Lease Option – Rent to Own Real Estate Investing with Adam Zach

 

Lease Option – Rent to Own Real Estate Investing with Adam Zach

 

Guest: Adam Zach, is a seasoned real estate investor, with over a decade of experience in real estate. Adam brings a wealth of knowledge and shares his remarkable journey from humble beginnings in North Dakota to building a diverse portfolio spanning multiple states, highlighting the importance of leveraging unique advantages and taking calculated risks to achieve success in the dynamic world of real estate investment.

 

Big Idea: In the episode, Zach and I delved into the strategic approach to real estate investment and risk mitigation. Zach emphasized the significance of leveraging unique advantages and taking calculated risks to build a successful portfolio. From implementing innovative strategies like guarantor bond policies to minimize risk in rental processes to scaling real estate syndication through strategic partnerships and digital marketing, our discussions highlighted the importance of forward-thinking, disciplined decision-making, and adapting business models to evolving market conditions. Through his own journey and experiences, Zach underscored the critical role of strategic foresight, disciplined execution, and risk management in achieving long-term success in the dynamic world of real estate investment.

 

 

    

Adam: Yeah, I am in North Dakota, right now I’m in Fargo. I grew up in the western part of the state in a town of about 10,000 people. So now I moved to the quasi-big city here in Fargo, which is 100,000 people, which is pretty much one square mile around you. It’s probably about the same density spread out over 500 square miles here in North Dakota. I’ve been here my whole life and that’s where I first started doing investment properties and now have investment properties in 57 cities in 25 states, doing some long-distance investing, and just love everything real estate.

Daniel: Nice. I think from your bio, what’s it been like 13, or 14 years? It’s been a while since you’ve been doing this.

Adam: Yeah. The first property I ever owned was a house hack in 2012. Took a little bit of a hiatus, but didn’t start gearing up then until 2016, or 2017. The last five years were probably the greatest growth. So I’ve been doing real estate I could maybe stretch it and say a dozen years but since that was the first property. But I would say mostly it’s been the last seven years.

Daniel: Okay. You’ve been buying, let’s say in the last 36 months since 2021. You’ve bought a few properties in this period?

Adam: Yeah. So I would say in the last 36 months, we have bought, I don’t know the exact number in the last 36 months, but I would say probably 52 homes. We’re probably averaging at least one a month and now the goal for 2024 is one home under contract per week.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://HomeEquityPartner.com/investors/

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

Adam Zach & I Discuss Lease Option – Rent to Own Real Estate Investing:

  • Business Model Evolution: Transitioning from traditional rental properties to lease option models for sustainable cash flow and reduced turnover. (00:04:07)
  • Guarantor Bond Policies: Exploring how Guarantor policies work and their impact on tenant screening and security deposits. (00:13:29)
  • Syndication Funds: Exploring the structure and returns of syndication funds for investors, including preferred returns and profit splits. (00:23:00)
  • Tax Benefits and Depreciation: Adam elaborates on the tax advantages passed on to investors through syndication deals, including depreciation benefits. (00:30:35)
  • Chess as a Brain Development Tool: Adam reflects on the parallels between playing chess and developing strategic thinking, risk assessment, and delayed gratification from an early age.(00:39:51)
  • The Power of Partnerships: Insights into the benefits of strategic business partnerships in mitigating risks, sharing resources, and aligning interests for mutual success. (00:44:15)

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Navigating Real Estate Investment: From Young Enthusiast to Mobile Home Parks with Mitchell England

 

Navigating Real Estate Investment: From Young Enthusiast to Mobile Home Parks with Mitchell England

 

Guest: Mitchell England is a dynamic real estate investor and entrepreneur known for his strategic prowess in property investments. With over a decade of experience, Mitchell’s journey in real estate began during his teenage years when he was inspired by “Rich Dad, Poor Dad.” He has since built a diverse portfolio spanning multiple states and property types, with a particular focus on mobile home parks. Mitchell’s investment philosophy revolves around long-term holds and leveraging smart debt, all in pursuit of his vision for generational wealth and financial freedom through real estate.

