In this episode, I interview Kenny Estes. Kenny is a successful real estate investor who specializes in buy-and-hold real estate. He has a very strong finance background. Kenny started his investing career while in college, and continued it it as a hobby for a number of years before going full-time. Unlike many investors, Kenny does not invest in his own town because the price of real estate is less attractive than where he actually invests.

Kenny was a really fun guy to interview, and has a lot of great insight into the world of real estate investing. He has a very realistic approach to real estate investing and is definitely not about hype, but rather about real world, down to earth, practical advice.

Overview of Kenny’s Business:

1. Primarily invests in South Bend, Indiana.

2. Spends a lot of his time talking to investors, procuring funds, and making sure his investors are well taken care of.

3. Now starting to look outside of the South Bend market.

A typical deal (case study) in Kenny’s business:

Commercial unit

$700,000.00 investment

Triple net lease

Cashflow per year- $74,000

10% return /year

What are the biggest mistakes that new real investors make?

Getting started too early. Some gurus make it sound too easy!

Not understanding the risk involved.

Taking on too much debt too fast.

Don't understand that investing is a job.

Advice for new real estate investors:

Should to be passionate about real estate

Find a mentor

Do (know) the numbers. Trust those numbers.

Plan your business with the thought of it lasting for the rest of your life.

Links

http://peartreeproperty.com – Kenny’s website

BiggerPockets – Great place to start looking for mentors

Google Drive – Document management