What's your go to source for business knowledge?

Question

My 5 year plan is to have 50 doors in 5 years with the first step buying our first property this year, most likely in Tucson AZ. It's mainly gonna be through multi fams (obviously) probably in AZ, MO (I have family there), and maybe some other parts of the Midwest if the price is right.

I want to have a business plan, or at least the first couple years of one, written down and I also wanna know some of the landlord do's and dont's. Let's be honest, I could use ANY advice on ANYTHING business haha.

What are some books, podcasts, websites, or YouTube channels you guys would suggest for a beginner in business? I've read "The Book on Investing with Little or No Money Down" and I've been catching up on the Bigger Pockets Business podcasts too.

Bobby Hosmer · Answer

Hi @Zach Fridrich

Great to see how motivated you are!

For long term business plan, give “Vivid Vision” a read. It’s quick and high level. But it’s great for describing how to get big ideas down. This is great for writing down “what you want to achieve” and creating a plan visually.
For multifamily education, check out books by David Lindahl, Rod Khleif, or Steve Burgess. These will provide great introductions to the space. There are so many variations of multifamily investing that it’s tough to do everything. Once you start reading and learning, you’ll probably find a specialty or focus you’ll be more interested in. Example, I’m interested in Value-add multifamily of C class properties of less than 50 units, located within SW markets. (You mentioned Az and MO which are two completely different markets. Nothing wrong with that, but one is a cash flow market, and the other is an appreciation market)

once you educate, it’ll be easier to find more resources based on that specialty. I also recommend looking up meetups in all of those markets. Most meetups have zoom sessions for networking if you can’t attend in person. Happy to chat more once you begin your journey! Good luck!

Cade Olof · Answer

Hey @Zach Fridrich it's cool to hear that you're interested in the space! One of the quickest ways I learned about the RE Investing space was by networking with other people. Specifically, people who are in the market that you're interested in. They'll be able to give you the best advice being that they understand their market. Bigger Pockets was truly the only way I networked and it was very beneficial. I found most people to be very helpful and supportive. Best wishes on your journey and feel free to PM me if you'd like to connect further!

Bobby Hosmer · Answer

@Zach Fridrich

I’d almost recommend just picking a market you might be interested in, and then googling “is it a cashflow or appreciation market?”

But, I also think the best way to figure it out would be to network with people from that market, (Like on bigger pockets) or just start to analyze deals. Decide which strategy fits your long term goals, and then start analyzing deals from those markets.

Generally, you have cashflow in Midwest and other snow markets. Southwest markets have a lot of appreciation at the moment. Candidly, I haven’t analyzed Southeast markets 🤷🏼‍♂️

If you are trying to retire and need income each month, look for cashflow markets. If you are interested in shorter term plays, look for markets with appreciation.

(Of course, submarkets might play differently, which is why I suggest analyzing with a lens of scrutiny)

Bobby Hosmer · Answer

@Travis Bryenton

I like your thoughts on this. Here’s my take, while I agree that debt plays a large role in affecting your cashflow, regardless, if you were to pay cash for an investment of similar cap rates in an “appreciation” market and a “cashflow” market, wouldn’t you agree that your IRRs would/could end up wildly different?

Nikki Yankowski · Answer

There are the classic books, almost like an unwritten list that all real estate agents read. Rich Dad Pour Dad, Never Split the Difference, ect. However I wanted to touch on one constant in my life that I think helps me the most.

I watch/ listen to Bloomberg all day. Having the financials of the world playing in the background of my life has been pivotal in my shaping my outlook on money management. Our subconscious is always collecting data.

Bobby Hosmer · Answer

@Travis Bryenton

No. I finance my properties.

Travis Bryenton · Answer

@Bobby Hosmer yes. Do you pay with cash?

Travis Bryenton · Answer

I would also say cash flow vs. appreciation would depend on the deal setup and exit strategy, which has a lot to do with your debt terms, not necessarily the market.

I would also throw in Charles Dobens Multifamily Warroom and Podcast as additional good introduction sources. I am not a student (FYI), but he seems to give the straight talk on the podcast.

Zach Fridrich · Answer

@Nikki Yankowski thanks for the suggestion! I'll check out Bloomberg

Zach Fridrich · Answer

@Bobby Hosmer thanks for the advice, encouragement, and recommendations! How can you tell if a market is cash flow vs appreciation? I'm guess from the prices I saw in Tucson it's be an appreciation market right?

What's your go to source for business knowledge?

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