Reader Profile: Advice from a Buyer-Seller-Landlord-Developer

One of the core tenets of RSRE is that people learn best when they learn from each other. There’s nothing like hearing the inside scoop from a fellow real estate wrangler, and with that in mind I try to offer personal stories and profiles.

Jessica is the founder of Revive Hospitality, a Taos, NM based group of companies that span the real estate spectrum. Within the Revive umbrella, she and her husband own a construction business that builds one of a kind homes and developments. She facilitates real estate sales (but not as a realtor), and most recently she has started renting out her special properties in Taos and Hawaii as vacation rentals. On top of all this, she is a mother of six (!). I met Jessica through RSRE and was lucky enough to hit the town with her last month while she was visiting San Francisco. We laughed and bonded over sushi and sake, and as I got know her it became clear she has a lot of experience and wisdom, which I asked her to share with the RSRE readers.

Jessica reflected on the biggest things she’s learned over the course of her real estate career. While not everyone plans to become a serial investor, the lessons she’s learned certainly can help anyone contemplating diving into a home purchase.

Here is her advice:

1) Hire help – this will free up your time so you can be creative. It’s hard to find the right person, but when you find them it’s so incredibly worth it.

2) Always have a backup plan. Having alternate sources of income is important, whether you’re a real estate investor or work a 9-to-5 job. You never know what circumstances will dictate, so you must have a fallback. Keep your teacher’s license (my background is in teaching), or whatever your fallback is.

3) Have a large emergency fund of 8-12 months’ living expenses. Build this fund before you start investing. It’s better to go slow and steady, learning from the mistakes of the recent crash, than to get ahead of yourself in spending.

4) When considering buying a house, you should feel inspired. You have to love what you’re buying, because you’re committing to a huge amount of debt for the sake of owning this house.

5) But at the same time, even if you love the house you have to be detached in order to make smart decisions. Remember that you can make your nest anywhere. Ultimately, it’s just a house. It was hard for me to move out of the house where I raised my kids, but I couldn’t let my sentimentality keep me from making the right decision.

6) Never forget that marriage is a business partnership in the eyes of the law. Nobody teaches you this, but the fact is that once you’re married you are essentially business partners. Your credit scores are linked, debt brought into or created during the marriage is attached to you both, and mortgage lenders will look at you as a couple, not as individuals. [Editor's note: That's why you should never, ever get married without knowing your partner's credit score and financial profile. Even better, sit down and have an honest talk about your attitudes towards debt, investment, and money management.]

7) I consider myself a steward of the homes I own or represent. Some people view property ownership and real estate investing as somehow selfish or self-serving, but I really see what I do as a service (while still making a living). For example, I’ll put money into a historic home to preserve its beauty and make it habitable, and then I pass it on to the next person. I’m a steward because I’m able to provide a beautiful home for someone and fulfill their dreams. I truly believe it can be a win-win situation when there’s a real connection between buyer and seller.

Editor’s note: I love Jessica’s philosophy of stewardship – she’s a savvy businesswoman, but she also stays connected to the tangible service she provides.

You can see Jessica’s vacation rental properties in Taos here and here, and in Kaua’i here.