J. was recently interviewed by Simon Black who asked him some pretty interesting questions. One is simple. Why does J. invest in real estate? The answer goes far beyond what you might expect. J. likens investing to a food chain. It's the Real Estate Food Chain is this analogy. In an actual food chain, it starts with a seed and ends as a finished good. There are all sorts of things that happen in between and the participation of different trusted individuals that make the finished product come into being and then get sold as a finished good. A value is placed on the food goods and we consumers decide to buy or not. It's much the same in Real Estate Investing.
Food or real estate, it's about supply and demand.
J. says that the value in real estate now is that we will run out of existing stock. We are producing more people than we are housing. Eventually that's going to be a problem. If you have real estate, you can be a solution provider. People will always need a place to live, work, play and lay, so why not benefit from providing these necessities? J.'s team tends to invest in distress, which means they find primarily apartment buildings that need some TLC and lower the effective age of the buildings. Just like an older person might opt for a face lift to reduce the exterior effects of time, J. does the same with his buildings. He gives them a face lift from the inside out. He rehabs the properties to bring them up to date and turns them into clean, safe, affordable housing. Listen to this interview to learn about the benefits of taking J.'s approach in real estate:
- Keeping land acquisition costs low
- Limiting the number of permits one needs in the rehab process
- Creating clean, safe, affordable housing can bring more to your life
- And more…
J. focuses on buildings with 50+ units and adds amenities to bring up the value for tenants and for his team. The long and short of why he does what he does is that more people are being created all the time. He is following this trend, so he can be there ahead of the curve to provide much-needed housing. He is following trends in his investing pursuits abroad, too. In this interview, J. points out that outside the U.S. real estate investors can leverage the opportunities in housing where the U.S. dollar is accepted. For example, we can build new housing and offer new opportunities in spaces that accommodate living, working, playing and eventually laying. That's why J. invests in Belize! It fulfills the PLAY component, but also living and working, because he will create jobs and some people will choose to live in the luxury resort village he is helping to develop there. Current trends lead J. to make the decision to invest in paradise: • Ex-pat trend of living outside the U.S. • Baby Boomer trend of their needing cost-effective living • Tourism trends (notice there's not just one that Belize answers) At the end of this insightful interview, J. Massey makes a special offer. Those who either visit www.cashflowdiary.com/SIMON or those who text “SIMON” to 949.682.3565 will receive at no additional charge the upcoming audiobook release of Cash Flow Diary when they purchase the print version. That's a pretty sweet deal, because the audiobook will have more content than the print book. J. couldn't help himself in adding even more value, which is great for anyone interested in becoming a Real Estate Investor or learning even more as a seasoned professional.