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Zen and the Art of Real Estate Investing with Jonathan Greene

The Truth About Passive Real Estate Investing with Seth Bradley

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If you think short-term rentals of fix and flip investments are the best passive income investments right now, well, it’s not what you think. 

 

They’re great investments, but they’re far from passive. Sure, you can streamline your processes and involve technologies. But at the end of the day, these are active investments. 

Former Big Law attorney turned real estate investor, Seth Bradley, reveals that most of the real estate that people want to invest in isn’t actually as passive as they think. The truth is – it requires a strong concoction of hard work, networking, and perseverance. 

Therefore, it’s important that you know what you’re getting into before dipping your toes into the world of real estate investing – and that’s part of mindful investing. 

 

Tips for Getting Started in Real Estate or in a New Market

 

Whether you’re new in the real estate investing space or you’re looking to invest in a new market, there are things you need to look into to set yourself up for success:

 

1. Networking is key.

 

When you’re living thousands of miles away from your property and you don’t have eyes on it every single day or even every single week, you’re going to need a general contractor. And that is where it can be difficult – finding a great one!

 

You have to have a powerful, far-reaching network enough for you to ask for personal recommendations as part of your vetting process. Partner with people that are boots on the ground because they will have a better idea of what contractors are good and who they’ve worked with in the past.

 

2. Things to look for:

 

You can make money in any market. But here are key things to look for:

  • Population growth (i.e. employer diversity, industry diversity)

  • Is that population growth sustainable and are they getting overbuilt? 

3. Exercise due diligence.

 

There’s only so much you can do from afar. Again, this is why you have to partner with people that are boots on the ground and that live in that market. If they know the market like the back of their hand, they can get a better grasp on what’s going on there. 

 

Also, start digging down into, not only the neighborhood but the exact street where that property is located.

 

4. Look to syndication.

 

If you don’t want to be in the business of real estate, but you’d rather just invest in real estate, that’s where passive investing comes into play – and you can usually do this through syndication. 

 

5. Diversify your portfolio.

 

Look to investing in RV parks and multifamily, with different operators, and different teams, and get diversified across teams, locations, and asset classes.

 

6. Diversify your ideas.

 

Now, if your initial strategy doesn’t work out, try looking at all other options out there. Just because you want to flip doesn’t mean a flip is the best first investment in your market. Condos are an excellent first investment for a lot of people because you have the safety of the homeowner association and you’re not responsible for all the repairs.

 

Ultimately, all this takes perseverance. If you want to engage in anything long-term investing, understand that nobody wins every time. But there are always ways to minimize the strikeouts over time.

If you want to learn more about The Truth About Passive Real Estate Investing with Seth Bradley, check out www.trustgreene.com/podcast/zen/010.

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