Apartment Building Investing with Michael Blank Podcast
MB 048: How I Closed My First 22-Unit Apartment Deal in 3 Months (With Ed Hermsen)

For many of these episodes, I bring on someone who is already very successful in multi-family investing and I will continue doing so because there is a lot to learn from these people! However, I also really enjoy talking with relatively new investors about their first deal since that first deal is always the hardest, and it’s the most important step you can take towards achieving your financial goals.

This week, I welcome to the show Ed Hermson. In this episode, you will find out how Ed was able to close his first 22-unit apartment building deal just 3 months after getting started, and how long it will take for Ed to achieve his goal of $10,000 per month in passive income!

Key Takeaways

[2:26] Ed’s backstory

  • Worked in Mortgage Banking for 14 years
  • His commission pay structure made him nervous
  • 2008 was an eye-opening experience

[6:22] Why Ed decided to stop investing in single family housing

  • Not enough short-term income to justify the work/hassle

[7:36] Why Ed decided that Multifamily was a good fit

[9:36] What stops people, (including Ed), from getting that first deal done

[10:43] How Ed overcame his monetary limitations

[12:12] Why Ed decided to focus on smaller markets

  • Less competition

  [18:21] How Ed found his first big deal

  • The power of property managers and why you should be nice to them

[23:21] Why paying for an appraisal on an apartment complex is usually a waste of money

  • The Single Family Investing Mindset

 [24:29] Ed’s advice on building an investment team

  • Choose people with diversity of experience

[25:34] How you can find the time for multi-family investing while working full-time

 [36:53] Ed’s advice to new investors

  • Find 3-4 individuals that have skills/knowledge that you don’t have
  •  Start putting together sample deals with deal analyzer

[38:19] Why you should focus on building relationships with bankers and property managers (instead of just realtors)

Connect with Ed Hermsen

ed.hermsen@mtggroup.com


This week’s guest is Bill Manassero. Bill is truly one of the world’s good guys. He’s has done a lot in his life and most recently he spent 11 years as a missionary to orphans, abandoned and at-risk children in Haiti.

At the age of 60, Bill realized that he was closing in on the age of retirement and he wasn't financially ready for it! Other than a little money in an IRA account and social security benefits Bill didn't have a method of generating income. Being a Walmart greeter didn't appeal to him so he started looking for ways to generate passive income. After throwing out a few ideas, Bill chose real estate and he decided to go big. Bill’s goal is to control 1000 doors in 6 years. He’s 3 years in and is well on his way! 

Since finding some success in real estate Bill has decided to help others who like him are getting close to retirement and need to generate income. Bill started The Old Dawgs Network which began as a blog and is now also supported by a podcast!

In this episode, Bill shares his inspiring story as well as the "why" behind his goal. Bill has a very strong “why” and we discuss what that is for him and why it's so important you find your "why". I hope you all enjoy this episode as much as I did!

Key Takeaways

[8:41] Why Bill chose multifamily investing to generate income

[12:50] Why Bill decided to focus on multi-family over single family real estate investing

  • Economy of scale
    • 1 insurance policy, 1 loan etc. for multiple units
  • Less risk of 100% vacancy

[15:09] Factors Bill considered when assessing his first big deal

  • Identified key markets
    • Great job/population growth
    • Make sure the place has landlord-friendly laws
    • Rent to value ratio

[19:28] How Bill used the inspection process on his fist “big deal” to get a better price

[27:01] The importance of identifying your “why”

[31:13] How Bill broke down his big goal into manageable steps

  • Accomplished each step before moving on to the next

 [32:40] The importance of remembering that real estate investing is about more than just money

 [34:23] Why Bill decided to move into his apartment building

[37:48] The inspiration behind “The Old Dawgs Network”

Connect with Bill Manassero:

Old Dawgs REI Network

Twitter

Resources mentioned

Old Dawgs REI Network Blog

Old Dags REI Podcast


In Gary Keller’s book “The One Thing” he asks the following question; What's the ONE thing you can do such that by doing it everything else will be easier or unnecessary? In this podcast I pretty much talk about one thing, that’s getting your FIRST deal. No matter the size, after you’ve done your first deal, the subsequent deals will be much, much easier.


This week I’m joined by Brooks Everline from Hagerstown, Maryland. Brooks is Truck Driver with UPS and just did his first deal in March of 2016! Brooks started with a fourplex before moving on to some small apartment building deals. I get that when you have a full-time job, finding the time and energy to do your first deal can seem daunting, but that's no excuse! Brooks sais that all you need to accomplish something is to make sure that your "why" is stronger than your why not. I couldn't agree more!

Key Takeaways:

[8:20] Most of the time our biggest regret is not doing more, sooner.

[8:50] Strategies for finding your first deal

[23:20] Brooks second deal

  • The importance of constantly searching and making MANY offers

[27:21] The only thing stopping you from taking the first step is yourself

[30:20] Take your biggest, scariest task and do that FIRST

Connect with Brooks:

yournextplaceinvestments@gmail.com

Phone: (301) 465-9047


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