Ep 152: John & Chris on Finding Opportunities in the Current Market
In today’s episode, John and Chris have a solo conversation where they discuss topics they are currently occupied with and their thoughts on the current state of investing and real estate. In their conversation, John and Chris discuss where they recognize current and future opportunities in real estate. John explains why he believes prospective opportunities currently lie in sellers and not product types. The opportunities lie in smaller scale landlords, who may be based out of state or don’t have enough time, as opposed to buying deals from large professional groups or very sophisticated investors. Tuning in you’ll hear John and Chris delve into how you can use your expertise to find broken deals and fix them, as well as how to gain crucial advantages in a competitive market. Later, John discusses how he forewent an opportunity to invest in self-storage to focus on multifamily investing. John and Chris also get into the tricky area of renovations, emphasizing the benefits of quality renovations and not having to do extra maintenance. Hear how investing in real estate is like acquiring a business, which is especially relevant when you consider the limited knowledge you have concerning what the property has undergone in the past. Our hosts also explore some key issues that have come about as a result of the COVID 19 epidemic, including how it has affected supply lines and the pricing of deals. For all this and more, join us today for a one-on-one with our hosts Chris and John!
Key Points From This Episode:
Join our hosts Chris and John as they discuss what’s on their minds.
John and Chris discuss where the current and future opportunities are.
John explains why he believes prospective opportunities currently lie in sellers and not product type.
How you can use your expertise to find broken deals and fix them.
Why you should find out what you do well and apply it to another market.
You will face competition in any deal you pursue.
The competitive edge that you gain when you have more information than your opponent.
John discusses why you can’t time every opportunity perfectly and how to decide where to focus your efforts.
Understanding what risks you’re willing to take when it comes to past renovations.
The benefits of quality renovations and not having to do maintenance.
Why investing in real estate is like acquiring a business.
The value in lower rent charges to ensure high occupancy and low turnover.
Why cash flow involved in a deal is important to John,
Recognizing when a deal is not as good as the seller is making out.
Staffing problems that have occurred with unemployment benefits.
Understanding how COVID 19 has affected the supply line and the pricing of deals.
“If everybody is going one direction, can you go in the opposite direction and maybe make something work?” — Chris [0:02:14]
“And I think the opportunities that lie in front of us are not buying deals from professional groups or buying deals from super sophisticated investors. The opportunities that are in front of us are smaller landlords, tired landlords, older landlords, out of state landlords.” —John [0:03:16]
“No matter what you go into, you're going to fight tooth and nail with the next best guy, all you have to be is a little bit better or know something that someone doesn't.” — John [0:07:23]
“Sometimes you have to strike out seven times before you get the three hits, you know, you still net your 300. But sometimes you can't pick, right?.” — Chris [0:18:14]
“When you're buying real estate, you're basically in mergers and acquisitions, nobody talks about it, but you're buying a business, right?” — Chris [0:30:30]
“If you need everything to go right, you're more likely to go wrong.” — John [0:34:46]
Links Mentioned in Today’s Episode:
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The Real Estate Investing Experience Podcast - https://podcasts.apple.com/us/podcast/the-real-estate-investing-experience/id1481520260