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Investing In Real Estate Podcast

Today we’re going to talk about the main differences between using a done-for you investing service vs. going the DIY route–including what to expect, how to decide which strategy is right for you, and the pros and cons of each investing type.

Investing with a full-service company vs. doing it yourself are two very different experiences. I’ve done both, so I feel confident sharing my opinions.. there’s a lot to consider when it comes to your resources, involvement, personality type, and what kind of experience you want to have. And let’s be clear, there’s no right or wrong choice. It just depends on what you want out of the experience. Click play to hear more!

More About This Show

First, let’s dive into what it’s like to do a DIY investment. You’ll need to find a rental property in the right market, get inspections, do repairs or hire contractors, run the numbers, screen tenants or find a local property management team.. and more! Every step of the way, you’re going to be involved.

Let’s get into the pros and cons of DIY investing:

Pros:

  • More control. If you’re the type of person that likes to have control and wants to oversee every detail and process, this is going to be the way to go for you. DIY investing tends to be a hands-on approach, so if you know you want control, I would recommend DIY investing.
  • Lower cost and/or higher returns. If you’re going out and buying distressed properties, there’s a potential to spend less, and make a higher return.
  • The ability to shop around. When you’re doing things on your own, you can shop around with different materials and possibly negotiate on services.

Cons:

  • It can be draining. This type of investing is going to require the most out of you: mainly your mental energy and your time. Even if you have others helping you (like contractors and property managers), you’re still going to be involved every step of the way. You’ll have to make a lot of decisions and it’s a lot of work! Again, not necessarily a bad thing, but it depends what you want out of the experience.
  • High competition. We all know that the real estate market has been competitive over the past few years. It’s the same way when it comes to finding rental properties. Depending on where you want to invest, it might be difficult to get your foot in the door.

Now, let’s get into working with a team, specifically a full-service team like our team at Morris Invest.

Pros:

  • Ensures a great market. A great team is going to conduct thorough market analysis, so you can be sure you’re making a sustainable investment. Not to mention, working with a team is the best way to invest out of state.
  • No expensive renovations or repairs. With new construction rental properties, all of the main components are brand new.
  • Great tenants. There are two main reasons for this: we only work with top-tier property management teams that know how to screen tenants. Also, a new construction property is going to attract a high quality tenant.
  • More passive. I truly believe that no investment should be entirely passive, but when you work with a team, there are fewer hoops for you to jump through. Of course you need to maintain the health of your portfolio, but you don’t have to go through the hassle of screening contractors or picking out flooring.
  • Relationship-based. When you work with our full-service team, we really get to know you and your goals. We’ll be there each step of the way to hold your hand and help you grow your portfolio.

Cons:

  • There’s homework! When you book a call with our team, we’re going to give you some assignments. Freedom Cheat Sheet, Purpose-Driven Goals Worksheet. If you’re the the kind of person who won’t put the time and energy into setting goals and filling out worksheets, working with us is not going to be a fit.
  • No inventory list. When you work with our company, you’re not just shopping for a rental property. Our business model is all about understanding your goals, and then matching you with a property that will help you reach those goals. There’s no inventory list when you work with us, because we don’t believe that buying a rental property should be like ordering off a menu.
  • Limited market availability. We’re incredibly particular about market research. We only invest in markets that we’ve heavily vetted and meet all of our criteria. So if you want to invest in a certain market, or are looking for properties close to home–working with us is probably not the right fit for you.

To wrap things up, it’s important that you really dig in and decide what you want out of the experience of investing. Ultimately, it comes down to what do you want your involvement level to be. No matter what you choose, it’s important that you do your research. Always get an inspection on a rental property, whether you are working with a team or doing it yourself. And if you do choose to work with a team, make sure you’re getting all of your questions answered, and that you’re getting an education out of the experience.

Episode Resources

Book a Call with Our Team
TommyJohn.com/investing ← Get 20% off your first order!
Shopify.com/investing ← Get a free 14-day trial!
Market Checklist Video
Behind the Scenes with our Property Management Team
How Real Estate Works No Matter Your Background
morrisinvest.com/bootcamp ← Download your FREE 90-Day Bootcamp!
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel
Like Morris Invest on Facebook

DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to​ use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.

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Posted on

May 12, 2022

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