How to find a coach?

[Maurice Giro]

Hi all, I've been a member for a while but I have not been able to focus on real estate investing as I've had to tend to my other 2 businesses the last few years. 

Where can I find a coach that will help me figure out what I should be focusing on in my real estate investing journey? While I was looking at syndicating deals a few years ago, I'm no longer sure if that is viable or even the best strategy for me? Does the highest tier membership on Bigger Pockets offer the ability to book a coaching session? 

Thanks in advance!

[Maurice Giro]

Hi Bob, I'm not looking for immediate cash. I'm looking to generate wealth that will allow me to retire as early as I can; however, I'm looking for something that is as passive as possible as my current business is very time consuming. 

[Shiloh Lundahl]

Hi @Maurice Giro it sounds like you would like to get into real estate investing, but you would like to be more passive than active.

Just keep in mind that the more active you are, the higher returns you get, and generally speaking, the more passive you are the lower returns you get

There is a hybrid model where you can learn how to find deals that are under market value, build a team that will help you purchase and rehab and rent out the property, and then have someone help you manage it. If you’re able to find properties that are under market value, then you can build wealth faster through forced appreciation that happens when you fix up the property at the beginning. But if you’re too busy to do that, then a few other options maybe:

1) syndication - but you would really want to vet the syndicator and see their track record especially how they’re doing during this downturn.

2) Buy turnkey properties that are managed by the turnkey company. However, you usually buy these properties at or a little bit above market value. so it really takes quite a bit longer for you to build wealth with these properties and you are really just hoping for appreciation overtime. Or, if you don’t have a loan on the property, then you make money through cash flow. But the money that you are making is usually below 10% with a turnkey property

3) partner with somebody who is a skilled Real Estate investor, who can do the majority of the work and you can come in as the money partner.  They can find the deals and get them ready for rent or for sale and you can just be the money partner on it and then you guys can split the profit in a way that makes sense for both of you.

4) become a private money lender, and lend out your money to skilled real estate investors in order for them to do deals. You wouldn't be an equity partner, you would be a debt partner. I've had a lot of people do this with me where they will lend me money on some of the deals that I do and then I will give them a deed of trust, which ties their money to a specific property that has much more equity than the sum of the loans. They receive a promissory note that outlines the timeframe of the loan with a specific interest rate. For me it is usually a 24-36 month loan at between 13-15 APR%. This is a very passive way of getting involved in real estate that provides fixed returns that are usually higher than the stock market.

Those are a few ways to get involved in real estate in a more passive role. 

Hopefully this is helpful to you. Let me know if I can be of any help. And good luck investing in real estate.

[Evan Polaski]

@Maurice Giro, as the others noted, it really comes down to what are you looking to learn.  While this is probably overkill, real estate can be synonymous with "sport".  I want a "sports" coach.  Well, to Shiloh and Bob's points, sports can be baseball, basketball, tennis, weightlifting, running...  

I would start with some local meetups, and/or some of the conferences that happen each year.

Meetups: head to meetup.com and search "real estate investing" for your market. There are also REIA groups in nearly all major metros.

Conferences: The Biggerpockets conference and/or the Best Ever Conference are two good ones that will let you meet investors of all shapes and sizes, from syndicators to LPs to direct owners in nearly all asset classes, from SFRs to Airbnbs to apartments and retail, industrial, RV parks, etc.

[Gino Barbaro]

@Maurice Giro

I think you need to book a few calls with a life coach to make sure you want to pursue real estate with other opportunities that have kept you away.

One coaching call will not help you uncover what strategy. I would start attending meetups and going to events to get an idea of how others have started.

Strategies are plenty. With a real estate coach, you should be able to learn all the strategiss and implement them in the right market cycle. Syndication was the rage the last few years, and now creative financing has become more prevalent

Gino

[Henry Clark]

OP.  Passive and retire early don’t go together.  

Couple avenues to look at.

1.  Look at your office situation.  Can you buy a larger office and be one of the tenants?

2.  You’re in estate planning.  Talk with financial planners, bankers and your clients.  You should pick up on some good deals.

3.  Country subdivisions. Look for 20 acres up to 40 acres.  With or without a house in it.  This size is too big for most home buyers and to small for big buyers.  You will then subdivide and sell lots only.   Use the lookup function. My name and Journeys End or Silver Spring subdivision. 

