Apartment Building Investing with Michael Blank Podcast

When I went along on my real estate journey and—all of a sudden—apartments became the thing that I wanted, there was a level of excitement that I had not experienced before... I imagine myself owning many apartment buildings, and that’s the vision I’ve set for myself.’

In December of 2016, veteran Seattle police officer David Sweeney turned 53. After a 30-year career, he had reached the minimum retirement age, but David knew he could not stop working if he wanted his family to have a comfortable life. Looking for new options for himself and his family, he started exploring real estate. David liked the ring of ‘multi-family investor,’ so he started looking for duplexes, triplexes and fourplexes. By April, he had secured his real estate license to gain access to the MLS, and he spent the next five months evaluating 400-plus deals.

Though a few deals fell through, David was motivated by his goal. He refinanced his own home and pulled $380K—and waited for the right opportunity. By August, David had started thinking bigger, and when he came across a 24-unit property in Centralia, he made an offer that was accepted. Now David is looking for his next deal and looking to help other aspiring investors find deals of their own. Today he shares his process for analyzing deals and how he made the mindset shift from pursuing duplexes, triplexes and fourplexes to apartment buildings. He discusses the challenges he faced in getting a loan and how he leverages his commercial lender as a ‘second set of eyes.’ Listen in for David’s bold 2018 goals and his advice for aspiring investors around increasing your productivity through purpose!

Key Takeaways

 [0:40] The trigger that moved David to pursue real estate

  • Turned 53 last December (minimum retirement age)
  • Wanted new options for self, family

[2:15] David’s initial strategy

  • Consumed much info, liked idea of multi-family
  • Initial goal to purchase duplex, triplex or fourplex in western Washington

[4:32] How David moved forward toward his goals

  • Started shopping on real estate sites
  • Couldn’t find information he wanted
  • Secured real estate license in April
  • Evaluated 400 deals via access to MLS
  • Narrowed down to properties with potential cashflow
  • Used syndicated deal analyzer to determine offer

 [8:16] David’s mindset from April through August

  • Motivated by goal
  • Not too frustrated by deals that fell through
  • Refinanced house, pulled $380K
  • Waiting for right opportunity

[10:28] David’s shift to thinking big

  • Came across larger deal
  • Four duplexes vs. one apartment building
  • Benefit of dealing with one roof, contractor
  • Ventured into commercial financing
  • Experience expanded comfort zone

[15:58] David’s first deal

  • 24-units (16 1BR, 8 studio) in Centralia, WA
  • Came with 15-unit storage facility, single-family home
  • Listed at $1.325M, looked at cap rate in area
  • Offered $1.1M, took for $1.14M
  • Received real estate commission as well

[19:08] David’s goals for 2018

  • Buy 100-unit property
  • Learn more about raising money
  • Help other people find deals
  • Eventually become passive investor

[22:16] The challenges David faced in doing his first deal

  • Acquiring commercial loan
  • Getting insurance
  • Roof inspection

[24:28] How David’s first deal is performing

  • $3,700-$4,000/month in pocket (after expenses)
  • Increase property value

[26:57] David’s advice for aspiring real estate investors

  • Do more tomorrow that you did today
  • List your goals, take steps daily
  • Move from education to action
  • Productivity increases with purpose

Connect with David Sweeney

David’s Website

Resources

Syndicated Deal Analyzer

Think and Grow Rich by Napoleon Hill

Podcast Show Notes

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes


Analysis paralysis? A fear of failure? Too many other responsibilities? Procrastination? The idea that you’re not good enough?

What’s holding you back from FINALLY making the decision to live the life of your dreams? What if you could overcome these limiting belief systems, otherwise known as BS, and take action on your goals? What if you could totally crush it in 2018?

Rod Khlief is an authority in real estate, business and peak performance. He has personally owned and managed 2,000-plus apartments and homes, building more than 22 businesses in his 40-year career. But it wasn’t until he lost his shirt in the recession that Rod learned how to build a successful life that had richness and meaning—with a focus beyond himself. Now he combines his passion for real estate investing with his understanding of ‘the psychology of success’ to serve as one of the country’s top real estate investment and high-performance life coaches.

Today Rod shares how he came back from the experience of losing $50M and why he is a better person for it. He walks us through his goal-setting methodology, explaining how to develop a WHY for each objective and the value of finding images associated with each of your goals. Listen in for Rod’s insight around truly deciding, overcoming fears and discouragement, and taking action on your goals. Learn how to leverage the Dickens process to change your mindset and the value in realizing it’s not all about you.

Key Takeaways

 [1:31] Rod’s $50M seminar

  • Owned 800 C- single-family houses in Florida
  • High taxes, insurance minimized cashflow
  • Ugly, painful setback during recession

[5:05] What Rod learned from the experience

  • Giving to others provides richness, meaning
  • Success without meaning beyond self is empty

[9:17] Rod’s methodology around goal-setting

  • Write down everything you could possibly want in life
  • Material things
  • Skills to learn
  • Who you want to help
  • Put a number next to each item (how long to achieve)
  • Pick a #1 goal and your top three one-year goals
  • Write a WHY paragraph for each goal, include PAIN if not achieved
  • Find images associated with each goal to view daily

 [16:33] Rod’s insight around taking action on your goals

  • Identify your WHY and associated PAIN
  • Magnificent life on other side of comfort
  • Confidence comes from competence
  • Fear diminishes with action

[20:22] The value in truly deciding to change your life

  • Mindset is 80% of formula for success
  • Decision is critical
  • Tony Robbins’ Dickens process
  • Explore damage limiting belief caused
  • Stack 10X pain on top

[25:48] How to overcome discouragement (i.e.: lack of progress, losing a deal)

  • Get clear on what you want, why you want it
  • Revisit goals daily

[27:23] Rod’s advice around overcoming fears

  • Look at fear rationally, no basis in fact
  • Identify limiting belief, develop alternative
  • Eliminate self-imposed limitations

[32:30] The value of experiencing what you want

  • Harder to give up once you’ve had tactile experience

Connect with Rod Khlief

Rod’s Website

Rod’s Free Book

  • Text “Rod” to 41411

Multifamily Community on Facebook

Rod’s Podcast

Resources

Apartment Building Investing Episode 38

Tony Robbins: The Dickens Process

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes

Direct download: MB_088_-_Overcoming_Challenges_-_With_Rod_Khleif.mp3
Category:general -- posted at: 6:36pm EDT

It’s important for each of us to find our niche in the real estate investing space. Maybe you’re confident that commercial real estate is where you want to be, but multi-family just doesn’t feel like the right fit. There are other asset classes to consider, and one of the most recession-resistant is that of self-storage.

Hunter Thompson is the Managing Principal of Cash Flow Connections, a private equity group out of Los Angeles that connects passive real estate investors with opportunities in the commercial space, with a specific focus on mobile home parks and self-storage properties. Hunter has done 100-plus deals valued in excess of $350M.

Hunter got his start investing in stocks, but the lack of predictability in the market led him to focus on simpler investments with mitigated risk. After connecting with a network of like-minded individuals, he began investing in mortgage notes before branching out into other real estate asset classes. Today he shares what inspired him to invest in self-storage, explaining what makes the opportunity truly recession-proof. Hunter discusses self-storage value-add strategies, the benefits of self-storage as an investment, and how to find the best markets in the space. Listen in to understand what Hunter looks for in a sponsor, his approach to management, and his advice around next steps for aspiring self-storage investors.

Key Takeaways

[1:45] Hunter’s shift to real estate investing

  • Grandfather was successful businessman
  • Initial interest in stocks, too much volatility
  • European debt crisis inspired shift
  • Real estate more predictable, simple

[4:20] Hunter’s first real estate deal

  • Attended 3-5 networking events/week
  • Found small group of likeminded individuals
  • Invested in mortgage note

[5:43] How Hunter got into self-storage

  • By 2013, good deals hard to find in traditional asset classes
  • Data analysis inspired focus on recession-resistant assets
  • Self-storage used during times of economic change

[7:28] The benefits of investing in self-storage

  • Many ways to add value to property without taking on additional risk
  • Can add $1M of value with U-Haul, tenant insurance and merch
  • Sticky tenant base allows for 6% rental increase annually

[10:13] The best markets for self-storage investment

  • Identify undersupplied markets (i.e.: southeast US)
  • Utilize data from CoStarLoopNet or Yelp

[12:06] What Hunter looks for in terms of underwriting

  • Expense ratio of 40% (or even below)
  • Price per unit of $12-14K
  • Price per ft2 of $65-110
  • Climate-control as upsell

[13:26] Hunter’s approach to management

  • Onsite management important component of A-class property
  • Sponsor hires either entrepreneurial property manager or retired couple

[15:28] What Hunter looks for in a sponsor

  • Done $100M-worth of deals
  • 10 years of experience
  • Look at pro forma
  • Background check, references

[17:06] A case study of Hunter’s ideal investment

  • A-class property in Woodstock, GA
  • No value-add strategies in place
  • Previous owner just expanded by 222 climate-controlled units
  • Market 90% occupied, property 60% occupied
  • Adding ancillary income items = additional $4K/month

[19:44] Hunter’s take on trends in self-storage

  • On-demand services
  • Automation
  • Increase in demand as affluent baby boomers downsize

[21:36] Hunter’s advice around next steps for aspiring investors

  • Leverage experience of someone in game for 10+ years
  • Passive investing affords freedom to do what you love

[23:03] What Hunter is excited about

  • Construction boom
  • Unique opportunities to buy from sophisticated groups

Connect with Hunter Thompson

Cash Flow Connections

Cash Flow Connections Real Estate Podcast

Free eBook: Little Boxes, Big Profits

Resources

CoStar

LoopNet

Invest with Michael

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes

Direct download: MB_087_-_Self_Storage_-_With_Hunter_Thompson.mp3
Category:Commercial Real Estate -- posted at: 1:44pm EDT

‘At the end, you’re trying to find your highest and best use. How can you effectively create value based on your limited time?’

Perhaps you’re interested in getting into multifamily, but syndication is not for you. If your strengths lie in networking and raising money, you can get into apartment building investing as a general partner who specializes in soliciting capital.

Based in Hawaii, Lane Kawaoka still works his day job as an engineer, but he is quickly growing passive income streams via multi-family investing. After graduating from college with a degree in engineering, he got a job in construction management that required a lot of travel. In 2009, Lane bought a primary residence in Seattle—but he was never there. He decided to rent out his A-class property, and the cashflow generated from that enterprise inspired him to purchase more.

From there, Lane expanded his single-family portfolio, eventually discovering turnkey rentals. Today he is pursuing multi-family, recently landing his first 190-unit deal. But Lane is working deals from a different angle, coming in as the general partner who specializes in raising capital. On this episode, he shares his unique multi-family strategy, explaining how his Simple Passive Cashflow blog and podcast position him as a thought-leader in the space and afford the opportunity to network. Listen in to learn how Lane is compensated as the money-raiser, and hear his advice for aspiring entrepreneurs about building a platform that establishes your credibility as a multi-family investor!

Key Takeaways

[2:30] How Lane got into real estate

  • Engineer in construction management
  • Rarely at primary residence, traveling for work
  • Decided to rent, then purchase more
  • Stumbled on turnkey rentals
  • Working to build passive income streams

[6:11] Why Lane made the shift to multifamily

  • Tired of ‘managing the managers’
  • Realized single-family not scalable

[7:33] Why Lane was slow to get started in multi-family

  • No substantial net worth, experience
  • Thought had to be lead
  • Finally paid mentor to help

[8:33] The four parts necessary to do a multi-family deal

  • Net worth
  • Raising money
  • Experience
  • Finding deal

[9:24] How Lane leverages his blog and podcast

  • Tired of answering same questions about single-family
  • Started blog/podcast to address those questions
  • Good avenue for building relationships with like-minded people
  • Platform adds to credibility

[10:20] Lane’s approach to finding deals

  • Slow start (18 months)
  • Contact junior associates on brokerage websites

[11:58] Lane’s first multi-family deal

  • Came together in last six months
  • 190-unit in Texas
  • Came in as passive investor

[13:36] Lane’s multi-family strategy

  • Not interested in being syndicator
  • Multi-family game so big, specialization is necessary
  • Talent lies in raising money

[15:09] How Lane is compensated as the money-raiser

  • Receives promo raise rate
  • Get in as general partner (passive income stream)

[15:55] Lane’s strength in accessing capital

  • High net-worth network
  • Would rather spend time on podcast than analyzing deals

[17:36] Lane’s multi-family strategy moving forward

  • Build syndication business, portfolio
  • Get people out of ‘Wall Street roller coaster’
  • Raise capital, invest alongside

[19:37] Lane’s advice for aspiring entrepreneurs

  • Build track record
  • Create platform as thought-leader (video, audio, blog, meetups)
  • Find your strengths and double down

Connect with Lane Kawaoka

Simple Passive Cashflow

Email lane@simplepassivecashflow.com

Resources

Bigger Pockets

LoopNet

Invest with Michael

Podcast Show Notes

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

  • Download
  • Text “secretbook” to 44222

Review the Podcast on iTunes

 


So you want to get into multi-family investing, but you don’t have the money or the track record. Maybe you think that baby steps is the way to go, learning the game through single-family rentals or managing a small complex on your own. But if you have the right team, you don’t need to have $5M in the bank or 15 years of property management experience. You can serve as the quarterback and focus your energy on putting together deals, while your mortgage broker, property management company, and general contractor execute the playbook.

Devin Elder was born and raised in San Antonio, Texas. After graduating from UT-San Antonio with a degree in business, he went the corporate route, working in sales and operations for several area companies. But with each promotion, Devin lost a little more time and a little more autonomy. Then he got fired. In that moment, Devin vowed to find an alternative. At about the same time, Devin bought, renovated and refinanced his first single-family rental. Initially skeptical of real estate as a viable investment, he soon realized that the cashflow from rental properties could be his way out.

Two years and 20 doors later, Devin quit his last corporate job and became a full-time investor. Since then, he has shifted his focus to multi-family, working his way from a six-unit that he managed himself to a 75-unit to a 192-unit. Today Devin shares how a desire to scale his real estate business inspired the shift from single- to multi-family and why he takes pride in having a positive impact on the community. He explains the initial lack of confidence that held him back from pursuing multi-family and how he overcame that with the right peer group and a ‘someday is now’ philosophy. Listen in to understand why Devin would pursue entrepreneurship sooner if he could do it all over again, and hear his advice around ‘borrowing credibility’ to jump-start your multi-family business!

