Why now is the time to read the ABC’s of Buying Rental Property

Don’t skate to where to puck is,
skate to wear the puck is going.
-Wayne Gretzsky

This is a great quote and something that really resonates with me at this time. You have to move toward where you want to be, not where you currently are. So many people want to learn to buy their first rental when the market is great and they are looking to buy. The truth is, you should learn how to buy your first rental before you are ready to buy it. You should then retain the knowledge you obtain in this book to educate yourself on when is the right time to buy the rental and what rental is the right one to purchase.

If this Pandemic has taught you anything, it should be you need a side hustle. You cannot let yourself to be dependent on one income, no matter how reliable you think that income is. Rental Properties are a great side hustle. If you buy the right rental property, at the right price, it can give you a consistent monthly income to supplement the income you have already established.

So why don’t more people use real estate as a side hustle? It is because they don’t understand it. The truth is owning a rental property can be a great experience or an awful experience. The determining factor is if you are educated on buying and managing a rental property or if you are learning as you go. I love learning as you go in a lot of things, but rental property isn’t one of them.

If you are interested in obtaining a rental, then take the time to read my book “The ABC’s of buying Rental Property.”  The next couple of years you may have the biggest buying opportunity you will see in your lifetime, so you need to be prepared. I wrote this book to prepare you with all of the information you need to know when purchasing your first rental. I am going to help to prevent you from making the same mistakes new investors make and to maximize your investment.

Click here to purchase my book on the ABC’s of Buying Rental Property!

Finding a Mentor

People always ask me to mentor them.

I probably get at least 3 messages a day for this request.

A true mentor is going to walk you through their experiences bad and good and look at your experiences and warn you of things they see going good or bad in a potential deal. They are going to show you how to handle questions and problems as they arise. They are going to be your teammate through it all.

Clearly, I can’t do that for every request I get. This is why I made the forum at KenMcelroy.com. Click here to check it out. The point of this forum is not only for me to answer your questions, but also for you to find mentors in one another. I absolutely will answer the questions you post on there, but also the connections you make if you try can be life changing. I believe there are all levels in the group, so finding someone to mentor you is something you should make a priority.

Other places to meet mentors would be meet up groups, networking events, LinkedIn, and even the old fashioned way of stopping by real estate investment offices! When you introduce yourself please remember if they don’t know you they may want something in return. I don’t recommend paying them a lot of money, because you haven’t even seen what they will offer. I do however believe you need to make it a win win situation for them.

How can you do this? It depends on you and what you’re good at. You can offer to work in their real estate investing office part time for free, yes I said it free! What you can learn could be life changing. You could actually start a real estate investing networking group. If you are the leader of the group people will be more apt to help you. You could even start a podcast and have real estate guests on your show. You have to be creative, but take your skills and offer them something useful in return.

Some of you may be saying, “I’m not working somewhere for free.” or “This is a lot of work.” I am here to tell you starting a business, even a real estate investing business is a lot of work. So if you aren’t prepared to put in work then it will be very hard to become successful. Those that put in the work and really learn the trade are the ones that can really kick some ass in the industry.

Until Next Time,

Ken

 

Facebook Forum – Question of the Week

If you are a premium member of KenMcElroy.com you are invited to join my new Facebook group! I’ll be jumping in to answer questions from you about real estate, leadership, entrepreneurship and life. I’ll hope you’ll join me in this new forum. If you’re not a premium member sign-up here, and then send a request to join us on the inside.

Each week I’ll pull a question from the forum and present it here. Below is this week’s question.

Jay asks:

After you raised equity, how did you secure financing?

Ken’s Answer:

“We typically have the DEBT first which tells me what EQUITY I need. Debt can be 60-80% of the total purchase or project and the equity is the balance. I rarely if ever do personal guarantees. These can take you down quickly…as I saw happen too many, many people.”

Are you a good leader?

If you want to improve your business and your life in general, you need to learn to be a better leader. Too many times people are either a pushover, a worker bee, or use their power to “lead” aka push people around. Yet none of that is being a true leader. I interviewed one of my closest friends and one of the best leaders I know, Tod Davis on my podcast. Todd started Life Lock from the ground up and sold it for a billion dollars. 1 billion! If you ask him why he was successful, he will tell you the learned how to be a true leader. These are the qualities he feels you need to be a real leader and have success in your business.

1. Allow yourself to be challenged. All too often we get in a position at work, with our family, or in our company where we shut down when someone challenges us. Why are we shutting down? It’s because we don’t want to be wrong. We think we know everything. Having an open mind is something every leader needs to have.

2. Make sure people can ask you for help. Make sure they don’t feel stupid when asking a question. You should be open to all questions and be patient with your answers. To found out the other three qualities of a leader and to have Todd motivate you to get your ass up and be successful. Click here to listen to the podcast.

Until Next Time,

Ken

Facebook Forum Question

Be sure to check in on the Facebook group each week where I answer questions that are asked by the community.

Jay asks:

I’m a believer in surrounding yourself with a team and we do that in new home construction. However, when we select a realtor, we do not put realtors on our team who also have their hands in building new homes. We avoid this because we know who’s product will be shown first.

My question is about property managers. We are wanting to enter multi family properties with long term hold, cash flowing, models. We would also like to work toward your strategy of value adds with cash out refinances to provide returns, tax free. The area we are exploring is about 85k people or so. The larger and better appearing property management companies own several of the larger apartment complexes in this market. How would you approach this, or what would you consider, to avoid simply paying your competition to fill their vacancies and aggressively represent your interests instead of only their own? Thanks!

Ken Answers:

A great question. Not all PM companies are created equal. I know large ones that are horrible. I know small ones that are horrible.

The key is the individual and a MF property manager may not do a great job on single family.

Find a local realtor or local investor that OWNS rentals. Ask them for referrals. Look for housing associations in your area where they have ongoing education, this could be a small owner group inside a larger apartment association. I know these are available in AZ, Texas and California. Just check your state.

How to Find a Mentor

People always ask me to mentor them. I probably get at least 3 messages a day for this request. A true mentor is going to walk you through their experiences bad and good and look at your experiences and warn you of things they see going good or bad in a potential deal. They are going to show you how to handle questions and problems as they arise. They are going to be your teammate through it all.

Clearly, I can’t do that for every request I get. This is why I made the forum at www.KenMcelroy.com . Click here to check it out. The point of this forum is not only for me to answer your questions, but also for you to find mentors in one another. I absolutely will answer the questions you post on there, but also the connections you make if you try can be life-changing. I believe there are all levels in the group, so finding someone to mentor you is something you should make a priority.

Other places to meet mentors would be meet up groups, networking events, Linkedin, and even the old fashioned way of stopping by real estate investment offices! When you introduce yourself please remember if they don’t know you they may want something in return. I don’t recommend paying them a lot of money, because you haven’t even seen what they will offer. I do however believe you need to make it a win-win situation for them.

How can you do this? It depends on you and what you’re good at. You can offer to work in their real estate investing office part-time for free, yes I said it free! What you can learn could be life-changing. You could actually start a real estate investing networking group. If you are the leader of the group people will be more apt to help you. You could even start a podcast and have real estate guests on your show. You have to be creative, but take your skills and offer them something useful in return.

Some of you may be saying, “I’m not working somewhere for free.” or “This is a lot of work.” I am here to tell you starting a business, even a real estate investing business is a lot of work. So if you aren’t prepared to put in work then it will be very hard to become successful. Those that put in the work and really learn the trade are the ones that can really kick some ass in the industry.

Until Next Time,

Ken