UPCLOSE & PERSONAL
STREET SMART
BUY-AND-HOLD STRATEGY GIVES ME THE FINANCIAL BENEFITS I WANT I absolutely prefer buy-and-hold. It is a passive investment method, along with notes, but notes don’t give you the full financial benefits that owning buy-and-hold rental properties does. Flipping is active, and you need a certain skill set for it. If you have that skill set, that’s great, but it does involve a significant level of “work” in addition to your investment. There are also severe tax penalties that you don’t find with buy-and-holds. Wholesaling is 100 percent a job. It’s not an investment strategy at all. It will teach you a lot about investing, yes, but it is a job. The method you choose should be completely based on your goals. My goals are to: not work, not have to do any- thing in particular at any given time and to maximize my financial gains. Buy-and-holds allow me just that. When I think of big-time investors who are modeling the type of life I want to live, they are all holding their properties. •
As You See It WHICH REAL ESTATE INVESTING STRATEGY DO YOU PREFER AND WHY?
ALI BOONE , HIPSTER INVESTMENTS WEB :: www.hipsterinvestments.com
BUY-AND-HOLDS AND FIX-AND-FLIPS FUEL OUR BUSINESS GROWTH At Bolthouse Homes, we do quite a bit of fix-and-flips as well as buy-and-holds for investors. We are a younger company, so the fix-and-flips really help us build up some capital. There is a lot involved with them, and it is not as easy as it seems. But we love being able to design a home and see the transformation happen. The buy-and-holds really have progressed for us recently, as the inventory is getting tighter. We can afford to pay a little more for buy-and-hold properties than we can if we fix-and-flip them, so this helps us be competitive with the market. This has also given us a very good option for our investors, as many of them want to build their passive income as well as generate capital from the fix-and-flips. •
LAND INVESTING IS NOT PERFECT OR EASY, BUT IT WORKS FOR ME After trying several different real estate investment strategies over the past decade, I’ve found that land investing is without question the most profitable, most scalable, least competitive, least risky and least known of business op- portunities in real estate today. When an investor can buy properties at a fraction of their fair market value—which isn’t difficult when you know where to look for the right kinds of motivated sellers—it allows them to then re-sell these properties at a substantial profit, all while giving the end buyer a huge amount of built-in equity. Land investing isn’t a “perfect” or “easy” business model, but when you compare it with every other real estate investing strategy with a huge amount of work and risk built into each one, land investing has always been an easy choice for me. It works astoundingly well and doesn’t require loans, monthly payments, construction projects or any other hassles that get in the way of progress. •
JOHN MATTHEWSON , OWNER, BOLTHOUSE HOMES WEB :: www.bolthousehomes.com
WHEN CASH-FLOWING DEALS ARE LEAN, WE TURN TO NOTES AND WHOLESALING Real estate offers investors two primary ways of making money: cash-flow and capital appreciation. The risk of getting hurt in a market correction increases, however, when markets rise quickly and near or surpass historical highs—particularly when the potential cash flow from underlying rents dips to low or negative levels, as we see hap- pening in many markets in Florida. In a market in which finding cash-flowing deals becomes challenging, we tend to favor investing in notes and whole- saling as our preferred strategies. Wholesaling offers less “carry risk,” a risk more associated with buy-and-hold strategies, and down payments, 20 percent or greater, with note investing can offer an equity cushion if ever faced with having to foreclose. There are still opportunities in many markets with flipping and buy-and-hold strategies. But in much of our mar- kets, deals are harder to find and mitigating risks becomes more important. At the end of the day, the best strategy is to know your market economy and submarkets intimately. •
SETH WILLIAMS , RETIPSTER WEB :: www.retipster.com
NONPERFORMING NOTES LET US PROSPER WHILE HELPING OTHERS Skyline Investment Realty’s most preferred real estate investing strategy is nonperforming notes because they’re an opportunity for us to prosper financially, but at the same time, we can potentially help the homeowners stay in the home that they love. By being involved in the purchasing and selling of nonperforming notes, we have a number of avenues to create viable solutions for current homeowners, which then empowers them to do what’s best for them. Additionally, we enjoy that we’re not confined to one area geographically. This allows us to broaden our business profile and reach more clients on a nationwide level. •
ERIC ODUM , COMMERCIAL REAL ESTATE BROKER AND PODCAST HOST, ORLANDO, FL WEB :: www.investfloridashow.com
JEFF CONWAY , OWNER, SKYLINE INVESTMENT REALTY WEB :: www.facebook.com/skylineinvestmentrealty/
54 | think realty magazine january :: february 2017
thinkrealty . com / mag | 55
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