Connect with us

Publications

A step-by-step guide on how to get started as a landlord, from 2 brothers who began in their 20s and built a 75-unit portfolio in one year

Avatar

Published

on

Sam and Daniel Kwak, known as the Kwak Brothers, scored their first rental deal in 2017 — a portfolio of four single-family properties in Illinois. By the end of that year, they had accumulated 75 rental doors.

At the time of their first deal, the brothers didn’t have the money to make traditional purchases, so they looked to owner financing — an arrangement that allows the buyer to acquire the property via monthly payments to the seller.

“One of the biggest myths that people have is that they need money to invest,” Daniel told Business Insider. “We immigrated to this country in 1999, and our family had very close to nothing.”

When they first got started in real estate, Sam was 21 and Daniel was 19. In fact, Daniel told Business Insider that he had a negative balance in his bank account, but the drive to succeed and learn about the industry kept him going. 

“We had absolutely no money to do deals, but you know, I noticed that I was very good at networking,” Daniel said. “I would literally go around asking people, ‘Hey, what’s the No. 1 challenge I can help solve for you?'”

Soon after, he began connecting two types of people: those who had great deals but no capital and those who had capital but didn’t have the time, knowledge, or team to get deals done. 

“That’s how we started learning, by doing,” Daniel added. Eventually those connections led to their first deal. Then they started going after multifamily buildings by raising capital from people looking for tax benefits and solid returns on their money. By the end of 2017, most of the 75 rental doors they had accumulated were apartment units.

Since then, Sam and Daniel Kwak have used their platform to educate and empower people in the real-estate industry. Sam is the host of the “Landlording Automated” podcast, and Daniel is the host of the “First Deal Experience” podcast. They also offer educational courses on how to be an effective rental-property investor and are launching a book on June 11 detailing their journey.

In an interview with Business Insider, the brothers walked through their story and laid out an eight-step guide on how to become a successful beginner landlord.

If you want to be a good landlord, Daniel said, you have to understand that it is a business, not a hobby. That means implementing a system, following steps, and being proactive instead of reactive.

“That mindset will give a far better chance of becoming a good, ethical, moral, yet profitable landlord,” he added. 

Figure out what your financial goals are

How do you find a good deal? That’s the thing everyone wants to know, the brothers said. But it’s not an easy question to answer.

“A good deal for me may not be a good deal for you,” Sam said.  

The first step is to figure out why you want to get into real estate and, more specifically, landlording.

Find a local landlord who can mentor you

Finding a local landlord who has been in the industry for a long time is crucial because they can help you gain knowledge and awareness of the market. 

Take them out to lunch and ask them about their story, Sam suggested. “The idea is to get the right expectations. I think one of the biggest mistakes that people make when first starting out on this real-estate-investing journey is they don’t have the right expectations,” he said.

Source out a good deal

The brothers suggested looking for off-market opportunities. 

“There is so much competition and cheap capital happening in the general popular market space that it’s overinflated,” Daniel said. 

To find good off-market deals, Daniel added, you need to be both active and passive.

Daniel said that early on in his career, he would go around and call all the buildings that had “for-rent” signs outside and ask the owners if they would be interested in selling. Another trick, Sam added, is targeting signs that are handwritten because it indicates that the building is owned by a person, not a property-management company.  

In addition to going out into the field and finding deals themselves, the brothers said the relationships they’ve built and maintained with local property managers have landed them many deals.

“Whenever somebody wanted to sell, they would notify us,” Daniel said. 

Put together a team

Before heading into any deal, you need a team. According to the brothers, it should include a reliable maintenance or repair worker, an attorney who practices real-estate law in the area you are buying in, a mentor who can walk you through the process, an insurance agent, and a certified public accountant with expertise in real estate.

“A lot of people don’t talk about the tax benefits that real estate can bring. And people don’t realize that if they were to switch their CPA to someone who knew real estate a lot more, they could save potentially tens of thousands of dollars in the long haul,” Daniel said.

Look for red flags when touring a property

When touring a property, the big-ticket items the Kwaks look out for include the lifespan of the furnace, the roof, and the water heater. 

“If you’re looking at a single-family house or a duplex, and you have to replace the furnace, that may be an entire year’s worth of cash flow,” Daniel said. 

When touring a property you are interested in buying, it is important to bring your property manager and/or a contractor who will be working on the building. These people will be able to point out issues with the building you might not notice on your own.

When negotiating the deal, identify the problems and provide the solutions

Once you’ve found a property you’re interested in, it is important to go into the negotiation process with an open mind.

