All Forum Posts by: Zachary Inman

Rich Dad Poor Dad is like the investing Bible on these forums haha. My favorite book for business and personal growth is Atomic Habits by James Clear; highly recommended. 

What kind of real estate investing are you most interested in?

Great question.

It depends. How many partners are there, how much of the total equity are they providing, what's the rate of return and risk, and what is the operator's track record?

Each deal is unique. The real answer is whatever the lowest rate is that can raise sufficient capital while you still hit your returns.

Welcome, Tamar :)

Midwest real estate has a great 2022 outlook. Finding a deal right now is tough, but the effort will be worth it!

Glad to have you aboard!

A duplex is a great place to start. Are you looking to make it a long-term or short-term rental?

Nice! Enjoy the cash flow, my friend.

How's the acquisition process going for the next one?

Hi Joe,

Have you considered tapping your equity with a HELOC to cover the remaining reno expenses?

I second checking out @Jim Pfeifer's Left Field Investors. They do a great job at vetting sponsors.

@David Gubb — when you say "the obvious goal is consistent strong returns," are you talking about the highest overall returns or consistent returns over the lifetime of the investment?

Hi David,

Debt is a double-edged weapon. It can be used to amplify gains and increase cash flow/net worth, but if used haphazardly, the results can be disastrous. You are asking the correct question when you asked, "Is there an end game strategy?" You should always have an end-game in mind when acquiring investment properties, whether that be an exit or hold strategy, and you should always build in a "worst-case scenario" into your underwriting. The reason you've been taught that "debt is bad" is because when things go wrong, the lender has recourse that leaves you in a bad situation.

What's considered "good debt" is leverage that's used to amplify your capital to buy bigger deals without adding high levels of risk. High-risk financing would be debt that only works when everything goes right. Low-risk financing would be debt that's immediately covered with in-place cash flows with a high margin, to leave plenty of room for when things go wrong. 

There's no right answer here, David. The quality of debt entirely depends on your investment strategy, risk tolerance, and financial situation. I would recommend going over your different options with a financial advisor or an experienced investor before you start buying assets (and some loan officers may be helpful, but they're trying to sell you loans, so there's a conflict of interest there to be aware of.)