Episode 90: Tools for Doing Deals in 2024 with Kyle Johnson
Summary
As real estate investors, it's our job to get to the closing table with a plan that cash flows at every point. But what OTHER tools can we use to get to that point? My guest today returns to the show as a younger Canadian entrepreneur, but one of the most savvy. His innovative approach to getting a property under contract, and then figuring out cash flow is AMAZING. Join us as we discuss the TOOL for success doing deals in 2024!
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This Week’s Blog Post:
Welcome to another episode of My Life as a Landlord, where I dive into the ever-evolving world of real estate with insightful guests and engaging discussions. This week, I had the pleasure of welcoming back Kyle Johnson, a savvy young landlord from Canada who previously joined us in episode 70. In this episode, we explored the tools and strategies for navigating the real estate landscape in 2024 and beyond.
Navigating Interest Rates and Market Changes
In our conversation, Kyle and I delved into the challenges and opportunities presented by fluctuating interest rates. With rates having spiked over the past two years, we discussed how this impacts property sales and the emergence of distressed sellers. Kyle emphasized the importance of negotiating deals based on terms rather than just price, especially in a market where interest rates can significantly affect cash flow and property value.
Creative Financing and Offer Strategies
Kyle shared his innovative approach to making offers, highlighting the importance of presenting multiple options to sellers. By submitting various offers—traditional finance, a blend, and seller finance—he opens up negotiations and finds middle ground that benefits both parties. This strategy allows him to tailor deals according to each seller's unique situation and financial needs, ultimately facilitating successful transactions.
Commercial Real Estate Ventures
We also touched on Kyle's transition into commercial real estate, a new venture for him. He explained the complexities of commercial properties, such as varying cap rates and tenant dynamics. Despite the challenges, Kyle sees commercial real estate as a natural progression from residential investments, offering potential for greater returns and diversification.
The Role of Loan Officers and Credit Unions
Our discussion highlighted the crucial role of loan officers in navigating the lending landscape. Kyle emphasized the value of building relationships with both credit unions and traditional banks, as each offers unique advantages. He shared insights into the differences between these institutions and how they can impact financing options, especially for self-employed individuals like himself.
Looking Ahead: Real Estate Trends and Advice
As we wrapped up, Kyle offered advice for fellow landlords and investors. He cautioned against relying too heavily on short-term rental strategies due to regulatory uncertainties and stressed the importance of conservative underwriting. By focusing on long-term stability and cash flow, landlords can weather market fluctuations and build sustainable portfolios.
Thank you for tuning in to this episode of My Life as a Landlord. Join me next week as we explore landlord timing and its impact on successful property management. Remember, education is key to overcoming fear in real estate. See you next time!