Real Estate Investing Wisdom

By Bruce Kellogg

This is a book of wisdom "for the times". Since the Great Recession of 2009, many new investors have come into real estate. Prices and rents have increased steadily. Interest rates have declined to forty-year lows. Loan money has been abundant. Success, even wealth, have been readily available to those who apply themselves.

Times are changing now, and many investors are unprepared for less prosperous times. This book aims to help that. The author has combed through his forty-four years of experience to present the techniques that investors will need to succeed in the challenging markets ahead.

• Language: English
• Publisher: Page Publishing, Inc.
• Release date: Jan 4, 2024
• ISBN: 9798886549768

Book preview

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Real Estate Investing Wisdom

Bruce Kellogg

Copyright © 2023 Bruce Kellogg

All rights reserved

First Edition

PAGE PUBLISHING

Conneaut Lake, PA

First originally published by Page Publishing 2023

ISBN 979-8-88654-969-0 (pbk)

ISBN 979-8-88654-976-8 (digital)

Printed in the United States of America

Table of Contents

Introduction—Why This Book? Why Now?

Chapter 1

1. Getting Started in Real Estate… Properly

Chapter 2

2. Mastering Meetups

Chapter 3

3. Approaches To Real Estate Negotiation

Chapter 4

4. Essential Real Estate Calculations

Chapter 5

1. 24 Ways to Acquire Real Estate

Chapter 6

2. Seller Financing 101

Chapter 7

3. Seller-Carryback Note Terms

Chapter 8

1. Partnering For Profits in High-Priced Markets

Chapter 9

2. Buying and Selling Real Estate Using Notes

Chapter 10

3. Buying Real Estate Using Real Property, Personal Property and Personal Services

Chapter 11

1. Hiring and Managing Property Managers

Chapter 12

2. Dealing With Negative Cash Flows

Chapter 13

3. Dealing With Balloon Payments

Chapter 14

1. Foreclosing

Chapter 15

2. The Deed-in-Lieu-of-Foreclosure

Chapter 16

3. Bankruptcy Protection for Real Estate

Chapter 17

1. Enhanced Diligence for Turnkey Investing

Chapter 18

2. Enhanced Diligence for Syndication Investing

Chapter 19

1. Some Real Estate Lessons

Chapter 20

2. Caveat Investor

Appendix A

A. Buyer Prospecting Sources

Appendix B

B. Seller Prospecting Sources

Appendix C

C. Resources

About the Author

Developing Your Investing Skills

Acquiring Real Estate

Advanced Acquisition Methods

Operating Your Investing Business

Topics for Tough Times

Passive Real Estate Investing

Gaining Wisdom

Appendices

Introduction—Why This Book? Why Now?

Why This Book? Why Now?

There has been a real estate boom since the Great Recession ended in 2009. The participation of new investors, real estate agents and brokers, hedge funds, real estate service companies, and group investments/syndications has grown greatly. Many of the new books published for investors are produced by gurus, self-promoting trainers, coaches, and mentors who claim a single line of expertise such as foreclosures, wholesaling, syndications, Fix and Flip, options, and more. The subjects of these books change with the times. Further, many of the authors of these books self-publish their books because the sales potential is limited, and their goal is to build their brand more than it is to thoroughly instruct their readers.

This book is different in several ways.

#1—It is written by a highly experienced real estate agent and investor, not a guru, mentor, coach, etc.

#2—The book is intended to be enduring, not just for the times. The techniques presented have long-term histories and future applicability.

#3—This book consists of techniques for investors of all levels to pick and choose over the years as they grow in experience, accomplishments, and wealth.

#4—Appendices are included for frequent reference by investors for ongoing dealmaking.

#5—Much is being taught here. Nothing is being sold.

So let's get started!

Chapter 1

1. Getting Started in Real Estate… Properly

A good way to get started in any new endeavor, including real estate, is to learn as much as you can. Attend events, read the right materials, find a reputable mentor, and ask the right questions. But there are other factors to consider when starting as a real estate investor to ensure you start off on the right path.

ECONOMY AND REAL ESTATE CYCLES

Investing for the future necessitates assessing the direction of the economy. The economy has business cycles. Consequently, there are real estate cycles. Search the internet for articles on real estate cycles and learn how they work so you can apply them to your investing.

REAL ESTATE MARKETS

The saying goes, All real estate is local. Housing markets vary across the country. Some are rising, creating equity for homeowners and investors. Some are leveling off, or declining. In some markets, homeowners are underwater, where they owe more than their property is worth. So it is essential that new investors get an assessment of the markets that interest them.

PERSONAL PREPARATION

The newbie investor needs to do a personal assessment, as well. Ask what time commitment you are willing to make initially. Do you want to be all in? Do you prefer to invest part time while still employed? Or, do you want to write a check and read regular reports from a manager? Do the same for your financial commitment: a) keep your securities investments, b) sell some investments in favor of real estate, or c) refinance and borrow money to invest in real estate. Also consider your educational commitment and which options work best for you. You can go to meetups, purchase courses, attend workshops, and so on. Additionally, take an inventory of your strengths and development needs (i.e., weaknesses), then plan to utilize the strengths, and address the needs.

GROWING INTO MATURITY

There are two elements for growing into real estate maturity. One is experience, which is gained by transacting and owning properties. The second is education. Education must be ongoing because the market and the industry are always changing. Real estate investors of any level, but especially beginners, should take advantage of the following educational opportunities:

Current books. Be cognizant of dated material, some of which might still be worthwhile.

Courses at local adult education centers and community colleges.

Speakers at meetups. Be cognizant of any biases and sales pitches.

Workshops and boot camps.

Courses from regional and national trainers

Subscribe to and read national real estate investing magazines.

Pay no attention to a course or program that costs more than $3,000 while still a newbie. You won't get enough out of it at this stage. And you can learn a lot by not spending much in the beginning. The same is true with hiring a mentor/coach. It may happen, but only after you know your development needs.

Also, some trainers offer weeklong boot camps for as much as $60,000. a) That's a lot of tuition! b) You could buy 1–2 houses for that! (See Appendix B) c) Ask for a profit guarantee if you do it at all. d) It is basically not a rewarding opportunity most of the time.

GETTING A REAL ESTATE LICENSE

It's not a bad idea to get your license because it is educational, and it provides transacting experience. Plus, it can help you earn commissions. The only drawback is that you must disclose your licensee status when transacting property for your own account. Most find this is not a problem.

ARMCHAIR INVESTING

Many newbies are eager to get started. Options like turnkey rentals, or commercial and multifamily syndications (i.e., group investments), are choices for passive investors. The problem, however, is dishonest and/or incompetent players in the syndication industry, and it's often hard to tell the good from the bad. Additionally, the syndication market has become highly competitive such that marginal deals are being