Warren Buffett famously said…
I would argue that there has not been a more difficult time to invest in real estate than the last 3 years…Which means there has never been a more important time where experience MATTERS.
In a market with historically low inventory and historically high prices not to mention run away inflation, interest rates, wars, global warming that has caused insurance rates in most markets to skyrocket…Finding quality investment properties is…difficult.
It is during these times of chaos and uncertainty that mistakes are most often made…But on the flip side, opportunities to capitalize are there…to the trained eye and disciplined investor.
Patience, discipline, focus, experience. While these are all vital components of success, there is another component that does not get discussed enough in my opinion… LUCK.
Thomas Jefferson was quoted as saying…
There is so much wisdom and truth in that. You have to acknowledge that yes, you put in a lot of hard work, perhaps more than others in your industry, but without question, you have to have a few breaks along the way.
Let me tell you where I feel I have been incredibly lucky.
My wife is a bonafide rockstar. I do not in any way deserve someone as incredible as she is and I would not be the person I am today without her. She is the greatest thing that has ever happened to me (or will happen to me).
I was fortunate enough to fall into real estate fairly early on in my career. I have since passed the “10,000 hours” of experience in my field which over that period of time I have been fortunate enough to invest in thousands of homes and learn lessons from every single one of those.
We now operate in one of the FEW markets in the entire United States that has ample opportunities to invest in properties that have positive cash flow.
Let’s focus some time on #3 as a follow-up to my email last week to explain just how fortunate we are to be investing in Chattanooga, TN (and surrounding 45-mile radius) in 2024:
To be considered a GREAT market to invest in, it needs to have every box checked below:
- Low property taxes
- Landlord friendly laws (AKA red states)
- Economic growth & positive migration
- Proximity to large metropolitan areas: Chattanooga is located 90 minutes from 4 major MPA’s in each direction
- AFFORDABILITY: Chattanooga is one of the few markets that has seen wage growth keep pace with rent appreciation. This is incredibly rare
- Property insurance rates are reasonable: We have not seen massive price hikes like the majority of Florida/Texas/California/New York/etc
- Low property management expenses: We have a lot to do with this one:) So I guess we created our own luck out of necessity.
- Access to affordable housing
- Strong workforce in the construction industry
- Construction costs have not ballooned
This market checks every single box above. Talk about LUCK!
Now let’s talk about the business model of turnkey real estate:
Time is the friend of the wonderful business & the enemy of the mediocre.
Investing in turnkey real estate with an organization that was built by an investor who is solely focused on delivering a quality product to investors that plan to own real estate for decades is going to age very well.
Real estate is the gold standard of investments (when done correctly)
And to get to a point where you are confident that you are buying quality real estate deals that will withstand the test of time, you realize the importance of the word NO.
We have to say NO to 20x the number of homes that we say YES to.
WHY?
Discipline is key in this business. When you have the recipe for success, the trick is not trying to improvise or deviate because you need another property now.
The good news is that if you see one of our properties on our website, just know that to get that property, we had to say no to at least 20 other sellers who were either asking too much for a home than we were comfortable with paying or they had a property in a location that did not meet our strict criteria, etc.
Being a value investor means you look at the downside before looking at the upside.
We have a handful or turnkey properties hitting the market over the next 3 weeks. If you are a serious investor looking for your next investment property, click the link below to view our inventory and schedule a call.
