Are you looking to invest in real estate? Not sure where to begin or how to expand your portfolio? Nick Libert is the perfect choice for many investors, due to his over two decades of experience as an investors' Realtor and an investor himself. Nick has represented winning investors in many profitable buy & hold acquisitions, flipping projects, and educated thousands of consumers as to the value of real estate as part of an overall balanced investment philosophy. His sage advice will help you work smarter, leverage financials, and educate you as to the whole process step by step. Libert's goal? Empower more lives through property to create an EXIT Strategy (hence the name of the brokerage he founded) from the rat race. Allow him to share some key resources below...
There are many options when it comes to investing in real estate, and this blog is designed to help you determine a few key things.
1. Why invest in property? Quite simply, it is one of the most stable, easily transferable, and controllable ways to create wealth for yourself, passive income, and multiple streams of income. Nick describes the two forms of real estate purchasing power out, Mattress Money (the home where you live) and then even more powerful, Mailbox Money (the properties you do not live in) in this podcast interview below:
2. What types of Mailbox Money investing are available? Well, you can either decide to Buy & Hold or Fix & Flip any acquisition. In buy and hold investing, you rent the units out for income (and of course, hopefully get long term price appreciation as well). In fix & flip, you are purchasing a property to improve it and sell it for a profit. The time to hold a property is much shorter in fix and flip, and while the potential return on investment (ROI) is much higher, so is the risk. Both can be viable options for investors. With either, there are some basic pitfalls you can avoid (learn from Nick's mistakes). In another podcast interview, Nick discusses some easy to follow guidelines for success:
3. What about vacation and second homes? Work with an educated pro! Nick holds the RSPS industry designation, Resort & Second-Home Property Specialist. To find out more about some of the tax benefits and options available for you to use when considering a vacation home or even an Airbnb property (Nick has significant experience helping buyers purchase short term rental properties) check out this third podcast interview:
4. A tremendous way to combine home ownership (mailbox money) and investing in a property you can rent out is to consider House Hacking. House hacking is when you purchase a multi-unit building you use as your primary residence, living in one unit and renting out the rest. You can potentially purchase with a lower down payment due to this being your personal home, AND your buying power can potentially be higher due to the ability to declare the rents received on other units as part of your overall income. Check out further on having your tenants pay some or all of your mortgage on Libert's blog dedicated solely to House Hacking (including updated FHA multi unit building loan limits) HERE. Nick breaks down the massive ROI available to House Hackers in this fourth exclusive interview:
5. What about distressed properties? Many investors gravitate towards Short Sales (properties where the owner is behind in payments, but has not yet lost the property to the bank) and Foreclosures (Bank Owned Properties, also known as REOs). Libert is deeply experienced in both, having negotiated dozens of short sales for distressed sellers over the years, as well as representing both buyers AND REO asset management sellers in the sale of many foreclosure properties over the past 20 years. He even has dedicated searches set up for each type of property (see the resource link library further below). Nick breaks down the differences between the two property classifications, as well as the risks and benefits of each, in yet another radio interview with his friends at the Heart & Home radio show:
RESOURCE LINKS & PRE-BUILT SEARCH LIBRARY
How do you calculate Return On Investment (ROI) on an investment property? Nick's got you covered! Check out THIS VIDEO. And if you want to determine Cap Rate just watch THIS VIDEO. Ready to talk to Nick? You can schedule an initial buyer's consultation HERE. And if you'd like to browse all available FORECLOSURE properties currently available in Chicago, you can search HERE. Finally, if you'd like to search all SHORT SALES currently on the market in Chicago, you can view them HERE. And to get a glimpse of what can go wrong (and right) in real estate investing in a real-world example featuring Nick himself, check out the 1st 10 minutes of an episode of CNBC's hit show The Deed: Chicago focused on his near ruin and redemption on a series of rehab projects below: