In the Market? Here’s What You Should Know About Contingencies

Home contingencies are aspects of home purchase contracts that protect buyers or sellers by establishing conditions that must be met before the purchase can be completed. There are a variety of contingencies that can be included in a contract; some required by third parties, and others potentially created by the buyer. While sellers in the current market prefer to have little to no contingencies, the vast majority of purchase contracts do include them, so here’s a primer to help you navigate any that come your way!

Financing Contingency

The most common type of contingency in a real estate contract is the financing contingency. While the number of homes that sold for cash more than doubled over the last 10 years, the majority of home purchases — 87% of them, in fact— are still financed through mortgage loans.

Why is this important? Because most real estate contracts provide a contingency clause that states the contract is binding only if the buyer is approved for the loan. If a contract is written as cash, in most cases, the financing contingency is removed.


Why Does The Financing Contingency Exist?

This contingency exists to protect the buyer. If a buyer submits a winning offer, but can’t get approved for a loan to follow through with the purchase, this clause can protect the buyer from potential legal or financial ramifications.

Tip: Homeowners can, and should, request to see a buyer’s prequalification letter before accepting their offer.

Home Sale Contingency

For many repeat homebuyers, they must sell a property in order to afford a new home. Whether they’re relocating for work, moving to a larger home, or moving to a more rural area, 38% of home buyers in a recent survey reported using funds from a previous home to purchase a new one. This is where a home sale contingency comes into play; this clause states that the buyer must first sell their current home before they can proceed with purchasing a new one.

Why Does This Contingency Exist?

This is another contingency that exists to protect the buyer. If their current home sale doesn’t close, this clause can protect the buyer from being forced to purchase the new home. In other words, they can back out of the new home contract without consequence. Keep in mind that in a seller’s market, this type of contingency offer is less desirable to sellers; in fact,  they may rule out your offer completely if this is included.

TIP: In many situations, homeowners can negotiate escape clauses for the home sale which would allow them to solicit other offers and potentially bump the current buyer out of the picture.

Home Inspection Contingency

Not only is it common, it’s also wise to include a home inspection contingency in any offer. Whether it’s a new home or an existing home, there is no such thing as a flawless house. Home inspections can uncover hidden problems, detect deferred maintenance issues that may be costly down the road, or make the home less desirable to purchase completely. A home inspection contingency essentially states that the purchase of a home is dependent on the results from the home inspection.


Why Does This Contingency Exist?

Whether it’s a roof in need of replacement or an unsafe fireplace, homebuyers need to know the maintenance and safety issues of the properties they’re interested in purchasing. If a home inspection report reveals significant (or scary!) findings, this protects the buyer from the financial burden that repairs would require. This is why agents will tell you it’s never a good idea for a home to be purchased without a home inspection contingency.

TIP: The findings from the report can usually be used to negotiate repairs or financial concessions from the seller.

Sight-Unseen Contingency

Especially during sellers markets, it’s not uncommon for a home to have dozens of showings within the first couple of days of listing. This breakneck pace can create a scenario in which homebuyers may not be able to coordinate their schedules to get a timely showing appointment. To help prevent missing out on the chance to buy a home, buyers in this situation will sometimes make offers on the home, sight unseen.


There’s no sugarcoating it…this is a high-risk strategy with ample opportunity for negative consequences. However, if this strategy is used, many real estate agents will add a sight- unseen contingency to their offer. This contingency states that the offer for purchase is dependent on the buyer’s viewing of, and satisfaction with, the property.

Why Does This Contingency Exist?

In a market with shrinking inventory, desperate buyers want a fighting chance at a hot property; in some cases, that can only exist by submitting an offer before they can see it in person.

TIP: Sight unseen offers are also high risk to the seller. If you include this contingency in your offer, try to keep other seller requests to a minimum. 

Why Contingencies Can Be Positive

In a seller’s market, buyers may feel the pressure to remove as many contingencies as possible in order to compete. But, it’s important to remember that contingencies are actually safeguards in place to prevent buyer remorse, expensive future repairs, or financial calamity. It’s always crucial for buyers to hire a seasoned real estate agent who can advocate for their best interests, negotiate and strategize in safe and competitive ways, and advises them of the risks of each decision.

Looking to Buy? Don’t Go it Alone!

The homebuying process is a complex one, but that doesn’t mean you’re left with all the heavy lifting. Find your dream home and a local agent on, then visit our “How to Buy” section for all the step-by-step insights for a smooth process.

Jennifer is an accidental house flipper turned Realtor and real estate investor. She is the voice behind the blog, Bachelorette Pad Flip. Over five years, Jennifer paid off $70,000 in student loan debt through real estate investing. She’s passionate about the power of real estate. She’s also passionate about southern cooking, good architecture, and thrift store treasure hunting. She calls Northwest Arkansas home with her cat Smokey, but she has a deep love affair with South Florida.


Blanket Mortgage Loans – Definition, Pros & Cons of Using for Real Estate

For real estate investors, juggling multiple property deals and loans can get complicated.

Blanket loans often help simplify matters. Borrowers take out a single loan to cover multiple properties.

Even so, blanket loans come with their own quirks and have their pros and cons. Before entering into a blanket loan as an investor, make sure you understand exactly what you’re getting yourself into.

What Is a Blanket Loan?

A blanket loan is simply one loan that attaches to several real estate investment properties.

For example, if you buy a portfolio of five properties, a blanket loan allows you to take out one mortgage that covers all five buildings. The lender attaches a lien against each property, so if you default on your loan, the lender can foreclose on all five properties to recover their money.

Lenders do typically include a release clause, allowing the borrower to sell individual properties held as collateral as part of a blanket loan. However, they require the borrower to either repay a portion of the loan at the time of sale or put the money toward another investment. The lender then attaches a lien to the new investment property as a replacement for the sold collateral property.

That keeps their collateral — your remaining properties secured by the blanket loan — sufficient to cover their loan risk.

Who Takes Out Blanket Loans?

Blanket mortgages are exclusively for real estate investors and developers, not homeowners.

Investors can use blanket loans in many ways to invest in real estate. Landlords can take out a blanket mortgage to buy a portfolio of turnkey rental properties, as outlined above. Flippers could do likewise, to buy several fixer-uppers to renovate and flip, all with one loan. As they sell off properties, they typically repay a proportion of their loan.

Real estate developers use blanket loans to buy large swaths of land that they plan to subdivide into many units. As they build and sell off those units, they can either repay portions of the loan or put the money toward adding more properties to the portfolio.

