Welcome back to the REI Mastermind Network! In today's episode, titled "Processed," we have the pleasure of hearing from our host, Jack Hoss, and special guest Kevin Amolsch. They dive into the world of real estate investing and share valuable insights and experiences to help you navigate the industry with confidence.
From the uncertainty and lack of confidence when starting out, to the importance of that pivotal first deal, Jack and Kevin explore the growth and process that follows. They discuss the power of using a small literal notebook for daily tasks, the significance of customer relationship management (CRM) systems, and even delve into the lessons learned from historical financial crises.
Get ready to learn about the current economic climate, why land may not be an ideal investment choice, and the importance of cold calling and negotiation skills. Financing options like private money and hard money lending are also on the table, as our experts shed light on the criteria lenders look for and offer advice on how to approach loan conversations.
But it's not all about the money. Jack and Kevin also share their insights on the importance of focusing on client success rather than personal gain, and how this shift can lead to dramatic business growth. They touch on the challenges of the commercial space and highlight a new investment opportunity that allows anyone to get involved in real estate with just $10,000.
Throughout the episode, Jack and Kevin provide invaluable wisdom, including the importance of taking action, learning from failures, and finding your niche within the vast world of real estate. So fasten your seatbelts, listeners, because this episode is packed with knowledge and advice that will elevate your real estate investing journey.
Connect with Kevin Amolsch: https://pinefinancialgroup.com/
Topics & Bullets:
Starting out in real estate investing
- Uncertainty and lack of confidence
- The difficulty of the first deal
- Increased confidence and growth after completing the first deal
The importance of organization and prioritization
- Using a small literal notebook as a daily task list
- Relying on the notebook more than the phone
- The lack of customer relationship management (CRM) systems in business
Comparing the current economic situation to past recessions
- Research on the 2008 financial crisis
- Similarities between the current situation and the 1990s
- Acknowledging that every recession is different
Investing in land during the current economic situation
- Land not generating income
- Unentitled land not considered for development
- Lack of bridge loans for land during the approval process
- Cash as the main option for development
Cold calling as a strategy for generating deals
- Engaging in cold calling foreclosures, rent by owners, and for sale by owners
- Negotiating deals with property owners without much cash
- Involvement of private money or hard money lending
Understanding the lending process
- Brief experience in the conventional lending world
- The importance of credibility in hard money lending
- Having a plan for loan repayment and demonstrating value to the real estate investment
Shifting focus from self to clients for business growth
- Generating fees initially
- Prioritizing helping others make money
- Substantial growth once the focus shifted
Concerns and opportunities in the commercial space
- Bank's decision to stop investing in office spaces
- Providing a $4,000,000 loan for an $8,000,000 purchase and potential $40,000,000 project
- Website for obtaining information on commercial real estate
Anticipated challenges in commercial loans
- Large number of loans due in 2023 and 2024
- Doubled interest rates since loan origination
- Banks facing the dilemma of removing loans or requiring additional equity from borrowers
Opportunity for investment with lower minimums
- Ability to invest with a minimum of $10,000
- Exposure to Main Street over Wall Street
- Promise of an 8% return
Advice for success in real estate investing
- "Ready, fire, aim" mentality and avoiding paralysis by analysis
- Accepting failure, learning from it, and moving forward
- Starting with limited funds and being creative in deal negotiation
- Passion for financing and its importance in real estate deals
Working with hard money lenders
- Local lenders only able to help borrowers in their markets
- Providing advice and assistance to borrowers outside their market
- The importance of credibility and not manipulating values
The valuation process
- Local expertise in valuations
- Conducting a comparison grid, desk review, and property inspection
- Verifying the After Repair Value (ARV)
Finding focus within real estate investing
- The various ways to make money in real estate
- Advising against trying to do all methods at once
- Focusing on one method and evaluating its success before shifting if necessary
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"You can invest 10,000 hours and become an expert or learn from those who have already made that investment." - Jack