraged!
• Don’t give up!
• Be persistent!
• Learn from your mistakes and the mistakes of others!
• Re-engineer and keep moving forward!
• Run from Analysis Paralysis!!!

It’s no coincident that many of the most successful real estate investors that I have interviewed are engineers! And I honestly think it’s because they are professional problem solvers! Fixers! They don’t get easily discouraged when faced with a problem or challenge because their job is to be a professional problem solver! They covet challenges! They’re always looking for the best solution to a problem or dilemma! And it doesn’t hurt that they happen to be “numbers guys & gals” on top of it — who love to solve puzzles! They look at real estate investing challenges as just another equation to be solved!

If you haven’t listened to all 10 episodes of the 10 Steps to Real Estate Investing Success series, go back and have a listen.

If you haven’t started investing yet or maybe you’re just frustrated because things are taking too long or maybe you just hate landlording – Whatever may be your situation… I think listening to the series will help encourage and motivate you to get things going! Real estate investing – Now more than ever — and in especially in today’s volatile market! – I still feel it is still one of the best – if not THEE best place to put your money!

When you see how truly easy it is, maybe you will be one of those with the “never fail” mindset!

Thanks to all of you who have been listening to this series. I hope it helps!

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

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By Evelyn Long

When buying and investing in real estate, trying to time the market can be tempting. However, due to the unpredictability, this is often hard to do. Multiple factors impact the market’s volatility, including an uncertain economy and housing constraints.

You can easily Google general real estate predictions – and you’ll find many great results from seasoned economic experts. But should real estate investors lean on these predictions to make business decisions? Here are some reasons why they aren’t always helpful.

1. Predictions Don’t Apply to All Markets This won’t be news to real estate investors, but even the best predictions about market forces can’t be evenly applied to all real estate markets. Industry niches, location and regional policies all play a role in how strongly a larger trend will affect the day-to-day reality of a local real estate investor.

Many investors use previous data to predict future trends. However, past examples show us how these predictions can be too generalized for investors looking at local real estate decisions. Real estate tech platform AppFolio showcases one helpful example from 2014.

In the spring of 2013, 20% of homeowners had negative equity. Experts at the time used year-over-year increases in home prices to predict that many homeowners would be lifted back to positive equity by 2014.

However, by the end of 2014, housing data aggregators told a slightly different story. While home prices did continue to increase, negative equity did not decrease to the same degree. Negative equity remained at 16.9% — an improvement, but not a stellar one.

Plus, we can see how these predictions fared when digging into more specific markets. This slump of negative equity remained higher in Florida and Midwestern states than in other parts of the country, and the same is true for low-value homes versus high-end real estate.

In this example, these predictions led to mixed results. It’s true that equity was starting to balance out thanks to increased home values. But this effect was not as strong as anticipated, and negative equity was a far bigger problem in some states than it was others. It’s a great example of how theory is useful, but understanding the market in your own state is key to applying it wisely.

2. Flashy Articles Can Cause Over-Concern Some articles sensationalize the falling of the real estate market, letting you know everything is imminently going to come crashing down. While these headlines can get your attention, they aren’t the most useful.

Worst case scenario, some home buyers and investors could see these headlines and feel they need to take drastic measures, like putting down a sizable down payment or selling off a property they weren’t ready to list.

Economists and historians will tell you the market cyclically crashes as part of a historical boom/bust cycle. The extent and severity of these crashes and booms can be affected by government policies, the triggers and consumer behavior, of course, but they happen nonetheless. And could any real estate expert (who didn’t moonlight as an epidemiologist) have accurately predicted the market shifts from a truly once-in-a lifetime event like the COVID-19 pandemic?

So while sensationalist articles about when the market is going to crash will be right eventually, it’s more sensible to prepare your finances for the eventual risk regardless and don’t let that fear hold you back from making well-reasoned bets on an investment project.

3. Unexpected Events Can Impact the Real Estate Market Many climate researchers connect some of the past few years’ weather events to changes triggered by climate change. The cold snap that rocked Texas in 2021 temporarily impacted the housing market as well, as many homeowners and investors were tasked with repairs from frozen pipes and energy outages.

Similarly, increasing wildfires in California has a negative impact on home values in the most vulnerable regions — although the intense housing supply shortage in the state means buyers are still clamoring to live in fire-prone regions.

Changing weather patterns are complex, and though scientists are releasing helpful research into some climate changes we can expect to see, major natural disasters and weather shocks will always have an element of surprise for real estate investors. Even the best housing predictions can be sidelined by dramatic hurricanes like Harvey and Irma, unseasonal freezes and devastating flooding.

Of course, the weather isn’t the only “act of God” that can affect predictions. The aforementioned COVID-19 pandemic also changed housing market dynamics. It triggered a shortage of supply and rising rental prices, plus a host of unexpected changes both temporary and long-lasting — like migrations of remote workers and widespread concern over evictions and rent delays.

Housing Market Factors You Can Trust While searching the internet for general predictions isn’t the most effective strategy, here are a few factors you should pay attention to due to their reliability.

1. Mortgage Rates Mortgage rates are based on the current economy and personal factors.You — or economics journalists you read — can keep tabs on how the Federal Reserve is responding to the economy and managing the money supply. With more reliable data, you can make better investment decisions.

Here are a few mortgage rate predictions for 2022:

• Mortgage rates will rise.
• Home price growth may return to normalcy.
• Expect near-term bidding wars.
• It will still be a tough market for buyers.

• There are still wildcards.

• The Local Market Conditions As a real estate investor, it’s more likely than not that you’re developing expertise in the market you operate in. Why? Looking into local trends can help you make better decisions. National trends are important, but they won’t necessarily predict conditions in different areas.

That’s why you want to research current and local real estate trends first. You can find this information online from trusted housing statistics collectors like Realtor.com.. Another good idea is to talk with real estate agents and investors in your region. They are more familiar with the ins and outs of the market, and can have insight you may have missed.

1. Government Policies and Legislation Government legislation can influence property demand and pricing. For example, tax credits and deductions can boost demand. When the U.S. government passed the First-Time Homebuyer Tax Credit, property sales quickly increased.

So, being informed about emerging government policies can help you determine potential supply changes. To find information about new laws, use online sites like GovInfo.gov and Congress.gov. You can also head to your local library.

Take Real Estate Predictions With a Grain of Salt Many investors use generalized and national trends to predict the real estate market. Yet, these don’t account for all markets or certain wildcard events. Plus, the pandemic showed us how quickly the economy can change. So, focus on more reliable data from mortgage rates and your local market.

Author

Evelyn Long is the editor-in-chief of Renovated. Her real estate work has been published by the National Association of REALTORS®, Rental Housing Journal, and other online publications.

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So you need to sell your home?

This article will help you to sell your home and create a bunch of leads who are HOT prospects to buy your home.

Before, we share 3 unique ideas on selling your homes, you need to take a few simple steps…

1. PREPARATION Find a Good Mortgage Broker You need to locate and interview an aggressive Mortgage Broker, very knowledgeable, with a GREAT TRACK RECORD of closing deals, especially difficult ones.

I cannot stress enough the importance, of having a great broker on your power team. Sometimes you can find a good broker through a local R.E.I.A. (real estate investor club) in your area. Whenever you hear a member say they successfully closed a deal, you should always make sure to inquire for an introduction to the broker who closed the deal.

Remember, you can sell a home ten times but if you can’t get the buyer funded by a mortgage company, who cares – you’re wasting your time.

Fix the House Up You should make some effort in fixing the home up, even if it’s a hunker. You can still get the lawn cut and maybe throw a coat of paint on the property. You’d be amazed at the improvement to even an ugly property with a clean yard and a simple coat of paint.

Go Where the Buyers Are Go to your local community financing office or local grant and home buyer bond office. For example, in South Florida and Palm Beach County, both counties run a FREE class for young buyers on becoming first time home buyers. When they take the class, they also get a voucher from the county, giving them $10,000.00 toward the purchase of their first home. The best part is sometimes the loans are even forgiven when certain criteria are met by the new homeowner.

1. DO SOME CREATIVE MARKETING Let’s be frank, your going to have to be more aggressive, smarter and persistent than 99% of your competition.

There’s no magic pill, but this has worked for some.

Buyer First System Basically you create your own buyers. The best example would be converting a lifetime renter into the “American Dream Homeowner.”

Very simply, create a flyer, postcard Facebook ad, and market to communities of people who would be a great prospect to buy your home.

Who doesn’t want to be a homeowner in America? Nobody — most people would rather be a homeowner than a renter

The real key here is that for individuals renting, most are under the impression they CAN’T get a mortgage. They might have tried in the past and we’re shutdown and embarrassed, only to believe they would live the rest of their lives as a RENTER.

These are the best leads you can focus on because it’s not a matter of IF they’ll buy your home, they will, the key is, can you get them funded or is it the house financially affordable.

This strategy will take some time and initiative because their is much hand-holding involved, mortgage brokers, and and others helping them get government assistance through First Time Homebuyer money.

Fish in some one else’s pond! Go where the most prospects are for your home. I’ll give you some examples, you need to go where the most and the best prospects are to buy your home, assuming it’s a good deal (priced right) and that there’s still built-in equity for your buyer.

If you have any contacts or a friend of a friend, now is the time you can leverage connections to open doors for you to their sphere of influence.

For Example, a teacher had a cousin (she was a middle school teacher) and she introduced him into the schools where she worked. It just happened that the schools were in the same area that he was selling a great starter home.

He ended up selling the home he needed to sell and, once word spread of what he was able to do, the rest of the teachers came out of everywhere, wanting him to help them. He’s since helped the 1st teacher, sold another 5 homes to 5 different teachers and earned over $30,000.00 for this simple, leveraged relationship.

So what ponds can you fish in with your marketing? Think about whom you know (friends, family members and work associates)?

BEST PROSPECTS: Teachers, Cops, Firefighters, Government Employees, Bus Drivers, Department of Transportation. (These careers are loved by lenders, they mostly have good credit and their income is basically guaranteed and very stable.)

GOOD PROSPECTS: Large local employers: Supermarkets, Local telephone company, Home Depot, WalMart, etc.

Use the Internet… You should definitely have an individual website for your property.

You can get a simple site built for under $100.00 using Fiverr, Upwork or other freelance sites. Or you can easily create your own site for free with Weebly or Wix.

You post an auction about your project (your home website), and then companies bid on your job, and you get to see samples of their work and read all their feedback, after you decided who wins your job, you choose a winner. Oh by the way, both of these services cost you nothing, their completely FREE.

Take some pictures with a digital camera of your home and you’ll end up emailing them to the site designer, to post on your site.

Treat this as an online, digital brochure, basically being able to do whatever you can conceive.

You can take a video of the home, with you walking through the home and then have it placed on your site. If you’re intimidated by video, like I was at first, don’t be, because your web site designer can do it for you, very easily.

Now, when ever you talk to someone on the phone or in person, they can quickly look at your property, on the web. This will be the best $100.00 you’ll ever spend on marketing of your home.

1. PROMOTE AND HOLD YOUR OWN “FIRST TIME HOMEBUYER SEMINAR” If you can get 10 to 15 people in a room, your going to be successful.

Here is how a Homebuyer seminars worked for one investor.

He’s now doing 1 a month, every month. Also, since he’s has a few seminars successfully under his belt, he’s now selling sponsorship spacefor his seminars, to Mortgage brokers, credit repair companies, and he’s even worked out a joint venture with two different realtors who pay him for every property they sell to one of his prospects.

If you’re curious how he’s filling the room, all he’s doing is as follows…

• Flyers in Parking lots, I.E. WalMart, Publix Supermarkets, and local churches.
• Free Advertising on www.craigslist.com
• He uses bandit style signs on the side of the road, 18 x 24, corrugated plastic signs.
• He’s even put up a website that the attendees, can preregister for the seminar.
• He also is giving them an ethical bribe for attending the seminar – he gives them a few books and tapes just for making it to the event. The best part is he received the books for free on the internet and he’s also allowed to give them away for free and even rebrand them as his own books.

I hope these out-of-the-box ideas help you to more successfully sell your investment properties!

Bill Manassero is the founder/top dog at the “Old Dawg’s REI Network,” a blog, newsletter and podcast for seniors and retirees that teaches the art of real estate investing.

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SHOW NOTES FOR EPISODE 605: THE SHORT-TERM MILITARY HOUSING NICHE Finding a good real estate strategy is great! Finding an effective niche within that strategy is even better. In today’s podcast episode, Real estate entrepreneur, investor and US Navy Captain Joe Riley shares how he saw the problem of military families constantly relocating and turned it into a profit center!

What You Will Learn * Why there is a demand for short-term housing near military bases * How a “military mindset” gives a true advantage operationally * What his “secret sauce” was for insuring success with his Airbnb business * How he expanded beyond just military-based housing * Why he calls his business “The Walmart of Short-Term Housing” * How he made it possible for investors to purchase and profit from his short-term rentals without having to do any of the work

About Our Guest Joe Riley As a captain in the US Army, Joe Riley has had multiple overseas deployments, and previously served on the National Security Council at the White House! Joe is also the founder of Patriot Family Homes, a company that meets the need for short term housing near military bases. They are a veteran-owned and operated company transforming the short-term vacation rental industry by bringing professional management to small towns and big cities alike. They are uniquely positioned to partner with passive real estate investors looking to access short-term rentals cash flow without all the headache of managing them.

More About Joe * From a little town in East Tennessee right next to the mountains * Went to University of Virginia for undergrad on an ROTC scholarship * Did the Army stuff * Went to Oxford in the UK, got a Masters and PhD in International Relations * Came back to U.S. * Did Army moves every 12 months * Moved 7-8 times in 7 years * On one of his deployments they decided to put their house up on AirBNB instead of selling it to see how it would do * They were stationed down at Fort Benning in Columbus, Georgia at the time * The home did very well on AirBNB * It was no surprise because there is a big need for temporary housing within military families

Launching a Business * When they came back to Ft Benning, they decided to get a couple more AirBNB houses * They saw that the need is definitely there: + If the base has no more available “on post” housing, the military will cover the cost of “off-post” housing + Sometimes a military family will arrive and will have to wait for on-post housing – they can now stay in one of Joe’s short-term rentals + The military also does a lot of TDY (temporary duty) travel. For example, a soldier based at Ft Benning but who is training at Ft Bragg can get a short-term place to stay + Families coming in to visit for the holidays, graduations or just visiting can stay in one of his rentals + When a soldier graduates from Basic Training or Airborne School, lots of relatives may come and they can all stay in one house, which is much more affordable than renting a bunch of hotel rooms - There’s a fully-stocked kitchen so mom can cook a great meal for the family * Took out his first big loan for the houses * As soon as he purchased, the Army said he was to go to the Ukraine * He thought he would now go bankrupt because he couldn’t be there to manage the houses + Short-term rental properties on AirBNB are operationally intensive * One of the guys he was deploying with said his wife (also a WestPoint grad) was staying behind and she could take care of the places * That ended up being his “secret sauce” to grow his business – military spouses to manage and maintain the properties + Spouses need portable, flexible employment that allows them to move around and raise their families and still contribute + They have a great community there + The Marine Corp has taken over + It started as a great Army organization but a few Marine Corp spouses “infiltrated the ranks” and have take over the show + Today, military spouses do everything from cleaning the houses, to booking and reservations, to maintenance and repair, to acquisitions and more + He currently has 50 employees * As he moved from base to base, he would just buy more houses * He also saw that the need was not just military bases + He’s in a college town, Columbia South Carolina has Ft. Jackson and the University of South Carolina - They picked up a lot of University business + Savannah, Georgia - 1st Ranger battalion - Also, a big tourism town * Today he has rentals from Pennsylvania, near the Poconos, all the way down to Texas * They also own, manage and lease in an Arbitrage model * They mostly have single family homes but they also have some smaller multifamily properties as well * He says he’s the “Walmart of short-term rentals” + They don’t have the million dollar beach homes + They do have some nicer properties + But what he has in his portfolio are “run of the mill” houses that cater to families traveling on a budget, groups of plumbers or electricians travelling to work on projects + Nothing fancy but affordable + His owners get a great return on their investment + They target “hotel-style cap rates with a single family backstop” * They have their own warehouses where they store all of their furniture + They get their furniture from hotel liquidators + His grandfather in Etowah, TN has a Christian training center for men leaving prison or recovering from drug or alcohol additions - He built them a woodshop - They learn woodworking - He supports their ministry by putting their furniture in their homes * They have an in-house renovation team too * Joe says, this is what the military is good at – taking on large logistical challenges * They currently have 350, wanting to reach 1,000 by the end of the year

Locations * They have expanded beyond just military bases to include vacation areas as well * Being so many areas, they have people on staff that do licensing and permitting only * He is in 27 different markets + The biggest risk being in so many markets is regulatory risks - If they change the local rules or regulations + What investors say is spread me across a wide geographic area so they can get diversification and risk mitigation * They currently have homes in: + Georgia + Alabama + Tennessee + Texas + South Carolina + North Carolina + Florida + Virginia

Management * He offers two different options when they work with other property owners: + The people just pay them them a management fee to manage their property - They have a digital and a full-service management package - They’ll do the digital management anywhere in the country * They handle booking, pricing, reservations, calendar management * They handle everything until the guests show up * When the guest hits the door, they are the owner’s responsibility, including cleaning + However, they do give the cleaners access to their software which shows the bookings and dates they need to be there + But, if the cleaner doesn’t show, it’s not their problem - For the full service, it has to be within their existing geographic perimeter and have a minimum of 5 properties, on the way to 10 + The other option is a master lease or rental arbitrage model - Joes team will go to a landlord and say, “We’ll give you a 3-5-year lease and guarantee your rent each month. You don’t have to worry about turnover.”

As an Investment * His cap rate is in the low to mid-teens * The best return comes from homes in cheap real estate markets that have a lot of turnover. Places like + Pensacola, Florida - Navy base - Beach traffic - But still affordable + Savannah, Georgia - They like this market a lot - On islands a few ways away * If you want to invest in one of their houses: + They’ll show you a menu of properties that their underwriters are looking at + You pick one + Their average home cost is around $220,000 + Furniture is generally $20,000 + His team goes out and closes on the house + Makes it an assignable contract to you + You finance it + They will take it from there

Biggest Mistakes * Through experience, he has learned a number of things: + He learned that there is a strong demand for the “Walmart AirBNB” - It’s not just the fancy vacation rentals only + You really do need to run Smart pricing - It helps for faster turnovers - It eliminates gaps in your scheduling - But you need a good operational infrastructure to do that * Short-term rentals are not passive income if you’re running them yourselves + When he only had 6 houses and was getting ready to deploy he was about to burn-out - He felt like it was a disaster * There was a problem every weekend * It was the opposite of passive income + He decided he was going to give up short-term rentals and go back to long-term rentals - Then he had to determine if he was going to hire another management company or form his own * If you only have 1 or 2 houses, you can manage them yourself * When you get up to 5 or more houses, you need help + He realized, through that, that short-term rentals are not passive income

Biggest Success * Relying on military spouses * There are a number of different groups + Some have been in the service for 20 plus years and have no small children to deal with + But the majority that work for Joe’s company are in their 30s

Advice for Old Dawgs Looking at Real Estate Investing to Help Them in Their Retirement Years * There are two house purchase type options: + It’s an investment property that you might want to use for yourself (i.e. beach house, etc.) - There are different considerations vs. purely investment property + Or it could be strictly be an investment house that you will never use yourself * The best return comes from homes in cheap real estate markets that have a lot of turnover. Places like + Pensacola, Florida - Navy base - Beach traffic - But still affordable + Savannah, Georgia - They like this market a lot - On islands a few ways away

Current Business * He thinks short-term rentals are really the place to be today in real estate * He wants to have 1,000 homes by the end of 2022 * By 2024, they want to be at 5,000 homes * By 2027, 25,000 homes

Rap-It-Up * Favorite real estate book: He never read one * Favorite business book: Rich Dad Poor Dad by Robert Kiyosaki * Favorite app: Guesty and Slack * Favorite quote: “Love your tenants and never sell” * If you lost everything – all your assets – and had to start all over, knowing what you already know, and you only had $1,000, what would you do to re-launch your real estate investing business? I’d go start knocking on doors at the nearest recreational lake that has nice houses and put flyers on them that ask them if they wanted to have me manage their property. There’s not a lot of competition on the management side.

