12 – Kenny Estes

Kenny EstesIn 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.

Links

http://peartreeproperty.com – Kenny’s website

BiggerPockets – Great place to start looking for mentors

Google Drive – Document management

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