Businesses with multiple locations and commercial properties can also use blanket loans. That could mean refinancing multiple existing loans into one blanket loan, or using a blanket loan to buy several new locations in one sweep.

When You Should Use a Blanket Mortgage

As touched on above, you can either use a blanket loan at the time of purchase or you can refinance to consolidate multiple mortgages into one loan.

It makes sense to use a blanket loan at the time of purchase if you plan to buy multiple properties simultaneously. You may also be able to negotiate staggered funding if you buy multiple properties in rapid succession but not quite simultaneously.

Another possibility with blanket mortgages includes buying only one new property, but securing the loan against other properties you own for additional collateral. Real estate investors sometimes do this in lieu of making a down payment on the new property.

For example, say you own a property worth $100,000, but you only owe $50,000 on it. You want to buy another property for $100,000, and the lender demands a $20,000 down payment.

Rather than cough up the $20,000 in cash, you offer your existing property as additional collateral for the new mortgage loan. The lender agrees to fund the full $100,000 for you to buy your new property, but puts liens on both properties. They now hold the first (and only) lien against your new property, and they have a second lien against your old property.

Advantages of Blanket Loans

Blanket mortgages come with several upsides for real estate investors.

To begin with, they can save on lender fees and settlement costs by holding one combined closing rather than having to pay separately for several. Lenders charge flat fees in addition to points, and those flat fees add up quickly. Title companies also charge many flat fees for each closing. With blanket loans, borrowers can pay those flat fees once, rather than at each settlement.

Aside from saving money, combining financing for several properties into one loan can also keep your finances and cash flow simpler. Rather than keeping track of 20 mortgage payments and loans, you need only track one or two.

When buying new properties, blanket mortgages can potentially reduce or eliminate your down payment if you use equity from an existing property for a cross-collateralized loan. Consider it one more way to pull equity out of your properties — and one that doesn’t require a totally separate settlement with its attendant costs.

Larger loans often mean more negotiating room for you as the borrower as well. Lenders don’t need to charge as many points on a $1 million loan to make it worth their while, compared to five $200,000 loans. Similarly, borrowers can often negotiate lower interest rates as well.

Downsides of Blanket Loans

Blanket mortgages come with their share of risks and disadvantages.

To begin with, it can be hard to find lenders that offer these loans. Up to this point in your real estate investing career, you may have established relationships with two or three lenders — none of whom might offer blanket loans. That forces you to go out and build new relationships with lenders who do.

Expect more intensive scrutiny by the lender for these larger, more complex loans. Rather than using a garden variety underwriter, bank managers might underwrite these larger loans themselves. Lenders might ask more probing questions and require more extensive documentation and paperwork from you. They may require higher credit scores than their typical loan products.

Blanket loans often come with shorter loan terms than traditional mortgage loans. Rather than the 25- or 30-year loan terms you’re used to, lenders often limit blanket loans to 10 to 15 years. That could come in the form of a balloon payment, or the loan could be entirely amortized over those 10 to 15 years. In the case of short-term amortization, that means higher monthly payments.

Finally, blanket loans pool your risk for many properties into a single loan. If you default on that loan, you could lose all the properties secured by it to foreclosure, not just one. In contrast, if you hold separate loans for each property, in a crisis you could isolate your losses to one property as long as you can afford to make your other monthly payments.

Where You Can Borrow Blanket Loans

Conventional mortgage lenders don’t typically allow blanket loans. Commercial lenders, portfolio lenders — who keep loans on their own books rather than selling them — and hard money lenders often do allow them.

Make no mistake, these lenders usually charge more than your personal home mortgage lender. But they also allow far more flexibility, and as a real estate investor, that flexibility is often necessary.

Call up your local community banks to ask whether they offer blanket loans for real estate investors. You can also reach out to portfolio lenders such as Lending Home and Rental Home Financing to inquire about them. For commercial loans, make sure you choose a commercial lender, because even many portfolio lenders only handle residential (single-family and 2-4 unit multifamily) properties.

Word to the wise: start building these connections now, before you actually have a time-sensitive deal on the line. Real estate investors need to be able to move fast and close deals quickly, else they risk losing the deal entirely.

Final Word

The average mom-and-pop property owner with a couple units on the side of their full-time job will probably never need to take out large blanket loans. But for real estate developers and full-time real estate investors, blanket loans can help them scale their investment portfolios faster and cheaper.

Start expanding your network of lenders now, before you have a hot deal at risk of falling through. Think in terms of building a financing toolkit of many different options for buying your next investment property — or portfolio of properties.


Buying A Home? Here’s How To Navigate Intense Bidding Wars

It’s no secret that residential real estate is an extreme seller’s market. For sellers, this is excellent news, as many are netting hefty profits on their home sales. For buyers, however, the stress of multiple offer situations, higher prices, and intense bidding wars has become the new normal.

If homebuying is on your 2021 radar, it’s crucial to prepare for the reality of this market. And while you may have heard horror stories of bidding wars, don’t worry — it IS possible to win a multiple-offer situation and secure the house of your dreams! Here are 7 things to know when navigating these situations.

bidding warsbidding wars

Come Out Strong

Even if a home isn’t currently in a multiple-offer situation, it can become one in a matter of hours. That’s why it’s important for buyers to always put their best offer on the table from the start. While buyers may hope the seller will negotiate a lower offer, that just isn’t the reality of the current real estate market. Sellers have the luxury of rejecting any offer that isn’t ideal.

Dan McQuillen of The Danberry Company Realtors in NW Ohio says “In this market we are telling the buyers that they better assume they only get one chance at getting the house.” But, what is a strong offer in this market? In a nutshell, meeting the seller’s list price or above, not asking for concessions, providing a quick close, and even requesting minimal to no repairs, could go a long way in winning intense bidding wars.

Get Pre-Approved

While cash is king in the real estate world, most homebuyers need to obtain a loan to purchase. Sellers want the reassurance that buyers have the capability of getting approved for a home loan. McQuillen adds that he frequently sees buyers make the mistake of “not being pre-approved with a reputable lender.” By working with a local lender who is confident in your loan approval, you can help reassure sellers that you’re a qualified buyer who can make it to the closing table.

(READ MORE: How to Finance Your Home)

Keep Requests To A Minimum

In a seller’s market, the seller is in the driver’s seat, leaving buyers at their mercy. Given the current status of the real estate market, sellers don’t need to provide concessions to buyers. Sellers in today’s market prioritize “clean” offers: no closing cost assistance, no contingencies, no additional warranties, etc. McQuillen sums it up: “Don’t nickel and dime the seller.”

