In this episode, I interview Ben Leybovich. Ben is an extremely intelligent real estate investor and all around great guy.
Ben has been diagnosed with multiple sclerosis. However, he has not let this slow him down or defeat him. Ben is a true inspiration and has proven to be very courageous in his fight with this condition, and persevering where others might choose to feel sorry for themselves and quit. For anyone who feels that they don’t have the time or the ability to do real estate, you really need to hear Ben’s story.
Ben’s philosophy is:
“If you have a brain, you don’t need money to buy real estate. You just need to be educated!”
Ben owns 28 residential rentals. Most of them are small multi-family units. A few of them are single-family homes, but nearly five years ago he stopped buying single-family properties. Ben’s criteria for buying property is that it must be no money down (or very little money down), and it must be multi-family. There are a few reasons for this:
- Easier to manage–fewer locations to deal with.
- Repairs are more consolidated.
- Forced appreciation. You can directly affect the value of a multi-family.
- Created equity can be leveraged to buy more property.
- Single-family homes have a limit on their value based on comparable market analysis.
- The value of multi-family (income) properties is based on their income.
We discuss turnkey properties, and how they are usually not a good strategy for anyone who has the ability to get out and find their own properties. You’re almost always better off researching and finding good properties at a deep discount, doing your own renovations, and renting them yourself. You don’t want to put your business completely in the hands of someone else.
Advice for beginners:
“Don’t worry about learning the tricks of the trade, just learn the trade.”
www.justaskbenwhy.com – Ben website
13 steps to valuing your first multiplex – Ben’s book
Biggerpockets.com – Real estate community
Quickbooks – Accounting software