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Hey everybody!

This week, I wanted to give a brief update on my career and business and where I am headed.

Some of you on my newsletter list may already know, but I recently made the decision to leave my W-2 and focus on real estate investing full-time.

For the past several years, I was working on real estate outside of my day job, but realized that if I wanted to reach my goals and get to where I want to go, I had to make a change.

The opportunity cost of me spending the majority of my day at another job was not worth it to me and I felt like I could go farther and faster if I started working for myself.

There are only so many hours in a day and our time and energy levels are limited.

With that, I am currently focused on finding distressed single-family properties in Kansas City and fixing them up, renting them out and refinancing them.

I’m analyzing multiple deals daily and touring properties/making offers weekly.

My strategy involves:

-Forcing appreciation through rehab

-Renting the property out

-Refinancing on the back end to hold as a rental

I always think long-term when it comes to investing and real estate. I would rather own a property several years down the road in order to take advantage of:

-Appreciation

-Cash Flow

-Loan Paydown

-Tax Benefits

Currently, I have partnered with others who have wanted to get into real estate and buy properties, but didn’t know what steps to take and/or didn’t have the time or experience.

We work together as partners where I find the properties and manage the rehab and they provide any funding that is needed.

The funding is usually for the down payments made to contractors so they can order supplies and get started on the rehab. Each project from start to finish usually takes between 3-5 months.

I have found that partnering with others creates a win-win situation for both me as the active investor and for the passive investors who want the benefits of real estate, but don’t have the time to actively search for properties and have them rehabbed.

I have built a network in Kansas City with contractors, lenders, property managers, real estate agents, etc. and I really want to leverage these relationships to build a real estate portfolio and business.

Even though we cannot predict the future, I do have optimism about real estate in Kansas City. Below is a link to a BiggerPockets article showing Kansas City being listed as one of the Top 5 Recession Proof Housing Markets as the metro still has high demand for real estate.

best-recession-proof-markets

My end goal is to still purchase apartments with investors, but I decided to make a pivot to focus on smaller deals and build a track record with more deals first before I take on larger investments.

If you ever want to learn more about partnering on future deals, let me know!

-Caleb