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Passive Income in Real Estate with Kathy Fetke - CREPN #227

Commercial Real Estate Pro Network

Release Date: 12/19/2019

Automate Capital Raising for Commercial Real Estate with Jake Marmulstein - CREPN #267  show art Automate Capital Raising for Commercial Real Estate with Jake Marmulstein - CREPN #267

Commercial Real Estate Pro Network

Today my guest is Jake Marmulstein. Before grant before founding his company Groundbreaker, Jake held a number of roles involving real estate and technology, supporting the growth of early stage digital technology ventures, while working with the government on foreign direct investment by Fortune 500 companies.

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Commercial Real Estate Pro Network

So Darrin, the BIGGEST RISK for Groundbreaker in as I as I look at our business, and what we're doing is really managing expectations with people. Software is a living, breathing thing. And it is very challenging for people to evaluate. who aren't typically Software buyers and a lot of people in real estate aren't. So our job is to be good stewards of the, you know, good stewards to other people.

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Attract & Connect With Commercial Real Estate Investors on Linkedin with Yakov Smart - CREPN #266 show art Attract & Connect With Commercial Real Estate Investors on Linkedin with Yakov Smart - CREPN #266

Commercial Real Estate Pro Network

Today my guest is Yakov Smart. Yakov is considered to be the leading expert when it comes to attracting A  list investors and raising capital using LinkedIn.  He is the author of Disrupting LinkedIn and a sought after authority by top business owners and sales leaders worldwide. Yakov has shared the stage with Samantha DeBianchi of Bravo's hit TV show Million Dollar Listing.

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Commercial Real Estate Pro Network

It's a great question. It's not something that I you know, honestly think about on a daily basis. I guess I'm you're a little more. You know, you see, you see A lot more different scenarios as being an insurance than I probably do when it comes to risk. But I'm gonna I'm gonna give a bit of what might be a bit of a surprising answer here. I think the BIGGEST RISK is a combination of plagiarism and misinformation because in the space, let's call it mentorship or online programs or coaching, consulting.

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Commercial Real Estate Investing With a Self Directed IRA with Jason DeBono - CREPN #265 show art Commercial Real Estate Investing With a Self Directed IRA with Jason DeBono - CREPN #265

Commercial Real Estate Pro Network

Today, my guest is Jason De Bono. Jason is the NuView Trust Company, Vice President and in a little bit he's going to share with us the benefits of using a self directed IRA.

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BIGGEST RISK with Jason DeBono show art BIGGEST RISK with Jason DeBono

Commercial Real Estate Pro Network

I think the BIGGEST RISK for a self directed account is that you take responsibility for all the investments, and it's a risk of personal accountability, right? If you keep your IRA in the stock market, one really nice benefit is that when it goes up and goes down, you know, you can kind of finger point your way around around it. Risking in a self directed account means you're taking on all the risk.

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Cash Flowing Short Term Rentals with Jon Bell _ CREPN #264 show art Cash Flowing Short Term Rentals with Jon Bell _ CREPN #264

Commercial Real Estate Pro Network

Today, my guest is Jon Bell. Jon is an IT professional turned real estate investor. He's a he specializes in vacation rentals, and today we're going to speak with him about Airbnb. He's also got a podcast he hosts the podcast Vacation Rental Machine Podcast. And he's also the co founder of the Vacation Rental Machine Formula an online training.

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Commercial Real Estate Pro Network

I'll answer it and maybe the most common risk that people assume when they think of short term rentals or specifically Airbnb s and that is major parties. People messing up your your place. With my experience, it's not the major risk, it is something you can hedge off. And this is how you do it. 

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Forever Cash Through Real Estate with Michelle Bosch - CREPN #263 show art Forever Cash Through Real Estate with Michelle Bosch - CREPN #263

Commercial Real Estate Pro Network

Today, my guest is Michelle Bosh. She and her husband are real estate investors, entrepreneurs. They have multiple businesses and they have taken businesses multiple businesses they've built from scratch to seven and eight figure income revenue streams. And their business platforms include land auctions, rental portfolios, they've all authored a an Amazon number one bestseller called Forever Cash. And also, they host together the podcast Forever Cash. And Michelle also hosts the podcast In Flow.

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BIGGEST RISK with Michelle Bosch show art BIGGEST RISK with Michelle Bosch

Commercial Real Estate Pro Network

You know, the BIGGEST RISK that we have right now is that for the percentage of the tenant base that is unemployed, or that has lost their job because it is worked for housing, we buy c properties and B neighborhoods you know, that that if they've lost their job and unemployment you know, kept gets cut down, that they might not be able to To make their rent payments, so though, that's a big risk right there.

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More Episodes

Passive 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.

For more go to:

https://www.realwealthnetwork.com/