Aug 23, 2022
What's Your Real Estate Investor Identity? Fix n Flip? Landlord? w/ AZREIA - BRT S03 EP40 (139) 8-21-2022
Things We Learned This Week
- AZREIA is a Real Estate Association to learn, network, find support & contractors
- What is Your Investor Identity? Fix & Flip, Landlord, Lender
- Types of Properties - Single Family (house), Small Multifamily (Duplex or Apt), Look for 'Problems, not Properties' to find deals
- Long term Mindset, ‘It’s a Business’ – takes time (& time is on your side in Real Estate) & capital to build up an investor portfolio, learn the biz, & make contacts, ‘Buy Right’ – Make $ on the Buy
- Team – Need Contacts in the industry to help: Property Mgr, Accountant, Attorney, Title Contact, Appraiser, Inspector, Insurance, Real Estate Agent
Guest: Michael DelPrete, Executive Director, AZREIA
The mission of AZREIA is to provide its members the education, market information, support, and networking opportunities that will further the member’s ability to successfully invest in Real Estate
Notes:
Mike Del Prete has been a member of AZRERA for 12 years and has been running it for 1 year it’s been teaching for 5 years need to have a team like contractors lenders realtors
Trade Association for profit
Average member owns small multifamily 2 to 10 units like duplex stripes Four-Plex or single-family small homes average homes above
five units is commercial based on doors under a roof
classic example is you are on a four Plex live in one and rent the other three
determine your investor identity which strategy works for you
do you like short term deals fix and flip average 25 to 45K takes four months purchase the property with the plan to exit at need capital
examples of lenders are hard money loans aggressive short-term loan with high interest rate 10 to 12% currently in the real estate market as of summer 2022 is down hard money loan you put 20% down on a deal and they loan 80% interest only for six months to one year term for a collateral they have first lien position on the property
initial investors made on one property be the landlord and manage it himself over the long term
you want to have a property manager AZREI A is for investors so hopefully not managing yourself or fixing up a property yourself recruit a team
property manager they get 7 to 10% of gross monthly rent
need attorneys to do contracts title accountants lenders for capital real estate agents wholesalers these are the investors who run ads I pay cash for houses they find deals at a discount other team members insurance for PNC and contractors to fix up at home
when you start in real estate you want to form an LLC to protect yourself and liability use the LLC then buy the home you don’t want to personally on it because you can be sued
Own a Four-Plex live in one for a year rent the other three can go to a traditional bank for a loan buy property at 3 1/2% down leverage of Four-Plex with an FHA loan
you have to know math to invest
you have to do your due diligence to be an investor
AZ are eia.org website with info classes and glossary
Talk with an accountant when investing need to know the tax ramifications understand
interest rates of 3 to 5%
capital gains
write offs on upkeep and expenses
refinance take cash out, how do you get money from an asset you borrow it no taxes get your original capital returned now your renters are paying the mortgage, you earn cash flow, infinite returns banks will loan 60 to 80% on a house when you refinance if you have equity you have to get an appraisal
Leverage put in less effort but get more results
depreciation you depreciate a house for 27 1/2 years if you sell the house you deal with depreciation recapture
Use deferred sales trust when you sell a property sell the property to the trust than the trust sells the property and then you get payments over 10 years so you don’t have to pay the capital gains all in one lump sum and you can use this for any type of asset, or a business, or investments
1031 exchange you can defer capital gains on a sale you sell a property, but then go and buy another property, roll the money over in a like kind exchange so the houses have to have to be a similar amount
Cap rate on a real estate property to determine your ROI cash on cash return
personal property is different when you sell that because you have a state exemption and less chance of capital gains
real estate forums and other avenues for networking
Easy REI AA meets second Monday of the month is their major meeting 2 to 300 people typically add 8600 venue in Scottsdale, check their calendar, October they have a real estate panel in November extended-stay and change use of property for rental type properties or AirBnB
Membership is 100 a year for casual member or 239 a year for an oil and remember
Goal is to get out of the rat race
Own mobile multiple properties have more streams of income and cash flow and be a long-term real estate investor
long-term time is on your side and real estate
time heels real estate
Buy right you make money on the buy
keep under 80% ??
They teach a launchpad program create investor identity create real estate plan
It’s a business and there’s risk
Tax lien foreclosure Title inspection home expectation could look at five properties and zero could be acceptable
Look for problems not properties,
find discounted deal, an example as water damage, or foreclosure, could be an air inherited house and they live out of state and they just want to sell it fast, these are off market deals
New houses are listed on MLS
People look for certainty and stability
Forecast deal, bargains are in the deals with issues
Real Estate Topic:
https://brt-show.libsyn.com/category/Real+Estate-Construction-Land-Farming
Investing Topic: https://brt-show.libsyn.com/category/investing
More - BRT Best of: https://brt-show.libsyn.com/category/Best+Of
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