Get Rich Education
Get Rich Education
Sep 14, 2020
310: A Real Estate Winner Today: Florida New Build-To-Rent Homes
Play episode · 46 min

The pandemic has fueled remote work.

A New Yorker paying $4,000 rent in a 1 BR apartment can now work from Florida, paying $1,500 rent in a 3 BR & 2 BA single-family home.

Central Florida benefits from this in-migration. 

Florida has law that favors landlords, zero state income tax, a low cost of living, beach proximity and of course, warm weather.

Get the report and learn more at: www.GetRichEducation.com/Orlando

These Central Florida Build-To-Rent properties are brand new. 

They often appraise for $5,000 to $10,000+ more than your purchase price. That’s built-in equity.

Your rent-to-price ratio is often 0.8% to 0.9% for single-family rentals. The average tenant stay is 3+ years in this new construction.

Get the report and learn more at: www.GetRichEducation.com/Orlando

The growth and economic diversity in the region is astounding.

The time is likely “now”: brand new construction, high rent occupancy, cash flow, low interest rates, low insurance premiums, low $160K - $220K property cost.

Resources mentioned:

Central Florida Build-To-Rent:

GetRichEducation.com/Orlando

Mortgage Loans:

RidgeLendingGroup.com

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eQRP.co

By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Construction Turnkey Property:

NewConstructionTurnkey.com

Best Financial Education:

