Now that you’ve learned how to stack up cash, you’ve got to learn how to invest your assets! Investing for maximum return means building assets and then repurposing them over time. Invest wisely and watch your wealth grow!

Investing For Maximum Return – Building Assets and Repurposing Them

In Act 1 of our Money Game series, Rob detailed strategies for maximizing our active income earnings. Act 2 is all about investing for maximum return. Specifically, we are buying and building assets that will return us cash.

When it comes to investments, Rob describes the assets that return compound interest as the “8th Wonder of the World”. Apologies to Andre the Giant. The concept of the “doubling clock” comes up. When you invest in assets that accrue compound interest, and hold them, they will double in value over time. The goal is to invest your surplus money and make it work for you. After all, you are not just investing in assets. You are also investing in yourself. And nobody wants to invest in themselves unless they are investing for maximum return.

When you start the Wealth Clock early in life, you have the distinct advantage of time. The more time you hold good investments that compound in interest, the more “doublings” you will enjoy. Unconventional investments with unproven parties are much more tempting when you are younger. “The greater the risk, the greater the return”. If you start investing later in life, you have a whole lot less wiggle room, and tend to stay in your comfort zone. After all, you don’t want to gamble and lose it all.

Want To Learn More? Join Our 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!

506B or 506C Syndication? Multifamily investor Rob Rowsell explains the differences between these two types of Regulation D investing plans.

Regulation D Investing Plans – What is the Difference?

Rob jumps in to explain the difference between Regulation D Investing Plans. Is a 506B or 506C syndication plan right for you? Read on.

506B Investment Plans

Real estate industry pros refer to the Reg D syndication deal 506B as the “Friends and Family” plan. If you seek out this deal, the main rule is that you must have a preexisting relationship with your investment partners. Before signing the PSA, you must provide proof that you know them. You also may not solicit investors publicly for these properties. This includes online advertising, print ads, and in person public appeals through your local chamber of commerce or other forum.

506C Investment Plans

Regulation D investing plans classified as 506C are for accredited investors only. This means you must have a net worth of at least one million dollars. That net worth excludes your personal residence. You can also qualify if you have earned over $200,000 in the previous year as a single, or $300,000 as a married couple. Financial institutions also need confidence that you will earn that same amount in the following year in order to approve your plan. If you are approved for a 506C investment plan, you are free to advertise your deal to other investors publicly.

Join Our Community

Do you own multifamily properties? Do you aspire to one day? Then you should consider joining our online discussion group, the ATL 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! Enroll today!

Wouldn’t it be great if someone explained the kinds of real estate deals in easy to understand language? In this video, successful multi-family property investor Rob Rowsell does just that. Are you a cash flow investor? Perhaps are you looking for back end equity instead? Either way, you will learn the nuts and bolts of these investment deals in this video.

What Kinds of Real Estate Deals Are There? How Do They Work?

Rob starts the discussion off on the kinds of real estate deals. He explains that a cash flow investor puts his or her money into an investment and receives a regular return on it quickly. A back end deal, however, works differently. An extreme example of a back end equity play involves injecting capital into a new construction project. You may have to wait a long time in order to get a return on your investment. Some factors in that deal include waiting on the land purchase to go through, hiring contractors, and building inspections before getting paid. Depending on the specifics of your deal, your payout could come at different times during the life of the building. Many times, a balloon payment is made to catch investors up when the building is sold.

Other factors to consider is turnover of tenants and renovations to an existing property. If you are in a position to wait these out, you could conceivably make a greater return than you could over the life of a cash flow deal.

Join Our Community

Now you know about the kinds of real estate deals. Why not consider joining our online discussion group, the Addicted To Life 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! Enroll today!

Link

Embed

Copy and paste this HTML code into your webpage to embed.

• Deep Dive into Rob’s 1031 exchange
• Sanctification talk with Rob
• Book Rob recommended: Lifestyle Investor by Justin Donald
• LP Investment Bucket
• GP Investment Bucket
• Progress, not Perfection

Do you plan to invest your money in a business or property? Then you MUST fill out your due diligence checklist. This includes population demographics, surrounding businesses, competition, economic conditions, and more. Rob goes DEEP into the weeds in order to discuss all of the research factors you should consider. BEFORE you invest in any kind of business, you must watch this video!

Auto Repair Shop Investing Due Diligence

Rob began by listing off just a few potential businesses that one could invest in. Consider everything from coffee shops to apartment complexes to auto repair shops. All of them have one thing in common. Researching their demographics is key. An average investor may be interested in injecting capital into a business. In that case, they would be wise to do their homework.