We do Selfstorage and country subdivisions.  When we started I was a CFO or Controller working 50 to 70 hours per week.  

There are many types of REI. Just find one that fits your goals..

[Henry Clark]

Another avenue is your house. Tax free if your primary residence 2 out of 5 years.  Keep moving houses as you build capital gains.  $250,000 per spouse.

 Buy a new house that has one of these features.
 A.  Has 5 to 10 acres extra.  Subdivide off and sell.  

B.  Pick the worst house in a great neighborhood and upgrade.  Live in for two years.
C. Bad configuration say 2/1, you can ADU into a 3/2 with extra garage as an example.

Realize some of the examples take you and your family out of your comfort zone.  But these us assets you already have to make more money faster for you.   A little discomfort now for early retirement later.  

[Maurice Giro]

Quote from @Shiloh Lundahl:

Hi @Maurice Giro it sounds like you would like to get into real estate investing, but you would like to be more passive than active.

Just keep in mind that the more active you are, the higher returns you get, and generally speaking, the more passive you are the lower returns you get

There is a hybrid model where you can learn how to find deals that are under market value, build a team that will help you purchase and rehab and rent out the property, and then have someone help you manage it. If you’re able to find properties that are under market value, then you can build wealth faster through forced appreciation that happens when you fix up the property at the beginning. But if you’re too busy to do that, then a few other options maybe:

1) syndication - but you would really want to vet the syndicator and see their track record especially how they’re doing during this downturn.

2) Buy turnkey properties that are managed by the turnkey company. However, you usually buy these properties at or a little bit above market value. so it really takes quite a bit longer for you to build wealth with these properties and you are really just hoping for appreciation overtime. Or, if you don’t have a loan on the property, then you make money through cash flow. But the money that you are making is usually below 10% with a turnkey property

3) partner with somebody who is a skilled Real Estate investor, who can do the majority of the work and you can come in as the money partner.  They can find the deals and get them ready for rent or for sale and you can just be the money partner on it and then you guys can split the profit in a way that makes sense for both of you.

4) become a private money lender, and lend out your money to skilled real estate investors in order for them to do deals. You wouldn't be an equity partner, you would be a debt partner. I've had a lot of people do this with me where they will lend me money on some of the deals that I do and then I will give them a deed of trust, which ties their money to a specific property that has much more equity than the sum of the loans. They receive a promissory note that outlines the timeframe of the loan with a specific interest rate. For me it is usually a 24-36 month loan at between 13-15 APR%. This is a very passive way of getting involved in real estate that provides fixed returns that are usually higher than the stock market.

Those are a few ways to get involved in real estate in a more passive role. 

Hopefully this is helpful to you. Let me know if I can be of any help. And good luck investing in real estate.

 Thanks Shiloh. I'm intrigued by actually running the syndication myself assuming I can build out systems and a team that allow me to operate it on "auto-pilot" as much as I can, but as you stated, I was not aware if other strategies have surfaced since I last looked into investing or whether syndication was still a viable option. If there is a down turn in the syndication market, then maybe it isn't a good opportunity for me. 

[Maurice Giro]

Quote from @Evan Polaski:

@Maurice Giro, as the others noted, it really comes down to what are you looking to learn.  While this is probably overkill, real estate can be synonymous with "sport".  I want a "sports" coach.  Well, to Shiloh and Bob's points, sports can be baseball, basketball, tennis, weightlifting, running...  

I would start with some local meetups, and/or some of the conferences that happen each year.

Meetups: head to meetup.com and search "real estate investing" for your market. There are also REIA groups in nearly all major metros.

Conferences: The Biggerpockets conference and/or the Best Ever Conference are two good ones that will let you meet investors of all shapes and sizes, from syndicators to LPs to direct owners in nearly all asset classes, from SFRs to Airbnbs to apartments and retail, industrial, RV parks, etc.

 Thanks Evan and I completely agree with your analogy. Where I'm stuck right now is, to use your analogy, figuring out "what sport" I want to play. 

[Maurice Giro]

Quote from @Gino Barbaro:

@Maurice Giro

I think you need to book a few calls with a life coach to make sure you want to pursue real estate with other opportunities that have kept you away.