“I share this formula with a lot of my students and a lot of my clients,” Sam said. “Find the people, identify the problem, provide the solution, bring the value, and then you monetize the value.”

Keep asking why until you have all the information you need about the seller’s financial circumstances, he added. Once the problems are identified, and solutions are provided, the rest is usual smooth sailing.

For example, if you’re negotiating a deal using seller financing, and the seller needs a lot of money down to pay off commissions, expenses, and the like, ask for a lower interest rate. Sam said he has found that if you are able to address a seller’s main problem, they are typically more open to finding ways to compromise.

“Go collaborative, not competitive,” he said.

Get a copy of the existing lease or leases

In addition to looking at the existing lease, it is important to find out if there are any existing promises that the previous landlord has made to the tenant or tenants.

It is also important to track down where the security deposit is. This can cause a problem down the line when it is time to for a tenant to give the deposit back, and you have to get in touch with the old owner.

Visit the property once a week

The first property will teach you the most, Daniel said. That’s why it’s important to make sure you live near the property so you can visit it at least once a week.

In addition, the brothers suggest not rushing into the next deal. In fact, they suggest you wait about three months before you buy a second property so that you have time to take in the experience of being a first-time landlord.

Source: https://www.businessinsider.com/a-step-by-step-guide-on-how-to-be-a-successful-landlord-2020-6

Publications

Security and Sustainability Forum-With Hazel Henderson and Claudine Schneider. 10/22/2020

Avatar

Published

on


Steering Societies Beyond GDP to the SDGs

With Hazel Henderson and Claudine Schneider

October 22, 2020

1:15 pm to 2:15 pm EDT

The next webinar in the SSF series, with ecological economist and futurist Hazel Henderson, will address how the UN SDGs can and should replace GDP as the basis for valuing society leading to an economy based on planet protection and human wellbeing. Claudine Schneider is Hazel’s guest.

GDP accounts for all the public expenditures as “debt” while ignoring the value of the assets they created. If GDP were to be corrected by including the missing asset account, these debt-to-GDP ratios would be cut by up to 50% — with a few keystrokes! Learn why money isn’t what you think it is and why that matters to life on Earth in the next two webinars with Hazel and guests.

Register

Claudine Schneider is a former Republican U.S. representative from Rhode Island. She was the first, and to date only, woman elected to Congress from Rhode Island. She is founder of Republicans for Integrity, which describes itself as a network of “Republican former Members of Congress who feel compelled to remind Republican voters about the fundamentals of our party and to provide the facts about incumbents’ voting records.”

October 22nd webinar with Claudine Schneider and Hazel

Sincerely,

Ed.

Edward Saltzberg, PhD

Executive Director

Security and Sustainability Forum

www.ssfonline.org

[email protected]

Sincerely,

Ed.

Edward Saltzberg, PhD

Executive Director

Security and Sustainability Forum

www.ssfonline.org

Source: https://www.ethicalmarkets.com/63564-2/

Continue Reading

Crunchbase

The Briefing: RVShare raises over $100M, Google disputes charges, and more

Avatar

Published

on

Here’s what you need to know today in startup and venture news, updated by the Crunchbase News staff throughout the day to keep you in the know.

Subscribe to the Crunchbase Daily

RVShare raises over $100M for RV rentals

RVShare, an online marketplace for RV rentals, reportedly raised over $100 million in a financing led by private equity firms KKR and Tritium Partners.

Akron, Ohio-based RVShare has seen sharp growth in demand amid the pandemic, as more would-be travelers seek socially distanced options for hitting the road. Founded in 2013, the company matches RV owners with prospective renters, filtering by location, price and vehicle types.

Previously, RVShare had raised $50 million in known funding, per Crunchbase data, from Tritium Partners. The company is one of several players in the RV rental space, and competes alongside Outdoorsy, a peer-to-peer RV marketplace that has raised $75 million in venture funding.

