On this episode of The Darin Batchelder Real Estate Investing Show, Darin speaks with Seth Teagle, a multifamily real estate owner and investor. They discuss the latest developments in the Columbus area, the importance of finding good deals, and strategies for successful investing. One of the key takeaways from this episode is the importance of having multiple streams of income through investing in real estate. Seth emphasizes the need to build relationships with experienced operators and invest with a reliable team. They share personal experiences and insights to help listeners avoid common mistakes and be successful in their investing endeavors.
- [00:01:41] Firefighter turned real estate investor success story.
- [00:06:08] Improving housing for community and investors' option.
- [00:10:07] Invest in the right team, not asset.
- [00:14:45] Managing 600 doors is top tier.
- [00:19:51] Challenging to find good deals, lower transactions.
- [00:24:00] "Risk with both, planning crucial for success."
- [00:28:50] Syndication deals are flexible with percentages.
- [00:30:20] GC company built funds, others selling phases.
- [00:36:44] Educating on alternative investment options for control.
- [00:39:33] Investor's first deal had costly mistakes.
- [00:43:28] Partner with experienced operators to pivot.
- [00:49:35] Residential market affects cost to rent.
- [00:51:32] Demand for apartments varies by area, subsidies available.
- [00:55:11] Build relationship, understand expectations, communication key.
- [00:57:30] Focus on successful deals, expand team.
Episode Table of Contents
- Current Market Developments in Columbus
- Advantages of Investing in Real Estate Compared to the Stock Market
- Importance of Multiple Income Streams
- Investing with a Reliable and Experienced Team
- From Firefighter to Successful Real Estate Investor
- About Seth Teagle
Current Market Developments in Columbus
Columbus, Ohio, is experiencing significant market developments that are impacting the real estate industry. With the arrival of major companies like Intel and Microsoft, the area is seeing an influx of new residents and job opportunities. This growth is driving the demand for quality housing options, particularly in the multifamily sector. The significance of these developments lies in the potential for increased investment opportunities and economic stability in the region. It is crucial to monitor and assess the progress of these developments to ensure their success and capitalize on the benefits they offer.
Multiple Streams of Income in Central Ohio and Jacksonville
The Stream Group, led by Seth Teagle, has a strong presence in Central Ohio, particularly in the Columbus area. They focus on acquiring and managing multifamily properties in this region, leveraging their deep knowledge and expertise. Additionally, they have expanded their reach to Jacksonville, Florida, where they are exploring multifamily investment opportunities. By diversifying their portfolio across different markets, The Stream Group aims to maximize growth and mitigate risk. The selection of Central Ohio and Jacksonville demonstrates strategic decision-making based on market potential and favorable conditions for multifamily investments.
Advantages of Investing in Real Estate Compared to the Stock Market
Investing in real estate offers several advantages compared to the stock market. One major advantage is the security and stability of real estate investments. Real estate is a tangible asset that holds intrinsic value, unlike stocks which can be volatile and subject to market fluctuations. While stock prices can be influenced by factors such as investor sentiment and economic conditions, real estate investments tend to be more resilient and less influenced by short-term market trends.
Furthermore, properties have performed well even during the COVID-19 pandemic. Real estate investments have proven to be a stable and resilient asset class during economic downturns. While the stock market experienced significant volatility and downturns, rental properties continued to generate income through rental payments. This steady income stream provides investors with a predictable cash flow, even during uncertain times.
Investing Education: "There's another option out there. You don't have to just be giving all of your control to Wall Street and then being in no control of the money once it goes there."— Seth Teagle
In addition to the financial advantages, investing in real estate also provides opportunities for tax benefits and wealth accumulation through property appreciation. Real estate investors can take advantage of deductions such as mortgage interest, property taxes, and depreciation, which can help reduce taxable income. Furthermore, over time, properties have the potential to appreciate in value, allowing investors to build wealth through equity growth.
