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SHOW NOTES FOR EPISODE 087 – CREATING WEALTH WITH SINGLE FAMILY HOMES
Mark Ferguson is committed to helping as many people as he can become financially free through real estate. He has set a personal goal to acquire 100 houses by 2023. In this episode, Mark discusses the challenges he faces in making his goal and how others can create their own wealth for a prosperous retirement through single family home rentals.
What You Will Learn
- What happens when the houses in the market you have bought from are rapidly going up in value?
- How he went from hating real estate to loving it
- What strategy he chose to make his money grow faster
- Why he chose rental income for a long term retirement strategy
- What his biggest real estate investing mistake was and what he would have done if he could have done things differently
About Our Guest
Mark Ferguson
Mark Ferguson’s purpose is to help as many people as he can become financially free through real estate. Mark is a realtor, real estate investor, author and the creator of Investfourmore.com. Mark’s real estate team sells hundreds of homes a year, he has flipped over 100 houses, owns 16 rental properties and has written five books. Investfourmore.com is a real estate blog with over 300,000 views a month, over 20,000 subscribers and a wealth of free information.
More About Mark
- His dad was in real estate investing since 1978
- Used to sleep under his dad’s desk as a little kid
- In high school he wanted nothing to do with it
- In college got business degree, emphasis in finance
- After college, couldn’t find “dream job”
- Worked part-time for his dad until he could get his “dream job”
- Ended up getting real estate license and continued to work for dad
- His dad did some flipping, which Mark liked a lot but it was like a full-time job
- Got more aggressive will being an agent, saving money and making money through flips
- Wanted to grow his money faster so started buying rental properties to create passive cash flow
Goal to Buy 100 Properties
- By 2023, he wants to have 100 properties
- Is currently behind on his goal because of the giant jump in prices
- Home prices went up from average $110K in 2012 to $260K today
- Rentals just don’t make sense in Denver
- Looking at Florida
- Is looking at commercial properties (warehouses) in Denver
- Current Cap Rate is at 5%, so hard to cashflow
First Rental Property
- Bought in 2010
- Most agents don’t become investors
- Was hard to do (mostly because of fear)
- After the first, he was happy he did and it was much easier to buy more
- Have to be more careful with buy ‘n hold than flipping
Biggest Mistakes
- He wishes he would have bought more rental properties sooner
- In 2006, did fix n’ flipped by himself (all labor). Took 6 months. Regular contractor would have dome in 6-8 weeks and at higher quality. Didn’t really save money in the long run
Biggest Successes
- Flipping – two made over $100K each
- Rental properties have been good as a whole – His 14 properties have over $1.5 million in equity and generate $7,000 per month.
Difference Between His Flip Houses and His Rentals
- The flips can be at any price in any neighborhood
- Rentals are in better areas (stable A or B neighborhoods, good schools, good rent-to-value, good condition, newer in age) – newer, can generate higher rents
Advice for Older People Who Want to Invest
- Better to buy before you retire
- Focus on cashflow
- Good property manager
- Focus on the basics
- By below market value
- Cash Flow
- Get a Property Manager
- It’s not easy, but it is most stable
His Future Goals
- He has Four Businesses
- Flipping
- Rentals
- Brokerage
- Blog/Podcast
- Short Term
- Flip 30 houses
- Making flip business more sustainable without him
- Long Term
- Reassessing 100 houses by 2023
- Buy more rental properties – main focus
- Grow Team
- Has 6 agents now
- Wants to be able to delegate more
- May start new brokerage firm
- Grow blog
- Has couple of books coming out this year
Rap-It-Up
- Favorite real estate book: Millionaire Real Estate Investor by Gary Keller
- Favorite business book: Think & Grow Rich by Napoleon Hill
- Most valuable web site for success (other than your own): SecretEntourage.com
- Favorite app: Dropbox
- Favorite quote: “Conquer the resistance.” – Steven Pressfield from The War of Art
- If you had to start all over, knowing what you know, and you only had $1,000, what would you do to launch your real estate investing business? “Drive for dollars” – Drive through neighborhoods, look for vacant or distressed properties. Knock on doors. Use the money for gas, letters to people who owns those vacant or distressed properties and hopefully could get some deals. List houses. Wholesale houses.
How You Can Reach Mark
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