Real estate enthusiast Alan Corey joins the hosts to discuss all things real estate investing, including the current market state, why first-time buyers shouldn't wait, leveraging properties, Airbnb investments, and the role of insurance in risk mitigation. Corey, a 'real estate maximalist', shares his unwavering passion and insights into maximizing returns in the real estate market.
Real estate success depends on cash flow, not interest rates.
House FIRE method: match properties to specific bills for steady income.
Specialize in a niche area to gain expertise and maximize efficiency in investments.
Deep dives
Finding Success Through Real Estate Investing
Real estate investment success is not tied to interest rates but rather to finding properties that cash flow from the beginning. Aiming for fixed-rate mortgages and a diversified portfolio of properties can mitigate risks and fluctuations in interest rates. By focusing on cash flow, long-term stability, and expert knowledge in a niche, investors can build a successful real estate portfolio over time.
Creating a House Fire Method for Financial Independence
The house fire method for financial independence through real estate involves strategically purchasing properties that generate enough cash flow to cover specific bills, creating a steady income stream. This practical approach circumvents the traditional '25 times expenses' rule and instead matches properties to specific bills, ensuring a reliable source of income over time.
The Importance of Starting Small and Becoming an Expert
Starting small and focusing on a specific niche, such as duplexes or quadplexes in a particular area, allows investors to become experts in that market and build a solid reputation. By mastering one niche before diversifying, investors can gain valuable knowledge, experience, and network connections to make informed real estate investment decisions.
The Importance of Specializing and Getting Reps in Real Estate Investing
Specializing in a specific type of property, whether condos, townhouses, or single-family homes, is crucial in accelerating expertise in real estate investing. By focusing on a niche area and gaining experience through repetitive actions, individuals can become more proficient in the field. It is advised to avoid distractions from new trends or products in the market and instead stay committed to building expertise in a chosen property type.
Maximizing Efficiency in Real Estate Investments Through Small Multifamily Properties
Investing in small multifamily properties, such as duplexes, triplexes, or quads, is recommended for maximizing efficiency and reducing expenses in real estate investments. By consolidating maintenance, tax bills, and other costs into a single property, investors can streamline operations and minimize financial obligations. The 30-year fixed mortgage option for small multifamily properties provides stability and allows for scalable investment strategies.
We love real estate! Any long-time listener of the podcast knows that we’re fans of investing in real estate. We both have a handful of rentals and a decent chunk of our financial success is due to those houses! That being said, we also approach the conversation with a degree of reservation because we don’t think it’s for everyone- it’s not nearly the source of passive income like many would lead you to believe. Not to mention we happened to dip our toes in the waters at a historically great period of time. So we’re nuanced, but our guest today is NOT! Here to preach the real estate gospel is Alan Corey who is all-in: he’s a realtor, author of A Million Bucks By 30 as well as House FIRE, which we’ll be discussing today, and of course an investor himself. Alan is a self-proclaimed ‘real estate maximalist’ here in our wonderful city of Atlanta, and we’re going to talk about all things real estate- the current state of the market, why first time home buyers shouldn’t wait, why he doesn’t care about interest rates as an investor, the role of leverage when investing in real estate, if umbrella insurance is enough to mitigate risk, how to think about investing in an Airbnb, vacation rentals, and more!
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During this episode we enjoyed an Oost by HighGrain Brewing- a big thanks to Mike and Kristy for donating this one to the pod! Please help us to spread the word by letting friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular listener, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to change the conversation around personal finance and get more people doing smart things with their money!