Funding news

  • BrightFarms closes on $100M: Indoor farming company BrightFarms said it secured more than $100 million in debt and new equity capital to support expansion plans. The Series E round of funding was led by Cox Enterprises, which now owns a majority stake in the company, and includes a follow-on investment from growth equity firm Catalyst Investors.
  • Anyscale inks $40MAnyscale, the Berkeley-based company behind the Ray open source project for building applications, announced $40 million in an oversubscribed Series B funding round. Existing investor NEA led the round and was joined by Andreessen Horowitz, Intel Capital and Foundation Capital. The new funding brings Anyscale’s total funding to more than $60 million.
  • Klar deposits $15M: Mexican fintech Klar closed on $15 million in Series A funding, led by Prosus Ventures, with participation from new investor International Finance Corporation and existing investors Quona Capital, Mouro Capital and Acrew. The round brings total funding raised to approximately $72 million since the company was founded in 2019. The funds are intended to grow Klar’s engineering capabilities in both its Berlin and Mexico hubs.
  • O(1) Labs rakes in $10.9M: O(1) Labs, the team behind the cryptocurrency Mina, announced $10.9 million in a strategic investment round. Co-leading the round are Bixin Ventures and Three Arrows Capital with participation from SNZ, HashKey Capital, Signum Capital, NGC Ventures, Fenbushi Capital and IOSG Ventures.
  • Blustream bags $3M: After-sale customer engagement company Blustream said it raised $3 million in seed funding for product usage data and digital transformation efforts for physical goods companies via the Blustream Product Experience Platform. York IE led the round of funding for the Worcester, Massachusetts-based company with additional support from existing investors.Pillar secures another $1.5M: Pillar, a startup that helps families protect and care for their loved ones, raised $1.5 million in a seed extension to close at $7 million, The round was led by Kleiner Perkins.

Other news

  • Google rejects DOJ antitrust arguments: In the wake of a widely anticipated U.S. Justice Department antitrust suit against Google, the search giant disputed the charges in a statement, maintaining that: “People use Google because they choose to, not because they’re forced to, or because they can’t find alternatives.”
  • Facebook said to test Nextdoor rival: Facebook is reportedly testing a service similar to popular neighborhood-focused social Nextdoor. Called Neighborhoods, the feature reportedly suggests local neighborhood groups to join on Facebook.

Illustration: Dom Guzman

Venture investors and leaders in the fintech space can visualize a future where such startups will move toward again rebundling services.

Root Inc., the parent company of Root Insurance, launched its initial public offering and is looking at a valuation of as much as $6.34 billion.

Clover Health posted rising revenues and a narrower loss in its most recent financial results, published in advance of a planned public market debut.

Crunchbase News’ top picks of the news to stay current in the VC and startup world.

Source: https://news.crunchbase.com/news/briefing-10-21-20/

Continue Reading

Crunchbase

Syte Sees $30M Series C For Product Discovery

Avatar

Published

on

Online shopping has become the norm for most people in 2020, even coaxing traditional retail brands to up their presence to stay competitive. However, now that shoppers can’t see and touch products like they used to, e-commerce discovery has become a crucial element for customer acquisition and retention.

Subscribe to the Crunchbase Daily

Enter Syte, an Israel-based company that touts creating the world’s first product discovery platform that utilizes the senses, such as visual, text and voice, and then leverages visual artificial intelligence and next-generation personalization to create individualized and memorable customer experiences, Syte co-founder and CEO Ofer Fryman told Crunchbase News.

To execute on this, the company raised $30 million in Series C funding and an additional $10 million in debt. Viola Ventures led the round and was joined by LG Technology Ventures, La Maison, MizMaa Ventures and Kreos Capital, as well as existing investors Magma, Naver Corporation, Commerce Ventures, Storm Ventures, Axess Ventures, Remagine Media Ventures and KDS Media Fund.

This brings the company’s total fundraising to $71 million since its inception in 2015. That includes a $21.5 million Series B, also led by Viola, in 2019, according to Crunchbase data.

Fryman intends for the new funding to be put to work on product enhancements and geographic expansion. Syte already has an established customer base in Europe, the Middle East and Africa, and will now focus expansion in the U.S. and Asia-Pacific.

Meanwhile, Syte has grown 22 percent quarter over quarter, as well as experienced a 38 percent expansion of its customer base since the beginning of 2020.

“Since we crossed $1 million annual recurring revenue, we have been tripling revenue while also becoming more efficient,” Fryman said. “We can accelerate growth as well as build an amazing technology and solution for a business that needs it right now. We plan to grow further, and even though our SaaS metrics are excellent right now, our goal is to improve them.”

Anshul Agarwal, managing director at LG Technology Ventures, said Syte was an attractive investment due in part to its unique technology.

“They have a deep-learning system and have created a new category, product discovery that will enable online shopping in a way we never had the ability to do before,” Agarwal said. “The product market fit was also unique. We believe in the strong execution by the team and the rapid growth in SaaS. We looked at many different companies, and the SaaS metrics that Syte showed are the strongest we’ve seen in a while.”

Illustration: Li-Anne Dias

Venture investors and leaders in the fintech space can visualize a future where such startups will move toward again rebundling services.

Root Inc., the parent company of Root Insurance, launched its initial public offering and is looking at a valuation of as much as $6.34 billion.