If a buyer does need to request seller-paid closing costs on their behalf, McQuillen suggests “write a higher offer and find out what else is important to the seller. There may be things besides price that the seller would like.”

Be Prepared To Lose A Few Rounds

It’s not uncommon for homebuyers to go through multiple rounds of bidding wars on multiple homes before they finally get an offer accepted. This is what causes many buyers to become discouraged with the process. However, it is possible to buy a home in this market—you just need perseverance, a highly experienced real estate agent, and realistic expectations.

Get An Agent….Then Get Real

The single greatest asset in navigating an intense seller’s market is a dedicated advocate in your corner. A buyer’s agent is a representative who does much of the heavy lifting for buyers. Their experience and knowledge of the market can assist buyers in creating offers that provide the most appeal—from price, to closing date, and everything in between. Buyer’s agents are knee-deep in multiple offer situations every day, and many have the hard-earned experience to set their client’s offer apart from the crowd.

bidding warsbidding wars

One of the greatest mistakes a buyer can make in a multiple offer situation is have lofty expectations. Expecting sellers to reduce the sale price, leave behind thousands of dollars worth of furniture or complete extensive repairs is simply not the reality of this real estate market. If you’re not entirely sure what the whole reality of the market is, it’s one more reason to work with an agent.

Be Flexible

Several factors can help you navigate intense bidding wars, but there is one thing that could derail all those efforts: inflexibility. If you’re unwilling to look outside a geographic area, or rigid on your closing date, or refuse to negotiate on the terms of your offer—you will create a scenario that only brings more difficulty and frustration.

In all areas of the process, it’s important that buyers are flexible. That flexibility can help you stand out among a sea of offers.

McQuillen suggests “It could be that the seller would really like to sell the house and be able to rent back the house for a period of time,” so by offering a flexible close date, your offer could very well rise to the top of the list.

Know When To Fold Them

In this market, real estate agents are seeing buyers offer thousands of dollars over list price, waiving inspections, and even agreeing to pay over appraisal value out of desperation to win bidding wars. But, that desperation can be a recipe for buyer’s remorse.

As McQuillen explains, “The risk in waiving an inspection is there are some pretty significant issues with the house that the purchaser would be stuck with. The risk of waiving an appraisal is that the house doesn’t appraise and, worse yet, appraises for significantly less than the purchase price; then the purchaser has to come up with more money out of pocket than they were anticipating.”

If in the course of the bidding war the seller is expecting you to overextend yourself or open you up to greater risk, it’s okay to walk away from negotiations. It’s better to have rejected the deal than to sign up for a bad deal.

Extra Advice: Stay Informed

Trends and market conditions can change in mere hours, so stay informed with all the up-to-date information you need with resources. Local market reports, tips and advice, and consumer resources are all at your fingertips, so keep us bookmarked!

Jennifer is an accidental house flipper turned Realtor and real estate investor. She is the voice behind the blog, Bachelorette Pad Flip. Over five years, Jennifer paid off $70,000 in student loan debt through real estate investing. She’s passionate about the power of real estate. She’s also passionate about southern cooking, good architecture, and thrift store treasure hunting. She calls Northwest Arkansas home with her cat Smokey, but she has a deep love affair with South Florida.


AcreTrader Review – An Easier Way to Invest in Farmland

One of the most important parts of building a successful investment portfolio is diversification. Holding a mixture of different assets, like stocks, bonds, and real estate can help you reduce volatility. If one asset does poorly, another type might perform well and offset the losses.

Real estate investing can be very complex. Investing in real estate can be difficult without the help of vehicles such as real estate investment trusts (REITs). Even then, there are many different types of real estate you can invest in.

AcreTrader is a unique real estate investing platform that helps everyday people invest in an often-overlooked type of real estate: farmland.

What Is AcreTrader?

AcreTrader is a real estate crowdfunding platform that facilitates investments in U.S. farmland in places like Arkansas and other states across the Midwest. Traditionally, farmland investments have been difficult for the average investor to make, so AcreTrader aims to make the process easier.

The company has a team that combines experience in both agriculture and finance. The company carefully selects the opportunities it offers to investors and claims that it only selects 1% of the investment opportunities it sees.

AcreTrader also handles the management of these investments, paying out rental income and facilitating a marketplace where investors can sell their shares of farmland to others interested in buying farmland.

Key Features of AcreTrader

There are a few key facts to know about AcreTrader.

Thorough Underwriting

For many investors, it can be difficult to do due diligence when investing in real estate. Several factors influence the value of real estate and its potential returns, and farmland is unique enough that most people don’t know what to consider when thinking about an investment.

AcreTrader offers help with this through its underwriting process. The company only accepts 1% of the opportunities it receives from farm owners, based on the research and knowledge of its leadership.

AcreTrader displays investment opportunities for customers to consider. It also assigns a rating to each opportunity based on its risk and potential return according to AcreTrader’s vetting process. Investors can see the expected cash return, the overall expected return, the location of the farm, and the crops that will be grown.

By only accepting the best opportunities, AcreTrader hopes to provide strong returns and limit risks for investors.

Buying in Small Amounts

AcreTrader places each farm it buys into a limited liability company. It then divides the farm into shares representing one-tenth of an acre. That makes it easy for investors to invest the exact amount that they want.

Keep in mind that each offering has a minimum investment based on the size of the farm. The minimums tend to range from $15,000 to $20,000.

AcreTrader is only open to accredited investors, meaning people with an annual income of $200,000 or more ($300,000 for couples) or a net worth exceeding $1 million. That makes the $15,000 to $20,000 minimum relatively reasonable for its intended audience.

Multiple Sources of Return

Once an investment offering is fully subscribed, AcreTrader takes over the management of the farm. It works with professionals in agriculture and local farmers to help improve farm value through:

  • Sustainability improvements
  • Implementing best practices
  • Technological improvements
  • Capital investment

The farmers working the land also pay rent to AcreTrader annually. AcreTrader charges an annual management fee of 0.75% of the land value to its investors, taken out of the rent income it pays out to the investors.

AcreTrader states that it typically looks for opportunities that will yield 3% to 5% after fees and capital appreciation sufficient to result in an annual return of 7% to 9%.

Trade Shares or Hold Until Maturity

Investors on AcreTrader have two options for earning a return when they invest in farmland.

It operates a marketplace where its customers can sell shares to other investors. Customers can only sell AcreTrader shares through AcreTrader; they cannot sell them on the open market. This can make the shares far less liquid than the securities many people are used to, which trade frequently on the open market.

