Rob’s Words Of Wisdom

Search

14
Nov, 2024

Why Invest In Residential Property Instead Of Commercial?

 

A guest on Rob Rowsell’s ATL Inner Circle Community call asked why Rob made his choice in a “residential or commercial investment” quandary. In short, residential units were a proven commodity in this space. The bank would not loan Rob and his investors money to renovate and set up a commercial business on the property.

Residential or Commercial Investment - Real Estate InvestingResidential or Commercial Investment? You May Not Have A Choice!

Dave chimed in to ask about a property Rob detailed earlier. He asked why Rob chose to develop multifamily residential units, rather than the commercial business that previously operated there. What drove that decision? Turns out it was the bank.

Rob initially planned on renovating the space for a new commercial endeavor. However, the lending institution wouldn’t go for it. Despite plenty of research on what Rob and his team could charge for the business space, the previous owners never make the most of it. In fact, those investors had left the commercial space unfinished and inoperable, content with income from the second floor apartments. The previous history of underachievement scared the bank out of another commercial investment.

Rob and his investment team went back to the drawing board. They crunched the numbers on remodeling the downstairs commercial space into new multifamily dwellings. This time, the bank agreed to the loan, so the group could move forward. Despite being deep into a PSA, the new plan will actually generate more profits. Win-win!

Join Our Multifamily Investing Community Today

Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

 

7
Nov, 2024

How Much Should I Save In My Emergency Fund Security Bucket?

 

What is your emergency fund savings number? How much should you store in your Wealth Security Bucket to *really* be prepared for financial hardship? Rob Rowsell, successful multifamily investor, has the answers. It all comes down to what number you and your family can agree on to fund your lifestyle in the event of a catastrophic emergency, such as job loss, illness, or natural disasters.

Emergency Fund Savings AccountEmergency Fund Savings Number – How Much Should I Save?

Hans responded to Rob’s request for questions by asking about the “Security Bucket” concept. What kind of account does Rob recommend, and perhaps more importantly, what is the magic emergency fund savings number?

Rob previously mentioned he has two years of income saved up in his security bucket.  What amount do most experts recommend, though? Simply put, Rob says it’s an amount that you and your spouse can agree upon, assuming you are married. Money is a point of contention in most marriages, so you will likely need to compromise. Although he is exaggerating, Rob says three months of income is fine by him, but his wife Claudia wants ten years! Obviously, their two year cushion compromise resulted from some serious haggling.

Many financial advisors recommend saving up six months of income as an emergency fund savings number. Your mileage may vary, depending on your own circumstances and risk factor. For instance, younger investors likely have a lot more runway left in life to take financial risks. Thus, they will have a lot more time to refill their security bucket when disaster strikes. Rob recommends the book “The Psychology of Money” for more in depth reading on saving for potential calamity.

Join Our Multifamily Investing Community Today

Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

 

31
Oct, 2024

Why Should You Add An ADU To Your Property Investment?

 

Successful multifamily property investor Rob Rowsell explains why an ADU (Accessory Dwelling Unit) might be a good idea for real estate investors to build on to their investments. Specifically, are you buying a property in order to to resell it later? Then an additional dwelling space (aka granny flat, mother-in-law suite, guest house unit) will increase the resale value. Is it always a good investment, though?

Is an ADU such as this backyard guest house a good investment addition?Should You Build An ADU For Your Property Investment?

Our friend JR asked the question about Rob’s rationale for adding an ADU to a property. What was his timeline for a return on that investment?

Starting at the beginning, Rob uses the example of a California real estate investor adding an ADU to their new purchase. On the surface, this does not add up to a good investment. This new structure will likely not increase your cash flow.

Consider all the expenses and red tape involved in building a habitable, sturdy, waterproof building. It must be up to code, well insulated, and comfortable enough for a guest to stay in. Perhaps your tenant might use it as a man cave or workshop. How much upkeep expense will this add to your plate?

On the other hand, you stand to gain a considerable amount in resale value. Consult with your investors, and make sure that they also see future benefits. Then, make sure they pitch in their share, since they will also reap the benefits when it’s time to sell the property.

Rob shares an example of a structure that he plans to pay his home’s mortgage with. A tenant off the street will rent it as living space. Eventually, Rob plans to use it to park his motor home and house his toys. He will also install a lift for automotive repair.

