Podcast Summary
Focusing on adding value and tax benefits in real estate investing: Networking, past experiences, tax benefits, and efficient lead generation are key to building a successful real estate portfolio. Consider both positive and negative motivators, and explore passive investing opportunities through private real estate funds.
Real estate investor Jason Lewis shares his unique approach to building a successful portfolio by focusing on adding value and taking advantage of tax benefits, specifically the 2-year owner occupant tax benefit. He emphasizes the importance of networking and building relationships to uncover potential deals. Additionally, Jason discusses how past experiences can serve as motivation. The quick tip for the episode encourages investors to consider both positive and negative reinforcement as motivators. The episode also highlights the importance of efficient lead generation through tools like DealMachine. Lastly, the episode introduces the opportunity for accredited or high net worth investors to invest passively in real estate through a private real estate fund like PPR Capital Management.
Investing in new construction rental properties with Rent to Retirement: Secure cash flow, appreciation, and equity with minimal upfront capital through discounted prices and low investor loans in new construction rental properties.
With Rent to Retirement, you can invest in new construction turnkey rental properties with little to no money down. Through discounted prices and low investor loans, you can secure cash flow, appreciation, and equity with minimal upfront capital. Jason Lewis, a successful real estate investor with a $25,000,000 portfolio, shared his background and experiences, including an intriguing story about his father selling a bull to John Wayne. The discussion also touched on the challenges Jason faced growing up on a farm and how they influenced his determination to succeed in real estate.
Growing up with adversity shapes perspective: Adversity can instill a strong work ethic and entrepreneurial mindset, fueling determination and adding value each day
Adversity and hardship can shape our perspectives and fuel our determination. The speaker grew up on a farm, with the expectation of following in his father's footsteps. However, when his father overextended himself financially and lost the farm, the family was forced to move. This experience instilled in the speaker a strong work ethic and entrepreneurial mindset, which he carries with him to this day. He learned the importance of perseverance and adding value each day, even when faced with challenges. Despite the sacrifices that came with this mentality, it became a guiding principle for him in both his personal and professional life.
From avoiding bankruptcy to finding creative ways to save money: The speaker's financial goals and experiences have shaped his mindset towards frugality and finding ways to save money, inspiring listeners to adopt similar habits and share their own money-saving hacks.
The speaker's financial goals and experiences, including a desire to avoid bankruptcy, have shaped his mindset and behaviors towards frugality and finding ways to save money. He shares various examples, from small decisions like buying iced tea instead of soda or avocados instead of guacamole, to larger ones like using Starbucks' free refills or buying a house with a large yard for growing food. The speaker's approach is driven by a desire to avoid financial hardship and a sense of adventure in finding creative ways to save money. He encourages listeners to adopt similar mindsets and share their own money-saving hacks.
Learning Skills and Earning Money with 4-H: 4-H program offered Jason valuable skills, financial gains, and life lessons through raising and selling show hogs.
Participating in 4-H at a young age allowed Jason to learn valuable skills and earn money by raising and selling show hogs. The 4-H organization, which focuses on health, heart, hands, and head, encourages volunteering, helping others, and personal growth. Jason's dedication to the program paid off when he sold his grand champion hog at the county fair and used the profit to save for college. The sale of the hogs benefits local farmers and is often supported by banks, dealers, and other industry professionals. The hogs are either processed for the buyer or sold in bulk to a packing plant. This unique experience not only provided financial gains but also taught Jason essential life skills and the importance of hard work and perseverance.
Lessons from Raising Hogs as a Kid: Upbringing on a farm taught valuable lessons about capitalism, responsibility, and financial management. Raising hogs resulted in significant profit, instilling importance of adding value and fear of debt.
The speaker's upbringing on a farm taught him valuable lessons about capitalism, responsibility, and financial management at a young age. He shared a story about raising and selling hogs, which resulted in a significant profit, and how his mother cosigned the loan for his bank account, making him legally responsible for the animals and the debt. This experience instilled in him the importance of adding value, the fear of losing everything, and the benefits of growth. The speaker also mentioned his later success in real estate investing using 1031 exchanges and the role of First American Exchange Company in facilitating these tax-deferred transactions. Overall, the speaker's experiences demonstrate the importance of learning financial principles early in life and the potential for significant financial gains through hard work and smart investments.
