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Joe is the host of the world’s longest running daily property investing podcast, and with all the modesty we’d expect of our American cousins what better a name for his show than the Best Real Estate Investing Advice Ever Podcast!
His career has gone from starting in New York City as the youngest ever Vice President of an advertising agency, to creating a company that now controls over $54,000,000 worth of real estate.
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Joe has a pretty simple strategy. He started off buying single family homes, but quickly realised he wasn’t excited about this market so moved up to large multi family units. He took $50,000 from a previous deal, quit his job, and started the search for his first big deal. It took him almost 7 months of work to find the first multi-family property, but he made $22,000 from this first one and has gone on to buy $90,000,000 worth of apartment buildings, the vast majority of which has been done over the past 18 months.
He likes these multi-family apartment buildings as it allows the whole property investing process to scale up in an efficient way – multiple rents from a single building, only one building requiring maintenance and management, multiple incomes from a single deal, and so on.
He’s typically sourcing these on behalf of larger corporate entities and investors who he joint ventures with, meaning he doesn’t need to find the cash for each deal but gets a cut of the profit going forwards, so it’s always adding to his recurring income. This relationship building with potential investors is where he spends a lot of his time these days.
Joe’s first deal with his business partner (his second multi-family deal overall) stands out in his mind as it created this long term relationship which has allowed him to go on and build this phenomenal business.
They were buying a 250 unit apartment complex in Texas when the oil prices started to tank, but Joe persisted with the deal and only 16 months later they’ve added so much value to the complex through repairs and better management that they’ve been able to return 40% of the funds they borrowed from investors after a refinance. The investors retain the same equity stake despite getting more of their money back, but the joint venture is structured in a way that the better the apartment development performs, the more Joe and his business partner make.
The last single family home that Joe bought before moving onto apartment building was purchased for $36,000 and he estimated a renovation budget of $4,000. It actually needed $15,000 worth of work and rather than renting for the $900 he hoped, it only rented for $700 which is exactly what is was renting for before he did the work!
His biggest takeaway from that experience was that no matter how hard you try to improve your specific building, you can’t do much to improve the surrounding area in the short term, so you need to be really careful to assess not just the building you’re buying, but the buildings surrounding it and the local community as well.
What’s Your Favourite Book?
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Joe Fairless’ Links & Resources
JoeFairless.com – Check out Joe’s website to find out more about his property investing, and to discover his amazing ‘Best Real Estate Investing Advice Ever’ podcast.
Email Joe Fairless – Get in touch with Joe and he’ll send you a free resource covering how he assesses property deals, his favourite books, and some general property investing tips