GetRichEducation.com

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GREturnkey.com

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The Remote Real Estate Investor
The Remote Real Estate Investor
Roofstock
Real Estate Is Like A Bond Indexed For Inflation With An Equity Kicker w/CEO Gary Beasley
Michael: Hey everybody, welcome to another episode of The Remote Real Estate Investor. This is our weekend wisdom episode. I'm Michael album and joined today by Tom Schneider and Roofstock CEO, Gary Beasley. Theme song Michael: So, Gary, we want to ask you a question about what is your favorite metric to use when evaluating properties? And how do you think about that metric when it comes to total return. Gary: So I like to think of single family rental homes as sort of like a bond that's indexed for inflation with an equity kicker, and I'll explain what I mean by that. And the reason I think it's particularly relevant right now, is we're in a low interest rate environment, people do feel like with all the money we've been printing over the last few years, there is a potential for inflation down the road. So you want to think about what kind of investments could potentially be inflation hedges in case inflation. And the Fed has said, we're gonna keep rates low, and we're not so worried about inflation, so we're not gonna be as aggressive in raising rates. And then you've got this equity kicker element in homes, which is really the appreciation component of it. So let me tell you what I mean. So the bond component is that the cash flow that you could generate from the home when you own it, and that's like the bond piece every year, you could raise the rent to at least keep up with inflation, because their annual contract. So if there's a lot of inflation in the market, you can raise the rent. So if you had to sign a 10 year lease that was flat and inflation went up, you would be in trouble. So you've got that annual indexing. And then you've got the capital appreciation piece, which if the property goes up, you know, 3%, a year or 4%, a year, which is historically has done over the long term, you get that capital appreciation piece, like you would get, say, in a stock with a stock value going up, you've got the value of your underlying asset going up. And what's nice about real estate, unlike with stocks, which are harder to, in most cases, put leverage against unless you have a margin account, anyone could get a loan for a house. And so you could get a 70 or 80% loan on the house. And I like to give a you know, very simple example, if you have a home that basically just covers its costs over, say, a five year period, but it goes up at three and a half percent a year and you have an 80% loan on it, you could get a 14 or 15% annualized return on that, because you've got someone else paying down your mortgage and creating principal value, you've got, you know, you're you're riding the property value along, and you're getting kind of four to one leverage on your equity. So when you sell it, your annualized return over that period can actually be quite high, even if you're not pulling money out or getting current return along the way. So when I look at investing in homes, the yield is one component of it. But I'm really more of a total return investor, I don't necessarily feel like I need to pull the money out every month and then spend it or put it into something else, what I'm trying to do is create value in that asset. And so I like the idea of having someone else pay down the loan balance for me, and create value over time just by getting that exposure to housing, and letting the market be your friend. And then at some point in the future, if you decide to liquidate it, you've got a lot of hopefully embedded equity value, that's when you could sort of realize the benefits of that investment. Michael: That's a great kind of analogy and pictorial representation. Can you talk just real briefly about how a bond works if somebody wanted to go buy a bond, so that way they can compare that investment versus real estate? How does that traditionally work? Gary: Yeah. So when you buy a bond, what you buy is a coupon on that that bond, and then you get your money back. So you could buy a municipal bond or Treasury, something like that. And let's say you get an interest rate on that bond of 3%. And you buy your hundred dollar bond, and you get $3, every year back. And then at the end of that term, you get your hundred dollars back. That's the entirety of your return. And that's a 3% annualized return, because you're getting your 3% every year, the difference between like a bond and a single family rental home, which you might be able to get a similar kind of return every year on a home, but the value of the underlying home is going up. And so then instead of getting $100 back, maybe you get $120 back, right and so that's where that's that equity kicker piece that I'm talking about. That's over and above that bond piece. Michael: Already, everyone that was our quick weekend wisdom a big big, big thank you to Gary super informative. If you enjoyed the podcast, please feel free to leave us a rating and review wherever it is you listen to your podcast. We look forward to seeing the next one. Happy investing
5 min
Apartment Building Investing with Michael Blank Podcast
Apartment Building Investing with Michael Blank Podcast
Michael Blank
MB 236: The Financial Freedom to Do What You Love – With Megan Lamke
Time is precious. Are you spending your days doing what you love with the people you love? What if multifamily real estate could help you do just that? What if you could achieve financial freedom fast—regardless of your current financial situation? Megan Lamke is Managing Partner at Megan Lamke Real Estate, a firm that helps driven women turn their grit into true financial growth. She built a network of real estate investors working for Wells Fargo Home Mortgage, and once she and her husband, Darik, had paid off their personal debt ($535K in under 5 years!), they started investing passively in multifamily syndications. Megan quit her corporate job to pursue active investing full-time in April of 2019, and today, the Lamkes have a portfolio of 1,491 units valued at $344M. On this episode of Apartment Building Investing, Megan joins me to explain why she took a W-2 job after college (despite wanting to become a real estate entrepreneur) and what she and Darik did to live below their means and pay off their debt so fast. She describes what she did to find a good operator as a passive investor and how she leveraged her sales and marketing background to transition to active investing. Listen in for Megan’s insight on how to raise capital at scale with a platform and learn how YOU can achieve financial freedom and spend time doing what you love! Key Takeaways When Megan started thinking about real estate * Parents struggled financially, read Rich Dad Poor Dad at age 10 * Entrepreneurship and business clubs in high school and college Why Megan took a W-2 job after college * Needed to pay off student loan debt before leave Rat Race * Learned sales skills, got to work with real estate investors What Megan and her husband did to live below their means * Sold luxury cars, bought cars for cash * House hacked 6BR (rented to rugby teammates) * Side hustle as sales and marketing consultant How Megan and her husband got on the same page financially * Financial literacy class as part of premarital counseling * Set goal to pay off debt, achieve financial freedom How Megan’s strategy shifted once she was out of debt * Sold 6BR house to invest passively in multifamily syndications * Goal to replace corporate salary as quickly as possible Megan’s advice on finding a good multifamily operator * Look at track record, online reviews, lawsuits and marketing efforts * Ask questions re: where properties located, how managed, etc. What Megan’s last day of work was like * Surreal (like leaving the Matrix) * Culmination of goal that started in fifth grade How Megan’s life is different now that she’s a full-time investor * Control own time (decide when to work) * Spend more time with daughter, volunteering What active investing looks like for Megan * Use SDA to underwrite 10 deals/day (300 in 2019) * Leverage background in sales and marketing to build out platform What Megan has done to scale her capital raise efforts * Done-for-you tech stack to automate lead gen, booking calls * 30 to 37 calls with prospective investors every week What Megan is doing to attract prospective investors to her platform * Create content (social media, videos, blog and weekly webinar) * Sponsor real estate events, promote lead magnet on podcasts How Megan describes her ideal investor * Successful career woman age 40-55, primary breadwinner * Gritty and knows how to get stuff done How the automation works to turn interested prospects into investors * Receive automated email with free download * Follow up with drip marketing campaign to encourage call How much capital Megan has raised through her online platform * $18M raise to close on $49M apartment building * In process of closing on $18M 503(c) How raising capital looks different now that Megan has a platform * Don’t have to call each investor, track follow-up manually * One centralized management tool that automatically follows up Connect with Megan Lamke Megan Lamke Real Estate Megan’s No-Nonsense Women’s Guide to Investing Megan on Facebook Megan on Instagram Megan on LinkedIn Resources Register for Michael’s Platform Builder Incubator Join the Nighthawk Equity Investor Club Rich Dad Poor Dad by Robert T. Kiyosaki Business Professionals of America DECA Dave Ramsey Robert Kiyosaki Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even without Experience or Cash by Michael Blank The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod Michael’s Syndicated Deal Analyzer Trello Investor Deal Room Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group
36 min
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