Bryan Escudero

First Gen Foundations

President and Co-Founder

Univision Communications Inc.

VP, Production Operations - News and Entertainment 

Senior Director Production Operations 

Director Of Production Operations

Production Manager Univision News/ Fusion (Univision and ABC JV)/ Univision Local Media Miami

Production Manager

Non-Linear Video Editor

WSVN Channel 7 Miami

News Editor

Connecting First Gen Investors and creating wealth through real estate. Helping demystify real estate investing for you!

Are you afraid to look at your retirement because you know you are not near your goal?

Are you a First Gen Investor who wants to get started investing in real estate but doesn’t know how?

Many people are scared to look behind the curtain because of what they might find.

I took a long hard look at my retirement and realized I was nowhere near my goal.

I had to make a change. Investing in real estate has helped me move purposefully and positively toward my goal of retiring while I still have the energy to enjoy life.

Hi! I am Bryan Escudero and if you are stuck in the fear of getting started investing in real estate, you are on the right path.

Traditional real estate investing might seem out of your price range, but it doesn’t have to be!

Many people think that to succeed in this industry, you need hundreds of thousands of dollars and a ton of experience.

Guess what? You don’t have to be a millionaire to own an apartment complex. 

That is where we can help.

If you haven’t heard of apartment syndications, you are not alone. They are a great way to join other investors in buying larger real estate deals. 

If you are here, it is because you want to build something for you and your family’s financial future! 

As First Gen Investors, we know it is scary to move your hard-earned money.

The reality is, that if you don’t make your money work for you, you will always have to work for more money.

Take the step of learning how to stop moving from being a consumer to becoming an investor…

Here are 3 different ways you can start today.

1. Download our guide "7 Reasons Multifamily Investing Makes Sense"
→www.firstgenfoundations.com

2. Book a call with me:
→https://api.leadconnectorhq.com/widget/booking/CqMnXcQOqGOYvkFHB2Bo

3. DM me so we can chat on LinkedIn.

Let us help you build your First Gen Foundations!

How can you hang with the cool kids?

I am not a father.

I am the blessed uncle of 13 nieces and nephews.

One thing I have learned…

If you hang with them when they are small, they will still come around when they are grown.

I got to take 9 of them to the movies yesterday…
The cool part is, they all wanted to hang with their uncle. Some of them were working and couldn’t make it.

They range from 6 months to 25 years old. 

The 6-month-old likes to hang with me, even when her mom is in the room…
The 20-year-olds still call my wife and me to come hang out (even on some weekends).

The ones in the middle love coming over to play in the pool or sleepover.
The parents like that one too!

We have been able to pour into their lives since they were babies and we are blessed that they still like to spend time with us.

Prioritize your time with them when they are young and they have more of a likelihood of keeping you as an important part of their lives when they are older.

We babysit whenever possible.
I appreciate their parents prioritizing their relationships with us. 

They are truly some of our greatest blessings!

They are 13 of the reasons we began investing in real estate.
They will be our legacy.

What will your legacy be?

—
Are you the first one to invest in your family, or the first one to try a new type of investment?
Learn why placing capital in real estate should be part of your investment journey.

We Educate the First Gen Investors so you can grow your hard-earned money and give to the people and causes that are important to you.

If this sounds like you, book a call so that I can help you get started or continue building your First Gen Foundations. 

21 Questions you should ask your Property Manager

Unless you want to take on all of the duties associated with property management (hint: most people don't), there is an important question to ask.

How do you choose the right property management company for your investment property?

It might be a mystery to some, but there are certainly some questions that you can ask any potential property management company.

When asking these questions, we focus on the speed with which they answer, their demeanor and do they have their systems down to a science.

These are not all of the questions, but they can help you find red flags…

1. What areas do you serve?
2. What are your management fees? 
3. Do you have Lease up fees?
4. Do you have a Lease Renewal fee?
5. How do you communicate with owners? What technology do you use?

6. How frequently do you communicate with tenants/owners?
7. How many properties do you manage?
8. How long have you been managing properties?
9. What asset classes do you manage?
10. Am I locked into a management contract with you? If so, how does that work? Penalties for leaving?

11. How many evictions do you have each month?
Walk me through that process - 30-60 days
12. What kind of reserves do you or your company require?
13. How long does a typical tenant stay in your property?
14. How long do the properties you manage usually stay vacant before being rented?
15. How do you screen tenants? Credit and Criminal. Income and Rental.
 
16. Do you accept people who have had an eviction on their record?
17. Automatic Payment from the tenant (monthly)?
18. Do you have a tenant portal online?
19. How do you handle a maintenance request?
20. Is there a minimum charge for a maintenance visit?
21. What asset class are you most familiar with?

This is not our complete list...DM me if you want more...

