Daniel Krueger’s Post

What does going to the gym and real estate investing have in common? I’ve come to find that finding success in both…really boils down to the same three things. Patience When I started working out, I expected quick results. But I soon learned that building muscle and strength takes time. It's the same with real estate. My first property didn't show immediate returns. Patience taught me to trust the process and stay committed, even when results weren't visible. Remember, multifamily real estate isn’t a get rich quick industry… It’s get rich for sure… over a long period of time. Effort Many times, I've wanted to skip a workout, but pushing through those moments made all the difference. In real estate, finding the best deals requires hard work… And then once you’ve made your deal, and you’re going to operate it yourself… The amount of effort required grows exponentially. I find that consistency in my effort is the best way to continue forward and see results. Just like in the gym, if I miss that “one” workout, then my whole routine is off. Smart Decisions Making smart choices is crucial. In the gym, it's about choosing the right exercises and listening to my body to avoid injuries. In real estate, it’s about thorough property analysis and strategic planning. In both the gym and business, you have to listen to your body. If your arms aren’t feeling 100%, maybe skip it that day and workout something else. If your gut is telling you there’s something wrong with the deal, listen to it and start working on that next deal. —- By combining all 3: patience, effort, and smart decisions… I've made significant progress in both fitness and real estate. It's about playing the long game and making informed choices every step of the way that matters.

Here’s how I knew it was time to quit my soul-sucking W2 job… And what I needed to have in place before I made the jump. Some people are very comfortable in their W2 job, and that’s totally fine! But… it wasn’t right for me. I knew the type of financial freedom that I wanted. And my W2 job in corporate finance wasn’t going to get me there. I knew that in order to get to where I wanted, I wanted to be in business for myself. That’s a scary leap. My job was comfortable and stable, and entrepreneurship can be very risky. Now… I realize that earlier I said “jump”. That’s a bit misguided. I initially thought that to find the motivation to go into business myself, I would have to essentially “rip the band-aid off”. And just quit my W2. Luckily, I came up with a better idea. Why jump, when I can just dip my toes in first? This is where the idea of a side hustle comes in. Fitness has always been very important in my life, and I wanted to share my skills and knowledge to help people achieve their fitness goals. So I started a side hustle of fitness coaching. I was able to stay comfortable in my W2, while dipping my toes into the world of entrepreneurship to test the water. Once I was able to see that this side hustle had potential, and after doing some budgetary math… I was comfortable leaving my job. And it’s the best decision I’ve ever made. So my advice… don’t dive in. Test the waters. See what works and take your time. It may take a bit longer, but in the end it put me in the best position for me to achieve my financial freedom.

Who bears the brunt of the risk – limited partners or general partners? Real estate investing as an active player can be risky business, but fear not, there's a way to reap the rewards with minimal risk: real estate syndication. But who does what? Who brings the cash to the table? Who's on the hook for the loan? And who stands to lose the most?

Ever wonder if you can spot a real estate investor just by looking at them? Probably not, but bet you could have a chat and figure it out without them ever mentioning it. In this episode, Dan and Anthony are decoding the unmistakable signs of real estate investors. So, how do you tell someone's into real estate investing... without them saying a word?

Ready to peek into the crystal ball for 2024? We're diving deep into the insights and predictions for a year that's set to be a rollercoaster ride in the realms of economics, real estate, and tech. From the risks keeping investors up at night to the mysterious dance of market forces, and yes, even a speculative glance at alien activities – we've got it all forecasted for the coming year. In just six months, we'll circle back and see how our predictions stack up against reality – whether it's interest rates, the real estate market, or the meteoric rise of crypto.

Let's talk about embracing the Winter Slowdown in the apartment world and how to turn this time into an opportunity. Use this slower period for some much-needed cleanup and interior projects. Think decluttering storage areas and freshening up common spaces with a fresh coat of paint. Stay ahead of the game by servicing essential systems like boilers now. It's all about preventing those inconvenient and costly breakdowns during the colder months. When it comes to vendor bids, tread carefully. Watch out for offers that seem too good to be true and prioritize quality over cost for crucial property maintenance. Want more tips on navigating the winter season in real estate investing and property management? Tune in for some valuable insights and strategies.

Let's talk about the type of investor you are. Are you nearing retirement and feeling a bit cautious about risks? Or are you just starting out, eager to build your capital stack as fast as possible? Maybe you're somewhere in between. If you're like us, you're searching for opportunities that offer solid cash flow now and promising appreciation down the road. But if you're not quite sure which category you fit into, don't sweat it. We're here to guide you through this crucial decision. Remember what Sir Terry Pratchett said, ""If you don't know where you're going, you're probably going wrong."" Let's make sure you're on the right track together.

Okay, I know it sounds like one of those too-good-to-be-true headlines, but trust me, achieving infinite returns through real estate is within reach. The key? Strategy, strategy, strategy. Sure, 100% financing might seem like a shortcut to infinite returns, but it often comes with its fair share of risks. But fear not, there's a smarter, safer alternative: cash-out refinancing. This approach not only helps you avoid potential pitfalls but also sets you up for a derisked investment, consistent cash flow, and a tax-efficient path to expanding your real estate portfolio.

Let's talk about something close to my heart in this episode: the returns you can expect in apartment syndication. When you compare the annual returns in real estate to the lower yields of government bonds or the riskier stock market, it's crystal clear where the smart money goes. Real estate not only offers substantial returns but also comes with a risk profile that's more manageable than you might think. Whether you're eyeing value-add syndications or class A investments, the potential for impressive returns is undeniable. If you're ready to see your money grow like never before, real estate could be your ticket to financial success.

Now, let me share a personal insight with you. Real estate investing isn't just about the properties; it's also about the incredible tax benefits it offers. See, it's not just about how much you earn, it's about how much you get to keep. And one of the best tools in the real estate investor's toolbox? Depreciation. But here's the thing, the rules around bonus depreciation have changed. Now, you can only take advantage of 60% in the first year of a deal. Next year, it drops to 40%, then 20%, and eventually, it disappears. So, what's the bottom line? How does depreciation help you save money?