Welcome to The Most Dwanderful Real Estate Podcast Ever, hosted by Dwan Bent-Twyford, America’s most sought-after real estate investor. The podcast’s unique name, “Dwanderful,” combines Dwan’s name with “wonderful,” reflecting her positive approach to real estate investing. Dwan’s mission is to place people before profits, offering valuable guidance on the journey to real estate success. In this episode, Dwan welcomes Whitney Elkins-Hutton, an expert in real estate investing, to share her insights and experiences.
Meet Whitney Elkins-Hutton
Whitney Elkins-Hutton, who specializes in multifamily self-storage and express car washes, shared her background and expertise. She helps investors build and protect their wealth through strategic investments. Whitney emphasized the importance of establishing a robust financial foundation before scaling real estate portfolios.
Building a Fortified Financial Foundation
Whitney’s work at AshWealth.com stems from her experience working with individuals who were eager to grow their real estate portfolios but lacked a solid financial foundation. She discovered that many people, despite their skills and desire to invest, were one downturn or unexpected expense away from losing their investments. This realization led her to focus on educating people about building and protecting their wealth.
In her book, “Money for Tomorrow: How to Build and Protect Generational Wealth,” Whitney outlines frameworks for creating, preserving, growing, and passing on wealth. This holistic approach ensures that individuals can achieve long-term financial stability and success in their real estate ventures.
The Role of Syndications in Real Estate Investing
Whitney explains the concept of syndications, highlighting their potential benefits for investors. At PassiveInvesting.com, Whitney and her team raise capital for their own projects, including multifamily properties, self-storage units, and express car washes. This approach allows them to maintain control over the quality and management of the investments.
For those new to syndications, Whitney provides a thorough explanation of the roles of general partners and limited partners. General partners are responsible for finding deals, securing financing, and managing day-to-day operations. Limited partners, on the other hand, invest capital and benefit from the returns without being involved in the management.
Whitney encourages investors to understand their goals, risks, and timelines before choosing investments. She stresses the importance of underwriting the operator, market, and deal to make informed decisions. Once these initial steps are completed, investors can enjoy the benefits of passive income while the general partners handle the heavy lifting.
Overcoming Barriers to Real Estate Investing
Dwan and Whitney discuss common barriers that prevent individuals from entering the real estate market. Many people believe they need substantial capital and experience to get started. Whitney dispels this myth, emphasizing that real estate investing is accessible to everyone, regardless of their financial situation or background.
Dwan shares her personal journey, starting as a broke single mom who turned to real estate out of necessity. She highlights the importance of mentorship and learning from mistakes. Despite facing numerous challenges, Dwan persevered and eventually found success in the industry. She now dedicates her time to training others, helping them avoid costly mistakes and achieve their real estate goals.
The Value of Single Family Homes and Commercial Properties
Whitney and Dwan discuss the advantages of investing in both single-family homes and commercial properties. Whitney explains that while single-family homes are a great starting point for new investors, transitioning to larger assets and passive investments can lead to greater financial stability and growth.
Dwan shares her experience with single-family rentals, recounting the challenges she faced as a landlord. She emphasizes the importance of proper education and training, noting that she could have avoided many headaches if she had known how to manage properties effectively from the start. Despite these challenges, Dwan eventually moved on to commercial properties, realizing the benefits of larger investments.
The Seven Pillars of Real Estate Investing
Whitney introduces the concept of the seven pillars of real estate investing, a framework she uses to help clients diversify their portfolios and achieve their financial goals. The pillars include:
- Preserving Capital: Ensuring that investments are secure and protected from significant losses.
- Creating Cash Flow: Generating steady income from investments to support financial stability.
- Building Equity: Increasing the value of investments over time.
- Leveraging Tax Benefits: Taking advantage of tax incentives and deductions available to real estate investors.
- Utilizing Leverage: Using borrowed capital to increase investment potential and returns.
- Diversifying Investments: Spreading investments across different asset classes and markets to minimize risk.
- Expert Management: Partnering with experienced professionals to manage and grow investments.
By focusing on these pillars, investors can create a well-rounded and resilient portfolio that supports long-term financial success.
The Importance of Mentorship and Learning from Mistakes
Dwan and Whitney emphasize the value of mentorship in real estate investing. Dwan reflects on her early days in the industry, when resources and information were scarce. She had to learn through trial and error, making costly mistakes along the way. Today, she stresses the importance of seeking guidance from experienced mentors to avoid these pitfalls and accelerate success.
Whitney agrees, noting that mentorship can provide valuable insights, support, and accountability. She encourages new investors to find mentors who can help them navigate the complexities of real estate investing and achieve their goals more efficiently.
The Process of Passive Investment
1. Initial Consultation and Goal Setting
The first step involves a discussion with an investment advisor to determine your goals, risk tolerance, and investment timeline. Based on this information, a range of investment options are presented, tailored to fit your needs and preferences.
2. Due Diligence
Even as a passive investor, it’s crucial to perform thorough due diligence. This means reviewing financial literature, understanding the investment, and asking questions to ensure you are making an informed decision.
3. Investment Commitment
Once you decide on an investment, you’ll make your contribution. Passive investments typically involve illiquid assets, meaning you can’t easily sell your shares on a secondary market. You’ll need to be prepared for a longer-term commitment.
4. Ongoing Monitoring and Updates
After investing, you will receive periodic updates, such as monthly or quarterly reports, depending on the asset. An end-of-year K-1 statement will summarize your investment’s performance. Regular communication from the investment firm will keep you informed about your investment and any necessary documentation.
5. Exit Strategy
When it’s time to exit the investment, you’ll have options such as a 1031 exchange or selling your shares. The decision will depend on your personal goals and the investment’s performance.
The Evolution of Investment Opportunities
1. Access to Real Estate Investments
Previously, high-value real estate investments were accessible primarily through family offices or hedge funds. Recent regulatory changes, such as Regulation 506C, have opened these opportunities to more retail investors, allowing broader access to high-value projects.
2. Impact on Local Communities
Investing in projects like multifamily housing or self-storage can positively impact local communities. Your investments help fund developments that rejuvenate neighborhoods and create local economic benefits.
Networking and Finding Investment Opportunities
1. Networking Strategies
Finding investment opportunities often involves networking within local Real Estate Investment Associations (RIAs) and attending industry conferences. Engaging with other investors and staying informed through industry events can uncover potential opportunities.
2. Resources for Finding Investments
While some large investment groups advertise their projects, smaller groups may be less visible. Networking and local connections are key to discovering these opportunities.
3. Expanding Investment Reach
Investment firms often seek to expand their reach and scale their operations. This can involve increasing their portfolio or entering new markets. For example, firms may look to broaden their presence in states like Georgia or Tennessee.
4. Personal Goals and Professional Growth
Investment professionals may aim to double or triple their fund’s size or broaden their impact across more regions. Aligning these goals with personal investment strategies can offer mutual benefits.
Conclusion
In conclusion, diving into the world of real estate can be both exciting and overwhelming. Understanding the various aspects, from market trends to investment strategies, is essential for making informed decisions and achieving your goals. Whether you’re looking to buy your first property, expand your portfolio, or simply gain a deeper understanding of the market, having the right guidance can make all the difference.
To ensure you have the best resources and support at your disposal, we invite you to explore our website, Dwanderful, where you can find valuable insights and tools tailored to your needs. For a more personalized approach, consider booking a consultation call with us. Our team of experts is dedicated to helping you navigate the complexities of real estate with confidence and clarity. Together, we can develop a strategy that aligns with your objectives and sets you on the path to success. Take the next step in your real estate journey with us—your future self will thank you!
