Matt Derby REI

Stealing the post below (cut and pasted because I couldnt share to this page). I ran into another investor like this recently that couldnt get out of his own way and hence was in quicksand on projects. This could not be more true...on some level you need to be a little bit of a Maverick...and risk adverse...and downright optimistic things will go well (they dont always but you need to be right more times than not)

The smartest people I know are terrible at real estate.
Not because they’re not smart enough.
Because they think too much.
They analyze every deal to death.
Run 47 scenarios. Wait for perfect conditions.
Meanwhile, someone less educated but more disciplined buys three properties with simple math and builds more wealth in five years than the smart person built in twenty.
Real estate doesn’t reward intelligence. It rewards ex*****on and consistency.
You don’t need to be the smartest person in the room. You need to be the one who actually closes.
The professionals who win aren’t the ones with the best models.
They’re the ones who stop thinking and start moving.

Bought a house today...first one since October 😲. That is all.

Anyone else see this banger?? 👀🔥

HUDs housing budget approved for FY2026 with $3 BILLION increase year over year. NOW is the time to buy and build the portfolio...

If there was a company that would and could pull all permits needed in the city and surrounding counties, would you use it? This would include general building, HVAC, Plumbing/gas, and electrical....

When you buy a house from your own marketing, you absolutely need to pay yourself an acquisition fee. Think a little outside the box - you can absolutely take a fee and close on it to rent or flip.

Im in the process of completing my 500th renovation 🤯. Its been a wild ride!

If you haven't heard - Im now offering construction services/contracting for investors! Weve done over 30 projects since November and going strong! Want rentals done the way I do them with little to no involvement AND done quickly AND take advantage of my material discounts? Reach out to me and we can discuss!

👨‍🔧🔥

Here's a wild truth bomb about rental real estate that gurus lie about constantly...

Rentals are GREAT for the following:

Wealth/equity building
Hedging (taking advantage of) inflation
NOT paying taxes (this is huge btw)
Legacy play

Here is what theyre not great at:

Making money

Yes, that's right...for the time, energy and money invested rentals dont make much money. I know gurus will tell you they bought a rolls royce off cash flow but unless they have hundreds of free and clear units, it's not happening.

Obviously when rates were/are 4%, that's a little bit of a different story.

Real estate is the oldest tried and true method to building wealth. Its also the epitome of get rich slow. The real money is made when you SELL.

I dont say this to deter anyone from rentals. They are great and have changed my life and will continue to do so (now more than ever since I'm further down the road). I say it to set proper and real expectations....

Happy new year!

I constantly see vendors who are hyped on social for being solid when frankly, they're trash. I have taken the bait at some point and used the vast majority of them (no, I absolutely will not name names or examples). My point here is do your own homework....just because a company is well known and maybe marketed more than others, does not make it a good one.

I will die on this hill:

If doing BRRRR strategy (meaning fully leveraged), you will never survive doing market tenants in Baltimore. NEVER. Your portfolio is a ticking time bomb if so.

The only scenario where this works is A class areas with lower or no debt.

Merry Christmas and happy new year to all!

Will be bringing more content in '26!

You cannot do market tenants in Baltimore and survive!!!

Yes I understand thats bold statement and may get a debate going but trust me, its true....I speak from experience!!

Lets do some quick math:

You have 10 units that all rent for $2000 each. You have a 10% delinquency rate, or one unit not paying....which, in Baltimore, is very low unless doing high-end A class stuff...

You are netting $150 per property (which is very high actually). 9 X $150 = $1350.....deduct the $2000 delinquency and you're at NEGATIVE $650 per month cash flow!

Yes I understand this is one example but its very simple math and you can plug in just about whatever numbers you want. And again, youre very likely NOT going to net $150 per door and your delinquency will likely exceed 10%.

If you dont have debt on properties, yes, that certainly can impact your numbers in a favorable way...So yes, the only exception to this rule is properties in great areas (Fells, Canton etc) with very little or no debt.

It can take 4-7 months to evict given court timeline then 2-3 months for turnover and vacancy.

The only way to make money (at scale) in Baltimore is to do subsidized housing......