If you are looking for a way to invest in multifamily but don’t have a big capital to do so, investing in smaller multifamily units may be a good option. In this episode, we speak to real estate investor Alex Babayev and he talks about his business model of investing in smaller multifamily units, flipping them, and understanding the real estate business. What are the daily habits that help Alex to achieve real estate success? Simple: live and breathe real estate! Tune in now and learn about a business model that can help you maximize your returns!
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Alex talks about his goal to achieve financial freedom through real estate investing by the age of 30 and being able to do it by 29. Alex also explains why he does not believe in focusing on just one niche. He says it is important to be open to other asset classes and take time to analyze deals to understand which ones will work for you.
Key Points From This Episode:
- Alex shares his journey in real estate and how he came up with his business model.
- Alex talks about his business model now of repositioning for small multifamily units and how he finds those deals.
- Alex’s best source for finding deals – the multiple listing services (MLS).
- How to build your credibility package as a real estate investor?
- Alex talks about his first contact on the deals he finds through MLS.
- How do you know when to hold a deal or property for a long time or let go of it?
- Alex talks about the most challenging part of doing this kind of business model – finding deals and the cost of the material.
- How does Alex prepare for a downturn?
- Alex shares how he keeps himself up to date on what is happening in the society to know where the next development in the area is.
- Alex’s predictions in the real estate market over the next six to twelve months.
- Alex’s metric to calculate the reserves he needs for a property.
- The daily habits that help Alex to achieve success – live and breathe real estate.
- Alex shares his definition of success – being able to leave corporate America and do real estate full-time.
- How does Alex like to give back?
“My goal was always (that) by the age of 30 to achieve financial freedom through real estate investing. I was able to do that at 29.” [0:02:21]
“I spent a lot of money upfront building basically a credibility package.” [0:07:46]
“Repositioning capital is important because you can’t constantly keep doing re-file. That’s expensive” [0:12:45]
“I feel that there’s nothing wrong with selling the asset, taking some money off the table, and doing this (finding a deal) process all over again, even if you do it on a different asset class.” [0:12:59]
“People say, you know, you need to focus on one niche, but to me, it’s all sort of value-add renovation. That’s what I’m comfortable with.” [0:13:12]
“We protect our money with everything we have but we protect our private lenders, our investors’ money even harder. That’s the most important thing.” [0:16:53]
Links Mentioned in Today’s Episode:
About Alex Babayev
Alex Babayev began his real estate career at the young age of 21 when he bought his first condo in Atlanta, GA. Ever since the sale of that first property, Alex has maintained a passion for buying and selling real estate and has never looked back.
Today, Alex enjoys fruitful relationships with other investors across the country who value his expert insights into property flipping, as well as his commitment to close deals that have real value for all parties involved. For Alex, cash is king. It allows him greater freedom to close deals quickly, stay competitive, and maintain a rock-solid portfolio, and he loves teaching others how to leverage this same approach.
No matter what type of property Alex starts with, he always keeps his strategy simple: identify objectives, determine a plan of action, and stay committed to finishing the job. These three simple tenets have helped Alex establish himself as one of the preeminent real estate investors is not just in Atlanta, but across the US as well. Regardless of the type of property, Alex is a trusted partner to those who seek the long-term benefits of investing in real estate.
Currently, Alex specializes in value-add renovations, maximizing client ROI. Alex also works with investors from across the country who are curious about investing in real estate but who may not have the time, experience or knowledge, but do have the capital to invest. Alex manages the project from start to finish: asset acquisition, renovation, and ultimately asset disposition for a profitable short-term gain.
Alex holds a Master’s degree in Taxation from Georgia State University and a Bachelor’s degree in Accounting and Finance from Georgia State University. He immigrated from Tashkent, Uzbekistan with his family at the age of four, settling in San Diego, CA, and then moving to Atlanta, GA in 2006 during his senior year in high school. He loves the community around him in Atlanta and feels so blessed by the opportunities and communities he has become a part of there.
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