Specifically, Rob then expanded on due diligence for aspiring auto repair shop owners. Perhaps you are investigating a vacant property. You wish to build a new repair shop on it. In that case, consider the size of its population. Next, take a look at how many existing automotive shops serve that community. Are you currently considering an underserved region? Or is the area already overserved? Rob calculates that one average sized auto repair shop can serve up to 1,000 households. Is your target city’s population approximately 20,000? Then it could theoretically sustain up to 13 successful shop locations in the area.

Researching Household Income

However, you are not just looking at how many people live near the businesses. You want to know what the average household income is. Aim to plant your business in the middle of a thriving community. That means its citizens average $70,000 or more in annual income. These folks are much more likely to prioritize maintaining their vehicles than other, less fortunate individuals. That may not be a fun statistic to quote, but it is true. We are all trying to make a profit. And we want to do it without fighting a constant uphill battle.

What about investing in existing auto repair franchises? That honest mistake ensures you will get a smaller cut of the pie. All the while, you will work harder in order to fit into someone else’s mold. Investing in a turn key, existing business can still benefit you. If you find this idea appealing, then seek out independently owned auto repair shops.

Due Diligence in Real Estate Investing

Moving on, we discuss the real estate industry. Rob discourages pursuing properties on apartment listing aggregate websites. Many of these sites set off a race to the bottom. When this happens, competition can get fierce. The properties listed on these sites often end up driving down prices. They do this by offering move in specials. Everyone needs a place to live. Discounts like these help a lot of lower income renters. However, you want to invest in higher end, multi-family properties. Those will not be surrounded by stiff competition. They will also give you much larger returns on your investments.

Next, let’s talk about your area’s demographics. Rob lays out an ideal situation. Let’s say the community population is 100,000 people. You will want there to be no less than one hospital nearby. What’s a tip many folks may not consider? Scout a property that is 30 minutes or less away from a major airport. Rob prefers an international one. Are you investing in rental properties in multiple large markets across the country? Then you will want them to be easily accessible to you. Let’s face it: you are busy, and you don’t need to spend your time driving all the way across town to assess an issue with your complex.

Investigating the Area’s Economy

Moreover, you must examine the economy in your chosen area. Job growth should consistently be trending upward. That figure should read a 4-5% minimum, year over year. You will also want a diverse selection of industries throughout the city. Many communities’ economies are based on only one industry. This could be, for instance, a car and truck manufacturing plant. That factory, situated in the town’s industrial zone, may employ half the town. Thousands of small businesses have sprung up around it to serve its employees. How many times have we read headlines about those plants moving overseas, and ruining the area’s entire economy? Now, the plant workers, as well as the other businesses’ employees, are all out of work. If you invest in a shop serving these people, you and your staff are next.

Rob also mentioned the huge hit that the hospitality industry took during the COVID-19 pandemic. If an entire town’s economic hopes are pinned solely on a resort, an event like that will sink it. Every town is a business, and just like with any successful business’ investment strategy, diversifying is key. Remember this when you’re doing your due diligence.

Join the ATL ALL-In Financial Community

Do you currently own multi-family properties? If not, do you wish to invest in the future? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, you will join your fellow investors on a live Zoom roundtable talk. Rob Rowsell will teach you what you must do in order to build wealth in the lucrative real estate industry. It is not nearly as easy as it looks! Property taxes, liens, and legal fees can all be mind numbingly hard to navigate. Having a successful guide in your corner like Rob is a must! So sign up today!

The ATL Financial Discussion Community talks about the five lanes we can travel in with our lives. Rob encouraged each investor to improve on one problem area of their lives since last month’s investment conference. Both Rob and Gary are here to encourage the investors in our groups to live fulfilled, balanced lives.

Investment Options Financial Discussion

Rob opened up this financial discussion with a review of the Five Lanes from the last call. Previously, each caller discussed how they rated their performance in each category. He reminded the ATL members that at the end of the day, he was there to help spark the change each of them needed. Last month, the roundtable members admitted they needed to improve areas of social interaction, health, and community service. If nobody improves, these Zoom calls are all for naught. Rob truly believes that anyone can reach his level of success if they focus, work hard, and be patient.

The five lanes we previously discussed ranged from fast (hot) to slow (cold), based on what level of priority they were. Specifically, Rob mentioned their correlation to JR Covey’s Four Quadrants of Time Management. The individual issues members mentioned fall into the social concerns in Quadrant Two. This means that they are important, but not urgent. Therefore, it is easy to put off improving those areas. Immediately, you won’t tell a difference, but over time, they will cause problems if you do not work on them.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online financial discussion group, the Addicted To Life 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! Enroll today!