006: New Construction, Flipping, Wholesale, and Rentals with Joe Evangelisti
There are quite a few real estate brokers who have seen the advantages of being an investor while in the industry. But Joe Evangelisti went about it the other way round. Joe got into real estate investing first, through a flip deal that went bad. He learned the hard way how hard it can be to flip houses and turned that deal around by making it a rental. He didn’t give up after one bad deal and was off and running as a real estate investor. He took those hard learned lessons and turned them into a career as a real estate broker, eventually owning his own office and using that position to feed his own real estate investing business. Hear more of Joe’s story on this episode of the InvestFourMore Podcast.
It doesn’t take a special skill set to be a successful real estate investor
Joe was a “C” student in high school and didn’t graduate college. He says that the main thing a potential real estate investor needs is the courage to learn and move forward. There are too many people who consume all the content about real estate investing but never put it into action. Joe says that the ones who are successful in the investing business are the ones who have the guts to try out what they’re learning. Mistakes will be made, but it’s not something that should hold you back. Find out more on this episode of the InvestFourMore Podcast.
Do you know what the “replacement recipe” is?
There are other names for this investing strategy, but Joe has dubbed it the “replacement recipe.” It’s where you use private money to purchase a rental property, then refinance the house into long-term financing with a traditional lender for more money after the property is repaired. Then you pay back the private money lender and have an asset that produces positive cash-flow with none of your own money in the game. It’s one of Joe Evangelisti’s favorite ways to add rental properties to his portfolio without risking a dime of his own finances. Hear it explained from Joe on this episode.
How many exit strategies can you have when you buy a property?
Joe Evangelisti has built his business to the point that he has at least 4 exit strategy options for every property he purchases. First, he tries to work it as a wholesale deal, getting out the most money he can without having to invest money of his own. Next, Joe will evaluate the potential for a fix and flip. After that, he’ll see if it can be turned into a rental property, using private money to purchase, refinancing to repay the loan and set up a long-term solution, then renting the property to create immediate cash-flow. And if all else fails, he’ll make it a turn-key deal and try to sell it as a ready-made cash-flow opportunity for another investor. You won’t want to miss Joe’s explanation of how to leverage properties in these four ways – all on this episode of the InvestFourMore Podcast.
Financing real estate investments is the trickiest part…
Joe Evangelisti doesn’t believe in seeking out unknown investors to fund his real estate fix and flips or wholesale deals. He has learned to build a relationship, fulfill his end of the bargain, and then go back to the same people again and again to fund other deals. He’s discovered that once you promise a person 10% return in 6 months and actually come through with what you promised, those people will want to do the same thing again and again. There’s no reason they wouldn’t want to because it’s making them money time after time. But it requires you to be able to fulfill your promises every time.
Joe’s podcast and website