Amazing Tips on Turning Real Estate Into a Real Fortune

Finding success in real estate requires more than simply buying low and selling high.

say that it’s the greatest way to create real wealth and financial freedom.

These six tycoons and members of The Oracles suggest how you can invest $100,000 or start with nothing.

1. Start small.

Although I’m a businessman first, I've always been a part-time real-estate investor. You can do both, too. Have a business or career that creates positive cash flow, which you can diversify into part-time real estate investing. I've done it for many years.

If you’ve never invested in real estate, start small and don’t use all your money. No one's ever looked back and said, "My first deal was my best." You’ve got to learn how to read the contracts, build your network of specialists—for example, lawyers and realtors—and develop a good eye for it. This only comes from experience.

The beauty of real estate is that you can learn the ropes while starting small: find some cheap properties, like single-family homes, renovate-and-flips, multi units, or commercial properties. Try to commit as little as possible while you get some notches under your belt. Joel Salatin, my mentor, always said, "Make your mistakes as small as possible without catastrophic consequences."

If you have zero cash, maybe do wholesale deals. A business partner, Cole Hatter, and I created a real-estate program teaching you how to put a property under contract for very little money down, sometimes less than $1,000; you sell that contract to another buyer before the contract expires. Worst case: you just lose under a grand. Best case: you make $5,000-15,000 positive cash flow that can be reinvested in long-term holdings.

2. Think big.

It’s easy to give up on the real-estate game because you don't have any money, but it’s the deal that matters, not how much money you have. Chase the deal, not your budget.

I know a guy who saved $50,000 and started chasing $200,000 deals. First of all, you can't buy more than four units with that budget. The problem with four units is that each can only produce maybe $1,000 or $2,000 per month. And that’s only after you’ve done thousands of dollars in work around the units to make them rentable in the first place. That math isn’t difficult—there’s just not enough money to make it worthwhile.

That’s why you’ve got to go big from the start—with 16 units, minimum. Don’t buy less. Without 16 units, you can’t have a manager, and if you can't have a manager, you're going to either dedicate all your attention to the property or to your full-time job. To get 16 units, you will need to wait and save more money or use other people’s money (but you’ll need to learn how to sell).

3. Understand the economics, then find a mentor.

The real-estate deals that look the prettiest and are easiest to find—such as buying a property that has a tenant and management in place, joining a crowdfunding website, or buying into a publicly-traded real estate investment trust—yield the lowest returns. The most profitable opportunities are the ones no one else knows about, which you find and create.

Due to a strong economy, high consumer confidence, historically low inventory levels, and extremely low interest rates, it’s the best time to flip houses in the past 40 years.

High consumer confidence and a strong economy give retail buyers the feeling that “now is a good time to buy” rather than retreat in fear and continue renting. Low interest rates allow retail buyers to purchase more of a home than if the rates were at historical average levels, like 6 percent. Low inventory levels create bidding wars by retail buyers, which increase the prices that investors sell their flipped houses for.

So, if you can find the deals before the competition, you can transform a little bit of money into a whole lot in a relatively short period by flipping houses.

If you’re seeking tax-advantaged passive income, thanks to the rise of the sharing economy and services like Airbnb and HomeAway, short-term renting of residential properties is producing the highest returns. (It’s not uncommon to obtain more than a 20 percent return on very nice properties in beautiful areas.) The majority of my real-estate holdings are now in short-term rentals.

4. Learn, then earn.

Before throwing money away on the HGTV pipe dream, educate yourself! Don’t spend thousands of dollars on coaches and seminars. No matter how shiny they make it or how much you’re told you need an expensive education, you don’t. Information is inexpensive and plentiful. Find it or someone specializing in investment real estate, like me.

Holding assets is the way to build wealth through real estate. Shelter is a basic need. Dirt, in and around major metro areas, is a finite resource, and demand is constantly increasing. By owning a rental on that dirt, you have a small business that works to pay off your mortgage. Flipping is over glamorized, in my opinion. Rent and hold for the win.

For More Information: The Oracles

Patrick Kavanagh Advices – How To Avoid Investment Scams In Chicago?

Investments are the backbone of your financial planning. Your investments secure your future, enabling you to retire with dignity, building wealth for your loved ones. Sometimes these vital funds get in the hands of scammers who cheats you further. Of course, you don`t make them, intentionally!
 In order to avoid such investment scams, you can take precaution. Hopefully, you are pretty much clear - how to prevent yourself from becoming a victim of investment fraud?

Patrick Kavanagh KRI Property Group
Further, comes the type of investment fraud that can fool you. Down below Patrick Kavanagh from KRI property group has discussed 4 most common types of investment fraud schemes accessible in Chicago and what protections and recourse do you have to get out!

