In this episode of the High Return Real Estate Show Jeff Schechter and Jack Gibson discuss how Jack has built up his real estate portfolio from just 2 properties all the way up to 72.

Questions Asked:

  • What is the overview of what happened in the last 12 months?
  • What was your personal motivation?
  • What strategies did you use to grow your portfolio?
  • Tell us about your cash out refinance package.
  • Can you tell us about how you managed to set up some private investor deals?
  • How does discipline factor in?
  • How did you manage to get a discount on some of your properties?

Key Lessons Learned:

Building a Portfolio

  • Overnight success is actually a long term process.
  • Buying an asset instead of a liability is the core of the strategy. It’s about making your money work hard for you.
  • Owning real estate creates a passive flow of income that can allow you to spend more time with your family or whatever else motivates you. It can help you live the life that you always wanted.
  • It’s very important to have multiple sources of income, owning real estate is a great way to supplement your income from your work or investments.
  • It’s not always a good time to invest in real estate, it may make sense for you to build up a bank of cash before diving in.
  • The reality of real estate is that C class property will often have better price to rent ratios than the prettier A and B class properties.
  • Most people don’t realize you can buy property within your IRA or 401k if you have the appropriate plan documents. Most financial advisors are not well educated when it comes to this kind of self directed retirement account.
  • A HELOC is a very fast way to raise funds that you can use to buy properties with cash and get better deals.
  • A commercial or portfolio loan is a convenient way to simplify the process of leveraging more than one property at the same time. A cash out refinance deal can actually yield infinite returns on your investment.
  • Building a network can help you secure private money that would otherwise be impossible to access. You may end up paying higher interest on private money so make sure the deal makes sense for you before moving on it. When pitching a private investor, make sure that the deal is beneficial to the person you’re pitching to.
  • There are two ways to manage your finances, offensively and defensively. You can either increase your income or decrease your debts and liabilities. The best strategy is to combine both approaches and increase the spread between your income and monthly expenses.
  • There is a lot of value in referring investors and clients.

Education

  • Podcasts are a great way to understand the ins and outs of the real estate market.
  • 97% of all retirement money is tied up in the stock market.
  • The whole game is not about acquiring new things, it’s about creating awesome experiences that bring happiness.
  • 85% of the happiness in your has to do with the quality of your relationships. Conversely, 85% of your misery comes from your bad relationships.

Resources Mentioned

Rich Dad Poor Dad

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