Case Study: Small multifamily investments in growing Texas market

When market dynamics change, long term real estate investors have to adapt their approach to stay on track and accomplish their goals. Previously, I articulated the case for branching out into other growing markets and different property types when market conditions restrict supply to the extent that it threatens the investor's acquisition needs. Today, we are going to get deeper into the nuts and bolts of purchasing new construction, luxury small multi family properties (duplexes) in a growing … [Read more...]

Branching out to solve the Biggest Challenge: Small multifamily properties

In an article I wrote at the beginning of the year, I summarized the biggest challenge of 2014 for long term real estate investors in a single word: Supply. Now that the second quarter of the year is almost coming to a close, that prediction has become reality. And as we go into the summer months, supply historically shrinks even further as demand rises. In the meantime, your financial goals are still there, calling for acquisitions to be made to build income streams that lead to financial … [Read more...]

The principal reason you won’t become wealthy investing in real estate

The majority of my writing here covers real estate investment strategies and mindsets you can use to become wealthy with long term real estate investing. In various case studies, I have shown you how to create a six figure income  and how to retire in seven years  etc. by making smart real estate investments tied by the common thread of a solid Blueprint strategy. And that's all well and good. We all can benefit from a little more "big picture" insight to help us design and take charge of our … [Read more...]

The biggest challenge of 2014 for long term real estate investors

Sometime around the summer of 2013, the investing landscape in Houston began to change at a rapid pace. Demand soared, inventories shrunk to record levels and the Houston real estate market lit up like a wildfire. Bank owned foreclosures, the perennial sweethearts of investors everywhere that had accounted for one in four sales just a year ago, now barely contributed six or seven percent. The few properties that banks were bringing to market were either inaccessible to investors (in favor of … [Read more...]

How to find and screen tenants for your investment property

When you are trying to reach your retirement goals using a long term real estate investing strategy, there is a multitude of factors can make the crucial difference between success and failure. To mention a few, the quality of the location and school district, the price to rent ratios in your portfolio and the terms of your financing are all factors that lead to underwhelming results when compromised. But if I had to pick one factor that all successful long term real estate investors must get … [Read more...]

In the path of growth: Exxon’s mammoth campus under construction in North Houston

During the acquisition phase of your Blueprint real estate investing strategy, the temptation is to focus exclusively on well established neighborhoods. But as a neighborhood becomes more and more established, home prices rise and returns drop. So how can you get better returns without sacrificing quality? You buy properties in the path of growth. That well established neighborhood of today was at one point not so well established. Needless to say, investors that purchased properties in … [Read more...]

Straight talk on investing in small multi family properties

"I know you are against investing in two to four unit properties - but that's the direction I'm leaning in at the moment" - Theresa said somewhat tentatively. The overwhelming majority of case studies or portfolio scenarios I've written about involve the acquisition of a portfolio of quality single family homes in great school districts. Therefore, it is not at all surprising that some of you might assume I discourage the purchase of other categories of investment real estate. But the … [Read more...]

What is the return on investment for the Blueprint real estate investing strategy

After a workload-induced two week hiatus from writing, I'm back to answer one very frequently asked question. What is the return on investment when you execute the Blueprint real estate investing strategy? Investors that ask that question are usually trying to compare and contrast investments in different asset classes (stocks, bonds, commodities, life insurance, real estate etc) to make an allocation decision. After all, every investor has a finite amount of hard earned (even harder saved) … [Read more...]

Houston market update: Prices and Sales up, inventory drought

Statistics for the performance of the Houston real estate market during January were released a few days ago and they point to a strong Sellers market. All the required ingredients are there: Strong sales, higher prices and inventory levels unseen since Bill Clinton was President (December 1999 to be exact). So let me give you the "espresso ristretto" version of the real estate market stats for January 2013: Property sales were up 29% over January 2012 Average home sales prices were up 3.4% … [Read more...]

How to buy investment properties with no money

A large number of Investing Architect readers get here after googling "how to buy investment properties with no money" every week. Once arrived, they read extensive articles about our Blueprint real estate investing strategy in which long term real estate investors employ their hard saved capital to build a solid stream of retirement income using quality real estate investments. At first glance, the two are thoroughly incompatible - on the one hand, there are aspiring investors who seem to want … [Read more...]

Real estate investing and authentic Italian pizza

A couple of years ago, an American friend of mine went on vacation to Italy with the family and he tried authentic Neapolitan-style pizza for the first time. He was speechless! The pizza amounted to a unique culinary experience and had nothing whatever to do with its gooey American counterpart he had taken out thousands of times. "How is it possible - he asked the shopkeeper - that something made the same way from the same ingredients, can be so deliciously different?" The shopkeeper's answer … [Read more...]