Type 1 - High-Return or “Risk-Free” Investments

In this scenario, some fraud brokers and dishonest investment advisors endorse wrong assets to investors that don't meet their investment objectives or financial situations. Their art of presenting low-risk investment opportunities convince investors to invest and yield optimal higher revenue.

Inappropriate recommendations are likely to take place when a broker sells speculative, high-risk investments such as options, futures, or penny stocks to people - who are near retirement or are retired and have a low-risk tolerance.

Type 2 - Pyramid Schemes

In this scheme, fraudsters enroll investors through a promise of payments, rather than supplying returns or sale of products or services. As investors multiply, cash flow shrinks, and most of the investors are unable to profit - as such, pyramid schemes are unsustainable and often illegal. By claiming to have legitimate assets to sell, these deceivers take off your money and use it to pay off new investors - who are in their early stage of investment.

Type 3 - Ponzi Schemes

These are a type of illegal pyramid scheme that already fooled the residents of England. Charles Ponzi, the mastermind behind this game, who fooled thousands of real estate investors from England - investing in a postage stamp speculation scheme. Then, the Ponzi scheme continues to work on the same “rob-Peter-to-pay-Paul” principle. Money from new investors is used to pay off earlier investors until the entire pyramid of fraud collapses.

Type 4 - Promissory Notes

A promissory note is a way of scamming investors via a loan. Fraudsters/company helps investors to release credit from a bank and use it. Hopefully, an investor agrees to loan money to the company for a set period of time. In exchange, the company promises to pay the investor a fixed return on the investment, typically principal plus annual interest. 

Most established companies have been borrowing relationships with financial institutions, therefore this type of transaction among individuals is rare. Individual investors should exercise extreme caution with this type of investment frauds.

Patrick Kavanagh Chicago | Toronto Talks Show Open

This is a near final concept for a talk show in Toronto. I fixed up alot
of the animation, mastered the sound, and added a house building for the Real Estate section!!

Patrick Kavanagh Scam | Real estate mogul shares the most common mistake house flippers make

After experimenting with a career in the music industry, Sidney Torres changed course and started working for a construction company. It was then that, with help from his grandmother, he bought his first property in an up-and-coming neighborhood in his hometown of New Orleans.

He profited from his first flip, used the proceeds to buy a property next door and never looked back. Today, the self-made millionaire has developed more than $250 million in commercial and residential real estate.

"What I've learned in the real estate game is that you always have to have an exit strategy," Torres says in a new mini-series, "60 Seconds with Sidney." "From the beginning of going into a deal it's important that you know, once I close on this property — if I do a little bit of repairs — can I get out of it and how much will I make?"

Patrick Kavanagh KRI Property Group

Yet very few people investing in real estate think about the end from the beginning, says Torres, who now helps struggling property investors on CNBC's "The Deed": "So many people get caught up on the buy and not looking at, 'What's the exit strategy?'"

"For me, when I go into a deal, I want to know that there are two or three different exit doors. Every deal that I go into — doesn't matter if it's a hotel or if it's a rental property or if it's a commercial space — I always want to know, 'What's my exit strategy?'" It could be, among other things, buying and holding for the long term, wholesaling the property or flipping the property.

For More Information: Kathleen Elkins

Top 10 Expert Tips for Buying a Luxury Home

Share Patrick Kavanagh Chicago.ppt - 14 MB

From a fresh out of the plastic new Trump townhouse and a notable Newport domain to a green group in the South, there's a plenty of decisions in top of the line homes. Consider these tips from extravagance home market geniuses before purchasing your fantasy home.

Patrick Kavanagh Chicago | Activist wants a real estate play at HBC

Hudson’s Bay Co. should close and redevelop the stores it owns if it can’t operate profitably as a retailer, according to a U.S. activist investor who revealed his interest on Monday.

“Hudson’s Bay is a real estate company, full stop,” reads the public letter to HBC’s board of directors from Jonathan Litt, founder and chief investment officer of Land & Buildings Investment Management, LLC, based in Stamford, Conn.
The firm has acquired approximately 4.3 per cent of Hudson’s Bay shares.
“If there is a smarter and better use of any or all of the locations, stores should be closed and redeveloped and put towards their optimal use,” reads the letter from Litt.

It points to the Saks Fifth Avenue location across from the Rockefeller Center in New York City as an example of HBC’s prime real estate, describing the spot as “likely one of the most valuable locations not only in Manhattan, but in the United States,” and asks whether the best use of the property is as a store.

“What about a hotel? Or office? Or boutique retail stores the likes of Apple and Gucci? Or an internet retailer looking to go upscale through a bricks and mortar presence as Amazon appears to be doing with its purchase of Whole Foods,” the letter goes on to ask.

Hudson’s Bay should evaluate all strategic options, including selling or repurposing real estate or taking the company private, according to Litt.

HBC acknowledged receipt of the letter, but declined to comment. “The Company is reviewing the letter and will respond in due course,” it said in a statement.

For More Information: Francine Kopun