02-04-2024
#110: Should I buy Real Estate Direct or Invest in a Fund/Syndication?
Thank you for listening to this episode of 5 Minute Real Estate Investing!If there is anything I can do to assist you in any way, please feel free to reach out via email or Twitter @seanodowd15.Scholastic CapitalSean is the Managing Director of Scholastic Capital, a real estate private equity fund that buys single family homes in highly elite school districts & rents them to tenants for 3+ years.If you are interested in joining our investor list or following along, please feel free to sign up HERE.Real Estate PrinciplesThis is my (ever-changing!) list of real estate principles I believe in and will touch on throughout the podcast. I hope this short list is helpful for you here:Competitive AdvantageThere are approximately 300 million pieces of real estate in the country. Your property must have a significant competitive advantage to differentiate itself from all other property out there. Otherwise, your tenants will have plenty of other options. This will push down both your rent and your value LocationSpend 6+ months studying the market, at a minimum, before you buy a propertyIf you aren't the world expert on the real estate market in a specific zip code, you shouldn't be buying there. (Exception: you specialize in non-residential asset classes)LeverageLeverage is a value tool, but a dangerous toolNever go above 80% LTV, either on a specific property or on a portfolio levelNever take a term loan that expires before the amortization period endsTime Real estate is not passive. You should not buy real estate if you cannot dedicate the time to: Become a world expert on a zip code or asset class To manage the property OR property manager,