Real estate investment has long been hailed as a powerful wealth-building strategy, but not everyone has the time or expertise to actively engage in property flipping, BRRRR (Buy, Rehab, Rent, Refinance, Repeat), or other hands-on strategies. For those seeking a more hands-off approach to real estate, passive investment through syndication emerges as a compelling alternative, offering unique benefits that set it apart from other investment methods.
We were excited to have recently closed on a 20 Unit apartment building in Davenport, Iowa, through a syndication strategy. It brought together people we already knew and had a great relationship with. Friends, family, and also real estate agents on our team - working together and investing together to achieve a common goal. But why would someone utilize this strategy? Here are 6 top reasons:
While strategies like flipping and BRRRR can yield substantial returns, they often demand significant...
Why should I consider investing in real estate? It can seems overwhelming and confusing, which leads many people to not consider the huge benefits it can have over other investment opportunities.
With stocks, they go up or down and you may receive some dividends. Investing in precious metals? You either sell high or low. Real estate? There are many different levers you can pull to grow your wealth. All of them can work in your favor. Some are bigger and some are smaller. However, added up, they have a much more compound effect that can make a significant difference in the returns you're going to get on this asset. So what are the top reasons?
1) Rental Income: Each month, your tenants or guests are going to pay you money to stay in your property. Ideally that income coming in is much more than what you need to cover your expenses each month (if you're buying correctly with an emphasis on cash-flowing properties).
2) Mortgage Pay Down: One of your expenses each...
How do you know if you have a good investment deal? Knowing your numbers is a great place to start! Don't let uncertainty of not knowing how to analyze a real estate investment deal keep you from getting started on your investment journey.
When I work with clients, I often tell them, "I'm incentivized to do a good job for you to pick a great property, because if you're going to make money on this property, it's going to help you to buy more." However, analysis paralysis is real, so we have to find a way to quickly and efficiently look at a deal and decide if it's worth spending more time, or moving onto the next deal.
Too many times investors are sitting back and waiting for the "homerun" deal. The deal of a lifetime. Yet if you're looking to build a portfolio of many properties, you need to have some singles, doubles, and triples in your portfolio too! Waiting to only move on that homerun is going to set you back from getting started, learning...
"I don't have a lot of cash on hand, so therefore, I don't think that I can invest in real estate." We hear that objection all of the time when talking with people about investing in real estate. Stop for a minute....pause...and allow your mind to expand and think bigger.
You deserve so much more in your life, and if you let this phrase stop you from unlocking future wealth and freedom, you're limiting your potential.
Top real estate investors aren't any smarter than where you are at today. They've simply taken time to take the puzzle pieces and begin putting the puzzle together.
Funding and financing is a big part of the process, but you may find out you have more options at your disposal to start than you think. Here are a few sources to consider to begin putting your resources together:
Cash On Hand
The reality is that very few deals actually come down to cash on hand that you have sitting in a bank ready to go, but it's obviously one of the options on the table....
When you're investing in real estate, it's really hard to get started. There's so many options of things that you can invest in. This is why you want to have a BUY BOX.
A buy box is a set of criteria that you're looking at to help you determine if a property is a fit. If you don't have an established buy box, you'll leave yourself analyzing every possible deal at any price point, with any type of investing strategy. Taking this approach will give you "analysis paralysis", and will probably leave you on the sidelines not investing in anything. You want to move forward with the right properties.
What makes up your real estate investing buy box?
1) Type of property: Is this going to be a single-family home? Multi-family home? Mobile home park? Tiny House? Start thinking about the specific types of properties that you want to invest in. You can set up a search through the MLS via a real estate agent, or there are lots of other websites out there where you...
We've worked with a lot of real estate investors, and have conversations with a lot of people that want to be real estate investors. So what's stopping them? Here are 3 of the main barriers we see.
1) People Don't See The Benefit To Pursue It NOW: The key word here is NOW. Logically people understand the benefit of investing in real estate, except you're playing the long game. There is delayed gratification involved. Getting a property today vs a year from now it's going to fundamentally change their financial situation NOW. So they put it off, put it off some more, and some more. Soon you're a couple of years down the road and you're no closer to your real estate investing goals.
This is why it's important to have a sense of urgency with regards to your real estate investing. While you may not see a ton of cashflow today, you have to get the clock started. Assume a property purchased at $250,000 appreciates 7% in a year. In one year time, that property has appreciated by...
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