Accidentally Rich: The Secret Sauce to Tom Cruz’s Real Estate Success | The Jake and Gino Show
Sep 9, 2024
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Tom Cruz, a savvy real estate investor and creative financing expert, shares his remarkable journey from a mere $15K to over $650K in monthly passive income. He discusses how an unexpected turn with his dog's breed restrictions led him to thrive in Section 8 housing. Tom reveals the power of creative financing, effective tenant screening, and the myths around government income. Additionally, he humorously highlights the quirks of tenant preferences, showing how strategy and a bit of luck can transform the real estate landscape!
Tom Cruz's accidental entry into real estate with a problematic condo purchase led him to find lucrative opportunities in affordable housing.
The podcast highlights the critical role of creative financing and Section 8 housing in building a scalable and profitable real estate portfolio.
Tom emphasizes that cash flow is more important than timing the market, inspiring investors to act boldly despite prevailing fears.
Deep dives
The Multifamily Framework for Success
A proprietary three-step framework, consisting of buy right, manage right, and finance right, is emphasized as crucial for achieving financial freedom through multifamily investing. This method has helped numerous members close on over 80,000 units, highlighting its effectiveness in the multifamily real estate market. The framework empowers investors to make informed decisions, ensuring they select the right properties, manage them effectively, and structure their financing wisely. Attending the multifamily takeoff event is presented as an opportunity to gain insights into this results-based education.
Tom's Journey into Real Estate
Tom Cruise narrates his unexpected journey into real estate, which began with a problematic condo purchase due to a pet restriction that forced him to pivot into rental properties. Initially starting with wholesaling, he quickly realized the demand for low-income affordable housing, leading him to develop a portfolio that now generates over $650,000 in passive income monthly. His proactive approach included marketing strategies and researching the rental market, which allowed him to successfully navigate the challenges of real estate investment. This experience underscores the importance of adaptability and recognizing opportunities within challenges.
Overcoming Limiting Beliefs
The discussion emphasizes the persistence needed to push past common limiting beliefs regarding financial capacity and market timing when entering real estate investing. Tom asserts that the perfect time to invest never exists; it's about readiness to act and make informed decisions consistently regardless of market conditions. Navigating initial fears, such as the apprehension of renting out his first unit, led to notable successes. This journey serves as an inspiration for aspiring investors to rise above skepticism and take actionable steps towards their goals.
The Benefits and Challenges of Section 8 Housing
Tom elaborates on the advantages of investing in Section 8 housing, noting the guaranteed rental income from the federal government and stable tenant retention. These properties generally yield higher returns compared to standard rentals, with Section 8 specifically incentivizing landlords with increased rental prices. However, there are challenges associated with inspections and tenant screening that investors must address to optimize their portfolio. A balanced perspective on Section 8 demonstrates that while there are hurdles, the long-term benefits often outweigh them when managed correctly.
Scaling and Exit Strategies in Real Estate
Scaling a real estate portfolio involves utilizing creative financing options and strategic partnerships, as Tom describes in his own journey. He transitioned from single-family homes to larger multifamily units, leveraging seller financing and raising capital through partnerships to expand his holdings. The discussion also highlights the significance of having exit strategies in place, ensuring that investors are prepared for various market scenarios. This approach aims to not only sustain growth but also maximize profitability by optimizing the value of the investments over time.
In this episode of Jake and Gino, co-founder Gino Barbaro sits down with real estate investor and creative financing expert Tom Cruz. Tom shares his incredible journey, starting in 2012 with an accidental entry into real estate due to his dog’s breed restrictions, and now owning a portfolio that generates over $650K in monthly passive income!
From wholesaling to dominating Section 8 housing, Tom dives into his strategies for leveraging creative financing, scaling his portfolio, and finding success in real estate no matter the market conditions. Learn the secrets to navigating Section 8, the pros and cons of government-backed income, and why iPhone users make the best tenants (yes, really!).
If you're a new or seasoned investor, looking to break into affordable housing or scale your real estate empire, this is an episode packed with invaluable insights. Tom's journey proves that luck favors the prepared, and scaling from a single condo to hundreds of units is within your reach!
Key Takeaways:
How Tom got started with just $15K and turned it into millions
The importance of creative financing and Section 8
Why timing the market isn’t everything — cash flow is king!
The secrets to tenant screening and property management
Why managing properties with Cruise Control software transformed his business
Scaling from a single unit to over 700 units
Don’t Miss:
How Tom used TikTok to grow a following of over 1.3 million in real estate and education
The hilarious story of Tom’s first condo purchase (it all started with a dog!)
Join the conversation and learn from a true real estate innovator! Subscribe to our channel for more deep dives into real estate investing, multifamily strategies, and building a brand in the digital age!
We're here to help create multifamily entrepreneurs... Here's how: Brand New? Start Here: https://jakeandgino.mykajabi.com/free-wheelbarrowprofits Want To Get Into Multifamily Real Estate Or Scale Your Current Portfolio Faster? Apply to join our PREMIER MULTIFAMILY INVESTING COMMUNITY & MENTORSHIP PROGRAM. (*Note: Our community is not for beginner investors) 👉https://jakeandgino.com/apply About Jake & Gino Jake & Gino are multifamily investors, operators, and mentors who have created a vertically integrated real estate company. They control over $250M in assets under management. They have created the Jake & Gino Premier Multifamily Community to teach others a simple three-step framework for investing in multifamily real estate. Connect with Jake & Gino on the social media platform you are most active on: https://jakeandgino.com/link-tree/
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