How to Reach Joe * Website: Patriot Family Homes

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SHOW NOTES FOR EPISODE 604: FINDING THE BEST MARKET Investing in the right market is critical for successful real estate investing. Choosing the wrong market can seriously impact your property’s short and long term profitability. In this episode, Bill lays out the steps necessary to find a good emerging and profitable market for your real estate investing activities.

Previous episodes of our 10 Steps to Real Estate Investing Success series have thus far included:

1. 590: Is Real Estate Investing For You?
2. 592: What Type of Real Estate Investing is For You?
3. 594: Building a Winning REI Strategy!
4. 596: Knowing Your Numbers
5. 598: The Business of Real Estate Investing
6. 560: The Importance of Your REI Team
7. 602: How to Choose the Right Real Estate Investing Strategy for You

Finding the Best Market Today, I’m going to talk about how to find the best market to invest in.

However, I realize that finding the best market does not always pertain to every real estate investment. If you are investing in syndications, for example, the market has already been selected by your operator/GP/Sponsor. But that doesn’t mean you should ignore the fact if it is a good or bad market. Part of your due diligence needs to be verifying that the apartment or commercial property that is under syndication is in a good market.

If you are buying your own properties, it’s imperative that you do your due diligence to make sure your property is located in a market where your property will increase in value over time.

But keep in mind, it isn’t just about equity. A declining or stagnant market can also impact other key factors such as rents, which impacts cash flow. It can also affect the quality of tenants available to you which can affect repairs and maintenance, evictions, vacancy rates and more.

If you are investing in your own city, that’s best, if it can produce the numbers you need!

As I’ve mentioned numerous times on my show, I prefer emerging markets.

Definition of Emerging Markets Emerging markets are metro population centers in the USA (MSAs) and secondary and tertiary markets around the world where there is a strong demand for housing and where properties are in areas where properties are significantly increasing in value. In these areas, more jobs are being created. And, where you have more jobs, you have more people. This creates a pent up demand for housing (apartments, single family homes, etc.) and other support services and businesses. In areas where larger businesses are relocating or expanding, new jobs are being created, appealing lifestyles are emerging, rental potential increases, and retail shopping centers and services are needed to meet the needs of the growing population. This phenomenon also creates various paths of progress.

First Steps in Researching New Markets

1 – Start talking with local brokers

2 – Do online research (census.gov, IRR.com, data.gov, globest.com). In Google: type city name and write “economic growth” or “potential new business.” Put city’s name and Forbes, Wall Street Journal or WSJ, Fortune, US News & World Report and the local Business Journal for that area.

Vinney’s Secret Research Trick!

A frequent guest of the Old Dawg’s Podcast is Vinney Chopra. He has always purchased in Emerging Markets. A trick he uses to get good market information is this: He signs up to receive Offering Memorandums (OMs) from multiple brokers in his target areas. The great thing about OMs is that because the big brokerage firms have extensive research budgets and resources, they do excellent market research. The OMs always have, in the last pages of the OM, a wealth of market information with extensive exclusive data. He would use this data for his own research and share it with his investors.

Vinney will occasionally bid on OMs he receives via email (if the numbers make sense) but does not often win the bid because the prices are usually to high compared to the off-market properties he finds.

3 – Research the jobs numbers

4 – Look at occupancy numbers and trends up or down – Is it 90% and above?

5 – Look at multifamily building permits being issued in the city

6 – Migration info (who and how many are moving there)

7 – Contact the local Chamber of Commerce (they have great info on local business growth)

8 – Contact the local planning commission on their plans for 5, 10, 20 years down the road

9 – Visit the city – meet with chamber, brokers, others

10 – Look for new employers in the area, new hotels, restaurants, WalMarts, large manufacturing plants, etc

And this is all BEFORE you bid on a property!

Some thoughts on Researching and Planning

1) Research the curve – the concept of existing property market cycles is not myth, it’s a fact and is generally accepted to be based on a price-income relationship. Check the recent historical price data for properties in the area of the state or county you’re considering purchasing in and try to determine the overall feel in the market for prices currently. Are prices rising, are prices falling or have they reached a peak?. You need to know where the curve of the property market cycle is at in your preferred investment area.

2) Get ahead of the curve – as a basic rule of thumb, professional real estate property investors seek to buy ahead of the curve, or as close to the base of the bell curve as possible. If a market is rising they will try and target up and coming areas, areas that are close to locations that have peaked, areas close to locations experiencing redevelopment or investment. These areas will most likely become ‘the next big thing’ and those who buy before the trend will stand to make the most gains. As a market is stagnating or falling many successful investors target areas that enjoyed the best levels of growth, yields and profits very early on in the previous cycle because these areas will most likely be the first areas to become profitable as the cycle begins turning towards positive once more.

3) Know your market and who are you buying property for. Are you buying to rent to young executives or workforce housing, purchasing for renovation, to resell to a family market or purchasing to rent out real estate for short term? Think about your market before you make a purchase. Know what they look for in a property and ensure that it is what you are going to be offering them

4) Think further afield. There are emerging real estate property markets around the country and around the world where economies are going from strength to strength, where a growing tourism sector is pushing up demand or where constitutional legislation has been or is about to be. Look further afield than your own back yard for your next property investment and diversify that real estate portfolio for maximum success.

5) Purchase price. Set yourself a budget that will realistically allow you to purchase what you’re looking for and profit from that purchase, either through capital gains and/or rental yield.

6) Entry costs. Research fees, charges and all expenses you will incur when you buy your property. They differ from state-to-state. Know how much you will have to incur and factor this amount into your budget to avoid any nasty surprises and to ensure your investment can become profitable.

7) Capital growth potential. What factors point to the potential profitability of your real estate property investment? If you’re buying to rent out, are there any indications to suggest that demand for rental accommodation will remain strong, increase or even decline? Think about what you want to achieve from your investment and then research and find out whether your expectations are realistic.

8) Exit costs. If you will incur substantial capital gains taxation liability if you sell your property investment for profit, will that render the investment profitless

9) Profit margins. What levels of capital growth can you realistically gain on your property investment or how much rental income can you generate? Work out these facts and then work backwards towards your initial budget to work out your potential profit margins. At all times you have to keep the bigger picture in mind to ensure that your real estate investment has good potential for profit.

10) Think long term. Unless you’re buying property off-plan and intending to flip it for resale and profit before completion, you should view real estate investment as a long term investment. Real estate is a slow to liquidate asset, cash tied up in property is not simple to free up. Take a long term approach to your property portfolio and give your assets time to increase in value before cashing them in for profit.

Developing Local Contacts

The next step is to find the people who know the markets best. Commercial Brokers, Property Managers. Start building relationships with these people early on. Some of the top real estate investors may study a market for a year or more before even approaching a broker. For example, when one leading investor finally knew he wanted to invest in the Atlanta area, he scheduled a 4-day trip. On the trip, he talked to the top people at major commercial brokerage firms (presidents, executive VPs, etc.) and other in the area. When he returned home, he started texting and mailing his contacts every 10 days. He would send articles on Atlanta that he found and would ask them to send him articles about Atlanta. He also sent gifts (chocolates, gift cards, etc.) to stand out and win favor. In the beginning, the properties brokers would send him were overpriced and he wasn’t interested. As the brokers started to see his property criteria and that he was a serious buyer, they started offering him “pocket listings” (which are off-market properties that are often below market value) that better met his criteria.

In Conclusion

This may seem like a lot of work and it is. But taking the time to do it will yield significant returns. I have seen 300% returns in anywhere from a 3 to 6 year time period, all because I bought in the right markets. I know that that is certainly not the norm nor would I say you will achieve those numbers. All I can say is that makes sense to put in the time required to buy right

Smart investors, seeking out emerging markets first, will find the best areas to invest for both the short and long term.

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

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Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

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If you are serious about real estate investing, you need to know the basic “lingo” spoken by other investors. Nothing is worse than having a conversation with someone you want to impress when you realize you haven’t understood a word they’ve said in the last 30 minutes.

To help you be better prepared as you network with others and try to grow your real estate holding, we’ve put together a handful of common terms that most investors should know.

The following list is comprised of terms you may encounter as you talk with other real estate investors and related professionals (bankers, escrow and title officers, agents, lawyers, etc.) on a regular basis. Understanding these terms will help you better understand and converse in the real real estate world.

We’ll begin in the middle of the alphabet with “M” words, such as “mortgages.” Mortgages always seem to be a hot topic.

Mortgage: is a lien on the property that secures the Promise to repay a loan. A loan to finance the purchase of real estate, usually with specified payment periods and interest rates.

Mortgage broker: Is a professional who works for a firm that originates and processes loans for a number of lenders.

Mortgage banker: Is a company that originates loans and resells them to secondary mortgage lenders such as:Fannie Mae or Freddie Mac.”Who????”, you ask. Just, read on.

Fannie Mae: Is a sort of acronym which stands for Federal National Mortgage Association (FNMA); a federally-chartered enterprise owned by private stockholders. This enterprise purchases residential mortgages and converts them into securities for sale to investors; by purchasing mortgages, Fannie Mae supplies funds that lenders may loan to potential home buyers.

Freddie Mac: Is another acronym of sorts is the Federal Home Loan Mortgage Corporation (FHLM); a federally-chartered corporation that purchases residential mortgages, coverts them into securities,and sells them to investors, providing lenders with funds for new home buyers.

Mortgage insurance: Is a policy that protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan. Mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home’s purchase price.

ARM: Adjustable Rate Mortgage is a mortgage loan subject to changes in interest rates. When rates adjust, ARM monthly payments increase or decrease at intervals determined by the lender. The change in monthly payment amount, however, is usually subject to a Cap. “What is Cap in this case?”, you ponder. Again, just read on…

Assumable mortgage: Is a mortgage that can be transferred from a seller to a buyer; once the loan is assumed by the buyer the seller is no longer responsible for repaying it; there may be a fee and/or a credit package involved in the transfer of an assumable mortgage.

Amortization: Is the repayment of a mortgage loan through monthly installments of principal and interest. The monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period.

Appraisal: Is a document that gives an estimate of a property’s fair market value; an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.

Assessment: This is a term used to determine the real estate taxes on a property, usually conducted by the County Assessor’s Office.

Balloon Mortgage: Is a mortgage that typically offers low rates for an initial period of time, after the said time period elapses, the balance is due or is refinanced by the borrower.

Bankruptcy: Is a federal law whereby a person’s assets are turned over to a trustee and used to pay off outstanding debts. This typically occurs when someone owes more than they have the ability to repay.

Building code: Is based on a set of agreed upon safety standards within a specific area. A building code is a regulation that determines the design,construction, and materials used in building.

Broker: A broker is an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. A real estate broker has continued his or her education past the real estate agent level and passed the real estate broker’s license. Real estate brokers can work as independent real estate agents or have other agents working for them. The biggest distinction between an agent, Realtor and a broker is that a broker can work on his or her own, while an agent or associate has to work under a licensed broker.

Cap: Is a limit, such as that placed on an adjustable rate mortgage, on how much a monthly payment or interest rate can increase or decrease.

Cap Ex or Capital Expenditures: Are funds used to acquire or upgrade physical assets such as property, industrial buildings or equipment. Larger expenses, like roofs, mechanicals (plumbing and electrical), that are considered to be a contribution to the long term value of the property are called “capital expenses.”

Cap Rate: The capitalization rate is the rate of return on a real estate investment property based on the income that the property is expected to generate. The capitalization rate is used to estimate the investor’s potential return on his or her investment.

Cash Flow: On the Old Dawg’s REI Network we like to say “Cash Flow is King.” Cash flow is the lifeblood of your investment. Cash flow can be calculated at the simplest levels by the following equation: Cash Flow = Revenue – Expenses. We also call it your “take home” pay or your true profits after all expenses, including PITI.

Cash-on-Cash Return: Cash-on-cash return is a rate of return often used in real estate transactions that calculates the cash income earned on the cash invested in a property. For example, when an investor purchases a rental property, she might put down only 10% for a cash down payment. Cash-on-cash return measures the annual return the investor made on the property in relation to the down payment only.

Credit Bureau Score: a number representing the likelihood a borrower may default. This number is based upon credit history and is used to determine ability to qualify for a mortgage loan.

DSCR: The debt service coverage ratio (DSCR), also known as “debt coverage ratio” (DCR), is the ratio of cash available for debt servicing to interest, principal and lease payments. It is a popular benchmark used in the measurement of an entity’s (person or corporation) ability to produce enough cash to cover its debt (including lease) payments.

Debt-to-Income Ratio: a comparison of gross income to housing and non-housing expenses. With the FHA, the-monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income.

Debt Service: This is a fancy way to say “mortgage payment.” It’s the money required to “Service the Debt” on the property. It includes the interest on the loan and any pay back of the loan balance (principal reduction, defined below). The NOI minus the Debt Service equals your cash flow.

Doors or Units: It refers to the rentable living areas or rental entities of a real estate investment. For example, a 12-unit apartment is said to have 12 doors. Three single family homes are said to also be 3 units or 3 doors.

EEM: Is short for an Energy Efficient Mortgage. This is an FHA program that helps home buyers save money on utility bills by enabling them to finance the cost of adding energy efficiency features to a new or existing home as part of the home purchase

Equity: The difference between the market value and unpaid mortgage balance on a property.

Fair Housing Act: Is a law that prohibits discrimination in all facets of the home buying process on the basis of race, color, national origin, religion, sex, familial status, or disability.

Gross Rent Multiplier or GRM: the ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, utilities, etc. The number of years the property would take to pay for itself in gross received rent. For the investor looking to purchase, a higher GRM (perhaps over 12) is a poorer opportunity, whereas a lower one (perhaps under 8) is better.

Home Inspection: Is an examination of the structure and mechanical systems to determine a home’s safety; makes the potential home buyer aware of any repairs that may be needed.

IRR or Internal Rate of Return: The rate of growth a project is expected to generate. While the actual rate of return that a given project ends up generating will often differ from its estimated IRR rate, a project with a substantially higher IRR value than other available options would still provide a much better chance of strong growth.

Interest rate: Is the amount of interest charged on a monthly loan payment. This is usually expressed as a percentage.

LTV or Loan-to-Value: ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The term is commonly used by banks and building societies to represent the ratio of the first mortgage line as a percentage of the total appraised value of real property. For example, a borrower taking on a $92,500 mortgage to purchase a home appraised at $100,000 would have an LTV ratio of 92.50% (92,500/100,000).

Lease Purchase or Lease Option: This exits to assist low- to moderate-income home buyers in purchasing a home. It allows them to lease a home with an option to buy. The rent payment is made up of the monthly rental payment plus an additional amount that is credited to an account for use as a down payment.

Lien: Is a legal claim against property that must be satisfied When the property is sold

PITI: Stands for Principal, Interest, Taxes, and Insurance. These are the four elements of a monthly mortgage payment. The payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance goes into an escrow account to cover the fees when they are due.

Phase 1 Study: A study to determine the potential environmental hazards that exist on a property.

Pre-qualify: This is when a lender informally determines the maximum amount an individual is eligible to borrow.

Pre-payment: This is a payment of the mortgage loan before the scheduled due date; maybe Subject to a prepayment penalty.

Principal: The amount borrowed from a lender. The principal doesn’t include interest or additional fees.

REO (Real Estate Owned): Property that was foreclosed on by a bank that held a mortgage on the property or a tax lien holder that foreclosed.

Real estate agent: Is an individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker.

REALTOR ®: Is a real estate agent or broker who is a member of the NATIONAL ASSOCIATIONOF REALTORS, and its local and state associations.

Refinancing or Re-Fi: Means paying off one loan by obtaining another. refinancing is generally done to secure better loan terms such as a lower interest rate on a loan.

Rehabilitation mortgage: Is a mortgage that covers the costs of rehabilitating (repairing or Improving) a property. Some rehabilitation mortgages, allow a borrower to roll the costs of rehabilitation and home purchase into one mortgage loan.

Rent to Value: The ratio of rental income to the price of the property. This ratio takes the annual amount of rent received divided by the price paid for the property. As an example, if a property is purchased for $100,000 and the monthly rent is $500 ($6,000 annually), then the rent to value ratio is 6%

Return on Investment (ROI): A performance measurement used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ROI measures the amount of return on an investment relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio.

Short Sale: A sale of real estate in which the proceeds from selling the property is less than the amount owed.

Sweat equity: Using your own labor to build or improve a property as part of the down payment

Title Insurance: This is insurance that protects the lender against any claims that arise from arguments about ownership of the property;also available for home buyers.

Title Search: A check of public records to be sure that the seller is the recognized owner of the real estate and that there are no unsettled liens or other claims against the property.

Of course, there are many more terms and different types of mortgage situations to explore and educate yourself on. But, the above definitions are a good start toward becoming acquainted with the language, lingo and important concepts in real estate.

So the bottom line on real estate lingo is ASK. Don’t let someone throw out a term when you are evaluating a deal and not ask what they mean by it. There’s nothing wrong with getting more clarity and making sure that you are talking about the same thing.

Bill Manassero is the founder/top dog at the “Old Dawg’s REI Network,” a blog, newsletter and podcast for seniors and retirees that teaches the art of real estate investing.

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SHOW NOTES FOR EPISODE 603: UNINTENTIONAL REAL ESTATE TYCOON He didn’t set out to be a success in real estate. In fact, he never planned to get into real estate at all. In today’s podcast, entrepreneur and real estate investor Gregg Cohen shares how he went to college, got a corporate job, got disillusioned with the corporate job and then read a book that changed his life.

What You Will Learn * Why networking is such a critical element to real estate investing success * How Gregg decided on the best real estate strategy for him * Why choosing a single market where you live can be the best investing approach * How his company survived the Great Recession * Why, when everyone else was running for the hills, he decided to triple-down * The value of partnerships * Why long-term leases is one of the smartest moves a rental property landlord can ever make * How he redefined the term “Turn-Key”

About Our Guest Gregg Cohen Gregg Cohen never intended to be an entrepreneur, but when the corporate world left him disillusioned, depressed, and demoralized, he decided to take a leap of faith. So Gregg created JWB Real Estate Capital, a vertically integrated real estate investment company dedicated to making rental property investing easy for clients. Gregg doesn’t just want to own a successful business; he wants to change people’s lives. With 4,500+ rental properties under management, more than $40 million in positive cash flow returned since 2011, and 1,200+ clients served across 43 states and 13 countries, it’s safe to say real estate investment is the vehicle that helps him do both.

More About Gregg * Gregg is from Jacksonville, FL * He was raised by a single mom * He didn’t start out looking for real estate or entrepreneur opportunities * Neither of his parents were in real estate or entrepreneurs * Went to college at the University of Florida * Worked hard * When he graduated, he tried to get a good job * He got a corporate job and was really proud and his parents were very proud * He got measly signing bonus but he was still excited about it * After working there for a year and a half, he felt demoralized and it wasn’t what he expected * The thought of working his way up the corporate ladder no longer appealed to him * He didn’t know what to do * A friend gave him a copy of Rich Dad Poor Dad * He started reading it 9pm and finished it 2am and was powerfully motivated * He looked at himself in the mirror and said, “I’m going to quit my job and start my own real estate company.”

