Saving Distressed Properties and Other Buying Tricks w/Patrick Grimes
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Episode Description
Welcome to the Freedom Point Real Estate podcast! Today's episode features Patrick Grimes as he joins Jeremy Dyer to discuss protecting wealth from inflation, investing in Real Estate vs. the stock market, diversifying your investment portfolio and more.
Patrick has fifteen years of experience in active real estate investment: purchasing distressed assets, renovating, and stabilizing for long term cashflow. His portfolio includes controlling ownership over 4000 units in the emerging markets across Texas and the South Eastern United States. In addition to his real estate experience, Patrick holds a Bachelor of Science in Mechanical Engineering from University of the Pacific, and a Master of Business Administration and a Master of Science in Engineering from San Jose State University. He has spent 15 years in corporate America working for machine design firms to concept, design, and build one-of-a-kind custom manufacturing automation and robotic systems. In addition to working closely with the technical engineering teams, he travels globally working to negotiate contracts and secure multi-million dollar investment for automation programs. He has been able to leverage his corporate experience and real estate knowledge to help pave the way for future success.
CONNECT WITH PATRICK GRIMES!
Website: https://investonmainstreet.com/
LinkedIn: https://www.linkedin.com/in/patricksgrimes/
Invest on Main Street LinkedIn: https://www.linkedin.com/company/investonmainstreet/
Facebook: https://www.facebook.com/InvestOnMainStreet
Instagram: https://www.instagram.com/invest_on_main_street/
Youtube: https://www.youtube.com/channel/UC-B4rNcRiMKTnWnClyd0Ojg
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Understanding Distressed Assets and Performing Properties
"There's a difference between a solid performing asset and whether or not the owners are losing sleep." Patrick explores the nuances of distressed assets and performing properties, emphasizing the unique opportunities in providing financial relief to owners facing challenges.
Tip #2: Trillion-Dollar Debt and Opportunistic Funds
"We're in an opportunistic fund, bringing in opportunities for financial relief to performing assets." The conversation unveils the significant debt coming due by 2025 and the opportunistic approach of Starting Point Capital's funds, allowing swift acquisitions and calculated returns on investment.
Tip #3: Balancing Cash Flow and Growth
"You can make the return going in; you don't have to hold and hope for four or five years." Patrick discusses the balance between cash flow and growth, focusing on the unique approach of the Acquisitions Fund to calculate returns on the buy and avoid the traditional long-term holding strategy.
Tip #4: Transparent Investor Relations
"Being real about it... if you can't demonstrate that you can create value, just be real about it." Patrick emphasizes transparency in investor relations, providing monthly updates and quarterly financials while acknowledging challenges in the market and steering away from one-size-fits-all approaches.
Tip #5: Diversifying Portfolios for Success
"The allocations need to be diversified in and out of real estate through the stack of liquidity needs." Discussing diversification, Patrick advises listeners to diversify beyond Wall Street, considering liquidity needs and balancing risk profiles for a well-rounded investment portfolio.
Tip #6: Unlocking Home Equity Safely
"Home equity is one of the most dangerous places to put your wealth... it's better to diversify." Patrick warns against relying on home equity as a safe investment, urging listeners to diversify wealth and providing guidance on unlocking home equity without resorting to risky strategies.
Tip #7: Navigating Real Estate in 2024
"Now is really tough to find those cash-flowing deals... it's actually not that hard to unlock the majority of their wealth." Patrick discusses the current real estate landscape, addressing challenges in finding cash-flowing deals and encouraging investors to explore unique opportunities available in the market.
Tip #8: Realistic Projections Over High Returns
"Don't force it... don't look for that deal that doesn't exist, that's too good to be true." Advising against unrealistic expectations, Patrick advocates for realistic projections and caution against seeking deals that promise high returns without considering the market realities.
Tip #9: Passive Investing Mastery and Learning Resources
"I'm happy to talk to you... it's part of what I love to do now, is be able to contribute back." Patrick introduces Passive Investing Mastery, offering listeners resources, including a free book, webinars, and the opportunity to connect and learn more about real estate investment strategies.
Tip #10: Personal and Professional Journey
"We just got done checking off our Hawaii stay... before we plan our next journey." Patrick shares insights into his personal and professional journey, from spending four months in Hawaii to his dedication to contributing back to the community, providing a glimpse into his balanced lifestyle.
