Matt Bowles starts off by explaining what “turnkey real estate investing” is, and discusses the benefits of buying and holding residential investment property vs. other asset classes like stocks and mutual funds. He goes through the 5 different potential profit centers you have when buying and holding rental properties—market appreciation, cash-flow, tax benefits, mortgage principal pay-down by the tenant, and a built-in hedge against inflation. He explains the benefits of not having to be the rehabber or the landlord yourself and how buying a performing rental property (that is already cash-flowing when you close) can substantially mitigate your up-front risk. Matt then explains the benefits of buying and “holding” (instead of flipping) your rental property, and why it’s important to own the deeded real estate as a hard asset as opposed to buying real-estate-backed securities. And, finally, he explains the benefits of building a portfolio of single-family rental properties as opposed to buying an apartment building. He then teaches how to identify the most investor-advantaged real estate markets—assessing demand drivers, price-to-rent ratios, calculating capitalization rates properly and buying in the “real estate investor sweet spots”. He also covers the essentials for how to conduct due diligence on an out-of-state buying opportunity, the importance of verifying everything independently, and how to find and use third party services. Matt concludes by explaining the business model of Maverick Investor Group, how their niche has been serving individual real estate investors exclusively since 2007, why it doesn’t cost any money to work with Maverick, and how Maverick intentionally created an incentive structure that puts the buyer’s interests first. He then offers two opportunities to connect with Maverick and either learn more or start building your portfolio of cash-flowing rental properties. FULL SHOW NOTES AVAILABLE AT www.TheMaverickShow.com
Episode #47: How to Buy Turnkey Rental Properties in the Best U.S. Markets Regardless of Where You Live with Matt Bowles
Episode Summary
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About the Guest
Matt Bowles
Matt Bowles co-founded Maverick Investor Group in 2007 to help individual real estate investors buy performing rental property in the best U.S. real estate markets, regardless of where they live. He has been featured in major national media and was named one of the “Top 50 Real Estate Opinion Makers and Market Leaders”. Matt and his co-founders at Maverick have helped individual real estate investors buy over $100 million in residential investment property across 15 States. As a location-independent business owner, Matt runs his company (and hosts the podcast!) from epic locations around the world and has lived in over 50 different countries since 2013. He is a sought after speaker at events and conferences around the world relating to real estate investing, entrepreneurship, long-term world travel and the digital nomad lifestyle.
What You'll Learn
- The unique advantages of Residential Investment Property as an Asset Class
- How to Identify the Best Real Estate Markets (As They Change Over Time)
- How To Conduct Your Due Diligence on Out-Of-State Rental Properties
Links From the Episode
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CONTACT MATT
Give Matt Your Feedback on This Episode:
- Email Matt directly at matt@maverickinvestorgroup.com and let him know what you thought of this episode and if you would like more educational episodes like this interspersed with the interviews. And, if so, which topics would add the most value to you?
Time Stamped Show Notes
[1:05] Overview of the Episode
[2:20] Explaining Turnkey Real Estate Investing
- Defining “turnkey” real estate investing
- The 2 major advantages of buying rental properties on the “turnkey” model
[4:05] Explaining the Advantages of Residential Investment Property as an Asset Class
- The 1 potential profit center of most Stocks and Mutual funds
- The 5 potential profit centers of residential investment property
- The advantages of ‘holding’ (not flipping) residential investment property
- Leveraging your purchase and increasing your potential cash-on-cash return
- How to calculate your cash flow and generate passive monthly income
- Understanding the tax benefits for buying and holding investment property
- Depreciation, 1031 exchanges, and qualifying as a real estate professional
[18:05] Why Flipping, REITS and Commercial Properties are Less Advantageous
- The downside to flipping properties
- The downside to buying REITS or other real estate backed securities
- The advantages to owning the deeded real estate as a hard asset
- The advantages of a single-family-home portfolio vs. an apartment building
- The importance of diversifying your portfolio and having a retail exit strategy
- Using a segmented liquidation strategy
[23:24] How to Identify the Best U.S. Markets and Calculate Real Estate Metrics
- Understanding demand drivers and economic indicators in real estate markets
- Understanding price to rent ratios and calculating the “gross rent multiplier”
- Understanding expenses, “net operating income” and capitalization rates
- Understanding property cycles and “yield compression” trends
[31:55] How to Conduct Your Due Diligence on Out-Of-State Rental Properties
- Independently verifying all expenses
- Doing your own cash-flow calculations
- Hiring a professional home inspector
- Verifying the fair market rent
- Getting an appraisal
- Reviewing your sales contract and your property management agreement
- Assessing local micro-markets and identifying is real estate investor ‘sweet spots’
[38:08] How Maverick Investor Group Works with Our Clients
- How the real estate brokerage model works
- Maverick’s niche of serving individual real estate investors
- How Maverick works with our clients without charging them any money
- Explaining the Maverick business model and how we make money
- How Maverick is incentivized to put the buyer’s interest first and deliver up front value
- How Maverick is different and focuses on long term client relationships
[44:42] How to Buy Rental Properties Through Maverick or Get More Educational Info
- How to Get Matt’s Free Report on “How to Avoid the 7 Biggest Mistakes Real Estate Investors Are Making in Today’s Market”
- How to Schedule a Free Phone Consultation with Maverick Investor Group
[46:48] Contact Matt
- Email Matt and let him know what you thought about this episode