What other questions do you ask prospective property managers for your rentals?

—
Are you the first one to invest in your family, or the first one to try a new type of investment?
Learn why placing capital in real estate should be part of your investment journey.

We Educate the First Gen Investors so you can grow your hard-earned money and give to the people and causes that are important to you.

If this sounds like you, book a call so that I can help you get started or continue building your First Gen Foundations.

3 Tips To Start Investing In Real Estate

**Tip 1: Be Ready to Make Sacrifices**

Embarking on your real estate investment journey requires dedication and sacrifice. For many first-time investors, this means juggling their investments alongside their full-time jobs.

Your 9-to-5 income can provide stability and support as you navigate the world of real estate investing. Be prepared to commit the extra time and effort required to succeed.

To achieve financial freedom, you might consider making sacrifices, whether it's working long hours or delaying personal luxuries to fund your next investment opportunity.

**Tip 2: It's Okay To Start Small**

Don't be afraid to start small when diving into real estate investment. Whether it's purchasing a small property or joining your first investment via partnership, focus on minimizing risk while gaining experience.

Working with seasoned investors who provide mentorship and guidance as you navigate the complexities of the market can pay huge dividends.

On your end, you should always strive to bring value to the table and actively contribute to your investments.

Starting small allows room for trial and error without jeopardizing all your resources. You can gain confidence and expertise and scale your assets to different (hopefully larger) projects.

**Tip 3: Basic Math is a Must: Know Your Numbers!**

A true understanding of real estate investing requires proficiency in basic math and financial analysis. If you are not “good with numbers,”  you might consider partnering with someone.

Whether you're calculating supply costs or evaluating potential deals, familiarity with standard spreadsheets is important.

Your ability to accurately assess factors like capitalization rates and rehab expenses can determine if a property is a good buy.

Make sure you understand your expenses vs income and give yourself room for reserves before committing to any investment. A single oversight could make the difference between success and failure in your real estate portfolio.

—
Are you the first one to invest in your family, or the first one to try a new type of investment?
Learn why placing capital in real estate should be part of your investment journey.

We Educate the First Gen Investors so you can grow your hard-earned money and give to the people and causes that are important to you.

If this sounds like you, book a call so that I can help you get started or continue building your First Gen Foundations.

Being bad at something is easy. Being successful is inconvenient

Good athletes that are born with God-given talent, speed, and size…

But the best ones have to work at it... a lot. 

Good marriages have two people who get along well, love each other, and commit to one another…

But the best ones have to work at it...a lot. 

Good businesses have systems and employees that are aligned with a powerful vision with a greater cause than just money…

But the best ones have to work at it...a lot.

None of these professions, relationships, and business entities, if they want to sustain greatness, can live in a world of convenience.

Thomas Edison once said:

“I never did anything worth doing entirely by accident. . . Almost none of my inventions came about totally by accident. They were achieved by having trained myself to endure and tolerate hard work.”

The athlete “inconveniences” themself by waking up earlier to train, do another drill, or watch another video of how to beat their opponent.

The spouse “inconveniences” themselves by doing one more chore in the house so their spouse can rest, watch a movie that they don’t want to because they want to bless their partner or go to the pharmacy late at night if needed. 

The business “inconveniences” itself by spending more money on R and D, adding more value to its employees, and if so inclined, making sure supporting charities to improve the community it is in is part of its budget. 

Living a life of convenience can bring a life of, mediocracy and regret. 
This is not to be confused with contentment and joy (that is for a later post). 

Find things that are worth being “inconvenienced” for.

In the end, you will know that those tasks that you find “inconvenient” are not that at all…

You just found something or someone that is worth the fight…and that is the best place to be.  

—
Are you the first one to invest in your family, or the first one to try a new type of investment?

Learn why placing capital in real estate is an important part of their investment journey.

We Educate the First Gen Investors so they can grow their hard-earned money and give to the people and causes that are important to them.

If this sounds like you, book a call so that I can help you get started or continue building your First Gen Foundations. 

Confessions of a First Gen Investor

Today, we want to talk about Robert (name has been changed to protect the innocent).

Robert has a good job in construction. He is near retirement and used to own some mid-size multifamily assets.

He sold the assets and made some money, but he didn't love the amount of work it took to keep the assets doing well.

He took his money, stuck it in the stock market, and tried his hand at other entrepreneurial ventures.

Some went well...others didn't.

He understood how businesses worked…
He just didn't want to do so much work.

Enter real estate investing as a passive investor.

After meeting with us and setting up a plan, Robert now has a few streams of income from his real estate dealings.

He lends out money as a private note lender.

He is able to fund other people's projects while owning the first lien on the property for people who have a track record of successful flips in great metro areas.

He is also in a syndication which is paying him cash flow quarterly AND growing in an appreciating asset.

