Not everyone who invests in real estate does so out of passion. For many, real estate is only a means to passive income, a strategic and technical machine that pumps passive wealth for as long as they choose. On the opposite end of the spectrum, there are investors out there who immerse themselves in all things real estate not only as a career, but as a lifestyle. Regardless of where successful real estate investors may fall on the spectrum, oftentimes, they can pinpoint one or several defining moments in their life that changed their trajectory forever.
Kyle Marcotte began his journey at the same time he was beginning his adult life. For most of his life, he had done what he was told were the right things to do. He did well in school, behaved himself, and eventually even landed himself an athletic scholarship while attending University of California, Davis. What he quickly came to realize was that such a life may not be for him. He did not want to be told what to do for the rest of his professional life, nor did he want to lose his time at the will of others only for their benefit.
Several months later, Kyle discovered Rich Dad Poor Dad and dropped out of college before the start of the next semester. He dedicated the next half of a year to learn as much as he could about investing in multi-family real estate, while networking with as many people as he can.
In a relatively short amount of time, thanks to that same dedication to education and networking, Kyle was able to find a partner with experience investing in multi-family real estate and closed their first deal, which was a 107 unit apartment building. At the time of this recording, Kyle owns a total of 119 units worth over $5.5M. And aside from expanding his investment portfolio, he plans on making an even greater impact on the real estate community by teaching aspiring investors to achieve what he was able to by the age of 21.
Some key takeaways from our conversation with Kyle:
1) Get on the same page with your partner(s). Work out a budget for your business, implement systems to maximize efficiency, and leverage software and services that will allow you to manage your business more effectively.
2) Go with a property management company that has an in house team that can do the work/labor for you or will help you find people who can. As a business owner, the more time you can spend working on your business, as opposed to working in it, usually the better off everyone involved will be. In Kyle’s experience, by selecting a trustworthy and dependable property manager, he’s usually left to overlook projects instead of doing the manual labor himself.
3) How to network as a young person in a nutshell: Find a meetup and introduce yourself to the host. For the next meetup, bring a friend. For the one after that, ask the host how you can help them. And finally, ask to be a speaker for future events. By doing so, not only will you show everyone attending the meetup that you are serious about investing in real estate, but you also establish credibility and expertise.
Pro tip: When joining a new meetup, don’t come in too strong, but don’t wait too long to build your credibility. Present yourself in a professional way and you will be perceived as a professional. Don’t lie about what you know, but experience always helps when establishing expertise. Above all, add value to others’ life!
4) Find ways to help people doing what you already enjoy as opposed to focusing on only making every single endeavor profitable. In the long run, we believe an investment in someone will produce a greater ROI than any monetary one will. Kyle understands that the happiness found in financial freedom eventually plateaus, but if you can stay humble and help other people, happiness is never in short supply.
If Kyle could go back and talk to his 16 year old self, he’d tell him, “Define your worth internally and not how other people perceive you.”
An unexpected benefit of real estate investing, Kyle said, was the ability to spend more time with his parents.
A piece of advice Kyle would tell his friends looking to get started in real estate would be to “Learn the most difficult parts first.” If you can learn the things you’re not so interested in sooner, the faster you will be able to learn the things you are interested in.
Kyle recommends using Slack and Asana to help you streamline your business and be more efficient online.
Kyle recommends reading The Bible for the simple reason that he believes not enough people are reading it or are recommending it.
If you’d like to get in touch with Kyle, visit: www.kylemarcotte.com
Thank you to everyone that has reached out to us to connect them with our trusted real estate agents in their area! And congratulations to those who have even closed deals using our referrals! For those that didn’t know, we can help connect you with real estate investor friendly agents in your area to help you get started investing in real estate. We recently made some changes to our website that we believe will better suit you in your real estate investing needs. For more information, visit www.millennial-realestate.com and head over to the “Start Investing” Tab. Best wishes and see you in the next one!
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