Investing In Real Estate – Part 2

Investing In Real Estate – Part 2

  I am listening to an audiobook called “The Entrepreneur’s Blueprint to Massive Success” by Peter Voogd. It talks about if you want to be a millionaire, hang around billionaires and you will get there faster. It talks about getting a mentor to help you achieve your highest success. Sounds like we were on track with last week’s blog! So, now what? Well, let’s continue with our interview with our successful real estate investor and see what kind of nuggets we can glean.   I asked, “Why do you continue to invest in real estate?” It is either invest in real estate or the stock market. He does not have much interest in the stock market. If he worked for a company with a 401k, etc., the stock market probably would have been more impactful but you have no control of whether it’s up or down, etc. He feels like he can beat the system in real estate much more than he can in stock market.   He currently owns about 65 properties in Texas, Tennessee, and Indiana. They are mostly single family with a few condominiums sprinkled in. He was opposed to condos at first, mostly because of the HOA fees, but a certain Realtor found him such a great deal on about 10 units that he decided he could look past the politics of the HOA and go straight to the bank with what he could clear each month. (I never claimed to be above the occasional shameless plug). His mentors always purchased single family properties so that’s what he was indoctrinated in and he feels that, if you need to liquidate, single family properties are easier to sell.   A common question I get about real estate investing is, “what do you look for”? Here is what this investor looks for as far as criteria to purchase a new property? His perspective may be a bit interesting. Coming out of California, losing $200/month was acceptable because values were appreciating exponentially each year. If you are not in a market where that is the case, you may need to look at it differently. In alternate markets, he looks for positive cash flow on day one then just ride it out as a long term investment. In general, he simply looks for “conforming” property – not the biggest, not smallest, just something that fits in the neighborhood. Red flags for him are foundation issues and floor plan issues that can’t easily be fixed.   His advice to someone who is considering investing in real estate? Read “The Wealthy Code; What the Wealthy Know About Money That Most People Will Never Know” by George Antone. It talks about positive...

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Investing in Real Estate – Part 1

Investing in Real Estate – Part 1

  Because I am a Realtor in the “it” city of Nashville, I get a lot of people asking about investing. I thought it would be helpful to give some tips on how to get started, what to look out for, and some things to watch out for. I interviewed one of my investor clients who has learned more than I may ever know. I have so much information that I am going to break it up into two posts.   If you have been bit by the real estate investment bug, it is wise to meet with a CPA and a Realtor on the front end. My CPA, Corey Barnes with CRG Waddill, suggests investors learn about the tax implications and benefits prior to purchasing their first property. You may be able to save money based on how you purchase, depending on your long-term objectives. A Realtor can help educate you on the investment market in your area. They will typically know what areas have better investment opportunities based on the criteria you are looking to use. Some people want to buy and flip, others want to keep for rental income and you can do either in a wide range of price points.   Here’s some background on the investor that I interviewed. I asked him how he got started in real estate investment in the first place. He said that early on it was explained to him that regardless of what happens in the world there are 2 things that aren’t going away, food and shelter. People need to eat and have a roof over their head.   In his teens, he was working at a paint and wallpaper retail store. He met an understated painting contractor who was painting the second phase of a housing development. He had a gruff beard and wore overalls, not exactly what you would think of as Harvard material but his looks were deceiving and this teenager learned a lot from this man. The builder of the housing development raised price of phase 2. It was the exact same product but priced it $5000 more per home because phase 1 was sold out. This lit a fire under the painting contractor to buy a house and rent it out. He got the tax benefits and the tenant paid down the loan balance. This got him thinking about to go about doing it himself. ​   ​He was 19 years old. It was 1976. Developers were doing condo conversions. Within walking distance to the paint store he purchased a 2 bed/2 bath condo with a 1-car garage for $27,000 with his brother and sister-in-law. He didn’t understand taxes, insurance, etc. He was...

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Personal Safety for the Holidays

Personal Safety for the Holidays

  Personal safety is important every day. As a Realtor, I have been trained to be constantly aware of my surroundings as well as some small tips to use when showing a house, holding an open house or going to a listing appointment. As the holidays approach, we are all likely to be in situations and locations where personal safety is even more important. I asked my personal trainer, Mark Simons, to write an article to help us all stay aware and, hopefully, safe during this time of year.     Nothing messes up a Christmas celebration more than getting mugged in the mall parking lot. Hard to argue with that statement. In the law enforcement world, officers are trained constantly in the arena of use of force. But it’s not just using force to effect an arrest. Often officers are attacked without provocation. In their world it’s called a sudden assault. Now these assaults can seemingly come out of right field. But over the years, officers have picked up nonverbal cues that can predict a possible assault. They have a list of cues that they train to look for from offenders. Let’s look at a few of those and see if we can apply them to our lives and hopefully avoid being mugged in the mall. When we are getting that funny feeling in our gut that someone is thinking about harming us, we often want to dismiss it. Don’t! Here are some names to those queasy feelings swirling around in our tummy: We refer to them as Threat Assessments: Watch for these Pre-Attack Postures Hand set Shoulder shift 1000 yard stare Target Glance Boxer Stance Let’s look at each one and briefly break them down. Hand set. When someone raises their hands above their waist in a manner that seems out of the norm, or as my kids say, random. Take note. Shoulder shift. The act of twisting your upper body so as to place it with your shoulder towards you as as opposed to being more forward facing or squared off. 1000 yard stare. That creepy, “I’m looking through you” look. It could mean they are about to pounce and anything you say may be falling on deaf ears, much like when I ask for chores to be completed by my teens. Target glance. Police are sketchy if the person they are encountering glances at their holstered firearm. In training class I loved to mess with them and do this. They were quick to step back and express their concern. Same for us. If someone is about to strike us, unless they are highly trained, they will most likely give it away by glancing at said target....

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5 Simple Steps to Success

5 Simple Steps to Success

  I read a ton of articles, books, blogs, posts and quotes about how to be successful. It’s something most of us want in our lives. The interesting thing, though, is that being successful is different for everyone. For some, having their children grow up to be healthy, independent, contributing members of society is a huge success. For others, they need the big house, fancy car, perfect spouse and 2.5 children to feel like they have made it. Wherever you fall in that span, I have found that in my personal life as well as my professional life, these 5 steps always make me successful. I hope they help you too.   Think Positively It is all about mindset. Are you going to allow circumstances to control you or are you going rise above them and find the positive? It is a lot harder to get yourself out of a bad situation or to come up with solutions to a challenge if you have a negative attitude. I often share that most people believe that bad can come from thinking negatively (we all know those people who constantly say they have bad luck…they actually attract bad “luck” into their lives) so why don’t we also believe that good can come from thinking positively? When bad things do happen, you will find you can get through the tough times a lot easier if you try to have a positive attitude rather than dwelling on what’s wrong with the situation.   Take Care of Yourself We have heard it a million times. We have to eat right and exercise. But why is it so important? If we don’t take care of ourselves, we start slowing down. We will get sick more often (it’s hard to be successful if we are lying on the couch). We will be prone to obesity and disease – again, it’s hard to be successful if we are spending our time and money at the doctor and on medicines to mask the problem we probably could have solved by taking care of ourselves (oops, was that out loud?). I have read studies that say you should exercise first thing in the morning and then eat a nutritious breakfast. Perhaps it matters if you are trying to tweak your routine a bit to get that leg up you’ve been looking for. Overall, I think making sure it is a lifestyle choice is most important than when you do it. With all the conveniences we have in our world today, there really is very little excuse to not eat healthy foods and exercise regularly.   Read something I love to read. If I had my way, I wouldn’t even...

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