MARKET & TRENDS
Of Pigs andWolves: ATale for Investors? HAVING HELP ALONG THE WAY TO GET A HEAD START ON THE WOLVES THAT THREATEN OUR INVESTMENT SUCCESS.
Essential Investor Education
Five-Week Coaching Program
by Jared Garfield, ROI Turnkey Properties
T he story of the Three Little Pigs features a BIG, BAD WOLF who is always huffing, puffing, and threatening to, “BLOW Your House Down!” It could be a tale about three investors that we can learn from. THE GREEDY PIG The first pig is greedy and wants to keep more of his money to him- self. He wants the cheapest possible house with ROIs and CAP rates that soar paper. For this pig, they are impossible to pass up. He buys an inferior product—a straw house. He clearly hasn’t done his demographic research. He gave no attention to things like crime, poverty levels, vacancy rates, income levels, or education levels. When the wolf comes huffing and puffing, this little pig quickly learns that investing in D and F areas leads to loss rather than profit. He is forced to run to his brother’s house for safety! THE SURPRISED PIG Our second investor pig has done a better job, building his house out of sticks. it cost more and the returns didn’t look quite as good on paper, but the neighborhood is bet- ter and there is some appreciation. His home needs less maintenance and attracts a better tenant in a
better neighborhood. In the end, however, the wolf still comes knocking. A C+ neighborhood can dip to C- and then D or F. Struc- tural obsolescence and expensive capital upgrades can reverse even the highest returns. Because the second pig wasn’t watchful, he met with a big surprise when the wolf came knock- ing. In the end, both the greedy pig and surprised pig were forced to think again about their investments. long-term. He knew tenants would pay for his home over time and that wealth is built from appreciation and cashflow combined. This led him to build a brick home in a B or B+ neighborhood. While more ex- pensive up front, the mere fact that his home and neighborhood were more desirable, proved his strategy to be wise. He was watchful and looked at demographics, employment, and population trends; and by buying at the low point of the market and doing the right amount of renova- tion, this pig created an asset that everyone wants. Not long after his bothers’ greedy and surprising investments left frowns on their faces, the profitable pig realized that buying the higher-class asset THE PROFITABLE PIG Our third pig invested for the
was the best way to build wealth.
Ask About Discounted Tuition When You Buy Properties
THE MORAL OF THE STORY As you consider which asset classes to invest in: A, B, or C, please consider neighborhoods, schools, demographics, growth, gentrification, and more. Solid investment homes can be in any asset class. But if other factors discussed here are ignored, those same classes can yield straw and stick investments as well. Having someone with the expe- rience and market knowledge to help you along the way is a great way to get a head start on the many wolves that threaten our invest- ment success. I invite you to con- sider investing in yourself as well as properties by taking my five- week self-paced course on invest- ing. At only $495, any profit-minded pig would want to participate! See the ad on the adjoining page for more information. •
ROI Turnkey Properties (roitk.com)
Jared Garfield is the CEO of ROI Turn- key Properties and the founder of Jar- ed Garfield’s Wealth Watch, a provider of real estate training and coaching. Jared’s 20 years of single-family
investing experience has positioned him to be an extremely effective mentor and coach. Jared is podcaster, radio host, investor, fund manag- er, trainer, and speaker. He is passionate about helping investors master the art of passive income through real estate investing.
Visit roitk.com to view our current inventory of turnkey and rent-ready investment properties. These properties have excellent cash flow, strong ROI, and low cost of entry. Contact an advisor today at email@example.com.
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