Building Wealth in Real Estate: Beyond the 1% Rule with Tim Little

Dec 20, 2023

Can the 1% rule in real estate investing still hold true when leveraging a VA loan for an owner-occupied property?

 

Angel Williams and Tim Little delve into the intricacies of real estate investment, focusing on the challenges and strategies involved in managing properties, leveraging loans, and understanding financial metrics. They share their personal experiences and insights into property management, discuss the complexities of self-managing versus hiring professionals, and explore the implications of different loan types on investment strategies.

 

Tim Little is the founder and CEO of ZANA Investments, a Tampa-based real estate investment firm named after his two daughters, Zara and Lana. He's passionate about helping fellow military veterans escape the "landlord trap" and get competitive returns by providing opportunities to invest passively in apartment buildings.

 

Tim started investing in real estate with a duplex in 2014 and has grown to a portfolio of 693 co-owned units valued at over $90 million. Practicing what he preaches, he also passively invests. He has an MBA and has served several years as an active duty Army Officer, a Strategic Communications Consultant, and the Head of Multifamily Communications for the Dept. of Housing and Urban Development (HUD) before transitioning full-time to real estate.

 

Tim is also the host of the top-rated podcast, "Journey to Multifamily Millions" where he talks with experts in the field of investing in multifamily properties.

 

[00:00:00 - 00:03:00] The 1% Rule and VA Loans

• Angel questions the applicability of the 1% rule when using a VA loan for owner-occupied properties.
• Tim highlights the importance of tailored strategies.
• he need for bespoke investment strategies depending on financing.

[00:03:00 - 00:06:00] Property Management Realities

• The challenges of self-managing properties include unexpected issues like bee infestations.
• The importance of understanding the full scope of responsibilities and time commitments.
• Weighing the pros and cons of self-management versus hiring property managers.

[00:06:00 - 00:09:00] Evolving Investment Strategies

• Angel's journey from single-family homes to larger multi-unit investments.
• The influence of personal experiences on shifting real estate investment focuses.
• The balance between residential and commercial property investments.
•  

[00:09:00 - 00:12:00] Financial Literacy and Family

• Teaching financial literacy to children through practical real estate experiences.
• The importance of instilling entrepreneurial skills in younger generations.
• Personal anecdotes demonstrating the effectiveness of early financial education.

 

[00:12:00 - 00:24:00] Building Wealth in Real Estate

• Real estate as a long-term wealth-building strategy rather than a quick profit scheme.
• The role of syndication in real estate investment and wealth accumulation.
• Insights into the financial structure and compensation of real estate syndications.

 

Quotes:

 

"You don't know when a water heater is going to go out. You don't know when a furnace, AC, or a hole in the roof might happen..."- Tim Little

 

Connect with Tim:

Website: https://www.zanainvestments.com/

 

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Are you confused about where to start? Join our community and learn more about real estate investing. Head over to our Facebook Page, Youtube Channel, or website https://www.theacademypresents.com/jointhesummit36848306.

 

Connect with Lorren Capital, LLC. for syndicated multifamily investments, https://lorrencapital.com/.

 

To learn more about me, visit my LinkedIn profile, and connect with me.