Has there been anyone more impactful to the new generation of real estate investors than Robert Kiyosaki?
It has come to the point where Rich Dad Poor Dad is de facto required reading. Which is incredible since it really isn’t a real estate book. It’s an amazingly effective mindset book that has sold over 32 million copies.
This week we will be hearing from an investor who got his start by reading Kyiosaki. But interestingly enough not with Rich Dad Poor Dad or Cashflow Quadrant (a personal favorite of mine). Please meet Brian!
How many doors do you have?
Right now I have 8 doors
What got you into real estate investing?
The first book I read was How to Increase your Financial IQ by Robert Kiyosaki
What market(s) do you operate in?
Southern TN, Northern MS, Central/Rural Ohio
How would you describe your portfolio?
My portfolio I would describe as well researched. I get into areas with high rental demand where I can get a great ROI.
What are you currently buying?
I just acquired 2 separate 3 unit properties. Next I am looking at acquiring a portfolio via a seller financing deal. The offer should be made by the end of this week or early next week.
Tell us about your biggest mistake in real estate?
My biggest mistake cost me about $10-15k. There was a gas line repair issue in a “newly remodeled” condo that I bought. Little did I know that the previous sellers never pulled permits for the remodel. When I had an county inspector come in to address the gas line repair they failed the inspection. Fined me.
And I had to put in extra cash to get the unit to code. During this time I couldn’t legally or in good conscious charge the tenant rent since there was no heat supplied to the property. Therefore I also lost 2 months rent. Please make sure you do your due diligence if the property is advertised as newly remodeled.
Tell us about your biggest win in real estate?
My first real estate investment was a SFH. I owned for 2 years. Made $30k equity. I sold that for a 1031 exchange and bought 2 more properties. 1 SFH I still own and also made $40k more equity it.
The other was a mixed use commercial building I have sold and made $70k equity and bought the 2 new triplex units. So the original $18k $250/mo SFH investment has turned into $180k within 3 years and $3100/month positive cashflow.
Outside of real estate what else do you invest in?
Small dabble in the stock market for fun. No real long term goals with any other investment classes yet.
Books people should read before investing
I have read every book in the Rich Dad Company series. Along with the Real book of Real Estate. By Robert Kiyosaki. Also, BRRRR, Commercial Real Estate Investing, Multi Family Real Estate Investing
What advice would you give to a new investor?
Become as knowledgeable in real estate as you can before actually investing. Read books, talk to investors, listen to podcasts, YouTube research, then buy a typical low percentage property with good ROI numbers. That whole process will teach you a lot, then you can take riskier investment Chances based on your new knowledge. Good luck!
Podcast – Resilient Real Estate Investing
Monday’s show featured the investor Drew Zaruba – a college student out of Nebraska. Drew traded in his bitcoin (selling at the peak) for a couple of duplexes. He found these duplexes using a strategy he calls – Drinking for Dollars.
This unique strategy is fairly straightforward. He would go to house parties, walk the property with the tenant, and decide if it’s worth trying to buy. The tenant (his friends) would tell him everything wrong with the house and how to best get in touch with the owner.
Hear the full conversation! Links:
Make the best decisions, with the information you currently have, and left the chips fall. Adjust with the new information and keep moving forward. No shame in being wrong.
See you Monday:
Podcast – Short Term Rental Challenges – in 3 stories (with Lauren K. Aumond)