Ep 74: Investing in Your Backyard and Being Patient with Jerome Myers
Landing finance on your first deal is like leaving college only to find that entry-level jobs require you to have about five years of experience. It's a classic chicken and egg situation. With financing, banks and investors are hard-pressed to trust you with their money without a track record. Jerome Myers, a self-proclaimed corporate dropout, is today’s guest, and he shares with us how he overcame this barrier to entry by using a joint venture model rather than syndicating to get his start in real estate. After kicking off the episode by learning more about this, we move onto the importance of knowing where you are investing. The trend is increasingly to invest out of state, and while some cities are too expensive to invest in, nothing replaces boots on the ground knowledge of an area. Jerome shares why he sticks to Greensboro and how this is more efficient for him. From there, we delve into the importance of expertise. With the real estate investing space becoming increasingly crowded, there is some serious corner-cutting happening. We discuss the slow, measured approach that real estate requires. Finally, we wrap the show up with Jerome sharing about his risk-averse strategy and why he avoids distressed properties, and not underestimating the cost and time of a big value-add. Be sure to tune in today!
Key Points From This Episode:
Hear more about Jerome’s transition from corporate America to real estate investing.
The difficulty of getting your first loan and how Jerome used a joint venture to get started.
How being a real estate investor gives you a different perspective about a neighborhood.
Some of the best advice John has received about driving properties.
Create your own experience and actively explore where you want to invest.
Why Chris thinks that buying out of state can be an excuse for working from behind your computer.
Learn more about why Jerome sticks to buying in his backyard and the benefits of this.
Don’t take other people’s money if you’re going to lose it – Preservation of capital is important.
Learn more about Neal Bawa’s interesting idea to sell the syndication model.
Think about the exit plan as a crucial part of your overall business plan.
Consider other factors that affect what people would be will to pay for a property, like their other business ventures.
Hear about Jerome’s workforce housing focus in Greensboro, and what’s the in the pipeline.
Why Jerome and his team do not pursue very distressed properties, especially now.
Never underestimate the time and cost of a heavy lift; it’s always more than you think!
John and Jerome share their war stories; why Jerome calls deals ‘wild animals’.
Contacting Jerome and how to learn more about his investment thesis.
“Being the expert is undervalued right now. People are just completely disrespecting the craft. Expertise matters, and it’s going to matter even more with the market we’re in today.” — Jerome Myers [0:22:22]
“I don’t think you have a very long career if you’re only thinking about filling your own pockets.” — Jerome Myers [0:26:42]
“I thought that I was really good at estimating costs. But every time I do a project, it costs more than I expected it to cost and it takes longer than I expect it to take.” — Jerome Myers [0:36:49]
“I do want the bigger returns. I do want to double people’s money over the course of five years, but I want to do it in a calculated risk manner. There’s only so much of the risk you can manage out and there’s only so much of the risk you can plan for.” — Jerome Myers [0:40:12]
Links Mentioned in Today’s Episode:
Get in Touch
Interested in Investing With Us? Click Here
Connect with Chris - https://linktr.ee/chrisgrenzig
Toro Real Estate Partners - http://tororep.com/
The Real Estate Investing Experience - https://www.thereiexp.com/
The REI Experience YouTube - https://www.youtube.com/channel/UCjt6pmkA8ogACZ26oqhBM0g
The Real Estate Investing Experience Podcast - https://podcasts.apple.com/us/podcast/the-real-estate-investing-experience/id1481520260