Starting a Real Estate Company * In 2006, he contacted one of his best friends (who became his partner in the company) * They started on the journey to build this real estate company * They didn’t have any much knowledge, experience, or money * They had the attitude that they would figure it out as they went along the way * They went to as many REI meet-ups they could, asked people out to lunch to get as much free advice as they could * One thing they saw was that most real estate investors out there treated it like a hobby * They thought, it they treat it as a business they might do better

Getting Educated and Finding Mentors * Instead of doing just one deal, they decided to first surround themselves with education, mentors and training * They found some really great mentors along the way * It wasn’t about how to do the first deal, it was about how to build a business for their clients, for the community and for themselves * They also had to look at their survival * Their motto was “grip it and rip it” and see what works * In their first year, they got an article written about their company in the paper

Their First Deals * They weren’t sure what type of real estate investing they wanted to do so they just started trying different things * They tried: + Wholesaling + Flipping high-end homes + Flipping low-end homes + Lease options + Seller Financing + Little bit of commercial + Rental properties * Two things they learned early that really helped them was the value of passive income and the value of holding rental properties + They saw this as key, especially since they were starting at such a young age * They started setting money aside * Then, they built up a portfolio of 40 rental properties in the first year and a half + They bought homes, renovated them and worked on the financing so that they were positive cash flow – that was to be their retirement fund * He added another business partner

The Great Recession Hits * 2007 and 2008 hit! * They were rough years * Not having much experience as business men and real estate investor made it even harder * They took some large losses * It forced them to learn from that experience * They had to take a look at what was working and what wasn’t working + It was taking so much time to find the real estate, renovate, selling, etc. and they were still loosing money – they felt that that was time lost * One day, they looked at their financials just to see how the rental properties were doing + The rents were still coming in + Now, the values were going down but they didn’t care much about that because they were for retirement + In the midst of everything else going on, this was very cool

Re-Engineering Their Business * They realized they had to make a decision * While everyone else was running for the hills, they decided to triple-down + They decided to: - Borrow more money - Hire more people - Invest in more systems and technology * They knew that real estate was cyclical * If they could get through this, they knew that real estate values would come back * And when they do, they could double-down and triple-down and be so far ahead of their competition that they will be in a position of strength * That’s what they did * They said no to all the other activities they were doing * They sold for massive looses across their business and stopped all other activities * Their focus switched to only rental properties and on teaching others how to do the same * That’s what they have done over the last 16 years * They now have helped thousands of clients from 49 states and 13 countries to buy properties in Jacksonville, FL * They are also only committed to single family homes – only in Jacksonville!

Their Definition of Turn-Key * They own the house before they sell it * They renovate or build, from ground-up, the home * Gregg’s company also manages the property with their own property management company * His company in a “vertically integrated” company + They not only focus on how to reduce maintenance costs and collect rents + It is their goal to manage the property for a full market cycle (10-20 years) + They have vertically integrated departments - A department focused on boosting median incomes in the area. If median incomes don’t rise, it’s likely values won’t rise - Serving the community at large - An innovation department - Committed to one market * How they work with new clients + First, they build a plan - Understand what goals and resources are of the client + Then, the client gets to choose a crafted portfolio from assets Gregg’s company owns internally - Gregg buys land years in advance - Gregg’s company builds new construction homes on the land + Then, they put a new resident in the home - the tenant signs a long-term (2-3 year) lease + They’re more like financial advisors than real estate agents when working with their clients * The client buys the home outright + Median price in Jacksonville right now is $325,000 + But they are selling homes lower-prices $180,00-$280,000 - Newly constructed homes are$225,000-$280,000 + The buyer should be prepared for about $50,000 out-of-pocket for down payment, closing costs, etc. + The buyer controls the asset + 60-70% of their clients use conventional financing - With rates so low, it’s a great value + They really work with clients to determine what the best strategy would be for them + They help them find local financing - They will match them with their lender – one that is likely to convert * The client has to be comfortable being a “passive investor” That means: + You need to let your team make a lot of the decisions (not every decision) for you when it comes to managing your investment properties - Decisions like selecting good tenants would go to the team * Right now they are building homes and then renting them + They are generally in “C class” neighborhood” + Below middle neighborhood – not low income – workforce housing + Low prices and high rents + Jobs nearby + Homes have appreciated above the national average since 1982 + High growth * Returns + Cash-on-Cash – slightly over break-even + If you look at other profit centers – 7-9% (with tax savings and principle pay-down) + If you include the upside to home appreciation – over 20% + Look at all 5 profit centers 1. Net rental income (positive cash flow) 2. Tax savings 3. Principle pay-down 4. Home price appreciation 5. Hedge against inflation * Long Term Leases + The longer your tenants stay, the more advantages for the owner - Decrease in maintenance and repairs costs - Decrease in vacancy costs - Decrease in property management costs * They make money when new tenants come in – usually one month’s rent * They make money when tenants renew their one-year lease 0f 50% on the monthly rate * These fees are 25% of their income * They also make money in a turn-over – painting, cleaning, repairing – it can be as much as one year’s cash flow!

Biggest Mistake * 2011-2012, their company survived the great recession and had finally hit their stride + Went from sales of 60 properties to 174 in one year + They realized that they had a product and service that was of appeal to people + They had customers that were beyond friends and families * They experienced “shiny object syndrome” + They thought, because they use Title companies to sell their properties, that they should start their own + They thought that maybe hey could open their own lending arm + It was a disaster

Biggest Success * He was thinking, “How could I bring more business into their company?” * He saw how, when they spent more time with people, the client experience is better * So, he thought, how could we spend more time with our clients * They created an online community called “Not Your Average Investor Show” and the “Not Your Average Investor Community” + Started it in January 2020 + When Covid hit in March, it went from 5 people participating to 100s because people were scared - People didn’t know what was going on with real estate - People didn’t know what was going on in the real world - They were locked down - They were looking for answers + It was a very special time - He got to be there with his clients - He didn’t always have the answers but he at least was there + It’s still continuing - It’s every Tuesday and Thursday * He learned a lot about community through the experience

Advice for Old Dawgs Looking at Real Estate Investing to Help Them in Their Retirement Years * This is a really special time to be investing in rental properties * He has been investing for 16 years and it has never been more clear about the big market dynamics and how they are going to affect real estate over the next 12 months * Interest rates are going up based on the feds actions and that is expected to continue and that will have a direct impact on financed rental properties * If a property goes from 4% to 5%, that could reduce cash flow by 30% * Supply and demand for housing is way off * In Jacksonville, he sees it first hand – there are not enough homes to meet the demand * New homes are being built but it will take a long time to balance things out * In the meantime, there will be higher than normal home appreciation * Interest rates are going up * Home prices are going up * If you buy a property today, it will have a better return and more cash flow today than if you buy that same asset one year from now * If you talk with the most savvy investors, economists and pundits, there are big changes ahead for real estate investing * However, if you plan things right NOW, you can still do well but it takes a good team professionals that can guide you through the process

Current Business * There’s a lot more than buying, building, selling and managing properties * If that’s all you’re doing, it becomes pretty hollow * The properties are the “widget” * But they really want to do is to change people’s lives * The best day of the year is when they do the annual JWB Charity Golf Tournament + They raise hundreds of thousands of dollars from sponsors, their network of clients, and friends and family + They also do car washes + It’s all “homegrown” + And they use all the money to build a brand new construction home and they they give the home to a local veteran who really needs a hand with affordable housing + Gregg said, “When a military man or woman shakes your hand and tells what an impact you have made on their lives it’s something that I take with me forever.” + Those are the things that matter to Gregg and his team

Rap-It-Up * Favorite real estate book: Rich Dad Poor Dad by Robert Kiyosaki * Favorite business book: Good to Great by Jim Collins * Most valuable web site for success (other than your own): The website for the local Business Journal in your investment area * Favorite app: TrueBill * Favorite quote: “The man who says he can and the man who says he can’t are both right! Which one are you?” * If you lost everything – all your assets – and had to start all over, knowing what you already know, and you only had $1,000, what would you do to re-launch your real estate investing business? First, I would do all the free things I could to learn how to invest. I would use the $1,000 to put as a down payment or as an option fee. Then, I would option that contract out to another investor. Basically wholesaling. You can make substantial gains if you know what you’re doing.

How to Reach Gregg * Website: JWBMakesitEasy.com * Phone: 904-677-6777 * Podcast: Search for Not Your Average Investor Show * Podcast website: NYAIS.com * JWB Facebook Group – jwbfacebookgroup.com * JWB Facebook Business Page – facebook.com/CashFlowProperties * JWB YouTube – youtube.com/c/JWBRealEstateCapitalJacksonville * JWB Twitter – twitter.com/jwbcompanies * Gregg’s LinkedIn – linkedin.com/in/gcohen31/

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

Check out our other podcasts at olddawgsreinetwork.com.

Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

Additional Episode Sponsor: Meno Studio – menostudio777@gmail.com

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SHOW NOTES FOR EPISODE 602: HOW TO CHOOSE THE RIGHT REAL ESTATE INVESTING STRATEGY FOR YOU Choosing the right real estate investing strategy is critical for your long term success. Nothing is worse than spending countless time and money on an REI strategy only to find that you hate what you’re doing. In today’s podcast, Bill provides a way to better assess the multiple strategies available and he shows how you can sort through and select the best strategy for you.

Previous episodes of our 10 Steps to Real Estate Investing Success series have thus far included:

1. 590: Is Real Estate Investing For You?
2. 592: What Type of Real Estate Investing is For You?
3. 594: Building a Winning REI Strategy!
4. 596: Knowing Your Numbers
5. 598: The Business of Real Estate Investing
6. 560: The Importance of Your REI Team

How to Choose the Right Real Estate Investing Strategy for You Introduction In Episode 592 of our 10 Steps to Real Estate Investing Success series, I talked about various real estate investing strategies. And there are A LOT of them – a lot of ways to invest in real estate. It may seem overwhelming if you look at all of them but, in today’s podcast, I’ve tried to separate the various strategies in categories that might be helpful to help you sort through and decide what works best for you.

When I first sought out real estate investing because I needed to generate monthly cash flow. I was leaving the mission field and I had no other source of income outside of a small monthly Social Security payment. So, Cash Flow was my priority. Or, as we say here on the Old Dawg’s Network – cash flow is king!

Whether you are a newbie or an experienced investor, you can still look at all these various strategies to consider now or in the future. If you are an experienced investor, you may hear about a strategy that might work better than your current strategy or can be an add on to what you are already doing in the future.

When trying to access what strategy is best for you, there are certain factors you need to consider:

• How much time do you have?
• How much money do you have?
• The location of the properties (if you are not buying in your own city or state)
• Does it have tax advantages?
• Do you need to learn new skills to do the strategy?

You also need to carefully avoid the “Shiny Object Syndrome”

• The “Shiny Object Syndrome” is when every strategy looks good and you want to pursue all or multiple strategies
• You heard a great pitch on a YouTube video
• Got caught up in an emotional appeal or special “one-time” offers at seminar, webinar or boot camp
• And before you know it, you’re enrolled in programs, have purchased home study packages and have spent $1,000s of dollars

You need to do this scientifically. Really study the strategies that fit YOUR needs and dig deep. Don’t be distracted by the “shiny object.” Do your due diligence before you spend a cent!

Buying a Property That Generates Monthly Cash Flow * Single Family Homes * Small multis: Duplexes/Triplexes/Quads * House Hacking * Section 121 – Live-in-Then-Rent * Condos and Townhomes * Multifamily + Small Apartments + Large Apartments * Short Term Rentals: AirBNB & VRBO * Mobile Home Parks * Billboards * Commercial + Office Buildings + Hotels + Self-Storage + Industrial + Retail - Large malls - Strip malls - NNN

Buying a Property that doesn’t generate monthly cash flow * Ground-up Development * Raw land (buy ‘n hold or flipping) * Houses, multifamily, commercial (buy ‘n hold or flipping) * Wholesaling * Fix ‘n Flip * Live-in-Flip

Pros and Cons of the above strategies * Pros: Can generate large amounts of cash quick * Cons: Can require a lot of time and upfront money * Cons: tax hit can be big with Capital Gains Tax * Comments: Many start in this area to find the purchase of rental properties to grow a portfolio

Strictly Investing in Property without Controlling the Investment * Private Money Lender * Hard Money Lending * Syndication * REITS * Crowdfunding * Discounted Deeds * Liens

No or Low Money Down Strategies Or maybe your top requirement is that you don’t have much money to invest and you want to look at strategies where you can get in for no or low money down:

• Wholesaling
• Flipping with hard money financing
• Seller financing deals
• Crowdfunding

Truly Passive Strategies Requiring Little or No Work Required Or if money is not an issue but you can’t devote much time or would rather not work. Then you would look at more passive strategies like:

• Syndication investing
• REITS
• Crowdfunding
• Private Money Lender

Once you zero in on a strategy that fits your needs, then you may want to find a niche. A niche is a specific area of specialization within a strategy

The Difference Between a Strategy & a Niche * Rental Property (the strategy) + Niche: ADUs + Niche: Student Housing + Niche: Section 8 or Special Needs/Agency tenants * Multifamily Investing (the strategy + Niche: Low-Income Housing + Niche: Military housing + Niche: Student Housing * Single Family Rental Homes (the strategy) + Niche: Rent-to-own/lease options + Niche: Short-Term Rentals (Airbnb or VRBO)

Your choice of a niche will depend first of all on your unique circumstances, skills, and interests. But it will also depend on the market opportunities in the place and time you choose to invest.

Basically, to identify a strategy and a niche, you need to ask yourself and answer three questions.

Which niche …

• interests and excites me?
• uses my existing skills, strengths, or expertise?
• meets a clear need in my target marketplace?

If you want to dig deeper on any of these strategies or niches, just do a search on the Old Dawg’s website (type in, for example, the word REITs) and there will be lots of articles and podcasts – all for free – to reference and to dig deeper to see what they are all about

Well, I hope that helps you. Picking the right strategy and niche can save you years of heartache and expense

Well that’s it for today!

Other podcast episodes to reference:

• 229: Finding Your Strategy and Your Niche
• 592: What Type of Real Estate Investing is For You?
• 542: Which Real Estate Investing Strategy is Best for You?
• Multiple Streams of Income in Real Estate Investments
• 582: A Beginner’s Guide to Making Money in Real Estate
• 079: Buy & Hold Investing and Avoiding Shiny Objects
• Which Types of Real Estate to Invest In
• 079: Buy & Hold Investing and Avoiding Shiny Objects

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

Check out our other podcasts at olddawgsreinetwork.com.

Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

Additional Episode Sponsor: Meno Studio – menostudio777@gmail.com

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What? How can I get a 25% annual return on one real estate investment when interest rates charged bankers are almost zero, savings rates are 1 to 2%, and mortgage rates are about 4%. Your mother, bless her heart, would shake her finger at you and say, “If it sounds too good to be true.…” You know the rest.

What if I could show you how to get an annual return on investment (ROI) of 6.9%, 9.5%, 14% and even 25% ROI annually in this investment climate?

Jean Folger at Investopedia writes, “Return on investment is a measure used to estimate and evaluate the performance of an investment or to compare the performance of a number of different investments. To calculate ROI, the net profit of an investment is divided by the amount of money invested, and the results are expressed as a percentage or ratio.

For instance, if you buy ABC stock for $1,000 and sell it two years later for $1,600, the net profit would be $600 ($1,600 – $1,000). The ROI on the stock would be 60% ($600 ÷ $1,000 = 0.60). The annual ROI can be calculated by dividing the 60% by the number of years (2) and that is 30% annual ROI.

In a Cash Real Estate Property Transaction, you might buy a property for $100,000, spend $9,000 on carpets and paint, $1,000 on closing costs to bring your entire cost to $110,000. Suppose you rent the property for $800 a month or $9,600 for the year, less expenditures for property taxes and insurance of $167 per month, you enjoy an annual return on your $110,000 of $7,596. That’s a 6.9% ROI cash on cash return.

In a Financed Real Estate Property Transaction, “Assume you purchase the same $100,000 property as above, but instead of paying cash, you take out a mortgage, making a 20% down payment. Your costs are $20,000 for the down payment ($100,000 sales price x 20%); $2,500 for closing costs (they’re higher because of the mortgage) and the same $9,000 for remodeling. Your total out-of-pocket expenses are $31,500 ($20,000 + $2,500 + $9,000).

“Assuming your tenant pays $800 every month, you will have a cash flow of $251.07 monthly ($800 rent – $548.93 mortgage payment including property taxes and insurance). Again, fast forward one year. Multiplying that $251.07 by 12 determines your net annual income, or return: $251.07 x 12 = $3,012.84.”

Next, divide the annual cash flow by your original out-of-pocket expenses (the down payment, closing costs and remodeling) to determine the ROI. $3,012.84 ÷ $31,500 = 0.095. Your ROI is now 9.5%.

If you include equity build-up, which is not cash, the return gets bumped to 14%.

If you are planning on investing in income producing properties, these are the calculations you would make to determine which has the greatest ROI. Of course location, location, location and other factors also figure in.

So, how can I get a 25% annual return on a real estate investment?

Suppose we find a $50,000 four-plex, where the property yields $2,000 ($500/unit) monthly rent. The investor puts in $50,000 (I’m not adding any closing costs to keep it simple) and in one year (provided he has no vacancies) he will receive $24,000, nearly a 50% return on his initial investment of $50,000. Factor in expenses, property tax, insurance, etc. and it goes down to 25%. That is very simple but possible.

If you change the above example to $100,000 for an eight-plex and put down 20%, your total out-of-pocket expenses are $31,500 ($20,000 + $2,500 + $9,000).

Your tenants pay $4,000 every month, 8 units X $500, or $48,000 per year. After mortgage payments including property taxes and insurance) the ROI on your cost of $31,500 is over 100%!

Our examples of returns greater than banks and government bonds are based on actual circumstances. Maybe the examples still don’t fit your financial and risk parameters. Currently, investors that participate in an apartment syndication are getting a flat 7-10% yield, without any real management responsibilities or expenses.

You might get the impression that we like real estate. We do and we see many opportunities to get decent returns on your hard-earned savings. Do your homework, work the numbers and don’t settle for less than your target and you can achieve significant profits through sheer determination and commitment alone.

Bill Manassero is the founder/top dog at the “Old Dawg’s REI Network,” a blog, newsletter and podcast for seniors and retirees that teaches the art of real estate investing.

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SHOW NOTES FOR EPISODE 601: INVESTING STRATEGIES FOR THE NEW REAL ESTATE MARKET Where can you invest $80 and make $800,000? Only in real estate! In today’s podcast, author, coach and real estate investor Chris Prefontaine shares the strategies he and his students regularly employ to make insane profits and achieve financial independence.

What You Will Learn * What a lease purchase is and how you can make serious money with it * How you can make $100,000 by just investing $10 * Why a Rent-to-Own home can give you Three Paydays * How you can help people in need and get paid for it * What kind of situation is good for a lease purchase * How one of his clients spent $80 to make $800,000 * Who is the best prospect to buy a Rent-to-Own house

About Our Guest Chris Prefontaine Chris Prefontaine is a 3-time best-selling author of Real Estate on Your Terms, The New Rules of Real Estate Investing, and Moneeka Sawyer’s Real Estate Investing for Women. He is the Founder and CEO of Smart Real Estate Coach and host of the Smart Real Estate Coach Podcast.

