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Zen and the Art of Real Estate Investing with Jonathan Greene

How to Get Bulletproof Cashflow with Agostino Pintus

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The journey to real estate wealth is rarely a straight line. Many investors don’t start out with a childhood dream of owning or investing in real estate; instead, they stumble upon the idea and dive into it as a career. However, to create the career you desire, finding a location where you can thrive as an investor is crucial. This could be your hometown or a different state altogether. The more familiar you are with an area, the more opportunities you’ll have for successful investments.

In this episode of Zen and the Art of Real Estate Investing, Jonathan sits down with Agostino Pintus, a seasoned real estate investor, syndicator, and the creator of Bulletproof Cashflow. Agostino’s journey began as an individual landlord while holding a high-level corporate position as a Chief Information Officer (CIO) to embarking on a full-time career in real estate investing, never looking back. Agostino shares his thoughts on gentrification, the key ingredients of a lucrative deal, and the untapped potential of land banks as a valuable source for new investments.

 

Agostino explains:

  • Two things make an investment deal juicy for him. They offer an opportunity zone, and they have a 15-year tax abatement.

  • Midwestern properties can make great investments. They’re fantastic cashflow markets, meaning their property management or maintenance costs may be a little higher. However, because they aren’t usually in appreciating markets and ebb and flow with the economy, it’s easier to have a net return on your investment.

  • If you own between two and 16 properties, you can self-manage those. If you own 80 or more properties, it’s too big for one person to manage independently. The danger zone is owning 17-79 properties because a lot of skimming occurs in property management at that level. 

  • Net leases can be incredibly beneficial to real estate investors. They’re single-tenant stores, but the stores aren’t owned by corporate. Instead, they’re owned by individuals, and the individuals lease those stores to the corporations in order for the stores to remain at those locations. It’s a corporate guarantee. If something happens with the store, the net lease is paid first–even before the corporate shareholders.

  • Land banks are a unique way to invest in land for almost nothing. Cities want to incentivize development, and the land isn’t generating revenue. They’ll sell it to investors who want to develop the land to get it off their books. You can often buy the surrounding properties at a low cost as well and develop them, paying no capital gains provided you stay in the deal for at least ten years.

 

With 20 years spent in real estate investing, you don’t want to miss Agostino’s advice for new real estate investors.

If you want to learn more about Zen and the Art of Real Estate Investing Podcast, check out http://www.trustgreene.com/podcast/zen/045

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