The world of real estate investing can seem daunting, but for Avi, it became a fulfilling journey of strategic growth and adaptation. Starting just after the 2008 meltdown, Avi has built a portfolio of seven properties, learning to navigate market shifts and leverage smart financing to his advantage. His story highlights the benefits of a measured approach and the value of strong partnerships in real estate.
A Post-Meltdown Opportunity: The Genesis of an Investor
Avi first ventured into real estate in 2010, sparked by a friend’s observation: vacant homes after the 2008 financial crisis presented a unique investment opportunity. At the time, Avi had a full-time job, so his initial investments were “sidekicks.” He started slowly, investing bonuses from his job into properties, beginning with one in California’s Central Valley.
What began as a gradual accumulation of properties, with Avi acquiring another one every couple of years, has since evolved into a significant part of his life. Though he is no longer employed in his previous field, real estate now keeps him busy, and he finds it both beneficial and enjoyable, motivating him to continue investing.
From Conventional to Private Lending: The Shift to Scalability
In his early days, Avi relied on conventional loans, a process he describes as “very painful to take and very hard to manage.” The real shift in his financing strategy came after moving to Arizona. It was there he discovered private lending, specifically working with LendingOne.
“I had a couple of deals with another lender which actually was really painful to work with, and then I found you, and I’ll keep coming back,” he shares, highlighting the stark contrast in experience. Avi plans to secure three more loans from LendingOne in the next year, noting how much smoother the process is.
Building a Portfolio: Strategic Location and Property Types
Avi’s current portfolio consists of seven properties: one in California and six in Arizona. His initial investments were in California while he was living there. Upon relocating, he made a strategic decision to focus exclusively on the Arizona market, which he considers “a great place to invest.” He is in the process of selling his California property via a 1031 exchange, with plans to reinvest the proceeds into more Arizona properties.
Interestingly, Avi has chosen to focus primarily on single-family homes, particularly newer constructions. His reasoning stems from a painful experience with a triplex in California that involved fallen pine trees and a problematic well. While acknowledging that multi-family homes aren’t inherently bad, his specific experience led him to single-family properties, especially newer ones. “New homes in this state these days are actually cheaper than older homes,” he explains, finding them “less hassle” due to modern building materials like PEX pipes, which reduce the risk of common issues like pipe bursts seen in older homes.
Navigating Market Dynamics: Lessons Learned
Over 15 years, Avi has witnessed multiple market cycles. He observes that while a lot has changed, “a lot stays the same.” He emphasizes the continuous learning process, even through mistakes. “The nice thing about real estate is even when you make mistakes, you still stay on the positive side. You still make something out of it, actually sometimes a lot!”
He describes the current market as “interesting, not to say challenging,” noting it’s a buyer’s market with a “huge inventory.” While selling can be slow, “if you buy it, it’s a good time.” He recalls the 2008 market as “awesome,” wishing he had bought more properties then.
Mentors, Resources, and Key Takeaways
Avi credits many real estate agents and investor colleagues for influencing him. He emphasizes the importance of an open mind: “If you’re open-minded and you listen, you can learn.” While acknowledging that not all advice is perfect, he’s learned valuable lessons from many.
When advising new investors, Avi stresses the importance of self-assessment and thorough analysis:
- Define your investment style: Decide if you want to be a passive investor who simply collects income, or an active one who enjoys the process of acquiring and managing properties. “This is not for everyone,” he cautions.
- Do the math: This is his most critical piece of advice. In his early days, he relied on instinct (“if I’m willing to live in a house… I’ll go for it”), but now he rigorously runs the numbers, analyzing expenses, potential returns, and rent increase possibilities.
- Understand your priorities: Some investors, like a friend of his in California, prioritize appreciation over income. Knowing what you’re looking for is crucial.
The LendingOne Advantage: A Pain-Free Partnership
Avi speaks highly of his experience with LendingOne, particularly with his loan officer, Edrony. He contrasts it sharply with conventional lenders, whom he felt subjected him to an “inquisition,” and other private lenders where “there was all kinds of pain involved.”
“The beauty about dealing with Edrony is it’s fun,” Avi states. “I feel like I’m being helped, not like I’m being interrogated.” He appreciates the “pain-free experience” that LendingOne provides, especially given the unpredictable nature of real estate transactions, where deals can fall through at the last minute. “It’s good to have someone that’s on your side when you deal with all kinds of things like that,” he concludes, describing LendingOne’s system as a “well-adjusted machine.”
Avi’s journey exemplifies the power of a clear vision, continuous learning, and strategic partnerships in building a resilient real estate portfolio.
