In this episode, I interview Kenny Estes. Kenny is a successful real estate investor who specializes in buy-and-hold real estate. He has a very strong finance background. Kenny started his investing career while in college, and continued it it as a hobby for a number of years before going full-time. Unlike many investors, Kenny does not invest in his own town because the price of real estate is less attractive than where he actually invests.
Kenny was a really fun guy to interview, and has a lot of great insight into the world of real estate investing. He has a very realistic approach to real estate investing and is definitely not about hype, but rather about real world, down to earth, practical advice.
Overview of Kenny’s Business:
1. Primarily invests in South Bend, Indiana.
2. Spends a lot of his time talking to investors, procuring funds, and making sure his investors are well taken care of.
3. Now starting to look outside of the South Bend market.
A typical deal (case study) in Kenny’s business:
- Commercial unit
- $700,000.00 investment
- Triple net lease
- Cashflow per year- $74,000
- 10% return /year
What are the biggest mistakes that new real investors make?
- Getting started too early. Some gurus make it sound too easy!
- Not understanding the risk involved.
- Taking on too much debt too fast.
- Don’t understand that investing is a job.
Advice for new real estate investors:
- Should to be passionate about real estate
- Find a mentor
- Do (know) the numbers. Trust those numbers.
- Plan your business with the thought of it lasting for the rest of your life.
http://peartreeproperty.com – Kenny’s website
BiggerPockets – Great place to start looking for mentors
Google Drive – Document management