Robert’s issue was that he wanted to gain truly passive income.

After a few discussions about his goals, risk tolerance, and helping him understand how we can work together, he placed his first investment and it was odd to the races with the next few.

The important thing here is to understand that passive income IS possible. There are a lot of people with different backgrounds who have taken the steps needed to move into the real estate investing space.

What is holding you back?
—
Are you the first one to invest in your family, or the first one to try a new type of investment?
Learn why placing capital in real estate should be part of your investment journey.

We Educate the First Gen Investors so you can grow your hard-earned money and give to the people and causes that are important to you.

If this sounds like you, book a call so that I can help you get started or continue building your First Gen Foundations.

Hands on 10 and 2…

Comfort is a good thing, but it is not always the best thing, especially as a real estate investor.

Risk is part of the calculation when you invest. The higher the risk, the higher the reward.

One risk you should keep an eye on is…

Your property's income…

Sounds obvious, right?

When your properties are stabilized, it is easy to take your foot off of the pedal. This manifests itself by:

-Not having regular calls with your property manager.
-Not checking your monthly financial statements.
-Not looking for effective ways of increasing revenue.
-Not keeping an eye on expenses and looking for efficiencies.

I was recently going over my statements for one of our duplexes (I do this every month) and realized that we had lower than-normal income.

Was it because we have a tenant who is having issues paying on time?

Were there some repairs I wasn't made aware of?

Is there anything that needs to be addressed with the property management company?

We have enough to cover the expenses, and it wasn't equivalent to only one side paying…

Solution?

I reached out to the property manager to make sure everything was ok.

We had an electrical issue that needed addressing (I was aware of this), and one tenant was late with ½ of their rent. They will be paying it this week.

Lessons learned…

Systems are important
I don't check the monthly statements randomly. I have a day that I go over all of our property's financials. This helps me be able to compare and contrast across all projects. I also have less of a chance of forgetting to do it, because it is scheduled.

Growing right
The ability to address these issues with people now will give me the ability to do it later. Our PM knows we are keeping an eye on the properties and their performance. They are quick to answer and that is why we like working with them.

There is a tendency to coast when the properties are doing well. True, you will spend less time on them, but it doesn't mean you can take your hand off of the steering wheel.

Ultimately, it is your investment. You should know what is going on with it so you can take down the smoothest road possible.

What are your thoughts about how to stay engaged with a property that is doing well?

—

Are you the first one to invest in your family, or the first one to try a new type of investment?
Learn why placing capital in real estate should be part of your investment journey.

We Educate the First Gen Investors so you can grow your hard-earned money and give to the people and causes that are important to you.

If this sounds like you, book a call so that I can help you get started or continue building your First Gen Foundations.

Don’t fix your units!

Fixing all of the units when you take over an apartment complex can be the wrong approach in some instances.

Before you yell at me, hear me out. 

There are a lot of moving parts when taking over a new asset.

A lot of people jump in and want to make massive changes immediately and that might not always be the best plan.

If you have an asset that has an acceptable occupancy rate, it can be a good idea to take a few months to assess your new project.

Learn the ins and outs of the property.

Learn who the tenants are.

See how your estimates measure up against your actuals.

If you run into the project guns blazing, you might

-Run past a lot of ways to save money
-Spend more money on renovations you thought.
-Spend money on renovations you won't get the return on.
-Unexpected expenses (they will come) can show up.

Don't take it for granted that you might be better off letting the property breathe before you start spending a lot of your CapEx budget.

Conventional wisdom says to get started as soon as possible on your turns and that might be the business plan if you have a big amount of vacancies…

Remember, this is one of many possibilities when you take over a new property.

What are your thoughts on this?

Let us know in the comments!

—
Are you the first one to invest in your family, or the first one to try a new type of investment?

Learn why placing capital in real estate should be part of your investment journey.

We Educate the First Gen Investors so you can grow your hard-earned money and give to the people and causes that are important to you.


𝗜𝘀 𝘁𝗵𝗶𝘀 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗲𝘅𝗽𝗲𝗻𝘀𝗶𝘃𝗲 𝘁𝗼𝗶𝗹𝗲𝘁 𝗶𝗻 𝘁𝗵𝗲 𝘄𝗼𝗿𝗹𝗱?

Why would I bring this up?

Maybe because I never grew up and love toilet humor, but this single toilet in San Francisco cost $𝟭.𝟳 𝗺𝗶𝗹𝗹𝗶𝗼𝗻!

You read that right.

This single toilet in the Noe Valley neighborhood cost as much as a luxury home in most of the country.

I remember coming across this story a while ago (link in the comments)...

It took them 2 years...They finally finished.

The saving grace for the tax payer was a donation from Public Restroom Company for the parkgoers.