For people who don’t want to sell or who cannot find a buyer, AcreTrader investments come with a maturity date. When AcreTrader buys a property, it typically intends to hold it for three to five years, although sometimes the time frame extends as long as 10 years. This gives the company’s team time to make improvements to the land and the methods used to farm it, increasing its value.

Once the investment’s end date arrives, AcreTrader sells the farm and distributes the proceeds to the shareholders.

Flat Fees

AcreTrader charges a simple 0.75% fee for its investments, based on the value of the underlying farmland. Investors don’t pay the fees out of pocket. Instead, the company deducts the cost of managing the investment from the cash rent payments it receives from farmers. It passes the remainder on to investors as annual distributions.

Some opportunities may also come with closing costs associated with purchasing the land.

The 0.75% annual fee is relatively typical for companies that facilitate real estate investments.

How Have Farmland Investments Fared in the Past?

Past performance doesn’t indicate future results, but looking at how farmland investing performed in the past can provide some information to investors.

AcreTrader claims that since 1990, farmland has been one of the best-performing assets in the United States, outpacing the returns offered by stocks, bonds, precious metals, and traditional real estate. According to the company, an investment of $10,000 made in 1990 would now be worth nearly $200,000.

Much of this growth came from a recovery in the market for farmland following a crash that saw prices fall from a high in the early 1980s, as well as a boom in the late 2000s caused by increasing demand for ethanol.

Inflation-adjusted, farmland saw little change in value between 1900 and the 1960s, until the boom that began in the late 1960s and early 1970s.

Keep in mind that part of AcreTrader’s value proposition is improving the operating of the farms it purchases. The company’s team includes people highly experienced with agricultural best practices and technology. Even if farmland as an asset class holds steady or falls in value, AcreTrader may manage to increase the value of the specific properties it buys through the improvements it implements.

The promise of distributions from the rent AcreTrader receives also helps to offset the risk of falling or stagnant land values.

All in all, that means that is certainly potential for farmland to be a successful investment, but there’s no guarantee it will offer significant returns or outperform other asset classes.


AcreTrader brings a few important benefits to the table.

1. Access to a Unique Asset Class

One of the primary benefits of investing through AcreTrader is access to investments in farmland. Farmland is a relatively unique asset class. It can be hard to get exposure to it through more traditional channels.

That means AcreTrader provides a unique opportunity to diversify your portfolio and capture gains most people don’t have access to.

2. Carefully Selected Offerings

AcreTrader touts its team’s combined experience in the worlds of both agriculture and finance. The company says it only accepts 1% of the opportunities that are presented because it has strict requirements that ensure the investments available through its site are of the highest quality.

If you believe in the expertise of AcreTrader’s management team, you can feel confident that you’re investing in high-quality farmland with great potential to produce income and grow in value.

3. Annual Cash Payments

AcreTrader offers returns in two forms: cash from the rental payments made by farmers working the land AcreTrader owns, and land appreciation created by the investments AcreTrader makes into updating the farms it purchases. These investments can help increase crop yields and make the land more valuable.

The regular cash payments can help smooth out returns if farmland fluctuates in value and provide investors with passive income. It can also provide a stream of income investors can use to add to their portfolio or cover other expenses.


AcreTrader isn’t perfect, and it’s important to know the drawbacks before you start investing.

1. Relatively Unproven

AcreTrader was founded in 2018, which means the company has only been around for a few years. While the company is reputable, it doesn’t have the long track record of producing a positive return that other investment companies have.

It also means the company doesn’t have significant experience handling changing market conditions, which could increase risk during market turbulence. You might also worry about leaving the management of land that’s miles away from you to AcreTrader’s management team.

If you want to invest in similar asset classes, you might consider commercial real estate or other alternatives if you dislike AcreTrader’s lack of history. There are other real estate crowdfunding platforms, such as Fundrise, that facilitate commercial real estate investing.

2. Potentially Low Liquidity

When you buy shares in a farm through AcreTrader, it may be difficult to sell those shares to other investors. With traditional investments like stocks, bonds, and mutual funds, you can generally sell your investment on demand. This is important if you need to access your funds because of a financial crisis.

On AcreTrader, you can only sell your shares to other AcreTrader users through the platform’s marketplace. AcreTrader restricts investment to accredited investors, which limits the number of people who can join the platform. Non-accredited investors can’t get involved. That means there’s no guarantee you’ll find someone who wants to buy the shares you’re selling.

Given that the investment is relatively illiquid, if you need your money back, you might find yourself having to wait through the five- to 10-year holding period for AcreTrader to liquidate the investment and distribute the proceeds to investors.

3. Available to Accredited Investors Only

AcreTrader is only open to accredited investors. To qualify as an accredited investor, you must meet one of the following requirements:

  • Have an individual or joint (with a spouse) net worth exceeding $1 million, excluding your primary residence
  • Have an individual income exceeding $200,000 per year and a reasonable expectation of the same level of income in the current year
  • Have a joint income (with a spouse) exceeding $300,000 per year and a reasonable expectation of the same level of income in the current year

According to 2016 Federal Reserve data, only about 10% of households qualified as accredited investors, which means the majority of people cannot invest through AcreTrader.

Final Word

AcreTrader offers exposure to an unusual and potentially lucrative asset class for investors with sufficient net worth or income to qualify. The company helps with due diligence by only offering the best opportunities it comes across, but further research should be part of every individual’s investing process.

If you can’t invest through AcreTrader, or you’d prefer to invest in real estate through more traditional means, REITs provide an easy way to invest in different kinds of real estate while letting you use your regular brokerage account. You can also look into other real estate crowdfunding sites and investment platforms.


What Can Real Estate Investor Association Clubs Teach You?

Last Updated on May 22, 2020 by Mark Ferguson

Real estate investor association clubs can be a great way to find amazing deals. The clubs offer numerous educational opportunities and networking opportunities as well. The groups can be free, or some have a membership fee. Like anything in life, you get what you put into it. If you are willing to go to meetups, talk to other investors, and ask for help, you will get much more out of it than if you sit in a corner and don’t say a word. I have been to a few clubs and even spoken at a few as well. REIA clubs are not magic and will not make you an investor, but they can be a useful tool. Some clubs can even get you discounts at stores like Home Depot.

What are real estate investor association clubs?

REIA clubs are for real estate investors to mingle and share ideas. Many REIA clubs have monthly meetings with guest speakers who are experts in their field. The meetings usually consist of a speaker, time to network, and food or drinks. I have spoken at a couple of REIA club meetings to discuss HUD homes and how investors can get a great deal on them. There will be lenders, real estate agents, and many other investors at REIA club meetings.

