Ep. 91: How to be an Ultra Conservative Passive Investor with Jeremy Roll

Jeremy Roll is a full-time passive cash flow investor. What does that mean? Well, he spends his time vetting operators, studying economic trends and seeking passive deals. Jeremy is admittedly an ultra conservative passive investor. Today, he shares his approach to being ultra conservative and what he seeks in passive investing opportunities across different asset classes.

Partner: Get Your Early Bird Tickets to the Midwest Real Estate Networking Summit

 Key Market Insights

• Was seeking predictability for long-term retirement account
• Left the corporate world from Disney, Toyota and GM after 10 years
• Full-time ultra conservative passive cash flow investor
• Biggest challenge is finding opportunities and all of the opportunities come from networking – use meetup.com or biggerpockets.com
• If accredited, you can go on crowdfunding websites to find investment opportunities
• Review the legal documents and ensure they are fair terms
• Spend a lot of time to get to know the operator, do background checks
• Find someone who will under promise and overdeliver on those assumptions
• Avoid someone using aggressive assumptions in their underwriting
• Invest in most asset classes across the country
• When investing in senior living facilities, you want a location that will have demand for retirees – if seeking private pay, you need robust incomes
• For mobile home parks, seeking people looking for affordable housing and nearby jobs
• Good to be in a market that has seen an increase in population and economy over the last 5 years and the next 5 years
• If targeting Class A properties, you need to determine supply in the market
• Avoid where people can’t afford Class A or trade down to Class B
• Class C, want to pay attention to the stock of Class B and understand the stock
• Watch out for structural obsolescence like lower ceilings
• Likes Class B as it’s nicer than Class C and you can get people to trade down from Class A
• Self-driving cars and robots – how will this impact employment in your area
• Avoids markets with population decline, single employers, low income / public pay,
• Will happily invest in self-storage facilities in Florida as there are not much damage with no windows
• Earthquake insurance is so expensive in California that most people don’t bother to get it
• Seeks deals that are 10% below true market value
• Investing in ATM machines and mobile home park portfolio

Partner: Be sure to check out the #InvestThis Podcast with Scott Bower

Bull’s Eye Tips:

Winning Your Market: Networking

Tracking Market Changes: Starts with a new analysis, begins with Wikipedia and Census data

Daily Habit: Prepares for each day, the day before

Resources:

Best Business Books:

Rich Dad’s Cashflow Quadrant by Robert Kiyosaki

Digital Resources

Schedule Once

Tweet This:

“What’s more important than the property or opportunity? The operator.”

“Don’t invest until you understand how to review it properly.”

Places to Grab a Bite:

West Los Angeles – California Chicken Cafe

Connect with Jeremy:

Email: jroll@rollinvestments.com

Leave us a review and rating on iTunes or Stitcher. Be sure to check out more info at TargetMarketInsights.com.