"The initial "rough estimate" for the custom-designed and custom-built restroom at Noe Valley Town Square was $1.7 million with a two-year timeline, according to the city agency."

The majority of the costs were spent on design, engineering and permits. The bureaucracy that the cities have created, in this case San Francisco make this one of the most expensive pieces of real estate in the country. 

Because of the donations, the cost to the taxpayers ended up being $200k.

What are your thoughts on this?



𝗔𝗿𝗲 𝘆𝗼𝘂 𝗺𝗮𝗸𝗶𝗻𝗴 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗼𝗳 𝘆𝗼𝘂𝗿 𝗵𝗼𝗺𝗲'𝘀 𝗲𝗾𝘂𝗶𝘁𝘆?

Unlocking the potential of your home's equity can be a game-changer in your financial strategy.

How do you know if pulling out a Home Equity Line of Credit (HELOC) is the right move for you?

Enter the 𝗥𝗲𝘁𝘂𝗿𝗻 𝗢𝗻 𝗘𝗾𝘂𝗶𝘁𝘆 (𝗥𝗢𝗘) formula—a powerful tool that helps you gauge the profitability of leveraging your property's equity.

ROE = Net Income / Equity

𝗛𝗲𝗿𝗲'𝘀 𝗵𝗼𝘄 𝗶𝘁 𝘄𝗼𝗿𝗸𝘀:
-Calculate your property's net income: This includes rental income, minus expenses such as mortgage payments, property taxes, insurance, and maintenance costs.

-Determine your property's equity: This is the current market value of your property minus any outstanding mortgage balance or liens.

-Plug the numbers into the ROE formula: Divide your net income by your equity.

A high ROE indicates that your property is generating a significant return relative to its equity. This means you're effectively utilizing your property's value to generate income.

𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝗮𝗻 𝗥𝗢𝗘 𝗼𝗳 𝟭𝟯% 𝗺𝗲𝗮𝗻?
An ROE of 13% means that a property generates a 13% annual return on the property’s equity.

𝗜𝘀 𝗵𝗶𝗴𝗵 𝗼𝗿 𝗹𝗼𝘄 𝗥𝗢𝗘 𝗴𝗼𝗼𝗱?
A high ROE is better than a low one. However, as a property is paid off over time, its return on equity will inevitably decrease as equity in the property increases.

A low ROE means you might consider taking a HELOC and redeploying the capital to create more favorable returns for your investment dollars.

𝗪𝗵𝗮𝘁 𝗔𝗿𝗲 𝘁𝗵𝗲 𝗥𝗢𝗘 𝗖𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗶𝗼𝗻'𝘀 𝗟𝗶𝗺𝗶𝘁𝗮𝘁𝗶𝗼𝗻𝘀?
One of the big issues with the ROE formula is that future property appreciation is not factored in.

Even though cash flow is often the most crucial aspect of an investment property, not all investors use it as their main measure of success.

If you are considering a “value-add" as your business plan,  it could be more crucial to consider the property's appreciation over time.

You might prefer to hold the property for five years, then sell it to benefit from the accelerated gains, as opposed to owning it for many years, making the ROE calculation less useful.

𝗦𝗼, 𝗵𝗼𝘄 𝗱𝗼𝗲𝘀 𝗥𝗢𝗘 𝗵𝗲𝗹𝗽 𝘆𝗼𝘂 𝗱𝗲𝗰𝗶𝗱𝗲 𝗶𝗳 𝗮 𝗛𝗘𝗟𝗢𝗖 𝗶𝘀 𝗮 𝘀𝗺𝗮𝗿𝘁 𝗺𝗼𝘃𝗲?
There are other factors that help you understand if you could make more money by using the funds from a HELOC for investments or other financial opportunities such as:
 
-What are your goals?
-What’s your risk profile?
-Your property preference type?
-What’s the performance of your entire rental portfolio?
-What’s liquidity for buying and operating more rentals?
-How far are you from retirement?

It's important to consider the risks involved, including market fluctuations, rental vacancies, and unexpected expenses. Do your homework before you make the decision about leveraging your home's equity.

Ready to explore the possibilities of maximizing your home's equity?

Let's chat if you want to 

Tips if you travel 

I travel quite a bit for my businesses. Whether W-2 or my real estate ventures, I find myself in an airport more and more.
 
Here are some tips that I have found helpful.

Pack the clothes you need, plus one day (I recently learned, some people do more than one day). You never know if something spills on a shirt and you need to change.

Pack the day before you leave. Things will always come up on the day of travel and you don't want to rush it.

Check in early. Don't wait until the day of your flight. You will have a harder time picking your seat.

Bring a book, your laptop and a jacket on the flight. A book to read, your laptop to work and a jacket to keep you warm...or you can take it off if you get hot.

Noise cancelling headphones are a must. They changed my travel experience. I don't leave home without them.