Some clubs have online sites, newsletters, and even coaching programs. Each club is different and runs a little differently than the next one.

What does an REI club cost?

Many clubs are free and open to anyone who wants to join or attend a meeting. Other clubs have monthly or yearly fees to join. Some clubs are very expensive, or their main focus is to sell very expensive coaching programs. Most of the clubs I have spoken at have been free and open to anyone.

We belong to one club that has a $200 a year membership fee. I don’t think I have been to any of there meetings in years, but because we are a member, we get a 2% discount on everything at Home Depot. It is well worth being a member for that perk, and while I have heard that Home Depot may be getting rid of this program, it is still active in my area.

What can you learn at a real estate club?

Many people go to REAI clubs to learn or they want to here people speak about certain topics. There are a number of things you can learn at the meetings, but as with anything, the quality of what you learn depends on the speakers and the people who run the club.

I have seen some clubs make some pretty outrageous claims and offer some less than stellar advice because they are trying to sell their own coaching programs. They are going for the shock and awe marketing technique to get attention without caring about the bad advice they are putting out there. Other clubs are very honest and offer a lot of great advice.

You can learn about a number of different subjects in a meeting or club:

  • Wholesaling
  • Rental properties
  • Flipping
  • Note buying
  • Real estate agents
  • Auctions
  • Foreclosures
  • Finding deals
  • Financing
  • Much more

I would advise to learn from more than one source and not get too excited about the outrageous claims that might come from some clubs, especially if they are trying to sell a very expensive coaching program.

Who can you network with at the meetings?

One of the big advantages of the REAI meetups is networking with people who may be able to help your business. I have met some cool people at the meetings, but again, be wary and don’t get too excited.


There are many wholesalers at real estate investor clubs who could be very valuable to any investor. A wholesaler finds properties to buy but usually does not want to fix and flip the house or rent it out themselves. They want to flip the property quickly, and in some cases, without even buying the house. Wholesalers prefer to sell or assign their deals to investors, and many times, the houses are sold well below market value.

One of the main reasons I attended meetings was to meet wholesalers and to start building relationships. A key ingredient to any investor’s successful strategy is finding properties at below market value. I never met any wholesalers at an REAI meetup that sold me a deal. I met a lot of wholesalers, but I think most of them were very new. I have bought houses from many wholesalers, but I met them through many other means.

There will be many wholesalers at meetups but realize they may be very new and just learning the business. A lot of them have high expectations. which is great, but don’t expect a ton of deals to start flowing your way from every wholesaler you meet. I would estimate 1 out of 10 people who call themselves a wholesaler will ever do a deal.


There are usually a few hard-money lenders at the meetings, or they may even sponsor or put on the meeting. Hard-money lenders specialize in financing house flips, but the loans can work for rental properties as well in some cases. I have used hard money a few times but prefer private or bank money.

You will usually see local hard-money lenders at the meetups. I have learned to be very cautious of the local lenders. I have had deals fall apart because a local hard-money lender turned out not to have any money to lend! The local lenders can also be much more expensive than the bigger, national hard-money lenders.


Many people think other real estate investors are their competition and to be wary of them. That is true, but they can also help your business. Many successful investors are willing to share their experiences to help others, and they may be able to help your business as well. They may be a buyer for your wholesale deals, or they may have too many deals themselves and look to sell some occasionally.

I would meet all the local investors you can and make friends with as many as you can. You do not have to give away all your secrets, but having those connections can be a huge help.

Real estate agents

There may be investor-friendly real estate agents at the meetups as well. Some agents at these meetings are great and others not so much. It does not hurt to network and consider using them if you need a real estate agent. I would take your search seriously and not just work with the first agent you find.

How do you find real estate meetups?

It can be tough to find meetups, especially if you are in a small area. There are not any local consistent meetups by me. I have to travel about an hour to find one. I found those meetups through networking. Other investors I knew told me about them. You can also find meetups through sites like Bigger Pockets, local Facebook investing groups,, or online searches.


REIA meetups and clubs can be a great resource for networking and learning. However, I would not rely on them solely to provide you with everyone and everything you need to know. I would also curb your enthusiasm if you are expecting to meet 20 people who will constantly bring you deals from the clubs. Most meetings are full of new investors looking to learn.


Is an ARM (Adjustable Rate Mortgage) a Good Loan?

ARMs or an adjustable-rate mortgage is a loan where the interest rate is fixed for a certain amount of time, but the rate can adjust after that fixed period expires. For example, an ARM may have a fixed period of 5 years at 3% interest. For the first 5 years the loan interest rate will be 3% but after the five years are up the interest rate can adjust up or down depending on what the current interest rates are. I have used many ARMs to invest in real estate and for my personal houses that I live in. I think ARMs are a great option for many people but you must be careful with them and some ARMs are set up in a very risky way. ARMs were also a contributor to the last housing crash but it is really tough to get a loan now like they were before the crash.

What is an Adjustable Rate Mortgage (ARM)?

Adjustable-rate mortgages or ARMs have gotten a bad name in the last past because many people used them to buy houses they could not afford before the housing crisis. An ARM is a loan that starts with a low-interest rate, but the interest rate can increase after a set period of time. A 5/30 year ARM is a 30 year loan with an initial rate that is fixed for the first five years but can increase on the sixth year. There is a cap for how much the interest rate can increase after the adjustment period, and a minimum it can decrease. An ARM can adjust up or down depending on where interest rates are when the loan adjusts. On my loans, the rate might start at 4.5 percent, but could raise up to 8 percent (investment properties). The rate cannot increase more than 1 percent in any given year.

Most ARMs will have a 3, 5, 7, or 10 year fixed period. In the past, there were ARMs with 6 month fixed rate periods and the interest would jump after those 6 months were up. These were some incredibly risky loans and many consumers had no idea what they were getting themselves into. Currently, it is almost impossible to get a loan like that as the government really tightened up regulations after the last crash.

How does a mortgage work?

Why use an ARM?

Lower rates

An ARM usually has a lower interest rate than a fixed mortgage. A 30 year fixed rate mortgage would have the same rate for 30 years. If the rate on a 30 year fixed rate loan is 3%, the rate on a 5/30 ARM might be 2.5% or lower. The real advantage is when interest rates are higher. When rates were 5% the rate on an ARM might be 4%, which can save hundreds of dollars a month and thousands of dollars a year.

When rates get really low, in the 2 and 3% range an ARM may not have much lower of a rate than a 30-year fixed loan. There may be no advantage to using ARMs when rates are super lown and you may want to have that super-low rate locked in as long as you can.

