Joe is both a real estate investor and licensed real estate professional. After getting tired of watching everyone else make money, he decided to jump into real estate investing in 2009. Through the use of his connections in the industry, he was able to successfully plan his retirement through investing in real estate deals.
As a 26-year-old, Joe got his real estate license in 2006. He found himself a bit sidetracked as he spent a year helping someone by buying their liquor license and opening a bar. When things didn’t work out as he wanted, he returned the license and asked for help to get into real estate.
Joe started as a middleman helping people build their portfolios. Working on the commercial side, he found the deals weren’t consistent enough to support him, so he switched to the residential side.
Later, he began doing commercial evaluations and eventually into multifamily properties, where he met investors that could help him. Things started to accelerate really quickly, and he found an investor who took him under his wing.
For 5 years, the investors provided the resources while Joe found the deals. With $130,000 out of the gate, they were able to come out with more than $300,000 in the end.
Later, Joe purchased a single-family house with his girlfriend. Then he met an investor experienced working in duplex or triplex properties. The investor knew how to deal with frozen plumbing and burst pipes. Joe helped him, and they got into business together.
When Joe finally dove into real estate in 2007, he didn’t know what he was up against. He spent his time out there digging sand dollars. He was always grinding. He wasn’t making a lot of money, and it was a hard time.
But he knew real estate was where he wanted to be. He saw the vision down the line of what real estate could be. It was one of the best asset classes, and he wanted to have a part of it.
Due to very low interest rates, there’s been a lot of movement in the market. But Joe sees that material costs will increase. Couple that with the upcoming inflation, we could expect a very different market compared to 2008.
Joe starts by scanning through a multiple listing service (MLS). Then he sits back and watches the activity on the property. If nothing happens, he would then make an offer that is lower than the asking price.
The seller might try to negotiate or they might tell him to go pound sand. If that happens, Joe would wait a bit more until the seller eventually circles when they don’t receive any more attention.
Joe’s goal is to find properties where he could get $100,000 off the asking price. All it takes is to be familiar with the market and know what to look for.
Usually, he keeps 4-5 properties in circulation on his target list. Having been in business for almost 15 years, most of the time people reach out to him when there are properties that are not getting any action. Joe is fortunate as he gets opportunities a lot of investors don’t get.
He also saves on the 3% commission by representing himself as he still has his real estate license. But he sometimes parlays that into something bigger by offering to no longer impose his commission during the negotiations so that the seller feels they’re getting a better deal.
In Anchorage, Alaska, a place where 300,000 people live, Joe built a nice home base. He likes the area because it’s controlled and confined. Also, only a handful of other investors work there. So it doesn’t feel like shark-infested waters as there are a lot of opportunities for everyone.
Being a mix of being close to the islands and having a military base there, Anchorage presents a pretty cool, unique market.
While earthquakes are not a huge problem in Alaska, they have to deal with the weather, which could lead to frozen pipes and mold due to the moisture and cold air.
The key is maintaining a positive mindset. Any challenge that comes by would be really good for your character. So continue to see the positive side of the properties.
In most scenarios, doing the right things and with the right people will lead to the right sort of outcome to come out.
Success is really just about mindset and finding good deals.
Joe found that all his needs could be provided in his network. So he took a step back and looked at the network available to him. All it took was to have the conversation.
You never know what a conversation could lead to. So ask great questions. What could potentially come out of those conversations could be amazing.
You just have to commit to the conversations and be open to the vulnerability that will come out during the conversations. You’ll be surprised how many scenarios will come out from that conversation. Opportunities will come out when you allow them to.
Submerge yourself into real estate investments. Get your hands on information by either going to seminars or learning elsewhere. You have to indoctrinate yourself into the world if you really want to get involved.
As you dive in further and further, the right opportunities will come out.
Real estate investing is about people. So work out a scenario that will help them that still aligns yourself for a good interaction that is profitable.
As long as you have the right mindset, you’ll be able to dig yourself out of the hole you’re in.
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