3 Keys to Real Estate: Scale, Value and Risk
Learn how to penetrate new real estate markets
Ike Mutabanna is a real estate entrepreneur and the president of Dallas, Texas based IHM Business Group. Ike also hosts the successful podcast, “The Side Business Show,” where listeners learn how to grow their wealth through running a wide variety of side businesses.
Over the last 15 years Ike has spent time as co-founder, president and CTO in a variety of startups and turnaround companies. He’s originally from India where he attended the University of Bombay, India and earned his BE degree. Ike also has a MS degree in Engineering from the University of Cincinnati.
Ike is an active commercial real estate investor and multifamily syndicator. In his downtime you will find Ike pursuing his newfound passion for mountain climbing, having recently started training for technical climbs on rock cliffs.
The 3X advantages of syndication versus single-family investment:
1) Risk diversification is much better in a ten-unit apartment building versus three single-family houses.
2) Economies of scale is better in terms of net income. The more net income allows you to hire property managers, allowing you to focus your time and energy on further investments.
3) Value appreciation – you have the ability to force appreciation with creative strategies to increase rent and overall income and push the value of your properties.
Five key points:
- 1) When investing in state you have the definite advantages of knowing your local market and the ability to study that market in depth, without needing to rely on other people to relay information. You can easily build networks by attending meetups and creating partnerships.
- 2) When investing out of state it is essential to take the time to build a trusted and solid team before proceeding with investments.
- 3) Take advantage of your opportunities when you are investing in state: visit neighborhoods personally, study the local markets, take detailed notes and photos of different neighborhoods and create a thorough database which you can easily refer to when looking into new investment opportunities.
- 4) Multifamily syndication provides the opportunity for much larger scale where investors can achieve larger returns on their investment
- 5) It is important to find an activity outside of your business that inspires you and that will assist in training your mind and help you maintain an energetic and motivated state. You then transfer that energy back into your business.
Favorite athlete: Sunil “Sunny” Gavaskar – Famous Indian cricket player.
Learn about the game of cricket here: https://en.wikipedia.org/wiki/Cricket
Favorite books:
- How to Win Friends and Influence People by Dale Carnegie
- The Alchemist by Paulo Coelho
Favorite quote: “When you want something really, really bad and you take the action to achieve it, the universe comes together to help you achieve it.” The Alchemist – Paulo Coelho.
Check out The Side Business Show podcasts and contact Ike here: www.thesidebusinessshow.com
or podcast: thesidebusiness.show
Thank you Ike for taking the time to share your story and business insight with us.
Tune into Ike's interview on iTunes, Stitcher or Google Play.
Invest well,
John Carney
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