Clover Health posted rising revenues and a narrower loss in its most recent financial results, published in advance of a planned public market debut.

Crunchbase News’ top picks of the news to stay current in the VC and startup world.

Source: https://news.crunchbase.com/news/syte-sees-30m-series-c-for-product-discovery/

Continue Reading
Ecommerce3 hours ago

How Digital Transformation Will Change the Retail Industry

Blockchain News17 hours ago

Ethereum City Builder MCP3D Goes DeFi with $MEGA Token October 28

Blockchain News18 hours ago

Why Bitcoin’s Price Is Rising Despite Selling Pressure from Crypto Whales

AR/VR19 hours ago

AR For Remote Assistance: A True Game Changer

Blockchain News19 hours ago

Smart Contract 101: MetaMask

Blockchain News20 hours ago

New Darknet Markets Launch Despite Exit Scams as Demand Rises for Illicit Goods

Blockchain News20 hours ago

Bitcoin Millionaires at an All-Time High as Analysts Warn of a Pullback Before BTC Moves Higher

Fintech20 hours ago

The Impact of BPM On the Banking And Finance Sector

Energy21 hours ago

New Found Intercepts 22.3 g/t Au over 41.35m and 31.2 g/t Au over 18.85m in Initial Step-Out Drilling at Keats Zone, Queensway Project, Newfoundland

Energy21 hours ago

Kennebec County Community Solar Garden Reaches Project Milestone

Energy21 hours ago

Kalaguard® SB Sodium Benzoate Registered Under EPA FIFRA

Energy21 hours ago

LF Energy Launches openLEADR to Streamline Integration of Green Energy for Demand Side Management

Energy21 hours ago

Thermal Barrier Coatings Market To Reach USD 25.82 Billion By 2027 | CAGR of 4.9%: Reports And Data

Blockchain News21 hours ago

$1 Billion in Bitcoin Moved, Making It the Largest Dollar Value Crypto Transaction in History

AR/VR22 hours ago

Digital Catapult’s Augmentor Programme Reveals 10 new XR Startups

Singapore
Esports23 hours ago

erkaSt joins NG

AR/VR23 hours ago

Hands-on: Impressive PS5 DualSense Haptics & Tracking Tech Bodes Well for Future PSVR Controllers

Blockchain News24 hours ago

Alibaba Founder Jack Ma Criticizes Current Financial Regulations

EdTech1 day ago

Google Classroom Comments: All You Need to Know! – SULS086

Blockchain News1 day ago

Bank for International Settlements to Issue a PoC CBDC With the Swiss Central Bank Before the End of 2020

Blockchain News1 day ago

Ripple CEO Disagrees with Coinbase CEO’s Apolitical Work Policy, Considers Relocating Overseas

Cyber Security1 day ago

Smart Solutions to Screen Mirroring iPad to Samsung TV

Esports1 day ago

Video: TeSeS vs. Vitality

Big Data1 day ago

Seven Tools for Effective CDO Leadership

Big Data1 day ago

Key Considerations for Executing a Successful M&A Data Migration or Carve-Out

Cyber Security1 day ago

Best Powered Subwoofer Car Reviews and Buying Guide

AR/VR1 day ago

Jorjin Technologies announcing J7EF, the latest of its J-Reality

Big Data1 day ago

Parallel ways of Data Scientist and Machine Learning

Supply Chain1 day ago

The New Role of Agricultural Machinery to Work the Land

Energy1 day ago

LONGi fornece 101 MW em módulos bifaciais para uma usina de larga escala no Chile.

Energy1 day ago

LONGi suministra 101 MW en módulos bifaciales para una planta de energía ultra grande en Chile

Energy1 day ago

Unabhängige Test bestätigen, dass der neue flüssigkeitsgekühlte Brennstoffzellenstapel von HYZON Motors bei der Leistungsdichte weltweit führend ist

Cyber Security1 day ago

Francisco Partners to Buy Forcepoint from Raytheon Technologies

Energy1 day ago

WHO experts acclaim Arawana as an oil of the 5G era, and they recommend the consumption of trans-fat-free cooking oils

Energy1 day ago

FIBRA Prologis Anuncia a Carlos Elizondo Mayer Serra como nuevo Miembro Independiente del Comité Técnico

Payments1 day ago

Post Office to close 600 ATMs

Payments1 day ago

Westpac rolls out customer complaint resolution system

Cyber Security1 day ago

Threat Landscaping

Ecommerce1 day ago

VTEX Opens Office in Singapore to better serve its Global Customers in…

Ecommerce1 day ago

StrikeTru Accelerates Momentum with New Client Wins & Strategic…

Trending