5 Years as a Real Estate Investor and 500 Homes Later: My Biggest Lessons Learned with Patriot Family Homes
Joe Riley here, founder and CEO of Patriot Family Homes. It's hard to believe that it's been five years since we started our real estate investing journey. In that time, we've grown from one rental property to a portfolio of over 500 homes across 10 states. Along the way, we've learned some valuable lessons that have helped us succeed in this industry.
Lesson 1: It's All About the Numbers
When it comes to real estate investing, the numbers are everything. You need to have a deep understanding of the local market, property values, rental rates, and expenses. Running the numbers on a property is essential before making any investment decisions. Don't fall in love with a property before you know the numbers, or it could end up being a costly mistake.
Lesson 2: Location, Location, Location
The location of a property is just as important as the numbers. We focus on areas that are growing and have a strong economy. We also look for properties in neighborhoods that offer long term appreciation as communities continue to develop and improve. Proximity to tourist attractions and employment centers is also important to consider. A property in a great location can mean the difference between a profitable investment and a money pit.
Lesson 3: Build a Great Team
We could not have achieved our success without the help of a great team. Real estate investing is a team sport, and you need to have the right people on your side. This includes real estate agents, property managers, contractors, and lawyers. Finding people who share your vision and are committed to your success is crucial. At PFH, we love hiring “scrappy” team members. This has motivated us to work with veterans, military spouses, hospitality entrepreneurs and and even formerly incarcerated individuals.
Lesson 4: Don't Be Afraid to Pivot
The real estate market is constantly changing, and you need to be adaptable. Don't be afraid to pivot your strategy if it's not working. This might mean shifting your focus to a different market or investing in a different type of property. Being flexible and open to new ideas can help you stay ahead of the curve.
Lesson 5: Keep Learning
The real estate investing industry is always evolving, and there is always something new to learn. We stay up to date on the latest trends, market changes, and investment strategies. Continuing education can help you make better investment decisions and stay competitive in the industry.
In short, real estate investing has been an incredible journey for us at Patriot Family Homes. We've learned a lot along the way and have made some great investments. By focusing on the numbers, location, building a great team, being adaptable, and continuing to learn, we've been able to achieve our goals. If you're thinking about getting into real estate investing, remember these lessons and keep pushing forward. The rewards can be significant.
