Recently, I had the pleasure of being interviewed by Joe Fairless, host of the nationally syndicated “Best Real Estate Advice Ever” show and podcast. We spoke about a range of topics, focusing on raising money for my various real estate businesses and the basics on syndicating apartment deals. Sticking to his fixed format, I was also able to share my best experiences and resources to the audience. To hear the interview, click on the following link: http://goo.gl/JHHgJl.
As I shared the story about getting my real estate business started in 2010, I made sure to let the audience know that the most important advice for beginners is to just take action, even if you are not certain all your goals or objectives. Reading books and pursuing my real estate license were the first steps I took, even though I was not sure at the time exactly how or where I was going to invest. The experience taught me that the right people and resources will be met along the way if you are making forward progress each day.
As the conversation shifts to my fix and flip business, we speak about how I use “other people’s money” to finance that aspect of my business, freeing up money to invest in buy/hold real estate for passive income. Structuring deals with hard money and private money has a substantial cost, so it is imperative to find good deals with adequate margin. With the right financial resources (and a little experience), a fix/flip business can be run with a relatively small amount of capital. I walk Joe thru a typical deal structure.
On to my “best real estate advice ever”, which is the following: To be successful in any RE investing, you should always be honing your marketing skills to find great deals. The old adage that “you make your money when you buy” is still true today, so having the marketing skills to find great deals is imperative. Great marketing requires consistency, persistence and good follow-up. Being organized with your marketing will help keep you on track.
Investing in apartments is also a major topic we discuss. In this conversation, I talk about how we bring investors together to share in the rewards of owning large apartment communities. By raising money from a group of investors, we are able to scale a multi-family business that would otherwise not be possible for most small investors. I share the basic structure of how a deal is put together and how all the people involved share in the profitability of the project.
True to sticking with his podcast format, we next hit the “lightning round”, where I share my “best ever” experiences and resources. I love the format Joe uses, because it is succinct and brings out the golden nuggets from each interviewees’ experience in the business. I hope you get a chance to listen to my interview and take advantage of the other 120+ interviews Joe has done on the show. You can download any of Joe’s podcasts by visiting iTunes at: http://goo.gl/HnvRbx