Passive Real Estate Investing: Opportunities for Stable Income and Capital Preservation: Experienced firms like BAM Capital offer high returns and capital preservation from institutional-quality assets, while platforms like Connect Invest enable passive investing with low minimums and fixed monthly income. Pine Financial Group offers passive income through real estate lending.
Experienced real estate investment firms like BAM Capital and alternative platforms such as Connect Invest offer various opportunities for passive real estate investing, providing attractive returns, capital preservation, and freedom from property management hassles. BAM Capital, with over $1.3 billion in transactions and a strong track record of delivering high IRR and consistent preferred return distributions, targets institutional-quality assets. On the other hand, Connect Invest, an online investing platform, allows starting with just $500 and offers fixed monthly income through short-term notes on a diversified real estate portfolio. Meanwhile, Pine Financial Group offers passive income through lending to house flippers with a targeted 8% preferred return and 70% profit split. These options cater to investors seeking stable income, capital preservation, and the benefits of real estate investment without the active involvement in property management.
Seizing Opportunities and Adding Value for Wealth: Start house hacking every house you live in, turn it into a rental after 2 years for tax benefits, seize opportunities, and make the most of them to build wealth.
The speaker's overall strategy for building wealth was based on being opportunistic and adding value. He started house hacking every house he lived in since 2006, turning each one into a rental property after living there for two years to take advantage of the tax benefits. He's amassed over $1.9 million in tax-free income through this method, and still owns his first two houses. The speaker's approach was to seize opportunities and make the most of them, whether it was living for free in a rental or finding undervalued properties to add value to and sell for a profit. His goal was to replace the farmland his father lost and reach a net worth of $1 million by age 30, and he achieved it through a combination of hard work, strategic planning, and taking advantage of market conditions.
From $2,000,000 to $30,000,000: The importance of timing, experience, and focusing on equity and cash flow in real estate.: Timing, experience, and a focus on equity and cash flow are crucial for real estate success. House hacking can enable financial freedom, travel, and giving back.
Real estate success doesn't only depend on hard work and personal sacrifice, but also on timing and experience. Jason shared his journey from having a goal of $2,000,000 in real estate by the age of 35, to eventually amassing $30,000,000. He emphasized that the numbers that truly matter are equity and cash flow, rather than the number of properties or doors. Jason also defended house hacking as a valuable strategy, despite some viewing it as a beginner tactic. He shared how it has enabled him to achieve financial freedom, travel, and give back, and he plans to continue house hacking throughout his life. Currently, he's working on a house hack project involving a brand new build duplex in Denver.
Reaching real estate goals with determination and creative financial planning: Despite market challenges, determination and smart financial moves like house hacking can help reach real estate goals. Learn, hustle, and make decisions that align with personal values, while avoiding risky investments.
With determination and creative financial planning, it's possible to reach real estate goals, even in a challenging market. The speaker shares his personal experience of making financially-driven moves, house hacking, and living for free or close to it. He emphasizes the importance of being willing to learn and hustle, and making decisions that align with personal values. The speaker also shares a cautionary tale about investing in syndications and losing everything, which led him to build a foundation on his own terms and eventually start raising capital and forming partnerships. Ultimately, the goal is to add value and help others, rather than just accumulating material wealth.
Real Estate Investing: Risks and Rewards: Approach real estate investing with caution, analyze potential risks, and learn from past mistakes for success.
