Real Estate with Sean Katona: Passive Strategies, Commercial Real Estate, and Out-of-State Investing

In this segment, John Bowens interviews experienced real estate investor, Sean Katona.
Connect with Sean Katona:
UA-cam: / @seankatonacre
Instagram: / seankatona
LinkedIn: / seankatona
Facebook: / katona
Visit his website: www.simplifiedproperties.com/...
Sean and John discuss passive real estate investing strategies, commercial real estate, evaluating real estate investments, out-of-state real estate investing strategies as well as pros and cons.
Notable quotes:
“I don’t have all my things in one basket, I can be really good at the one thing I’m good at.”
“I estimate that about half of my investors are doing so from their self-directed IRAs. They’re getting those tax advantages and they’re putting that money to work in asset classes that I feel have more certainty and predictability than the stock market.”
“I encourage everyone out there to get in the game. There are no perfect deals, no perfect markets, no perfect operators so figure out how to push through any analysis paralysis.”
Equity Trust Company is a directed custodian and does not provide tax, legal or investment advice. Any information communicated by Equity Trust Company is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional.

[@SeanKatonaCRE]

Great to talk shop with you John & the Equity Trust team. Feel free to reach out directly if anyone has follow-up questions!

[@Walina1001]

You are mistaken that a cap rate measures "returns". That Orange County 4% cap means that investors are paying $25 per dollar of possible NOI. In Cleveland they are maybe paying $10 at a 10% cap or less. Now since cap rates do not measure "returns" you cannot tell which market is more profitable. But, there is probably a reason that 4% cap markets are getting that value. You seem to be stepping over dollars to collect pennies.
Also you are wrong about price to rent ratios. Rents are negotiated between renters and landlords. Prices are negotiated between buyers and sellers. If the rents are $1000 but the property will only get $100,000 from an investor then it has been determined by investors that a $1000 rent in a .5% P2R ratio is worth TWICE as much. See, you are looking at it backwards.
You think CA is a landlord unfriendly state? That is so wrong. Now CA won't tolerate stupid landlords but if you can properly run a business and are not a scammer you will be treated fairly. Most of these horror stories are from investors that bought rent controlled properties and they thought they could operate outside the law and remove the rent protected tenant.