What you missed - Dennis Koelsch
Mr. Dennis Koelsch owns and/or manages over 100 homes with years of experience in landlording, buying and selling properties. He explained our outlook today in terms of ancient dinosaurs.
There are two types: Dinahias, an herbivore who listens to the news every night about how bad the real estate market is and follows the herd of people who sit and wait for everything to straighten out, as inactive and indecisive.
The other is the Episaurus, a carnivore who eats everything in sight and can adapt to any changes in their environment. As a contrarian, the Episaurus will take advantage of the best real estate market to happen in the past ten years, just write 1 or 2 contracts per week and your success is almost assured.
Right now there are over 100 sellers for each buyer and since we’re the only game in town, sellers will have to deal with us. Just think uniquely and outside the box to succeed. Possibly by doing things like buying an RV or boat at a deep discount and trading it for a house.
Mr. Koelsch also touched on commercial properties and the upcoming crash due to the incursion of debt by commercial investors over the past few years. Soon it will be open season another segment of the market.
Mr. Koelsch described his method of joint venturing, allowing him to purchase properties without worrying about payments, just split the profits. Now is the time to learn how to structure deals to decrease debt. The old formula of buy and hold has been replaced by buy with decreased debt, and then hold.
To do that you need to solicit private money from people disenchanted with their returns in the market and in the failing banking system. Once you have developed a “money person” that understands how you do business and have been successful for them, they will never leave. You will always have to keep their money flowing so they’ll want to make sure you’re finding the next great deal for them. Two mottos to live by in investing: “Create financial friends, and avoid risk”
As a property manager Dennis is the most expensive: he takes 50% of the deal, but he finds the property, rehabs it, and manages it, then splits the profits after expenses.
He explained how retaining a good tenant is preferable to finding another. If one wants to move, find out what they are looking for and give it to them, keeping them happy and continuing to pay you. Establish communication between landlords by having lunch with them and if a tenant insists on moving, you can refer them to another landlord who would reciprocate at another time.
Mr. Koelsch answered questions pertaining to investing for several minutes, describing how to make more money and keep it in these tight times. Just be an Episaurus – an adapting, contrarian investor, and begin right now as the best time in recent history to be a real estate investor.
Past What You Missed
Jack Shea (2008)
See past meetings schedule here