Real Estate Investment TeamworkBy
Darwin German 

Teamwork is one of the beauties of real estate investing. However, the teamwork I believe in is much more than what you may be thinking. I believe that every vendor, tenant, lender, contractor, and even your competition is a team member. Here are some samples;  

• Broker.  Your real estate broker, especially if acting as your representative is on your team.  They will be a huge asset in your real estate career. Do not treat them as a one-time contact, they will be instrumental at keeping you up to date with the market, giving insight to what is being sold, and where the trends are going.
• Title Company.  The title company is providing insurance.  While their primary concern is covering their own concerns, these same items would be of concern to you as well.  Additionally, they close properties every day and will have information and potential contacts in the industry.
• Lender. Yes, your lender is a part of the team.  They are providing the capital for your transaction and they want you to succeed.  If you have troubles, definitely keep them in the loop.  They have a huge vested interest in your success.
• Management Company.  If you employ third-party management make sure to use them to the full extent you can.  They can provide insight to every aspect of your transaction including due diligence assistance, great contractors, and great connections in the industry. They will be the front line in your investment, make sure to keep them on your side.
• Contractors.  This category is HUGE.  Do not try and beat them up too much.  Yes, you want a fair price, great service, and a great product, but do not make them an adversary. They want to make a sale and it is your decision to use them or not, however, if you communicate your goals and objectives you can make them a part of the solution.  They want to sell their product/service. Usually if they can provide value, by knowing your goals, then they will do what they can to help you achieve your goals.
• Tenants. Do not ignore them.  This is not a zero-sum game.  Your tenants are your lifeline. Keep them as part of the team, get them to buy-in to the goals of the property – and to have a voice – so that you retain them long term.  They understand that you operate a business, just as they do.
• Competition. Yes, they are your team members also. You are on common ground. While you compete, the information exchange is invaluable for the long term success of your investment.   

Real estate investing is a fun and exciting business.  You can literally create wealth through it.  When you see everybody in the industry as an asset, and work with all of them, personal satisfaction and wealth can follow. When you communicate the vision to all of your team (see above) you may be surprised by how many people will help you achieve that vision. Just remember, it is all up to you, but you do not have to do it alone.

It Only Takes One

By: Darwin German 

One. That sounds easy enough.  You only need one. One time. If you are like me, I say that I will try anything once.  Congratulations! It Only Takes One. Now, one what?All you need is one investment property to be financially free, pay for your retirement, and/or pay for your children’s college. It Only Takes One investment property. Let me explain. 

I love real estate.  I believe it is the best investment vehicle available. Here are a few reasons why it is the IDEAL investment.  Income – you want an income producing property, preferably with many tenants. Depreciation – the government allows to a deduction in the form of depreciation which essentially makes most of your cash flow tax free! Equity – each mortgage payment lowers your loan balance giving you more equity. Appreciation – more equity growth through the increasing value of the property. Leverage – unlike more other investments you can utilize leverage to purchase real estate giving you greater buying power. 

It Only Takes One. I represent a couple who own a small building in a nearby city.  They purchased the property 3 years ago for $550,000.  Today it is worth $750,000.  They have increased their net worth by $200,000 in 3 years because of this relatively small investment.  Their plan is to pay off the building in 7 more years.  When it is paid off, it should be worth over $1,000,000 and provide $10,000 per month in cash flow for their retirement! Remember depreciation . . . most of that will be TAX FREE income. 

It Only Takes One. Andy built an office building for his retirement.  It is roughly 20,000 square feet.  When he is ready for retirement it will provide over $25,000 per month in income. 

It Only Takes One.  I purchased a condominium for each of my two kids. I will have them paid off by the time they go to college. This gives them a $150,000 asset to (a) sell and pay for college, (b) refinance and pay for college so that a renter can pay for their tuition, (c) they can like in the condo saving a great amount in housing, (d) use the $1,500 per month rental income to augment their income while going to college, or (e) use it to springboard their investments. 

It Only Takes One.  Another client purchased a small apartment community.  She lived in one of the units and most of her friends rented the other units.  She lived there for 30 years with the tenants providing her with a great income.  Upon her passing, she was able to leave an asset to her kids worth over $2,000,000.  

The bottom line – It Only Takes One property to become financially free. That one property can provide for you better than most investments available.  The truth of the matter is that you will not want to stop with one. 

The Bible says a wise man leaves an inheritance for his children’s children.  If you are not building assets, what inheritance are you leaving? 

If you would like investment advice or more information in how to invest in real estate, please contact Darwin German Signature Real Estate at 817-886-6928.

Welcome to Darwin German’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Fort Worth.