STRATEGY
BUY & HOLD
Great Deals MAKING THE TIME TO WORK ON YOUR REAL ESTATE PORTFOLIO
by Michael Zuber
B
usy professionals sometimes think they can’t start investing
then you have a single metric to compare any type of property.
asset type. The more specific the better as you want to create type search criteria. Something like 3 Bed, 2 Bath Homes, in this zip code, between 1,200 and 1,400 sq ft. You want your first focused list to be between 20-40 listings because you are about to go to work. 2) Once you have this list, you must look at it every day and see where things change. I did this exact process for 10 years straight and it still helps me to this day. You will start to see the market move as deals come and go. This process should be repeated for 30-60 days and is the basis for understanding what is a bad, average, good, or great deal.
in real estate because they are too busy, and it takes too much time. While a demanding full-time job might eliminate some investing options like flipping, it does not eliminate the most powerful wealth-building vehicle: Buy and Hold Rentals. Holding positive cashflow properties with conservative fixed-rate financing is a great option every busy professional can leverage. In fact, getting four rental properties will dramatically change your financial future. But where do you start? All new investors should start with some basic “homework” before they rush in and start writing offers. To help with this, here are three steps that I recommend you execute to learn and protect yourself from bad deals. These three steps will take time but should cost you zero dollars to research and execute.
The goal of this simple exercise is to understand what your market produces for an “average deal.” For example, maybe in your market the house above produces a return of five percent. If this is true, then your job is to find good or great deals that produce six or eight percent. If you’re a busy professional looking to invest in real estate, do the work above and write offers on only good or great deals and that will make a huge difference as you look to get four rental properties that can change your financial future. •
Michael Zuber worked in the Silicon Valley since graduating from Santa Clara University 20+ years ago. After wasting time and money in his 20s, he
3) Learn the math behind comparing buy and hold
began investing buy and hold rental properties and never looked back. Michael grew his rental property portfolio from a single rental house to financial freedom in 15 years. Now that he no longer has a day job, he shares his story via his self-published book and YouTube Channel, both called One Rental at a Time.
properties. Divide the yearly net cashflow by all out-of- pocket cash to make ready. This fraction multiplied by 100 percent will give you a yield, and
1) Choose your market and your
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