All Forum Posts by: Dan Zitofsky

I have done tons for the past 7 years in cleveland building my portfolio and helping investors build theirs. I don’t do as much there now but still have a few rentals in our portfolio and tons of seller financed deals. I’d be happy to help any way I can. Let me know what you need assistance with. Wish you all the best. 

Dan 

I have to disagree. I’ve been at this a very long time. Owned multis, singles, land, etc. if done correctly you have tons more exit strategies for long term wealth with singles. Once you learn long term vision with seller financing, collateral assignments, partials, etc you hit the ultimate holy grail. It’s just about doing it correctly in an emerging market with the right team in place and a vision you stick to. 

@Amy Fulbright What steps exactly are you looking for? How to set up your appearance on Social networking? How to find asset managers? How to raise capital, partners, etc (Which I never recommend until you learn with your money), etc. 

Best way to do this. I always teach my students the same. Use your own money first to learn the ins and outs before putting anyone else money at risk. Wish you all the best. 

@Zach Hergert being I built this for myself and others aside from managing properties for them I can help with some pointers.

If you want to manage as well for investors, you want to be careful. I always saw this as a possible conflict plus I wouldn’t do the best job for them managing. If you do this, I’d recommend getting properties in class B and better areas. I personally go overboard on the rehab where I like making each property as maintenance free as possible. It will reduce the issues with tenants and maintenance calls. Some prop managers love maintenance calls as they tack on 20-40% to each repair. This will lose you consistent investors and very short sighted. I say this as I have a pretty large portfolio now and have an average length of stay over 6 years, a 97.2% occupancy rate, just over $1,500 in turnover costs per door and I out rent my units in a market by $50-$76 for myself and investors who I help acquire a portfolio.

I do know Oklahoma is a good market even though I haven’t done anything there yet. I’ve been so busy in other emerging markets that I haven’t even extended there but with the right mindset and model, I’m sure you’ll crush it. Wish you all the best.

@Nasser Aliseed first off, let me say I’m keeping you in my prayers for a full recovery.

I can't tell you how the business of passive wealth has personally changed the lives of my family and I. I have been at this about 29 years from flipping props, wholesaling, multi families, land deals, Notes, SFR as well as multi family rentals.

I consistently made multi 7 figure incomes year after year flipping, but had no time for my family and friends. Basically very similar to most. Once I decided 8 years ago to make the switch and why I wrote my book “Passive to Prosperous” my life changed. I knew I’d secure the passive income I needed weather I worked or not.

I’m not going to lie and say it’s always easy and stress free, because nothing great ever is, but if you do things correctly you can certainly build a business of passive income. My recommendations are this.

1) Buy in a good emerging market

2) Have a good team in place (Property Managers, Contractor’s, realtors, attys, etc)

3) If you’re doing your own rehab, try and keep it as maintenance free as possible

4) Automate as much as possible

5) Stick to your vision

I wish you all the best.

@Lawrence Paul great question. Over the years I've helped so many build their portfolio. You may have trouble with conventional banks due to credit, DTI, Fannie/Freddie rules, etc.

You have to go a different direction depending on resources. Either taking on a Partner to fill in the Bala or some of the best ways is seller financing, Sub 2, master lease options, etc. My specific has been to both acquire deals with and offer deals on seller financing to investors. Hope this helps. Wish you the best

@Matt Skog thanks for the mention even though it makes me sick to my stomach to see this. I like others work my butt off for my money and the investors who work with me. I’d hate this to give us a bad name. One thing I take more serious then my own money is any money others invest with me and the reason you don’t see me raising funds for deals like this. 

The fact here is it was more than taking a risk with a deal. It was taking money with the wrong Intention. 

I usually don’t post much here at all as I have a pretty strong network of investors and students and don’t want to be clumped with a bunch of new investors being Taught to raise money incorrectly. 

I’m so sorry to read this. Hope it doesn’t sour everyone from chasing their vision. Once again I’ll always say do your due diligence and trust but verify. 

After being at this for 28 years and a few thousand transactions, I’m starting to think the best way to help others build passive wealth is not selling them turn key rentals any longer. There’s too many things I can’t control once I sell. (Management, Contractor’s, etc) unless you decide to keep all of this in house, which I don’t think is a good idea for me.

I just recently sold off a larger pool of REOs I acquired from the bank. I sold about 70% of them for cash and the rest I held seller financing to investors who wanted to rehab and rent them and enjoy that equity. I even had one newer investor who asked me to mentor him on the rehab and to get the property performing. What a great project that was.

This was much cleaner for me and I know I’m taking care of the investor so didn’t worry about losing any relationships because the property manager or contractor I had may not be doing a good job.

I’m ok making less money as long as my investors are taken care of and will always put them first. Just some thoughts to see what others think as my business model has been long term passive wealth now for many years.

Here’s what I recommend and help many investors with. When you start out you need as much leverage as possible to build up. Once you have what hits your goals towards your vision you can work on a debt reduction plan.  

Stay away from D properties for sure. You’ll never see the return presented on paper. Stick with as high as A- but usually B+ to C+ in good emerging markets where they have a 1 to 1 value to rent ratio. 

As far as financing either bank or seller financing works best. I work with tons of investors I seller finance them properties with 30% or 20k down. This allows them to acquire multiple properties building their portfolios. Once they get the amount of properties they need we show them the best paydown methods if they want. 

Basically it comes down to a plan working towards your vision. Stick with the plan and if it doesn’t match your ultimate “Long term Vision” stay away. Wish you the best. 

Dan Zitofsky