Apartment Building Investing with Michael Blank Podcast

There’s a lot of pressure on high school grads to go to college. Without a degree, the story goes, we can’t earn good money. But Cody Davis realized he didn’t need earned income if he could make passive income with real estate. And he didn’t let little things like being 19 years old and having no money or experience get in his way.

Cody is a broker with Blackwell Real Estate in Tacoma, Washington, and multifamily investor with a portfolio of 24 units. And he just turned 21. Cody dropped out of college to get his real estate license just two years ago, and since then, he’s closed on two 12-unit deals—without using any of his own money!

On this episode of Apartment Building Investing, Cody joins me to explain how he overcame the pressure to go to college and what inspired his mentor to take Cody on. He shares his unique approach to cold calling, discussing why sellers take him seriously despite his youth and how he’s building the skill of raising money. Listen in to understand how Cody used seller financing to do his first two deals and find out how he achieved financial freedom before he was old enough to buy a drink.

Key Takeaways

How Cody got interested in real estate

  • Family friend gifted Rich Dad Poor Dad
  • Make good money without college

How Cody overcame the pressure to fit in with friends

  • Don’t need degree if earning passive income
  • Partying = unnecessary distraction

How Cody found a mentor in Robert Slattery

  • DM re: real estate post on Facebook
  • All-in and willing to work for free

What Cody would have done without a mentor

  • Plan to house hack duplex
  • Work multiple jobs to qualify for loan

Why Cody is willing to broker deals for others

  • Didn’t qualify with banks early on (cash poor)
  • Learn from investors and their peer group

How Cody overcame the fear of cold calling

  • Predict worst-case scenarios
  • Gets easier with repetition

Cody’s first $1.1M 12-unit seller financing deal

  • Raise 10% down and partner with mentor
  • 30-year mortgage with no balloon

Why sellers take Cody seriously despite his age

  • Phone conversation before meet in person
  • Age irrelevant if know how to negotiate

Cody’s second $680K 12-unit seller financing deal

  • Value-add opportunity (off-market)
  • Promissory note for $120K down
  • $2K/month cashflow from day one

Cody’s experience with the Law of the First Deal

  • Earned credibility with investors
  • Build skill to raise equity for others in office

How sellers benefit from seller financing

  • Splits up tax liability over number of years
  • Income without headache of management

Cody’s advice for aspiring multifamily investors

  • Get good at numbers, learn Excel
  • Show how deal is win-win for everyone

Connect with Cody Davis

Cody on Instagram

Email cody@blackwellre.com

Resources

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki

CASHFLOW Board Game

The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Timothy Ferriss

Be Obsessed or Be Average by Grant Cardone

Robert Slattery at Blackwell Real Estate

BiggerPockets Podcast

Gino Wickman on Apartment Building Investing EP243

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_257.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT