Hybrid Agency Recap
Three guest speakers shared their experiences and expertise with the audience. Being an agent or an investor is hard enough, but being both might be worth the extra hassle. Stefanie Beierschmitt, Katie Ciochetti, and Collin, three of Asheville's most notable agent investors, discussed their experiences as hybrid agents and shared their strategies for investing in real estate.
Stefanie Beierschmitt, a real estate investor and realtor with 14 and 12 years of experience respectively, revealed her secrets for building a successful career in real estate. Katie Ciochetti, from Homespun Investment Realty, shared her inspiring journey from graduating with a degree in education to becoming a successful real estate investor. Collin, the founder of Altmont Property Group, discussed his experience as an entrepreneur in the real estate industry and shared his tips and strategies for success.
Pros and Cons of Hybrid Agency
Having both a real estate license and investing experience can provide significant benefits for those in the industry, including access to insider information and a deep understanding of the market. On the upside, agent investors can see deals ahead of time and are highly attuned to market trends, enabling them to make informed investment decisions. Instead of solely relying on numbers, they can assess a property's condition by seeing and touching it, giving them a unique advantage over other investors.
However, a downside of having a real estate license and investing experience is the potential for ethical transparency issues. Taking advantage of a situation when you have inside information can be easy, leading to conflicts of interest and unfair advantages. If you're fully transparent and treat people respectfully, this should not be a problem, even if it doesn't always work out in your favor. Overall, the benefits of being a hybrid agent outweigh the downsides, making it a smart choice for those looking to succeed in the real estate industry.
Strategies for Successful Real Estate Investing
Stefanie's initial strategy was strategically adding cash-flowing rentals to her portfolio and enjoy financial freedom. Now that she has achieved this goal, she is more interested in passive investments that require less time. Katie's strategy is geared towards her future, with a plan to purchase a cheap house outright and hold it as a rental for her retirement plan. On top of being an agent, Katie also builds and flips houses. Collin's primary goal is investing in the missing middle housing rental properties, which are easily financeable with high cash-on-cash returns. Ultimately, each property type has its challenges, and your strategy should reflect the problems you prefer to deal with. By tailoring your investment strategy to your goals and priorities, you can succeed in the real estate market.
Finding and Funding Real Estate Deals
Finding and funding real estate deals is critical to success. While many deals can be found through wholesalers and the MLS, the competition on the MLS can be intense. To stand out, it helps to look at properties differently and discover something others might not appreciate, as Katie does with renovation properties. Stefanie recommends initially occupying the house and getting an occupied loan with the best interest rate. Katie prefers to pay cash and use private money, even with high-interest rates, to ensure she gets the property. She then pays off the loan, benefiting everyone involved. Collin looks at cash-on-cash returns and blends them across his portfolio to buy a property. Following these strategies can increase your chances of finding and funding profitable real estate deals.
Moving Forward in a Shifting Real Estate Market
Moving forward with the current market shifts, you must have assets you can liquidate if needed. The agents recommend diversifying your assets beyond just holding cash in the bank or investing in silver or cryptocurrency. Katie believes the market will shift, making it difficult for investors to overpay for overpriced properties. She suggests running your numbers about 10% below the current market value and returning the property to the market at a reasonable price after modifications. Knowing and sticking to your numbers is very important! You won't get every deal, but it will allow you to move forward confidently with the deals you get.
Advice From The Speakers
- Just go for it! Don’t hesitate or wait, but be willing to take the leap despite the challenges found along the way. Over time, you will get better.
- Build a good network and community. Bouncing ideas on others will help anyone understand different aspects of real estate.
- Be tenacious and don’t give up, especially if the deal makes sense and will pay out.
- You can’t stay in the learning phase forever. To experience and understand real estate, going after your first property is essential.
- Be patient. Building a real estate portfolio takes a long time and is hard work.
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