On Wednesday, April 26, 2023, we hosted our monthly YPN breakfast “Investing For REALTORS®” at our home base, Manny’s Deli. We were so excited to get together in person, connect with our peers and devour advice from a panel of investment experts. You can stay up-to-date on upcoming YPN events by following the YPN Facebook page!
THIS MONTH’S SPEAKERS:
READ KEY TAKEAWAYS:
Our guest speakers Eddie Garcia, Realty of Chicago LLC, Rashauna Scott, Keller Williams ONEChicago, Matt Thomas, Baird & Warner, and YPN Advisory Board Member Tyrone Green, Keller Williams ONEChicago, shared how to build smart investment strategies and tools to find and leverage long-term property investments.
MAXIMIZE LEARNING OPPORTUNITIES BY SHOWING UP, ESPECIALLY TO YOUR FIRST INVESTMENTS
Rashauna’s first-investment property was part of someone else’s condo flip. Despite having zero experience prior, she frequently checked in on the building’s progress, observing and asking questions to better understand the roles of the people involved – what every contractor did and what to do when something (like plumbing!) goes awry.
Both Eddie and Matt’s first-investment property was a fixer-upper project. They took on tasks themselves like installing kitchen cabinets and painting the walls. This hands-on approach not only saved them money but gave them valuable knowledge about home repairs and identifying when outsourcing was necessary.
USE DATA TO LEVERAGE YOUR INVESTMENT STRATEGY
Matt relies on market data to make informed investment decisions. Based on the data, he asks himself, “Does the property have long-term value?” If it only works if it has short-term rentals, that isn’t a sustainable profit margin. This data-driven approach allows him to easily adapt to changing market conditions with minimal risk to his long-term investment strategy.
FOCUS ON A MARKET OR NEIGHBORHOOD AND LEAN INTO IT
Eddie invests in only two neighborhoods. He has built strong, long-term relationships and developed trust with local officials, contractors and alderpeople. His investments go on the market more quickly, and he is a trusted, reliable economic presence in his markets.
WHAT DID OUR EXPERTS LEARN FROM THEIR FIRST INVESTMENT?
- Rashauna learned that you don’t need to be the big money investor on the project to be impactful. She saved $5k and invested in another development, and the rest was history.
- Eddie learned a lot about construction and general contracting by making a lot of mistakes on his first investment. But, he is grateful for the lessons it taught him.
- Matt felt hesitant to put money into real estate investing, but after he bought his first condo and eventually turned it into a long-term rental property, he realized he’d gotten over the initial fear.
WHAT COULD WE DO TODAY TO START INVESTING AS REALTORS®?
- All three experts have different approaches to funding their investments. Eddie prefers to save and purchase in all cash, while Matt finances most of his investments and Rashauna has done a mixture of both. However, all three agree that it is never too early to start saving.
- MAXIMIZE THE TOOLS YOU HAVE
- Eddie suggests using the MLS to its fullest potential. Once he finds a property he likes, he immediately calls the REALTOR® and starts a conversation. He has his research and is ready to act. Rashauna uses her client listing appointments as a way to find investment properties. She’s built trust and familiarity with her clients which make them more likely to consider her as a potential investor.
- BE A DEAL ENGINEER
- How are you bringing value to every phase of an investment deal? Rashauna suggests getting creative by leveraging partnerships, private investors, general contractor relationships, etc. She brings value from the start of the project to the marketing and well into the tenancy or property management stages.
- KNOW YOUR LOCAL LAWS
- Matt emphasized staying on top of local laws. For example, in various townships, legislation governing short-term rentals has changed their application process and transfer agreements, which affects investments in vacation markets. Knowing this can help you make a better-informed, realistic investment plan.
- USE TECH TOOLS
- STUDY THE INVENTORY
- Our experts all agree that it’s always a great time to invest, it’s simply a matter of how. Study the inventory on the MLS and better understand how long some properties have been on the market, what seems overpriced compared to similar properties in the neighborhood, look up taxes for the area (through Cook County’s Tax Portal) and more. be the expert in your market, and you’ll find great opportunities.
UPCOMING INVESTMENT TRAINING AND EVENTS
Save the date to attend NAR’s Real Estate Investment Summit, moderated by CAR President Sarah Ware. Learn strategies for generating consistent cash flow and building long-lasting generational wealth. This event is sponsored by NAR’s Center for REALTOR® Financial Wellness and the Center for REALTOR® Development and will be a three-part virtual series.
Registration opened as of May 1 — Register before May 12 to be entered into a $100 gift card raffle. Three lucky winners will be announced each session.
- Session 1: Increase Cash Flow Through Second Homes – June 7 | 1-3 PM CT
- Session 2: Invest in What You Know Best – June 14 | 1-3 PM CT
- Session 3: Build Generational Wealth With Investment Properties – June 21 | 1-3 PM CT
This September, take our Real Estate Investment course! Learn how to adapt core real estate skills to expand your business and learn new ones to serve clients who want to invest.