The real estate industry, like any other, has its share of risks and uncertainties, even for those with little experience. The recent popularity of syndications and funds raising for real estate investments has led to both success stories and cautionary tales. Some individuals have made significant profits, while others have lost money due to bad deals and unexpected market changes, such as rising interest rates. The speaker, who has a personal connection to the industry and its challenges, emphasizes the importance of being cautious and analytical when investing. He advises against the "fake it until you make it" mentality and encourages investors to consider the potential risks and downsides of a deal. Success in real estate, as in any industry, is not always about flashy cars or social media presentations. Instead, it often requires careful planning, a solid understanding of the market, and a willingness to learn from past mistakes. It's important for potential investors to approach real estate investing with a healthy dose of skepticism and to do their due diligence before making any major financial commitments. The speaker's experience serves as a reminder that the road to success is not always smooth, and that setbacks and challenges are a normal part of the process.
Cautious Investors Prioritize Low-Risk Approach: Successful real estate investors often prefer a low-risk approach, investigating partners thoroughly, and keeping properties underleveraged to maintain financial comfort.
Successful real estate investors often prioritize caution and a low-risk approach over flashiness and high leverage. The speaker shares his personal experience of observing multimillionaire investors who prefer to keep a low profile and maintain a comfortable financial situation. He also emphasizes the importance of thoroughly investigating potential partners, even if they come across as flashy or charismatic. Additionally, the speaker shares his philosophy of keeping his properties relatively underleveraged to avoid the risk of losing it all. While he acknowledges that a higher risk, higher reward approach may be suitable for some, especially in the beginning of one's career, he personally prefers a more conservative approach based on his own experiences and comfort level.
Learning from my father's mistakes and Grant Cardone's successes: Explore unconventional methods, stress test interests, and focus on basics for successful real estate investing
Growing an empire in real estate comes with its own set of risks and challenges, and it's essential to stay focused and lean to avoid potential pitfalls. My father learned this the hard way when he expanded beyond single family homes and found himself heavily leveraged with a lot to lose. On the other hand, Grant Cardone's all-in approach paid off. Ultimately, it's up to each investor to decide their path and what will make them happy. Now, for some practical advice, consider the following three strategies: 1. Utilize unconventional methods to find deals, such as talking to cleaners, attending garage sales, and networking with delivery drivers. These individuals often have valuable insights into homeowners' situations. 2. Stress test your interests and abilities before committing to a specific real estate investing strategy. For instance, help a friend renovate a house or door-knock potential deals to determine if you enjoy the process. 3. Focus on the basics like Craigslist, White Pages, and direct mail. These methods may not be glamorous, but they can yield successful results with dedication and persistence.
From 4-H member to successful real estate investor: Find what you enjoy and are good at in real estate, try different roles, and build a financial fortress through long-term investments
Exploring new opportunities in real estate can lead to personal growth and financial gains. Jason shared his journey from 4-H member to successful real estate investor, emphasizing the importance of finding what you enjoy and are good at in the industry. He encouraged listeners to try different roles, like property management, and offered the example of meeting a property owner at a garage sale to close a deal. Building a financial fortress through real estate was another key point, focusing on long-term investments rather than just scaling for the sake of it. Jason's advice is to be persistent and willing to put in the work, as opportunities can arise unexpectedly. To learn more about Jason, follow his journey with J Lew on social media, or check out his Creative Real Estate podcast. To connect with Rob, find him on Instagram and YouTube at Rob Built.
Find an investor-friendly agent for long-term success: Navigating real estate market challenges requires a long-term presence and an investor-friendly agent's expertise to analyze numbers and neighborhoods, increasing confidence in investment decisions.
Navigating the ever-changing real estate market can be challenging, but the goal of financial freedom remains the same. Even in a market with shifting rates and whirling headlines, the best investors understand that it's not about timing the market perfectly, but rather about having a long-term presence in it. If you're ready to get started or take your real estate investing game to the next level, finding an investor-friendly agent is a crucial step. With BiggerPockets Agent Finder, you can quickly match with an expert local agent who can help you navigate neighborhoods, analyze numbers, and take action with confidence. This free resource is exclusive to biggerpockets.com/deals. Remember, the content of this podcast is for informational purposes only, and all investments involve risk. Always consult with qualified advisors before making any investment decisions. BiggerPockets LLC disclaims all liability for any damages arising from the use of information presented in this podcast.
