• Real estate can lead to early retirement, but it’s not passive income. You have to work for it.
  • Among other investments, rentals allow you to do this for less cash compared to stocks/investments
  • Demand will never end
  • Reasons this works: appreciation, cash flow, tax saving, and loan paydown
  • Ensure investment makes you money from the beginning. “Price is what you pay. Value is what you get” – Warren Buffet
  • RIsk is powerful but dangerous. Educational foundation before getting too deep. Don’t skimp the math. Bad math = bad investment
  • Success is an action
  • Surround yourself with success
  • Being a good investor means being able to walk away from 80% of your deals. Don’t find good deals; find great deals.
  • Finding a contractor is always the #1 difficulty. Have a few. Go to home depot at 6am and find the contractors there. These are the ones you want to work with.
  • The best time to find a job is when you don’t need one…
  • Gauge Prices : https://www.padmapper.com
  • Multi-family causes more headaches
  • Location matters. Even great deals in poor locations can go wrong fast.
  • MLS is comprised of 100s of list. Only realtors have access to everything. Use automated alerts.
  • Use craiglist for sale by owner
  • Look for houses with easy fixes: smell, hidden 3rd bedroom, ugly countertop and cabinets, roof, and even mold
    • AVOID: Problems with neighborhood, foundation and shared driveways
  • Negotiation is being calm and adjusting
  • The underwrite is the main decision maker. We can be creative. Convince the front-end sales guy. He can convert the underwriter.
  • An LLC will not prevent you from being sued. You can still lose everything. Good insurance can also be what you need.
  • No one cares like you do. Remember that when using property managers.
  • Strength comes from adversity. Know that with rentals. You’re going to learn a lot.
  • As a tentanat
    • Change filters in heater, etc.
    • Remove lint from dryer
    • Flush water heater
    • Caulk
    • Fertilize lawn
  • Easiest way to punish tenants is through fees. Do this or they will take advantage. Nice guys get screwed time and time again.
  • If the Tenant broke something, that’s their problem. If it’s caused by normal wear and tear, that’s your problem.
  • Keep dogs/pets to a minimum. 20 pound or minimum at the very max. If multi-family, no pets at all.
  • Build a good system. If you’re continually stressed or upset, dont’ get mad. Just realize your system is broken. There are ways to fix this (e.g. hire people, create a backlog of contractors, etc.)
  • Know the benefits of the 1031 Exchange when looking to trade up. You have to be quick… 45 days quick to be in contract with a new investment by the close date.
  • Always put your rental rate to be competitive or higher. Do not attract bad tenants with below market rent.
  • Strength comes from adversity – Remember rentals are hard.
    • Trees grow stronger in wind and when they have to strive to get to sunlight
  • Some people want it to happen, some wish it would happen, others make it happen.
  • Pay it forward. Give 10% of your paycheck or educate those around you. A lot of people gave up a lot for your current success. Let’s be thankful!