Wear shoes that you can easily take off and put back on in security (this is if you don't have TSA Pre-check or Clear which are clutch).

It doesn't hurt to have a snack on you. Some airlines will give you the traditional peanuts or     sometimes there is a national shutdown of airports (there is not much you can do there).

The most important tip is to be patient. Whether the crews are checking on an issue, or there is a baby crying, remember that everyone just wants to get to their definition safely.

What do you do to minimize stress when you travel?

Do you have any tips to share?



$100,000 per year for college?

I came across this article (link in comments) and it surprised me a little to hear that some universities are charging over $90,000 per year!

These are schools like USC, Harvey Mudd College, Brown, and Dartmouth to name a few.

The article points out that this is the sticker price and that through endowments and financial aid, the cost to the student and their families can be manageable.

“Lower-income families may be required to pay just 10% of the advertised rate and, for some, attending a selective private college can turn out to be cheaper than a state institution.”

One college says that 60% of the attendees get financial aid, and end up paying only one-third of their $92,000 tuition. 

I have heard the argument that financial aid, although a benefit to lower-income families, has increased demand for universities (now more people can “afford” to attend) which drives up the price.

How do you keep the kids who cannot afford these prices going to school?

When I see these numbers, I think of the new parents. One stat in the article mentions a wealthy family could expect to pay $1,000,000 for three children to get a college degree.

The subject of debt is also approached. Many people, who receive financial aid and other assistance still end up with tens, or even hundreds of thousands of dollars of student loan debt.

A lot of them don’t end up in careers tied to their degrees or get degrees in jobs that don’t have the prospect of making them enough money to live in today’s America and pay off their loans.

This puts people in a big hole when they are starting out their lives, but with these numbers continuing to climb, those holes will seem to only get deeper and deeper.

The system is broken and we have all heard of mass debt elimination, free college tuition, service field repayment concessions, and other solutions; each with its own set of issues.

I don’t have the solution, but I was a little surprised and wanted to through a little gas into the fire today…

Did you attend a 4-year university? Was it worth it?

Thoughts?


—
Are you the first one to invest in your family, or the first one to try a new type of investment?
Learn why placing capital in real estate should be part of your investment journey.

We Educate the First Gen Investors so you can grow your hard-earned money and give to the people and causes that are important to you.

If this sounds like you, book a call so that I can help you get started or continue building your First Gen Foundations.

𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗥𝗶𝘀𝗸 𝗮𝗻𝗱 𝗥𝗲𝘄𝗮𝗿𝗱𝘀 𝗶𝗻 𝗥𝗲𝗮𝗹 𝗘𝘀𝘁𝗮𝘁𝗲 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴

Real estate investing offers a pathway to building wealth, but it's essential to grasp the dynamics of risk and reward before diving in.

What constitutes a risk or reward can vary greatly from person to person. Let's explore these concepts further.

𝗔𝗽𝗽𝗲𝘁𝗶𝘁𝗲 𝗳𝗼𝗿 𝗥𝗶𝘀𝗸

Everyone's tolerance for risk differs, and understanding your comfort level is crucial before investing.

Is losing $100 a significant concern for you if it could potentially yield $1,000 in returns?

Understanding your risk appetite is fundamental when venturing into investments.

𝗥𝗲𝘄𝗮𝗿𝗱𝘀

-Steady Income-
One of the most appealing aspects of real estate is its potential to generate a consistent stream of income through rental payments.

Imagine the financial freedom that comes with an additional source of income from your real estate holdings.

-Capital Appreciation-
Property values historically appreciate over time, offering a pathway to wealth accumulation.

Whether through natural appreciation or forced appreciation via property enhancements, real estate can be a vehicle for long-term wealth growth.

-Tax Benefits-
Real estate investors enjoy various tax deductions, including mortgage interest, property taxes, and depreciation.

These incentives are designed to reward investors for their contribution to the economy.

Consult a tax professional to maximize your tax benefits and optimize your investment strategy.

-Relationships-
Beyond financial gains, real estate offers the opportunity to build meaningful relationships within the community.

Whether through networking events or mentorship programs, the real estate community is known for its camaraderie and support.

𝗥𝗶𝘀𝗸𝘀

-Market Fluctuations-
Real estate values can fluctuate based on market conditions, impacting investment returns.

Conduct thorough market research to mitigate risks associated with market volatility.

-Tenant Turnover-
Finding and retaining quality tenants can be challenging, leading to potential income loss during vacancies.

Implement effective tenant retention strategies to minimize turnover risks.

-Unexpected Expenses-
Real estate ownership entails unforeseen expenses such as repairs, maintenance, and property taxes.

Building contingency reserves and having a robust plan in place can mitigate the impact of unexpected expenses on your investment portfolio.

