Category Archives: Real Estate Mentor

Housing Market Hot For Buy & Hold Real Estate Investors

photo by scottchan
Rent to own or buy and hold are strong investing strategies in today;s housing market. Photo by scottchan

Smart Investors Have A Strategy For Every Market Situation

Despite the fact that, according to reports, it is more expensive to rent a home these days than it is to buy, the number of people renting is at its highest point in over 50 years. That means it’s a perfect environment for real estate investors who are looking for properties to buy and hold or even rent to own.

The Pew Research Center recently conducted a study of US renters and found some very interesting information. Turns out, of the 75 million households (according to numbers from the latest Census), over 43 million are renting. Since 2006, the number of renters shot up from nearly 35 million to the current 43 million. This climb may not seem that significant until you realize that the number of homeowners has actually dropped from a high of 76 million to 75 million, essentially staying flat over the past 10 or so years.

Pew cites three main reasons for this overall shift:

  • The price of homes is increasing to the level they were at prior to the housing crash
  • A hangover from the dramatic burst of the housing bubble, making people skittish and lenders more stringent with their lending standards
  • Student debt that just doesn’t go away for millions of people after they graduate from college

Two of the three reasons above are particularly applicable to the group voted, “Most Likely To Rent,” millennials. While the housing bubble in 2007-2008 may not as directly impact these potential homeowners, age 35 and younger, but the rising price of houses and lingering student debt certainly does. In many cases, they have not been in the workforce long enough to save up for their down payment. This segment of the population also tends to be more mobile, making renting a more viable alternative. As of June of this year, the median house value is over $200,000, which is a 7% increase in just one year.

I mentioned at the start of this article that it’s more expensive to rent than buy a home. According to Trulia’s managing editor, David Weidner, “In every major US market, it’s cheaper to buy a home than it is to rent over seven years. And it’s really not even close.” He explains that a mortgage is daunting, but after the first few years, incomes are likely to rise, diminishing the monthly hit that comes with a mortgage payment. But as we know, not everyone is able to take the long-term view and is looking at their current financial situation with some concern.

So what does that all mean for us as real estate investors?

The news is all good because there are so many really effective exit strategies and ways to focus your investing business. If you live in a part of the country where the number of renters surpasses the number of buyers, then you need to focus on a buy and hold strategy. Look for properties that you can purchase with the intent to rehab or renovate and then rent, keeping them in your portfolio for long-term cash flow. If you’re in an area where buying still outpaces renting, then focus on strategies like wholesaling, flipping, or retail.

There was one more nugget that came out of the Pew survey that should make every real estate investor take notice. They found that almost 75% of those currently renting want to buy a house in the future. That includes those who are renting by choice and those who are renting because of their current life circumstances. Why is this important? Because you have a solution for these future buyers too, and it’s called rent to own.

What are your thoughts on incorporating rentals into your investing portfolio?

Need help finding the right strategy for your real estate investing business? Are you wondering how you can make the most of any housing market environment?

If you would like more information on how I can help you grow your business, send me an email at ryanthementor@gmail.com. For tips on what to look for in a good mentor, read this article.

Ryan McFarland is a real estate investor, coach, and mentor located in San Diego, CA. He specializes in wholesaling, fix and flip, and turnkey rental properties. Ryan also specializes in new and innovative technology platforms to locate motivated sellers and cash buyers to sell properties fast. Ryan also works with other real estate investors to help with their marketing to locate more properties or more investors through comprehensive digital marketing funnels and driving paid traffic to these funnels. With over 15 years experience in the real estate investing industry, over 500 transactions completed for over $50 million in total volume, Ryan McFarland is an asset to anyone or any organization he works with.

How to Find a Real Estate Investing Mentor Who’ll Help You Succeed

leadership-913043_1280Imagine you are blindfolded. You struggle your way through a room, not really knowing where you are, where you’re going and if what you’re doing is right or wrong.

Now, in this situation what you need is someone to guide you. Someone who will give you directions and help take you where you need to be until those blindfolds are taken off and you can see.

This is what it’s like to enter the world of real estate investing as a novice. That blindfold is your inexperience and that guide is your real estate investing mentor.

So how do you find real estate experts who can be your mentor?

We’ll help you find an effective guide who will guide you so you can successfully tread the real estate investing business.

Understanding Mentoring

First things first. You need to understand what mentoring is and isn’t. This will set your expectations on what having a mentor provides and will also give you an insight on what it is that you should do during the whole mentoring process.

So what is a mentor? A mentor is defined as “an experienced and trusted person who gives another person advice and help.” When it comes to a real estate investing mentor, this can be someone who has an extensive knowledge about real estate investment and who’s had years of experience with it. This person is then willing to share his knowledge and expertise to you by offering advice and, in some cases, providing training. He is like a teacher in a class who helps expand your knowledge on a specific subject and who answers questions you might have about it.

So what is a mentor not? A real estate mentor is not someone who makes the decisions for you and who does the hard work. This is your job. You are like a student in a class. You are the one who will do your assignments, make your projects and answer your exams. Your teacher will not do this for you. In real estate investment, your assignments and projects are the preparations you need to make in setting up your real estate business and your exams are the different trials you will undergo in doing so. And you are the one who will need to do all the work needed to go through all these, not your mentor.

Choosing a Real Estate Investing Mentor

Now that you fully understand what mentoring is and isn’t the next thing to do is learn how to look for a good real estate mentor. To choose a good mentor you need to know what qualities he should have.

Extensive knowledge, years of experience and a good background – these are the three most important things that a mentor should have. You don’t want to waste your time with a mentor who may not really know what he is talking about. Also be wary of individuals or companies you’re not familiar with who are offering mentoring programs. Check them out online and get testimonials from people who they have mentored.

Another important thing you need to keep in mind is this: a mentor shouldn’t be making false promises of getting rich quick. Good mentors know that succeeding in the real estate investment industry takes a lot of hard work and there’s no universal formula you can follow to quickly become successful. So if someone makes grand promises that are too good to be true, you better think twice about asking him to be your mentor or enrolling in their training. A good real estate investor will discuss both the benefits and the risks of getting into the real estate business so you can rightfully prepare for what will happen along the way.

Directions on where to go and what to do – this is what you need and this is very important when you can’t see. In finding the right real estate investing mentor, you’ll be guided when you’re just starting with your real estate business.