When evaluating a real estate opportunity, you truly need to keep your analysis simple and make your estimates conservative—and then apply a margin of safety to your numbers. Applying the margin of safety cannot be stressed enough. Here I explain why and how to go about it.
BiggerPockets Podcast 318: 100 Units in the First 2 Years (Using Bank Financing!) with Collin Schwartz
Interested in buying over 100 units in two years’ time? Today’s guest did just that! Collin Schwartz shares the amazing story of how he built an impressive portfolio on the foundation of direct mail and networking through meetups.
The importance of thoroughly performing due diligence cannot be overstated. I would know! I had to learn the hard way. This is a story about skipping inspections and underestimating the cost of repairs, and how it can throw your whole investment off course. Learn from my mistakes so you won’t have to make them, too!
Do you have a process to dive deep into real estate data in order to track down property owners? Most investors won’t push past initial barriers. They will simply move on to the next deal. But when the market is hot, good deals can be scarce. That means those more difficult to locate might just be the best out there.
Experience has led me to believe that the majority of turnkey companies out there are putting a ton of pressure on the investors that reach out to them to buy a property. If this is happening to you, run the other way—fast.
Have you encountered online businesses offering to form an LLC for you at an extremely discounted price? Tons of sites peddle extremely cheap (or even free) articles of incorporation or other LLC-pertinent documents. However, buyer beware! These offerings are usually too good to be true. Here’s why.