Key Takeaways

 [2:33] What inspired Devin to leave the corporate world for real estate

  • Climbing corporate ladder, lost time/autonomy
  • Giving his all, got fired
  • Vowed to find alternative
  • Single-family investment proved viable

[5:00] Devin’s initial strategy

  • Acquire enough cashflow to cover bills
  • Put team together, several single-family rentals
  • 20 doors in two years
  • Moved to tears on last day of work

[7:59] Devin’s shift from single- to multi-family

  • Wanted to scale business (5X cashflow)
  • Realized multi-family was more feasible
  • Banks willing to lend (established business model)

 [9:37] Devin’s multi-family starting point

  • C-area six-unit bought, managed himself
  • Wasn’t ready to take other people’s money
  • Friends from local mentor group encouraged bigger deals

[12:17] Devin’s second multi-family deal

  • 75-unit, deep value-add
  • Unsafe building, occupancy low
  • Capital raise with 11 investors
  • $1.2M renovation

[15:46] Devin’s take on working your way up in multi-family

  • Jump into 80-plus units
  • 5-80 units is ‘no man’s land’
  • Larger project allows for staffing

[16:59] Devin’s advice to his younger self

  • Multi-family is way to go
  • Hoard your money to get first deal done
  • Second will follow in quick succession

[18:06] Devin’s current multi-family deal

  • 192-unit in nicer area
  • 8-10% cash-on-cash return
  • Equity multiple of two over five years

[19:27] Devin’s advice to aspiring real estate investors

  • Employ ‘borrowed credibility’
  • Build team with experience, track record
  • Act as quarterback, specialize in putting deal together

[22:47] Devin’s failures

  • Lost own money on flip house, improved systems
  • Counts not pursuing entrepreneurship sooner as failure

[24:00] How Devin overcame a lack of confidence

  • ‘Someday is now’
  • Quitting job as mental hurdle

[24:52] Devin’s AHA moment

  • Desire to create life he enjoys every day
  • Not working toward ‘someday’

[25:33] What Devin is excited about

  • Making positive impact on community through multi-family
  • Rewarding to give investors good return
  • Rehab of property impacts neighborhood

Connect with Devin Elder

DJE Texas Management Group

Resources

Partner with Michael

Invest with Michael

Podcast Show Notes

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes


“I had this moment where I realized, ‘No, I’m not going to be the CEO of somebody else’s dreams. I’m going to be the CEO of my own dreams.’ I declared that day that I was never going to be an employee again.”

Tamar Mar is an adventurer at heart. She spent 20 years in the startup and small business arena, working as COO for prominent companies in the FinTech and real estate brokerage space. After making that decision to be the CEO of her own dreams, Tamar became what she calls a ‘business opportunist,’ building out her real estate portfolio and investing in small businesses like The Fitness Shop, a high-end specialty fitness equipment retailer.

Tamar invested in her first property at the age of 19, and she has owned rental properties for 15-plus years. From purchasing homes on auction to fix-and-flips to large-scale renovations projects, she has a keen eye for evaluating deals. This year, Tamar has shifted her focus to the acquisition of underperforming commercial and multi-family.  Today she shares how she made the shift from single- tomulti-family real estate, her approach to landing the first deal, and how she has become a ‘capital magnet.’  Listen in and get inspired to dream big and ‘take massive stinking action every day.’

Key Takeaways

[3:06] How Tamar got involved with real estate

[5:52] Tamar’s first real estate strategy

  • Got real estate license for access to properties
  • Purchased homes on auction, sight unseen

 [6:40] Tamar’s shift from single- to multi-family

  • Pursued single-family for three years
  • Learned about syndication
  • Could use operations expertise from startup world

[7:24] Why people are intimidated by multi-family

  • SEC regulations, working with attorneys
  • Raising capital

[8:04] What inspired Tamar’s shift to multi-family

  • Ambitious goal of $250K in annual passive net income
  • Couldn’t scale up quickly enough with single-family (100-250 doors)

[9:03] Tamar’s approach to landing her first multi-family deal

  • Studied multi-family forums on BiggerPockets, Michael’s Syndicated Deal Analyzer
  • Practiced analyzing deals on LoopNet
  • Began networking, building out team
  • Found great deal, put in offer
  • Landed 15-unit complex but didn’t have capital

[12:05] How Tamar raised the capital to fund her first multi-family deal

  • Needed $325K ($825K purchase price)
  • Additional capital for maintenance
  • Reach out to friends/family, networking groups
  • 6 investors (4 existing relationships, 2 new)

[14:51] How the project is performing so far

  • Secured property manager in Spokane
  • Rents above $300/door when purchased
  • Renovating all units, increasing price to market rate

[16:15] Tamar’s exit strategy

  • Ten-year hold with refinance in year two or three
  • Return 70-80% of investors’ original capital with refi (if not more)

[16:57] How the Law of the First Deal is impacting Tamar

  • Broker approached with off-market deal on 23-unit
  • Tamar walked away during due diligence
  • Broker contacted with 16-unit just hitting market
  • Landed 16-unit, walk-through tomorrow

[21:23] How Tamar’s multi-family success has shifted her perspective

  • Reevaluating goals, plans to secure 100 units by 2018 (with additional 50/year moving forward)
  • Went from three to 33 units in six months

[22:15] Tamar’s AHA moment

  • Christmas week of last year, in talks to become CEO of company back East
  • Declared independence, not willing to be ‘CEO of someone else’s dreams’

[24:06] Tamar’s advice to her younger self

  • Dream way bigger, earlier

[25:03] Tamar’s advice to aspiring multi-family investors

  • Pursue new knowledge
  • Follow in footsteps of people on path you want to take
  • ‘Take massive stinking action every day’

[26:22] What Tamar is excited about moving forward

Connect with Tamar Mar

Marota Group

Email tamar.mar@marotagroup.com

Investing for Life Podcast

Resources

The Millionaire Real Estate Investor by Gary Keller, Dave Jenks and Jay Papasan

BiggerPockets

Syndicated Deal Analyzer

LoopNet

Podcast Show Notes

Coaching with Michael

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes

Direct download: MB_084__Be_The_CEO_of_Your_Own_Dreams__with_Tamar_Mar.mp3
Category:Commercial Real Estate -- posted at: 11:15am EDT

What is your Stupid Human Trick?

We all have a unique ability that seems incredible to others. The trick is figuring out what it is that you are particularly good at and using those strengths to craft the processes and systems that capture wealth.

Cashflow Ninja M.C. Laubscher came to the US from South Africa in 2001 with a backpack and $500. He played competitive rugby and learned the real estate business via experience, buying his first property at the age of 21. M.C. befriended a wealthy multifamily investor who became his ‘accidental mentor,’ asking M.C. to serve in several different capacities from maintenance to leasing to property management to acquisitions. This education served him well, giving M.C. invaluable insight into the world of the wealthy and an understanding of all the moving parts of real estate. Now he is the President and Chief Wealth Strategist of Valhalla Wealth, a wealth management firm that leverages the Infinite Banking Concept to help clients co-author a plan for achieving financial security, independence, freedom and significance.

M.C. is also the host of Cashflow Ninja, a popular business and investing podcast that seeks to empower people to grow and protect their wealth in the new economy.  Today M.C. shares the best investment opportunities out there that combat wealth destroyers, why people struggle financially, and his advice for investors who want to break the mold. Listen and learn how to determine the wealth-building vehicle that’s right for you and the importance of investing in your own health, relationships and education. You are your own greatest asset, and M.C. is here to inspire you to reach your potential through multifamily investing!

Key Takeaways

 [2:48] How M.C. got involved in real estate

  • Read Rich Dad, Poor Dad
  • Bought first property at age 21
  • Befriended wealthy multifamily investor

[5:14] What surprised M.C. about ‘the world of the wealthy’

  • Complexity of determining overall plan

[6:36] M.C.’s take on the best investments out there

  • Combat wealth destroyers (taxes, inflations, commission/fees)
  • Real estate
  • Insurance products

 [10:05] Why people struggle financially

  • Outdated education model
  • Doesn’t empower people, teach skills to thrive
  • Lack of financial education
  • Outsource wealth-building
  • Conventional model set up to fail
  • Current environment (government debt, bankruptcy)

[14:08] M.C.’s advice to people who want to break the mold

  1. Be crystal clear about what you want (economic independence number)
  2. Determine why it matters
  3. Decide who you need to become
  4. Create systems/processes to capture wealth
  5. Put wealth into something that provides cashflow
  6. ‘Rinse and repeat’

[19:45] The benefits of investing in insurance products

  • Safe, secure, growing and liquid
  • Ability to borrow 90% from policy, put into real estate investments
  • Taxes on seed, not harvest

[23:07] How to figure out which vehicle or process is best for you

  • Focus on one thing in beginning
  • Once hit number, look at diversifying

[26:26] M.C.’s lowest depth of misery

  • Sports background prepared to absorb enormous disappointment
  • Sports injury, failed business deal and relationships fell apart all at once
  • Learned due diligence

[28:56] M.C.’s aha moments

  • Invest in self as life-long learner
  • Continue to grow network

[31:22] What M.C. would tell his younger self

  • You are your #1 greatest asset
  • Second greatest asset is relationships
  • Certain skills will not go away (marketing, sales and customer service)
  • Business must solve problems, create outcomes

[34:30] M.C.’s perfect day

  • Work out, family time and personal development
  • Attack the day at 11am (calls, interviews and case designs)
  • Family time, reading in the evening

Connect with M.C. Laubscher

Cashflow Ninja

Valhalla Wealth

Collapsing Time Webinar

Banking Principles Presentation

Resources

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

Becoming Your Own Banker: Unlock the Infinite Banking Concept by R. Nelson Nash

Coaching with Michael

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes


Wealth is code for freedom.

If you want to be a millionaire, it’s probably because you want control over your time. You want the autonomy to make your days your own and spend them with the people you love. Today’s guest chose real estate as his path to freedom, spending less than he earned and investing the excess in apartment buildings. Maybe you are interested in doing following a similar path, but something is holding you back… 

Paul Morris is the co-author of Wealth Can’t Wait, a New York Times bestseller that identifies the seven traps that keep people from building wealth and equips readers with a comprehensive set of skills to achieve financial freedom. An active and consistent investor, he has grown his real estate portfolio to more than 700 rental units and 150,000 square feet of retail commercial space, and Paul was named among the 200 Most Powerful People in Residential Real Estate in 2013 and 2014.

Prior to working full-time in real estate, Paul enjoyed a successful legal career, working as an associate at a major international law firm and as Senior Counsel with the US Department of Justice. He has a degree in economics, a master’s in management from Oxford, and a JD from Cornell Law School. Today Paul shares his early experience in real estate, investing in a duplex while he was still in school. He speaks to the kinds of investments he prefers, the pros and cons of working with a partner, and how to get started in real estate with little to no money. Listen in to understand the three rules for investing that have helped Paul avoid losing money, as well as the seven wealth traps that keep people ‘stuck on the sidelines.’ Find out what’s holding you back and get on the path to health, wealth and freedom!

Key Takeaways

 [1:55] How Paul got into real estate

  • Working class dad invested in real estate
  • Provided income without working
  • Bought duplex in 1990 (Ugly Duckling)
  • Always worked with partner, gives courage

[4:59] The pros and cons of having a partner

  • Paul recommends working without partner
  • Choose partners based on brainpower, integrity
  • Clarify deal points, exit strategy in writing

[8:11] The kinds of investments Paul favors

  • Prefers buy and hold strategy
  • Buy and flip too risky

 [11:03] Paul’s philosophy of wealth as code for freedom

  • Ask yourself why you want to build wealth
  • Money affords power to choose, create
  • Allows to pursue greater goals
  • Love, health and time

[15:57] The 7 Wealth Traps

  1. Staying in a comfortable job
  2. Avoiding risk
  3. Viewing wealth negatively
  4. Giving up (not staying the course)
  5. Holding on to toxic friendships, the Weak Social Circle
  6. Victimizing yourself
  7. Thinking you know it all

[26:40] How to start investing in real estate with little or no money

  • Buy a home, live with roommates to cover mortgage
  • Use other people’s money

[29:32] Paul’s 3 rules for investing to avoid losing money

  1. Buy where you know
  2. Buy value-add (worst house in great/gentrifying neighborhood)
  3. Buy cashflow

[33:12] What Paul is excited about

  • Providing great, safe units in LA neighborhoods ‘turning a corner’
  • Traveling with daughter, girlfriend
  • Becoming better table tennis player

[34:04] Paul’s perfect day

  • Freedom to dress casually, work from home/coffee shop
  • Finished in time to pick up daughter from school bus
  • Hot yoga class with girlfriend

Connect with Paul Morris

morrisx.com

Paul on LinkedIn

Resources

Wealth Can’t Wait: Avoid the 7 Wealth Traps, Implement the & Business Pillars, and Complete a Life Audit Today! By David Osborn and Paul Morris

The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley and William D. Danko

“7 Ways You’re Hurting Your Chances at Building Wealth, According to 2 Self-Made Millionaires” in Business Insider

Interview with Lewis Howes and Grant Cardone

“7 Strategies That Will Help You Build More Wealth, According to 2 Self-Made Millionaires” in Business Insider

“Are You on Track to be Wealthy? Two Successful Entrepreneurs Share the Most Important Skill to Have” in Forbes

“5 Timely Investments You Should Consider This Summer” in Forbes

Coaching with Michael

Review the Podcast on iTunes

Direct download: MB_082__Wealth_Cant_Wait__With_Paul_Morris.mp3
Category:Commercial Real Estate -- posted at: 7:09pm EDT

There’s more than one way to skin a cat, and though we spend a lot of time on the podcast addressing aspiring syndicators, there are other routes to financial freedom via real estate investing. High net worth individuals who are interested in getting a little skin in the multifamily game should consider the benefits of passive investing. Regardless of approach, the end game of apartment building investing remains the same: Permanently replace your income and get out of the rat race for good!

Dr. Tom Black (also known as The Passive Income Physician) was working as a busy emergency doctor in a high-volume trauma center. Yes, he was making good money, but he was working insane hours and he rarely saw his family. Tom was financially secure, but far from financially free—and he was fed up with sacrificing his time for money. Already enamored by the cashflow potential of real estate, Tom purchased several single-family homes and even tried his hand at commercial real estate before stumbling into his first multifamily deal, a 305-unit in Arlington, two years ago.

Tom’s brother, Tim Black, enjoyed a 32-year career in entertainment, retiring as the COO of a large hospitality company in March of 2016 when the business was sold to private equity. Eventually, his brother convinced him that multifamily was the best means to making your money work for you, and together they started Napali Capital. The firm has grown quickly, and the Blacks currently have 1,000-plus units in assets under management. Today Tom and Tim explain why multifamily is the best choice for passive investors, how to assess the risk profile of a multifamily deal, and the characteristics to look for in a potential syndicator. Listen and learn the returns a passive investor can expect from multifamily, the skill set necessary to become a successful investor, and the staggering tax benefits afforded by the platform.