Previous Old Dawg Podcast Interview: 209: Buying Real Estate Without Cash or Loans May 28, 2018

Update * Since we last talked, he bought his own building to house his company + It’s on an island, that’s part of Rhode Island - He lives and works on the island - It only has three towns - It’s a pretty tight market - Homes go at a premium + It’s a 6,000 sq ft commercial/multi-use building, which is tough to find bank financing for - So, he ended up buying it on terms from the owner with owner financing * Regarding his coaching/training business + His “Wicked Smart” community has grown and spread across the country + He works directly with his “associates” (the name he calls his clients/students) to help them close deals * There are a bunch of good marketers in the real estate investing coaching/training space but they aren’t doing a bunch of deals + His company is trying to close that gap - He has tweaked what he teaches a bit to make that happen - He is in the lease-purchase, owner financing and “subject to existing financing” deals niche * He’s pushing longer terms (5-10 year terms) for his students’ deals so that don’t get caught up in any cycles * He’s also added a second component: + He helps his higher level students how to establish themselves as “the expert or authority” in their marketplace - He has a new book coming out called “Sell With Authority”

Trends * What Chris has been seeing of late * He was just in a mastermind group of 21 higher level people in his organization * Because his Wicked Smart Community is all across the country, he sees a microcosm of trends that are occurring * He’s seeing: + More and more people getting hurt by the banks - For example: * A woman owes $170,000 on her mortgage * She’s $40,000 in arrears * She has had legitimate medical expenses that have made her behind * She has no more forbearance * And she is at the end of the line * She asked Chris if he could help * The banks can’t help her + He is seeing more and more foreclosures in his area than he has ever seen before + There is also even a mailing list available that just came out called “Covid Distress” and they are experimenting with it + Probate is strong and has been for for a while - Someone is dying every 8 seconds and someone is born every 6 seconds - There will always be deals there - But the deals take more time and can be complicated + In his opinion, there seems to be a build up of foreclosures * The emergence of many new small businesses + Because of Covid, there has a been a big rise in entrepreneurship + People saying, “The heck with corporate America, I’m going to start my own!” + Chris cite’s Michael Dell saying that the number of new businesses doubled from last year and it’s expected to go up again + Chris Googled it and saw a projection of 72% of people starting their own businesses + This has attracted more people to Chris’ program + The problem is that many of these people are no longer bankable because they don’t have steady income - They will need at least a couple of years of seasoning in the eyes of the banks with their new business - These are excellent potential buyers of the homes they handle and they usually have the down payments required - That’s a positive trend - He’s had doctors, lawyers and nurses come to his community, and they have money to invest in properties themselves * But when they see that they can get big returns without having to invest much, they are more excited about that * If they are looking at starting their own business and are waiting for the seasoning period, they can make a lot of money while they are waiting

Three Pay Days * Chris teaches his students that are interested in his business model that they can look forward to 3 paydays + Cash now – down payment + Cash over time – monthly payments from the buyer + Cash long term – cash from the sale

Case Studies * Brian + Lives in Chicago + A 17-year corporate person + On planes every other week + Son is getting older – bummed out that he was leaving him + Nov 2019 signed up with Chris’ online course (under $1,000) + He sent Chris and team a video saying he would be good for their community + He went after the lease purchase deals (their easiest) at $10 a pop (for option deposit) - He did 8 deals at $10 each - He worked his butt off - With all 3 paydays, he made a little over $800,000 + Brian ended up leaving his job and going full-time with Chris’ program * Justim + In medical sales + Does multiple six-figures in income + He joined Chris’ special “Wicked Smart” associate community + He worked very hard (Chris emphasized that this is not a “get rich quick deal” + He set up systems, learned skillsets and developed the right mindset + It took Justin 8 or 9 months to get his first deal done, working part-time + He left his job in medical sales + His 3 day days are in excess of $100,000 + With his system now set up, he will see the deals flowing in + He now can mange his time, see his family more and enjoy the freedom – a whole different lifestyle

How Does it Work * Students have access to any resource they have as a “family company” + One is a service that provides daily feeds of: - Expired listings - For-Sale-By-Owner listings - For-Rent-By-Owner listings - You might have to shift around, depending on the what’s happening in a market (i.e. Covid) * Chris emphasizes to work markets within a 50 mile radius of your home * A student will make a call to an expired listing + The listing was at $715,000 and just wouldn’t sell + The seller owes $475,000 + You tell the seller how a lease purchase would work for his house + Then he is told: - The deed stays in your name + He is asked, how much did you hope to net? - He says $200,000 or a little less + He is told: - We are going to lock in the equity of $240,000 - That’s the difference between what you were trying to sell it for and the amount you owe - On or before 36 months, we’re going to pay off your loan - And we’re going to give you your $240,000 - If you need the money right now then you should sell and you’ll get $200K or less - If you have the time, you’ll get your $240,000 + The seller would net more with a lease purchase than he would with conventional selling + The student only spends $10 for the agreement to sell the sellers house + The student takes over the mortgage payment and pays it with the monthly payments from the new buyer + The buyer takes on the maintenance and repairs + The student picks a good buyer that just needs seasoning + The student gets from Chris’ organization: - They get leads - They get scripts that teach them how to talk to the sellers - They don’t have to make the mortgage payment until they find a buyer to cover all the costs + The buyer gets the following from Chris’ organization: - They go through 3rd party screening - They come out of the screening with a “mortgage ready” plan * It says “Hey, I spoke with the buyer. They will be mortgage ready, if they follow A,B,C,D (follow the plan), in ___ months” (ranges from 18-30 months) * Chris’ team makes sure they stick to the plan * Then, the buyer can purchase the home directly from the seller and Chris is in the middle

What Differentiates Chris and His Organization * They don’t leave the buyer on their own * They have systems in place that set up the buyer for success to REMAIN the owner of the home * Industry stats for other organizations that teach lease options: + With 80-95% of the other organizations out there, the buyer never gets to complete the process and own the home + Only 2-10% of his buyers don’t actually buy the home + Chris’ son Nick handles the buyer side of the organization - Nick works with a person, Michelle, who handles mortgages for his buyers * She understands the “Sandwich lease cash-out” that Chris does * She now has done over 100 transactions * Nick gets his buyers with Michelle 6-12 months before their mortgage timeline date and they usually close out early * He has a bunch of other “Michelles” in the markets they serve

• • The buyer’s responsibility - The buyer has to come up with a non-refundable down payment * That’s a buyer of any home would have to do * He asks for 10% + Sometimes is all upfront + Sometimes it’s in payments over time + 50% do either * This is usually one in the same of the down payment they would do when they get the conventional mortgage + Let’s say it’s a home for $500,000 and the buyer puts down $50,000 + When he goes to get a conventional loan, he tells the bank, he already paid 10% down ($50K) thru Chris’ organization. Then, Chris is responsible for paying the bank the $50K - The buyer may not go with a bank if the seller provides seller financing - The buyers are also told upfront: * We are not your landlord * You are the buyer * We’re going to treat you like a buyer * Your home will appreciate if the market is going up or go flat if there is no change or down if the market is going down * They won’t transfer title until you have your own mortgage * Everything else gets paid and taken care by you as you are the buyer * There are three options for buyers + Lease purchase + Seller financing + Sub 2

Free Stuff * He has a free Masters Class * A 55-minute video of Chris going into detail about how his systems work * To get this, go to: SmartRealEstateCoach.com/MastersClass * You will get loaded up with a lot of free stuff

How to Reach Chris * Website: SmartRealEstateCoach.com

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

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SHOW NOTES FOR EPISODE 600: THE IMPORTANCE OF YOUR REI TEAM Previous episodes of our 10 steps to Real Estate Investing Success series have thus far included:

1. 590: Is Real Estate Investing For You?
2. 592: What Type of Real Estate Investing is For You?
3. 594: Building a Winning REI Strategy!
4. 596: Knowing Your Numbers
5. 598: The Business of Real Estate Investing

The Importance of Your REI Team Real estate investing is not a solo sport. To be successful, it takes a unified, talented and committed team. In this episode, I will talk about the importance of putting together a strong and effective team and who those key members are that will make up your ideal real estate investing team.

To be a successful real estate investor, you will need a competent team to help you out. A team is critical to real estate investing success. Surrounding yourself with the right people can make all the difference to your success. Success in real estate comes from a team effort. It’s all about relationships, relationships, relationships.

And, if you are an out-of-state investor, you may have multiple teams. A team where you live and teams in each state you invest in.

An effective team of experts is not cheap and this is not a place where you want to count pennies. The right team members will cost but in the long run they will ultimately save you thousands upon thousands of dollars.

You can waste all kinds of valuable time trying to do things yourself. Do-it-Your-selfers can miss all kinds of details that an experienced expert would see in a minute, like critical clauses missing in contracts, obvious defects in construction and hundreds, if not thousands of other issues experts would point out upfront.

I’m going to share some of the key people and professionals you’ll need to help you with all the issues you’ll face while investing. There are several important things you need to be successful in real estate investing, one of which is a great team.

Partners Before we go into your team members, I thought I should address the idea of a partner or partners as, perhaps, your first real team member(s). There are multiple skills required to be a successful real estate investor but one person, more than likely, won’t have ALL of those skills. Sometimes it makes more sense to partner who do and who possess those complementary skills.

For example, as we discussed in our fourth 10 Steps to Real Estate Investing Success series episode called “Know Your Numbers,” numbers, detailed analysis, and underwriting are all critical to your real estate investing success. Are you a numbers person? Do you enjoy doing a detailed analysis on spreadsheets and generating numbers that will help you determine if you have a good deal or not. Maybe that’s not your gifting. Or, are you more comfortable doing presentations before groups of people, networking at events, or selling your project to bankers and potential investors? You may be saying I can do that but I don’t think I can do the other thing. And that’s where a partner comes in.

Some of the most successful businesses were started by partners. Names:

Names like:

• Henry Wells & William G. Fargo
• William Procter & James Gamble
• Orville & Wilbur Wright
• Bill Hewlett & Dave Packard
• Steve Jobs & Steve Wosniack
• Bill Gates & Paul Allen
• Larry Page & Sergey Brin
• Ben Cohen & Jerry Greenfield

These were folks who had complementary skills. They are the people that Gino Wickman refers to in his book Rocket Fuel that studied exceptional companies who have partners who fulfill two key roles: The Visionary and the Integrator. It’s a powerful combination with the right people!

Or sometimes, a real estate partnership may just be a simple has the “money guy” and the “worker bee guy or gal”. You may not have the money, but you have the time. Or, conversely, you have the money but don’t want to spend the time.

A business partner can be an invaluable team member. Partnerships are either destined for success or doomed for failure right from the start. But it’s well worth considering. Here are some good qualities to look for in a partner:

• Healthy debate: You should have room for debate before decisions are made. Someone to bat ideas back and forth with.
• Open-mindedness: You shouldn’t have to spend valuable time continually convincing your partner of your goals
• Commitment: You should be committed to each other and your goals
• Similar values: You and your partner should share the same values
• Accountability: You and your partner should push each other to achieve objectives and have mutual accountability

Outside of a potential partner, there are other key team members you should have. Here are some of the players who should be on the winning team:

Your Mentor A very successful entrepreneur needs a good mentor. A guide. By being closely trained under the watchful eye of one smarter and more experienced than us, we can only get smarter and do better. Finding a good mentor early on can establish a good solid foundation for success!

Mortgage Broker or Banker A mortgage broker can offer many options, but a banker can make the loan decision. They each have their advantages, and you could use both on your team. In either case, it’s important they understand what you want (fast closings, lower interest, corporate loans?, etc). You want someone who has the experience of working with other investors and who wants to see you succeed. They need to be creative and smart!

Accountant and/or Bookkeeper Preferably a CPA (Certified Public Accountant. Your numbers guy or gal should be well aware of the ins and outs of real estate. Preferably, someone who is an investor like you. Come tax time, this is the person who will help you through the write-offs! Keeping good records and proper books for real estate investments is getting more and more complicated with all the tax-law changes. Find someone who understands the law, and understands what you want.

Real Estate Attorney Find someone familiar with the laws and legal customs of your investment region(s), and that has experience with the type of deals you intend to do (If you are buying rentals, he or she should be familiar with doing evictions, for example). It is really important to have someone on the team who can go through contracts, knows about asset protection, understands business law and who knows the legalities of all your moves.

Good Real Estate Agents or Brokers A broker or agent with experience in the areas you invest in and that has access to off-market deals, the MLS (Multiple Listing Service) and other “insider property info,” can be a great help. If he or she is a seller’s agent, he or she can still ethically bring the best deals to you once you’re identified as a serious buyer.

Appraiser A good appraiser can give you an accurate valuation of a property, but they can also suggest ways in which you can most efficiently raise the value of a property. Find someone that will talk to you.

Inspector Some states make it too easy to become an inspector with little experience. You may want to find one that is or used to be a contractor or engineer, so he can find the problems AND give you some idea of the cost of repairs.

Insurance Agent Good ones will understand what you want, and find ways to save you money. Insure all your properties with one agent, and you’re likely to have discounts available, as well as better service. It is always better to have an insurance rep that is looking out for you when things hit the fan.

Escrow Officer or Title Rep. They’ll usually be with a closing company. They can also be an attorney. Find someone that’s efficient, and can explain things clearly to both sides. If he or she is confused by a slightly creative contract, they should be educated easily or be replaced. Having a good one on the team helps to close deals that much quicker. You always want people looking out for YOUR interests.

Property Manager Be certain that the property management company you hire has experience, is responsive, has a good reputation and will have time when you call. Good property managers can tell you what you should get for rent in a given area BEFORE you buy. If you are an out-of-state investor, this person can make or break your business.

Other Team Members Contractor The good contractor seems like the hardest one to find, but can often make or break your profit margin. You want someone who gets things done on time and under budget.

Great Handyman Someone to take care of the little things that come up on a daily basis.

Cleaning Person or Crew When you have a trusted person or crew ready, it means a fast turn-around when you buy a rental or rehab project.

Supportive Family & Friends Having the support and backing of loved ones is important in any endeavor.

Your Passive Investment Team A final note about non-team investors…

You may be thinking, but I don’t want to be an active investor. I would prefer to be a passive investor and invest in other people’s projects. And that’s fine. However, if you are putting significant funds investing in syndications, for example, aren’t you going to be concerned that your investment will not only come back to you but will yield a good return as well.

The way to help achieve that is to surround you with other investors who have been investing for a long period of time, like the same projects as you and knows the good and not so go players. Where do you find these people? Places like BiggerPockets, referrals from other reliable sources (your CPA, attorney, realtor/broker) or through investment clubs you can join and become active in.

In Conclusion If you’re serious about successfully investing in real estate, start building that team right away. Investing in real estate is a whole lot less stressful and more profitable with a good real estate investment team. Assembling a winning powerhouse team will not happen overnight, but once together, they will give you the backing, support and help you’ll need to make your real estate investing dreams come true.

References:

• Building a Powerhouse Real Estate Investing Team
• 328: Assembling a Powerhouse Real Estate Investing Team
• 020: Building a Great Out-of-State Team

Good Books:

• Traction by Gino Wickman
• Rocket Fuel by Gino Wickman and Mark C. Winters

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

Check out our other podcasts at olddawgsreinetwork.com.

Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

Additional Episode Sponsor: Meno Studio – menostudio777@gmail.com

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By Evelyn Long

After years of dedicating your time to a career or side hustle in real estate, many people find that retirement gives them a new sense of freedom – including where they get to live. As a real estate investor, you have the advantage of pre-existing knowledge about real estate markets, taxes and long-term savings.

That’s why thinking through your future retirement home now is an excellent idea. Obviously, your priorities will be personal considerations like distance from family and weather preferences. However, you should also consider important aspects of retirement living in different states — like the housing market, cost of living, taxes, and health care benefits before putting down roots.

Whether it’s moving near the coast, off the grid, or just to a town with a great golf course, the possibilities to begin a new chapter someplace unfamiliar are endless. Here are six of the best states for investors to retire in. And, for those who are still active investors, these are also some of the top states to invest in real estate as well.

1. North Carolina North Carolina has a lot to offer retirees, from its southern hospitality to its pristine coastlines and spectacular mountain getaways. It also boasts a moderate climate with four distinct seasons for those who still want to experience fall and winter weather.

Plus, you can choose from a variety of living settings, whether you like the charm of Asheville, the bigger city bustle of Charlotte or Raleigh or small-town country calm.

However, North Carolina delivers plenty of benefits from a financial perspective as well. For example, North Carolina’s overall cost of living is almost 10 points below the national average, including housing, utilities, groceries, and transportation costs.

Seniors may also appreciate the lack of taxes on Social Security income and state estate tax, as well as flat-rate income taxes and lower corporate income taxes. Because of this, North Carolina is considered an ideal state for seniors to find work or start their own businesses. If you’re not willing to give up your real estate investment career, you might find this an attractive place to be.

2. Florida Of course this sunny state was bound to make the list. Florida has long been the quintessential state to retire in, providing year-round vacation weather and numerous active adult communities that feel more like summer camp.

There are several reasons why retirees flock to Florida, including the tax-friendly benefits, easy access to international airports, theme parks, and plenty of things to do for those who like to stay busy.

Florida is home to Busch Gardens, Disney World and Everglades National Park, among numerous other natural and manmade attractions. Not to mention, there are 825 miles of sandy beaches on both coasts for you to explore and relax.

However, perhaps most appealing is senior tax breaks on state income, retirement income, and Social Security benefits. Also, the large population of seniors living in Florida means the state boasts some of the best geriatric medical specialists in the nation.

3. Georgia Georgia is a great option for investors to invest in retirement property, especially if they aren’t as keen on going all the way south to Florida. Georgia is known for being a landlord-friendly state and it also boasts fast growth for those looking to maintain passive income even in retirement.

There are a lot of advantages to investing and retiring in Georgia. For one thing, the median property value is 16 points below the national average while the cost of living is 6.6% below, including grocery, utilities, and health care costs.

Additionally, Georgia’s future job growth is expected to increase by 43.93%, and large companies, such as Coca-Cola, Delta Airlines, Home Depot, and Cox Enterprises, are headquartered there. With more families and individuals moving to Georgia for work, real estate values and housing demands should grow exponentially.

4. Tennessee If you’re looking for a budget- and tax-friendly place to live with rolling landscapes and vibrant cities, Tennessee may be the perfect state to consider post-retirement.

The cost of living is well below the national average at 87.6% for grocery, transportation, housing, and utilities, while health care averages align with median prices across the country.

According to the U.S. Census Bureau, 16.7% of the population is 65 and over, meaning retired residents in Tennessee can find plenty of people close in age to become friends with.

5. Alabama If you like what Florida and Georgia have to offer, but they’re just not on your radar, maybe you’ll want to consider investing in Alabama instead.

Alabama is just as tax-friendly as its neighboring states, and the cost of living is even lower at 17.7% below average. Like other southern states, Alabama doesn’t tax Social Security and has some of the lowest property taxes in the United States.

Otherwise, new residents will love exploring Alabama’s many small-town gems, charming historic homes, landmarks, and wildlife preserves.

6. Idaho Although you may not have considered it before, Idaho is an up-and-coming state to invest in for your retirement. Nature enthusiasts will love its northwestern backdrop of protected wilderness, untouched forests, mountain ranges, and flowing rivers.

Idaho also has a high median property value and appreciation, an excellent incentive for property investors. In the past year, job growth has increased 2.8% throughout the state, helping to boost the real estate market for buyers and renters.

Retirees are bound to appreciate the low crime rates, as well. The state’s violent crime and property crime rates are much lower than the country’s average by 7.5% and 9.4%, respectively.

