The Simplified Version of Investing
No PHDs or 200 IQs necessary
Welcome to this week’s issue The Un-Normal Investor. Each week, I publish one 5-minute read that’s written to make you a smarter real estate investor.
If you don’t know where to start, or you’ve hit a roadblock along your journey, consider joining our private community.
You’ll have instant access to our chat where we answer each other’s questions and share referrals, live Q&As with special guests, and invite-only in-person events and dinners.
In less than 5 years I’ve scaled my portfolio to 25 doors.
But if I was starting from scratch again, I’d do things differently.
Rather than racking my brain with a bunch of different elaborate work-flows and operational frameworks, I’d dumb it down to these three simple steps:
Step 1
I’d start with just 1 property.
You don’t need a ton of rentals in order to pocket a solid profit at the end of the month.
In fact, more properties—without the proper systems in place—often equate to lower returns and higher management costs.
So rather than fixating on quantity, I’d focus on quality - specifically location and value-add potential.
Step 2
I’d turn that property into a place that people never want to leave.
Vacancy can deal a death blow to your bottom line.
It’s like a carbon monoxide leak to your financial statement.
An invisible expense that will slowly kill every bit of your projected profit.
To keep my property from sitting empty, I’d start backwards.
Instead of trying to figure out how to get people to move in, I’d prioritize creating a space that tenants would never want to leave.
Step 3
Lastly, I’d direct all of my efforts toward optimization.
I’d position the property to operate at its highest and best use.
This sounds obvious, but most investors aren’t maximizing their assets.
As a result, they’re leaving a ton of money on the table each month.
If street parking is scarce, I’d implement paid dedicated parking on the premises.
If the apartments are small with limited closet space, I’d rent out storage units where tenants can place their personal belongings.
If the units aren’t sub-metered, I’d enforce RUBS (Ratio Utility Billing System) to recapture a portion of the operating expenses.
These are just a handful of the low hanging fruit that can easily add hundreds - if not thousands - to your bottom line.
Real estate is simple.
It’s us investors that overcomplicate it.
If I were starting over, I wouldn’t chase door count or massive scale.
I’d focus on the fundamentals.
With a strong foundation, you have everything you need to build a highly profitable portfolio.
So instead of trying to go from Step 1 to 100 all at once, start small. But always think long-term. And squeeze every ounce of value from what you already own—before racing off to buy more.
What’s your take on today’s topic? Do you agree, disagree, or is there something I missed?
If you enjoyed this read, please share it so others can gain value as well.
For access to the Un-Normal Investor private community, live Q&A sessions with special guests, and our exclusive in-person meetups, dinners, and events, click the link below.