Key Takeaways

[2:41] What prompted Tom’s involvement in real estate

  • Poor student in HS, gained confidence in Navy
  • Top of class in medical school
  • Couldn’t sell house after finishing residency
  • Rented to incoming resident
  • Enamored with cashflow
  • Busy doctor in high-volume trauma center
  • Making good money, but sacrificing too much time
  • Bought land in east Texas for commercial development
  • Resigned from practice and moved to pursue real estate

[5:51] When Tom identified multifamily as a ‘way out’

  • Bought foreclosures in Houston during downturn
  • Single-family was hard work
  • Studying economies of scale
  • 16-unit commercial development offered buffer in budget
  • Multifamily could take him to next level

[7:23] Tom’s shift from single family to commercial real estate

  • Cashflow limited to specific markets, required travel
  • Single-family very competitive
  • Saw vacant land, wanted to be ‘master of own destiny’

 [8:19] Why Tom wanted out of full-time medicine

  • Concept of security vs. freedom
  • Medical practice not sustainable
  • Doctors in their 70’s still working

[9:25] Tom’s first multifamily deal

  • Moved to Dallas for medical directorship
  • Attended real estate investing lectures
  • Stumbled onto 305-unit off-the-market deal in Arlington

[10:29] The difference between commercial development and multifamily

  • Developing is rough, many working parts
  • Multifamily offers formula for success, mitigated risk
  • Evidence-based reasoning appealed to Tom as doctor

[13:31] Tom’s advice around quitting your day job

  • He continues to work in medicine one day/week
  • Don’t be in a hurry to quit until achieve cashflow

[14:34] How Tim came to work with his brother

  • Poor student, but excelled at leadership
  • 32-year career in hospitality/entertainment
  • Retired in March 2016 (COO of large hospitality company)
  • Started Napali Capital together, capitalizing on each other’s strengths
  • Firm has grown rapidly, responsibly
  • Education is foundation of their business

[16:54] Why multifamily is the best choice for passive investors

  • Money works for you (cashflow, appreciation, depreciation, amortization)
  • Lack of affordable housing, cultural trend to downsize
  • Multifamily is stable and tangible

[19:22] How to assess the risk profile of a multifamily deal

  • Depends on syndicator, underwriter
  • Napali Capital is very risk averse (2% raises year-over-year)
  • Tim & Tom don’t offer huge returns (9% cash-on-cash)

[20:41] The returns a passive investor can expect in multifamily

  • 9% cash-on-cash
  • 90-100% return in five years
  • Napali always exceeds projections
  • 130% in 24 months on 305-unit

[22:22] The skill set necessary for a passive investor

  • Ability to read P&L
  • Knowledge of underwriting
  • Understanding of costs (rent rates, insurance)
  • Consider a mentor

[23:58] The Black’s advice around choosing a syndicator

  • Look for trust, integrity
  • Communication is key
  • Transparency (share financials)
  • Invest alongside you

[25:54] How to pacify the passive investor’s fear around risk

  • Trust the track record, pedigree of the syndication team
  • Stock market presents much greater risk

[27:06] The staggering tax benefits of multifamily

  • Stock market, mutual funds require payment of capital gains tax
  • With depreciation, taxed income is either substantially less or zero

[30:10] Tom’s final tips for aspiring multifamily investors

  • Get off the sidelines
  • Dip your toe in the water (crowdfunding)
  • Get educated

[31:09] What the Blacks are excited about

  • Growth of firm
  • Dynamic of relationship

Connect with Tim & Tom Black

Napali Capital

Email Tim: tim@napalicap.com

Email Tom: thomas@napalicap.com

Resources

The Passive Income Physician Blog

The Passive Income Physician: Surviving a Career Crisis by Expanding Net Worth by Thomas Black MD

Invest with Michael

Financial Freedom Summit Wait List

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building


Your chances of doing even a 60-unit multifamily deal on your own—with no track record—are very slim. Even with the capital and the knowledge, if you are lacking in the reputation department, brokers will have no confidence in your ability to close. Enter Nighthawk Equity, my partnership with Mark Kenney. You bring the deals, and Nighthawk does the rest.  

Mark has been investing in real estate since he graduated from Michigan State 23 years ago, partnering with his twin brother to buy and rehab a $36K duplex. He continued to pursue small deals and flips during his career as a CPA and consultant for KPMD. Eventually, he started his own IT company. The business thrived, but 80-hour weeks and extensive travel translated to suffering in his personal life. With his marriage in trouble, Mark made the decision to take a huge pay cut, hand off the big projects to someone else, and pursue real estate investing full-time.

With the support of his family, Mark spent nearly a year securing his first big multifamily deal, a 64-unit building in Dallas. Adhering to the ‘law of the first deal,’ his second and third deals followed right away. In four years, Mark has purchased 2,000 units and raised tens of millions in capital. Today, Mark shares the process of working with Nighthawk Equity to secure a deal, explaining how we came to join forces, the response to Nighthawk, and the right time to get Nighthawk involved in your deal. Listen in to understand the mission of Nighthawk Equity, and how the firm also supports passive investors looking for a solid ROI.

Key Takeaways

 [2:36] How Mark got started with real estate

  • Didn’t have much money growing up
  • Knew real estate was tangible
  • Bought $36K duplex right out of college (with brother)
  • Used money saved over years for down payment
  • Full rehab
  • Continued to buy, rehab small multifamily properties

[5:13] Mark’s decision to become a full-time real estate investor

  • Worked as CPA, then consultant for KPMD
  • Founded successful IT company
  • Working 80 hours/week, projects all over world
  • Personal life and health falling apart
  • Decided to quit four years ago
  • Took huge pay cut, turned projects over

[7:16] Mark’s first syndicated multifamily deal (64 units)

  • Took nearly a year to secure deal (build relationships, team)
  • Raised $1M with one general partner, 14 other investors

 [9:44] The deals that followed in rapid succession after the first

  • 208-unit within two months
  • 255-unit, 454-unit and 344-unit within short period after that
  • Found partner with track record, relationships in Atlanta
  • 800 units in Atlanta this year alone
  • Raising money easier as well ($2.8M, $6.2M, $4M)

[11:30] The importance of surrounding yourself with the right people

  • Mark’s dad talked him out of buying early on
  • Risk involved in anything you do
  • Listen to wrong people, never do deal

[12:46] Michael and Mark’s partnership

  • Joined forces to scale transactional side of business
  • Chances of doing deal on your own very slim
  • Leverage their track record, reputation as partners

[14:51] The response to Nighthawk Equity

  • Looking for deals as syndicators
  • ‘Floodgates opened’ after Episode 74
  • Deals in OKC, Dallas, Memphis and Houston
  • Nighthawk diminishes fear of raising capital

[17:47] The process of working with Mark and Michael

  • Do initial underwriting, receive feedback
  • Coach qualifies (realities of assumptions)
  • Patrick reviews deal
  • Strong likelihood deal will work before gets to Mark

[18:52] The right time to get Nighthawk involved

  • After deal analyzed, researched properly
  • After pre-negotiation (verbal agreement, numbers discussed)
  • Before LOI
  • Before contract signed

[20:44] The future of Nighthawk

  • Help new investors alter mindset (i.e.: 69- to 321-unit in five months)
  • Continue to pursue joint ventures with students
  • Carry on mission to help others gain financial freedom

[24:44] Mark’s pitch to passive investors re: multifamily

  • Meets basic need, never going away
  • Incredible ROI
  • Performed well during recession (.4% default rate)
  • Tax benefits (pay little/nothing due to depreciation)

Connect with Mark Kenney

Think Multifamily

Email: mark@thinkmultifamily.com

Nighthawk Equity 

Resources

Podcast Episode 74

Partner with Michael

Invest with Michael

Financial Freedom Summit Wait List

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes


One of the big real estate rookie mistakes is to turn into a Walmart shopper as you build your team. It is easy to see a coach, lawyer, or property manager as an expense and choose to go with someone less experienced—or even elect to do the job yourself. But today’s guest can attest to the fact that a quality team is an investment that can save you millions in the long run.

Damion Lupo is a serial entrepreneur with a ‘think big’ mentality. In the last 25 years, he’s founded more than 30 companies in a number of industries including insurance, precious metals, venture capital, financial consulting and real estate. Damion is also a black belt in three different disciplines and the architect of Yokido, his very own martial art.

Damion’s personal philosophy centers around self-responsibility and a conviction that candor, growth and a big vision provide the only path to freedom. His commitment to these values led to the creation of Total Control Financial, a FinTech that seeks to reinvent financial control and empower Main Street with the tools of financial transformation. Today Damion discusses his first multifamily deal, a 119-unit property in Memphis that resulted in a $2M loss, and the lessons he learned from the experience. He shares the transformational power of failure, the importance of building a team you can trust, and the extraordinary value of a mentor. Learn how Damion’s shift from consumer to contributor had a revolutionary impact on his life.

Key Takeaways

 [4:03] How Damion got into real estate

  • ‘Tripped’ into it
  • Read Rich Dad, Poor Dad
  • Attended seminar for additional resources
  • Attracted to big-time cashflow potential
  • Quit insurance to pursue real estate

[5:44] Damion’s first steps in real estate

  • Bought house with Visa card
  • Planned to sell on payments after remodel
  • Strategies in place to pursue more properties, but wasn’t taking action
  • Failure to return phone calls almost led to bankruptcy

[7:18] How Damion was able to avoid bankruptcy

  • Gained momentum by purchasing eight houses in month
  • Purchased another 50 houses over next year (AZ, AL)

 [7:58] How Damion got stretched too thin early in his real estate career

  • Despite success, decided to try something different
  • Started high-end rehabs all over country
  • No team in place to help
  • Lost track of projects
  • Not paying attention to numbers
  • Let ego take over (want more and more)

[9:35] The lessons Damion learned from his first multifamily deal (119-unit in Memphis)

  • If you can’t be there, send team member with ‘massive integrity’
  • Listen to the numbers, get out if necessary
  • Stress test your team before going all-in
  • Don’t delegate too much, too soon

[14:31] What Damion could have done differently on the Memphis deal

  • Choose experienced partner
  • Move to site or have partner on-site
  • Invest in an experienced team, especially project manager
  • Leverage experience of mentors (make new mistakes)

[19:50] The value of a coach/ mentor

  • Damion lost $5M over two years after firing coach
  • Powerful to have people ‘call you on your shit’
  • Don’t let ego get in the way of listening
  • Helps you be methodical (rather than emotional)
  • Offers perspective, intuition to pass on bad deals

[24:48] Damion’s advice around leading a team

  • Clarify expectations up front
  • Have team share back what was heard in own words

[25:52] How Damion reinvented himself after hitting rock bottom

  • Equated net worth with self-worth (identity tied to money)
  • Learned that impact must be driver, wealth as side effect
  • Spent two years making shift from consumer to contributor
  • Teaching (martial arts, financial literacy) allows him to give, be present
  • People with contributing mentality happier, more successful
  • Can’t think your way to your Om, must do

[32:45] How dark times set you up for success and fulfillment

  • Must experience trauma to learn you are not in control
  • Recognize difference between success and fulfillment
  • Damion finds fulfillment in seeing people get out of ‘financial bondage’

Connect with Damion Lupo

DamionLupo.com

Damion’s Books

Reinvented Life Workbook

Resources

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

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

Financial Freedom Summit Wait List

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes


‘That’s just the way I’m built: Nothing’s going to stop me.’

Joseph Gozlan’s story defines the word GRIT. Once he decided that multi-family was the route he wanted to take, Joseph continued to drive through every challenge, getting creative and doing whatever it took to secure his first deal despite the roadblocks and frustrations. Three years later, he is the proud owner of two apartment buildings, and he has five properties in the pipeline. Joseph’s living expenses are covered, and he is considering a transition into full-time real estate in the very near future.

Joseph got his start in real estate back in 2005 when he and his new wife realized that their new five-bedroom home was too big for just the two of them, so they chose to stay in an apartment and rent the property. Two years later, they moved to the United States from Israel and recognized the opportunity provided by the market collapse. The Gozlans secured their real estate licenses and began actively hunting for deals, purchasing a duplex and several single-family homes.

In 2015, Joseph realized there was much more value in apartments than could be gained in scaling single-family homes, and he started extensive research into multi-family investment. Unfortunately, Joseph faced a number of hurdles along the way, and it took a full two years to secure his first 22-unit apartment complex. When many would-be multi-family investors would have given up, Joseph persevered, and today he shares his long road to successful apartment building investing with us. Listen in and get inspired as Joseph discusses why he chose real estate in the first place, the circumstances around his shift to multi-family, and how he has maintained his full-time job in IT while developing a lucrative real estate portfolio.

Key Takeaways

 [1:59] Joseph’s start in real estate

  • Read Rich Dad, Poor Dad in college
  • Got married, lived in small apartment
  • Purchased house, too big for couple
  • Chose to rent house, stay in apartment
  • Moved to US in 2007
  • Joseph and wife got real estate licenses
  • Actively hunted for deals after market collapse
  • Bought duplex in Plano, TX (paid $180K, invested $30K in renovations)
  • Purchased additional single-family homes until numbers changed in 2013

[4:34] Why Joseph chose real estate in the first place

  • Wants to write giant cardboard check for $1M to children’s hospital
  • Early retirement, comfortable living, won’t have to answer to boss
  • Tangible assets like real estate trump stock market
  • Realized could be wealth-building strategy, key to financial freedom

[6:26] Joseph’s definition of financial freedom

  • Do what you want
  • Work from anywhere
  • No worry re: bills
  • Kids won’t experience struggle (like he did)

 [7:22] The circumstances around Joseph’s shift to multi-family

  • Two and a half years ago, duplex had foundation issues
  • Big ticket damage to another property at same time
  • Spent $40K to fix, wiped out five years cashflow
  • Recognized advantages of multi-family (single location, risk spread across multiple units)
  • Began extensive research (books, podcasts, BiggerPockets)

[11:11] The long road to Joseph’s first deal

  • Reached out to brokers, no response
  • Decided to source deal himself, began marketing (postcards, letters, phone calls)
  • Built rapport with owner/custom-builder of 22-unit apartment
  • Owner agreed to seller financing
  • Refinanced duplex and another property to afford

[14:02] The results of Joseph’s first deal

  • 23 days from signed contract to keys
  • Brought in property management company
  • Added $600—$800K in value via operation efficiency
  • Spends one hour with management company/week to assure accountability

[15:58] How Joseph handled concurrently working full-time

  • Sacrifice necessary
  • Some sleepless nights
  • Spent weekends looking at property, took occasional days off
  • Difficult but doable

[16:53] How Joseph secured a second deal within six months

  • Brokers responsive now that ‘closer’
  • Lead through property management company on 102-unit in Lubbock, TX
  • Knew costs, rent and demographics (unfair advantage)
  • Tight underwriting, made win-win offer

[18:11] How Joseph financed his second deal

  • ‘Ignorance’ gave him the confidence to raise funds
  • Elected syndication to raise $1.4M
  • Had to adjust underwriting model
  • Learning curve around how to talk to investors
  • Learned to focus on benefits (no headache), returns, low risk
  • Did all himself in 45 stressful days
  • Once one investor signs, recommend friends

[22:31] How Joseph’s second deal is performing

  • Only three months in
  • Great so far, working on renovations
  • Compliments from competition, positive feedback from residents
  • Joseph’s living expenses now covered on paper
  • Anticipates feeling comfortable enough to quit job after second quarter

[24:33] How Joseph stuck with the multi-family plan despite his initial frustration

  • Went into contract on another property first
  • Realized much-deferred maintenance
  • Seller refused to negotiate
  • Had to back out since numbers didn’t work
  • Not in Joseph’s personality to give up

[26:30] The snowball effect of multi-family deals

  • Joseph already under contract on third deal for 28-unit
  • Only took three days to get LOI signed (motivated seller)
  • Five properties in pipeline now (off-market deals)

[28:17] Joseph’s plans for the future

  • Recently renewed real estate license
  • Sourcing deals himself (sent 1300 pieces of mail)
  • Continue to work acquisitions
  • Also transition to brokerage side
  • Enjoys ‘coaching’ property management company, contributing ideas to improve processes

[30:08] What Joseph would tell his younger self

  • Skip single-family, go straight to apartment buildings
  • Could have thousands of units by now

[30:51] Joseph’s advice for hesitant multi-family investors

  • Don’t go it alone
  • Partner or get mentor to establish realistic expectations
  • Offer value to mentor (i.e.: underwriting, boots on the ground)

Connect with Joseph Gozlan

EBG Acquisitions

Eureka Business Group on Twitter

Multifamily Investing for Financial Freedom on Facebook

Resources

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

BiggerPockets

Michael’s Products

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes


Most of the time, careful planning is a good thing. It is smart to develop a strategy first, and then take action on your goals. But the one situation in which it might be better to just put the blinders on and jump in? Multi-family real estate investment.

