Insights on Distressed Real Estate Investing

Nov 22, 2024

Real Estate Business Insights with Logan

Introduction

  • Logan, a top real estate professional in San Antonio.
  • Revenue between $20 million to $40 million annually.
  • Revenue indicators aren't reliable due to varying deal margins.
  • Importance of bookkeeping discussed.

Logan's Background

  • Formerly in the oil field, inherited a seven-figure sum and almost lost it.
  • Got sober, worked in the oil field, and transitioned to real estate investment.
  • Began investing after realizing his financial losses.

Early Real Estate Experiences

  • Bought lots in downtown San Antonio post-mortgage crisis.
  • Worked as a project manager at the oil field, saved money living modestly.
  • Transitioned to full-time real estate investor after a layoff.

Real Estate Investment Strategy

  • Initial investments in downtown lots for $5,000 to $10,000.
  • Focused on distressed properties, recognizing market signals.
  • Strategy involved protecting capital and seeking upside potential.

Business Structure

  • Multiple income streams: distressed property acquisition, land development, and industrial portfolio.
  • Partners operate different aspects of the business.
  • Primary income from distressed property acquisition, leads to further investments.

Distressed Real Estate

  • Focus on properties with title issues, not just physical distress.
  • Delinquent tax properties often indicate title issues.
  • Common issues include fractured ownership and family disputes.

Lead Generation and Acquisition

  • Use of delinquent tax lists to identify potential distressed properties.
  • Filtering by geographic location and tax amount due.
  • Personal research and skip tracing to contact property owners.

The Acquisition Process

  • Initial research to identify potential issues before deeper investigation.
  • Conversations with owners focused on discovering problems and intentions.
  • Emphasis on non-aggressive, solution-oriented communication strategy.

Resolving Title Issues

  • Common title issues include ownership disputes and liens.
  • Legal processes may involve lawsuits to resolve ownership and easement issues.
  • Importance of protecting capital and legal guidance.

Business Operations

  • Analysis of inventory and capital management.
  • Emphasis on converting inventory to cash efficiently.
  • Challenges include legal complexities and balancing acquisitions with sales.

Coaching and Education

  • Logan offers a coaching program focusing on distressed real estate investment.
  • Program includes education and deal support over several months.
  • Encourages fast-tracking learning for better investment outcomes.

Final Thoughts

  • Logan emphasizes the importance of understanding financial risks and managing them.
  • The value of patience and negotiation in resolving complex real estate issues.