The Recipe for Building a Legacy
Those of you who have been following us for a while and especially those of you who have read our eBook, The Stock Market Refugee, know we are passionate about helping you grow both your short term income and long term wealth. We employ what we call our 2-step system to create financial freedom and multi generational wealth.
Step 1 or option 1 is short term, high yield investments collateralized with real property to grow your current income or retirement quickly.
Step 2 or option 2 is growing your long term wealth and creating true financial freedom by investing in great Cash Flow properties with real Turn-Key convenience and ability to scale!
Option 2 is what this short series of articles will be focusing on. You will learn exactly how to successfully build income and wealth in Real Estate that not only provides you with an amazing lifestyle and tax advantages but that also has the potential to secure your family for generations to come.
Let’s get started!
Cooking up a winning real estate investment portfolio starts with selecting great markets. It is the broth your neighborhoods, property and team all oat in. And while it’s certainly possible to succeed in lesser markets, it’s definitely a LOT easier…and more fun…to start with a winning market.
My goal in these next few pages is to share my personal recipe for picking a winning market. This is the distillation of the many lessons I learned the hard way, through over 1,000 properties, across multiple markets. I’ll do my best to keep the blood, sweat and tears from splattering all over the pages! The Main Ingredients
Every great recipe starts with great main ingredients. Here are some that I’ve found ESSENTIAL to success.
Unless you’re Superman (or Wonder Woman), you’re going to need help to build and manage a winning real estate portfolio…even if you’re local. And if you’re a long distance landlord, your team is even MORE important.
It’s tempting to buy the property rst, then go look for a team. But that’s a mistake.
Now contrary to popular myth, there is an “I” in team. It stands for Income from your Investment. And your team is the key.
Start with a GREAT team
Your team will help you:
• Buy in the right neighborhood
• Buy at the right price
• Avoid buying a “money pit”
• Quality rehab done on time & on budget
• Be compliant with local ordinances
(city certifications, landlord law, etc.)
• Find and keep great tenants
• Maintain the property
Even though you’ll need a lot of different players on your team, it’s not as hard as it sounds. Often just one or two great team members can connect you to everyone else you’ll need.
Keep in mind that a GREAT team can make a good market great for you. Conversely, a weak team can make a great market a terrible experience.
Overall Cost of Living
The rent you collect from your tenant is only one part of the tenant’s cost of living. If everything else
is very expensive relative to wages, it makes it harder for your tenant to make ends meet… including paying you.
So it’s a smart move to pick markets where working class people have affordable energy, healthcare, taxes, groceries and entertainment.
It’s also smart to pick market where the cost of housing makes sense for both you AND your tenants.
For your tenants, housing shouldn’t take up much more than 30% of their gross income.
Also, a great area doesn’t just give your tenants a good COST of living; it also provides a good QUALITY of living. So consider things like shop- ping, entertainment, safety, schools, etc.
Quality tenants will be attracted to quality areas they can afford.
Be on the look out for part 2 in this series where I will discuss the importance of having the right Value or “Net Positive Value,” age of properties & cost per square foot and market soft costs.
Talk to you soon!
Ivan Oberon is a seasoned Real Estate Investor, Certied Speaker, Trainer & Coach, Award winning Radio Show host, Author (the Stock Market Refugee) and family man. Ivan has been involved in over 300 transactions throughout the U.S. and works with very successful turn-key property operators in Kansas City, Missouri and the greater Dallas Texas and surrounding markets.
To this day, 100% of his transactions have been completed with private investor funds making him extremely experienced at working with private money. [bookIVAN.com]