Multi-Family Investing Meeting

Here are some of the basic ideas that I picked up around the Multi-Family RE Investor Meeting:

• Be patient.
• Be persistent, persist & learn from failure.
• Don't ever give up, continue to make offers.
• Rehab A & B Type properties to the max.
• Mindset is key, one of the biggest ingredients to success.
• Create systems for yourself & your business & stick to them.
• Network with people who have the experience.
• Don't listen to people who are negative, pessimistic, or have less experience than you.

There seemed to be a consensus around the table stating that if you are going to do anything in multi-family real estate, do 50 units or above for a number of reasons.

To begin with, apparently, the underwriting process is much smoother with bigger deals. The smaller deals (4-49 units) look too much like residential to commercial lenders, and they look too much like commercial to residential lenders. Apparently the "bigger money" (above 5-10 million dollars) is easier to get, and it is much looser.

Also, on another note, it's going to be essentially as easy to hire a great property manager on a 36 unit building as it would to hire one one a 1000 unit property. It is better to overpay a great property manager, than to underpay a bad one.

"If I had eight hours to chop down a tree, I'd spend six sharpening my axe." -Abraham Lincoln

Work on your business, not in it. Meaning spend more times working on the systems and hiring the people who will implement them, than doing the actual work yourself (i.e. hire a competent RE CPA instead of trying to do all the bills and taxes on your own). It's too easy to get sucked into the day to day details of the operation, so learn how to delegate properly (property management, bookkeeping, etc).

"Business and investing are team sports."- Robert Kiyosaki

Since Real Estate Investing is a team sport, surround yourself with the best people in their respective areas...Realtors, engineers, attorneys, tax advisers, lenders, etc... The goal is to be the "dumbest guy" on your team. If you are the smartest guy on your investment team, than something is wrong.

Books that were recommended during this meeting:

Whoops

I choose to hold myself accountable to you, the public audience to ensure that I do everything that I commit to doing in growing wealth and increasing financial freedom:

I didn't really do my wealth education yesterday beyond a few minutes reviewing yahoo finance news articles, seeing the news released to the public.

The only action I took in that regard is by adding an amazon link to the book on Gold & Silver.

Tonight I have a Multi-Family Real Estate Investment networking meeting to attend. I am sure to make some good contacts and learn some valuable information for down the road.

Although financing may be challenging in the current times, I am sure to develop some contacts and/or learn something valuable. I will report it here so that others may make use of it as well.

Gold & Silver

I do not trust what is happening with the dollar. The Federal Reserve has continued to print more an more currency not backed by anything but people putting their trust in small green pieces of paper.

All of these government bailouts you may be hearing about...seems to me full of arrogance and hubris. All these billions of imaginary dollars printed from thin air.

Each imaginary dollar printed decreases the buying power of the money already out there. And this cycle won't stop until people no longer put their trust in it. Eventually, the bubble will pop, and I anticipate it having a knockout punch to the economy of the United States.

Once the dollar crashes, everyone will come running to the "safe haven" of precious metals, but by then the buying power of gold and silver will have skyrocketed. Time and time again, when a government has gone off the gold standard this pattern has repeated itself.

Gold and silver will take the cake as they always do.



That is one reason why my intention is to build up a gold and silver reserve. This year, I would like to contribute a few hundred dollars to investing these metals every month. Growing this until I will eventually be converting thousands of dollars into these metals at a time. The more I collect, the stronger the magnet will be in attracting more gold and silver.

I intend to make this a solid, continuous, and ongoing habit-strengthening the holdings every month until I eventually need to store them in various third party vaults around the world.

There is going to be an immense transfer of wealth in the upcoming years, and I intend to be ready for it.

Wealth Action Items 1/10/09

Today I cleaned disputed some claims on my credit report & signed up for the freecreditreprt.com affiliate program.