We talk about how to spot gold in the middle of a trashy listing, how you can turn someone’s laziness into a veritable source of income, and make a killing in the real estate industry without spending too much.

The points below are from the 31st episode of The Real Estate JAM, where we talked about what to look for when buying real estate property and how you can buy a multifamily property for the fraction of the cost. This is part two.

Tune in to the full episode on YouTube, Spotify, or Apple Podcasts.

Data Analysis and the Good Market

Using data analysis when buying a piece of property is very important. When you know the five metrics that matter in real estate and apply them to any market in the United States, it should be able to tell you if that specific market is healthy or not. However, it doesn’t guarantee that every single property on that market is a good investment.

The Five Resources of Real Estate

Knowing these five fundamental resources when it comes to real estate can help keep you safe in investing in real property. Find out if the people buying are making more money when they bought the property? Are the prices of the houses increasing? Is crime decreasing? Do they have a job? Do they fall under the scope of the 20% 30% 40% index?

Want to learn more? You can listen to the full episode on YouTube, Spotify, or Apple Podcasts.

Outline of the Episode:

• [00:58] Today’s guest is an active duty Navy Seal who also happens to be the CEO of realfocus.org, Ramsey Kyle. He’ll share tips on how you can transition from budget envelopes to owning 22 units.
• [08:47] Can you imagine buying a home and being able to rent out parts of the property so that you end up being paid to live in your own home? Yes, that’s possible.
• [14:49] Is house hacking for everyone? Can you make it work for you? Find out what you need to know to see if this is something that you can do.
• [16:49] If you plan to retire in the military, you will not be able to retire. Your pension won’t be enough, so you need to look at other options available to you as early as now and read up on actual investing.
• [20:03] How can you make money off what you have? How do you gain financial freedom? Do you think buying property to rent it out is a good investment?
• [23:34] If you’re an investor, find out what you’re doing that someone else can do for you for a fraction of the price. Remember that real investors spend their time coming up with revenue-generating tasks, not dry walling or mowing a lawn.
• [25:13] Have you read Rich Dad, Poor Dad? What are your thoughts about it? Is it really the game-changer everyone is saying it is? Ramsey gave his tenant this book and now she’s his property manager.
• [27:18] Having the right team makes all the difference. When you hire people to be part of your team, don’t just hire them because they are good. Hire them because they are hungrier than you in closing a deal, or they understand your language and will help you earn revenue in everything that you do.
• [31:06] You can’t always buy a property that’s already polished and good to go. Sometimes, you need to get a property and see its full potential, then make it happen. Also, know what you’re expenses would be and do the real numbers so you can make money.
• [34:56] Turn someone’s laziness into your pot of gold. Learn to search things the right way, and you’ll be able to buy properties for a fraction of the cost.
• [37:56] Investing in real estate means investing in your knowledge. Read Rich Dad, Poor Dad. Listen to podcasts. Get into the forums. Ask questions. Be unapologetic.
• [42:59] Doing great in one market does not mean that you will do well in another real estate market. They differ based on location and demographics. Real estate is not a cut-and-paste type of industry, and this was something our guest Ramsey learned the hard way.
• [44:45] Who is the mad scientist of multifamily? Are you interested in getting into multifamily real estate? If you are, you need to meet this guy because he is the real deal.
• [46:00] Focus on five key metrics to keep you safe when investing in real estate. 20% increase in population, 30% increase in median household income, 40% increase in household condo value, below 500 on the crime index, which is out of 1000.
• [47:09] Did you know that you could buy property in the same neighborhood but across the street, and there’s a chance that you could strike out and have a bad investment? Yikes!
• [52:18] Did you know that how much the city invests in public education has a direct effect on the value of the property located in that city? The more the city invests in its educational system, the better the talent pool that it will produce. The better the talent pool, the better the jobs that will be needed, and the better the jobs are, everything else will follow, including real estate.

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