Importance of Multiple Streams of Income
In today's episode, Seth Teagle emphasizes the importance of having multiple income streams. He discusses how investing in real estate, stocks, or businesses can diversify your sources of income and provide financial stability. Seth highlights real estate as one such investment option that offers steady and secure returns.
Seth believes that having multiple income streams is crucial for individuals looking to supplement their w-2 income or create wealth in the long run. He shares his own journey of transitioning from a firefighter to a successful real estate investor, emphasizing that real estate provided him with an opportunity to increase his income and create a life-changing financial advancement.
Seth also touches upon the benefits of investing in real estate compared to the stock market. He mentions that properties have been performing well during the pandemic, proving to be secure and steady investments. This offers investors an attractive alternative to the stock market, where returns can be unpredictable and subject to market volatility.
Overall, Seth's insights underscore the significance of diversifying income streams through investments like real estate, stocks, and businesses. By building multiple income streams, individuals can achieve financial stability, mitigate risks, and work towards long-term wealth creation.
Investing with a Reliable and Experienced Team
Seth Teagle emphasizes the importance of investing with a reliable and experienced team. He believes that the team/operator is more important than the asset being invested in. A thorough vetting process is crucial to ensure the reliability of the team before investing.
Investing in Real Estate: "Who you're investing with is more important than necessarily the deal that it or what they're telling you."— Seth Teagle
Seth explains that he values vertical integration in his business to have better control over unknown factors and ensure smooth operations. By managing the assets for the entire life cycle, Seth's team can provide a more secure and predictable investment experience for their investors.
Finding Good Multiple Streams of Income
Seth acknowledges the challenge of finding good deals in today's market, mainly due to the bid-ask difference. He mentions that to win deals, investors often have to push the envelope when it comes to pricing. This means being willing to pay a higher price than anticipated.
Seth emphasizes the importance of thorough underwriting and careful assessment of deals to ensure they are good investments. He also advises investors to build relationships, attend real estate meetups, and seek mentors who can guide them in finding quality deals.
From Firefighter to Successfully Finding Multiple Streams of Income
Seth Teagle shares his personal journey of transitioning from being a firefighter to becoming a successful real estate investor. He describes how he sought guidance from a college friend who had become a multimillionaire real estate investor. This friend mentored Seth and introduced him to the world of real estate investing, including wholesaling, flipping houses, and buy-and-hold strategies.
From Firefighter to Multimillionaire: "So I was looking for some alternate live on what to do to kind of increase my income. And I reconnected with a guy that I went to college with, and when I met back up with him. He was a multimillionaire real estate investor, and I was like, what happened?"— Seth Teagle
Seth recounts how he took massive action, attending real estate meetups and meeting a contractor who eventually became his project manager. Through hands-on experience and working on a 50-unit property with another investor, Seth saw the potential and life-changing financial advancements that real estate investing could offer. He further highlights the pivotal moment when they successfully refinanced the property, pulling out over $1 million, which solidified his decision to shift his focus from firefighting to advancing in real estate.
Seth's personal journey showcases the power of mentorship, taking massive action, and recognizing the financial opportunities in real estate investment.
About Seth Teagle
Seth Teagle was a firefighter in Columbus, Ohio, but as he started to have kids, he realized that he needed to increase his income. He reconnected with a former college roommate who was a successful real estate investor, and learned about wholesaling, flipping houses, and buying and holding properties. He started attending real estate meetups and eventually bought his first deal, a 50-unit property which he managed the construction and renovation for. Seth and his partner were able to refinance and pull out over a million dollars, which convinced Seth to switch his focus to real estate investing full-time.
Professional and Educational Highlights For Seth Teagle
- Over 20 years of service as a firefighter and paramedic.
- Co-founder and COO of The Stream Group.
- Previously a licensed commercial real estate agent in Ohio.
- Developed vertical integration at The Stream Group.
- Co-founder of The Firehouse Bros, an education group for new real estate investors.
- Over 50 years of combined experience at The Stream Group in owning and operating apartment communities.
- Current portfolio at The Stream Group valued at over $150M worth of assets under management.