The Most Retirement-Friendly States When choosing the right place to invest in for your retirement, you should always consider where you can have everything you want. Lower cost of living? Warmer weather? Outdoor recreation? A fun city to wander around? Access to airports for frequent travel?

Retirement should be a time for you to enjoy things you couldn’t participate in before and is ultimately an investment in your happiness and well-being.

Author

Evelyn Long is the editor-in-chief of Renovated. Her real estate work has been published by the National Association of REALTORS®, Rental Housing Journal, and other online publications.

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by Daniela Gonzalez

Property value has many moving parts, especially for something that itself doesn’t, well, move. The factors involved in determining property and home value are sliding scales of perception, priority, and personality. What is important to some may be a deterrent to others, so coming to a consensus on the value of a property has numerous considerations.

How Is Home Value Determined?

Size This one is pretty straightforward – larger homes are more expensive because building bigger homes is more expensive. Depending on where you live, there is a varying cost per square foot to build a home (this has huge variations across the country based on many factors like availability of building material, contractors, remoteness, terrain, etc.).

Age The age of your home can contribute both positively and negatively to your home value. We tend to place a high value on historical or character homes – classic homes from the early 1900s that have been well maintained and upgraded. Conversely, homes from the mid-1900s forward that have not been updated are not seen as having high value. If your house would not fall into the historical or character home category, renovations and updating are necessary to maintain home value.

Location Some location elements are primarily about personal priorities—some people prefer being closer to amenities, downtown cores, schools, nightlife, wilderness, hiking and biking areas, etc.

Other locational elements are less subjective. For example, we can confidently say that most of us would prefer not to live next to a dump or landfill—or a meat processing facility, power generation plant, or fire station. A property nearby could have a beautiful home and exterior landscaping, but we would likely still value it less than the same home in a more picturesque location.

Features The features of your home and property contribute hugely to its market value. What the term ‘features’ encompasses is vast and also highly personal. Here are some features that contribute to the value of your home and property:

• Home gym (including flooring, mirrors, etc.)
• Home theatre room
• Feature fireplace
• Indoor or outdoor water features
• Oversize windows
• Smart home features
• Finished/heated garage

Safety Neighborhood safety is a significant factor in the value of your property. Not only is it undesirable to consider living in an area with a higher crime rate, but it will likely cost a potential buyer more in the long run too. Home insurance companies factor in the crime rate in your area and the likelihood that you’ll make a claim due to a burglary or property damage and will give you a higher rate if you live in a high crime area.

Neighborhood You know the ones, the good neighborhoods where everyone wants to live. It might not be because the houses are beautiful and gigantic; maybe it just has a good vibe or many great locally-owned restaurants. Whatever the reason, some neighborhoods are more desirable than others, and just having your home located there can positively impact your property value.

Tree Value Tree value can reference both the trees on your property specifically, as well as the trees on your street in general. Having old and well-cared for trees provides a beautiful natural element to your property that people are drawn to, enough so that it has a noticeable effect on your property values.

School District If you have children going to a public school, this is probably something that you’re already keenly aware of. It’s also an excellent example of how priorities are on a sliding scale regarding property value. If you don’t have children, or they attend or will attend a private school, then you’re much less likely to be willing to pay more to be in a desirable school district.

What can decrease my home’s value?

Crime Rate Many potential buyers are savvy about this these days, and they will check on the crime rates in neighborhoods they’re interested in purchasing in. So not only are those baddies sneaking around and damaging property or stealing bad for you, they’re bad for the overall value of your home now and into the future.

Neighborhood Gentrification is a tricky thing when it comes to property value. It relies on an overall increase in property values throughout a neighborhood to bolster the value of individual properties.

Suppose you renovate a home in a less-desirable area with the idea that the neighborhood itself is becoming more gentrified, and that doesn’t happen as quickly as you were hoping (or at all). In that case, you have a property that’s valued is negatively impacted by the general area, not by the characteristics of the home or property itself.

Location There’s a good reason for the old “location, location, location” adage that you’ve likely heard many times before—it’s still relevant! So many factors go into what a desirable location is or isn’t, and they can be tricky to navigate. Here are a few of the important ones to consider:

• Cemeteries – generally speaking, very close proximity to a cemetery will work against your home value.
• Highways – noise from roads is a detractor; while easy access is suitable for property value, it depends on your location.
• Hiking trails – if you’re a hiker, this could be a suitable property feature; however, many people do not prefer to have a reason for multiple strangers to be close to their home year-round.
• Construction – Construction brings noise, people, dust, and traffic. None of these are suitable for your property value.
• Property history – This can be anything from being in a floodplain to having a violent crime committed on your property at some point. Some states have mandatory disclosure laws about certain things, while others do not, so the impact on your property value will depend on the history and where you live.

Tips For Avoiding a Low-Value Home Be informed – Know what’s happening in your neighborhood and city. It might not be the most scintillating activity, but keeping an eye on your city or town council’s activity and any proposed infrastructure changes or construction permits can be a great way to help you stay ahead of the game.

Economic factors – The state of your local and national economy are one of the biggest drivers in real estate pricing. You could have an adorable home with perfect curb appeal, but your property will be valued less if you try to sell in a down economy.

Building regulations – This is a significant factor if you’ve made any additions to your home. Most municipalities require permits for building additions, and if they are not correctly acquired, it is likely to be detrimental to your property value on resale.

Hire a realtor – A realtor can focus their trained eye on areas that you can maintain or improve the home value that you might not have thought of. We get used to our homes and don’t see them with the critical eye that a potential buyer might, so having a realtor in your corner can help you keep ahead.

How To Increase Your Home Value

Remodel – It’s a big undertaking, but if you want to maintain your home value and stay competitive in the resale market, remodeling is the best way to keep your home current. That’s not to say that you have to gut your home down to the studs every ten years, but making comparatively small upgrades like creating a more open concept floor plan or putting in more oversized windows (even just repainting) will help retain property value.

Add features – Maybe you finish the basement or take that spare bedroom and create a home gym; anything you can add to your home that a future buyer would find attractive will work in your favor. This is also a great way to engage a real estate agent—they know what people are looking for in a home and can give you great advice on what would be an attractive feature to add to your home.

Good maintenance – Little things add up, and they can quickly amount to enough things that, together, decrease your home value— if you need to have a portion of your fence replaced, no problem. Same with new gutters, some new landscaping, or exterior paint. Taken individually, these things are not likely to decrease your property value much. But all together, they definitely will. Keeping those pesky little tasks in check is one of the best ways to make sure that you don’t have a mountain of upkeep to do when you go to sell!

Now that you have a clear picture of the potential pitfalls that could decrease your property value and how to avoid them, you’re all set to make sure that you get the most out of your property when you choose to sell.

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SHOW NOTES FOR EPISODE 595: TRANSITIONING FROM ACTIVE TO PASSIVE REAL ESTATE INVESTING There comes a time in many real estate investors careers where they no longer want to be active investors. In this episode, personal finance expert, author and real estate investor Rachel Richards shares how and why she quickly built a significant real estate portfolio, retired at age 27 and is now transitioning from an active to passive investor.

What You Will Learn * Why Rachel is transitioning from Active to Passive investing * How Rachel grew her portfolio so fast * An effective strategy to get much higher cash flow from rental properties * Why Rachel and her husband self-managed all their properties * What the two stages of syndication due diligence are * Why weekly rentals work or don’t work * When interviewing a syndicator, what questions you should ask * What red flags you might receive while doing your due diligence on a potential syndicator’s deal * 11 questions to ask every potential syndication sponsor, and 9 more even tougher questions just for the operator him or herself

About Our Guest Rachel Richards At the age of 27, Rachel Richards quit her job and retired. She is now living off $20,000 per month in passive income. Rachel is the bestselling author of “Money Honey” and “Passive Income, Aggressive Retirement.” She built a real estate portfolio of 38 rental units by the age of 26. She is a former financial advisor, and has been featured in CNN and Business Insider. She makes the topic of money management fun, entertaining, and simple for her 250,000+ millennial followers. Rachel helps women feel excited, capable, and confident about their financial future.

Rachel has a Bachelor of Science in Financial Economics from Centre College. She has held roles as a financial advisor, a real estate analyst, and a senior finance analyst.

Rachel is based in Colorado with her husband and dog Chloe.

Old Dawg Podcast shows where Rachel has appeared include:

• 433: Secrets of a 27 Year Old Retiree
• 571: The Million Dollar Question

Here’s an article Rachel contributed to the Old Dawg’s blog:

• These 4 Misconceptions About Wealth Will Change Everything

More About Rachel * Rachel and her husband built a rental portfolio consisting of 6 buildings/38 doors/units * She clarifies that: + She’s not a trust fund baby + She never made 6 figures from a job or career + Listen to episode #433 to find out how she did it * In 2021, they decided to sell off a lot of their properties + They sold 3 of their largest buildings (in Louisville, Kentucky) – comprised of 34 units/doors - One was a duplex, one a triplex and one a quad - But, because they rented by the room and there were many rooms in each, that had many more tenants - They were large “Boarding House” type properties – “rent-by-the-room” * Flat rate paid WEEKLY + Typical renter stayed for 6 months + Some stayed for much longer + Minimum lease agreement for 12 weeks * Rent-by-the-room * Affordable housing * Tenants share common areas like kitchens and bathrooms * Fully-furnished * Utilities paid * Free Wi-Fi - They self-managed and they were a lot of work - At the time, they both had full-time jobs and Rachel was writing her books in the evening - For a while, they both were working 80-hour weeks “to make their dreams come true” * They decided to take a lot of that money from the sale of the properties and transition it into real estate syndications

Why the Transition? * Owning real estate (rental properties) is not passive unless you have a property manager * Chances are, most people don’t want to quit their full-time jobs to become a full-time landlord * That’s why most investors hire property managers to deal with the day-to-day duties of managing the rental properties * But, even with a property manager, you still have to “manage the manager” + It’s not fully 100% passive + However, it is more passive than a 9 to 5 job * There were a three reasons why they decided to sell + The market was great for sellers, getting top dollar for their properties - She sold them all privately - For Sale By Owner (so didn’t have to pay commissions) - She’s also a real estate agent, and even though she didn’t take the commission, she at least didn’t have to pay someone else’s commission * She felt comfortable representing herself * She also had an attorney draft up the contract + For piece of mind - She was always stressed out about these houses: * Lots of tenants in such close quarters * A tenant caused a kitchen fire and, even though they had asset protections in place (LLCs, umbrella policy, etc.), it made her very concerned about the liability + She views the real estate investing journey as a “time vs. money” trade-off - When they started investing, they were broke – they didn’t have a lot of money - They were willing to do all they could, by investing their time and “sweat equity”, to make a lot of money early on - They knew it would pay off big later on - Today, as they have made a lot of money, they prioritize their time more and more - They now want “true” passive income - Therefore, they are selling and transferring the cash into real estate syndications and other investments that are even more passive * The properties served them well while they were hustling and building their “empire” but today, they no longer align with their goals anymore because they prioritize and value their time so much more now * They realize that, by investing in syndications, they will make less money on the return but it’s something that’s truly passive at this point * They sold the three properties in 2021 * They have three other properties but they are going to hold on to those + 2 single family + 1 duplex * They now live in Denver (they moved there from Kentucky) + They want to invest in Colorado but only as a silent partner or a long-term rental (no more boarding houses or weekly rentals)

How A Syndication Works * How the syndication process happens + An investor finds an apartment complex, for example, that costs $10,000,000 + They form a syndication to raise funds from private investors + The investors are not just lending money to the buyers – they become “equity owners” - This means that the investors are entitled to a share of the profits - They invest as “Limited Partners” or LPs * They can earn monthly or quarterly dividends (part of the cash flow) * Plus, they also earn a part of the profits if the property is re-financed or sold - The investors also get the same tax benefits that any buyer would have as owner of any rental property * You can deduct depreciation * You get a K-1 * This is the most passive way Rachel has ever found to own real estate * All you have to do is send the money in + You don’t have to manage tenants, oversee renovations, etc. because the syndication team (General Partners) are managing all that * It’s true “mailbox money” * Investor Qualifications + They couldn’t have done this early on in their real estate investing careers because they didn’t have any money to invest - Investment amounts, generally start at $25,000 but many are $50,000-100,000 + For most syndications, you also need to be an Accredited Investor - An accredited investor is an individual or a business entity that is allowed to trade securities that may not be registered with financial authorities. - The SEC defines an accredited investor as either: an individual with gross income exceeding $200,000 in each of the two most recent years or joint income with a spouse or partner exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year. - Or you could qualify if you are a person whose individual net worth, or joint net worth with that person’s spouse or partner, exceeds $1,000,000, excluding the person’s primary residence. + EDITOR’S NOTE: If you don’t qualify as an “Accredited Investor,” you can still invest in syndications as a “Sophisticated Investor. A Sophisticated Investor is an investor that qualifies under the Securities Act of 1933 and related Securities and Exchange Commission regulations and is defined as one having sufficient knowledge and expertise in financial matters to weigh the value and risks of an investment. The qualifications are more open because of that definition and not as stringent as for an Accredited Investor. Also, you can still invest in syndications without being a Accredited nor Sophisticated investor through crowd funding for as little as $10 per investment. * Rachel’s Syndication Portfolio + They have invested in 8 syndications so far + She currently invests in multifamily, self-storage and mobile home parks - She thinks mobile home parks and self-storage are especially great areas to invest right now * Because there is a shortage of both right now, the demand is huge - She understands multifamily best because that is where she has been investing and she knows what looks good and what doesn’t look good. Also calculating returns comes easier with multifamily + She wants to invest in at least 5 more in 2022 * Projected returns + Syndicators provide you with a “deck” with pictures, numbers, tables, pro forma projections + The deck can say all kinds of projections - That’s why you have to do your own due diligence to double-check the numbers and look at it from your own perspective - A lot of the decks project 13-17% IRR (Internal Rate of Return – that number includes cash flow and the profit on sale) for their apartment syndications - Some will state a “preferred return,” of say 8 or 10% that you should earn annually * Or they may show how it grows over the years, maybe starting at 3% and growing to 1o% in the later years + With some syndications, you may not receive your first check until 6-12 months after you make the investment * Her Criteria + She currently invests in multifamily, self-storage and mobile home parks - She thinks mobile home parks and self-storage are especially great areas to invest right now * Because there is a shortage of both right now, the demand is huge - She understands multifamily best because that is where she has been investing and she knows what looks good and what doesn’t look good. Also calculating returns comes easier with multifamily - An exception was a laundromat, which she says has a great return – 13% – (their first syndication) - She also invested in a triple-net-lease commercial industrial syndication * She was not 100% comfortable with it because it is an area she does have direct experience with, even though she spent a lot of time on its due diligence * She’s making good money on it but doesn’t recommend others to invest in syndications they don’t fully understand + Most syndications may have a hold period of 3, 5, 7 or 10 years so you have to wait to find out what your true IRR really is - She prefers a shorter time horizon because she wants to get her initial investment back sooner because that lowers their risk - If they’re not going to get their capital back until 10 years out, that’s too high a risk for them - They look for a re-fi event or sale in 3 to 5 years - It’s currently hard to find a 3 year hold but easier to find + Rachel says she is earning approximately $1,400 per month in distributions for the 7 syndications she is currently investing in + She has not invested over $50K in one syndication and wouldn’t feel comfortable investing $100K in one deal - It’s about diversification – She would rather invest $25K in four different deals than $100K in just one deal - There is real risk here and that’s important to remember * If one deal goes poorly, she would only lose $25K instead of $100K in one deal * She has even asked syndicators who have $50-100K investment minimums if they have + She won’t invest in a syndication where there is no distribution or cash flow income - That’s why she does invest in new construction or ground-up builds because you don’t get your money back until it sells + 506 (b) vs. 506 (c) - 506 (b) allows Sophisticated Investors with Accredited Investors and cannot be advertised * With Rule 506(b), the issuer must be able to prove an existing relationship with an investor before the deal is presented to them - 506 (c) is only Accredited investors and can be advertised

Finding Good Syndication Partners * Trying to find good syndication partners has been quite a learning process * The syndicator/sponsor is key * You need someone who has: + Knowledge + Experience – They should have done and exited several syndications successfully + and they clearly know what they are doing * You need to do more due diligence on the syndicator than you do the project or property * She’s heard of too many people who have wired money to a so-called “syndicator” only to run off with all the investors’ money * It’s easy to get scammed * Make sure you are personally introduced to the syndicator by someone you know well, someone who has invested with the syndicator and has had a good experience * Rachel said she would be happy to make introductions to syndicators she knows and has invested with * Don’t just invest with someone you meet on Facebook or LinkedIn

Getting Educated on Syndications * Before Rachel started investing in syndications, she read a book called The Hands-Off Investor by Brian Burke, published by Bigger Pockets + She loved the book + It’s very technical but if you read it, she says you will become an expert on investing in real estate syndications * She learned that their are important stages of due diligence + Meeting With the Syndicator - It starts with connecting with a syndicator – they should want to meet with you or have a call with you * If they just want to send you deals without meeting you first, she feels that’s a red flag - With Rule 506(b) syndications, the issuer must be able to prove an existing relationship with an investor before the deal is presented to them - They will ask you questions - You should have a list of questions for them too. Questions you might ask include: * What kind of syndications you have done? * How much money have you raised in the past? * How many deals have you exited? * How many of your exited deals underperformed compared to pro forma projections? + Why did they underperform? + What did you learn? * Have you investors ever lost money? * Can you send me financials for any of your current deals? * How has Covid affected any of your current investments? + How did you manage through Covid? * Who manages investor relations on your team? - After they feel comfortable with you, they put you on their deal flow mailing list * They will email you potential syndication deals when they come up + What Rachel does next - When she sees a deal she likes, she will analyze it, take notes and ask questions - Before investing, she’ll contact the syndicator with a list of 20 questions about the specific syndication opportunity - If the syndicator is not interested in educating you and answering your questions, it’s another red flag * They should be giving you all the time you want to get your questions answered * You are about to send the sponsor $25-50K or more + That’s a lot of money + You’re placing a lot of trust in them + They should not make you feel like they are impatient or that they don’t have time for you - She will also ask a ton of (EVEN TOUGHER) questions * What do you see as the greatest risk of this investment? * What happens if you don’t raise the funds you need for this investment? * Have you walked every single unit in this project? * What is the break-even occupancy? * When does this close? * When will you send out the first distributions? * How often will you send out your distributions? * How much of your own money are you investing? * Have you done background checks for everyone on your team and can you send them to me? + Rachel spends more time doing the due diligence on the operator/sponsor/syndicator than on the project itself - If she spends a total of 5 hours on due diligence for a syndication deal, she recommends spending 3-or 4 hours on the syndicator and 1 to 2 hours on the deal

Thoughts on Syndicator Funds * More and more syndicators prefer to raise money for their projects through specific funds + Rachel has looked into various funds and have considered them a lot + The struggle she has with funds is that they are not as clear-cut as investing in a specific syndication project - She likes when she can look at a syndication, understand the project (for example: an apartment building), the markets, the rents, the strategy and the specific building - She’s very logical and mathematical person and her investments have to make sense to her - When she sees a fund * There’s not always a clear enter and exit date * It’s often on-going * They might buy assets throughout, sell * There are different periods where they are raising money * There are different periods when you can get out of the fund - Funds are harder for her to analyze * Could be 10 different assets * There are always assets they are buying and assets they are selling * Everything’s blended - That’s why it’s been harder for her to take the leap into funds + However, self-storage investment opportunities are often in funds - If she wants to get into self-storage, she may have to invest in a fund

Advice for Old Dawg’s Looking at Syndication Passive Investing * She knows it’s easy to feel overwhelmed with syndication investing because there’s a lot to learn * But so can getting into your any first real estate investment * She recommends: + That you start with networking - Reach out to real estate investors that you know or people you may know who are syndicator investors or know syndicators * Start talking with syndicators * You’ll start to know the questions to ask, the language/terminology + She felt a little silly starting out because she didn’t know the “language/terms” and things to say + But the more she started talking to people and asking them questions, the more comfortable she felt and the more she learned + Read the book: The Hands-Off Investor by Brian Burke + Don’t fell pressured to invest in your first syndication – syndications will always be around + Rachel will help you with introductions to syndicators if you need help (see her contact info below). Bill will too * Take your time and get educated before you invest * Also, don’t get hung up on a syndication’s projections or “Pro Formas” + She personally would rather invest with a syndicator who projects lower returns + She prefers syndicators who under-projects and over-performs

Syndications and Inflation * Rachel feels syndications are a great place to invest when inflation is high * Inflation was at 7% * The best place to invest during inflationary times is in real assets — like land and real estate * Housing is a supply and demand issue – not a bubble * Bubbles are driven by fear and a lot of nothing * The population is continuing to grow and has been outpacing available housing + It’s an issue of supply and demand * When she invests in real estate, she invests for cash flow, not appreciation + That’s the smarter, more conservative way + If you invest in a cash flowing asset, it’s not going to matter if the market goes down + A cash flowing asset will make it through a down market + If you invest in appreciation, you’ll lose your money in a down market

Where to get Rachel’s Books * Money Honey by Rachel Richards * Passive Income Aggressive Retirement by Rachel Richards

Get a Free Passive Income Starter Kit * Here: MoneyHoneyRachel.com/PassiveIncome

How to Reach Rachel * Email: Rachel@MoneyHoneyRachel.com

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

Check out our other podcasts at olddawgsreinetwork.com.

Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

Additional Episode Sponsor: Meno Studio – menostudio777@gmail.com

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SHOW NOTES FOR EPISODE 594: BUILDING A WINNING REI STRATEGY! Before you can become successful at real estate investing, you must build a solid foundation from which to build your business. In this episode, Bill shares the five phases necessary to building a strong, sustaining real estate investing success strategy

Introduction This is the third episode of our 10-episode series called 10 Steps to Real Estate Investing Success. To recap or first two episodes…

590: Is Real Estate Investing For You?

• We’ve talked about the pros and cons of REI
• We talked about passive vs. active REI
• How much time is involved
• Expected Returns-on-Investment
• We looked at whether real estate investing is really for you or not

592: What Type of Real Estate Investing is For You?

• We showed you a wide variety of different types of real estate investing
  • Wholesaling
  • Fix ‘n flip
  • Buy ‘n Hold
  • Passive strategies, like
    • REITS
    • Private money lending
    • Syndication investing
  • And much more
• We also gave an overview of what each strategy involves

Building a Winning REI Strategy! So, today were going to help you put it all together

• Hopefully, you’ve decided REI is for you
• And what type of investing strategy you want to employ
• Now, we are going to talk about setting the foundation for success
• This is where “the rubber meets the road”

Here is where you’ll need to build a solid foundation for success

Five Steps to Building a Strong REI Foundation There a five main steps to establishing a strong foundation for success:

1. Know your Why
2. Do Your Research
3. Find a Mentor
4. Establish your mission and vision

5. Define your goals and write a strategic action plan

6. Know Your Why

7. This is a critical step
8. Because if you don’t know why you are doing it, there won’t be any reason to stick with it. It will be just too easy to quit
9. Your “Why” is what you will always go back to when things get tough
10. It will motivate you to stay committed and stay “on course”
11. Listen to episode #122 on 122: The Importance of Knowing Your Why

12. And episode #508 on 508: Remembering Your Why

13. Do Your Research

14. Now, here is where you’re going to go deep! You really need to dig very deep here
15. Collect as much information as you can about…
    • The strategies involved in your type of investing
    • How much time will be involved?
    • How much time will it take to achieve my goals?
    • How much will it cost?
    • How do I gauge my success?
16. This is where you want to fully understand what you are going to do and what it will take – timewise, cashwise, etc.
17. How do you conduct this research
    • Meet with people who have succeeded at what you want to do
      • Have a carefully compiled list of questions
      • Pick their brains
    • Read books, articles
    • Watch YouTube videos
    • Attend webinars, online courses and boot camps
    • Listen to podcasts
18. Write down/compile everything you have learned to reference later

19. Links:

    • 006: How to Get Started in Real Estate Investing
    • 174: How to Get a Real Estate Investing Education for Free
    • 095: How to Find Hot Emerging Markets for the Best Deals
    • 316: How to Find Hot New Markets
    • 212: How to Research Property Crime Statistics

20. Find a Mentor

21. This next step isn’t always easy but it is critical if you want to reduce your risk and make less mistakes
22. Finding a mentor or coach that can help direct you, review your plans and strategies is invaluable
23. A good mentor who has years of experience doing what you want to do will save you countless time and money
24. A mentor should be experienced and willing to work with you
25. Some mentors are free. Some are not. You can find good mentors from both categories.
    • Yes, there are some from both categories who may not help at all.
    • You need to check your mentor out well
26. Finding a good mentor takes some research
27. I’ve attached inks that will help you with this

28. Links:

    • 069: Finding a Good Mentor
    • 080: Should You Pay For a Mentor?
    • 363: Attracting Mentors & Raising Capital from High Net Worth Investors

29. Develop a Mission and Vision for your Real Estate Company

30. Think of your real estate investing as a business – because that is what it is!
31. A Mission Statement defines the company’s business, its objectives and its approach to reach those objectives.
32. Mission statement questions look like:
    • What do we do?
    • Whom do we serve?
    • How do we serve them?
33. A Vision Statement describes the desired future position of the company. Elements of Mission and Vision Statements are often combined to provide a statement of the company’s purposes, goals and values.
34. Vision statement questions look like:
    • What are our hopes and dreams?
    • What problem are we solving for the greater good?
    • Who and what are we inspiring to change?

SAMPLE MISSION AND VISION STATEMENTS * Company: Tesla * Mission: To accelerate the world’s transition to sustainable energy. * Vision: To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles. * Why it works: What better word than “accelerate” in a mission to serve as the driving force behind what Tesla does. While boldly stating “best in the century” reflects loftier dreams in the vision.

___________________________________

• Company: AirBnB
• Mission: Belong anywhere.
• Vision: Tapping into the universal human yearning to belong—the desire to feel welcomed, respected, and appreciated for who you are, no matter where you might be.
• Why it works: In just two words, the Airbnb mission says “we help you feel at home.” They explore a deeper sense of belonging in the vision, tapping into the universal human desire their company aims for.

___________________________ Sample Real Estate Company Mission and Vision * Company: South Bay Properties Group LLC * Mission: Building community in a place you love to call home * Vision: Providing quality, affordable workforce housing for busy working people where they can enjoy, relax and be recharged. * Why it works: It’s more than just a roof over one’s head. It’s affordable multifamily housing in an environment that makes people want to stay home, with amenities and services usually found in upper scale housing.

Links:

• 570: Creating Your 2022 Strategic Real Estate Investing Plan
• 574: Setting Your 2022 Strategic Real Estate Investing Goals
• 368: Let’s Get Real About Goals

• 533: Building a Successful Real Estate Investing Business

• Define Your Goals and Write a Strategic Action Plan

• From your Mission and Vision, you can start to develop a Strategic Real Estate Investing Plan
• This is where you will describe your Goals and how you hope to achieve those goals
• Next, you want to set goals for this year and the next 5 and 10 years
• Since this part is a bit more involved, I will include links to show notes to better explain how specifically to develop your plan

Links:

• 266: Developing a Strategic Plan to Land the Best Properties in 2019
• 570: Creating Your 2022 Strategic Real Estate Investing Plan
• 574: Setting Your 2022 Strategic Real Estate Investing Goals
• 010: Setting Your Real Estate Investing Goals
• How to Set and Achieve Your Real Estate Goals

With a well-developed strategic plan, you can begin implementing your action plan. With each step, you document your results, how the plans are proceed and record the results. As you track your results, you will see how your strategies are succeeding. Where they lack, you re-engineer and try again, where they succeed or surpass expectations, you increase those strategies.

What happens is that your Plan becomes a living document that continually improves with time the moves you closer and closer to your goals.

This is a document your share with your team members and strategic partners. You also use it to develop a more business plan should you be seeking funding from a financial institution.

In Conclusion “A goal without a plan is just a wish.” So is a real estate investor’s hopes of being successful without a plan. A well-developed strategic plan will yield significant success.

Take the time to go over this podcast and check out the links provided.

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

Check out our other podcasts at olddawgsreinetwork.com.

Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

Additional Episode Sponsor: Meno Studio – menostudio777@gmail.com

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Real estate investing tips tend to be a bit vague, like “invest in the right location,” or “make sure the numbers work.” Actually, tips like these are important principles to remember. However, since they have been well represented in other articles, I want to share a few more specific tips with you.

1. Listen to the Market The cabinet guy looked to me for a decision. I realized that I knew nothing at all about which cabinets people like, so I asked him which ones others were choosing, and he pointed to one that three quarters of his last forty customers had chosen. That’s the one I want, I told him. Why argue with the market you are trying to sell to?

2. Do Your Own Research The real estate agent might show you only the comparable sales that make the property look more valuable. Do your own research. Some counties have made it easy now, with sales prices online. You can also search any number of sites with MLS listings, just to get an idea about the asking prices of other nearby properties.

3. Partner Carefully When you do a deal with partners, be the money or the management, but not both. Group decisions tend not to work well in real estate, and will cause you much stress. Once you decide on and agree to a plan, step back if you are investing the capital, and let your partner do his thing. Of course, step up and take control if you are managing the project.

4. Negotiate Openly Just ask a seller outright, “What do you want to get out of this?” It is rare that someone is offended by this simple question, and it saves you from wasting valuable time talking about things that don’t interest him or her. Once you get a clear answer, you can decide if you can give them what they want, and still get what you need.

5. Invest Safely Investing isn’t gambling. There is always risk, but the difference is that the odds are in your favor. If not, you are gambling. This why you shouldn’t invest based on continued price increases. There is no guarantee that prices will continue up at any particular rate. Do deals that work even if prices go nowhere, and if values go up, you’re that much better off.

6. Run the Numbers It is about the numbers, and if it is income property, it’s about one number in particular: cash flow. Whatever the local formulas are, whether gross rent multipliers or capitalization rates or whatever, just be sure that after every last expense you’ll have cash flow from the very first month.

Rules, formulas and real estate tips are really just guidelines. Even the rule above about cash flow can be broken if you know that rents can be raised soon, for example. You have to use common sense and learn from experience, and you can’t replace good analysis with rules, formulas and real estate tips.

Bill Manassero is the founder/top dog at the “Old Dawg’s REI Network,” a blog, newsletter and podcast for seniors and retirees that teaches the art of real estate investing.

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SHOW NOTES FOR EPISODE 593: USING DATA DRIVEN REI TO FIND DISCOUNTED PROPERTIES The real estate market is hot! As a result, trying to find below-market properties is nearly impossible! In today’s podcast, engineer, real estate investor and founder of RealtyQuant Stefan Tsvetkov shares how he is finding tons of below-market properties in competitive markets through data-driven real estate investing strategies.

What You Will Learn * Where you can find “under market” deals in today’s booming real estate market * Why data-driven REI is a “numbers game” * How you can learn to data scrape and find deals from your own computer * How to write and publish to Blockchain for maximum results * The four states that were the most in overvalued as a result of the pandemic * Three states he is targeting for the best deals

About Our Guest Stefan Tsvetkov Stefan Tsvetkov is the Founder of RealtyQuant (https://www.realtyquant.com), a company that brings data-driven and quantitative techniques to the real estate industry. On a mission to add massive industry value through education, investment, technology, and analytics. Financial engineer turned multifamily investor, analytics speaker, and live webinar host. He holds a Master’s degree in Financial Engineering from Columbia University, and during his finance career managed ~$90 billion derivatives portfolio jointly with colleagues. Featured on multiple Podcast and Webinar events including InvestUp, Best Ever Real Estate Show, Discovering Multifamily etc. Host of Finance Meets Real Estate webinar series

More About Stefan * Stefan came from Eastern Europe to the U.S., at age 22, to work on his Master’s degree in Finance and Engineering * He had career in finance for nearly a decade * After that, he was a full-time multifamily investor * He lives and invests mainly in New York City and New Jersey * His first property was a fourplex he bought and house hacked (lived in one unit and rented out the rest) in New Jersey * From there, he started using data to find other good properties * What states are the most overvalued? * He also started writing scripts that he could use when talking to sellers

Using Technology to Find Good Deals * He started writing programs that could scan thousands of on-market and off-market properties at one time. He used + MLS + County records * He started to look at properties by key criteria + Best cap rates + Discounts + Properties that would be good candidates for condominium conversions – a good spread from multifamily to condo - Converting a multifamily property into a condo only requires * Doing the legal side work + Bylaws + Master deed * Setting up an HOA/condo association * Determining the HOA fees * Conditions and requirements for use of the common areas + How the common area is separated - While the condos are being sold you do need to run the HOA * Finding residential is easier because you can literally pull thousands of listings and can zero in on the top .01% + He had great deal more success in areas that - Were undervalued - Where liquidity is a bit less - Places like: * Upstate New York * New Jersey - He could find discounted deals pulling county records * He would look at the market value of the properties according to the tax authorities + The assessment times the equalization rate * He found a small condominium building + Purchased it perfectly turn-key + He had 25% upside by simply recognizing that he could find buyers who would not be overly concerned about the profile of the property * He had a residential fourplex that he turned into a commercial 5 unit – that doubled the valuation * He recognized that most real estate players are focused on the renovation/rehab aspects + The hardest deals to find in New York City are like a gut rehab - There were like 15 offers in a day + Instead, he focused on where his advantage was - He could structure more deals around turn-key properties - He looked mainly at stabilized, turn-key properties – stabilized arbitrage strategy - Very little rehab/renovation, if any * He was flipping but not with the greatest urgency (usually 6 months to 2 years) for the greatest equity gain * He has done 7 properties with this strategy – usually 3-4 family multifamily properties into condominiums + Not too many people in his area want to attempt condo conversions * To find the right kind of property to convert takes a lot of work * Today, he’s more recently focused on commercial, which is more limited

RealtyQuant * Stefan set up a company called RealtyQuant, where his mission is to build different data-driven tools and analytics for the real estate industry — to help investors and other people interested in this data * He is coming out with a new product that will do commercial multifamily lead generation + Off-market properties + Commercial multifamily only + He does not do a residential product like this * He also teaches a course on data-driven real estate investing on Python + He teaches people how to do it themselves + He teaches people: - How to do the scrapes - Shows all his models for residential – on-market, commercial off-market - Automated evaluation models (zero Zestimate) to price houses automatically - Different components of automated underwriting * Condition scoring technology + Taking an image of a property and automatically giving a score on its condition - 1 to 5 score – 1 being perfect and 5 meaning it requires complete renovation - On the textual side, it’s being done using natural language processing models - The main goal is “What’s holding us back from automated underwriting?” – at least in a preliminary sense - It’s more a way to visual rate thousands of properties to help in the narrowing down process - He also teaches a class on Blockchain * How to set up your own security token * How to write up your code and publish it on the Blockchain zero network or other network + To take his courses it would help if you had technical background and experience who are willing to learn a little Python (the programming languages) - He is however, trying to make it with “no code” tools so that more people can benefit

Predicting Overvalued Markets * RealtyQuant also has access to extensive valuation reports on over 2,000 markets/counties: + A collection of state-level and county-level reports and data, assisting you in best gauging overvalued real estate markets and their appreciation potential. + It has also developed statistical predictors for market appreciation, as well as a valuation metric to gauge market downside risk. + Where markets are at and where they are trending + What markets are over-valued + Auto-correlation + Updated quarterly * You can find out which markets are overvalued. For example, for the recent Covid 19-triggered global financial crisis: + States that most overvalued dropping by 40-60% were: - Arizona - California - Nevada - Florida + State that didn’t drop in value - Texas – it only dropped 4% - North Dakota didn’t drop at all + End of 2020 - Idaho was the only strongly overvalued state * It jumped to 47% overvalued by the end of 2021 + From 2017-2021 - Texas and Florida were in the 8-10% overvalued range * Were the top markets for multifamily investors * In the 2nd and 3rd quarters of 2021, their numbers doubled + End of 2021 - Midwest and Northeast were undervalued + Undervalued Markets - Carry very little downside risk exposure – they’re almost immune - Before the global financial crisis, the 10 states that were the most undervalued dropped an average of 4% * There was very little change after the crisis * They may not see much appreciation either - For his own longer term investing, he is targeting these states * Indiana * Ketucky * Ohio - For shorter term holds (2 year max) * Georgia * Florida

Advice for Old Dawgs Looking at Real Estate Investing to Help Them in Their Retirement Years * Only invest in markets with the best downside protection * If you are more active and want to invest in commercial assets, utilize rental listings information to generate leads + Access data points online - Utility charges - Rent rates + Look at those that have the most value-add - Undervalued - Rents are below market - Other income components * Administrative fees + This can benefit you a lot + He will have a lead-generation product online soon that can help you with this

Current Business * What excites him about the future of his business + Building out new models and tools for data-driven development + Utilizing Blockchain for commercial market - Liquidity - Private equity - It will open doors to sponsors - It’s decentralized finance - Operators in mid-range commercial real estate projects would be tokenized * And not just at the asset level (which adds a little bit of liquidity to the project) because you can sell your tokens at the secondary exchange * But it’s really building up the equity stream of blockchain tokens that perhaps represent different sectors (i.e. self storage, retail, multifamily, etc.)

Rap-It-Up * Favorite real estate book: Best Ever Apartment Syndication Book by Joe Fairless * Favorite business book: The Richest Man in Babylon by George S Clason * Most valuable web site for success (other than your own): BiggerPockets.com * Favorite app: YouTube * Favorite quote: “We’re intellectually the superficial reflection of what we have learned and taught.” * If you lost everything – all your assets – and had to start all over, knowing what you already know, and you only had $1,000, what would you do to re-launch your real estate investing business? I would use my knowledge and other people’s money.

How to Reach Stefan * Website: RealtyQuan.com * YouTube Channel: Finance Meets Real Estate

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SHOW NOTES FOR EPISODE 592: WHAT TYPE OF REAL ESTATE INVESTING IS FOR YOU? Real estate investing success is all about due diligence and the numbers! In this episode, the second episode of our “10 Steps to Real Estate Investing Success,” Bill shows how to pick a real estate investing strategy that works best for you.

Intro Successful real estate investors know how to do their research. The better your due diligence, the better your chances of success. But if you are still considering real estate investing as a viable means to generate cash flow and build a legacy that will carry you through your retirement, you also need to do your homework.

I’m going to be very frank here. Real estate investing is not for everyone. A lot of people think all you have to do is buy a few rental properties and you’re off to the races! Well, nothing could be further from the truth. I can share with you first-hand that, especially with rental properties, there’s more required than you might think.

But that’s just rental properties! What about all the other types of real estate investing? I personally feel that there is a real estate investment strategy for everyone but that might not be true for you.

So, if you are interested in going into real estate investing, you should know about the various types of real estate investing first. Here are the most common:

1. Fix and Flip A fix and flip strategy require you to find undervalued properties, fix them up, and sell them for a profit. Most flippers can typically turn a property around in 6 months or less, so you can use hard money loans or short-term financing to purchase the property and have the money for renovations.

