Best strategy if you want don't want to do a ton of work?

Question

Hi,

I've heard it said on this site that investing in real estate requires 2 of the 3: Money, Knowledge, or Hustle. Well, I have a little money, and I like to think I'm a quick study. One thing I'm more reluctant to give up is my time. I already have a demanding job and a busy life. I want to invest in real estate, but a lot of investment strategies strike me as rather time consuming.

I'm hoping to get some advice. What are the best strategies if your available time is limited? What would you recommend to the person who has money and knowledge, but is short on free time?

Morgan Klein · Answer

I'm probably your case study, Bob.  I have a full-time career (my wife works full-time as well), 3 boys under 10 that are are playing baseball that I help coach (two playing travel ball - if you don't know what that is, you can look it up under "Time & Money Suck").  In the last two years we've purchased 4 investment properties and are currently in the middle of our first flip.

Before my wife and I decided we were going to start investing in real estate (after we spent the better part of a year reading books, listening to podcasts, and deciding where we were going to start investing), we looked at what we were good at and how much of our time we could put towards this venture.  I've been moved several times for work, and we have always been good at finding undervalued properties in the cities where we relocate.  We have always been able to build relationships and network (we're both in sales).  I'm a halfway decent negotiator, and my wife is incredibly well organized.  I can do light handyman work, we've become pretty solid painters and landscapers.

We decided right away to hire a property manager when we purchased our first property.  I told her to call me if any light repairs came up, and I would handle them.  Some sweat equity, if you will.  The first one came about 2 weeks into owning the property, the front door handle needed to be replaced.  10 am on a bluebird sunny Saturday morning, and I'm replacing a door handle while my wife's at home with all the kids enjoying their weekend.  That was my "ah-ha" moment.  I haven't touched one of my properties since.  My PM handles everything, I just get a check and a statement, pay the mortgages, and file away.

Fast-forward to today, and I'm in full acquisition mode.  I have a property manager that has evolved into an investment partner, and many of her connections have become my connections.  I have a great attorney that handles my closings and manages my LLC.  I have an accountant that understands real estate investing (can't emphasize this enough).  And I've made a ton of connections in my area.  I work my normal job, my wife does her thing, and at night we surf MLS, Zillow, etc., because that's what we do for fun anyway.  Although our last two deals have come off-market because of our relationships with our PM and other investors.

My advice is build a good team, centered around a GREAT property manager.  Involve yourself in the aspects of investing that you enjoy and that you don't consider a burden on your time, and leave the rest to your team.

Rachel H. · Answer

@Bob Jones Real estate investing and getting large returns definitely takes up a lot of time. If you're short on time and willing to take less in returns, you can always look into real estate crowdfunding. Usually, this will entail you lending a certain amount of money in exchange for a certain return down the road. A lot of busy professionals choose this route if they'd like to get into real estate investing but are short on time. Hope that helps!

James Wise · Answer

You want to buy properties & then turn them over to a property manager. They will do all the day to day stuff so you don't need to give up any of your time. You can do this in any market in the USA or right in your own backyard. Baltimore is a very low cost market so won't be too hard to get going.

Craig Jeppesen · Answer

A few options for you: 1: partner with a flipper and you provide the funds and split the profits. 2: become a private or hard money lender. 3: invest with large apartments sindicators. 4: invest in re crowdfunding. 5: invest in class a turnkey rentals and use a property manager.

Scott Passman · Answer

@Bob Jones  I would look into turnkey property investing. There are good teams out there to work with that can make it pretty passive to acquire a property that is rent ready and have a property manager take care of the day-to-day tasks running the property.  Make no mistake, you need to do some leg work up front to vet the company to ensure you are working with good people who aren't just trying to make a quick buck.  But once you find a good operator, you can start investing without a significant amount of time involvement.   It's a good way to start, just make sure you verify everything and really vet the operator via references and interviewing to ensure you are working with a quality company.

Tchaka Owen · Answer

@Bob Jones - easy. I recommend that you hire someone to do the work.

Best strategy if you want don't want to do a ton of work?

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