During this episode of the HyperFast Agent Podcast, Dan Lesniak and Sunil Saxena debut a new segment called HyperFast Wealth, and share their favorite ways to invest in real estate. There are many ways to make money in real estate and these ideas can jumpstart your path to accumulating wealth.
- Dan and Sunil want to educate people about the different opportunities that are available with real estate investing.
- There are many ways to make money with real estate.
- Dan didn't get into real estate professionally until 2011 and now they're selling $400 million per year.
- They also have a development piece that is growing. They have almost 100 units coming in the pipeline in the DC area.
- Buy & Hold is the classic rental strategy.
- This is a great way to make long-term wealth.
- Many years ago Sunil was renting a townhouse in McLean, VA. The landlord wasn't particularly sophisticated but she owned several townhomes and rented them out. Now she's worth 3-4 million dollars without doing much.
- Appreciation is the key to the buy & hold investment strategy.
- Almost always you will make money on holding a property for a ten year period.
- Cash flow is critical to understand when using the buy & hold strategy.
- Buy in an area where you know it's going to go up over time.
- Have some cash flow along the way. You're getting money every month during that hold and you're making value in it as you go along.
- If you do this right you will make money in multiple ways.
- You're not going to get rich overnight, but this is a side hobby that anyone can do.
- No matter what you're doing, find a way to do some kind of real estate.
- There are multiple ways to approach real estate projects where you add value.
- With the small ones you'll make less money but it will be a quicker turn and easier to get access to.
- Bigger projects typically earn a bigger paycheck, but it might take longer.
- In this strategy you buy something, you make it better and then you sell it to someone else.
- Value Add is more active than Buy & Hold.
- You can do one to two projects a year and still make very good money.
- The reason value add works as a strategy is because buyers have a hard time seeing past what a home looks like.
- The quickest project Sunil ever did was sixty days from buying it to selling it.
- Plan on 3-6 months for smaller projects and a year or more on larger projects.
- Wholesaling is another way to make money in real estate.
- With wholesaling, you're getting a property and then immediately selling it to a builder, developer, or another end user.
- This is much quicker than developing a property or building something new.
- If you're going to be good at wholesaling you need to be able to generate the leads, be able to analyze properly, and you've got to find the buyers.
- The most important thing to wholesalers is to know your numbers.
- As long as you present good deals to people there will be a ton of people that want to buy those deals.
- Becoming a private lender is a passive way to make money in real estate.
- If you get good at the first four things on this list then maybe you've got some capital and can get into private lending.
- Lending is truly a passive endeavor.
- The key skills on lending are vetting the person and the property.
- Getting the right people is the most important thing in lending.
3 Key Points:
1. Buy & Hold is the classic rental strategy and it’s a great way to build long-term wealth.
2. Value Add deals are more active than buy & hold and you can take these projects on at a small scale or a large scale.
3. Wholesaling is the process of acquiring a property then immediately selling it to a builder, developer, or another end user.
- “I feel everybody should be in real estate in some form or fashion, whether it's your primary profession or you're investing in it.” – Sunil Saxena
- “The nice thing about real estate is that it appreciates. That's the key to this whole strategy.” – Dan Lesniak
- “Anytime you can own real estate, nine times out of ten it's going to be a good thing." – Sunil Saxena
- “You can do one to two projects a year and still make very good money.” – Sunil Saxena
- “The most important thing to wholesalers is to know your numbers.” – Sunil Saxena
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