Get to know
real estate investor, Luis Leiva of Culture Estate, and learn how he went from being a real estate agent to now owning the largest real estate company in Scotch Plains, New Jersey.
Who is Luis Leiva?
I can best describe myself as a fearless entrepreneur. I have found my calling in real estate. I started off as an agent and slowly found my niche in investing both for myself and my clients. I now own the largest real estate company in Scotch Plains where I teach my agents to have the same work ethic and vigor I have for this industry. I have found the greatest success in help and educating others who want to break into this business.
Culture Estate is an unstoppable movement. I would be downplaying it by calling it a real estate agency. I have never witnessed anything so powerful take place before my eyes. Culture can best be described as a center for growth and a breeding ground for ideas and we happen to sell real estate. Culture Estate has exploded by 1,200% since its inception in October 2016. We are quickly approaching 100 real estate agents and hope to be in multiple offices in the next few years.
What inspired you to begin investing in real estate?
I have always envisioned buying a house and fixing it since I was a little kid. I grew up moving from apartment to apartment and never thought my family would ever own a house. I tried buying a home when I was as young as 18 years old, but failed miserably. My father has always supported any idea I ever had and when I got the opportunity later on in my early 20’s, he helped me buy a four family house. I have learned a lot since then and I will never forget the valuable lesson I learned in my early years.
What has been your greatest accomplishment in real estate investing?
My greatest accomplishment as an investor has been retiring my parents as a result of successful investments. It has not been easy or perfect but I made that one of my first goals early on and I was able to do that for them. Since then, my greatest accomplishment has been teaching others how to invest and not make the mistakes I made as a rookie.
Why is having realtors on your team essential as an investor?
Realtors know the market and handle 95% of all buyers. A great agent is a value partner in any investing team. I find that since I have trained my agents on how to properly scout for deals, they are more efficient and successful as a result. I have teamed up with several of my agents to help get their investing careers started and they have always proven to be great assets.
Where do you see the future of investing going?
Investing is definitely all about sourcing your inventory. I have seen many changes and I see many more on the horizon. I feel the online portals, such as Auction.com, are definitely making it easier to invest in real estate. I see banks getting more transparent and buyers getting more access. I do think this model will catch on and there will be a day that you can buy any home without leaving your house. All the data and even a virtual reality walk through will be available to make an on the spot, sight unseen, decision. This will soon be common place.
What is Flipping on Faith?
Flipping on Faith is a real life show we made detailing everything that investors go through. Currently, we are working on episode 3 and we plan on making a lot more. The views have been amazing and we hope to one day get picked up by a major network. There was one episode where I took some of my new agents to see a house and we all left with fleas. We then showed what we went through to get rid of those little buggers. It was priceless and all caught on film!
Working with Auction.com
How long have you been working with Auction.com?
I have been buying from Auction.com since late 2015 and I have been doing presentations for Auction.com since early 2017.
How many properties have you purchased through the Auction.com platform?
I have purchased at least 25 properties, but I have introduced many of my colleagues to the site.
What about Auction.com made you think it would be a good place to find the kind of properties you want?
The ease of looking for properties and buying from anywhere. Plus, the platform is very user friendly.
What do you look for in a real estate investment?
Margin or rental income, but on top of all is location.
What due diligence did you perform before deciding on a property?
We do a drive-by and a thorough comp analysis.
Are you generally a buy and hold or fix and flip investor?
Mostly buy and hold, but I will do a flip if there is ample room and if it doesn’t require much work.
Have you flipped a property from Auction.com?
I have flipped properties through Auction.com both online and in sheriff sales.
Did Auction.com help make the process easier than traditional home buying methods?
Yes, all the info I needed was there and all I had to do was run my own comps.
How would describe the live auction experience?
Intimidating if you don’t know what you are doing. There are a lot of experienced people there who are not thrilled about you being there. On top of that, the announcer says a lot of things really fast and they can be very confusing. It’s like buying a house inside of a fish bowl in the middle of a packed stadium (weird analogy).
What advice would you give to novice investors interested in flipping homes?
Always double the construction costs in the beginning. The part that gets most new investors is the contractor who takes you for a ride or the budget what was done by someone unreliable.
To learn more about Luis Leiva, please visit Culture Estate and follow Luis on Facebook and Twitter.
