Financial Freedom and Lifestyle Design thru Real Estate with Jonathan Hayek

How did Jonathan transition from teaching to real estate investing, and what key lessons did he learn along the way?

Jonathan started as a special education teacher but felt limited by his earning potential. He began investing in real estate by flipping houses, using private money and credit cards to finance his first deals. After finding success flipping, Jonathan transitioned to buying small multifamily properties. Jonathan shifted to larger commercial real estate like office buildings and industrial properties when he wanted more freedom to spend time with family. He made mistakes along the way, learning tough lessons about the importance of due diligence. Now Jonathan pursues highly functional “set it and forget it” commercial assets to focus on his role as a husband and father.

Jonathan Hayek worked in the teaching and non-for-profit world for ~10 years. He decided to live the life of an entrepreneur to pursue financial and time freedom. Now an owner/operator of multi-family and commercial real estate as well as the host of The Source of Commercial Real Estate Podcast, the go-to source for learning about commercial real estate (particularly outside of multi-family!

[00:02- 00:07] Scrappy First Deals:

• Financed first flips through inheritance money, private lenders, and credit cards
• Early success built confidence to take on more projects
• He was able to attract more financing for additional deals

[00:08 – 00:15] ]Painful Due Diligence Lesson:

• Why Jonathan felt “invincible” and bought a house with major water issues
• Learned to thoroughly vet properties before purchasing
• Why it’s okay to cut losses instead of throwing good money after bad

[00:16 – 00:20] From Small Multifamily to Commercial:

• Jonathan wanted more family time so looked into larger commercial properties
• Tried an office building, leasing up small spaces to local businesses
• He settled on industrial buildings which require less management

[00:21 – 00:27] Creating Value in Industrial Assets:

• Jonathan pursues industrial properties with expiring leases below market rent
• Signs longer leases at higher rents, adding major value
• Refinances to get his capital out and repeats the process

[00:28-00:30] Lifestyle Over Empire Building:

• He now focuses on easily managed assets to devote time to family
• Industrial buildings have low maintenance compared to other asset classes
• Quality assets have high demand from trade companies needing workspace
• Book recommendation: How to Win Friends and Influence People by Dale Carnegie

Connect with Jonathan:

https://www.thesourcecre.com/contact-us/

Quotes:

“The best confidence builder is having success. So you have some success on those first couple of deals, build your capital reserves a little bit, build your reputation, your track record, and then you can attract more capital.” – Jonathan Hayek

“I am inspired by people that live life on their terms, that know how to give back, that know how to inspire others, and can live life on their terms in a kind and respectful and thoughtful way.” – Jonathan Hayek

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