Pili and Jason Yarusi have a background in running restaurants and bars as well as experience in the family construction business. So when they were starting a family of their own and wanted to get out of the grind, real estate investment seemed like the perfect fit. They started doing capital-intensive flips and had success with out-of-state duplexes, but soon realized that flipping was a job that would have to be repeated time and time again. If the Yarusis wanted to achieve cashflow, apartment building investing was the way to go.

After doing a lot of reading and reaching out to mentors with multi-family experience, Pili and Jason found a quality property management company in Kentucky, and made use of the firm’s expertise to find a deal that fit their criteria. The Yarusis sold investors on their background of success in other businesses, and raised the $800K necessary to close on a 94-unit property. Today they share how their willingness to jump in without a clearly defined strategy paid off in the end and how they overcame the mindset challenges around multi-family investing. Listen in for Pili and Jason’s advice about reaching out to mentors and learning as you go.

Key Takeaways

[1:39] The circumstances that motivated Pili and Jason to invest in real estate

  • Ran restaurants, bars
  • Family construction business ‘gratifying, but grueling’
  • Pili pregnant with first child

[4:25] Pili and Jason’s start in-house flipping

  • Capital-intensive flips
  • No strategy going in (let idea grow)
  • Also purchased two out-of-state duplexes on gut feeling
  • Gave footprint (right questions, team members and processes)

[7:40] Why Pili and Jason shifted to multi-family

  • Realization that one single-family vacancy = 100% vacancy
  • Five vacancies in building with 100 doors = 95% occupancy
  • Multi-family income means you can afford team (on-site manager, maintenance, etc.)
  • Experience with duplexes taught them to vet property management company

[10:49] How the Yarusis moved forward once the decision to do multi-family was made

  • Jason educated himself, sought mentors
  • Utilized resources like BiggerPockets
  • Looked for deals in favorable out-of-state markets

[12:50] The mindset challenges around multi-family

  • Numbers seem scary (large = hard)
  • Concerns about raising capital

[14:09] How to overcome mindset challenges

  • Surround yourself with team, mentors
  • Meet people at networking events, REIA meetings
  • Reach out to friends of friends, other investors
  • The more you talk, the more it seems doable

[16:28] The hurdle of raising capital

  • Challenging due to lack of experience
  • Sold people on background of success in other businesses

[18:24] How Pili and Jason chose the Kentucky market

  • Looking for population growth, job growth/diversity
  • Familiar with Kentucky (friends, sister there)
  • Found property management company to offer feedback
  • Discovered property that fit criteria

[21:58] The Yarusi’s outlook when it was time to sign the contract

  • ‘Game time’
  • Work toward closing
  • Remain conservative (ensure return for investors)

[23:36] How much capital Pili and Jason raised for their first multi-family deal

  • $800K
  • Verbal commitments prior to contract
  • Didn’t start due diligence period until written notice of records received (extra 30 days)
  • One investor pulled out 20 days before closing
  • Scrambled to fill in gap

[25:27] How the 94-unit property is performing

  • Very well, achieved rent increases
  • Modest increase for good tenants
  • Turnovers up to market price

[26:45] The lessons Pili and Jason learned in their first multi-family deal

  • Walk every unit on morning of closing
  • Talk to everyone (don’t leave out any high-level investors)

[28:34] What’s next for the Yarusis

  • 47- and 57-unit in Kentucky
  • Bigger CapEx than first property

[29:56] Pili and Jason’s advice for aspiring apartment building investors

  • If multi-family is your endgame, start now
  • Consider the advantages of multi-family
    • Easier to secure loan
    • Can afford team
    • Vacancies less debilitating

Connect with Pili and Jason Yarusi

The REI Foundation Podcast

Email Jason at jason@yarusiholdings.com

Email Pili at pili@yarusiholdings.com

Resources

BiggerPockets

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes


All roads lead to multi-family. It seems that no matter how you get your start in real estate, the vast majority of investors come to the same conclusion: For passive, everlasting cashflow, multi-family is the way to go.

Jack Bosch came to the United States from Germany in 1997 to finish his college degree. He worked in the corporate world for several years, but soon found that it did not afford the life he wanted. His visa was dependent upon keeping his job, yet the company that was struggling, so Jack was inspired to start a company of his own.

Attracted to real estate because of its cashflow potential, Jack got his start flipping land. Over the course of three years, he developed a system that allowed him to do 3,800-plus deals, and he achieved financial freedom in a short time. Jack eventually moved into the single-family space, developing a portfolio of rental properties, and he finally graduated to multi-family in the last year. Today he shares the specifics of his transition to multi-family, his experience raising money for the first time, and his advice for investors who dismiss apartment buildings as an advanced strategy. Listen as he explains why he would have liked to get into multi-family sooner, and how you can get started in the space with no prior experience.

Key Takeaways

[2:12] How Jack got involved in real estate

  • Constant travel for work
  • Only two weeks’ vacation
  • Not the life he wanted to live
  • Company struggling, many lost jobs
  • Visa dependent on employment
  • Desire to start own business
  • Real estate appealed because of cashflow

[4:00] Jack’s start in flipping land

  • Could sell land for seller financing
  • Generate long-lasting passive cashflow

[5:36] How Jack defines a transaction

  1. One-time cash deals (flip house, get paid once)
  2. Temporary cash (give loan, receive interest)
  3. Monthly payments (flip land for seller financing, receive down payment + monthly installments for six to eight years until paid off)
  4. Forever cash (passive, everlasting income via multi-family)

[8:47] Jack’s transition to multi-family

  • Began working real estate in 2002
  • As of 2009, still hadn’t touched rental properties (thought too complicated)
  • Discovered houses available for $50/ft²
  • Purchased several dozen, rehabbed and managed themselves
  • Made mistakes (bad tenants, spent too much on rehabs)
  • Eventually found good property managers
  • Learned to systematize
  • Still not hassle-free (deal with one property at a time)
  • Realized multi-family properties provide buffer

[12:52] Jack’s advice around the multi-family learning curve

  • Acquisition, sourcing, negotiation, analysis and management processes are different
  • Look for a partner-expert to learn from
  • Jack did first deal on 93-unit in Louisiana with experienced friend
  • Experience was ‘hands-on MBA in multi-family’
  • Now building own team, additional funding sources
  • Still works with partner on bigger projects
  • Looking to build out own portfolio as well

[18:10] Jack’s experience with raising money

  • First time on multi-family deal
  • Benefitted from having reputation in market
  • $1.4M raised in short time
  • Felt responsibility as steward for someone else’s money

[21:01] Jack’s conclusions about multi-family

  • At top of favorite investment methods list
  • Securing good property management company is key
  • Low risk, high reward (extremely safe investment)
  • 93-unit property has doubled in value
  • Recession-proof (extraordinarily low default rate)

[22:48] Why Jack would have liked to start multi-family sooner

  • Cashflow would have been multi-fold higher
  • Single-family experience did teach building, rehab
  • Could have gone right to multi-family with proper guidance
  • Employee mindset, thinking small held him back
  • Success with early investments helped grow thinking
  • Systems in place to make business scalable
  • Some aspects of multi-family are easier than single-family

[28:20] Jack’s advice for investors who dismiss multi-family as an advanced strategy

  • Shadow a coach/mentor
  • Mentor acts as ‘time compressor’
  • Help with mental hurdles, analyzing numbers

[30:26] What Jack is excited about

  • Cashflow affords family opportunity to travel (Trips planned to Europe, Asia, Germany, South America)
  • Business continues while they travel
  • Looking to secure 5,000 units in five years
  • Transform lives of investors (up to 16% yearly average returns)

Connect with Jack

Jack on Facebook

JackBosch.com

JackBosch.com/apartments

JackBosch.com/land

Mastermind for Business Owners

Resources

TheMichaelBlank.com

Michael’s Products

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Direct download: MB_076__Multifamily__Forever_Cash_Flow__With_Jack_Bosch.mp3
Category:Commercial Real Estate -- posted at: 3:32pm EDT

Yes, crowdfunding is out of reach for the average newbie syndicator. But if you’ve got a great deal and a willingness to hustle, it is possible to partner with a larger real estate company and take advantage of the capital available through crowdfunding. Platforms like Realty Mogul are looking for sponsors with a track record, so if you don’t have one—find someone who does.

Jilliene Helman is the CEO of Realty Mogul, the premiere online marketplace for real estate investing. The platform employs cutting-edge technology to connect its network of 130,000 registered investors looking for passive investments in commercial real estate with established real estate companies looking to acquire and operate commercial properties.

Realty Mogul is a marriage of Jilliene’s affinities for financial services and technology. She founded the company in 2013 to take advantage of the opportunities around crowdfunding afforded by the JOBS Act. Today she discusses why Realty Mogul chose to focus on the commercial space, the types of investments the platform offers, and the Realty Mogul definition of a good deal. Learn about the evolution of the crowdfunding industry, and heed Jilliene’s advice about partnering for aspiring syndicators.

Key Takeaways

[2:33] How the crowdfunding industry has evolved

  • Started five years ago with passage of JOBS Act
  • Has become more and more mainstream
  • Began with donation-based sites (e.g.: Kickstarter, Indiegogo)
  • Evolved into investment-based crowdfunding (i.e.: commercial real estate)
  • Since 2013, Realty Mogul has raised $300M online
  • Will continue to grow, scale
  • Over $1B in invested capital through crowdfunding this year alone
  • Provides investors access to private transactions

[3:55] Why Realty Mogul chose to focus on the commercial space

  • Huge opportunity in single-family space early on (2013-2015)
  • Banks off-loading residential properties
  • Not easy to make money doing fix and flips
  • Chose to focus on existing properties, tenants and cashflow
  • Less risky than vacant residential property being renovated

[4:54] The types of investments Realty Mogul offers

  • Joint venture (common) equity investments
  • Paid last (riskiest part of capital stack)
  • Gets piece of appreciation
  • Preferred equity investments
  • Paid before joint venture equity
  • Receives flat, pre-negotiated rate (doesn’t get any of appreciation)
  • Mezzanine debt investments
  • Senior mortgage debt investments

[6:54] What Realty Mogul is looking for in a sponsor

  • Don’t do business with first-time sponsors
  • History, track record of success
  • Real estate company with experience in market, property type
  • Investors want to work with sophisticated real estate companies
  • Typically don’t work with solo operators
  • Looking for full-time sponsors with own company, employees
  • Serious and professional about execution in investing in real estate

 [8:34] Jilliene’s advice for aspiring syndicators

  • Do a transaction
  • Raise capital from friends, family
  • Add value, build a track record

[10:12] Jilliene’s guidance around partnering with a larger real estate company to employ crowdfunding

  • If have solid deal, no reason you can’t partner
  • Will have to pay real estate company
  • Won’t have control of transaction
  • Realty Mogul requires one sponsor to have final say

[11:47] What Realty Mogul defines as a good deal

  • Every deal is different
  • Focus on cashflowing real estate (existing tenants)
  • Majority of deals are Class B assets in secondary markets
  • Look for opportunity to value-add
  • 7-8% average cash-on-cash return to investors
  • 15% IRR net to investors

[14:13] The requirements for passive investors on Realty Mogul

  • Public, non-traded REIT open to all investors (diversified pool of commercial real estate investments)
  • Private transactions limited to accredited investors (income above $200,000 or net worth above $1M)

[15:28] The process of becoming a passive investor with Realty Mogul

  • Sign up for user account
  • Select transaction
  • Entire experience is digital
  • REIT is blended vehicle
  • Accredited investors pick and choose specific properties

[16:40] The benefits of working with Realty Mogul

  • Track record
  • Over $300M invested in commercial real estate
  • Real estate companies do multiple transactions (speaks to experience)
  • Network of 130,000 investors

[17:23] How Realty Mogul came to be

  • Jilliene worked in banking (wealth management)
  • Wealthiest clients were real estate investors
  • With JOBS Act, Jilliene saw opportunity
  • Blends her passions—financial services and technology
  • Mission to help people generate wealth via real estate investing

[18:22] Jilliene’s take on the future of crowdfunding

  • Will continue to grow
  • More and more mainstream
  • Investors more comfortable with doing transactions on internet
  • Billion-dollar industry

Connect with Jilliene

Realty Mogul

Resources

 Deal Desk

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building


What gives a 27-year-old with no experience in apartment building investing the audacity to swing for the fence?

Patrick Duffy grew up in Southern California before heading east for college. After graduating from Harvard in 2013, he returned to SoCal to work as a commercial real estate banker and later for a hedge fund, buying non-performing mortgages. He grew up around real estate, his family owning a multi-family property since the 1950’s, and he had always intended to invest in apartments—as soon as he had the money to do so.

Before long, Patrick was unhappy at his job, so he started reaching out to investors he had lent to in order to get clarity on how to analyze deals. Despite his lack of experience on the principal side of real estate, Patrick started studying LoopNet and set the goal of securing 100 units in two years. Eventually, he discovered Michael’s Deal Desk resource, and used the Syndicated Deal Analyzer to get feedback on a 69-unit property in Memphis. The deal met Michael’s criteria, and the two forged a partnership.

Today Patrick explains the steps he took to research the Memphis market, how he made use of the act ‘as if’ approach to secure a letter of intent, and his best advice for working with investors. Listen in as he shares the mindset that helped him swing for the fence on a multi-family deal and how doing his first deal has changed the game for Patrick, as he aspires to reach 1,000 units in the next 12 months.  

Key Takeaways

[3:30] How Patrick landed on the partnering strategy to finance multi-family

  • Briefly considered flipping single-family
  • Preferred multi-family, but biggest block was capital
  • Looked at creative financing options
  • Partnering seemed like most feasible route
  • Goal to secure 100 units in two years

[6:04] How Patrick found the Memphis deal

  • Clarity re: how to analyze deals
  • Practiced via LoopNet (comparing markets, packages from brokers)
  • Underwriting to get feedback
  • Memphis market seemed ideal (cap rates, unit sizes, price)
  • Reached out to learn about Memphis market
  • Found 69-unit deal on LoopNet
  • Submitted to Syndicated Deal Analyzer
  • Positive feedback from forum
  • Called broker on New Year’s Eve

[9:23] Why Patrick continued to move forward

  • Nothing to lose
  • Deal met criteria for partnering via Deal Desk
  • Act ‘as if’ approach to secure LOI

[11:13] Michael’s partnership with Patrick

  • Impressed by Patrick’s thorough research
  • Surprised by return (Memphis not one of published geographies)
  • Got contract from seller, proposed changes
  • Built team as went (property manager, lawyer)
  • Patrick took initiative
  • Under contract with seller
  • Wire EMV
  • Collect due diligence docs
  • Financial due diligence process
  • Create investor package
  • Met in Memphis to look at property
  • Michael sent sample deal package to investors
  • Acquired financial commitments
  • Hired SEC attorney
  • Started appraisal process

[13:18] Patrick’s experience working with investors

  • Michael’s network eager for deals that fit criteria
  • Addressed questions about specifics of market
  • SEC attorney had drafted necessary documents
  • Used DocuSign to track eSignatures

[15:23] The closing process for the Memphis 69-unit deal

  • Loan approved, investors wired funds
  • Patrick received acquisition fee of $23,000
  • Also reimbursed for expenses incurred during due diligence

[16:25] The impact of doing your first deal

  • Only so much can be taught re: what to expect
  • Once learn to partner, can scale quickly
  • Feel more comfortable and taken more seriously
  • Brings down barriers
  • Patrick under contract on 196-unit deal two weeks later
  • Expects to hit 1,000 units in next 12 months

[19:50] Why size isn’t a factor for Patrick

  • It’s about process
  • Anything under 500 units is viable
  • Don’t worry about equity
  • Finding deal is the issue (not money)

[21:35] Patrick’s advice for aspiring multi-family investors

  • Take advantage of Deal Desk resources
  • Does require high level of commitment
  • Hard work is worth it

Connect with Patrick

Email: pduffy32@gmail.com

Resources

Deal Desk

Syndicated Deal Analyzer

Ultimate Apartment Investing Course

The Financial Freedom Summit Live

LoopNet

DocuSign

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building


Landing your first multi-family deal is much like pushing over the first in a series of dominoes: The second and third deals fall in rapid succession. In most cases, it is possible to replace your income one to three years from the moment you decide to change your life.

