88: Flip or Flop and One Year Update with David Pere

We recently had the chance to have our guest David Pere be a part of a panel where we discuss all things seller financing (see Episode 85). In this episode, we welcome him back to hear all about what he’s done since the last time we featured him on the show. Oftentimes, people who begin investing in real estate do it to supplement their income from a salary or quit their day jobs. Back in January of 2019, David introduced to us the idea and strategies to invest in real estate while serving in the military full time (see Episode 35). And since then, David has grown his out-of-state portfolio, taken part in a syndication, dabbled around with a flip, and is currently House Hacking in sunny San Diego. Up to this point, David is still serving in the Marines full time and simultaneously growing his business. He’s having a blast doing it and shows no sign of slowing down any time soon. Some key takeaways from our conversation with David: 1) Syndications are a good way to build wealth and you can definitely learn a lot about the business, but David wouldn’t recommend jumping into it as your first investment. There are many pieces to the puzzle, and it might just be a little too complex and a little too complicated for someone just getting started. 2) Be attentive to the contractors you hire. You don’t necessarily need to micromanage your contractors and handymen, but make sure you keep close tabs on their work. Make sure to look at the work they’ve done and make sure it’s done correctly. If you don’t know what to look for, make sure to have someone who does. This can be done by a trusted colleague or a property manager. 3) Be attentive to how you bill and pay your contractors. Projects can easily go over budget and become overrun because of poor planning. When dealing with the financial side of the business, you want to make sure you are on top of when your cash flows. If you want to stay profitable, do not get careless with your money. 4) Have reserves and budget accordingly. Despite having challenges with his rentals, David stays afloat because he has security in his investments. Many times, investors only focus on purchasing as cheap as possible, but ignore how to manage investments effectively as well. “Just because you can purchase a property for no money down doesn’t mean you should,” David says. Do your due diligence and create a plan with multiple exit strategies. If David could go back and talk to his 16 year old self, he’d tell him, “Start networking immediately and be better with your money!”   An unexpected benefit of real estate investing, David said, was the thrill of the hunt. David doesn’t necessarily need to work anymore, but he still does because it’s fun and he enjoys what he does. A piece of advice David would tell his friends looking to get started in real estate would be to “Learn, network, take action.” Surround yourself with people who are doing what you want to do. David recommends using Independent Community Bankers of America (ICBA) to help you find local community banks for financing and other perks that big institutions don’t offer. He recommends reading The Like Switch: An Ex-FBI Agent's Guide to Influencing, Attracting, and Winning People Over by Jack Schafer and Marvin Karlins to help you learn about the psychology involved in social interactions (because after all, real estate is a people business). If you’d like to get in touch with David, visit: www.frommilitarytomillionaire.com or follow him on Instagram @frommilitarytomillionaire