DeepSummary
The podcast episode features an interview with Michael Macon, who shares his journey from working in the corporate world to transitioning into real estate investing, specifically in the Midwest region. He discusses the challenges he faced during the COVID-19 pandemic and how he ultimately found his niche in the affordable housing and Section 8 market.
Macon provides an in-depth explanation of the Section 8 housing program, dispelling common stigmas and highlighting the benefits for both landlords and tenants. He shares his experiences with tenant screening, property inspections, and the consistent rental income provided by the program.
Throughout the interview, Macon emphasizes the importance of stepping out of one's comfort zone and exploring investment opportunities in unfamiliar territories. He encourages investors to seek out the 'great perhaps' and not limit themselves to familiar areas, as greater success may lie in unexpected places.
Key Episodes Takeaways
- Stepping out of one's comfort zone and exploring investment opportunities in unfamiliar territories can lead to greater success.
- Investing in Section 8 housing can provide consistent rental income and benefits for both landlords and tenants.
- Prioritizing cash flow over appreciation can be a more stable and reliable investment strategy.
- Due diligence, such as property inspections and tenant screening, is crucial in real estate investing.
- Building relationships and trust with local partners is essential for out-of-state investing.
- Real estate investing requires hands-on involvement and active management, even with property managers.
- Overcoming stigmas and preconceptions about certain types of investments can open up new opportunities.
- Financial prudence and risk management are important considerations in real estate investing.
Top Episodes Quotes
- “Don't set yourself up for failure where you're buying houses you can't afford, you can't afford the maintenance, or you know, you think you end up. You end up falling in love with the place and overpaying for it because that's kind of where you're comfortable and, you know, so it's great to be able to buy in your backyard.“ by Michael Macon
- “But, you know, sometimes when you get out of your comfort zone in states you've never been to, building trust with people you've never met, that might be where you'll find the greatest success. So definitely go out and seek not to be cheesy, but seek that great, perhaps, in your business, and see what else is out there.“ by Michael Macon
- “So, yeah, I focus mainly on cash flow because if the houses appreciate, great. But, you know, if I can eventually own 30 or 40 of them and it's bringing in me, you know, x amount of dollars per month, and that's consistent, guaranteed by the government, at least for the most part, then you really get the financial freedom that a lot of people want.“ by Michael Macon
- “If you're banking on appreciation, one day the value can be up, one day the value can be down. A lot of people have made a lot of money on it, and I do hope these homes appreciate, but my calculation has more to do with what's the spread on today, not necessarily renting them out and hoping for appreciation.“ by Michael Macon
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Episode Information
Hacking Real Estate Podcast
Brandon Hall & Vikas Gupta
2/15/24
Join us on a captivating journey with Michael Macon, a seasoned professional who shares his fascinating transition from the corporate world to the realm of real estate investment. Listen in as Michael recounts the trials and triumphs he encountered while shifting his focus from a technology career to securing his real estate license, navigating the hurdles presented by the COVID-19 pandemic, and ultimately finding his niche in property investment. His story is a testament to the allure of the Midwest market, where he found promising opportunities that contrasted with the daunting prices of properties in Los Angeles and New Jersey, highlighting the lure of higher cap rates and his first foray into property investment.
In our conversation, Michael and I uncover the nuanced benefits of investing in Section 8 housing, an area often overlooked due to prevailing stigmas. Through personal anecdotes and shared experiences, we underscore the importance of due diligence in property inspections and the rewards of providing dignified living conditions for tenants. This episode will illuminate the intricacies of navigating the Section 8 program, from understanding the impact of housing vouchers on rent negotiations to the consistent rental income that can potentially exceed market rates. Our discussion is sure to challenge your perceptions and may inspire you to consider the meaningful role landlords can play in the affordable housing sector.
Wrapping up our enlightening discussion, Michael and I reflect on the broader themes of risk-taking and stepping beyond familiar territories in search of greater success in real estate investing. We contemplate the influence of literature on our lives and how it propels us towards the 'great perhaps' of our professional endeavors. Whether you're a local investor or looking to broaden your horizons, this episode offers valuable insights into the complex world of real estate, emphasizing the need for financial prudence and the rewards that come from building new relationships in unfamiliar places. Tune in for a thought-provoking session that will leave you with a newfound appreciation for the intricacies of property management and investment strategies.
(00:00) Exploring Real Estate Investing Opportunities
(08:07) Benefits of Section 8 Housing Investment
(17:49) Section 8 Housing
(29:03) Navigating Property Management Challenges
(37:48) John Green Novel and Real Estate Investing Impact
(42:48) Exploring Success Outside Your Comfort Zone
About Michael Macon
Michael Macon, a Jersey City native turned Southern California enthusiast, seamlessly blends a corporate background with real estate savvy. With roots in NYC's fast-paced environment, he's worked with major brands like American Express and JPMorgan Chase, then shifted to growth-focused roles in California startups.
Since 2021, Michael's focus has been on real estate investment, particularly in the Midwest, where he champions affordable housing and Section 8 living solutions. He's an active voice on social media, demystifying Section 8 housing and highlighting the Midwest's investment opportunities.
Real Estate Investing, Property Investment, Midwest Real Estate Market, COVID-19 Pandemic, Property Prices, Los Angeles, Section 8 Housing, Affordable Housing, Due Diligence, Property Inspections, Rent Negotiations, Financial Prudence, Property Management, John Green, Cash Flow, Appreciation, Comfort Zone, Risk-taking, Financial Stability, Investment Horizons
@hackingrepod