Auburn Investment Properties Podcast with Chris Kearns

In this episode, we kick off an easy 3 part series on The Basics with our first part: Basic Financial Stuff.  I look at average returns, what makes a hot or cold market, and different loan options.  Then I go into 5 different ways to buy - or control - properties without the traditional 20% down and give examples of properties in Auburn where I've used each of the 5 ways I mention, so you can drive by and check them out for yourself if you would like to do so.

5 Ways to buy or control Investment Property without the typical 20% down (examples given in podcast audio):

1. Seller Financing
2. Partners / Investors
3. Private Lenders
4. Options
5. Lease Options

Links from this episode:

• Work with Me
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Badger Properties, Auburn: BadgerProps.com
• Real Estate Investor Coaching: BetterREI.com

In this episode, we wrap up our 3 part Foundation series and look at Property Classes, what separates them from each other, and how to use that ranking system to help you know what to buy and what to do with it.  I also go through an example of how I used the "classes" framework to decide on renovations for a 12 unit apartment building and how things went totally sideways with this project during the recession and what I had to do to keep it from falling apart.

Property Classes:
Class A: Best properties, best floor plans, best neighborhoods, but may be too costly to hold as rentals
Class B: Nice, clean, & safe.  Nothing flashy, but easy to rent and maintain.
Class C: Obsolete floor plans, declining neighborhoods, less financially stable tenants.
Class D: Lowest income tenants, but often these have the highest rental returns.

Which is the best class for long-term holders to end up in and which is best for flippers to shoot for?

Links from this episode:

• Work with Me
• Overlook Apartments, Auburn: OverlookAuburn.com
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Badger Properties, Auburn: BadgerProps.com
• Real Estate Investor Coaching: BetterREI.com

In this episode, we continue our 3 part Foundation series and look at the second of 3 Big Decision that every investor needs to make to develop the strategy that works best for them in their current situation: Are they going after Cash Flow, or Capital Gains?

Cash Flow Investors:

• Slow and steady rent coming in
• Longer term holding period but less work
• Usually meant to supplement current income from a job
• Easier to manage yourself or hire a Property Manager
• Stick to timeless designs to save money
• Lower risk AND lower tax bill, but you must be patient
• More likely to succeed given a longer time horizon

Capital Gains Investors:

• Make money from profit when selling
• Usually buy, renovate, and sell in a few weeks to a few months
• Many people try to use this to replace current income from a job
• Management isn't usually a factor because there are no tenants
• Aim for current styles and trends
• Higher risk AND higher tax bill
• If it goes right, you make money faster

3 Big Decisions Investors Need to Make to Develop their Strategy

1. Are you playing Offense of Defense?
2. Are you going for Cash Flow or Capital Gains?
3. What class of property is best for you, to buy and also to rent or sell?

Links from this episode:

• Work with Me
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com
• More info on 1031 Exchanges: Auburn1031Exchanges.com

In this episode, we talk about the 3 ways to make money as a Real Estate Investor, and we start our 3 part Foundations series on the 3 Big Decisions that investors need to make to come up with a strategy that works best for them in their current situation.

3 Ways to Make Money in Real Estate:

1. Cash Flow, or monthly income from rent
2. Capital Gains, or profits from selling
3. Borrowing money and letting other people pay off your debt!

3 Big Decisions Investors Need to Make to Develop their Strategy

1. Are you playing Offense of Defense?
2. Are you going for Cash Flow or Capital Gains?
3. What class of property is best for you, to buy and also to rent or sell?

Links from this episode:

• Work with Me
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com

Description & Show Notes:
Welcome to the Auburn Investment Properties Podcast!  This short episode will introduce your host, Chris Kearns, and tell you what to expect from this podcast in the future, including our goals.

• Based in Auburn, Alabama
• Weekly episodes, 30-60 mins long
• Mix of strategy, tips, and interviews

Links from this episode:

• Real Estate Brokerage Services: Auburn Investment Properties.com