In the path of growth: Exxon’s mammoth campus under construction in North Houston

Exxon

During the acquisition phase of your Blueprint real estate investing strategy, the temptation is to focus exclusively on well established neighborhoods. But as a neighborhood becomes more and more established, home prices rise and returns drop. So how can you get better returns without sacrificing quality? You buy properties in the path of growth. That well established neighborhood of today was at one point not so well established. Needless to say, investors that purchased properties in … [Read more...]

Straight talk on investing in small multi family properties

My cousin Carrie's place

"I know you are against investing in two to four unit properties - but that's the direction I'm leaning in at the moment" - Theresa said somewhat tentatively. The overwhelming majority of case studies or portfolio scenarios I've written about involve the acquisition of a portfolio of quality single family homes in great school districts. Therefore, it is not at all surprising that some of you might assume I discourage the purchase of other categories of investment real estate. But the … [Read more...]

What is the return on investment for the Blueprint real estate investing strategy

Kunstmuseum Stuttgart

After a workload-induced two week hiatus from writing, I'm back to answer one very frequently asked question. What is the return on investment when you execute the Blueprint real estate investing strategy? Investors that ask that question are usually trying to compare and contrast investments in different asset classes (stocks, bonds, commodities, life insurance, real estate etc) to make an allocation decision. After all, every investor has a finite amount of hard earned (even harder saved) … [Read more...]

Houston market update: Prices and Sales up, inventory drought

Drought

Statistics for the performance of the Houston real estate market during January were released a few days ago and they point to a strong Sellers market. All the required ingredients are there: Strong sales, higher prices and inventory levels unseen since Bill Clinton was President (December 1999 to be exact). So let me give you the "espresso ristretto" version of the real estate market stats for January 2013: Property sales were up 29% over January 2012 Average home sales prices were up 3.4% … [Read more...]

How to buy investment properties with no money

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A large number of Investing Architect readers get here after googling "how to buy investment properties with no money" every week. Once arrived, they read extensive articles about our Blueprint real estate investing strategy in which long term real estate investors employ their hard saved capital to build a solid stream of retirement income using quality real estate investments. At first glance, the two are thoroughly incompatible - on the one hand, there are aspiring investors who seem to want … [Read more...]

Real estate investing and authentic Italian pizza

Prosciutto, anchovy and onion pizza.

A couple of years ago, an American friend of mine went on vacation to Italy with the family and he tried authentic Neapolitan-style pizza for the first time. He was speechless! The pizza amounted to a unique culinary experience and had nothing whatever to do with its gooey American counterpart he had taken out thousands of times. "How is it possible - he asked the shopkeeper - that something made the same way from the same ingredients, can be so deliciously different?" The shopkeeper's answer … [Read more...]

Equity and the myth of playing it safe

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When I started Investing Architect a couple of years ago, I wrote a controversial post called Why Equity doesn't matter that caused quite a stir. It was inevitable. A conservative, prudent, "low and slow" real estate investing guy (by his own admission) was advising his readers that built in equity was irrelevant. How could this be, considering what happened to real estate markets in 2008 with millions underwater on their mortgages? Wouldn't it be more conservative and prudent to only purchase … [Read more...]

How to tell if your investing strategy is working

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Most long term investing strategies have one element in common: They all require hope and faith. The basic premise goes something like this: You will feed your 401k/IRA/mutual fund account regularly for 40+ years and then hope and believe that at retirement your nest egg will be sufficient to avoid Walmart employment at 65. Don't get me wrong - you will periodically receive detailed statements about your account balances and positions throughout the four decades. But those balances and … [Read more...]

Diversification and real estate investing

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One of the first things people tell you about investing is that you must diversify. And by people, i mean your Uncle Ralf, who took a finance class once. Then comes the proverbial "Don't put all your eggs in one basket" accompanied by the mandatory wag of the index finger. After you put some thought into it you realize that Ralph might be on to something here. It's commonsense - when you put all your money in one thing, if that thing goes bust so do you. So spread your money around and while … [Read more...]

What happens after you decide to move forward with your Blueprint

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Based on conversations after the fact, many of our clients revealed that they had been reading Investing Architect for months (and in one case, over a year) before they decided to contact us to craft and execute their real estate investing Blueprint. This surprised me a little at first. But after giving it some thought it all started to make a lot of sense. Before you take the step to contact someone like me, you have to come to two important conclusions. First, you have to decide that … [Read more...]