Built-to-Rent (BTR), ADUs, and Opportunity Zone Investing with Aaron Norris

Aaron Norris is the VP of The Norris Group(TNG) which provides hard money to real estate investors in Florida and California. TNG also builds-to-rent (B2R) SFRs in Florida and trains real estate investors about the importance that timing plays in investment strategy. He currently co-hosts the Norris Group Real Estate Radio Show and was co-host and producer of the Data Driven Real Estate Podcast for PropertyRadar. He’s been an award-winning podcast since 2007. He advises and cautions to new entrants into the market and notes that prices are going up much faster than wages, putting people at a disadvantage. He discusses how he views that current state of the real estate market, how he invests in real estate, and his approach to servicing clients. He mentions that it is okay to be you and to bring your personality to your business.

[00:01 – 14:51] Opening Segment

•  Aaron teaches people how to invest passively in commercial real estate, specifically apartment buildings and self-storage syndications
• He is also involved in hard money lending, helping clients get into the California market
• He poses a direct advice
  • Pick the neighborhoods that you want to be in
  • Pull a list of free and clear properties

• Those opportunities have since decreased in quality and niceness
• The key to success for those looking to invest in real estate is diversification into different stated with better economic conditions
  • Florida is one of the most popular states for investment, but there are risks involved

• Wages are increasing rapidly in Florida, making it difficult for contractors and laborers to make a living

[14:52 – 15:30]

• Aaron states that the California price crash made it difficult to make deals because of increased regulations and increased costs
• There are opportunities for multifamily housing, accessory dwelling units, and converting garages into accessory dwelling units
• Aaron discusses how real estate investors are always looking for opportunity and confident that there is always opportunity available
  • The opportunity to add units to affordable housing in California, and this can be done by leveraging existing infrastructure
  • There is a lot of pressure on local governments in California to create affordable housing, but there is still hope that they can succeed

• Opportunity zones provide tax breaks for businesses and investors who are located within them, and they have a 10-year timeline

[15:31 – 34:32] Closing Segment

•  Quick break for our sponsors
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• What is the best investment you’ve ever made other than your education?
  • Aaron says that his best investment was converting to a ROTH ang buying his first piece of real estate in a self-directed IRA.

• What is the worst investment you’ve ever made?
  • He says that the worst investment that he’s ever made was a rental debt was a learning house that has a tenant in it, and the tenant was a hoarder. Then there was a flood that happened where he lost a total of #20,000 worth of trees.

• What is the most important lesson that you’ve learned in business and investing?
  • Aaron discusses what is important to him is, it’s okay to be you. He shares that, one of the concepts he teaches is a Property Radar which is the, “The chocolate versus the peanut butter where the chocolate being who you are, who you bring to the table and peanut butter being the data. When those two things come together is when Resses is made.”

Connect with Aaron Norris through Twitter, LinkedIn, and visit his website http://www.thenorrisgroup.com/ See my nerdiness on Forbes.com, BiggerPockets.com, and Think Realty Magazine!

Invest passively in multiple commercial real estate assets such as apartments, self storage, medical facilities, hotels and more through https://www.passivewealthstrategy.com/crowdstreet/

Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your own terms.

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Tweetable Quotes:

“When you teach people how to educate, the goal is to get them to the point where they’re successful enough to where they need hard money.” – Aaron Norris

“You have to understand the dynamics going on in these areas and floor, big state. I mean, depending on where you decide to invest, there’s a lot of nuances. You really have to understand environmental. You really have to understand flood zones and what that might look like.” – Aaron Norris

“If you’re a homeowner and you’re looking to live in the space, you can even convert the garage to a junior accessory dwelling unit, which is attached to the house and have three different units, you just have to live in one. It’s a game changer.” – Aaron Norris