What Fireworks Teaches Us About Real Estate Investing

Fireworks
Happy 4th of July! I want to take a moment to reflect on fireworks. Not the little ones, but the big fireworks we all love to watch. Isn't it fun to sit back and admire the explosions? To marvel at the bright lights and loud booms? To delight in the grand finale and wish for more when it's done? It's a great time for everyone. It's a 20 minute show that fills you with wonderment. 20 minutes. That's it. But of course, like most great things there's a ton of hard work leading up to...
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What’s the Best Legal Structure for Owning Real Estate?

Nested Legal Structure
For my next real estate purchase, I'm investigating partnering with a couple dudes. Their construction experience and my property management experience should make for a solid team. Together, we want to buy distressed multi-family properties, fix them up and rent them out. These partnership discussions naturally brought up questions on the best legal structure we should use for owning these properties. To help figure out what to do, we met with a lawyer, an insurance agent, and an accountant...
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Find The Wedge When Buying Rental Real Estate

Find The Wedge
In business school, a strategy professor of mine, Rob Wiltbank, shared the secret to successful acquisitions. He drew a line on the board and said, "This is a company's current value over time. When you buy it, this is what you're paying for." Then he drew another line above it (much like the picture above). "This is what you want the company's value to be after you buy it. See this gap? (As he runs his finger between the two lines) That's the wedge. This is where you add value to the com...
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My Disillusionment With The Stock Market

Stock Market Returns
I grew up in an interesting household. My dad owned and operated a construction business and my mom helped people plan and save for retirement. Whether on purpose or not they both instilled a couple of beliefs: Owning your own business is harder work than having a job, but the control and flexibility are worth it. Think way ahead into the future and plan for it. Here's an example: When I was 16, I was able to work for my dad because he owned the business and could decide to hire me....
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