For all the real estate investors out there, here’s a list of the top 5 things recommend to athletes and entertainers who want to slowly replace their earned income with passive income by entering the real estate market! Shout out to Mario West for really making sure cats are getting the knowledge they need. Randolph Morris approves! This is “PASSIVE” income, so there is no developing, managing or completing rehabs. Diversify your portfolio, 99% of y’all can’t live off the income from bonds alone. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
1) Try to target at least 10% returns per year on your investment if you are buying with cash. 25% if you are using debt.
2) As a starter, focus on residential properties in desirable areas. Consistent cashflow, low turnover and more financially secure tenants. Think of neighborhoods close to hospitals where you can rent homes to doctors etc.
3) Target at least $1k/mo net profit. As you start to get 5, 10, 15 of these you will have great cashflow and own the assets.
4) Find low maintenance homes. Again this is for passive investors, not people looking to become real estate developers.
5) When you acquire look for light rehab or better. No major rehabs.
6) Tax benefits are great. 1031 exchange and other benefits.
7) Biggerpockets.com, realtor.com are both great sights to start researching. ⠀⠀
Of course, there is no one way to achieve investment success. Other ways have more or less risk and higher or lower returns. This advice was from the CEO of real estate at the largest bank in the country. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
Remember the RW Rule of Wealth: get your passive income to EXCEED your expenses when you retire and you will never go broke.