Business
Juan Vargas is a full-time entrepreneur, real estate investor with a focus on multifamily and host of the podcast Commit to Wealth. After a long stint in the corporate world working 60-70 hours a week at BMW, Juan decided he wanted more and began looking for ways to create passive cash flow. Within a few months, he purchased his first rental property. Two years later he had built a portfolio of 34 units. Juan has now invested in 618 units as a limited partner, individual owner, and as a general partner. TIPS: (4:30) Investing in single-family homes requires being able to handle up front expenses on an ongoing basis (5:53) Single-family home investments don’t necessarily translate directly to investing in multifamily properties (7:43) Consider what the owner of the property you are looking to invest in or purchase needs and focus on that (8:17) You can go through brokers but if you have the time and energy you can do some direct mail or direct contact with smaller properties (8:36) You can start with larger investments by seeking out a good partner who has a good track record in multifamily investing (11:25) Loan amounts above one million open up more financing options than do smaller loan amounts (13:30) Big or small loan you need to have all information, business plan etc. ready to go because the lender is ultimately your biggest partner (15:10) Do your homework on the market (16:54) Smaller properties require more time investment for less return, so bigger investments offer longer-term advantages (19:36) Why you should be conservative and plan for the worse (26:30) Join a mentoring group (29:00) Areas to do your homework on to avoid bad deals include checking the property fundamentals and the state of the market Check out Juan’s website at committowealth.com and be sure to download his podcast called Commit to Wealth. Or email him at juan@committowealth.com.