In this episode of Freedom Investor Radio, host John Pearl interviews Chris Lento, founder of EM Capital, who shares his journey from being a mechanical engineer to a full-time real estate investor. Chris discusses his initial steps into real estate, the transition from his W-2 job, the importance of the syndication model, and his strategic focus on the Southeast market. He also delves into the challenges faced during the 2008 financial crisis and recent market changes, offering valuable insights and advice for aspiring investors.
Key Highlights:
- Early Interest in Real Estate: Chris started investing in real estate 22 years ago while working as a mechanical engineer in Boston. He was inspired by the potential earnings from three-decker apartments.
- Transition to Full-Time Investing: After 17 years at his W-2 job, Chris transitioned to full-time real estate investing, leveraging the syndication model to scale his investments.
- Focus on the Southeast Market: Chris invests primarily in the Southeast due to its population and job growth, favorable tax environment, and lower cost of housing.
- Syndication Model: Chris emphasized the importance of using other people’s money to scale investments, which led him to adopt the syndication model, enabling him to manage larger properties.
- Learning from 2008 Financial Crisis: During the 2008 financial crisis, Chris’ properties remained stable due to fixed-rate mortgages, reinforcing the importance of good debt and long-term planning.
- Adapting to Market Changes: Chris adapted to rising interest rates by focusing on agency debt and higher-quality properties in better neighborhoods, avoiding older properties due to increased insurance rates.
- Advice for Aspiring Investors: Chris highlights the importance of building relationships, understanding market dynamics, and considering passive investing for those unable to manage properties full-time.
Chris Lento’s journey is a testament to strategic planning, adaptability, and continuous learning in real estate investing.
Connect with Us:
For more information about EM Capital and investment opportunities, check our website.
Connect with Chris Lento: LinkedIn.
Listen to the Full Episode: Available on Apple and Spotify.
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