This interview is with Keith Sant, Founder & CEO at Kind House Buyers.

Keith Sant, Founder & CEO, Kind House Buyers

Keith, can you tell us a little bit about yourself and your background in investing? What piqued your interest in this field?

I have been actively involved in the real estate industry for many years and currently own 10 commercial properties and 25 residential properties. Growing up, I always had an interest in entrepreneurship and making investments. Even as a young child, I would buy candy in bulk and sell it to my classmates for a profit. As I got older, this interest turned into a passion for real estate investing. After graduating from college with a degree in business, I started working in the corporate world. However, I soon realized that my true passion was in real estate, and I decided to take the leap and pursue it as a full-time career.

What were some of the pivotal moments in your journey to becoming an expert in investing? Were there any specific challenges you faced and overcame?

A key turning point in my journey was buying my first commercial property. Although it was a significant risk back then, it ultimately paid off, boosting my confidence to keep investing in real estate. However, like any other investor, I have faced my fair share of challenges. One of the biggest obstacles I had to overcome was learning how to manage multiple properties efficiently. With each additional property came more responsibilities and tasks, such as dealing with tenants, maintenance issues, and financial management. It took some time to find a system that worked for me, but eventually, I was able to streamline my processes and effectively manage all of my properties.

You mentioned budgeting as a key personal habit for financial success. How do you apply this principle when making investment decisions?

I always thoroughly analyze the potential costs and returns. This means factoring in not just the purchase price of the property, but also ongoing expenses such as property taxes, insurance, and maintenance costs. By having a clear budget in place, I am able to make informed decisions that will ensure a profitable return on my investments.

You've shared your success with renovating and selling a fire-damaged property. How do you assess risk tolerance when venturing into new investment opportunities?

I always conduct a thorough risk assessment. This involves researching market trends, analyzing potential returns, and evaluating any potential challenges or risks associated with the property. For example, when I decided to take on the fire-damaged property, I carefully evaluated the extent of the damage and estimated the cost of repairs. I also considered the location and demand for properties in that area. By taking these factors into account, I was able to make an informed decision about whether or not the investment was worth pursuing.

Your approach to purchasing rental properties demonstrates a long-term investment strategy. What advice would you give to entrepreneurs looking to diversify their income through similar passive income streams?

My advice would be to carefully research and analyze potential rental properties before making a purchase. Look at factors such as location, market trends, and potential rental income. It's also important to have a solid understanding of the responsibilities that come with being a landlord, such as managing tenants and handling maintenance issues. In addition, I highly recommend having a strong financial plan in place. This means having enough savings or other sources of income to cover any unexpected expenses related to your rental properties. It's also important to regularly review and adjust your budget to ensure maximum profitability from your investments.

You've emphasized the importance of overestimating expenses and maintaining a buffer for unexpected costs. How do you determine an appropriate buffer amount based on different investment types and risk levels?

The appropriate buffer amount will vary depending on the type of investment and its associated risks. For example, a higher-risk investment may require a larger buffer to account for potential losses or unexpected expenses. On the other hand, a lower-risk investment may not need as much of a buffer. Ultimately, it's important to carefully evaluate each investment opportunity and consider all potential risks before determining an appropriate buffer amount.

Given your experience with both short-term flips and long-term rentals, how do you decide which investment strategy aligns best with a particular opportunity?

When evaluating an investment opportunity, I look at factors such as market trends, potential returns, and my own personal goals and timeline. For a short-term flip, I would consider whether the market is currently favorable for quick sales and if the property has the potential to be renovated and sold for a significant profit. On the other hand, for a long-term rental property, I would focus on finding a stable and desirable location with strong demand for rental properties.

You've successfully incorporated sustainable practices into your business operations. How do you evaluate the financial implications of sustainable investing and its long-term impact on returns?

When evaluating the long-term impact of sustainable investing, it's important to consider the potential for tax incentives and rebates offered for eco-friendly upgrades. These can further offset any initial costs and result in long-term savings for the property. Additionally, incorporating sustainable practices can also attract eco-conscious tenants, which can lead to higher rental demand and potentially increased returns on investment.

Looking back at your investment journey, what is one key piece of advice you wish you had received when you were first starting?

If I could go back and give myself advice when I was just starting out, it would be to not be afraid to take risks. As an investor, there will always be some level of risk involved in any opportunity, but it's important to carefully assess and mitigate those risks rather than avoiding them altogether. Taking calculated risks can lead to great rewards and opportunities for growth.