How long should you hold onto your property? Do you get in and get out of a deal after 18 to 36 months? Today, Bruce Woullet of Bakerson explains why investors need to think about long-term investments right now!
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Bruce starts by discussing the problem with investors getting in and out of deals quickly. He then emphasizes that it pays to buy properties for a longer hold and buying for cash flow especially since the market is hot.
Key Points From This Episode:
- Why does Bruce see a problem with investors getting in and out of deals quickly?
- The trend of getting in and out of deals quickly put sponsors out of work.
- Why do buying for longer hold and buying cash flow must be the goal?
- Bruce debunks some myths about buying and holding onto properties.
- Long-term vs. short-term deals?
- Bruce gives tips on how to effectively hold on to your properties long-term.
- How to find properties right now that can generate cash flow?
- What does buying and selling pro forma mean?
- Bruce talks about his current business plan to have a better income.
- When do you know that it is time to sell the property?
- Having a sizeable reserve prepares one for a downturn.
- Bruce shares the challenge he’s facing right now in his business – it is difficult to find deals.
- Bruce shares the techniques he uses to find deals.
- Bruce’s best source for meeting new investors right now is referrals.
- The daily habits that helped Bruce achieve success.
- The number one thing that contributed to Bruce’s success – creating a habit.
- How does Bruce like to give back?
“When I got into the multifamily (space) five or six years ago, we were doing getting in and out in 18 to 36 months. And one of the things I realized, especially right now, is it’s really a hot market to get in and get out.” [0:02:18]
“The challenge that I have is to consistently put sponsors to work.” [0:02:37]
“Our goal is to buy for longer hold and buy cash flow, and weather that storm. And, sell when it’s right for us to buy something else as opposed to trying to time the market.” [0:02:56]
“The most underserved population is the lower middle class and the upper lower class. It’s a growing and a pretty large group of people. But, in major cities, they’re having a hard time affording to live in the places they work. So, we really focus on not to hurt those we were trying to help.” [0:09:26]
“We are going to have an increase in expenses that I do not see others accounting for.” [0:13:58]
Links Mentioned in Today’s Episode:
About Bruce Wuollet
Bruce is the founder and the current owner of Bakerson. Growing up in the bakery business in the Twin Cities in Minnesota, Bruce wanted to pay homage to his now late father; hence the name “Bakerson”. After trying his hands in a few different ventures in Minnesota, Chicago and Phoenix, he finally found his passion in real estate. He has a proven track record of success throughout Bakerson’s 16 years in business with thousands of individual units bought, repositioned, and sold. Bruce has overseen all aspects of the business including operations, acquisition, project leadership, equity fund management, property-specific syndications, legal, finance, and more. His focus is on finding good deals while his passion is serving the residents by providing them with one of their basic human needs – shelter. Prior to launching Bakerson in 2002, he served on the acquisition team at a Phoenix-based real estate investment company.
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