It’s the typical trajectory of real estate businesses, to begin with, single-family rentals and then move on to bigger properties such as multifamily and commercial real estate. While residential, single-family rentals do provide cash flow, investors soon realize that this path does not lead to much time and financial freedom, and success. In truth, commercial real estate investing enabled most real estate investors to gain stable cash flow, grow their net worth and achieve time and financial freedom.
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Our guest today, Neil Timmins, talks about his real estate journey starting as a realtor and now, heading a company with a diversified portfolio focusing mainly on commercial and industrial real estate. Initially tying his hopes for passive income on single-family rentals, he’s learned the hard way that this asset is anything but passive. Listen now and learn how he found more stable cash flow and better returns, and at last, achieved financial freedom through commercial real estate investing.
Key Points From This Episode:
- Neil’s career history started as a banker, then, inspired by his mother’s success as a realtor, became one himself, then to single-family rentals and on to commercial real estate investing.
- Skills that Neil learned as a banker and a realtor gave him an advantage in real estate investing.
- What is direct-response marketing and how does Neil use direct-response marketing in his business today?
- The KPIs that Neil tracks as they reach out to commercial property owners.
- His quest for time and financial freedom led Neil to transition from single-family rentals to commercial real estate investing.
- How Neil found success in industrial, retail, medical office, and traditional office real estate.
- Neil’s debt strategy considers the inflationary capital market conditions today.
- Why it’s important for Neil to build relationships with people who can become partners or advisors on aspects of his business including debt financing.
- The metrics that Neil considers when looking at commercial property deals.
- Why Neil believes that RE investors will have the opportunity of a lifetime to create monumental wealth even amidst a very different borrowing environment.
- What are Neil’s goals for the next five years?
- Habits that contribute to Neil’s success and his contact details.
“The best one (direct-response marketing) is the one that lands in somebody’s hand when the timing and circumstance are perfect.”
“All these single-family rentals, I thought they would mean passive income. I learned the hard way it’s anything but passive.”
“(You’ve) got to find a place in the community bank that will build a relationship that’s not transaction-focused, because if the day comes that you need help, you want to know somebody’s going to be able to navigate that with you.”
“As long as you set yourself up and properly manage the choppiness along the way, we’re going to be presented with perhaps the greatest opportunity that we’ve had in our lifetime to create monumental wealth.”
Links Mentioned in Today’s Episode:
About Neil Timmins
Neil hails from Des Moines, Iowa. His entry point into the industry was as a realtor with RE/MAX. His team was recognized by the Wall Street Journal as a Top 100 team and he was the #1 RE/MAX Agent in Iowa by 29. Longing to quit forfeiting time for dollars, Neil moved into real estate investing. While he still owns a company that completes wholesale, novation, and rehab transactions, Neil’s passion is cash flow investing in commercial real estate. Like so many other investors, Neil began with single-family homes but has progressed into assets consisting of apartments, offices, and industrial space. Over the course of his career, Neil has been involved in over $300,000,000 in real estate transactions.
In 2021, Neil published his first book, Unicorn Hunting for Real Estate Investment Companies: How to Easily Attract, Screen, and Land a Unicorn. The book is tailored to helping real estate investors find and retain top talent through the strategic systemization of hiring. Neil also hosts his own podcast, “Real Grit” where he pulls back the curtain on real estate investments through interviews with industry titans.
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