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 Capital
Sean 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.
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Real Estate Principles
This 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 Advantage
- There 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
Location
- Spend 6+ months studying the market, at a minimum, before you buy a property
- If 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)
Leverage
- Leverage is a value tool, but a dangerous tool
- Never go above 80% LTV, either on a specific property or on a portfolio level
- Never take a term loan that expires before the amortization period ends
Time
- 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,