In this episode, we delve into the inspiring story of Aaron Van Aken, a civil engineer who made a remarkable transition into the world of real estate investing. Join us as we explore Aaron's journey, uncovering the challenges he faced, the resources that helped him get started, and the strategies he employed to achieve success in this thriving industry.

Here are some power takeaways from today’s conversation:

• His transition from engineering to real estate investing
• The importance of vetting operators
• How resources like LFI, mentorship, and contacting new operators weekly helped his education
• Goals of continuing to invest quarterly and becoming self-funded through deal proceeds 
• Focusing on asset classes you understand and know rather than shiny new opportunities

Episode Highlights:

[01:47] Aaron’s Journey

As a civil engineer who owns an engineering firm, Aaron was already exposed to real estate through his work. However, as a business owner, he wanted to create additional passive income streams to supplement his variable business income. When evaluating where to focus his time, Aaron realized he could generate a good return on investment by spending less time actively managing real estate investments, compared to focusing solely on growing his engineering business. This led him to explore syndicated real estate deals. As an engineer, Aaron also enjoyed analyzing numbers and underwriting deals, which aligned well with syndication investments. Being able to tangibly see the underlying properties gave him comfort. His background helped him assess deals based on rental comparables and price-per-unit metrics.

[08:40] The Importance of Vetting Operators

Aaron noted that if he could do his first investment over again, he would have focused more on vetting the operator. At the time of his first deal, Aaron said he didn't know the types of questions to ask an operator or how deeply to dig into their background and track record. Through tools on LSI and conversations with other investors since then, he has gained more knowledge on how to properly evaluate a deal's management team.

Operator due diligence is crucial, as the management team will be responsible for the day-to-day operations and performance of the underlying property. Thoroughly understanding an operator's experience, past successes and failures, financial strength, and approach is vital for assessing investment risk and potential returns.

[09:42] Mastering Focus Amidst Shiny Objects

In order to avoid distractions and stay focused, it is important to define your goals clearly and narrow your focus. By staying disciplined and sticking to your plan, you can resist the temptation of shiny objects outside of your parameters. While there may be many interesting things to explore, maintaining focus allows you to make better decisions and move forward effectively in your industry.

Resources Mentioned:

Tribevest

www.impactequity.net