So often we hear of investors with 1000+ units, while it is motivational it is not always relatable.
You don’t need a massive portfolio to change your financial future. Just a few properties, held over the decades, can have an outsized impact.
Today I have the pleasure of sharing one of these investors who is just at the beginning of building a massive portfolio. Someone we can all relate with and root for.
Please meet Joshua Heacock aka @jm_heacock
How many doors do you have?
“Currently 3 properties”
What got you into real estate investing?
“Always wanted to do it. Didn’t know where to start. When my wife and I got married, we turned her house into our first rental. We learned as we went and grew from there! The key is just getting started. My advice: just dive in”
What market(s) do you operate in?
“Midwest – Iowa”
How would you describe your portfolio?
What are you currently buying?
“Single family, one story with garage (attached preferred)”
Tell us about your biggest mistake in real estate
“Refinancing to a 15 year mortgage. Wish I would have gone with a 30. Sure, the 15 year rates are better, but a 30 offers much more flexibility. It’s not about payment, its about cashflow; most don’t understand that.”
Tell us about your biggest win in real estate?
“They’ve all been wins, so far. I buy houses that I would move my family into. The rent we are asking for each unit is a natural filter for many tenants that are less desirable. That’s not an accident. When we purchase a property we renovate and update right away. From there we keep our properties in great condition, as do our tenants. This is our strategy – which may be different than other’s strategies. But it works for us.”
What advice would you give to a new investor?
“Establish a relationship with a local bank. As for a personal banker. Local banks can offer you advice, deals and terms that big-box banks simply can not. Also, amortize to the longest terms they will offer. Finally, when financing, ask you bank about a 30/15 mortgage (you’ll be glad you did!).”
As investors we are only as good as the tools in our tool belt (and how well we use them). The best investors are constantly sharpening their skills.
My question for you is what are you doing everyday to hone your skills, to be a better investor? Are you reading? Listening to podcasts? Clearly if you made it to the end of the newsletter you take learning seriously.
We can’t always put on new hats and overnight become experts. It takes hour of study and practice.
See you next week