How to Start Investing in Real Estate – Knack 4 Business with Fred Crouch

Hosts Bernie Franzgrote & Wayne Pratt

GROWTH CATEGORY: Real Estate

Commercial realtor Fred Crouch joins Knack 4 Business to break down real estate investing for beginners — red flags, co-tenancy, and the buy-and-hold strategy.

Most people think real estate is for someone else. Someone with more money. More connections. More time. Fred Crouch has spent his career proving that wrong. On this episode of Knack 4 Business, Fred walks first-time investors through exactly what it takes to get started — and exactly what to avoid.

Watch the full conversation here:

WHO THIS IS FOR

This episode is built for SMB owners, solopreneurs, corporate escapees, and leaders building systems for long-term wealth. If you've been curious about real estate but haven't made a move yet — this is your starting point.

Key Lessons

1. If it sounds too good to be true, it is.

Fred has seen it too many times. A developer promises 25% returns in three months, fully secured by a mortgage. What the investor doesn't know is that they're holding a sixth or seventh charge on a project that's already oversubscribed. By the time things go sideways, there's nothing left to recover. The lesson is simple. Avoid any investment that leads with an outrageous return. Invest in bricks and mortar. Invest in something real.

2. One property. Held long enough. Changes everything.

Fred's buy-and-hold strategy is the foundation of his teaching. Buy a property at 25 or 30 years old. Find a tenant. Let natural appreciation do the work. A $300,000 property held for 30 or 40 years could conservatively be worth $550,000 to $600,000 by retirement — paid for largely by your tenants. You don't need a large portfolio to build meaningful wealth. You need one good decision made early enough.

3. Co-tenancy agreements fast-track your portfolio.

Saving a full down payment while property prices climb is a losing race for most young investors. Co-tenancy agreements solve that problem. You pool resources with like-minded investors. Everyone contributes. Everyone owns a percentage share. The agreement — when written well — covers every scenario. And unlike joint tenancy, your share transfers to your estate. It's one of the most underused tools in real estate investing and one of Fred's strongest recommendations for beginners who want to move faster.

Practical Steps

• Build your team first. Before you make any offer, get a lawyer, an accountant, and an investment realtor who knows the market you want to enter. Ask for referrals from people who already own investment property.
• Start tangible. Buy something you can drive past. A townhouse, a row unit, a small condo. Get into the market at a level you can manage. Don't let perfect be the enemy of started.
• Explore co-tenancy. If you don't have a full down payment yet, find like-minded investors in the same position. Pool your resources. Get into the market now instead of waiting years while prices climb.

About the Guest

Fred Crouch is a commercial realtor and the founder of Gentry Real Estate Services and Gentry Learning. He helps first-time investors and seasoned buyers make smarter property decisions. Through his courses and the Property Wizard podcast, Fred breaks down the complexity of real estate into steps anyone can follow. He believes experience is the best teacher — and that sharing his experience can shorten your journey considerably. Reach Fred directly at fred@gentryres.com.

Listen on Audio

🎧 Listen: tinyurl.com/ytvpxhdc 📚 Other episodes: tinyurl.com/3rhcpmyd

FAQ

Q: Do I need a lot of money to start investing in real estate? Not necessarily. Fred recommends starting at whatever level you can manage — even a single condo or townhouse. Co-tenancy agreements also let you pool resources with other investors so you can get into the market sooner with less capital upfront.

Q: What's the difference between passive and active real estate investing? Passive investors buy shares in companies that hold real estate — like REITs — and leave the decisions to others. Active investors own the property directly. Fred recommends active and tangible investing for beginners who want to feel the ownership and build equity over time.

Q: How do I know if a real estate deal is legitimate? Fred's rule is straightforward. If the return sounds too good to be true, it probably is. Stick to tangible properties, get referrals for your team, and avoid any deal that relies on a long chain of mortgages or promises outrageous short-term returns.

K4B Acknowledgements

A big thank you to the people who make Knack 4 Business possible:

Carl Richards — Podcast Solutions Made Simple

Fred Crouch — Property Wizard

Jovan Strika — @Hive

Melanie Webber — Business Partner