Portfolio lenders

Another reason I use an adjustable rate mortgage is they are one of the few options available from my local lender. I use a portfolio lender who lends their own money on loans; they do not sell the loans to other companies or investors like most banks do. My portfolio lender offers a 5 year and 7 year ARM as well as a 15 year fixed loan. The 5/30 year ARM has the lowest payment, lowest interest rate and works perfect for my cash flow strategy. The reason I use a portfolio lender is many lenders will not loan to investors when they have more than four mortgages. My portfolio lender will lend on as many loans as I can qualify for, but I must use their limited loan options. Portfolio lenders can also be a great option for getting a loan on a home that needs repairs.

I much prefer a 30-year loan to a 15-year loan because you pay so much more into the 15-year loan in the first 15 years. I could use that money to invest instead and make way more money than paying off a 3% loan faster. If I want a 30-year loan, the only option I have is to get an ARM that could adjust in the future.

Commercial loans

I also own commercial properties and most commercial loans do not offer long-term fixed-rate mortgages. They often have loans with 3, 5, or 10 year fixed periods and some will have a longer variable period on the loan. Commercial loans also have lower loan terms and 30-year terms will be very hard to find. YOu may be able to get 20 or 25-year terms.

Are ARMs riskier than a fixed-rate loan?

ARMs have gotten a bad name due to the high number of loans that were foreclosed on during the housing crisis. The reason so many people lost their homes with an ARM was they qualified on the low initial interest rate. When the rate on the adjustable-rate mortgage went up after five, three or even one year, the homeowner could no longer afford the payment. If you are thinking of getting an adjustable-rate mortgage, make sure you can afford the payment increases even if you think you will have the loan paid off by then. Do not depend on being able to refinance to get yourself out of the loan. If you buy homes in a smart way by getting a good deal, and the market does well you can most likely sell if the rate adjusts, but if the market changes the wrong way you may find yourself in trouble if you stretched yourself too thin!

For more information on real estate investing check out my best-selling book: Build a Rental Property Empire: The no-nonsense book on finding deals, financing the right way, and managing wisely.

An adjustable-rate mortgage may be cheaper than a fixed-rate loan

The interest rate on an ARM is lower in the beginning of the loan than a fixed-rate loan most of the time. The ARM may be cheaper than a fixed rate loan even if you do not pay off the ARM right away and the rate increases. During the five years that the ARM is at its low rate, you are saving money every month over the fixed-rate loan. Even if you don’t pay off that ARM and the rate adjusts, it would still take years for the total cost of the ARM to catch up to the fixed-rate loan. If you reinvest the money you are saving from the ARM and make a higher return on that investment than the interest rate on the loans that will make you even more money. It usually takes 8 years and an ARM adjusting to its maximum amount, before the fixed-rate loan saves you money.

Again, this assumes the ARM has a much lower rate than a fixed-rate loan.


An Adjustable-rate mortgage is a great loan, especially when you have few other options. Be smart when deciding to use an ARM and it can be a great tool for any investor. The biggest mistake you can make is not being prepared for a payment increase if you are not able to pay off the loan or refinance. If you are prepared to hold the loan, you should be just fine.


Is It Smart to Buy Rentals When You Are Young?

Last Updated on August 8, 2020 by Mark Ferguson

invest when youngThere are many challenges to buying rental properties when you are young, but there are also many advantages. The biggest challenge to buying rental properties is getting enough money to pay for down payments, repairs, and reserves. However, there are many ways to buy rental properties with little money down, and it is easier to buy with less money down when you are young. When you are young, you can be more flexible, don’t have as many responsibilities, and have more time. When we get older, we have many more responsibilities, less time, and are not willing to make as many sacrifices in our living situation.

How much money do you need to buy a rental property?

The biggest challenge to buying a rental property is saving enough money for the down payment and other costs. As an investor, you will have to put down 20 percent or more when dealing with traditional banks. I usually spend at least $30,000 on the rentals I buy priced around $100,000. I need 20% for the down payment, money to repair the home, and I have to pay for carrying costs. I like to buy homes that need repairs because I am getting a great deal and will make more money in the long run. You do not have to spend $30,000 on a rental property if you can be flexible in your living situation.

A big problem that many people have, including myself, is that it is tough to find rentals that are $100,000!  I used to have my pick in Northern Colorado after the housing crash, but now those houses are $300,000! If you have to spend $300,000 to buy a rental property, you don’t need $30,000—you need $90,000.

You have the option to buy in another market or change niches, which is what I did by purchasing commercial rental properties instead. Or you can look for ways to buy with less money down.

How to buy with less money

The easiest way to buy a rental property with little money down is to buy as an owner occupant. An owner occupant usually has to live in a home for one year to satisfy the owner-occupancy requirements. The tough part about buying as an owner occupant is many people don’t want to live in the houses they use as rental properties.

When you buy as an owner occupant, you can put 3.5% down with an FHA loan or even $0 down with VA or USDA. There are even down payment assistance programs that will decrease the down payment, and you can ask the seller to pay for the closing costs, which can eliminate them. Buying as an owner occupant can reduce the money needed from $30,000 to $5,000 or even less. It is entirely possible to buy a house with $1,000 in the right market with the right loan.

There are also ways to buy multifamily properties with little money down as an owner occupant. This is commonly called house hacking and someone lives in a property and collect rent while living there as well.

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Why is it easier for young investors?

One of the tough things about investing with little money down is it takes a lot of sacrifices from the investor and their family. If you are older with a family, it can be really hard to move over and over. It can also be really hard to move into a property that makes sense as a rental. It is also tough for families to live in a home that needs work.

When you are young, you can buy a rental property as an owner occupant and live there for a year and move out of the property. The next move for many investors is to buy another rental property and repeat the process. This strategy takes a lot of moving and flexibility, and most families do not want to move every year. When you are young with nothing to tie you down (and less stuff), it is much easier to move every year. The great part about buying as an owner occupant is you can keep buying houses with little money down.

You also do not have to spend money on repairs right away because you can slowly repair the house while you live in it. There will be requirements pertaining to the condition the home must be in to get owner-occupied loans, but it is still very possible to get a great deal as an owner occupant buyer.

Young investors have more time

It takes time to learn how to buy rentals properties; what strategy you want to use, where you want to invest, and to learn about your market. As we get older we have less and less time. You get married, have kids, have a job and it is tough to find time for your kids, let alone your own hobbies or learning how to invest. Younger people often have more time to learn and educate themselves. Even if you are young and have no possible way to buy a property, you can still learn how to invest in rentals and develop a strategy that fits your goals so that when you can buy, you are ready.