Brad Tacia’s story adheres to this Law of the First Deal. He was an engineer by trade, working for an auto parts manufacturer in Detroit. Though he survived the recession, Brad knew that he needed a backup plan. He began his foray into real estate with single-family homes, using a portion of his 401(k) to facilitate the investment.

Brad reached a turning point when he realized just how much of his daughter’s life he was missing. To speed up the process of achieving financial freedom, Brad and his wife used the Dave Ramsey program to cut their expenses and pay off their house—which allowed them to fund their first multi-family deal with a home equity loan. Brad’s second and third deals followed quickly on the heels of the first, and in two years, he had replaced his income. Brad quit his W-2 job, and now he controls 160 apartment units total. Listen as he explains his experience with Dave Ramsey’s Financial Peace University, how he funded his first three multi-family deals, and his secrets to becoming financially free in just two years. He also shares his knowledge around syndicating deals as well as the details of how his life has changed, making every day feel like Saturday!

Key Takeaways

 [4:26] Brad’s motivation to try real estate

[6:36] What precipitated Brad’s shift to multi-family

  • Daughter asking, “Do you have to work tomorrow?”
  • Desire to spend more time with family
  • Realized could achieve financial freedom faster with multi-family

[7:16] How Brad funded his first multi-family deal

  • Used Dave Ramsey program to cut expenses
  • Paid off house
  • Funded 12-unit with home equity loan

[8:14] Brad’s experience with Financial Peace University

  • Listened to Dave Ramsey audio discs with wife
  • Employed common sense budgeting
  • Made lifestyle adjustments (less eating out, cash budget for groceries)
  • Paid off credit card debt, auto loans and house
  • Felt safe in case of another downturn

 [11:23] Brad’s next two multi-family deals

  • Second deal six months after first
  • Bought another 12-unit with partner (property manager)
  • Third deal (63-unit) four months later
  • Bought 50/50 with different partner (realtor)
  • Replaced income in under two years

[13:23] How Brad developed the confidence to do his first multi-family deal

  • Reading books
  • Training, networking
  • Honed skills in financial analysis

[14:01] Brad’s advice around funding multi-family deals

  • Look for cheapest method
  • Home equity loan only 3.3% interest
  • IRA (taxes, penalty for withdrawal)
  • Syndicating

[15:19] Brad’s experience syndicating deals

  • Awkward to ask for money at first
  • Not as difficult as imagined
  • Frame as offering opportunity for 15% average annual ROI

[16:41] Brad’s secrets to becoming financially free in two years

  • Get your expenses under control
  • Employ courses that teach step-by-step process
  • Income will snowball

[18:00] The significance of the first deal

  • Learn the language
  • Contacts, team in place (property manager, banker, inspectors, real estate brokers)
  • Understand mechanics of deal
  • Become addicted to cashflow
  • Want to grow, take pressure off day job

[19:27] How Brad found time to do real estate on the side while working a demanding job

  • Full-time engineering manager with 23 employees (50-60/hour weeks)
  • Looked for deals before work
  • Made phone calls during lunch hour
  • Saw apartment buildings after work, weekends

[20:20] How Brad’s life has changed

  • Building stronger relationships with family, friends
  • Working out, eating well
  • Getting enough sleep
  • Completing projects had put off
  • Bonding with coaching students (Ultimate Apartment Investing Coaching Program)
  • Quitting full-time job allows to think more strategically, design life to make impact

[22:30] Brad’s perfect day

  • Wake up without alarm
  • Work out
  • Family time
  • Coach students
  • Look for new deals
  • Take vacations at will
  • Every day feels like Saturday

[23:22] How Brad wants to be remembered

  • Family man
  • Mentor
  • Inspire people to take risks (it’s risky not to go for it)

[24:34] Brad’s best advice for aspiring multi-family investors

  • It’s more doable than you realize
  • Choose five-year retirement plan over 40-year retirement plan

Connect with Brad

Ultimate Apartment Investing Coaching Program

Apartment Investors of Michigan Facebook Group

Resources

Apartment Building Investing Session #55

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

The Millionaire Real Estate Investor by Gary Keller

Bigger Pockets

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

The Financial Freedom Summit Live

Review the Podcast on iTunes


What is stopping you from achieving financial freedom through apartment building investing? Is it because you don’t have single-family experience? Are you intimidated by the perceived complexity of the multi-family space? Or maybe you think you don’t have enough money to consider pursuing multi-family deals? Today’s guest has encountered and overcome all of these limiting beliefs, and today he reveals how to get out of your own way and get on the road to financial freedom.

Tyler Sheff is the founder of CashFlowGuys.com and the host of the Cash Flow Guys Podcast. He was making six figures as a merchant mariner when he and his wife took a hard look at their future. Tyler didn’t want to wait until he was 65 to enjoy life, so he took compensatory time and gave himself six months see if real estate investing would prove viable and provide the cashflow necessary to attain financial freedom.

In just 11 months, Tyler had replaced his income. At that point, he had invested in 26 units in Florida and Tennessee – using none of his own money. Now he leverages his 17 years of experience to demystify the real estate investing space, encouraging others to focus on cashflow and take massive action toward their goals. Today, Tyler shares his journey, explaining how he landed his first few multi-family deals, why single-family experience is unnecessary in the apartment building space, and how he employs relationship marketing to raise capital. Listen in as he unpacks each of the limiting beliefs that held him back and reveals how to overcome ‘analysis paralysis’ and move forward with your dreams of building passive income and escaping the rat race.

Key Takeaways

 [2:55] How Tyler got started in real estate

  • Desire to ‘get rich quick’
  • Made money as house flipper
  • Sold portfolio before market crash
  • Acquired huge tax bill
  • Went to work for government as merchant mariner
  • Climbed ranks to six-figure salary

[4:32] Why Tyler returned to real estate

  • Way to legally, ethically avoid taxation
  • Focus on cashflow this time (not appreciation)
  • Job on ship kept away from family
  • Not feasible to continue for 20 years (physical toll)
  • Wanted better quality of life, time on hands

[8:08] Tyler’s experience as a landlord

  • ‘Accidental landlord’ in late ‘90’s to maximize returns on sales of fix and flips
  • Got into multi-family in 2014 to scale quickly

[9:10] Tyler’s first multi-family deal

  • Pre-approved for VA mortgage
  • ‘For Rent’ sign on four-plex
  • Paid zero down, received check for $1700 at closing
  • Moved into one unit, rented other three
  • Rehabbed quickly
  • Cashflow right away
  • Converted one unit to vacation rental
  • Cashflow increased from $1,200 to $5,000/month

 [12:12] Tyler’s next two deals

  • Learned to raise capital (Secrets of Successful Syndication seminar, Sam Freshman book)
  • Built team, cut teeth on ten- and 12-plex in Memphis
  • Tennessee known for cashflow (not organic appreciation)
  • ‘Overimproved,’ didn’t see anticipated ROI
  • Learned to analyze needs of tenants
  • Brought to total of 26 units in 11 months
  • Capital raised through IRA lenders
  • Tyler able to quit government job

[17:22] The limiting beliefs that held Tyler back

  • Analysis paralysis (first deal so good, couldn’t stop comparing)
  • Fear of making mistakes was crippling

[19:22] Why single-family experience is unnecessary to enter the multi-family space

  • ‘Almost better off with no experience’
  • Tyler feels single-family background made him too conservative

[21:49] How Tyler achieved multi-family deals without using any of his own money

  • Partnered with experienced property management company
  • Enlisted exceptional legal and accounting teams
  • Experience of team led to capital (didn’t matter that Tyler was inexperienced)

[23:05] How Tyler leveraged ‘relationship marketing’ to raise capital

  • Started podcast, Cashflow 101 workshops
  • Positioning self as expert led to referrals
  • Matched investors with experienced syndicators
  • Learned from those syndicators (willing to help)

[24:44] Why the complexity of multi-family is a limiting belief

  • Same as single-family, just larger scale (only one roof)
  • Tyler contends apartments are easier to work with
  • Many moving parts, must be able to manage others effectively

[25:50] The importance of Tyler’s first deal

  • Critical in realizing he could do this
  • Second and third deals built confidence as he encountered and overcame problems

[26:56] How Tyler’s life has changed

  • Doesn’t have to ‘hunt’ for next check as buy and hold investor
  • Receives mailbox money each month
  • Continues to attract capital, source opportunities
  • Time available to educate others with free content
  • Freedom to spend time with family

[29:51] Tyler’s perfect day

  • Watch sunrise in kayak
  • Fish all morning
  • Work on podcast, instructional video in afternoon
  • Help others attain same kind of financial freedom

[30:27] Tyler’s advice for aspiring multi-family investors

  • What do you have to lose?
  • Only tangible thing is time
  • Educate yourself and take action

[31:02] How Tyler wants to be remembered

  • As change-maker who ‘made difficult stuff simple’

Connect with Tyler

Cash Flow Guys

Tyler’s YouTube Channel

Resources

Secrets of Successful Syndication

Principles of Real Estate Syndication by Samuel K. Freshman

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building


More money, more problems.

One of the major pain points for high net worth individuals involves taxes. Today’s guest was hit hard with a $497K bill in 2010, and that’s when he decided stop giving his money away to the IRS and start investing in multi-family properties!

David Zook is a wildly successful entrepreneur and experienced investor in the multi-family space who has syndicated over $50M worth of real estate in his career. His portfolio includes 3,000 apartment units in several states as well as Ambergris Caye, the largest resort in Belize. David has entered the ATM market as well, capitalizing on another investment that offers tax-advantage cashflow.

David is also a sought-after speaker and published author who has presented at venues such as the International Business Conference, The Jason Hartman Real Estate Mastermind, and The Cash Flow Wealth Summit. He credits his success to working with world-class teams, and today he discusses why it’s patriotic to take advantage of available tax breaks, the AHA moment that initiated his transition from passive investor to real estate syndicator, and how multi-family investing has evolved over time. Whether you’re a high net worth individual looking to reduce your tab with the IRS or a syndicator looking to raise money, this episode is for you. Listen in as David shares how he leverages paper loss and cost segregation to reduce his tax bill from $475K to nearly zero.

Key Takeaways

[5:43] Why it’s patriotic to take advantage of tax breaks

  • Incentives encourage certain activities (e.g.: oil exploration)
  • Government rewards for engagement

[7:27] The tax benefits associated with multi-family investing

  • Without creativity, can write off in 27½ years
  • Take ‘paper loss’ (allows to claim 3.6% annual loss)
  • Cost segregation study accelerates depreciation
  • Reinvest capital would have given to government

[10:49] How to exercise cost segregation

  • Licensed professional evaluates property
  • Report breaks down depreciation of component parts (i.e.: washer/dryer, pavement, plumbing)
  • Write off 70% of physical asset in five to seven years

[13:07] David’s advice around choosing syndicator (as a passive investor)

  • Find competent people with track record of success
  • Watch syndicator closely in early stages
  • Start small

 [15:08] How David transitioned from passive investor to syndicator

  • Came into market with cash, partner brought opportunities
  • Ran out of cash, invited family to invest
  • Finally had to slow down as ran out of cash
  • AHA moment on board of local startup bank, discussing .5% interest on CD
  • Realized could offer others double-digit returns via multi-family

[18:02] David’s approach to passive investing

  • Not involved in daily headaches
  • Must trust, believe in partners
  • ‘Team is more important than asset’

[20:24] How David raised money for his first deals as a syndicator

  • Psychological challenge (reputation in business)
  • Lived in Amish country, visited successful farmers
  • Listened to stories, identified pain points
  • Shared own successes
  • Raised $850K
  • Now can send email, get funding in two hours

[24:51] How David structures a deal

  • 5-10% range of cash-on-cash return
  • Investors concerned with consistent quarterly cashflow
  • Keep it simple

[26:28] How multi-family investing has evolved

  • Fewer deals today, must hustle
  • David’s team no longer aggressively chasing deals
  • Good broker, reputation for closing can procure 5-10% discount

[29:52] David’s ATM investing opportunity

  • Started as passive investor in 2012
  • Became partner last year, raised $9M in seven months
  • Introduces investors to exclusive asset class
  • Fits philosophy of investing for tax-advantage cashflow

Connect with David

The Real Asset Investor

Email info@therealassetinvestor.com

Email atm@therealassetinvestor.com

Resources

Email infor@therealassetinvestor.com

  • 8 Real Life Lessons for Syndicators and Their Investors
  • K-1 Sample (How Depreciation Works)

Robert Kiyosaki Books

Review the Podcast on iTunes

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building


Real estate is no longer a local game, and smart apartment building investors have properties all over the country. The tricky part is finding a way to consolidate the data so that you can manage and analyze your portfolio all in one place. Is it possible to streamline the important property management processes when your investments are operated by different property managers using different software in different states? Today’s guest says, ‘Yes, you can,’ as she reveals how to remotely self-manage your real estate portfolio.

Dana Dunford is a real estate management specialist, licensed agent, and technology guru out of San Francisco. After earning her MBA from Harvard Business School in 2015, Dana co-founded Hemlane, a technology-enabled property management solution designed to support real estate investors in the remote management of their rentals. As CEO of the company, Dana understands that the best investments may not be in your backyard, and she is on a mission to provide investors with a single platform that consolidates and manages properties using intelligent software, virtual maintenance coordinators and local support.

Dana’s impressive resume includes positions at Apple, where she was a part of the worldwide financial planning and analysis team, and tech startup Nest, which was acquired by Google for $3.2 billion in 2014. Today she shares her expertise with the Apartment Building Investing audience, discussing the role of a property manager and the pros and cons of self-management. She covers the metrics you should be tracking as an owner, the benefits of property management software, and the processes that should be centralized across your portfolio. If you have between two and fifty properties, this is a must-listen interview that uncovers the tools available to help you remotely manage your investments.

