Episode 113: A Deluxe Case Study from a Remote US Landlord with Flint Jamison
Summary
Ever consider buying a multi-unit rental in another time zone? Today I talk with a US real estate investor who walks us through a remote purchase, hiring property manager, a nightmare tenant, and many decision points along the way. Flint Jamison joins me today for a deluxe case study on the US side talking about the acquisition, rental, and exit from a remote rental.
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This Week’s Blog Post:
Delving into Real Estate Investments with Flint Jamison
Hello, everyone! I'm Doctor Jen, and welcome back to "My Life as a Landlord." I'm excited to share another real estate investment case study with you all. Today, we're exploring the journey of Flint Jamison, who transitioned from an aerospace career to real estate while managing properties remotely. Flint, residing in Virginia and having traveled to all seven continents, brings a unique perspective to our discussion today.
Flint's Initial Foray into Real Estate Investing
Flint shares how he dove into real estate investing while still managing a demanding job in aerospace. His strategy involved purchasing a turnkey property outside Milwaukee, which he hoped would simplify his entry into the real estate market. He used a hard money loan for the purchase and paid cash for renovations, aiming to apply the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy. However, he encountered challenges such as underestimated repair costs and extended timelines, which are common hurdles for many new investors.
Overcoming Challenges and Managing Costs
During the renovation, unexpected costs arose, a common scenario in property flips. Flint discussed how issues like underestimating the cost of removing old linoleum and unexpected electrical upgrades can escalate expenses and project timelines. These experiences highlight the importance of budgeting for contingencies in real estate investments and the value of hands-on involvement, or at least periodic check-ins, to manage and understand the ground realities of property rehabilitation.
Lessons Learned and Adjusting Strategies
Reflecting on his experiences, Flint emphasized the importance of planning for higher expenses and longer timelines. He also touched on the significance of verifying the work scope and quality with multiple contractors to avoid relying solely on a single point of failure. His journey underscores the learning curve in real estate investing and the need for new investors to be prepared for unexpected challenges.
The Turnaround: A Profitable Sale and New Directions
Despite the challenges, Flint managed to stabilize the property and eventually made a profitable sale, which was facilitated by a well-connected real estate agent. This experience, although stressful, didn't deter Flint from real estate but rather shaped his approach to future investments. He has since moved towards larger multifamily units and syndications, leveraging partnerships to manage risks and expand his investment portfolio.
Flint's Current Focus and Advice for New Investors
Today, Flint focuses on syndications, allowing him to pool resources with other investors and invest in larger projects without the day-to-day management hassles of direct ownership. His advice to new investors is poignant: take action sooner than you think is necessary, and consider education and mentorship as crucial steps, but don't get paralyzed by over-preparation. Engaging actively in investments can provide practical learning and growth opportunities that theoretical knowledge alone cannot offer.
Join me next week as we continue to explore impactful real estate stories and lessons that can help shape your investment strategies. Whether you're a seasoned investor or just starting out, understanding the complexities of real estate through case studies like Flint's can provide invaluable insights. Thank you for tuning in, and I look forward to bringing more enlightening discussions to you on "My Life as a Landlord."