Join Our Multifamily Investing Community Today

Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

24
Oct, 2024

10 Wealth Plays To Win The Money Game Forever

Need some advanced investing tips? Learn 10 ways to win at money FOREVER from successful multifamily real estate investor Rob Rowsell. Rob has learned from years of both good and bad choices how to properly invest his wealth and accrue passive residual income – the safest choice for a happy, healthy retirement.

Advanced Investing - Growing WealthAdvanced Investing Tips: 10 Winning Money Plays

Rob starts off this clip by explaining some of his best advanced investing tips. Specifically, he wants you to win the money game forever with these ten winning plays!

  1. Make the decision to be wealthy. Only you know what you’re capable of, and how motivated you are. Take inventory before deciding to grow wealth.
  2. Invest in yourself. Take time to increase both your earning ability and your financial sophistication level. Learn all you can about your Active Income job, as well as financial strategies that earn Passive and Horizontal Income.
  3. It’s not about income. It’s about surplus invested wisely over time. Remember this formula: Income – Expenses = Surplus.
  4. Harness Time. Compound interest is magic over time.
  5. Build an extraordinary company by:
    1. Intelligently investing Active Income
    2. Pay yourself tax efficiently
    3. Deliberately use Active Income to contribute to your Net Worth.
    4. Grow your company’s value. This unrealized gain is extremely tax efficient!
    5. Consider going intentionally Passive. This transitions your company into the ultimate PRI opportunity through Strategic Depth and succession plans.
  6. Bet on yourself. When you invest in your Advantages and not your weaknesses, you tilt the playing field in your favor.
  7. Avoid foolish capital losses! Trust your wealth plan. You do have one, right?
  8. Erect protective legal barriers and create sound succession plans. When storms strike, it’s too late to build your shelter, so be prepared.
  9. Build a solid wealth team! You wouldn’t run a company by yourself, so why run your Net Worth alone? Surround yourself with people more knowledgeable than you, from Financial Advisors to CPAs to Business Coaches. However, you must stay in charge at the end of the day and build Strategic Depth.
  10. Ultimately, wealth is a mental AND emotional game. To win, you must keep upgrading your Wealth Operating System.

Join Our Multifamily Investing Community Today

Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

17
Oct, 2024

Top 5 Expenses That Are DRAINING Your Wealth Bucket

These wealth draining expenses are essentially holes in your investing income bucket! Multifamily investing success Rob Rowsell advises how YOU can cut expenses and keep filling your wealth bucket!

Wealth Draining Expenses - Money Going Down the DrainFive Wealth Draining Expenses You Should Know About!

Rob lists his top five wealth draining expenses in this video. Here they are, in order:

Expense #1: Ignorance

This may be the easiest trap to fall into for investors. When you have succeeded in one field with minimal effort, you likely will become overconfident. Remember, just because other past endeavors came easy to you, that does not mean that multifamily real estate investing will. This path is a lifelong pursuit, and you will find it to be both complex and competitive.

Expense #2: Taxes

Next to ignorance, nothing can cost you more as an investor than taxes can. “Tax Drag” as Rob refers to it as, can really poke holes in your wealth bucket. Conversely, you can plug those holes legally with the help of your accountant. When you employ the strategies your CPA recommends, the money you save in taxes will count as a big income stream! Remember, the US government has placed many tax incentives in place for real estate investors. Maximizing your wealth depends on finding and employing those incentives.

More Wealth Draining Expenses – Expense #3: Vitality Number

How could your vitality number be one of these wealth draining expenses? If your vitality number (cost of living) is too large, you are flushing cash down the drain. Your parents told you to live within your means, but Rob says live within your values! The alternative is just vanity. Get out of the habit of spending too much today, so you will have a comfortable lifestyle after you retire.

Expense #4: Fee Drag

Accountants, financial advisors, and coaches are crucial to our wealth building journey. However, it is important to periodically audit their services. Are you paying your wealth strategy team too much in fees for what they bring to the table? Keep your eye on the ball, because what you are paying them in fees could be taking a huge chunk out of your wealth bucket. Rob’s tip: insist on meeting with your financial team members via your own Zoom account. Record every meeting, and make sure you integrate the Fireflies AI note taking service with your Zoom app. This way, every piece of advice they give you is both on video and in writing, saved in folders for you to review later.

Expense #5: Inflation

In today’s economy, inflation is on everyone’s minds. The cost of goods and services has gone through the roof lately. With that said, make sure you add 10% to your Vitality Number. Don’t get caught lacking when it’s time to cash out and retire, because this trend will likely continue.

Don’t Fall To Wealth Draining Expenses! Join Our Multifamily Real Estate Investing Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Next Entries Previous Entries