Key Takeaways

 [3:25] The costliest expense in the property management space

  • Bad tenants
  • Turnover costs
  • Eviction expenses
  • Vacancy during inopportune months

[4:39] How to avoid the expenses associated with turnover

  • Advertise early and often (good tenants look 30 days out)
  • Advertise on as many sites as possible
  • Respond quickly, schedule showings asap
  • Screen thoroughly via comprehensive background/credit checks on every applicant (not just primary)

[6:28] The pros and cons of self-management vs. hiring a property manager

  • Makes financial sense to hire property manager for class C and D properties
  • Consider self-management in case of class A properties
  • Good idea to have licensed professional you trust ‘on the ground’
  • Maintain a sense of control by having access to financials, business records

[8:23] The role of a property manager

  • First to blame, last to get credit
  • Must be jack of all trades (finance/accounting, maintenance/repair, salesperson)

[10:17] Dana’s guidance around making property managers ‘offensive players’

  • Open communication, transparency in decision-making
  • Establish owner’s criteria for approving tenants
  • Collaborative partner when problems arise

[11:41] Dana’s advice about interacting with your property manager

  • Frequently in beginning to establish expectations, any time issues arise
  • Weekly call if oversee more than 200 units
  • Email weekly summary (# of tenant applications, leads)

[13:18] The benefits of property management software

  • Provides owner with real-time insight
  • Long-term savings offset $30 monthly investment

[14:28] The metrics owners should be tracking

  • Income statement is crucial (profit/loss, expenses, ROI)
  • Should be able to answer general questions about portfolio
  • Reasons for vacancies
  • Tenant risk mitigation (Following policies? Inspection reports?)
  • Financial risk (Autopay? Late payments? Late fees?)
  • May shift based on need (maintenance, marketing)

[16:17] The processes an owner should prioritize

  • Tenant selection
  • Legal contracts
  • Maintenance management

[17:39] How to incentivize tenants to pay on time

  • Daily late fees
  • Require payment of late fees before rent
  • Report late payments to credit bureau
  • Check state/county laws

[19:34] The processes Dana recommends centralizing across your portfolio

  • Marketing
  • Application
  • Financials, bookkeeping
  • Maintenance tracking

[21:15] How to consolidate your records

  • Newer software allows for integration (email support team with questions)
  • Export all data to single platform (e.g.: QuickBooksSmartMove, Excel)
  • Enlist help of VA only after processes in place

[24:45] The free tools Dana recommends for managing your portfolio

  • Trello (project management)
  • Slack (team communication)
  • Google Sheets
  • Dedicated email, phone number and business bank account

[25:59] The fundamentals of Hemlane software

  • ‘Best investments not in backyard’
  • Add any property to platform
  • Consolidates data for entire portfolio
  • Streamlines property marketing, applicant screening, lease tracking, rent/payments and maintenance

Connect with Dana

Hemlane

Hemlane on Twitter

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Free eBook: The Secret to Raising Money to Buy Your First Apartment Building


‘When others are fearful, be greedy. When others are greedy, be fearful.’ Today’s guest took Warren Buffet’s advice to heart, moving past her fear and reaching out to investors at the top of their game to ask for guidance as she shifted from single-family fix and flips to 300-plus unit multi-family properties. Her bigger-is-better philosophy has led to a love of investing in sizable unloved properties and performing a full-gut rehab to revitalize the property – and the community.

Kira Golden is the CEO of Direct Source Wealth, a real estate development company out of Denver that does direct deals and serves as a platform for new and experienced investors. By the time she was 18, Kira had holdings in both the real estate and stock market. After graduating Magna Cum Laude from George Washington University with a master’s in public administration, Kira worked as a financial advisor at Edward Jones until she was in a position to live off her investment income. She currently owns properties in Washington, Colorado, Arizona, Illinois, Ohio, Puerto Rico and France.

Kira is on a mission to bring high-quality deals to Main Street, providing clients with the financial freedom she has earned through investment in real estate. Today she shares how she financed her first deals, what prompted her shift from single- to multi-family properties, and why she reaches out to big name investors at the top of their game. Listen in to understand how to choose the right equity partners and why Kira recommends investing in apartments – the sooner the better!

 Key Takeaways

[2:25] How Kira got her start in real estate investing

  • Watched Robert Kiyosaki infomercials as ‘12-year-old insomniac’
  • Experienced windfall/freak-out cycle as daughter of inventor
  • Desire for consistent cashflow led to buying houses at 18
  • Bought five houses in three years

[5:13] How Kira financed her first deals

  • Invested $3K savings in stock market, grew to $10K
  • Used $10K to finance first house
  • Put $1K deposit on condo, then sold option to homebuyer (value had increased during construction)
  • Used profits to finance second house

[9:14] Kira’s minimalist philosophy

  • Continued to save money, work full-time during college
  • Conscious decision to ‘live like college kid’ until age 30
  • Passive cashflow exceeded expenses by 22 ($2K/month)

[10:56] Kira’s shift from single- to multi-family investments

  • Goals grew from $1M to $100M
  • Weary of fix and flips, borrowing hard money at 18%
  • Got into private lending
  • Time became more valuable than money
  • Feedback from lenders indicated that $1M loan for multi-family was easier to secure than $100K loan for single-family home

[15:07] Kira’s intent behind reaching out to potential partners

[16:56] Kira’s first 30-unit multi-family deal

  • Continues to take 20% of time three years later
  • Bank deal, bought distressed asset
  • Bought $5.4M bank note for $1M
  • Invested $2.5M to complete construction
  • Used investor capital, joint venture with equity partner

[19:19] How Kira attracts investors

  • Shares her excitement for deals
  • Distinguish between fear and intuition
  • Go where you’re afraid, reach out to big names
  • Founder, CEO of fifth largest mortgage bank in US
  • Large real estate investors at top of game

[23:12] What Kira learned from reaching out to sought-after investors

  • People you’re hero-worshipping are just people
  • Deep respect for what they have accomplished
  • Emulate skills that made them successful

[27:34] The importance of alignment in selecting an equity partner

  • Had to buy out partner on 30-unit after legal battle
  • Long-term buy and hold vs. high-velocity fix and flip will end in conflict

[30:47] How Kira would approach raising money for 30-unit deal without equity partner

  • Not beyond door-knocking (pushing own boundaries to raise more capital)
  • Approach bank to carry back the debt
  • Raise construction capital after closing ($250K/month)

[31:56] Kira’s 315-unit full gut rehab

  • Mentor offered pocket deal, he functioned as silent partner
  • Vacant, drug-/crime-infested area of Dayton, OH
  • Turned around, named top-ten complex in city
  • No equity partner, built engine to find investors (first generation made good)

[34:16] Why Kira wishes she had done multi-family sooner

  • Fix and flip experience was valuable (can’t be snowed by property management companies, contractors)
  • Two years would have been long enough
  • Multi-family is a better vehicle
  • Had to build confidence while maintaining roots

[37:21] Kira’s advice for aspiring real estate investors

  • Determine whether you are a deal junkie or just want to retire early
  • 10% who are deal junkies should align with experienced partner to short-cycle learning process

[39:15] What’s next for Kira and Direct Source Wealth

  • Three days meditating in Sedona
  • $100M fund to bring high-quality deals to Main Street

Connect with Kira

Direct Source Wealth

Connect on LinkedIn

Facebook

Resources

Partner with Michael

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building


The vast majority of women perform a number of unpaid jobs every day, from childcare to housekeeping to food preparation. There is simply no time to pick up another job! But today’s guest argues that there is a way for women to generate substantial income that doesn’t require a lot of time and energy – apartment building investing.

Whitney Nicely believes that every woman should control her own destiny by investing in real estate as soon and as much as possible. Born into a family of entrepreneurs, Whitney was inspired to invest in real estate as a creative outlet that would allow her the freedom to be her own boss. She flipped her first house in 2009, and has since grown her portfolio to include 17 residential houses, 19 apartment units and seven chunks of vacant land across east Tennessee.  

Whitney’s philosophy is to take action first and figure it out as she goes. Her bold, ‘throw spaghetti at the wall’ strategy has proven successful, and now she teaches women how to invest in real estate with no money, no credit and no bank necessary. Listen in as she shares why she prefers apartments to single family homes, how she landed and financed her multi-family properties, and her advice around building a reputation as a local real estate authority. Learn why women need to start building a portfolio – today!

Key Takeaways

[2:27] How Whitney got her start in real estate

  • Mom is real estate investor (mailbox money)
  • Went in with no plan
  • Bought land for $1,500
  • Rents driveway and land for $750/month

[5:38] Whitney’s experience with single family homes

  • Bought two houses to rent
  • Realized would take 115 years to get money back
  • Discovered lease option (no money, no credit)

[6:38] Why Whitney quit the family business to do real estate

  • ‘Too much family, not enough fun’
  • Family of entrepreneurs
  • Sought creative outlet of her own

[7:29] The advantages of apartments (vs. single family homes)

  • More money with less time
  • Property manager to deal with problems
  • One roof, one tax bill
  • If one set of renters can’t pay, mortgage still covered

[12:30] How Whitney landed her three multi-family units

  • Property in country near industrial park
  • Previous owner lost through foreclosure
  • Local bank owned, managed by local realtor
  • Listed in small, local MLS (big players unaware)
  • Whitney in contact with agent, lead when price dropped
  • Used HELOC from house paid off to make offer ($25K for 5-unit, $35K for 11-unit)

[15:58] The cashflow on Whitney’s current multi-family properties

  • 19 units total
  • Triplex units bring in $550/month for each, mortgage $60 ($900 profit)
  • Five-units rent for $500/month, mortgage $800
  • 11-unit brings in $4,000/month, mortgage $1,100

[16:52] The other expenses associated with owning apartments

  • Real estate taxes, insurance
  • ‘Bug guy’
  • Property manager
  • Yard maintenance

[17:51] What’s next for Whitney

  • Mobile home park
  • Old building to rent as think tank/co-op office space

[19:04] Whitney’s early real estate misstep

  • Purchased house she hadn’t seen for $15,000
  • Fleas, squishy floors, dubious neighbors
  • Could not rent
  • Sold at auction for $11,000

[21:50] Whitney’s philosophy around taking action

  • Once you buy, three options (sell, rent, do something creative)
  • Play ‘what if’ too long, someone else will take your deal
  • Not bothered by not knowing what’s next

[24:27] How Whitney chooses people to do deals with

  • Lease option not for everyone
  • Focus on people tired of being landlord or making payment on empty house
  • Adopt take-it-or-leave-it attitude

[25:45] What sets Whitney apart from other investors

  • Talks to five to ten sellers per day
  • No fear, just put it out there
  • Finds off-market deals via personal Facebook page
  • Provides HGTV-style edutainment on social media
  • Local authority (crooked ‘I buy houses’ button)

[28:14] Why Whitney believes all women need a real estate portfolio

  • Allows to control own destiny
  • Statistically live longer, may have tendency to spend more money
  • Already do unpaid work at home, no time to pick up extra job
  • Extra $10,000 provided by real estate can make or break marriage, retirement

[30:03] How Whitney’s family reacted to her real estate investments

  • Husband, family not always on board
  • Thought she was wasting time, money
  • Started to take seriously after first $60,000

[32:34] Whitney’s advice for aspiring apartment building investors

  • Take action, figure out as you go
  • Don’t sign your name on $100,000 loan if not comfortable
  • Start small (land, dinky house, ‘lipstick-on-a-pig flip’)
  • Real estate is not complicated

Connect with Whitney

 whitneynicely.com

Whitney Buys Houses on Facebook

 7-Day Lead Challenge

 Resources

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building


Most of us feel uncomfortable asking people for money, yet as apartment building investors we must raise capital to operate a successful business. Today’s guest argues that he doesn’t ask people for money, but offers opportunities to collaborate on projects that are a good fit for individual investors.

Victor Menasce is managing partner of US Real Estate Partners LP and author of the book Magnetic Capital: How to Raise All the Money You Need for ANY Worthy Venture. He spent the first 25 years of his career in high tech, achieving success as a microprocessor designer. But the frequent travel was a strain, and Victor realized that the days of building wealth in that industry were over. In search of a career that would have a meaningful impact, in an industry known for creating wealth, he started investing in real estate as a side hustle. His first projects involved medium-term executive rentals for parliamentary and embassy staff in Ottawa as well as local rent-to-own transactions. Victor then expanded to US markets and transitioned to real estate full-time.

His current specialty involves building new apartments in an infill urban setting across multiple domestic and international markets. Leveraging the skills around raising capital he developed in the tech industry, Victor has become an expert in helping investors divert their money from high-risk equity markets into safe multi-family real estate assets. Today Victor details the five key elements of raising capital and explains why some people repel the very money they’re trying to raise. Listen and learn from a developer who has raised more than $300 million in his nine-year real estate career!

Key Takeaways

[7:01] Why Victor views real estate as a team sport

  • Foreigners viewed as risk (lenders perceive lack of recourse)
  • Local partner facilitates investment

[7:47] The most difficult part of Victor’s transition from full-time job to real estate

  • Used savings to invest
  • Caused stress as savings dwindled
  • Chose wrong partners early on

[10:00] Why some repel money when they’re trying to raise it

  • Mistake to skip steps in basics of human relationships
  • Can go from natural progression to ‘creepy’ very quickly
  • Pace conversation so doesn’t feel forced

[11:17] The first key element of raising capital – RELATIONSHIPS

  • Build genuine relationships with prospective investors
  • People don’t want to be used
  • Forcing a connection pushes people away

[15:18] The second key element of raising capital – TRACK RECORD

  • Proof of results necessary in raising money
  • If just getting started, partner with someone who is established (borrowed credibility)

[17:42] The third key element of raising capital – TRUST

  • Goes beyond ‘dealing with honest person’
  • Includes alignment of intention
  • Decisions happen quickly when trust exists
  • Employ ‘trial close’

[20:09] The fourth key element of raising capital – COMPELLING OPPORTUNITY

  • ‘Compelling’ in eye of beholder
  • All good deals get done
  • Consider creating your own deal (scarcity vs. abundance mentality)

[25:40] The fifth key element of raising capital – ALIGN PROJECT GOALS WITH INVESTOR

  • Must be a good fit (i.e.: shoe shopping)
  • Different segments/classes of investors
  • Criteria include rate of return, control structure, tax consequence, security, risk, etc.
  • Sophisticated investors clear on all criteria

[30:55] The biggest mistake entrepreneurs make

  • Raise too little money
  • Delays, increased construction costs may leave you short
  • Victor recommends securing extra 5% equity
  • Hard to raise money when desperate

[33:28] How to invest like a billionaire, even if you’re not

  • ‘Buy on the line, move the line’
  • Identify dividing line between ‘hot’ and so-so neighborhood
  • If line arbitrary, purchase 5-10 on depressed side
  • Move line and you set value

[35:36] Victor’s advice for people hesitant to ask for money

  • Reframe as opportunity to collaborate on project

Connect with Victor

 victorjm.com

Resources

 Magnetic Capital: How to Raise All the Money You Need for ANY Worthy Venture by Victor Menasce

 Magnetism Scorecard

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

 Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

 


As apartment building investors, we realize that off-market deals are the holy grail of our business. But we also know that you have to build relationships with industry insiders in order to access those deals on multifamily properties, and it can be difficult to cold call asset managers, hedge fund operators and associates at private equity firms. If only there was a social media platform that afforded access to a database of professionals and their contact information… Hey, wait a minute! That platform does exist, and today’s guest is here to share how you can use LinkedIn to find off-market properties and earn massive profits.

Jason Lucchesi is known in real estate as the #1 off-market property strategist. He got his start in the industry with Countrywide Home Loans in 2002, serving in the mortgage origination space. In his five years there, he worked his way from account executive to branch manager, but Jason had the good sense to jump ship at the end of 2007 and shift into full-time real estate investment. He has closed REOs, short sales, bulk packages, non-performing notes, and both residential and commercial off-market properties.

Today Jason shares the step-by-step process of connecting with real estate professionals, from initiating a dialogue on LinkedIn to closing the off-market deal. Listen and learn the ‘bank language’ you need to know to communicate with asset managers and land distressed assets for 20-30% of fair market value.