One coaching call will not help you uncover what strategy. I would start attending meetups and going to events to get an idea of how others have started.

Strategies are plenty. With a real estate coach, you should be able to learn all the strategiss and implement them in the right market cycle. Syndication was the rage the last few years, and now creative financing has become more prevalent

Gino

 Thanks Gino. I'm somewhat cautious about meetups as the ones I've visited before have left me a little underwhelmed. For example, the last one I attended had a good turn out but it was hard to interact because most of the other people seemed to already know each other. Then the guest speaker started discussing some legal topics and I thought some of the advice was not great (since I handle real estate transactions on a small scale) so it turned me off a bit. I'm definitely open to revisiting meetups, but I almost feel I'd be better off attending a meetup where you have to pay so I can interact with more serious investors. 

[Maurice Giro]

Quote from @Henry Clark:

OP.  Passive and retire early don’t go together.  

Couple avenues to look at.

1.  Look at your office situation.  Can you buy a larger office and be one of the tenants?

2.  You’re in estate planning.  Talk with financial planners, bankers and your clients.  You should pick up on some good deals.

3.  Country subdivisions. Look for 20 acres up to 40 acres.  With or without a house in it.  This size is too big for most home buyers and to small for big buyers.  You will then subdivide and sell lots only.   Use the lookup function. My name and Journeys End or Silver Spring subdivision. 

We do Selfstorage and country subdivisions.  When we started I was a CFO or Controller working 50 to 70 hours per week.  

There are many types of REI. Just find one that fits your goals..

 1. I've looked at that. The issue is that I'm in Bergen County, NJ, where the real estate is expensive. I'd have to find a fixer-upper and find a trustworthy contractor. 

2. I've been hitting that market too, but there are a lot of regulations about attorneys doing business with clients so I have to be careful about that. 

3. I've never looked into that and it sounds interesting. What resources do you recommend for learning more about that investment area?

[Shiloh Lundahl]

@Maurice Giro one thing to keep in mind, if you are considering jumping into syndication, is that during markets like the one that we’re in, what it does is it sifts out the professionals from the amateurs. Those that are well-connected, and know what they’re doing Will succeeded while others will likely fail. Like the saying goes, a rising tide lifts all ships, but when the tide goes out, you can tell who’s been swimming naked. In other words, I wouldn’t get into anything halfheartedly. If you’re going to jump into real estate, I would highly encourage you to take is serious which means that you would need to dedicate time in learning and effort and connect with successful operators over time in order to be successful. We’re not in 2011 to the beginning of 2021 anymore where you would make money even when you made several mistakes. I would say we’re more in the Olympics of investing right now where you have to have a competitive advantage and you have to be an expert in order to win. I don’t say this to discourage you, rather, I say this to give you a realistic view of what it will take in order to be successful at the current investing climate today. 

[Henry Clark]

Option 3 above. Use the lookup function.  Use my name.  And either Journeys End subdivision or Silver Springs subdivision.  Look at Loopnet and look at some land.  Also talk to some head realtors in the area.  Can be 30 miles from you. 

[Henry Clark]

For country subdivision land. Look for

Roads on two sides, good cell or fiber optics, trees, rock or boulders, water, ditches to build ponds, views, walk out basements, seclusion but close.  

Only look at properties that have been listed for 1 year or longer.  Farm ground that isn't very farmable. 

Look for NASTY property.  Could be an old rock quarry.  30 acres with an old farmhouse.  Old apple orchard. Etc etc.  Farmers won’t want, individual home owners won’t want, farmers won’t want  

[Nicholas L.]

@Maurice Giro

i wouldn't give up on meetups.  it might take some time and effort... but i'd find all the meetups within an hour or two of you and go to all of them.  attend only the ones you like, and then go from there.

you could also start your own mastermind / meetup of business-owning peers that want to invest.  wouldn't even have to just be real estate.  meet, share ideas, have guests come to speak.  go from there.

also - i think that, while it's a perfectly good time to get started in RE, it's also a very tough time to get started.  you're not going to find a home run deal in your first month, and as far as i know, you can't go to greatsyndication.com and invest with someone you don't know and get 27.5%.  the way to meet a good syndicator is probably through your network, or a network that you build, and not on the internet.

hope this helps