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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.
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Full transcript