Pros

• You may make profits fast
• There are more financing options since it’s a short-term deal
• No long-term commitment
• No headaches from dealing with tenants

Cons

• It would help if you actively worked this investment
• It would help if you had a lot of professional input to ensure you make a profit (make the proper renovations)
• Unforeseen expenses can ruin your investment

Links

• Flipping in Retirement: Your Questions Answered
• Common Risks Faced by Property Flippers
• The Ultimate Beginner’s Guide to House Flipping

• 447: How to Flip a House in 7 Days

• Live-in-Flip The live-in flip offers tax benefits if you do it right. A live-in flip requires you to find a property that’s livable but needs updating/renovations. Then, you fix up the home while you live in it and then sell the property after one or two years. If you wait at least two years AND you live in it for 2 of the last five years, you’ll avoid capital gains taxes on the first $250,000 in profits (single filers) and $500,000 (married filing jointly filers).

Pros

• You buy a primary residence, so you get better financing terms
• There’s no separate property to oversee/manage
• The tax exemptions on the capital gains can be quite profitable
• You can renovate the home how you want

Cons

• You have to sell your home every 2 – 5 years
• There’s no guarantee you’ll make a profit when you sell

• You’ll always have work going on in your home

• Wholesaling As a real estate wholesaler, you work as the ‘middleman.’ You never really own the property. Instead, you do the ‘sleuthing’ — finding undervalued properties (usually from distressed sellers), put it under contract, and then immediately locate buyers willing to buy the property for more than you put it under warranty. Of course, you keep the difference, which is your profit.

Wholesalers use this strategy when they have an extensive network of investors (oftimes flippers) willing to buy homes but don’t have the time or patience to research as you do.

Pros

• You don’t need any money to be a real estate wholesaler
• You don’t have the headache of managing a property or tenants
• Financing isn’t an issue since you aren’t the end-buyer
• You can make profits quickly

Cons

• You must have the time to act fast, or you’ll end up owing for the home if you don’t find a buyer
• It would help if you had a great marketing plan (and network of investors)
• There are no monthly cash flow opportunities

Links

• 287: Turnkey Wholesaling and Flipping in Indianapolis
• 221: Wholesaling Real Estate with Zero Cash
• 147: Mobile Flipping, Wholesaling and Lease Options

• 540: Real Estate Investing as a Successful Side Hustle

• Short-Term Rental Property Buy and Hold A short-term buy and hold means purchasing a property (typically an undervalued property), fixing it up, and renting it out. Your goal is to make a significant profit within 2 – 5 years and then sell the property. You can boost your return by making renovations, increasing rents, and buying in an area you regularly appreciate.

Pros

• You only have the investment for a short period
• If you renovate the property enough or decrease expenses well, you can make a decent profit
• You can use the earnings to level up and buy another property
• A good strategy for high-rent districts with low appreciation rates but high cash flow

Cons

• The potential for a loss is high if the market crashes
• You must actively manage the property and the tenants

• Unforeseen expenses can ruin your investment plan

• Long Term Rental Buy and Hold Long-term buy-and-hold strategies mean buying a property, renting it out, and keeping it for many years (more than 5). With this strategy, you don’t have to worry about investing in high-rent districts or areas with rapid appreciation. The goal here is slow and steady. It works best in popular areas where the tenants are easy and the rents constant.

Pros

• You have the monthly cash flow for the duration of ownership if you have a steady flow of tenants
• You don’t have to worry about quick profits; slow and steady wins the race here
• Allows more time for greater appreciation
• You can invest in properties across the countrywith this strategy

Cons

• You must hold onto the property for at least five years to earn maximum profits
• Dealing with tenants can be a real headache
• If the market crashes, you’re neither stuck with the property longer nor you will take a loss

Links

• 079: Buy & Hold Investing and Avoiding Shiny Objects

• Turnkey Properties If you’re interested in investing in properties but don’t have the patience or time to find renters nor manage the property, consider turnkey properties. These properties are ready for renters, and many already have renters with an active lease in them. You buy the property as-is with the tenants and become an instant landlord once you close on the deal.

Pros

• You become an instant landlord with little work on your part
• If you work with a platform like Roofstock, they do all the due diligence for you
• You can invest in any area of the country
• It can be a hands-off investment if you hire a property management company to handle the property

Cons

• You don’t have a say in who rents the property since there’s a lease in place already
• You may have to invest long distance
• You’ll need access to financing and a large down payment

Links

• 287: Turnkey Wholesaling and Flipping in Indianapolis
• 214: Pros and Cons of Turnkey Rentals

• 168: Ask Bill! Turnkey Investing, AirBNB, Investing With No Job, Out-of-State Investing

• House Hacking If you don’t have the funds to invest in a real estate property separately from your primary residence, combine the two and use house hacking. For example, you buy a primary home with this method, but you buy a 2 – 4 unit property. You live in one unit and rent out the rest, using the funds to cover the mortgage/expenses and possibly earn a profit. Most lenders allow standard financing on a 1 – 4 unit property without charging you higher ‘investment property rates.

Pros

• You may live in your property mortgage-free if the rent covers the costs
• You’re on-site, so you don’t have to travel to take care of the property
• You may have a positive cash flow
• You earn the appreciation of the entire building, not just your unit

Cons

• You essentially share your property with others
• It would help if you were actively involved in the investment (taking care of the property)
• It can be harder to find a suitable property

Links

• Different Ways to Get Started With House Hacking
• 492: House Hacking Over 50
• 430: 7 Ways to Buy Rental Properties with Little or No Money Down

8. Live-in-Then-Rent If you don’t have the capital to buy another property right now, you can use your residence as a rental in a few years. While you live in your home, you can fix it up, getting it ready for renters. Then, once you build up appreciation, you can refinance the property, taking out some of the equity and use it to buy your primary residence while renting the original property to tenants.

Pros

• You have a place to live and can work on your investment plan at the same time
• The equity built up in your home that you’re turning into a rental can help you buy a primary residence
• You don’t have to live with your tenants as you would with house hacking
• It’s easier to get financing for a primary home than investment properties

Cons

• If you don’t buy a property in a popular rental area, it won’t work
• It can take a lot of time – the rental of your property, and the purchase of another property for you to live in

• There’s no guarantee your property will appreciate in the time you want to rent it out and move

• BRRRR The BRRRR method is the Buy, Renovate, Rent, Refinance, Repeat process. It’s a way to build a portfolio by leveraging the investment made in your original property. Here’s how it works.

You buy an undervalued property either with cash or financing and then renovate it. Once ready, you rent it out and earn monthly cash flow. After six months, you refinance the property taking the equity out of it that you made, and use the equity to buy another property and do the same thing.

Pros

• You may earn immediate appreciation if you buy an undervalued property and renovate it enough
• It’s easier to build a portfolio of properties by leveraging the equity
• You’ll get financing easier if you have large down payments from the previous home’s equity
• You can diversify your risk by investing in multiple real estate markets

Cons

• You must know how to find undervalued and distressed properties
• It would help if you were actively involved in each property which gets time-consuming
• Decent credit is necessary to secure financing for multiple properties

Links

• 277: Long Distance Real Estate Investing Using the BRRRR Method

10. Airbnb Airbnb rentals are short-term rentals. You can own an investment property, but instead of renting it on long-term leases, you take advantage of short-term tenants. You may be able to charge higher rents since you’re offering a premium service versus a place to live, and you don’t have to deal with tenants around the clock; you are in charge of when people occupy the property.

Pros

• Has the potential for higher and faster profits than a long-term buy and hold
• You can charge pricing according to demand, holidays, etc.
• You can mark the property ‘unavailable’ when you want and even use it yourself
• You can visit the property more often and know its condition and what needs repairing

Cons

• There’s more (and stricter) legislation on Airbnbs
• You don’t have as much control over who rents your property
• Unless you hire a management company, it’s a lot of work to keep up with

Links

• 383: From Realtor to Real Estate Investor to AirBNB Mavin
• 355: How to Make Big Money on AirBNB Without Owning a Single Property
• 222: AirBNB on Auto Pilot
• 196: AirBNB Apartment Test Update
• 168: Ask Bill! Turnkey Investing, AirBNB, Investing With No Job, Out-of-State Investing
• 10 Best Tips for AirBNB Property Success

11. Trading-Up The IRS makes ‘trading up’ easy with the 1031 Like-Kind Exchange rule. With this rule, you can sell an investment property, and if you use the proceeds to invest in another ‘like’ property immediately, you defer the capital gains taxes. Thus, it allows you to invest in something more extensive, possibly make more significant profits and not lose any money to taxes just yet.

Pros

• You can continually ‘up level’ your real estate investments
• You can experience different real estate markets
• Capital gains taxes don’t become due if you keep reinvesting in properties
• Have more purchasing power by offsetting the capital gains taxes

Cons

• There are strict laws and regulations you must follow
• You have a strict deadline to follow
• Any money left that you don’t invest in the new home is taxable

Links

• 421: Freedom From Capital Gains Tax WITHOUT a 1031 Exchange
• 337: The Power of the 1031 Exchange – Part 2
• 335: The Power of the 1031 Exchange – Part 1
• What is a 1031 Exchange and How does it Work?
• 082: What is a 1031 Exchange?

12. Lease Options This involves buying a home, fixing it up (or not) and putting it on the market as a Lease-to-Own/Rent-to-Own home for buyers who may not qualify to purchase a home on their own. It usually includes a higher-than-market rent , a higher-than-market purchase price and a large non-refundable down payment.

The idea is that the person who is leasing/buying the property will treat the home as if they own it. They are responsible for all repair and maintenance of the home for 3-5 years while they work on getting their credit good enough to re-finance and pay-off the owner and take on a bank mortgage. You just collect the rent, keep the deposit and sell it if the tenant can’t re-finance.

Pros

• When you buy, then sell on a rent- or lease-to-own arrangement, you get higher rent, large non-refundable deposit upfront and the buyer is usually responsible for maintenance.

Cons

• The bookkeeping is tricky, and most tenants don’t complete the purchase (this can be an advantage too, but it does mean more work for you).

Links

• 147: Mobile Flipping, Wholesaling and Lease Options
• 137: Building a Virtual Real Estate Business
• 147: Mobile Flipping, Wholesaling and Lease Options
• 057: Special Ops Lease Ops

More Strategies Hard Money/Private Money Lending If you don’t want to invest in properties themselves, you can invest in the investors who provide the financing. A hard money lender is a private investor (like yourself) who provides funding for an investor for the short term. They are usually loans for fix and flip properties or short-term Buy and holds. Could come from a self-directed IRA or Solo 401K.

Pros

• You can charge high interest rates for your specialized financing
• You don’t have to deal with real estate directly yourself
• You are in control of who you lend money to
• Your limit is only the amount of money you have

Cons

• If borrowers default, you have to repossess the property and then sell it
• There’s no guarantee you’ll find ‘good’ borrowers
• It would help if you did the work qualifying the borrowers

Links

• 259: What is Hard Money and When Do You Need It?
• 358: How to be a Private Money Lender
• 039: How to Raise Private Money

REITS (Real Estate Investment Trusts) * Advantages: Easy to buy and sell. Like stocks. * Disadvantage: Can’t control it. Not as high a return as other types of real estate investing.

Links

• 345: Wazzup With REITS?

Crowd Funding * Online portals where you can invest in residential up through commercial property for as little as 10 dollars.

Trust Deeds * Advantages: Good for investors with bad credit to invest in high end real estate. Can obtain mortgage without qualifying for loan. * Disadvantages: Large loans with larger degree of risk to investor. Pay more for properties and risk of bankruptcy.

Links

• 103: Buying and Selling Notes and Deeds

Tax Liens * Advantages: Inexpensive way to obtain high equity property. Low maintenance, many properties don’t have a loan on them, and owners don’t want them. * Disadvantages: You’re going to need a lot of money to get started. Getting clear title can be a challenge.

Links

• 321: The Benefits of Being a “Lienlord”

Self-Storage * Advantages: Get higher returns, and better cap rates than apartment buildings. Don’t have the traditional tenant problems that go along with an apartment complex. * Disadvantages: Need full-time on-site manager. You need fences, security systems that allow and control access, cameras and video systems to watch over the place.

Links

• 133: Investing in Self Storage Facilities
• 315: Self-Storage Investing Strategies

Real Estate Syndication Passive Investor * Advantages: You generally get higher yields than most other available investments. Backed by real estate. * Disadvantages: Need to carefully vet sponsor. Preferred rate is not guaranteed and depends on the cash flow of the apartment community, but also it is at the discretion of the sponsor.

Links

• 482: Welcome to 2021! Are You Ready to Generate Passive Income?
• 301: How to be a Passive Investor in Real Estate Syndications
• 273: Passive Cash Flow Investing & the Art of Effective Networking
• 233: Passive Syndication Investor in 1,400 Units While Working Full-Time
• 225: How to be a Successful Syndication Passive Investor
• 151: Strategic Passive Investing

Various Commercial Real Estate Investments * Triple-Net Leasing * Warehouses * Office Buildings * Malls * Hotels

Raw Land * Advantages: It is simpler than most real estate investments, with the possibility of great profits. No tenants, toilets or trash. * Disadvantages: It can take a long time, and you have expenses, high risk and no cash flow while you wait.

Links

• 519: Raw Land Investing
• 389: Profiting from Raw Land Investing
• 265: Crushin’ it With Raw Land Investing
• 083: Flipping Raw Land

Reference:

https://www.geekwire.com/sponsor-post/top-12-real-estate-strategies-investors-know/

http://olddawgsreinetwork.com/best-rei-strategy-older-investors/

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

Check out our other podcasts at olddawgsreinetwork.com.

Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

Additional Episode Sponsor: Meno Studio – menostudio777@gmail.com

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Have you ever dealt with bad renters? Late payments? Stains on the carpet? Calls late at night about a stopped toilet? Sometimes being a Landlord is not a fun game, especially when you have a nice home and bad tenants.

Have you taken advantage of the recent low interest rates and refinanced your home to the maximum? What about a home equity loan or other form of second mortgage? Do you know how much you can walk away with from the closing table after paying all mortgages and associated costs, like realtor fees? Many people walk away with very little or nothing. Some even have to pay. If this scenario applies to you, it may make sense to delay the sale of your home. It may be possible to generate positive cash flow and lock in a higher selling price with a FSBO (for sale by owner) lease/purchase agreement.

Here’s another scenario: You want to sell your own home, but it’s not moving as fast as you would like (or as fast as the “fast-talking” realtor who convinced you to list it). You’ve thought about renting it to cover your mortgage payment, but nobody wants a short-term rental with no idea when they have to move out. And what if the tenant WON’T move out when you have it sold? A FSBO lease/purchase agreement could be a solution.

So you decide to leave it vacant. You make two, three even four mortgage payments. Your insurance company cancels your homeowner’s policy because it has been vacant for more than 30 days (it’s true, they can do it so read your policy!). You don’t want to severely discount the price, yet you need to do something NOW! Here’s a FSBO solution – lease with option to buy or lease/purchase (also referred to a rent to own).

What does the FSBO lease/purchase of a home mean? Lease + Purchase Offer = Lease/Purchase Agreement At some time in your life, you have rented a house or apartment, so you are familiar with a lease agreement. If you have ever bought or sold a house, you are familiar with a purchase offer. The lease/purchase agreement is a hybrid of the two – a lease agreement combined with a purchase offer (sometimes called “rent-to-own” or an “option,” or that is, the right to buy the property at an agreed upon price).

Here’s an example of how lease/purchase works. Let’s say you have a house worth $100,000. The “going rent” in your market for that house may be about $1,000 per month. A lease/purchase agreement would read essentially as follows:

• Lease Term: Two Years
• Monthly Rent: $1,000
• Purchase Price: $100,000
• Rent Credit: $400/month

Usually, part of the monthly rent will be credited towards the price of the house. In the above example, 50% or $400 per month is being credited. So if the tenant decides to buy after one year (lawyers call this “exercising their option to buy”), they would pay $100,000 – $4,800 = $95,200. If the tenant/buyer does not purchase the property, the owner would keep all of the monthly rent. The best part is, the $400/month is considered “option consideration” by the IRS and does not have to be reported as income until the house is sold or the lease/purchase agreement expires!

As you can see, there are many benefits a lease/purchase can provide you, including:

• Immediate relief from mortgage payments
• Fast Solution to the “Nice House in a Slow Market” scenario
• Guaranteed no vacancy
• No need to severely discount the purchase price
• Tax deduction (since the property can be treated as “rental” for tax purposes)

Why Don’t I Just List it With A Real Estate Agent? It can’t hurt to list with a real estate agent or broker. However, most real estate brokers simply “list” your property. This means they stick it in the multiple listing computer and wait for a bite. The first problem with this method is that there are thousands of other homes in the computer that read just like yours. If you want to move your house FAST, you have to offer something different. The lease/purchase is that special something that makes your house attractive.

The second problem is that most Realtors don’t know what a lease/purchase is, how it works, and how to market such a deal. Most Realtors will not get involved with a lease/purchase, because they simply want a higher fee (after all, they have to make enough money to pay for those large display ads with their picture on it!).

A lease/option can be the perfect solution for a stagnant property in a down market. It just takes a bit of creativity and the ability to work “outside the box.”

Bill Manassero is the founder/top dog at the “Old Dawg’s REI Network,” a blog, newsletter and podcast for seniors and retirees that teaches the art of real estate investing.

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SHOW NOTES FOR EPISODE 591: CATCHING KNIVES: INVESTING IN DISTRESSED COMMERCIAL REAL ESTATE He was a millionaire before the age of 30, only to lose it all in the Great Recession! Taking lessons learned, getting educated and finding a solid niche strategy, author, broker and commercial real estate investor Jake Harris created a winning success model that continues to generate wealth today.

What You Will Learn * Understanding the value of being around and learning from successful people who have “been there and done that” * Being willing to work for nothing to get on the fast tract to wealth * How to recover from big losses with a winning attitude, grit and determination * Strategic flipping for quicker and higher cash payouts * The power of mastering a dynamic niche strategy * Why distressed commercial property is an “inflation proof” asset * How his strategy survived Covid with flying colors * How to a conservative yet highly profitable real estate investor

About Our Guest Jake Harris Jake Harris is a best-selling author on distressed commercial real estate, bringing 18+ years of experience in real estate, construction and investment management, and has been a featured national speaker on real estate. Over the past 6 years, he has managed, developed and acquired $200m+ in projects and over $250m in the development pipeline. Jake loves to build relationships and communities. Above all, he is a family man, the father of two adventurous boys and a newborn daughter with his wife.

