All Forum Posts by: Jason Giomboni

As a realtor, I've guided many clients through their first property investments and I'm always eager to learn more from experienced investors. For those of you who already own at least one investment property, what's one thing you wish you knew before making that first investment, or one thing you would have done differently?  

As you are looking into making your first investment, I would greatly appreciate your insights and advice which would be invaluable as I embark on this journey. Thank you

please Join us for our official launch event for Scranton PA on June 27.

Hello Investor,

Congratulations on building a robust real estate portfolio in just three years! It's impressive, especially considering you manage everything yourself. Given your situation and goals, here are some strategies to help you take the next step and grow your portfolio further:

1. Refinance Existing Loans

- Lower Interest Rates: Since nine out of ten properties have commercial loans, consider refinancing to secure lower interest rates. This can free up cash flow and improve your overall financial position.

- Longer Terms: While you're hesitant about longer terms, refinancing some properties with 15-20 year loans at lower rates might reduce your monthly payments, allowing you to reinvest the savings.

2. Leverage Equity

- Home Equity Line of Credit (HELOC):** Use the equity in your properties to secure a HELOC. This can provide the funds needed for down payments on new properties.

- Cash-Out Refinancing: Another option is cash-out refinancing, which allows you to tap into your home equity to buy additional properties.

3. Partnerships and Joint Ventures

- Partner with Other Investors: Team up with experienced investors to pool resources and acquire larger properties or diversify into different real estate sectors.

- Real Estate Syndication: Participate in syndication deals where multiple investors fund larger projects, such as apartment complexes or commercial properties.

4. Expand Property Types

- Multifamily Properties: Consider investing in multifamily properties like duplexes, triplexes, or apartment buildings. They often offer better cash flow and economies of scale.

- Commercial Real Estate: Diversify into commercial properties, such as office buildings, retail spaces, or warehouses, which can provide higher returns and different tenant profiles.

5. Real Estate Investment Trusts (REITs)

- Diversification: Invest in REITs to gain exposure to a diversified portfolio of properties without the need for direct management. This can also provide liquidity and steady income.

6. Professional Management

- Hire a Property Manager: As your portfolio grows, consider hiring a property management company. This will free up your time, allowing you to focus on strategic growth and new investments.

- Automate Systems: Implement property management software to streamline tenant communication, rent collection, and maintenance requests.

7. Education and Networking

- Join Real Estate Investment Groups: Engage with local or online real estate investment groups to learn from experienced investors, share ideas, and discover new opportunities.

- Continuing Education: Take advanced real estate courses or attend seminars to stay updated on market trends, investment strategies, and legal changes.

8. Optimize Your Portfolio

- Sell Underperforming Properties: Evaluate your portfolio and consider selling properties with lower returns. Use the proceeds to reinvest in higher-yielding assets.

- 1031 Exchange: Utilize a 1031 exchange to defer capital gains taxes when selling properties, allowing you to reinvest the full amount into new investments.

9. Tax Strategies

- Tax Deductions: Ensure you're taking full advantage of tax deductions related to mortgage interest, property taxes, maintenance, and depreciation.

- Consult a Tax Professional: Work with a tax advisor to develop strategies that minimize your tax burden and maximize after-tax returns.

10. Plan for Economic Downturns

- Emergency Fund: Maintain a cash reserve to cover unexpected expenses and vacancies.

- Diversification: Diversify your investments to reduce risk, including different geographic locations and property types.

Your excellent credit score, lack of personal debt, and existing portfolio put you in a strong position to expand. By leveraging your equity, considering new investment types, and possibly bringing in partners or professional management, you can continue to grow your portfolio and achieve your financial independence goals.

Best of luck, and keep us updated on your progress!

Thank you

First of all, congratulations on your new career and your decision to invest in real estate at such a young age! Your foresight and planning will serve you well in achieving your financial goals. Let’s dive into your questions:

1. Best and Safest Areas to Invest Near Dallas

When considering areas to invest in near Dallas, especially for house hacking, you'll want to look for neighborhoods that have strong growth potential, good schools, low crime rates, and amenities that attract renters. Here are a few areas to consider:

- Midlothian: Known for its good schools and community atmosphere. It's growing and has a mix of new developments.