 

Big Idea: Mitchell England shares his journey into real estate investing, starting as a young enthusiast inspired by “Rich Dad, Poor Dad.” He discusses how he began with single-family properties, the importance of cash flow in his investment strategy, and his transition to owning and managing mobile home parks across the United States. Mitchell emphasizes the advantages of mobile home parks, such as stable cash flow and lower maintenance costs, and highlights the challenges of managing tenant-owned units. He also delves into the concept of good debt and how it has evolved over time, the ideal characteristics of a perfect mobile home park, and strategies for handling tenant turnover in older communities.

 

 

    

 

Dan: Okay, cool. So as our origination story, maybe you can kind of touch on how you got in real estate and sort of how you evolved into the space that you’re in now, and then kind of a summary of where you’re at now, just to get us started.

Mitchell: Yeah. So I started really young. I stumbled upon Rich Dad, Poor Dad, which I know a lot of people listening to this probably have a similar story. But I read that book and it changed my whole perspective on life and how to provide value, and it made me start to question everything. I probably read the book at 16 years old. I was in high school at the time, and I was watching the run-up happen. That was like 2004, 2005, right in there. I was watching a lot of people make a lot of money in real estate. And so, that book paired with this huge run-up in the market, I was like, “Man, I got to get in this game.” I know you’re laughing, right? Because what happens next? But that was my first like, “Hey, what is this thing? How do I get into the game?” And I started asking that question. So early on, I jumped in, I bought a couple of pieces of property, thinking, “Hey, I’m going to go make some money on these things.” A couple of bare pieces of property, actually like vacant land. And you know what happens next, right? Oh, [inaudible] and I’m holding the bag, right? I’m holding these two properties going like, “Huh, maybe I don’t really understand this game as close as I thought.” And so, throughout my 20s, I was really interested in real estate. And I dove into a couple of other land deals, a couple of smaller duplex, single-family type stuff. And for me, the big aha was like when I got my first cash flow property, I thought, “Oh my gosh, someone else can pay for this. This is pretty amazing.” I probably should have been a faster learner than that, but it took like six or seven years to figure out like, “Oh, I could put a renter in. This is pretty incredible.” But I got addicted to the cash flow real estate. I just got addicted to it because I thought, “Well, gosh, this could give me not only like pay for my real estate, but also give me freedom.” And so, that first cash flow property was sort of a house hack. And from there, I started to buy some other single-family duplexes, kind of some smaller stuff. And then during that time, I was also working my corporate job. I was working at a med-tech company. And so, life was really busy, but I started to see real estate as like this escape, this thing that I could do. I could build up cash flow properties and slowly leave my job. And so, that was really like the catalyst.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://www.CadiaCapitalGroup.com/

https://www.zeroto100tribe.com/

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

Mitchell England & I Discuss Navigating Real Estate Investment:

  • Ideal Mobile Home Park Characteristics: Mitchell discusses the key attributes of an ideal mobile home park, including city utilities, paved roads, and tenant-owned units.
  • Tenant Turnover and Value-Add Strategies: The challenges and strategies associated with tenant turnover and value-add opportunities in mobile home parks.
  • Good Debt and Financing: Exploring the concept of “good debt” in real estate investing, emphasizing the benefits of non-recourse loans and favorable terms.
  • Investment Philosophy and Long-Term Hold Strategy: Mitchell’s investment philosophy centered around long-term holds, cash flow, and building a portfolio that’s inflation-resistant.
  • Challenges in Mobile Home Park Investments: Addressing the complexities of managing older and newer homes in the same community and finding solutions to attract new tenants to older park communities.

