Real Estate can be a crazy world but it's also
very exciting and the opportunities that exist within it can't be found in any other industry. Stock market cycles can change very quickly while real estate cycles move slowly and predictably over the course of years. If you apply the right strategies at the right times, you can do very well.
Even if you don't have a deep bank account, you may have an old 401(k) or IRA from a previous employer that can be used by moving the money to a self-directed IRA. It's possible to use life insurance equity in some cases too. You might have more ability to invest than you think, let's connect and chat about the possibilities.
That being said, we're working on some projects now and we invite you to join us. Here are the strategies we're focused on:
1) Single Family Homes
- Fix & Flips - In this scenario we're finding off market houses that are in bad shape and the sellers would rather just sell them for a discount than go through the hassle of repairs and listing on the MLS. Investor partners help us purchase the property with cash and/or credit for a loan. I will manage the whole renovation project and the budget so a partner could be completely passive or as involved as they'd like to be. Based on our mutual goals and contributions, we'll determine a fair profit split and make it a win-win.
2) Apartments (aka Multi-Family)
- Return Focus - We will purchase properties from small 4 four-plexes up to large 100+ unit complexes by forming what's called a syndication, or pool of investors. Properties will need to meet specific criteria and be in metro areas of growing populations and economies (anywhere in the country). There are a lot of advantages to apartment investing especially the ability to force appreciation. Single family homes are valued based on comparable sales while apartments are valued based on the income they produce. So buying a run down, underperforming complex and then fixing it up and improving the amenities and systems causes it to generate more income and thus significantly improve its value. When dealing with properties valued in the millions, even a small percentage improvement can lead to a major gain in the bottom line. In most cases, we will hold an apartment investment long-term (at least five years) as the goal is strong cash flow and thus return to investors.
- Return + Ministry - This is the most unique strategy and the returns are more than just financial. We would structure the deal so all investors receive a competitive return on their money but the project is specifically designed to fill a need for a local outreach ministry. I have many friends in local ministry serving populations like aged-out foster youth, prison re-entry, refugees, recovery, transitional housing, inner city intervention, etc.
An example I'm working on now is with an inner city ministry who wants to have a transitional home for their clients who need a safe place to stay for a short time while they get their life stabilized and back on track. We could purchase a 20-unit apartment complex and rent out 19 of the units to regular tenants which would provide the investors the return they need. The 20th unit would then be available for the ministry to use as their transition house and they wouldn't have to pay rent because the other 19 units are covering it. Each ministry has different needs and the real estate solutions could get creative but they would always serve two purposes: 1) Provide investors competitive return, 2) Provide an affordable/free solution to a specific need of a local ministry.
If you've always wanted to make money in real estate or if it's all over your head but you're curious, let's get together and chat about possibilities.