—
Are you the first one to invest in your family, or the first one to try a new type of investment?

Learn why placing capital in real estate should be part of your investment journey.

We 𝗲𝗱𝘂𝗰𝗮𝘁𝗲 the First Gen Investors so you can 𝗴𝗿𝗼𝘄 your hard-earned money and 𝗴𝗶𝘃𝗲 to the people and causes that are important to you.

If this sounds like you, book a call so that I can help you get started or continue building your First Gen Foundations.


True stories of a First Gen Investor...

I will change the names to protect the innocent.

One of our investors is an immigrant from the Caribbean.

We'll call him John.

John came to the U.S. He was a small business owner and did well. He was able to purchase a home, put his kids through college, and even set himself up with a nice retirement.

He is financially savvy and has set up his family to inherit what he and his wife have built. One thing he had never done was invest in real estate. Why?

He didn't understand enough about it. He didn't have someone he trusted. He was a traditional investor (stocks, bonds, precious metals).

As he heard what we were doing in helping First Gen Investors learn about investing in real estate, we had several conversations about syndications. 

Then he did something that many won't do...He went out and started asking other people around him if they had heard about real estate syndications. He wanted to make sure what we were talking about had merit.

We continued to educate people about investing in real estate, even if it is not with us.

Out of the blue, he called me one day and asked to invest in a deal that we had coming up. We had a 30-minute call about the deal and he signed up to the investment.

In the end, he invested $30k...He wanted to do a test run on syndications...and on First Gen Foundations (our company). I applaud him for that.

There are people who invest and things just don't go as planned. He has experienced this too. This is one of the reasons he took a while to come onboard with us. 

John's experience is not always the case for investors. I am not going into all of the hard work, sweat and tears he and his family have endured to grow their wealth. 

I love what he did in researching the topic, asking around and taking the steps that he needed to so that he could learn and grow the wealth he will leave his grandchildren. 

The deal is solid. He is getting strong returns. His only regret is not investing more. I told him there will be other deals.

He is a First Gen Investor because he invested in something that no one else in his family had done before him.

We are proud to know him and proud to help him build his First Gen Foundations!

7 Ways to Pick the Right Market

The importance of location is extremely high in Real Estate.

You can find a great house, in great shape in the wrong neighborhood and it not be the right buy.

You can find a messed-up house in the right neighborhood and with the correct planning, it can be a great buy.

Real Estate is LOCAL…

Our criteria is defined by 7 factors:

1️⃣ Population Growth – Positive, Negative, Flat?
2️⃣ Job Growth- Variety of Industries
3️⃣ Income Growth- Are salaries going up?
4️⃣ Local Rental Growth- How does this fare against the rest of the MSA?
5️⃣ Cost of Living- Is the average income leaving enough room for people to spend more or less on housing?
6️⃣ Home Value Growth- What is the trajectory of the homes in the market? Positive, negative, flat?
7️⃣ Crime Rates- This is tough to look at, but it is important to understand what we are getting ourselves, our property managers, and tenants into.

Once the market passes muster, we begin to look at neighborhoods and focus on:

-Current supply of rental units vs. current demand
-Occupancy rates- Year over Year
-Annual rent increases – Year over year
-Projected annual rent growth
-Average days on the market

The analysis is not quick, but when we find a market we like, we look for properties we like. We believe in a simple fact.

-We take of our properties.
-We take care of our tenants.
-We take care of our managers.
-They take care of our profits.

By doing this, we can help you build your First Gen Foundations.

Do you want to learn more about how to get started investing in real estate?

—
Are you the first one to invest in your family, or the first one to try a new type of investment?
Learn why placing capital in real estate should be part of your investment journey.

We Educate the First Gen Investors so you can grow your hard-earned money and give to the people and causes that are important to you.

If this sounds like you, book a call so that I can help you get started or continue building your First Gen Foundations.

Double your money!

Have you heard of The Rule of 72?

This is a financial shortcut to quickly estimate the number of periods it will take the investment to double in value.

If you can average 10% per year (compounded), it will take you 7.2 years to double your money.

The time to double your investment can be shortened if you can beat 10% returns. It will also be longer if your returns are less than 10%.

This chart shows other variations of The Rule of 72 such as The Rule of 70 and The Rule of 69.3.

If you start with $50,000 at 10% and leave it in the investment vehicle, it will turn into $100,000 in 7.2 years.

That same $50,000 at 9% will be doubled in 8 years and if you can get an 11% return on that, you will have $100,000 in 6.5 years. 

Do that a few times and the numbers get even better. It is important that you understand your investment philosophy and risk tolerance, but this is a solid way for generational wealth creation. 

Your original $50k can turn into $100k in 7.2 years, your $100k turns into $200k in another 7.2 years, etc.

