Passive Income in Real Estate with Kathy Fetke - CREPN #227
Commercial Real Estate Pro Network
Release Date: 12/19/2019
Real Estate Investment Strategy for Retirement with Zach Lemaster - CRE PN #458
Commercial Real Estate Pro Network
J Darrin Gross and Zach Lemaster discussed a turnkey investment strategy for single-family and small multi-family properties in the southeast US, highlighting low acquisition costs and potential for cash flow. J Darrin Gross and Zach Lemaster then explored strategies for creating a retirement income through real estate investing, including leveraging depreciation and creative financing options. They emphasized the importance of reverse engineering the investment strategy and maximizing real estate investments through 1031 exchanges and tax advantages.
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BIGGEST RISK with Zach Lemaster
Commercial Real Estate Pro Network
J Darrin Gross I'd like to ask you Zach Lemaster, what is the BIGGEST RISK? Zach LeMaster Oh, man, we're gonna get deep here for a sec. Darrin, I'm gonna get on my soapbox. But the biggest i and this is investing in general, buy, I truly feel this isn't this cliche, I truly feel that the biggest risk is doing nothing with your money, and not not paying attention to it. Because if you want to live the same life you're living now later in life than that, that's what you can do, right and one, one event could wipe you out one event and a health event, a loss in your job change in the...
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Tax Benefit Commercial Real Estate Investing in Opportunity Zones with Ashley Tison - CRE PN #457
Commercial Real Estate Pro Network
Today, my guest is Ashley Tison. Ashley is an attorney, professional speaker and a founder of OZ Pros, a full service opportunity zone advisory firm. And in just a minute we're going to speak with Ashley Tison about Opportunity Zones for real estate tax mitigation.
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BIGGEST RISK with Ashley Tison
Commercial Real Estate Pro Network
J Darrin Gross I'd like to ask you, Ashley Tison, what is the BIGGEST RISK? Ashley Tison Well, in the context of what we do, the BIGGEST RISK is audit. Right? So inside of Opportunity Zones, right, that's the, that's the thing that would unwind your deal. So all of these plans that you've made, if you can't survive an audit, then you're going to do it all for naught. And so in stepping into that, there's a number of ways that you do you try to avoid the risk, you try to mitigate it. And then you know, ultimately, we're, we're actually and we need to talk with you about this, we're...
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Commercial Real Estate Owners Operations Challenges with Rob Finlay - CRE PN #456
Commercial Real Estate Pro Network
Today, my guest is Rob Finlay. Rob Finlay is a certified property manager and is a commercial real estate expert with a broad portfolio of success stories developed through hands on work and multigenerational industry experience with decades of experience in every facet of care from analytics to acquisitions, operations, to finance and more. Rob's insights are derived from real world wins and cutting edge industry innovation. And in just a minute, we're gonna speak with Rob Finlay about strategy changes needed for commercial real estate owners and asset managers in the shifting markets.
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BIGGEST RISK with Rob Finlay
Commercial Real Estate Pro Network
J Darrin Gross: I'd like to ask you, Rob Finlay, what is the BIGGEST RISK? Rob Finlay: So not sure if there's one specific one and just so you know, hopefully, I I can give you one right now, that is top of mind for me, right? Because insurances. Property Insurance is property insurance that has been spoken about and and fortunately, we have people like you that help us, real estate owners get through that through that mess. The one thing that that property insurance people aren't going to help us with is what I see as this great risk is compliance and corporate risk. There is this...
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Multifamily Marketplace Data Prices and Distress with Neal Bawa - CRE PN #455
Commercial Real Estate Pro Network
Today my guest is Neal Bawa. Neal is the founder of Grow Capitis an online multifamily investor education platform, experienced syndicator, developer and his attention to the data has earned him the moniker "The Mad Scientist of Multifamily". And in just a minute, we're going to speak with Neal Bawa about the Upcoming Multifamily Distress in the Marketplace.
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BIGGEST RISK with Neal Bawa
Commercial Real Estate Pro Network
J Darrin Gross I'd like to ask you, Neal Bawa, what is the BIGGST RISK? Neal Bawa So I'll give you two risks that affect insurance prices, and all other forms of prices in the United States. So one is a bigger, sort of more, you know, overarching risk. The second one is, is well known to us this. So the first one is climate change, we are continuing to see devastating impacts of climate change in many markets. It is a political, you know, issue where, you know, half of America doesn't want to acknowledge what is happening in markets like Florida and Texas and many other markets, like...