I like to be a very positive person, but that does not mean I do not plan for the worst-case scenario. Another advantage of being young is you have more time to recover if you make a mistake or run into bad luck. If you buy a rental property when you are 25 and end up losing money on the rental, or even worse, losing that rental property, you have a lot of time to recover and build. If you are 60 and lose a rental property or make a bad investment, it is much harder to recover.  I am not saying you should not invest when you are 60. I think any age is a great time to buy rental proprieties, but the sooner you buy the better.

I wrote a book for young investors called: Buying Into Success. It is all about a college grad on the rat race who discovers real estate. You can find it on Amazon as a paperback and Ebook.

Young investors only have to convince themselves to invest in rentals

There are many people with negative beliefs about rental properties and real estate. Those beliefs are not always founded on facts, but rather, hearsay. Convincing someone to change their beliefs is not easy no matter how favorable you think your argument is. When you are young without a spouse or children, you only have to convince yourself that investing is a great idea and will help you financially. When you get married and have children, you will have to convince your wife, children, and possibly your in-laws that investing is a good idea. If just one of those people has a belief that real estate investing is dangerous and could hurt the family, you may never be able to change that belief.

If you invest in rentals or real estate at a young age and make money with investments, you won’t have to worry as much about convincing someone it is a good idea. You will have proof that you made money, and your loved ones will get to know you as someone who is a real estate investor.

Why do the returns on rental properties increase as time goes by?

The longer you own rental properties, the better investment they become. Here are a few basic advantages of buying rental properties when you are young and holding them long-term.

  • Cash flow: Cash flow increases with time as rents rise and mortgage payments stay the same or mortgages are paid off. Rents will not always increase, and it may take years, but historically, rents have always increased.
  • Appreciation: I do not count on appreciation to make money, but houses also appreciate over time. The longer you own a home, the more it appreciates. If you get a loan on a house, the the gain in appreciation is multiplied. As an owner-occupant, you might only put $5,000 down on a house, but it could appreciate $20,000 in one year. A house may also decrease in value over the short-term, but if you own it long enough, it will increase in value.
  • Tax advantages: You are allowed to depreciate rental properties for over 27.5 years, which saves a lot of money on your taxes. You can also complete a 1031 exchange into another investment, which could allow you to sell for a huge profit without paying taxes.
  • Build passive income: Over time, one rental property may not make you a ton of money, but if you buy multiple rental properties, you can make a lot of money.

How much money do you need to buy a rental property as an owner occupant?

The amount of money needed to buy a rental property will vary on the property and the loan program. I discuss various loan programs here, but most owner occupants should be able to get a loan with 5 percent down using conventional, 3.5 percent down using FHA, and no money down using VA or USDA. There will be closing costs associated with the loan, which can run from 2 to 5 percent, but you can ask the seller to pay those for you. If you buy a home that needs repairs, you will have to spend money making those repairs, but you don’t have to do it right away. You could repair the house as you live in it, saving time and money over hiring a contractor.

I usually do not recommend doing the repairs on investment properties yourself if you do not live in the property. If you try to make the repairs on an investment property yourself, it often takes much more time and costs you more money in the end over hiring a good contractor. If you are living in the home, it is easier to make the repairs because you are always there, and taking more time to make the repairs will not cost you money since you can’t rent out a single-family house for a year anyway.

If you use a no-money-down loan and make repairs while you live in the home, you could buy a rental property with no money and then spend less than $5,000 in total on repairs depending on what you fix. If you have to use a higher down payment loan, your costs will increase, but it will be much less than buying as an investor. Remember, with less money down it will be harder to get positive cash flow on a home because of the higher mortgage payments.

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How can young investors qualify for a loan?

The biggest challenge for young investors is qualifying for a loan. The good news is that it is easier to qualify as an owner occupant than an investor. With current lending guidelines, you will need a steady job, good debt-to-income ratio, and good credit to qualify on your own. Many young investors cannot qualify for a loan on their own because they have bad credit, too much debt, or they do not make enough money.  There are options for those who cannot qualify!

  • Kiddie Condo loan: A kiddie condo loan allows relatives to co-sign on a property. The co-signors credit and income will help to qualify for the loan.
  • Regular co-signor: Depending on the loan program, any co-signor may be able to help with poor credit or income.
  • Seller Financing: Seller financing is when the seller of the home loans money to the new buyer. It is rare to find seller financing in my area, but it can be a great deal for both parties in certain situations.
  • Partners: Many investors are looking for a place to earn higher returns than a CD but want more security than the stock market. Real estate provides collateral, and some investors may be willing to loan money on real estate because it is safer than the market.

If you cannot find any options to qualify for a loan, you can still learn about investing and start working on qualifying. It is better to know as soon as possible what you have to do to qualify for a loan than to wait until you are ready to buy and find out you have to wait 18 months to get a loan.

Buying a multifamily home as a young investor

I like to buy single-family homes for a number of reasons, but mostly because they give me better returns in my area. It may make more sense to buy a multifamily property depending on your market and situation. Investors can buy a multifamily property as an owner occupant if it is 4 units or less and they occupy one of the units. You would have to live in one unit for a year, but you can rent out the other units as soon as you buy the property. In many cases, the rent from the other units will cover the mortgage payments and let you live in the property for free. Once the year is up, you can continue to live for free or move into another property and repeat the process.

Why is it harder for people to invest in rental properties when they are older?

Many people have a plan to invest in rental properties once they have become settled in life.

“When I have a great paying job, a family, and a nice house, I can use my extra money to invest in rentals.”

The problem is that the older we get the more responsibilities we have and the more money we spend. The nice house, nice cars, and family all cost a lot of money! We also have much less time than we used to because of a great job, a nice house, and the family. It is not a given that you will have a lot of extra money when you get older. However, rental properties are a great way to give yourself extra money when you are older without having to depend on a job to produce income. I love the cash flow my rentals produce, even though I make much more income from flipping.


Most people wait to invest in rental properties or to do any investing at all until later in life. Young people tend not to think about their future or feel it can wait to start building passive income. I think it is actually harder to invest later in life because we all have so many responsibilities, less time, and more to lose. The sooner you start investing, the better off you will be later in life, and we get older sooner than we think.


Does Rich Dad Poor Dad Teach Real Estate?

