Multifamily vs. land investing: Which model is right for you? Do you have to choose one? Which is better for an active vs. a passive participant? Find out which business model would work best for you!
Entering the ring for today’s matchup are two titans of real estate:
Here are some knockout takeaways from today’s conversation:
[03:48] Mark Kenney’s background and path to real estate wealth
[09:19] Mark Podolsky’s background and how he started in land
[12:52] The beauty of passive investing with regards to travel
[14:22] Land investing 101
[20:13] Minimum investment and creative ways to get started in land
[37:40 ] Round 3: The final pitch: Risks in investing/operating multifamily deals
Episode Highlights:
[14:08] Multifamily Investing vs. Land Investing
Mark Kenney and Mark Podolsky dive deeper into their respective business models of multifamily real estate investing and land investing.
Mark Kenney discusses the benefits of multifamily investing, including:
Mark Podolsky explains his land investing model, which involves:
Overall, they discuss the differences in their business models in terms of cash flow, returns, risks, and suitability for different investor types.
[37:55] The Risks and Returns of Multifamily Investing vs. Land Investing
For multifamily investing, the risk is generally deal specific, with distressed deals having higher risk but also higher returns. The biggest risk overall however is people - partners, property managers, etc. who may act unethically. As with land investing, Mark Podolsky says he has never lost money on a deal because they buy land at a steep discount. That being said, the main risk is ignorance, and if investors don't do proper due diligence when acquiring properties
[47:25] Entry Points and Returns for Passive Investors
For multifamily, passive investors typically need $50,000 or more and the goal is to double their money in 5-6 years, plus significant tax benefits from depreciation
For land, investors can get started with as little as $500, and deals can generate annual returns of 800-1200%
Resources Mentioned:
Mark Kenney:
Mark Kenney: Multifamily Investing | Apartment Investing - Home - Think Multifamily
email: mark@thinkmultifamily.com
Mark Podolsky:
Website: The Land Geek
Wholetailing program: www.thelandgeek.com/quickdeals
Dirt Rich (Mark’s book)
Mike & Ligia Deaton:
Multifamily investing: www.deatonequitypartners.com
Land Flipping Coaching: www.flippingdirt.us
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