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Innovative Flood Insurance Solutions with DJ McClure - CRE PN #454
Commercial Real Estate Pro Network
Today, my guest is DJ McClure. DJ McClure is the VP of sales and business development at National Flood Experts driving strategic growth through partnerships and tailored cost saving solutions. And in just a minute, we're going to speak with DJ McClure about innovative flood insurance solutions.
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BIGGEST RISK with DJ McClure
Commercial Real Estate Pro Network
J Darrin Gross: I'd like to ask you, DJ McClure. What is the BIGGEST RISK? DJ McClure: I think right now, one of the BIGGEST RISK that I see among many is the number of properties that are, you know, approaching a debt restructure, you know, there's a lot of short term bridge that for a lot of properties that's coming due. And so one or two things are going to happen, obviously, they're going to be able to, if they're able to put together the funds to structure a refinance, you know, it's likely going to be into a different loan structure or excuse me a loan program, predominantly, your...
info_outlinePassive income through real estate is an attractive option for investors with a good job, or would rather rely on an experienced operator rather than take on the risk of investing on their own.
Kathy Fetke, Co-Founder of Real Wealth Network, and returning guest to CREPN Radio identifies the risk investors face when investing passively. Real Wealth Network works to educate investors on the investment options available so they can prepare for a secure financial future. In this episode, Kathy explains the steps you can take to protect investment to minimize your risk when investing.
Passive Income
Passive Income Opportunities in Real Estate can be very lucrative. Ideally, passive income is truly passive that does not require you the need to tend to the day to day operational concerns. Instead, you place your investment with a deal sponsor, then receive handsome monthly or quarterly returns.
In addition to the positive cash flow, you receive the multiple benefits real estate provides. These include, depreciation, appreciation, and principal reduction. Together, these benefits combined with positive cash flow make real estate a tough investment to beat.
Sponsor Due Diligence
Sponsor due diligence is critical to save guarding your investment. The recent recovery from the 2008 market crash has provided handsome returns for anyone who invested post crash. Some deal sponsors have only experienced the upside of this recent market. If your only experience is from a once in a lifetime market, where everything increased in value, it’s doubtful you have a true understanding of the risk posed by real estate.
Unfortunately, the recent profits that have been made in real estate have attracted interest, and some less that stand up characters who appeal to the unwise potential passive investor. The digital, social media world makes it easy for anyone to market themselves as an expert.
Real Wealth Network performs background screens on all of the deal sponsors they invest with. Ideally, the sponsor or a member of the team will have more than 10 years experience, and has survived multiple market cycles.
Market Due Diligence
Market due diligence is critical to safeguard your investment. It is easy to isolate any property and identify its upside. However, if you do not understand the market the property is located in, you can easily lose your investment principal or be stuck with a property that has no possibility to sell.
The real estate market is not singular. Real estate is local. It requires that you understand the local state of jobs, population growth, and the supply of housing. Is the housing affordability in the area?
What is the local government’s attitude towards development and landlord laws. Your understanding of the local market is fundamental to your success.
Market Cycle
The current market cycle has little room for error. Prices are up, interest rates are down, and affordability is stretched in most primary and secondary markets. This is a very different market than the last ten years where the market has risen from historic lows.
Given this change, Kathy and her team have moved into single family starter home development. Interest rates are low, and qualified buyers can get affordable rates. The demand for first time home buyer homes is significantly greater than the supply. This is a great opportunity to invest with a developer for handsome returns.
BIGGEST RISK
Each week I ask my guest, “What is the Biggest Risk Real Estate Investors face?”
BIGGEST RISK:
Darrin: Kathy Fetke, What is the BIGGEST RISK?
Kathy: There are so many, but I would say the BIGGEST RISK is not being educated, which is why it is my mission to help people. Like I said at the beginning, the show to raise the wealth consciousness of the average person and definitely of the average investor because there are so many landmines. Whether you're investing in the stock market or in real estate or in Bitcoin or whatever you're investing in. You've got to really take a deep dive and understand it. We've been sort of trained over the years to not really understand it, but hopefully our financial planner understands it and we hand over our money and hope they do well with it. So we haven't really been taught that it was important for us to understand it. We don't we're not educated and in high school and probably not in college for most people.
So first and foremost, the biggest risk is not understanding what you're investing in. From there, I would say what I'm seeing is a lot of gurus. We're at that stage in the market where people have maybe done fairly well, then maybe they did one deal and it went well because we've been in the market and now they are a guru. I've seen this. They can very easily start a podcast or it's so easy to become sort of a well-known person. Thanks to all social media and the Internet and so forth. So these people now don't have a lot of experience, but they've kind of become this guru, so to speak.
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