Real Estate Nerds 63: Best Deals

Defining Investing Goals and Success

John Casmon

Real Estate Investing Expert

John Casmon began his investing career and eventually found himself growing faster than his funding! Today on the Real Estate Nerds Podcast Scott Smith talks with John about how he eventually graduated from investments with his wife into the syndications he operates today. The best deal John highlights was actually found through a broker who he worked with quite often and knew his goals. John discusses what “due-diligence” looks like for him when looking at an investment property. He also explains what factors are deal breakers for himself, and how he tries to navigate the whole process.

Defining Investing Goals and Success

[1:08] John introduces himself

  • Started with duplexes and continued to grow until financially maxed out
  • Educated himself on partnerships and expanded into syndications and big deals

[2:10] Ideal groups who work with John

  • Individuals who have a lot of income and don’t have time to manage their own investments
  • Individuals who have less income, but are hard working and looking to scale up
    • Learn and grow as limited partners

[3:40] Overview if the “best deal,” which was off-market and found through a broker relationship

[4:25] The components of this “best deal?”

  • Location was the #1 factor for John
  • Cashflow
  • Low burden – something that wasn’t a huge amount of work up front

[6:40] How John set himself up for success

  • John spent a tremendous amount of time researching prior to investing
  • John and his wife outlined a very specific guideline for properties they were willing to acquire
  • He also established a strong relationship with the broker, who recommended this deal

[9:18] John explains how to ensure the deal is good and numbers are correct: digging deep

[12:25] John explains the “red flags” he is looking for

  • Does the house fit the neighborhood?
  • Does the house meet the price being requested?
  • Are the bills consistent, or are there “bumps”?
  • Are they addressed deferred maintenance?

[13:45] It doesn’t matter what the seller is paying in expenses. What matters is how much your costs will be once you own the property.

[14:55] Dealbreakers: can’t verify the income statement or the seller doesn’t want to share specific details/bills.

[16:40] what should operators provide the partners in a deal?

  • There should be transparency in any deal the investors are participating in
  • Operators should point out the risks of an investment, then explain what they are doing to mitigate that risk.
  • Even teaching partners how things work and training them about the specific deal

[20:40] Lessons learned:

  • Get really clear about your goals
    • Ho does this specific action help you create the lifestyle you are working toward?
  • Define what you truly want

[21:50] Scott tells the “reticular activator,” which basically means the brain starts to focus on what you have trained it to look for.

[23:10] John explains that he never aimed to do syndications for large investments. He simply was looking for ways to make more money to invest in more deals, and at that point he found the individual who taught him how to take action and grow.

Listener Resources

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Hosted by Scott Smith, Lead Attorney and Founder of Royal Legal Solutions

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