Marco Santarelli, who has a podcast about passive real estate investing, is my guest. You’re going to enjoy learning from him today.
It’s good to have passive streams of income coming from real estate even if you generally wholesale for quick cash. Marco started investing when he was 18 with his 1st rental property.
Time is a big factor for many investors. People may have money to invest, they may have the desire to invest, but they don’t have the time and they don’t have the team.
Marco’s company can help a beginning investor build a portfolio of properties. Marco studies the neighborhood, the market, the property‘s condition, etc. for passive investors.
There are lots of balls in the air with any type of real estate investing. There’s insurance, taxes, maintenance, repairs and vacancies to budget for. Mario generally factors in 5% for vacancies, 5% for capital expenditures, 5% for maintenance, etc.
He recommends you put aside 2 to 3 months of gross rent in an operating account. The account will grow and you will have money on hand so you don’t panic when repairs are needed.
Marco invests in the south, the Midwest and certain pockets in the northeast region. He’s in 22 markets now because it takes that many markets to come up with enough housing inventory.
Some markets are better for cash flow, some are better for appreciation. Smart investors can protect themselves by buying correctly and staying cash flow positive by keeping their debt steady.
Begin with the end in mind. Don’t buy C properties if you don’t plan on selling to C landlords. Find out what landlords want before you look for properties.
Listen and learn:
- Figure cash-on-cash return, and evaluate property manager and seller.
- Mortgage financing is the best kind of debt there is.
- Why do landlords throw up their hands and sell low?
- Marco’s podcast topics include financing, asset protection, property management, picking markets, etc.
Mentioned in this episode:
- Joe’s podcasts: Real Estate Investing Mastery Podcast
- Marco’s podcast: Passive Real Estate Investing
- Marco’s website: Passive Real Estate Investing
- Marco’s company: NORADA Real Estate Investments
- Marco’s [short] book: The Ultimate Guide to Passive Real Estate Investing
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