Let's Start with a Foundation

The Preface

I'm not going to take a lot of time to talk about my background,, but I think it's important to disclose my experience this one time in order establish some level of expertise. My name is Josh Weidman and I've been a full time real estate investor in Philadelphia, Pennsylvania since December 2006. Over the past 8 years I've built a thriving wholesale business, a +600 unit property management company and now a turn key investment company. During my short career I've been involved in more than 1000 transaction. I've wholesaled properties, rehabbed houses, bought and held rentals and done a little bit of everything in between.

I'm writing this blog for two reasons. When I got into real estate investing, I was sold a false bill of goods. I learned that rental properties were great passive cash-flow investments. The first goal of this blog is to prevent new investors from falling into the same "easy money" trap that I did. My second motivation is to attract people to invest with me (There, I said it!) I want to help other people invest with knowledge and I want to attract new investors.

This blog with be a combination of text contributions and video. I'll share my resources and throw in some training-type info and plenty of advise when I can. The objective will be to help readers succeed by growing a profitable portfolio that builds wealth, provides cash flow and behaves like an investment rather than a second job.

The Foundation

The foundation of my investment philosophy is based on 3 streams of income - short term, mid term and long term. 

Wholesaling provides short term income. It's a job that pays the bills and provides access to a ton of opportunity. This is a great place to start whether you have working capital or you are investing your time. Wholesaling properties will help you become an expert in the local market. Good wholesalers are good hustlers. It's a job, so don't get stuck here.

Fix and flips for mid term income. They provide cash infusions into your overall business that expand opportunity. The rehab phase can be an expensive learning curve. Go slow with the first deal. Make a plan and stick to it. Ultimately, rehabbing property is also a job, just like wholesaling. 

Rentals are long term investments. I recommend an exit timeline of no less than 5 years. Most gurus preach rental property as the way to quit your job. I like rentals as little piggy banks. Buy them right. Rehab them well. Leverage the investment cautiously. Put aside a reserve. Then sink every dollar of income into paying off the principal. In 10 years you'll have a free and clear property. It's a piggy bank of wealth filled with someone else's money.

The Application

Most investors buy rentals the wrong way. They pay too much. They skimp on renovations. They poorly screen tenants. Then they spend their nights and weekends doing repairs. If you want a second job, there are plenty that pay better than being a bad landlord.

In following posts I'll talk about how to maximize your rental returns while keeping you commitment of time and energy low. That way we can all become the lazy (and successful) landlords we strive to be.