    

Relevant Episodes: (There are 230 Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Larry Taylor on Los Angeles Real Estate Investment & Development

 

Larry Taylor on Los Angeles Real Estate Investment & Development

 

Guest: Larry Taylor, a seasoned real estate entrepreneur specializing in Los Angeles real estate. Born and raised in a coal mining town, Larry’s journey took him from Pennsylvania to California, where he forged a successful career in real estate investing. As the founder of Christina Development Corporation, he has navigated the ever-changing real estate landscape, thriving in markets where others see challenges. With decades of experience, Larry shares his insights, spanning from the 1970s to the present day, revealing a wealth of knowledge about syndication, value-driven acquisitions, and the power of innovative thinking.

 

Big Idea: In this episode, Larry Taylor delves into key themes of real estate investment. He highlights seizing opportunities during economic shifts, crafting innovative investment models, and the importance of value-based property purchases. Taylor’s success stories, like acquiring historic West Hollywood properties, emphasize the significance of market timing and visionary insight. His focus on long-term partnerships and wealth preservation over quick returns adds a valuable perspective for investors at all stages.

 

 

    

 

Larry: The significance is that’s when Christina was founded. It was the outgrowth of a company that was founded years earlier by myself and a classmate at the University of Southern California. We started our own company as students to take advantage of the opportunities that presented themselves during President Nixon’s wage and price level freeze and the Arab-Israeli war, which caused the oil to go from two to $10 a barrel. It was the great recession, and it was an opportunity to be able to buy income-producing property, where rents had been frozen for years. So, we were learning about this in school as students, and we said, “Well, why don’t we just go out and try to do that?” And we did, and we were successful.

And then my classmate decided that he wanted to become a homebuilder when we graduated college. He went off to be a homebuilder, and I went off to become a syndicator, specializing in buying income-producing properties on the west side of Los Angeles.

Dan: Nice. Tell me about your relationship and the inspiration that you derived from the former deceased LA Lakers’ owner, Jerry Buss.

Larry: Well, it was a very fortunate and opportune moment when I got to visit a friend of mine that was operating in his property management department. Jerry Buss, for people who don’t know, was an aerospace engineer. And with a couple of partners, Frank and Bob Mariani, they founded a real estate syndication business. It was focused on buying apartment buildings only on the west side, and it was based on the aerospace engineers that needed write-offs. Because aerospace engineers in the 60s and 70s in Los Angeles County were some of the highest-paid professionals, federal income tax rates might have reached as high as 70%. So, Jerry and his partners formed the syndication business where they were buying apartment buildings and putting their fellow engineers into them and creating tremendous tax losses which they could use to offset their ordinary income.

When I met Jerry on that one particular day, he said, “So, how do you do your deals?” I didn’t know what he was talking about, and I said, “Well, I see an opportunity to buy a great building that’s undervalued, and I buy it, and then I use a combination of long-term and short-term financing. And then I go about figuring out how to add value to it. When I complete that, I sell the building, and then I look for another one.” He said, “Well, how many can you do in a year?” I said, “In a year, it takes me like a year and a half to do one. But I’ve been doing really well. I’m averaging more income on each building than the President of the United States is getting paid, which was 200,000 a year at the time.”

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://ChristinaLA.com/

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

Larry Taylor & I Discuss Los Angeles Real Estate Investment & Development:

  • Adaptation to Market Cycles: Taylor underscores the importance of adjusting strategies to different market phases, capitalizing on downturns and optimizing strong market periods for exits.
  • Strategic Syndication: Syndication, as Taylor exemplifies, empowers smaller investors to join larger real estate ventures, pooling capital and expertise for mutual success.
  • Value Buying Strategy: Taylor’s approach emphasizes the significance of acquiring properties at favorable prices, reducing reliance on labor-intensive value-add methods and enhancing overall returns.
  • Understanding Tax Benefits: Exploring tax incentives, such as the Mills Act for historic properties, can notably impact a property’s performance and elevate investor returns.
  • Focus on Long-Term Wealth: Taylor’s preference for partnerships with high-net-worth investors and institutions aligns with a long-term wealth preservation strategy, prioritizing property performance over immediate distributions.

    

Relevant Episodes: (There are 226 Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.