Fast Five for July

We're already more than halfway through 2023, can you believe it? Time is flying and the markets are hot. Let's recap the last quarter with real estate investing tips, opportunities, resources.?Grab your coffee and let's dive in!

1. Is this?deal right for you? Run through this checklist:

• Timeframe: Determine whether the expected investment timeframe is right for you. Real estate is not a liquid asset, so you have to be willing to hold your investment during that expected period and not have access to your funds. Most of our apartment opportunities are projected to be 3-7 years.
• Cash flows:?Make sure that the projected cash flows, during the holding period, are sufficient for your expectations (generally 4-8% annually). Some transactions have lower cash flows initially, but higher expected returns when it is sold or refinanced.
• Track record:?Invest with partners that have a strong track record, or are working together with other providers with good experience.
• Location:?Look for markets with a growing population and diverse employment. This will help to sustain lower vacancies, and provide strong opportunities to increase rents.

Want to talk through this with someone who's been around the block a time or two? I'm happy to chat,?let's connect.?

2. How can you finance your first real estate deal?

• The most common way to finance your first real estate investment is through traditional bank financing.?We typically work with regional banks or credit unions for financing our properties, as they have better flexibility when compared with large institutional banks.?
• If you need money fast, you could get personal loans from friends and family.?I once purchased a 9-unit building all cash for $280k by borrowing short-term personal loans from various people and provided them with an 8% annual return. Once I acquired the property, I acquired bank financing and paid them back.?
• If you are acquiring a large commercial property, you could create an LLC with several investors that share equally in the returns.?If creating an LLC, then make sure to engage with an SEC lawyer to set it up properly, and to avoid securities violations.?

3. Are you wealthy? Watch My TedTalk

It's time to change the status-quo of what it means to be wealthy and break down those barriers we've set. Four years ago, I accomplished something high on my bucket list by speaking at a Tedx Talk conference. I stood on a stage in front of hundreds of people to share my personal story and provided my views on how people can grow their personal wealth. It was truly life-changing.?Take a few minutes to watch and calculate your wealth with the "Wealth Factor".?

4.?Why I quit being a landlord:

At one point, I had 9 properties and 35 tenants - all accomplished while I was working my day job. Although I had good property managers, this required a lot of my time to manage the financials, coordinate with my team, and make significant decisions on improvements and tenant situations. Instead of investing time and resources across these many properties, I was able to find opportunities to invest in larger real estate transactions as a limited partner, collect similar returns, and free up the time of managing the assets myself. This has enabled me to scale up my real estate investments more substantially in a short amount of time.?My question for you: Is it time for you to scale up??

5. Last Call for Investors (90% invested)

Groundbreaking Real Estate is partnering with Aviana Capital Group to bring you the Autumn Sunrise Apartments (142 Unit Complex) in Corpus Christi, TX. This is a great last chance opportunity for those who are looking to grow their portfolio. Take a look at some of the sub-market highlights & business plan:

• Valuation:?Property already acquired in Dec 2022, and appraised As-Is for $945K more than purchase price!
• Fixed Debt:?5.35% Fixed Rate long-term debt provides stability, and flexibility throughout project
• Strong Cash Flows:?Investor returns are expected to reach 8% in Year 1 as the property is currently 95% occupied
• Rent Increases:?Rents significantly below market by $150-230/unit
• Risks Mitigation:?Insurance in-place, meeting Fannie Mae requirements, against wind & storm (not in flood zone)

Curious for more information? See the?Investment Summary Deck Here.

Did you learn something new or have more questions about one of the Fast Five topics above??Send us a note!

Whether you're a seasoned investor or just starting out, our goal at Groundbreaking Real Estate is to equip you with the knowledge and resources you need to make informed decisions and stay ahead of the competition. Make sure to stay connected with us on socials to be the first to get groundbreaking content.?

—The Groundbreaking Real Estate Team?

www.groundbreakingre.com