- Cedar Hill: Offers affordability and a suburban feel with plenty of parks and green spaces.

- Grand Prairie: Centrally located between Dallas and Fort Worth, it has a diverse economy and growing population.

- Arlington: A bit further out, but it's a vibrant city with strong rental demand due to its large student population and attractions.

- Plano: A bit more expensive but offers excellent schools and a strong job market.

 2. Ways to Achieve Buying a Property in Tyler

You have several options to consider if you want to invest in Tyler without a 20% down payment:

- FHA Loan: If you're willing to live in the property for a while, an FHA loan might be an option. They typically require only a 3.5% down payment.

- House Hacking: Purchase a multi-unit property, live in one unit, and rent out the others. This can often qualify you for lower down payment options.

- Private Money: Look for private lenders who might offer better terms than traditional banks. This could include friends, family, or real estate investors.

- Seller Financing: Negotiate with sellers who might be willing to finance the property themselves. This can sometimes result in lower down payments and more flexible terms.

- Partnerships: Team up with another investor. They can help provide the capital, and you can manage the property. This way, you both share the benefits and risks.

3. Side Hustles for Extra Income

Generating extra income can help you reach your goals faster. Here are some side hustle ideas that can be managed alongside your full-time job:

- Freelancing: Use platforms like Upwork or Fiverr to offer services such as writing, graphic design, or financial consulting.

- Real Estate Agent: Get your real estate license and help others buy/sell properties on weekends or evenings.

- Tutoring: If you have expertise in a subject, offer tutoring services.

- Ride-Sharing/Delivery: Work for companies like Uber, Lyft, or DoorDash during your free time.

- Online Store: Start an e-commerce store on platforms like Etsy or Shopify.

- Investment: Look into stock market investing or peer-to-peer lending to grow your savings.

Summary

1. Best Areas Near Dallas: Consider Midlothian, Cedar Hill, Grand Prairie, Arlington, and Plano.

2. Buying in Tyler: Explore FHA loans, house hacking, private money, seller financing, or partnerships.

3. Side Hustles: Freelancing, real estate agent work, tutoring, ride-sharing/delivery, or starting an online store.

By diversifying your strategies and staying focused on your goals, you can successfully purchase your first rental property and build a strong foundation for your real estate portfolio. Good luck!

Welcome Kabene

It sounds like you're in a solid position to start investing in real estate! Here are a few considerations to help you decide between a 4-plex and a duplex:

1. Cash Flow and Returns: A 4-plex typically generates more rental income compared to a duplex, potentially offering better cash flow and returns. However, it might come with higher maintenance costs and more management responsibilities.
2. Financing and Down Payment: With your savings and HELOC, you can make a substantial down payment of 35-40%. This should put you in a good position to secure favorable financing terms. Make sure to compare the costs and benefits of using your HELOC versus keeping it as a reserve for unexpected expenses.
3. Market Conditions: Research the Dallas and suburb markets to understand demand, rental rates, and appreciation potential for both 4-plexes and duplexes. Sometimes, smaller properties like duplexes can be easier to rent out consistently, while 4-plexes can offer more overall income.
4. Management: Consider the time and effort you’re willing to invest in managing the property. A 4-plex will require more management and upkeep compared to a duplex.
5. Future Goals: Think about your long-term investment goals. If you plan to expand your portfolio, starting with a 4-plex might provide a stronger foundation for future investments.

It's also worth consulting with a local real estate agent or financial advisor who specializes in investment properties to get personalized advice based on your financial situation and market conditions.

Best of luck with your investment!

That's great! Sharing helpful resources is always appreciated.

Yes, there are several investors taking interest in Wilkes-Barre, PA, due to its vibrant community and affordable property options. If you're looking for a reliable property manager in the area, I recommend reaching out to Jason Giomboni Team, who have a strong reputation for excellent service. Additionally, Wilkes-Barre Property Management is well-reviewed and known for their professionalism and expertise in the local market.