All Forum Posts by: Obia Uzorka

Hi Shannon, 

What do you need a financial advisor for? I understand you needing a tax accountant a lawyer. But a financial advisor isn’t needed to invest in real estate. And I dare say majority financial advisor just have a playbook they are taught from and learn from. I should know because I used to be a financial advisor.

Here’s my advice. Get educated about realestate, once you are armed with the knowledge jump right into the game because it works. Real estate investing without investing is like reading how to fight without training. I am proud to say I have been investing in the city of Detroit 2017, I did all my investing without any formal knowledge of property investing in the United States 🇺🇸. Yes I am from Nigeria 🇳🇬. The only thing I had going for me was I have been in the property game back in Nigeria 🇳🇬 for over 20 years and I know real estate works. 
But it wasn’t till I got educated that my world opened to a new way of property investment, which is different from what I am used to in Nigeria 🇳🇬, I still consider myself a newbie even though I have done close to 20 deals, but I have not really counted so who knows. I still don’t have a tax accountant that I am completed satisfied with, I don’t have a lawyer that makes me completely happy. But that hasn’t stopped me from investing. The more educated you get the more your horizon grows. I have over time had different accountants as my business progressed. And as I get educated I realize if an accountant is a good fit or not.

Obia or Obi 1 kenobi I am a recovering fix and flip addict 

For the uneducated the chart you put together looks really exciting, but we all know appreciation really doesn’t work that way. But let’s for a minute agree to disagree that’s the normal progression of appreciation. Chances are the property in question is returning a negative cash flow, market factors can also play a role on that appreciation, political or like New York real estate witnessed devaluation during the peak of the pandemic with people leaving  the cities. There are associated expenses that also impact holding properties for appreciation. My opinion is that those that chase appreciation are not investor but speculators. Because I think 🤔 they’re willing to sacrifice steady income for a payday.

It’s convenient to think the cash flowing property doesn’t appreciate, but we know they do appreciate, not the way a speculator might want. Capital pay down is also glossed over. And like David Greene wrote about brrrr. I think the brrrr method is easier with cash flowing properties                                                                                                                        

Here’s my take, without knowing the investors situation and strategy, we can fall into the trap of trying to recommend what worked for us as an investor rather than look at each situation as been different and unique.

For an experienced investor that has more than enough capital to cover negative cash flow, capital appreciation might be something they want, for a newbie you will agree that capital appreciation is the last thing on their mind especially when they’re looking for financial freedom through “passive income” what better way to get excited but to get your first check.

We do know that very few investor will start their investing career without the security of cash flow. If I am bold to say, you included. Cash flow acts as a Safty net, that’s why majority of investors focus on cash flowing assets, everyday experienced investors are looking for best cash flowing assets, self storage, mobile park, Tripple net leases to name a few. I know it will be difficult to pitch a syndication deal that offers no cash flow. 

I happen to be a firm believer of Robert kiyosaki assertion “what takes money out of your pocket is a liability” there was a jujitsu analogy that David Greene used in one of the bigger pockets podcasts “a fighter will out of boredom do a back flip when he is winning a fight and that’s when he might get caught with a haymaker” am sure that’s not quite how he phrased it. But investing is supposed to be boring and predictable and when we get comfortable albeit cocky we suddenly believe that focusing on what got us to the dance 💃 no longer suits us. That’s when we do back flips to excit ourselves and invest in negative appreciation properties. We forget that as a newbie you might not qualify for a mortgage to buy these appreciation properties.

My opinion and I stand to be corrected is why sacrifice one for the other when you can achieve both. Except you’re investing in a war zone where appreciation is minimal, there’s no reason you asset will not appreciate. 

My name is Obia or Obi of the Obi 1kenobi fame and I am a recovering ❤️‍🩹 fix and flip addict. I love Detroit

I need a mentor too

Ashley Hamilton, you’re crushing it. I have listened to you episode more than twice, and I have used your story as a source of motivation and also to motivate others. I hope we meet up some day as I invest in Detroit also.