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I own 8 homes valued at > $10 million.
If I restarted from scratch and wanted to rebuild my portfolio, this is what I'd do:
If I restarted from scratch and wanted to rebuild my portfolio, this is what I'd do:
• value add
Whatever you buy, make sure you can add value:
• renovation
• home extension
• add a separate building
The goal is to be able to refinance after you add value to finance your next acquisition.
Whatever you buy, make sure you can add value:
• renovation
• home extension
• add a separate building
The goal is to be able to refinance after you add value to finance your next acquisition.
• house hack
If you are starting from scratch, buy the maximum home you can afford.
This may mean living with roommates or friends to maximize the size of the home you can buy.
Live in one bedroom of a house and rent out the other three bedrooms.
Let your ego go.
If you are starting from scratch, buy the maximum home you can afford.
This may mean living with roommates or friends to maximize the size of the home you can buy.
Live in one bedroom of a house and rent out the other three bedrooms.
Let your ego go.
• buy for appreciation
People tell you cash flow is the way to go and that it will supercharge your portfolio.
They're wrong.
Instead, I would invest in assets that appreciate, which gives you the power to leverage into more investments.
Leverage is our goal.
People tell you cash flow is the way to go and that it will supercharge your portfolio.
They're wrong.
Instead, I would invest in assets that appreciate, which gives you the power to leverage into more investments.
Leverage is our goal.
• target the right location:
They say location is everything for real estate.
They are right.
Focus on these factors for location:
• product type
• relative location
• specific location
• path of progress
They say location is everything for real estate.
They are right.
Focus on these factors for location:
• product type
• relative location
• specific location
• path of progress
• product type
There are three product types I look at:
• condos
• townhomes
• single-family homes
They usually move within tight bands.
If condos get too high in price, investors flip to townhomes.
Pay attention to price asymmetry over time by type.
There are three product types I look at:
• condos
• townhomes
• single-family homes
They usually move within tight bands.
If condos get too high in price, investors flip to townhomes.
Pay attention to price asymmetry over time by type.
• relative location
In most cities, there are certain geographic regions.
For example:
• urban core
• suburban centre
• outer suburban sprawl
Pay attention to the price movement in the three relative areas over time.
Target the areas with lowest recent relative growth.
In most cities, there are certain geographic regions.
For example:
• urban core
• suburban centre
• outer suburban sprawl
Pay attention to the price movement in the three relative areas over time.
Target the areas with lowest recent relative growth.
• specific location
Once you've chosen urban core, suburban centres or the outer suburban sprawl, pick the specific location, focus on:
• shops
• schools
• walkability
• restaurants
• transportation
• nearby amenities
Target the specific area you would want to live.
Once you've chosen urban core, suburban centres or the outer suburban sprawl, pick the specific location, focus on:
• shops
• schools
• walkability
• restaurants
• transportation
• nearby amenities
Target the specific area you would want to live.
• path of progress
The path of progress is key to it all.
It is how you will add max value, which you can lever into your next buy.
The path of progress is spotting gentrification before it happens.
It is being in the hot market before it's hot.
It provides the most "lift".
The path of progress is key to it all.
It is how you will add max value, which you can lever into your next buy.
The path of progress is spotting gentrification before it happens.
It is being in the hot market before it's hot.
It provides the most "lift".
How can you spot the path of progress?
- Walk an area
- Talk to the locals
- talk to the developers
- Where are future transit routes
- Where do the hipsters & artists live
- Map out the migration of gentrification
- If the “West Side” is hot, how far East does it go each year
- Walk an area
- Talk to the locals
- talk to the developers
- Where are future transit routes
- Where do the hipsters & artists live
- Map out the migration of gentrification
- If the “West Side” is hot, how far East does it go each year
• Refinance and repeat
After doing the above, you should have lift in your home.
Next, refinance the home.
Use the equity that you've generated to buy your next property.
Rinse and repeat the exercise, following these steps, until you've built your portfolio.
After doing the above, you should have lift in your home.
Next, refinance the home.
Use the equity that you've generated to buy your next property.
Rinse and repeat the exercise, following these steps, until you've built your portfolio.
TL;DR:
To rebuild my real estate portfolio to $10 million, I'd focus on:
• value add
• house hack
• buy for appreciation
• target the right location:
• product type
• relative location
• specific location
• path of progress
• Refinance and repeat
To rebuild my real estate portfolio to $10 million, I'd focus on:
• value add
• house hack
• buy for appreciation
• target the right location:
• product type
• relative location
• specific location
• path of progress
• Refinance and repeat
Real estate is the simplest way to grow rich slowly over a long time horizon, and it is how I will achieve a net worth > $100 million.
If you enjoyed this thread,
1. Follow @IAmCoachClint
2. Retweet the first tweet
Until tomorrow,
Clint
If you enjoyed this thread,
1. Follow @IAmCoachClint
2. Retweet the first tweet
Until tomorrow,
Clint