More About Jake * Jake was in the Army, finishing up his career * He was a sergeant in the air assault infantry * He “didn’t know what he wanted to be when he grew up” * Someone gave him a copy of Rich Dad Poor Dad by Robert Kiyosaki * After reading it, he knew that this what he wanted to do * It sparked memories from his childhood in Northern California, near Sacramento area * When he was a kid (age 7-13), his family lived in a 16 ft camp trailer on an old farm house site * His parents bought an old “fixer-upper” farm house built in 1888 * It was once part of a massive 1,000 acre orchard at one time in Northern California, near a railroad town * As a little kid, he grew up around this rehab that took many years for his parents to fix-up * Rich Dad Poor Dad made him recall those days * But it took a few years before he actually decide to pursue real estate investing as a profession

Learning Construction * After the Army, at 23, he got a job as a bartender at a country club golf course * He knew he wanted to get involved in real estate investing but just didn’t have the funds * He got the job at the country club because he wanted to be around some rich people that might be potential investors * He would share with real estate investors, developers, contractors and others at the country club that he was 23 and ready to get involved * One guy (a developer he met at the country club) told him he should get into construction. He said, “It doesn’t matter what you do in real estate, there’s (always) a contractor involved.” And he said, investors are always competing with contractors as far as where funds will be spent. * Jake saw it as a true advantage to understand the contracting side no matter what he did in real estate * So he went into commercial construction * He talked his way into a job that he didn’t know how to do – he was very persistent! * He also told the company that he would work the job for free! * He was applying for an estimating position – he was confident that he could figure it out * He got the job but had no idea what he was doing * He figured it out as he went along – baptism by fire! * He was more on the “administrative” side of construction as someone who did a lot of estimates * However, he got to know the “trades side” of construction through observation * He eventually got promoted to Superintendent/Project Manager in the East Bay area (near San Francisco) for Equity Office Properties (owned by Sam Zell, one of the most successful real estate investors in the U.S.) + San Zell was known as the “grave dancer” because he would buy assets that nobody wanted, rehab them and boost their value * All of this prepared him for what he is doing today with distressed commercial real estate

First Investment Properties * Jake eventually moved to Phoenix in the early 2000s where he purchased his first investment property * He found a job working at a company where he did high-end kitchen and bath remodeling * In the evenings, he would flip houses at $75K on average per house * However, he was not doing what most people would know as a typical full rehab flip * Jake would find a house where he could do just a few quick “strategic” changes to make, for example, a 3 bedroom home into a 4 bedroom and then sell it for $75 more because of that change * With the large cash profits he was making, he would shift to strictly investing and not that much construction * He became a millionaire before the age of 30 * But he then, just stopped, didn’t move the goal and became as he says, “fat and lazy” * And then the Great Recession hit and his dreams were shattered * As he started selling his properties, he ended up writing checks “out-of-pocket” for the difference owed on the mortgages * He eventually ran out of money before he ran out of houses * He remembers sitting on a corner in Phoenix, Arizona (sounds like a song…lol) crying his eyes out because he lost everything * It forced him to take a look at his life and what he wanted to do

Education * Even though he had lost everything, it made him more committed than ever to stay the course and be the best at what he could do as a real estate investor * Jake ended up going back to school and got a degree in International Real Estate and Finance * He also go his real estate broker’s license

Finding His Niche * Jake looked at various types of real estate and saw that he could make 10% on a $250,000 house and walk away with $25,000 * Or he could put in the same amount of effort into a commercial property that sells for $2,500,000, yet walk away with $250,000 * You would have to sell 10 houses to earn the same as one commercial property * This nailed it down for him! * Before, he had limiting beliefs that he could never do big deals like that but he soon overcame that * He loves commercial deals between $2 and 25 million dollars * In commercial deals that size, there’s not as much competition * You’re above mom and pop investors but too small for the institutional or private equity funds who are only looking at hundreds of millions

Types of Commercial Deals * Over the years, Jake has invested in a wide variety of commercial real estate investments * Some of those properties have included: + Hotels + Conversions of warehouses into apartments + Built single family subdivisions + Apartments + Land assemblage + Industrial land + Office buildings * What he invests in more than properties are markets + He uses a lot of data to monitor and find good markets - Demographics - Infrastructure - Bond spending + People are abandoning West Coast states + As a result, there are booms occurring in places like Boise, Salt Lake, cities all over Texas + Once they find a market they like, then they look at each of the commercial asset classes + Then, they are just looking at good deals in that market * Then, he focuses on distressed properties + You can get a greater discount + It allows for beginning investors to make mistakes with reduced risk and still make a profit * With the major inflation happening, it does reduce some margins but you can still make money

Commercial Post Covid * Jake had some challenges with his business due to Covid * He lost some retail tenants. restarters + He had a Buffalo Wild Wings on a corporate-guaranteed lease but their lease came due and they didn’t want to sign a new lease + Fortunately, he was able to get them on a one-year lease, and again renewed for another year + Hopefully, they will renew for longer term as the reality looks brighter * The positive impact was that they were able to buy some properties under-value + They were able to buy some San Antonio commercial property at under replacement value at $70 a sq ft and $30 per sq ft for TI (tenant improvements) – all in numbers were at $100 a sq ft + They had a competitive advantage over everyone else in the market that had maybe just transacted at $200-300 a sq ft - They didn’t have a whole lot of wiggle room in their price that he had * This meant that they were able to keep up with occupancy levels * They also were able to do some “repurposing” + The future of the office world is still unknown, especially with so many people working from home + However, the demand for multifamily continues to grow - Rents are skyrocketing! - And fortunately, multifamily cap rates benefit that additional cost of adaptively re-using that building + Therefore, they took an older office building, a 10-story historic building built in 1920, and are converting it into apartments - They’re doing an office conversion into 63 apartments on the Riverwalk in San Antonio, TX - It also qualified as an Opportunity Zone - And they layered in some PACE (Property Assessed Clean Energy) structured financing * It has added some complexity but it has also made in a good deal * Getting federal tax credits, state tax credits through PACE * They were able to upgrade the plumbing, electrical, windows, etc. + He has a broker’s license for commercial and residential but really doesn’t use it for most of their transactions. He uses outside brokers

Biggest Mistakes * Over-leveraging early on, when he was much younger + When they give you a loan for 105% of your purchase price you should know that it is a BIG RED FLAG! * All of his failures were learning experiences * He also learned that “you don’t have to do this alone” + Real estate is a team sport + Get people who know what they are doing in their individual expertise - He knows construction well - But he uses a lot of other people with expertise that he does not have * Real estate attorneys * Banking/finance * Contractors * Engineers * Inspectors - Early on, he thought he had to know it all before he started investing * He got his broker license * He got his Master’s degree * But the reality is… + Those are all limiting beliefs that you can or can’t do it - He was down in Miami and this “kid,” fresh off the boat from Cuba, in his late 20s or early 30s, and he just finished a 45-story condo project in Miami * Jake asked him how it did it * The “kid” had just come to the U.S from another country, 4-5 years ago, with no money, no credit or nor experience + He went out and bought a piece of land for whatever it was listed for + He hired a contractor and architect that did another project down the street - Whatever the price was that they charged, that was it + He walked around, met people and raised money explaining what the project was + He pre-sold the condos + And was able to build it out + His very first real estate development project he every built was a 45-story condo project that made him $28 million profit! + This whole thing made Jake question everything he previously believed and his own limitations + It made him question all of his own self-imposed limitations + He came to the conclusion that all of your limitations are your “self-limitations” – whether you think you can or think you can’t, you’re right!

Biggest Success * Whatever he is working on right now is the most exciting and successful project he has ever done! * He doesn’t have to work any longer if he wanted to stop today * He flashes back on when he became a millionaire before 30 – how he just sat around and got fat and lazy * He doesn’t do well when he’s not working * He needs some sort of creative outlet – and today it is real estate * He loves taking his kids to see some of his job sites * It’s the ability to control his own path, and have and do things he enjoys * He loves what he does!

Advice for Old Dawgs Looking at Real Estate Investing to Help Them in Their Retirement Years * Ask yourself, “What is my dream life?” * Then, look at what it would take to achieve that * Then, begin “reverse-engineering” that dream * What will I need to make (dollar wise) to achieve that dream? * How much do I need to make a year to have my dream life? * When you have a good idea of the direction you want to go, you can devise an investment strategy around that + Diversity is great if you want to offset risk - But most people have made their greatest amount in one category (i.e. oil, plastics, technology or real estate) - Triple-net leases are perfect for people who don’t want any risk, who want mailbox money coming in * Can you go find an industrial building in the Midwest that has a corporate triple-net lease guarantee? Yes, that’s possible! + It requires very little effort + You can use things like cost segregation and depreciation bonuses that offset some income, or some other things you’re using with your retirement account + Maybe you’re investing with your retirement account and are not even concerned with that, have a lower risk and want a more stabilized asset like a multifamily property * Why not invest in a distressed commercial property + It has a wider margin of safety where you can make mistakes and still be successful + Retail is more distressed than other asset classes - It’s very location driven * You’re selling your box of Cheerios and you have to have a margin if you don’t have your customer in that location + If it’s cheap rent, it doesn’t matter if your customer isn’t there, so now you have to think of things more creatively * To recap + First think of what you are trying to achieve with your investment strategy + That helps then to determine the next levels of steps for you to determine what you are going to invest into + Some people like glamorous, sexy projects like luxury hotels

Current Business * Jake is very excited about hospitality right now + It’s merging over all other real estate right now + People have more friends online with social media than ever before + But people are also feeling more isolated, alone and depressed than ever before + People are seeking community, connections with other people - Hospitality accomplishes that really well, at a high level + Taking some tired hotels and rebranding them is where he sees himself spending more time and effort + Hospitality is an amazing hedge for inflation - Rates are doubling - You can have less occupancy but make the same or more profit! + The rich are getting richer + More millionaires are happening every year + People are looking for unique experiences + If you have the option of staying at a boutique hotel that’s different, more people are looking for that - This category of hospitality is recovering faster and seeing better long-term investment strategy vs. the cheapest option out there

Rap-It-Up * Favorite real estate book: Powerhouse Principles: The Ultimate Blueprint for Real Estate Success in an Ever-Changing Market by Jorge Perez * Favorite business book: Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones by James Clear * Most valuable web site for success (other than your own): CoStar, Crexi and Loopnet to find more deals * Favorite Group: Gobundance.com * Favorite app: Instagram (to see trends – hotel designers, architects) * Favorite quote: “If you don’t rise to the level of your own goals, you fall to the level of your systems.” – James Clear * If you lost everything – all your assets – and had to start all over, knowing what you already know, and you only had $1,000, what would you do to re-launch your real estate investing business? I would use the money to re-connect with people in Gobundance and mastermind group to find people that need talented people that can do work. I would figure out how I could work for them to get started again.

Where to Get Jake’s Book * Get Jake’s book – Catching Knives: A Guide to Investing in Distressed Commercial Real Estate * The book that details Jake’s successful niche strategy with distressed commercial real estate

How to Reach Jake * Website: CatchKnives.com * Instagram: @Jake.RealEstate * Company Website: Harris-Bay.com

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

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SHOW NOTES FOR EPISODE 590: IS REAL ESTATE INVESTING FOR YOU? In our first episode of a ten episode series entitled the 10 Steps to Real Estate Investing Success, Bill explores the question – “Is Real Estate Investing for You? In today’s podcast, he looks at the key factors each prospective investor should consider before diving into real estate and the pros and cons of real estate investing.

Introduction Real estate can be a valuable investment that can compete with, and often outpace, the returns of the stock market. However, the value real estate can offer isn’t without risk or effort. If you’re considering becoming a real estate investor, You need to know the pros and cons of real estate investing. I’ll being given you an overview and share with you how to assess if it’s worth it for you.

Benefits of real estate investing There isn’t one main benefit to investing in real estate, but there are several benefits that, when combined, really make this asset class a worthwhile investment. Similar to stocks, a real estate investment can appreciate, or increase in value, over time while being a source of cash flow from rental income or mortgage income.

However, unlike stocks, a real estate property is a tangible asset that can be leveraged while offering several significant tax benefits, including depreciation and tax deductions, which can also reduce capital gains.

Real estate investors rarely look at one benefit as the sole reason to invest, but rather one or more of the benefits together. It’s not uncommon for investors to achieve double-digit returns (meaning 10% or more) with an real estate investment, but, when other benefits of real estate are factored with it, the return is far greater.

Drawbacks of real estate investing But, keep in mind, it can also have its drawbacks. Real estate investments can require a significant amount of work, particularly if you plan to buy, own, or manage a property as an active investor. There are ways to make it a more passive investment by outsourcing property management or investing in a real estate crowdfunding opportunity or real estate investment trust (REIT) — but investing in real estate still requires work.

There are also ongoing costs to owning real estate. If you own a property, properties need to be maintained, improved, and managed properly to maintain the investment. Investors are responsible for paying annual property taxes and insurance. If you own rental property, you also have the added responsibilities of working with and dealing with tenants.

Also, real estate, as with any other investment classes, isn’t immune to market fluctuations. Both the stock market and real estate are affected by economic recessions. Decreased demand, oversupply, environmental disasters, and vacancies can all negatively impact the investor’s bottomline.

Is it worth my time? When it comes to real estate investing, there are many different factors to consider. What is involved in becoming a successful real estate investor? There are multiple answers to this question and countless answers on how best to approach real estate as an investment.

Passive vs. Active Investing Real estate investing is not necessarily for everyone; however, I personally tend to think there is a real estate asset for everyone. To properly assess whether or not real estate investing is worth it, you should separate real estate investing into two broad categories – Passive and Active!

Passive real estate investing is like investing in stocks, bonds and mutual funds. You hopefully do your research and then, you’ll write a check (if anyone really does that any more) or, more commonly, just transfer or wire funds. Examples of passive real estate are:

• REITS
• Crowdfunding
• Syndication investing
• And possibly
  • “True” Buy n’ Hold
  • Notes, deeds. Leins
  • Private lending

Active investing will require more of an investment of your time. Examples of active real estate investing strategies include

• Wholesaling
• Flipping
• Rental properties
• Mobile home parks
• Airbnb and short-term rentals
• Commercial property acquisition and management

So, if either active or passive is still of interest, then, what are some things that you should consider before building or growing your real estate business?

Here are a few things to consider… These factors may not apply to everyone’s situation, but we find these issues often crop up when people discuss their lack of success.

Motive Why are you investing? The first thing you need to do is determine your motive behind investing in real estate. Are you doing it for the cash flow? Do you want a haven from inflation? Or perhaps you see a money-making opportunity that will help you achieve your personal goals and dreams. Whatever your motive is, make sure that it aligns with your overall financial goals and objectives.

Time How much time can you commit? Every real estate business venture requires different levels of involvement, depending on how much time you have available. Some people may want to dedicate a lot of time to learning the ropes and be very active with their investments. Others would rather spend as little time as possible but still generate a good return on their investment.

Inflation In light of inflation, what is your objective? Inflation can be deflationary or inflationary, depending on the market. Investing, generally speaking, has been a great hedge against inflation. However, property invested in today, potentially, can lose value if there is significant inflation and, if you depend on renters, it can directly impact your cash flow. When the inflation rate is high, rental income tends to lag. It is vital to prepare accordingly for expected and unexpected inflation when investing in real estate.

Market What is the value of properties in your area? Real estate pricing can vary significantly depending on location, size, and demand. Suppose you’re considering a universal real estate investment such as raw land or apartments. In that case, it is important to conduct research to assess the history of values in the market. Are prices trending up? Is population increasing? How are jobs? Services? Growth opportunities? It’s important to do your due diligence before spending money on speculative opportunities that might not be viable investments with adequate returns.

Planning Do you have a strategy? Real Estate Investment strategies vary based on the type of property and the market in which they exist. Some investors focus on low-risk/low-return, safer investments like apartment buildings. In contrast, others go flat out for high-risk/high return ventures such as ground-up construction projects. It’s essential to have a plan before you get started to get the best value, even if your investment changes course along the way. If you are considering a loan for your investment property, you might want to consider a reliable source that will provide you with Logbook Loans and other related Secured Emergency Loans.

Legal What are my rights? Real Estate Investments fall under real property law, which varies from state to state and location to location. It is essential to learn the laws for commercial and residential real estate investments before you ever invest, just in case something happens later on — ignorance is not an excuse in court.

Asset Classes, Market Conditions & Capitalization Rate What asset class are you going to invest in? Are there any new laws or legislation that might affect this asset class? How will the market condition affect you? What is your capitalization rate? These are some good questions to ask yourself before beginning with any real estate investment. Click here for some additional information on how to answer these questions. You can even do a quick google search to find some professionals willing to help you out while making the most informed decision possible– keep in mind that they work off commission, so don’t pay too much attention to what they say.

Is Real Estate Investing Worth It? Investors often look to the stock market for growing an investment portfolio. With the S&P 500 producing a historical average return of 9% to 10%, there’s clear value to investing in stocks, index funds, or mutual funds. But those looking for diversification of their investments may wonder: Is real estate investing worth it?

Real estate can be a valuable investment that can compete with, and often outpace, the returns of the stock market. However, the value real estate can offer isn’t without risk or effort. If you’re considering becoming a real estate investor, find out whether it’s worth it.

In Conclusion A famous quote made popular by the internet states that 90% of millionaires have been created in real estate. While this statistic has yet to be verified, it’s well known that most high-net-worth individuals attribute at least a portion of their investment portfolio to real estate. Investing in real estate can have tremendous value and be a great way to diversify a portfolio.

Whether real estate investing is worth it is ultimately up to you. However, in most cases, the benefits often outweigh the drawbacks and risks. It’s really a matter of finding the investment strategy and investment opportunity for your financial goals.

Like any other investment, Real Estate Investments have their pros and cons, as you can see. It is crucial to consider the things just mentioned before you move on to serious investments. However, it is always advised to consult with an expert before actually investing in protecting your interests no matter.

References:

• https://www.millionacres.com/real-estate-basics/investing-basics/is-real-estate-investing-worth-it/
• 460: Is Real Estate Investing for You?
• Real Estate Investing for Seniors
• 7 Reasons Why Real Estate Investing is the Best Way for Seniors to Make Money
• 028: Why Real Estate Investing is Great for Retirement
• 122: The Importance of Knowing Your Why
• If Real Estate Investing Is So Great, Why Doesn’t Everyone Do It?

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

Check out our other podcasts at olddawgsreinetwork.com.

Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

Additional Episode Sponsor: Meno Studio – menostudio777@gmail.com

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Becoming a successful real estate investor Becoming a successful real estate investor requires being able to find good real estate investment deals and put them together. Your job is not to become an closing attorney, a management expert, or a repair person. Use professionals!

You must learn how to appraise and find the true value of real estate. This information will help you make better investment decisions. Realtors, appraisers, and banks determine what a single family home, for example, is worth by looking at comparable sales usually three to five sales of similar property that has recently sold in the same neighborhood. You must be able to do the same.

Getting a list of comparable prices of properties bought or sold (and when it sold) for the neighborhood you need information about, and asking active real estate investors in your area what the market is like will be helpful and making a better investment decision.

What is the ideal market for investing? There is no such thing as an ideal real estate market for investing. It tends to be more difficult to find bargains in rising markets. If the market keeps rising, the probability of selling the property quickly for a large profit increases. In contrast, when property values are falling, more bargains become available.

You need to be able to assess the true value of properties based on when you expect to sell. Your purchase must be made at a good enough discount to allow for a profitable sale at a later date.

Leverage Leverage is very important for investors because the less cash you put down on each property the more properties you can buy. If the properties go up in value, your rate of return goes up. However if the properties goes down in value and you have a lot of debt on the property, this can result in negative cash flow.

Since real estate is generally cyclical, negative cash flow is only a short-term problem and can be handled if you have other income or a cash reserves. This makes “Nothing down” investing very helpful to protect against negative cash flow for high leverage investor.

If you are a long term real estate investor, leverage will work in your favor if the markets in which you invest appreciate in the long run and your income from the properties can pay for most of your monthly debt.

Strategies to limit risk To limit risk, become educated in your local real estate market first by understanding the large scale trends from global down to national, regional and specific neighborhoods. Learn about target neighborhoods with the help of successful real estate investors in your area along the way.

Real estate investors can help you interpret market indicators such as the average length of time houses have been on the market this month versus last month or last year. With this information it will help you make better investment decisions.

Exit strategies It is important not to guess the future of a local real estate market. You need to have a clear plan in mind when purchasing property. As a real estate investor, you must know exactly how you will exit the property before you buy. And have a backup plan or two in case the first course of action doesn’t work. You must know your market and your plan before you begin to invest.

Bill Manassero is the founder/top dog at the “Old Dawg’s REI Network,” a blog, newsletter, and podcast for seniors and retirees, that teaches the art of real estate investing.