Key Takeaways

 [3:01] The types of investments Jason pursues

  • 70% residential
  • 30% commercial

[6:37] How Jason got into commercial investments

  • Referred to owner looking to liquidate for retirement (2010)
  • Leveraged private money
  • Negotiated seller financing (capital gains not as high)
  • Implemented renovations to increase occupancy rates

[8:36] Jason’s first multifamily deal

[10:47] How Jason employs LinkedIn to find off-market deals

  • Initiate search for professionals with ‘asset manager’ in title
  • Determine whether he/she works at a bank (distressed assets)
  • Connect for access to contact info (email address, phone number, etc.)

[14:05] How Jason initiates contact with asset managers via LinkedIn

  • Look for real estate groups the person is involved with
  • Customize a message with mention of common groups
  • Once invitation to connect is accepted, send email and LinkedIn message
  • Initiate a phone call after a couple of days

 [18:18] The script Jason uses in dialogue with asset managers

  • Own real estate investment company
  • Nationwide investor
  • ‘Looking to deploy acquisition capital’
  • Ask about ‘assets looking to liquidate’

[19:20] How Jason works with asset managers once connection is established

  • Outlines his criteria
  • Signs NDA
  • Asset manager sends Excel doc list of properties by state
  • Receives package from asset manager once a month moving forward

[24:14] The property information typically provided by asset managers

  • Appraisals
  • BPOs
  • Title work
  • Unpaid principle balance
  • Current market value
  • Monthly payment

[27:00] The key strategy that has worked best for Jason

  • Reaching out to agents, homeowners, or owners of record
  • Learning as much about property as possible before crafting LOI, purchase agreement

Connect with Jason

Jason’s Course

jasonlucchesi.com  

Resources Mentioned

 Right Flipping Now by Jason Lucchesi

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building


Paul Moore had just gotten his real estate license when he wrote his first book, The Definitive Guide to Smith Mountain Lake Real Estate. Though he didn’t have a track record as an agent, the book made things happen for him, attracting people, money and listings. The work he put into researching the book established him as a professional and propelled his career forward in a big way.

We all have a story to tell, and most of us have considered writing a book to share that story. Being a published author pays huge dividends in terms of credibility, and it’s something you can use as leverage in making deals… Especially if you’re new to the world of investing in apartment buildings. But how in the world do you get started? And how do you carve out the time to sit down and write an entire book?

Nick Raithel is the creator of 7-Hour Book, a proven system that can give you clarity in terms of what you want to write about, assist you in developing an outline, and even partner with you in the writing itself if you don’t have the time to devote to the project. He is on a mission to help real estate investors get the recognition they deserve and attract new business and investment opportunities. Today Nick discusses how publishing a book aligns with the objectives of a real estate investor, the benefits of the ‘thud factor,’ and the components of a book launch. Listen in to learn the real-world results you could enjoy from being a published author!

Key Takeaways

[1:43] How publishing a book aligns with the objectives of a real estate investor

  • Establishes credibility
  • Presents speaking/coaching opportunities

[4:34] The benefits of the ‘thud factor’

  • Physical book differentiates you from the crowd

[5:40] The most common mistake made by aspiring writers

  • Difficulty nailing down a topic/approach

[7:38] The real-world results of publishing a book

  • Invitations to speak at conferences
  • Coaching/consulting opportunities
  • Attention/leads

[9:19] An example of the 7-Hour Book Process

  • Client wanted to establish credibility in a particular market
  • Sought specific type of customer, wanted to establish themselves as most qualified choice
  • 7-Hour Book flushed out general idea to create structure around 7 principles
  • Each chapter educated prospect and demonstrated experience

[12:40] How to develop an idea for a book

  • Go to bookstores, look at own shelves to see what’s out there
  • ‘Hijack’ an idea or topic
  • Consider the angle that you’re ‘sick of it all’ and ready to share the truth
  • Or write as a seasoned veteran who can ‘set the record straight’

[14:18] How 7-Hour Book is different from a ghostwriting service

  • Focused on results
  • Includes call-to-action for reader

[16:21] How to measure those results

  • Track web traffic/phone calls generated by call-to-action

[18:04] The elements of a book launch and the associated marketing

  • Media spots
  • Reviews (make a difference in the minds of buyers)
  • Provides ‘social proof’
  • 7-Hour Book team will handle for you or advise

[19:51] How the Book Boost provides the ‘kick in the pants’ you need to get started

  • Team designs basic, thorough plan
  • Designed to allow you to write book yourself (if you have the time and ability)
  • Package is under $200

Connect with Nick

Book Boost Special Offer

Resources Mentioned

 Paul Moore Podcast Episode

 The Definitive Guide to Smith Mountain Lake Real Estate by Paul Moore

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Direct download: MB_065_-_The_7_Hour_Book__With_Nick_Raithel.mp3
Category:Commercial Real Estate -- posted at: 7:19pm EDT

As apartment building investors, we understand that brokers control the vast majority of real estate deals – and we know that having a ‘in’ with brokers is the only way to score those elusive off-market deals. But if you are just getting started, how exactly do you build rapport with the brokers and partner to source off-market deals?

After graduating from the University of North Texas with a degree in finance, Michael Becker spent nearly ten years at Wells Fargo. During the last five years of his stint in commercial real estate banking, he focused exclusively on multi-family properties and became the number one loan producer for his division three years running. But Michael recognized that he was on the wrong side of every deal, and he made the switch to apartment building investment in June of 2014. In just three years, he has scaled the business, Strategic Property Investment (SPI) Advisory from zero to 4,300 units. Michael also hosts Old Capital, a podcast aimed at multifamily real estate investors.

Today Michael offers sage advice regarding how to cultivate a team, establish credibility and land your first deal. He also shares how to meet brokers face-to-face and establish relationships so that they will partner with you on off-market deals, as well as strategies for sourcing pocket listings. Listen and learn how to provide value to brokers so that you’re top-of-mind when deals come available.

Key Takeaways

 [3:29] How Michael was able to scale from zero to 4,000 units in three years

  • Business partner with complementary skill set

[6:18] Why Michael feels so strongly about utilizing brokers to find deals

  • Control vast majority of deals
  • Relationships with owners
  • Brokers do the legwork, bring you potential deals

[7:45] Michael’s advice for newbies on how to build relationships with brokers

  • Network face-to-face via meetup groups, events
  • Get on broker lists and tour
  • Provide brokers with detailed feedback

[9:10] How Michael scores the elusive pocket listing

  • Track record of performance
  • Known in the small broker community (12 brokers control 80% of the DFW market)

[10:58] Michael’s tips for new investors to be taken seriously and land their first deal

  • Be realistic about your resources
  • Make it a ‘we’ conversation
  • Build a credible team, including a commercial mortgage broker, management company, lawyer and insurance agent

 [13:40] Michael’s recommendations for networking events

[16:29] How to maintain a solid working relationship with brokers

  • Check in every two weeks to remain top-of-mind (without being annoying)
  • Provide value by sharing industry-specific news items

[19:00] How to source off-market deals

  • Pursue properties approaching loan maturity
  • Ask brokers about recent BPO’s in which a competitor got the listing
  • Subscribe to data services and mine for properties
  • Download and archive OMs to track broker-owner relationships

[25:48] Other ways to find off-market deals

  • Establish a foothold in a particular area of town
  • ‘Gift’ brokers with a list of properties you are interested in

Connect with Michael

Old Capital Podcast

SPI Advisory Website

Email mbecker@spiadvisory.com

Resources Mentioned

Marcus & Millichap Events

Bisnow Events

ALN Apartment Data

CoStar Data Services

Yardi Matrix

trepp.com

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

 


Society teaches us that hard work leads to a great life, so we build a career first and try to fit life into what is left over. But perhaps there is a better approach… What if we could design our lives first, and then fit business into what was left?

Steve Cook began his career in the restaurant business, but failed miserably. Success came with a move to real estate investing, and three years in he had $7M in assets. Flipping houses allowed him to accumulate a great deal of wealth, and his financial advisors were committed to helping him accrue even more. Steve was doing everything right, but he wondered when he would get to enjoy it. The business had become his life, and he was compromising everything that was important to him.

Committed to simplify his life and break free from lenders, Steve made radical changes. He stopped borrowing, downsized to reduce expenses, and pared down his work hours so that he could be the husband and father he wanted to be. In the book Lifeonaire, Steve Cook outlines his approach to the pursuit of an abundant life, and today he shares that philosophy with us. Listen in and learn how to shift your mindset, overcome cultural conditioning, and pursue the life you want right now!

Key Takeaways

[7:09] The message of Steve’s book, Lifeonaire

  • Plan of pursuing money to one day live a great life is flawed
  • Pursue a great life instead

[8:24] Steve’s moment of realization

  • Tax returns reflected $300,000 in interest paid each year
  • Slave to debt ($4.5M)
  • Consumed by work, compromising what was important

[13:02] How Steve’s life went from simple to complicated in a three-year span

  • In the beginning, it took $25,000/year to make ends meet
  • Three years later, doing everything ‘right,’ $25,000 only lasted two weeks

[13:58] How Steve simplified his life

  • Made a commitment to stop borrowing
  • Developed a life vision
  • Chose only the deals that got him closer to that vision
  • Reduced his working hours (10a-2p, M-F)
  • Downsized to reduce expenses

[20:35] The shift in Steve’s approach to real estate investment education

[21:46] How to reduce your working hours

  • Believe that it is possible
  • Focus only on the most profitable and efficient
  • Trust that the business will produce
  • Appreciate that it is possible to make more when you work less
  • Remember, the WHY will make you more productive

[24:52] Steve’s guidance for living the life you want NOW

  • Determine what you want
  • Believe that it can happen
  • Let go of the idea that you don’t have enough

[26:17] The definition of ‘lifeonaire’ and how the term was conceived

  • A lifeonaire pursues an abundant life
  • Steve had two clients who were focused on being millionaires
  • Both had the ultimate goal of becoming better fathers
  • Neither was convinced that they could be good fathers regardless
  • Steve recognized that the pursuit should be about life, not money

[29:34] Why more people don’t subscribe to the lifeonaire philosophy

  • Cultural conditioning to believe that hard work produces a great life
  • We believe we don’t have enough

[31:05] The greatest challenge for aspiring lifeonaires

  • Shifting mindset in a culture that says you’re wrong
  • Can be overcome by surrounding yourself with people who share your mindset

[32:35] How long it takes to become a lifeonaire

  • Can start instantly with a shift in mindset
  • The pursuit of joy is a life-long journey
  • Expect to see results in the two month to two-year range

Connect with Steve

 Lifeonaire Website

Lifeonaire by Steve Cook and Shaun McCloskey

Resources Mentioned

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building


Perhaps you are hesitant to invest in real estate at the moment because of predictions of an imminent crash. But when is the ‘right time’ to invest? What if I told you that it is always a good time to invest, as long as you make intelligent choices?

Jason Hartman is the president of Platinum Properties Investor Network, a firm specializing in financial planning for real estate investors, and Hartman Media, a production company through which he hosts 20 podcasts that address business, investments and living well. A self-made multimillionaire and serial entrepreneur, Jason has founded 21 companies and initiated several thousand real estate transactions.

Jason obtained his real estate license his freshman year of college and worked part-time for Century 21, learning about the investment side of the industry and developing his own portfolio. He eventually came to purchase and expand his own traditional real estate firm, and negotiated its sale to Coldwell Banker. In anticipation of that check, Jason sought investment advice from Wall Street – and uncovered a need for a financial planning firm-specific to real estate investors. So he created it himself! He is passionate about educating and assisting investors in acquiring pragmatic investments nationwide. Today Jason explains why the media characterization of ‘housing’ is an oversimplification and outlines the different types of markets. Listen and learn how diversification can offer a solid ROI despite market volatility.

Key Takeaways

[4:12] The volatile nature of cyclical real estate markets

  • Receive most attention, media coverage
  • Located in coastal and trophy cities
  • Can make or lose a fortune

[6:00] Jason’s take on Wall Street financial planners

  • Little creativity
  • Don’t use the product themselves
  • Best sales force (easy to invest)
  • Worst product

[6:53] What Jason learned in researching different real estate markets around the US

  • Three types of markets – linear, cyclical and hybrid
  • Invest in more than one market for a solid ROI

[8:56] Why Jason founded a financial planning firm for real estate investors

  • Real estate has the best product, but worst sales force
  • He created the business to be his own customer

[11:22] The misleading nature of media coverage of ‘real estate’ or ‘housing’

  • Cannot lump all markets into a single category
  • Differentiate by product type, price and market (linear, cyclical, hybrid)
  • 400 different markets in the US
  • Case-Shiller Index only profiles 20 metro areas, 15 of which are cyclical

 [12:54] The differences among linear, cyclical and hybrid markets

  • Linear markets grow slowly over time
  • Cyclical markets are like a roller coaster
  • Hybrid markets fall somewhere in between

[16:04] Jason’s advice to investors with much equity who live in cyclical markets

  • Use available tools and technology to invest outside your immediate area
  • Diversify geographically (three to five different cities)
  • Deploy equity in linear markets that generate a good yield

[18:30] Why Jason cautions investors against cheap properties

  • 12% of Americans unbanked
  • Difficult to collect rent from C and D class tenants

Connect with Jason

jasonhartman.com

Creating Wealth Podcast

Resources Mentioned

Marcus & Millichap Multifamily Investment Forecast

IRR Viewpoint Report

Milken Best Performing Cities Report

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building


You can lead a horse to water, but you can’t make him drink. Or can you?

You likely know exactly what you need to do to succeed in the world of apartment building investment, but perhaps you aren’t making forward progress toward your aspirations. Today’s guest explores the psychology of what holds us back and offers actionable techniques to help you take control of your life!  Rob Dial is a performance coach and speaker who has inspired tens of thousands of people – from college students to NFL superstars – to develop a clear purpose and then establish the habits that lead to success. He believes that leaders are not born, but groomed, and he is committed to teaching others how to become the best version of themselves.

Rob’s forte is understanding the human brain and how to hack it to get past the fears and limiting beliefs that are holding you back. Through his work with MWFMotivation, he seeks to help you dig deep and discover what you were put on earth to do. Today he describes the design of the human brain and explains how to employ that understanding to get clear on the ‘pain’ you are running from as well as the ‘pleasure’ you are working toward. Get ready to be inspired as Rob coaches you to shift your mindset and truly show up in the world.

Key Takeaways

[6:38] Rob’s spin on the ‘lead a horse to water’ analogy

[9:10] How our brains work

  • Problem-solving mechanism
  • Designed to keep us alive
  • Move us toward pleasure and away from pain

[10:07] Why people don’t take action – despite knowing what they need to do

[10:27] How to shift your focus to the ‘why’ behind your goal

  • Identify the worst case if you stay the same/don’t hit your target
  • Dig deep (beyond the surface level answers)
  • Ask, “What’s more painful?”

[16:34] How to motivate yourself to take massive action (when life is not that bad)

  • Link where you are now to massive pain
  • View your current situation as unacceptable

 [18:48] Why you must dig deeper than money as a source of motivation

  • Reflect on the true pain point, i.e.: control of your time
  • Peel back the layers by asking, “Why is that important?”