If you do the same procedure over 36 years, your original $50k can become $1.6mm! This is if you ALWAYS re-invest your returns and maintain the 10% return over 36 years.

Time in the market is one of the biggest factors that can help you grow your net worth. 

The Rule of 72 helps you see that with quick math. 

What is your type?

When investing, there are two types of investors.

Accredited Investors and Non-Accredited Investors

We will focus on what this means regarding real estate syndications.

Accredited Investors can invest in 506(C) offerings. Accredited Investors must have a net worth of over $1 million or have an income of $200k per year ($300k with a spouse) over the last two years and a reasonable expectation to make the same amount of money in the future.

Syndicators will often use a third-party verification system to ensure the investor is accredited.

The Accredited Investor has access to unique and restricted investments, high returns, and increased diversification. They are assumed to be more familiar with investing and can therefore accept a higher risk without a prior relationship between them and a sponsor.

The Non-accredited investor has a more limited ability to invest. Because their net worth or buying power is lower, they are assumed to have less ability to absorb risk/loss and will need to establish an existing relationship with a sponsor who should be confident they are aware of the risk, prior to offering an investment opportunity to them.

 Non-Accredted Investors can only invest in 506(B) offerings. 

Understanding what type of investor is important, because you will be able to shop the proper types of deals. When dealing with syndications, the operators and capital raisers have limits to who can invest in certain types of offerings.

Do you know what type of investor you are?

As a passive investor (experienced or not), it is important to understand what you may or may not be able to invest in. The reality is that there are opportunities for both.

There are discussions about raising the lower limit of the net worth requirement to a higher level as well as an exam that would be administered by FINRA so that they can confirm that an investor knows what they are getting into. This is testing the investor's level of sophistication. 

Two laws named; “The Equal Opportunity for All Investors Act” and the “Accredited Investor Definiton Act” are already in the Senate waiting for approval.

Some who have been accredited will no longer have that status, due to the net worth requirement, but some who have not previously been able to meet the net worth requirement will be able to take an exam and gain the accredited investor 

There are many in Congress and the SEC who want to change the rules so stay tuned!

Do you think these changes will happen soon?
How will this affect your investment strategy?
—
Are you the first one to invest in your family, or the first one to try a new type of investment?
Learn why placing capital in real estate should be part of your investment journey.

We Educate the First Gen Investors so you can grow your hard-earned money and give to the people and causes that are important to you.

If this sounds like you, book a call so that I can help you get started or continue building your First Gen Foundations.

𝗔𝗿𝗲 𝘆𝗼𝘂 𝘀𝗶𝘁𝘁𝗶𝗻𝗴 𝗼𝗻 𝘆𝗼𝘂𝗿 𝗴𝗼𝗹𝗱𝗲𝗻 𝗲𝗴𝗴?

Your home is more than just a place to live—it's a valuable asset that can serve as a source of financial security and opportunity.

The majority of America's net worth is caught up in the equity in their homes (primary or investment properties). 

There are dangers in using this money without having a plan of how it will be used or how to pay it back.

Done correctly, we have seen people create substantial portfolios using the equity in their homes.

By unlocking the equity in your home, you gain access to a range of financial options that can help you achieve your goals.

Here are some strategies to consider:

𝗛𝗼𝗺𝗲 𝗘𝗾𝘂𝗶𝘁𝘆 𝗟𝗼𝗮𝗻 𝗼𝗿 𝗟𝗶𝗻𝗲 𝗼𝗳 𝗖𝗿𝗲𝗱𝗶𝘁 (𝗛𝗘𝗟𝗢𝗖)
One of the most common ways to access your home's equity is through a home equity loan or line of credit. 

This allows you to borrow against the value of your home and use the funds for various purposes, including home improvements, debt consolidation, or even investing in other properties.

𝗖𝗮𝘀𝗵-𝗢𝘂𝘁 𝗥𝗲𝗳𝗶𝗻𝗮𝗻𝗰𝗲
Another option is to refinance your existing mortgage and take out a larger loan amount than what you currently owe.

The difference between the new loan amount and your existing mortgage balance is then paid out to you in cash, providing you with a lump sum of money to use as you see fit.


𝗦𝗲𝗹𝗹 𝗮𝗻𝗱 𝗗𝗼𝘄𝗻𝘀𝗶𝘇𝗲
If you have a significant amount of equity in your home and are looking to free up cash for retirement or other purposes, downsizing to a smaller, less expensive property could be a viable option.

If you have a favorable interest rate, this might not make sense, as your payment will be higher with today’s interest rates..

