Multifamily Investing vs. Fix and Flips: Which is Right for You? - Jake and Gino

Jake & Gino: Real Estate Investing & Multifamily

Jake & Gino

Smartinvesting, Buyingrealestate, Investing, Multifamilyrealestateinvesting, Business, Investingsmart, Apartmentinvesting, Management, Makingmoney, Realestateinvesting, Cashflow, Jakeandgino, Realestateinvestment, Commercialrealestateinvesting, Buyingapartmentbuildings, Entrepreneurship

4.9 • 842 Ratings

🗓️ 27 November 2023

⏱️ 13 minutes

🔗️ Recording | iTunes | RSS

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Summary

Join Gino Barbaro, co-founder of Jake and Gino, in this week's how-to lesson where he delves into the world of real estate investment, comparing multifamily investing with fix and flips. In this comprehensive guide, Gino doesn't just tell you which option is better; he lays out the pros and cons of each, helping you decide which investment vehicle is the right fit for your goals and preferences. 📈 Key Highlights: Multifamily Investing Benefits: Steady income stream. Economies of scale. Appreciation through forced value increase. Significant tax benefits like cost segregation. Challenges of Multifamily Investing: Higher initial investment. Management complexity. Overcoming limiting beliefs. Fix and Flips Advantages: Quick returns. Skill enhancement in real estate. Market agility and familiarity. Accessibility through various programs. Risks of Fix and Flips: Market volatility. Capital requirements. Time-intensive projects. Gino shares his personal journey and insights, from his start in 2011 with his partner Jake, to building a successful real estate empire. He emphasizes the importance of treating your investment like a business, whether it's a single-family flip or a large multifamily unit.

Transcript

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0:00.0	Hello and welcome. My name is Gino Barbaro. I'm one of the co-founders of Jake and Gino and in this
0:05.7	how-to lesson for this week, we've got a special one here. We've got multifamily investing
0:11.6	versus fix and flips. Now, I'm not here to tell you which one is better. What I'm going to try to do
0:19.8	in this lesson is really lay out the benefits
0:22.9	of buying a multifamily and the benefits of fixing and flipping. Then we'll talk about the cons,
0:27.9	the pluses and the minuses. And hopefully by the end of this lesson, you'll have a better idea
0:32.7	of which investment vehicle is better for you. Because you may not like multifamily. You may not like
0:39.2	the long-termism. You may not like to be able to hold assets. You may have the psychology where I
0:45.3	want a quick transaction. I want to flip these deals and that's where I get my energy. That's where I
0:49.8	get my juice. So you may not like multifamily. And conversely, if you are out there doing transactions,
0:55.6	but you ultimately know that creating wealth is by owning assets for the long term, you may not
1:02.0	like multi, you may not like fix influx. So let's jump into it. The benefits of multifamily investing.
1:07.2	The first one, there's a steady income stream. After you've bought an asset,
1:12.1	you're receiving cash flow every month. That is such a benefit. That is the reason why Jake and I
1:19.2	got into the business back in 2011. I had my W job to job. I would have called it the restaurant.
1:27.3	It was a small business, but it felt like a job every week. I would have called it the restaurant. It was a little small business,
1:28.4	but it felt like a job. Every week I was getting paid. And unfortunately, some of those weeks
1:34.9	where we had holidays or we had snowstorms or we lost power for the week, there was no steady
1:40.7	income stream. So that's why I jumped into multifamily. I didn't want to fix and flip. So the very first one is so crucial. You're buying a business when you're buying multifamily.
1:50.0	That was the revelation to me a couple of years ago. I'm like, wow, we're buying all these assets,
1:54.5	but we're really buying little mini businesses, whether it's a 10 unit or a 300 unit. These assets,
1:59.7	these businesses are creating income,
	...

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