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Sam and Daniel Kwak, known as the Kwak Brothers, are real-estate investors, entrepreneurs, and authors who went from zero to 75 rental units in their first year investing.
In an interview with Business Insider, they laid out a step-by-step guide on how to be successful as a beginner landlord.
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Sam and Daniel Kwak, known as the Kwak Brothers, scored their first rental deal in 2017 — a portfolio of four single-family properties in Illinois. By the end of that year, they had accumulated 75 rental doors.
At the time of their first deal, the brothers didn’t have the money to make traditional purchases, so they looked to owner financing — an arrangement that allows the buyer to acquire the property via monthly payments to the seller.
“One of the biggest myths that people have is that they need money to invest,” Daniel told Business Insider. “We immigrated to this country in 1999, and our family had very close to nothing.”
When they first got started in real estate, Sam was 21 and Daniel was 19. In fact, Daniel told Business Insider that he had a negative balance in his bank account, but the drive to succeed and learn about the industry kept him going.
“We had absolutely no money to do deals, but you know, I noticed that I was very good at networking,” Daniel said. “I would literally go around asking people, ‘Hey, what’s the No. 1 challenge I can help solve for you?'”
Soon after, he began connecting two types of people: those who had great deals but no capital and those who had capital but didn’t have the time, knowledge, or team to get deals done.
“That’s how we started learning, by doing,” Daniel added. Eventually those connections led to their first deal. Then they started going after multifamily buildings by raising capital from people looking for tax benefits and solid returns on their money. By the end of 2017, most of the 75 rental doors they had accumulated were apartment units.
Since then, Sam and Daniel Kwak have used their platform to educate and empower people in the real-estate industry. Sam is the host of the “Landlording Automated” podcast, and Daniel is the host of the “First Deal Experience” podcast. They also offer educational courses on how to be an effective rental-property investor and are launching a book on June 11 detailing their journey.
In an interview with Business Insider, the brothers walked through their story and laid out an eight-step guide on how to become a successful beginner landlord.
If you want to be a good landlord, Daniel said, you have to understand that it is a business, not a hobby. That means implementing a system, following steps, and being proactive instead of reactive.
“That mindset will give a far better chance of becoming a good, ethical, moral, yet profitable landlord,” he added.
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Source:: Business Insider