Can you tell me a little about what you do?
I’m the president and CEO of Blueshore Financial. We have a team of expertly trained financial advisors—certified financial planners—who offer a very personalized approach to help individuals manage their wealth and investments across a whole diverse range of needs, from personal investing to business, to what they should invest in, retirement, estate planning, etc.—all the complicated things.
When did you first become interested in real estate?
I started out when I was a lending officer. When I looked at wealthy people who were borrowing money, it struck me how many of them had made money through real estate. I came up with this idea that true wealth, long-term, sustaining, powerful wealth comes from real estate or dividend stocks. So it seemed to me that that would be a good thing to get on board with. I also think that real estate gives you leverage so that you can really get outside returns. Leverage, of course, is both a good and bad thing: if used wisely, it can get you huge returns.
How long have you been investing in real estate? Would you consider it a passion?
It’s a passion of mine, absolutely. I’ve been investing since I was 26. I’ve owned many residential and commercial properties. It’s my business to finance them, to see the market and then purchase properties when I think it’s the right time.
What are some of the differences between commercial and residential investment?
If we look at how you can invest in real estate, there are three ways. One is that you look for a deal: something that is undervalued that you can get something like that through foreclosure.
Other people that are great investors that I finance, they look for very expensively built, good-structure buildings that they can go in and fix up. It’s the structure that’s being undersold, because something has gone wrong with the investment, the bones of the real estate are really, really good, and so they can go fix what’s not looking good on the outside, usually something superficial, and either flip it or hold it for a long time.
The last one is when there’s some reason why the investment has gotten lower income. Maybe the tenant isn’t that good, or rent was badly negotiated or rent has gone up, and some investors go in and get a kick that way.
Each person should understand what type of investor they are—it’s rare that they are all three. And usually what you are good at is something to do with your personality or your job or your style. So you need to be aware of that. For me, I’m kind of long-term, just looking at good income and good location. I don’t mind paying a premium for it, because I know I’m a long-term holder and usually the market rewards the best properties, well-located with income.