Who is Real Estate Investment For?
In this installment of Real Estate Investing for Professional Men and Women, my fellow real estate mastermind Devin Elder sits down to discuss real estate investment, raising funds through investing, and “prosperity through service”.
There’s a common misconception that the general public often holds about real estate investing, and that is that you have to be an expert to jump into the investment process. Devin and I are here to tell you that this couldn’t be further from the truth. Whether you’re a chiropractor, a teacher, a dentist, or a fireman, real estate investment has the power to enhance your life, build your wealth and change the way you think. Thanks for tuning in to this episode of the podcast, and we hope you find our guest’s expert information helpful as you start your journey toward real estate success.
Three Huge Tips for New Investments
It’s no secret that real estate has the incredible capacity to appreciate in value over time. However, poorly constructed properties with hodgepodge layouts make it more difficult to add value and increase the appeal of properties to tenants and investors. Devin shares in detail the story of a property that was reduced from 130 units to 106 through the combination of two units on top of each other, resulting in a less appealing and slightly haphazard investment. Through restructuring and reformatting, Devin converted the building into a property with more, smaller units with higher rent per square foot. This move paid significant dividends in terms of adding value to the property.
To further encourage investing and value appreciation, Devin’s team turned the now 130-unit property from an all bills paid to a market rent property, easing the financial burden on investors and shifting the cost of utilities to tenants with only a slight increase in rent on renewals. Cash flow and investor returns went up significantly, driving up equity while improving the property’s impact on the local community’s housing needs.
With a more attractive property comes more tenants seeking a place to live. Devin and I explore the importance of good properties and their potency in drawing good tenants. To demonstrate your pride in the high-quality property you’ve built and the services you’re providing, it is critical that customers are aware that bad tenants will not be tolerated.
The “Why” of Real Estate Investing
Investing in real estate is all about building relationships and prosperity through service. In essence, that means serving others and serving yourself. Establishing substantive partnerships can be a crucial step when advertising your properties isn’t an option. A base of supporters and clients ready to invest saves time, money, and headaches from SEC regulations.
Having solid partnerships is just one of the important foundations to safeguarding your investments against risk. Devin shares how he lost half of his retirement portfolio from the 2008 recession and how real estate investment has taught him to stress-test investments, utilize comfortable debt maturities, and encourage value appreciation to offset the possibility of damages from economic troubles.
Forming long-lasting partnerships and having risk management strategies isn’t the only necessary step, however. Before any of this, it’s highly beneficial to sit down and examine your “why”. Why do you want to invest? What do you hope to get out of it? What’s driving you? For many people, it’s wealth-building. For others, it’s generosity to the local community. Whatever it is, don’t be afraid to reflect on your goals, learn from the experts, and take the calculated risks you need to make your dreams a reality.