𝗥𝗲𝗻𝘁 𝗢𝘂𝘁 𝗮 𝗣𝗼𝗿𝘁𝗶𝗼𝗻 𝗼𝗳 𝗬𝗼𝘂𝗿 𝗛𝗼𝗺𝗲 (𝗛𝗼𝘂𝘀𝗲-𝗵𝗮𝗰𝗸𝗶𝗻𝗴):
If you have extra space in your home, such as a basement apartment or spare bedroom, consider renting it out to generate additional income.

This not only helps you unlock the equity in your home but also provides you with a steady stream of rental income that can help offset your mortgage payments.

At 𝗙𝗶𝗿𝘀𝘁 𝗚𝗲𝗻 𝗙𝗼𝘂𝗻𝗱𝗮𝘁𝗶𝗼𝗻𝘀, we have developed a model that can help you understand how an investment using your home’s equity could be used on an investment.

Comment EQUITY if you would like to chat about this a little more.

Don't let the value of your home sit idle—take action today!
—
Are you the first one to invest in your family, or the first one to try a new type of investment?

Learn why placing capital in real estate should be part of your investment journey.

We 𝗲𝗱𝘂𝗰𝗮𝘁𝗲 the First Gen Investors so you can 𝗴𝗿𝗼𝘄 your hard-earned money and 𝗴𝗶𝘃𝗲 to the people and causes that are important to you.

If this sounds like you, book a call so that I can help you get started or continue building your First Gen Foundations!


Did you hit your numbers?

When you are doing something hard, you need to measure what you are doing.

Not because you have to prove you got there, but you want to remember where you came from.

Stretch goals are important.
Steps up are important.

The problem is...you might not make them all of the time.

The question becomes, "What do you do now?"

If you have been implementing steps to get to your new heights, you will be able to see some version of improvement.

Do you go back to your original starting point?

No!

The funny thing is, if that is not good enough anymore for you...

Congratulations! You have moved your baseline!

Dust yourself off, and keep reaching for the goal...

and when you get there...

You might want to do it again (you might also want to take a breath).

In any case, I had this happen to me last week...I dusted myself off and got back at it.

Have you recently had to dust yourself off after not hitting a target?

If so, how did you bounce back? Maybe you are not there yet ...

Let us know!

—
Are you the first one to invest in your family, or the first one to try a new type of investment?
Learn why placing capital in real estate should be part of your investment journey.

We Educate the First Gen Investors so you can grow your hard-earned money and give to the people and causes that are important to you.

If this sounds like you, book a call so that I can help you get started or continue building your First Gen Foundations.

Diversity of thought...Why contrarians are good...

I recently had an issue where not looking for different viewpoints potentially hurt me.

I spent a good amount of time on marketing and was speaking to someone who agrees with me the majority of the time.

I was not seeking validation, but I guess I liked that he gave it to me. He thought what I was doing was great. I value his opinion, as he is highly respected in his field.

My mistake was not looking for more feedback. Different feedback.

He was not the only person I should be speaking to. I needed to have found my contrarian.

I didn't realize one area of my plan could ruffle some feathers (important feathers).

Then the problem hit me like a brick...

It is important to have people around you who ask the tough questions. They make you think twice and three times about HOW you are doing something and IF you should be doing it at all. 

I like to think I am open to this (contrarian thinking), but subconsciously, on this project, I stopped looking for the contrarian thought and I am now feeling it. 

I don't mean that we should work with negative people, but it is important to have people around you who genuinely want to see you succeed AND have the license to push back on your ideas, processes, and goals.

It put me in a little funk, but I was glad it came up, and I am happy to be back on the search for people who make me work harder to be better.

Do you have someone in your life who you trust enough to critique you? Have you thanked them lately?


What are real estate syndications all about?

Many people love the THOUGHT of owning investment properties. What they don’t realize is…It can take a lot of work to manage properties.

Some things that take tons of time to deal with are:

-Finding the property
-Finding a way to fund the property
-Close on the property
-Worry about taxes
-Worry about Insurance
-Tenant screening
-Evictions
-Keeping the books

This is far from passive…

One of the ways to eliminate the “managing of rental properties” is through syndications.

This article peels back the mystery of what real estate syndications are.

They are passive investments that still let you benefit from:

-Cash Flow
-Appreciation
-Equity
-Tax advantages

You must find the right sponsor and understand the risks of investing, but this may be right for you if you don’t want to deal with:

-Broken toilets
-Loud tenants
-Bookkeeping.
-Property Managers

Take a look at the article and let us know your thoughts!

https://lnkd.in/dq4ztCnp

If you have questions about real estate syndications, reach out to us so that we can discuss your options in this great wealth creation vehicle.
—
Are you the first one to invest in your family, or the first one to try a new type of investment?
Learn why placing capital in real estate is an important part of their investment journey.

We Educate the First Gen Investors so they can Grow their hard-earned money and Give to the people and causes that are important to them.

If this sounds like you, book a call so that I can help you get started or continue building your First Gen Foundations. 

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