The Value of Getting Into Real Estate with Justin Bennett


Manage episode 201331622 series 1265475
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The economy is soaring, and the real estate market is hot. According to our surveys, 83% of the people surveyed not only want to learn how to do real estate but also want to invest in it. Justin Bennett is someone who I do real estate with in the Kansas City market.

I brought Justin here today to talk about his real estate market, and why he decided to get involved in real estate. He also owns a carpeting and flooring company, and he is an entrepreneur at heart. Justin realized that a corporate job wasn't for him. After starting his business, he discovered the value of real estate and hasn't looked back.

You can find Justin here:

Show Notes

  • [01:34] When Justin started out, he had a great corporate job working for 3M. It was a good job, but it felt like there was no end in sight.
  • [01:51] He found a great business partner and started the floor restoration company, and things just took off from there. He then began investing in real estate.
  • [02:04] His partner had a construction company, and they invested in real estate on the side for a while. Then they decided it was time to do things the right way.
  • [02:38] There is serious money being made through all of the different aspects real estate every year.
  • [02:47] Justin became involved in the investment side of real estate because there's so many different strategies you can use. You can buy properties and flipped them for fast cash. You can buy properties and renovate them and rent them out for cash flow.
  • [03:09] You can also invest in properties to hold not only for cash flow but also for appreciation.
  • [03:24] There are so many different ways to invest in real estate. The possibilities are just endless.
  • [03:57] The Kansas City market is so investor friendly because the economy is booming right now. Justin understands the neighborhoods and the market and doesn't have to waste any time on his investments.
  • [04:44] There is also an affordable cost of living and middle-class families can thrive.
  • [05:07] Justin likes to invest in the buy and hold side of real estate.
  • [06:02] The city is going through a huge revival and tons of jobs are being created in Kansas City, TN. There is even free streetcar service.
  • [06:55] The strong economy and the projected growth make it a no-brainer to do business there.
  • [07:15] Justin's favorite play is the single-family residence where they fix and hold them.
  • [08:40] He loves to target neighborhoods that have multiple homes for sale. That way he can control the quality of several homes on the same street.
  • [09:10] If you can control your rent you can increase cash flow.
  • [09:41] When you buy a block of real estate you can completely change the community.
  • [10:12] Kansas City is the top five in the country for out of state investors because they understand the kinds of deals you can get here.
  • [10:31] They rate properties on a level one to five. They usually focus on the level three properties. These are three-bedroom one or two bath houses. That will rent for $600 to $800 a month.They will also hold their value and appreciate each year.
  • [11:21] They also pick up level four homes at auctions. These homes are one step down from the level three homes.
  • [12:17] They will also get the level two duplexes. These properties appreciate even though they have less cash flow.
  • [13:11] Forced appreciation by adding enhancements. Millennials want to live downtown. Fix these properties up according to what the millennials want. The difference between a tile bathroom and a laminate floor can be $200. Yet, it can get a higher rent.
  • [15:43] Rejuvenating neighborhoods and improving the value of homes is also a great form of advertisement for your real estate investment business.
  • [16:31] The diverse kinds of deals that you can do. There are multiple options from debt positions, equity positions, joint venture opportunities, and more.
  • [17:43] Justin's team is usually able to offer double-digit returns to his investors. Justin has investments starting at 10% and up.
  • [18:31] There are also multiple things in place to protect the investment or the investor.
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