Robert Kiyosaki’s book Rich Dad Poor Dad was a huge motivator for me to invest in real estate. However, it did not teach me how to actually invest: just that I needed to. I hear all the time how great the book is, and I agree that it was a great book, but I don’t think it did a good job of actually teaching how to invest. There is also the issue that Rich Dad Real Estate training can cost up to $40,000 and they do not use the most ethical marketing techniques. If you want to be motivated, I think that Rich Dad Poor Dad is a great book, but if you want to learn, there are better options out there.

Summary of Rich Dad Poor Dad

Rich Dad Poor Dad is written by Robert Kiyosaki and is about two families. One family has a dad who has a job and works very hard. However, the dad never gets ahead in life because he is always working to earn a living. The book compares this”poor dad” to another dad who is an investor. The “rich dad” who is an investor always has free time and plenty of money. The idea behind the book is that being an investor is good and working a regular job is bad. At least, working a regular job and not investing is bad.

You can get a copy of Rich Dad Poor Dad here.

There is more to the book than the point that investing is good, and the book is well written. It is also extremely motivating and has motivated many people to become investors instead of workers.

Does it teach us about real estate?

While the book makes point after point that investing in real estate is good, it does not tell us how to invest in real estate. I read the book when I was in my mid-twenties. It got me pumped up and ready to change my life. However, I kept searching for how to actually get started investing in real estate from the book and then the other books that Kiyosaki wrote. I never did find any details or instructions on exactly how to invest in real estate or any broad information about real estate either. It was all motivation.

What about real estate coaching?

Something else that was very disappointing for me was that Rich Dad Poor Dad offered real estate coaching in the form of seminars. Or at least, the seminars were created to sell the coaching. It almost seemed as if the book was one giant marketing tool for coaching. I have no idea if this is how the book was planned, but that is how it seemed to me.

I do not have a problem with all real estate investing coaching (I offer some myself), but I have a problem with certain programs like Rich Dad Poor Dad, Fortune Builders, and a few others that try to trick people into buying their coaching programs. They have a free seminar that teaches you nothing about real estate but is very motivational. That seminar is meant to get you to buy a three-day seminar, which again teaches almost nothing about real estate but is motivational. That three-day seminar was created to get people to sign up for a $30,000 to $50,000 coaching program. Often, these coaching programs use time-share sales tactics like keeping the rooms cold, keeping people hungry, and encouraging people to borrow money or use credit cards to pay for the coaching.

I have talked to many people who have taken the coaching, and very few were happy with it. Most of the people I have talked to say that their “coaches” barely had any experience investing in real estate themselves. I think someone would be better off using the money to buy a house and learn how to invest in real estate that way than spend $50,000 on a course.

Was there really a Rich Dad and a Poor Dad?

There has been some controversy surrounding the book because many people have accused Robert Kiosyaki of making up the story. What is wrong with making up a story for a book? Nothing, unless you say it is real and list it as a non-fiction book to get more sales. There is less competition in the non-fiction world and much easier for business books to sell copies as a non-fiction book instead of a fiction book.

I don’t know for sure if there was a Rich Dad or a Poor Dad but the book does say:

“Although based on a true story, certain events in this book have been fictionalized for educational content and impact,”

Kiyosaki admits that not everything that happened in the book is real. Does that make it a bad book? No, but it should caution you about pursuing any further education with Rich Dad Poor Dad.

One of the best pieces of advice from the book

One of the best ideas in the book is that the rich have money work for them, they don’t work for money. This is how I feel as well although I do both. I make money as an agent and by flipping houses. I have money work for me when I buy rental properties and the tenants pay me rent. I have a property manager who takes care of the properties and I have to do very little work if any. This is the idea of passive income.

This is the main point of the book that motivates many people and a great idea to take with you. My idea for retirement or being “rich” is not accumulating a bunch of cash that you can live on or making a lot of money, but having assets that make you money while you work or not.

One of the worst pieces of advice from the book

One idea in the book that many marketers have adopted is that a house is not an asset. The book says that you should not count on the house you live in being an asset because it costs you money.

This is some of the worst advice I have ever heard. The book goes to a lot of effort to show why a house is not an asset and changes the definition of an asset that banks and accountants have used for centuries. It also claims that you don’t own your own unless it is paid off, that the bank owns it.

A house is an asset, anything with a value that can be sold is an asset. Is it a good investment? Sometimes, but not always but an asset does not have to be a good investment to be an asset. The loan against the asset is the liability.

Even if the book’s definition of an asset was correct and an asset would have to make money or bring in cash flow to be an asset, the idea is flawed.

  • A house does bring in cash flow because you are not paying rent. You would have a much higher expense for living when you don’t own a house since rent is usually more than the expenses on a house. That is how landlords like me make money. The only way his ideas work is if you live in your parent’s basement for free.
  • Even Robert admits a house can be an asset if it makes money when you sell it. What? It is an asset sometimes and a liability other times? This makes no sense. How is he qualified to make up the definition of an asset? He won’t even tell us what, if any, real estate he owns.
  • When you rent, the rent will keep increasing with inflation. The mortgage will stay relatively the same with a fixed-rate loan. This is a massive advantage over time. The value of the home goes up over time with inflation as well.
  • Buying a house to live in can be one of the best ways to build wealth when you have little money. You can buy with very little money down, there are amazing tax advantages, and you can create instant equity by getting a good deal.

The video below goes into the details on buying verse renting homes.

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Are there better books?

I own 23 rentals now and have flipped over 195 houses in my career. I learned how to invest in real estate through a mix of books, online resources, my father, and experience. While Rich Dad Poor Dad was motivational, other books had much more information in them about actually investing. Gary Keller’s Millionaire Real Estate Investor was a great book that taught me a ton about investing in rental properties.

After I found success in real estate, I also wrote a book about investing in rentals. I wanted to make my book the complete opposite of Rich Dad Poor Dad. I packed it full of as many details as I could about how to invest in real estate. I also did not hold back any secrets. The book is Build a Rental Property Empire and is in paperback, audiobook, and Kindle versions. There are more than 370 reviews currently on Amazon for the book!

While there are many ways to learn about real estate investing, I think spending $50,000 on a coaching program is not the best use of your money.


Rich Dad Poor Dad is a very motivational book but not a very good guide. It lacks the details to actually do what the book is motivating someone to do. I find that extremely discouraging seeing how the author supposedly got rich using the techniques in the book. I use my coaching to help people who want to go faster in this business or get personal advice, not to hinder learning because all the secrets are reserved for the big spenders. If you have not read the book, I would encourage you to do so, but don’t get your hopes up that you will actually learn how to actually become a rich dad.