How bad do you want to become a real estate investor? Our podcast guest for today wanted it so much that he knew he will make it happen no matter what happened. Out of his dorm room, Antoine Martel devoured all the information he could to make him fully equipped in winning real estate investing, an endeavor he knew he’ll enter right after college. True enough, right after graduation, he did not look for a job, instead began scouting for the first property they’ll be investing. Fast forward to six months after graduation, they had eight to 10 single-family homes in Memphis in the exact same neighborhood of their first property.
This happened in the year 2017, but Antoine’s entrepreneurial inclinations began way earlier in his life. He is the kid in middle school selling candy and soda. In his junior year of university, his brother took him and his dad to a real estate investing seminar where they learned about flipping houses, rental properties, the BRRRR method, apartment buildings, etc. That’s when his interest started and never waiver. To this day, three years after, Antoine is doing 10x as much as what he thought he would be doing, having a hundred units portfolio in Memphis. They are also helping other people become wise investors through their Martel Turnkey services.
If you are someone who understands the weight of real estate ownership and would like to learn more about how to do it successfully, then this episode is 100% for you! Antoine is sharing important tips about real estate investing, from what to consider when choosing your first investment property to how to scale them and investing in larger properties to pave way for more cash flow. Learn which mistakes to avoid. When you have the right mindset, knowledge, and guidance, you can not underestimate the things you can accomplish in a short amount of time. Be sure to listen to this episode in full and get ready to roll!
Here’s What You Missed
- How Antoine developed his interest in real estate
- Tips on criteria on finding your first property
- What is BRRRR
- What is turnkey property?
- How Antoine build their turnkey property business?
- What are the biggest mistakes investors make?
Knowledge Nuggets
[11:26] Criteria on finding the first property: Job growth, population growth, the diversity of the workforce, major employees, their industry, crime rates and then also just the property values. And so the median price for a home and the median rent for a home.
[14:51] “By December, six months after graduation, we had like eight to 10 single-family homes in Memphis in that exact same neighborhood.”
[15:19] BRRRR: It’s a way that you can grow a scalable portfolio with less than a hundred thousand bucks. You buy a property, all cash, you renovate it, you rent it out. Then you refinance it and because you rehab it cause you bought the property and renovated it and now it’s worth more money. Now you can go to a lender and do what’s called a cash-out refinance since you own it all cash. And the lenders, essentially going to write you a check, give you a mortgage on that property. And so you can have most of your principal investment back, um, and have very little cash left in the property. So you’re able to turn that 50 grand over and over and over and over.
[18:28] Selling properties like ‘turnkey’: Not just me doing it for my family, but doing it for other families as well. And so that’s kinda when we started buying properties, renovating them, renting them out, but then selling them and then helping our clients get financing, insurance, property management. And so selling properties like turnkey with the tenant in place already.
[20:24] Once I knew that there was a possibility of me selling it turnkey, I would go and find properties. I would make like an investment package and I would go to those investors and I’ll be like, Hey, let’s partner up on this. We have two options. we can either burn it together or we can flip it to one of these people that I think we can sell it to. And so you fund the deal, I’ll manage the project and we’ll split the profits 50 50.
[25:52] The turnkey business was creating a lot of cash, but it wasn’t creating any passive income.
[26:55] On apartment buildings. You dumped your money into something you’re good. You’re good for the five or 10-year loan term that you have on that, on that apartment building.
[32:40] On starting the turnkey business: That’s kind of why we started the turnkey company too. I think it fills that void with people who had money saved up wanting to invest but didn’t know where to start. That’s all the two things that you need is 700 credit score in 20 grand in the bank.
[37:59] So what we do for a lot of people, as we try to help them get to that 10 homes, and then what we do is we can either help them by selling those products, we can help them by refinancing those properties into a big portfolio loan and pull some of that money out.
[40:47] On the biggest mistakes new investors make 1. They’re choosing an investment strategy that doesn’t make sense. With their resources, time, and cash that they have, it doesn’t make sense for them to be wholesaling or flipping houses or doing ground-up developments. I always recommend just getting started and getting in the game and you’ll figure it out later.
[43:19] On being a dreamer: Just not being satisfied with where you are, I guess would for me be a dreamer and striving to do better and to do more.
[45:42] The only way that you grow is by getting out there and doing it. Would you rather pull the trigger and take the risk or regret never pulling the trigger at all?
Important Reads and Links
Recommended Books:
Rich Dad Poor Dad by Robert Kiyosaki
Sell It Like Serhant by Ryan Serhant
The 10X Rule by Grant Cardone
Antoine Martel Website: https://martelturnkey.com/
Antoine Martel Instagram: https://www.instagram.com/martelantoine
Antoine Martel Twitter: https://twitter.com/martelantoine
Antoine Martel LinkedIn: https://www.linkedin.com/in/antoinemmartel
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