Chris Kleewein has been a real estate investor for a long time. His first buy was a duplex in which he lived in one side and rented out the other. Chris lives in St. Louis and once shared an office with me.
Chris worked for a while in the corporate world, but always knew he wanted to be in real estate. He remembers watching Carlton Sheets in an infomercial when he was in high school.
Chris is a big believer in partnering with other investors and mentoring people who are starting out. He works with a few students at a time in St. Louis, and regularly partners with his students on deals.
On the buy side, Chris will not finance for longer than 5 years. He believes you have to be free and clear on a property as quickly as possible. An investor in St. Louis had his note on 25 rental houses called by his bank this week.
During the last recession, Chris owned 50 rental houses, which made the downturn pretty difficult. He still had his corporate job then, so didn’t actually foreclose on anything.
Don’t ignore the fundamentals. Chris says his first fundamental is area, then a minimum $300 a month cash flow. And again, he finances for a maximum of 5 years. All these pieces have to come together for Chris to do a deal.
Chris’s advice to new investors: Know that owning your own company can be an emotional rollercoaster. Don’t give up, surround yourself with positive people, be consistent, and follow existing paths.
Listen and Learn:
- The guest, Chris Kleewein, believes direct mail is the best marketing tool for wholesaling.
- He’s also a huge fan of networking… let everyone you cross paths with know you’re looking for rentals.
- The BRRR Method (buy, rehab, rent, refinance) does not interest Chris.
- Chris works with Class B and C properties, which St. Louis has in spades.
Mentioned in this episode:
- Joe’s podcasts on iTunes: RealEstateInvestingMasteryPodcast
- Joe’s lease option book: WLOBook
- Joe’s podcasts on YouTube: Joe McCall
- Joe’s podcasts on Facebook: Joe McCall
- CRM: REI Blackbook, Podio
- Answering Service: VoiceNation
- Book recommendation: Never Split the Difference
- Email Chris: firstname.lastname@example.org
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