Chicago Cashflow Breakfast Club: REI Education & Networking event - 5/17

1000 N Milwaukee Ave, Ste 100, Chicago IL, 60642

Meeting Summary for Chicago Cashflow Breakfast Club: REI Education & Networking event - 5/17

Quick recap

The meeting covered various aspects of real estate investment strategies, including property acquisition approaches, team building, and networking opportunities among professionals. Quality discussed different investor types, rental property management strategies, and the financial considerations of being a landlord. The group explored cash versus financed purchase strategies, comparing return on investment metrics and discussing the evolution of investors from deal finders to private money lenders.

Summary

Real Estate Investment Strategy Shift

The meeting focused on real estate investment strategies and team building. Quality discussed changing their approach to property acquisition, moving from buying only fixer-uppers to purchasing turnkey properties due to challenges in finding reliable contractors. They emphasized the importance of working with licensed professionals and the need to narrow down their target market. The group also discussed the benefits of 100% loan property loans for real estate brokers and the potential for artificial intelligence in the industry. The conversation ended with an introduction to sponsors, including a nonprofit coffee company that donates proceeds to a village in Kenya.

Real Estate Networking and Collaboration

The meeting focused on introductions and networking among real estate professionals and investors. Participants shared their backgrounds, current projects, and areas where they seek or offer assistance. Key topics included property management, financing options, construction expertise, and deal flow. The group emphasized building a community for collaboration, learning, and growth in real estate investments. Next steps involved connecting members for potential joint ventures, sharing experiences, and exploring opportunities in off-market deals and creative financing.

Real Estate Landlord Investment Strategies

Quality discussed the different types of real estate investors, focusing on landlording responsibilities and strategies. He emphasized the importance of understanding financial goals, market conditions, and time management when deciding how many rental properties to own. Quality also highlighted the financial risks of being a landlord and ways to mitigate them, including maintaining a reserve fund, scheduling regular property inspections, and conducting thorough tenant screenings.

Rental Property Management Strategies

The meeting focused on rental property management strategies, with Quality sharing personal experiences and best practices. Quality emphasized the importance of matching the right tenant to the right property and conducting thorough interviews, while limiting unnecessary application fees. The group discussed the pros and cons of self-managing versus hiring property managers, with Quality considering hiring a manager for their single rental property due to time constraints. The conversation ended with an announcement of an upcoming networking event where participants would discuss their experiences with self-managing versus property-managing properties.

Real Estate Investment Cash vs. Finance

The meeting focused on comparing cash and financed purchase strategies for real estate investments. The discussion explored how different down payment amounts affect cash-on-cash returns, with examples showing that financing can sometimes yield higher returns despite lower monthly cash flow due to lower initial capital investment. The group also discussed return on equity (ROE) and how it changes over time, particularly in appreciating markets where equity grows faster than rent increases. The conversation concluded with insights about accidental investors who initially purchase properties as primary residences but later convert them to rentals, noting that while these properties may start with negative cash flow, appreciation potential can make them profitable in the long term, though tax implications and depreciation benefits were not fully explored.

Real Estate Investing Strategy Overview

The meeting focused on real estate investing strategies, emphasizing two primary paths: starting with time (as a deal finder) or money (as a private money lender). The discussion highlighted how investors typically evolve from one role to another, with deal developers holding the largest share (50%) of a deal's value. For first-time investors, the group advised against inheriting tenants and emphasized the importance of understanding one's risk tolerance and financial position before investing. The conversation ended with information about networking opportunities through the group's Facebook and Instagram accounts, with meetings held on the third Saturday of each month at 9:45 AM.

 

Checkout Instant Estimate

Instant Estimate

Checkout Rehab Matrix

Rehab Matrix

Check Ebook collection

Ebooks