Building Wealth Slowly: Real Estate Insights for ADHD Entrepreneurs | Michael Sarracini
Feb 5, 2024
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Michael Sarracini, CEO of Keyspire, joins The Impulsive Thinker to discuss real estate investment for ADHD entrepreneurs. They explore understanding market dynamics, patience and strategy in real estate, and leveraging unique abilities. Financing options like conventional financing, private lending, and private equity are also covered.
Real estate investment requires a deep understanding of market dynamics.
Patience and strategy are key in the 'get rich slow' approach of real estate.
Deep dives
The importance of being in control of your future
The podcast episode emphasizes the speaker's personal journey of learning the importance of not putting others in control of their future. The speaker recounts their experience in starting a boy band and putting a record label in control. They realized that they wanted to be in control of their own future and not rely on external factors. This lesson led them to real estate investment, where they can take control of their own future.
Real estate investment as a means of control
The podcast delves into the concept of real estate investment as a way to take control of one's future. It highlights the idea that real estate investment offers more control compared to other forms of income, such as having a job or investing in the stock market. By investing in income properties, individuals have the ability to choose the property, select tenants, make renovations, refinance, and decide when to sell. This control over various aspects of the investment makes real estate an attractive option for taking charge of one's financial future.
The four ways to win in real estate investment
The podcast explores the four ways to win in real estate investment, which are cash flow, principal recapture, passive appreciation, and active appreciation. Cash flow is the income generated from the property after deducting expenses. Principal recapture is the amount of the mortgage that is paid off by tenants, increasing equity. Passive appreciation refers to the property's value increasing naturally over time. Active appreciation occurs when investors actively add value to the property, such as through renovations, leading to an increase in its worth. Understanding and considering these four ways to win can help investors assess the potential returns and make informed decisions.
The importance of financing and leveraging other people's money
The podcast emphasizes the role of financing and leveraging other people's money in real estate investment. It introduces three funding streams: conventional financing, private lending, and private equity. Conventional financing involves obtaining a mortgage from a bank or financial institution. Private lending involves borrowing from individuals, often at higher interest rates but with less stringent requirements. Private equity involves partnering with someone who provides the funds while the investor contributes time and expertise. Leveraging other people's money allows investors to pursue real estate opportunities with minimal personal investment and maximize their returns.
Welcome to another insightful episode of The Impulsive Thinker, the podcast tailored for ADHD Entrepreneurs. I'm your host, André, The Impulsive Thinker. In this episode, we dive deep into the realm of real estate investment with Michael Sarracini, CEO of Keyspire. Join us as we unravel the intricacies of building wealth in real estate, tailored for the unique mindset of the ADHD Entrepreneur.