[20:10] How a focus on the ‘pleasure’ you are moving toward keeps you driven

  • Picture the benefits of reaching your goals
  • Doing the difficult things (e.g.: cold calls) gets easier

[25:18] How to identify and explore your personal ‘pleasure’ and ‘pain’

  • Journaling provides clarity
  • What do I want?
  • What am I afraid of?
  • Keep asking ‘why’ to get beneath the surface

[30:43] Why Rob invested in a coach at age 20, despite the expense

  • Explore strategy and mindset
  • ‘I mattered more than the money’
  • Took income from $17,000 to $177,000/year in two years

[37:25] Rob’s best advice to motivate action

  • ‘Don’t play like you get a second at bat’

Connect with Rob

 mwfmotivation.com

MWF Motivation Podcast

MWF Motivation on Facebook

Resources Mentioned

The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

 


What goes up must come down, and a number of experts predict an economic recession in the not-so-distant future. What are the current economic trends you need to understand? What would a recession mean for the real estate market? And how can y ou protect yourself from a potential crash?

I recently returned from the Real Estate Guys 15th Annual Summit at Sea, where I had the opportunity to meet several big players in the real estate industry and experience three key ‘aha moments’ surrounding the power of networking, the unsustainable economic trends initiated by our political system, and the spiritual aspect of being an investor.

The Summit at Sea was life-altering for me, and I am eager to share my new insight. Listen in as I examine the current economic landscape and how existing trends may affect the real estate industry down the road. Learn what steps you can take to not only survive a would-be crash, but thrive and prosper despite it.

Key Takeaways

[1:56] The value of networking via conferences, etc.

  • We tend to limit ourselves as we reach outside our comfort zone
  • You are only one relationship away from making it to the next level (e.g.: Michael Becker’s meteoric ascension from zero to 1,000 units in 12 months)

[3:55] The significance of understanding the political landscape

[4:50] Unsustainable global trends

  • Exponential population growth
  • Debt
  • Oil use
  • Deforestation

[5:07] The fallout from the Federal Reserve bailout in 2008

  • Printed trillions in response to the recession
  • Debt now at $20T, $30T in five years
  • Devaluation of the US dollar

[5:42] Exponential trends in growth of debt

  • Social Security out of cash in 17 years, Medicare in 11
  • $1.5T in college debt, $1T in credit card debt

[6:35] How to respond to this bleak macroeconomic overview

  • Educate yourself about the issues
  • Consider titles by Kiyosaki, Martenson/Taggart, and Griffin
  • ‘You have to see something coming to get out of the way’

[8:34] Doug Duncan’s favorable perspective of the real estate market

  • Chief Economist for Fannie Mae forecasts stability of interest rates in 2017 (pending no major policy changes)
  • Housing market currently experiencing third largest expansion in US history, yet weakest expansion when inflation-adjusted to reflect income and GDP growth
  • Present low housing supply causing prices to rise
  • Housing market likely to do well if recession hits
  • Interest rates would fall to stimulate economy
  • If unemployment stayed under 7%, housing would do reasonably well and rentals would improve

[10:00] Robert Kiyosaki’s approach to the four quadrants

  • Mindset comes first – Be, Do, Have
  • Spiritual language to describe Employee, Self-Employed, Big Business Owner & Investor

[11:43] The mindsets associated with each of the four quadrants

  • Employee – consumed with fear, desire for security
  • Self-Employed – issue with control, difficulty delegating
  • Big Business Owner – struggle with power, ego
  • Investor – not motivated by money/power, truly free

Resources Mentioned

Second Chance for Your Money, Your Life and Our World by Robert Kiyosaki

Prosper: How to Prepare for the Future and Create a World Worth Inheriting by Chris Martenson and Adam Taggart

The Creature from Jekyll Island: A Second Look at the Federal Reserve by G. Edward Griffin

The Real Estate Guys

The Investor Summit at Sea

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Direct download: MB_060_-_How_to_Survive_and_Thrive_the_Next_Crash.mp3
Category:Commercial Real Estate -- posted at: 6:29pm EDT

Obtaining funding can be one of the more difficult aspects of real estate investing. How do you go about finding the right lender? My guest today is making the process quicker and easier by marrying technology and real estate to create an online marketplace where investors and lenders can connect.

Ross Hamilton is the CEO of connectedinvestors.com, the world’s largest network of real estate investors. He began investing in real estate at the age of 19, and soon realized that the more connections he had in the real estate investing world, the more lucrative business could be. He leveraged his understanding of technology to create what he calls “LinkedIn for real estate investors” and became wildly successful during the property value upswing. Ross then had the foresight to diversify prior to the crash, and even thrived during the crash by investing in real estate in military towns.

Ross continues to grow his portfolio as well as his network of real estate investors, as he seeks to change the way money flows through the industry. Listen in as he explains how the Connected Investors platform pairs lenders with investors, how to spot a fake lender, and how technology will continue to affect the future of financing via crowdfunding portals and social networks.

Key Takeaways

[3:22] The key to success in real estate

[3:38] The evolution of funding real estate investments

  • ‘Wild West’ of easy funding led to crash
  • Impossible to attain after crash
  • Smart investors shifted focus to real estate
  • Trillions raised to buy bank portfolios
  • Now there is more money than deals

[6:54] How the Connected Investors platform connects investors with lenders

  • Press 12 buttons and type the property address
  • The platform identifies appropriate lenders
  • Real, active, verified lenders compete via bidding

[8:35] The success of CiX

  • Simplified process makes obtaining loans easier
  • Process $1B in applications every two weeks

[10:10] The types of debt supplied by CiX

  • Currently provide recoursereal estate fin
  • Just added portfolio
  • Making strides to include nonrecourse for commercial 

[12:43] How CiX helps investors with the equity component of funding

  • Small business lender programs for CiX network investors
  • Private lenders in network willing to think outside the box

[14:54] The prevalence of scammers posing as lenders

[18:21] How to qualify lenders and identify scammers

  • Ask for recent closings
  • Verify via public records
  • Contact borrowers as references

[20:02 ] The future of financing

  • Expansion of crowd-funding portals
  • More wealthy individuals investing in real estate
  • Additional capital moving into real estate
  • Added transparency
  • Faster, easier and cheaper to raise capital
  • Evolution of the market by technology

[22:43] Ross’s advice for investors struggling to find funding

  • Evaluate your deal- it’s probably not good enough
  • Consider how you present yourself to lenders

Connect with Ross

TheMichaelBlank.com/cix

Resources Mentioned

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building


When someone decides to invest in an asset, they are essentially investing in a prediction of the future. All investments carry this element of risk, but there are some assets that are much riskier than others. Paul Moore, believes that he has found the perfect investment that offers relatively low risk with high rewards. It may not come as a shock to listeners that this investment is multifamily investing!

Listen in to find out how Paul became a real estate investor, and how the “recipe” for the perfect Investment is allowing him to support charitable causes throughout the world!

Key Takeaways

 [04:26] Paul’s first experience with multifamily investing

  • Built multifamily facility from the ground up in North Dakota
  • Rented out at $13 per square foot

 [06:47] Investments to last a lifetime

  • Paul realized most of the super wealthy made their fortunes in real estate
  • Demographic trends make real estate investing ‘The Perfect Investment’

 [09:54] The changing trends in American home ownership

  • Has dropped from 69% to 63% in 11 years
  • Every percentage drop in homeownership is 1 million households into the renter pool
  • More demand than supply

 [11:52] The 3 drivers behind low home ownership

  • Baby boomers moving back into rentals
  • Millennials seeking flexibility, do not want to be tied down
  • Immigrants rent more and for longer

 [16:33] Multifamily investing return vs. risk

  • Far better than other asset classes
  • Multifamily delinquencies were 90% lower than residential in last recession

 [20:45] The recipe for the perfect investment

  • Passively invest in stabilized, value-add properties
  • Find a trustworthy asset manager
  • Find a capable property manager
  • Find a large and growing market

 [29:02] Giving back through investing

  • Paul never wants to retire
  • He wants to give back - to help stop human trafficking
  • Paul's company shares profits with organizations that are making a difference

Connect with Paul

wellingscapital.com

Email: paul@wellingscapital.com

Resources Mentioned

Podcast: How to Lose Money

The Perfect Investment: Create Enduring Wealth from the Historic Shift to Multifamily Housing

 


Finding the right business partner can be as important as finding the right investment opportunity. A great partner can bring time, money, expertise, and often prove vital to achieving your first MF deal.

Someone who knows all about first deals and partnerships is Joe Fairless, my guest on this week’s show. When I first spoke to Joe on the podcast, back in episode 10, he had just finished closing on a phenomenal 168 unit apartment building for his very first deal. Now,  2 years later, Joe has used the momentum of the first deal to propel himself headfirst into the world of real estate investing, with some incredible results.

Listen as Joe tells us what he’s been up to since we last spoke, including focusing his strengths, utilizing partnerships, and massively growing his real estate portfolio since that vital first deal.

Key Takeaways

[2:52] What Joe has done since his first deal

  • Grown real estate portfolio from $7m to over $100m in just 2 years

[3:36] How Joe achieved such rapid growth

  • Partnerships
  • Identifying his strengths
  • Finding partners whose strengths differ from his

[5:46] Joe’s key strengths

  • Identifying opportunities
  • Building solid business plans
  • Bringing in investor money

[9:59] Smart partnering

  • Joe has used partners on all of his deals (7 so far)
  • He has utilized many different types of partnerships
  • Joe always chooses partners who can provide a new strength

[16:50] Using co-sponsors

  • Partnerships can be Limited or General (GP)
  • GP’s mean bringing someone in on your side to make the deal happen
  • Joe often arranges compensation packages for co-sponsors

[21:14] Joe’s tips for partnerships

  • You might have to give up a lot to get that first deal, but that’s OK
  • Learn to identify when you should and should not partner

[21:45 ] The risks of partnerships

  • If they are property managers, they could be fired, but still own part of the GP
  • Protecting yourself from a bad partner
  • Use a lawsuit only if all else fails

[27:05] Joe’s goals for 2017

  • Make sure investments continue to perform for investors
  • Continue to find valuable opportunities
  • Continue to support charitable/education causes

Connect with Joe

joefairless.com

Email: Info@joefairless.com (Email Joe for free money raising spreadsheet tool)

Resources Mentioned

Crucial Conversations

Best Real Estate Investing Advice Ever (Volume 1)

Previous podcast episode with Joe: themichaelblank.com/session10/

Michael’s deal analyzer

Deal Maker Mastermind

 


If you’ve listened to the show before, you’ve probably heard me talk about the power of the first deal. Your first multifamily deal will be the smallest, the longest, and the hardest deal you will ever have to make. However, the power of the first deal is that the second and third, which follow in rapid succession, are almost automatic.

Jordan Madewell, my guest on this week's show, knows all about the power of the first deal. Closing on his first multifamily, a 23-unit complex, with his business partner in 2016, Jordan is on the fast-track to completing his next two deals, which he hopes will help him reach his 2017 goal of 100 units. I can’t wait to see how he gets on in the next 12 months, but in the meantime, let’s listen as Jordan talks about his drive, how he got started in real estate, and most importantly, how he nailed that all-important first deal.

Key Takeaways

[02:53] Jordan’s start in real estate investing

  • Jordan’s parents and grandparents always had rentals
  • In 2007, while still in college he bought and rented out his first single-family home

[04:05] The moment Jordan realized that he needed to be investing in multifamily

  • Released that It takes the same amount of time and effort to do a deal 10X bigger

[06:40] Jordan’s goal and his “why”

  • $5000/month passive rental income

[14:23] How Jordan built a network of investors

  • Established contacts before the deal was in place
  • Started conversations early to build investor trust

[15:20] Jordan’s first deal.

  • “lucked upon it”
  • 23 units built in 2006.

[16:30] Raising the money for the first deal

  • Syndication
  • Called network of investors
  • Raised needed funds in 72 hours

[26:47] What’s next for Jordan

  • Actively looking for more and bigger deals

[36:00] The power of the first deal

  • There is enormous power and potential in completing the first deal
  • It’s the smallest, takes the longest, and is the hardest to pull off
  • The second and third deals follow in quick succession

[45:28] Jordan’s advice for new real estate investors

  • Calculate your ‘Rat race’ number and reverse engineer it
  • Learn as much as you can, but always follow it with action
  • Find a mentor or peer group to guide and help you on your journey

Connect with Jordan

Phone: 806-570-0264

Email: Jordanmadewell@gmail.com

Web: madewell-construction.com

Resources Mentioned

The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges

richdad.com

biggerpockets.com

Old Capital Real Estate Investing Podcast

 


Five years ago Brad Tacia was just a regular guy, working a 70 hour week as an engineer to support his family. In 2011 he began to invest in real estate. After making the switch from single family to multifamily investing, Brad managed to replace his income in just 2 years.In this episode I talk to Brad about the amazing progress he has made over the last 2 years, investigating the reasoning and

In this episode I talk to Brad about the amazing progress he has made over the last 2 years, investigating the reasoning and mindset behind his life-changing actions, as well as the habits he has developed to achieve his goals. From his first multifamily deal, to the syndication of a second complex, the results of Brad’s determination and decision-making can serve to inspire anyone interested in multifamily real estate investing.

Key Takeaways

 [03:05] Brad’s backstory: from 9 - 5 to real estate.

  • Brad has worked in auto engineering all his life.
  • Layoffs in the auto industry inspired Brad to seek out a second source of income.
  • He realized he needed a ‘Plan B’.

 [04:56] The thought processes behind real estate investing.

  • Now with a family, Brad was starting to think about how to secure a financial income.
  • He moved into a new family home and began to rent his old home.
  • Gravitating towards real estate, he started researching and investing in single family.

 [07:23] Thinking about replacing income with real estate.

  • Maintain flexible and ever moving goals.
  • First goal to replace 25% of income, then 50%...
  • Recently achieved goal to replace 100% of income with real estate.

 [9:09] ‘The idea was to buy one house per year’.

  • Transitioned to the multifamily market after buying his 5th single family home.
  • Did not start with multifamily because the thought was too daunting.
  • Wishes he had started sooner.

 [11:45] Making the move to multifamily investing.

  • Brad started to educate himself, reading over a dozen books on apartment investing.
  • Started analyzing deals to get comfortable with the numbers.
  • Analysed 50 deals and gained confidence in the market.

 [14:14] Brad’s first multifamily deal.

  • 12 units.
  • Agreed on $850,000 ($71,000 per unit).
  • Raised rents to market value for an instant cash flow boost.

 [19:50   ] A change in comfort zone and a shift in goals.

  • The benefits of finding a good property manager.
  • Finding more money to invest in multifamily.

 [25:25] The ability to make deals directly impacts the scalability of the business.

  • After the first 12 units Brad set his sights on fully replacing his income.
  • He wanted to cover his family's living costs, his ‘rat race number’.

 [26:04] Brad’s motivation for doing what he does

  • At first it was to provide for his family
  • Now it’s about gaining freedom with his time

 [27:21 ] Why Brad keeps doing new deals even though he’s met his financial goals

  • Brad loves analyzing deals.
  • Wants to pursue more syndication deals.

 [35:35] Real estate investing alongside a full-time job.

  • Utilize your free time in the most effective way possible.
  • Research deals on lunch breaks, use your daily commute to make phone calls.

 [36:25] Changing your habits and finding your why.

  • Do something every day to keep your deals moving.
  • Don’t let anybody else own your time.
  • Find your drive. Brad’s is to spend more time with his family.

 [42:26] What Brad would tell his younger self.

  • 1st get expenses under control
  • Go into multifamily sooner and build the right mindset
  • Start young, start early, be serious about it.

 Connect with Brad

 Cell Phone: 248-881-4570 (call or text)

 Email:  bradtacia@gmail.com

 Resources Mentioned

 The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges


Kevin Bupp is an entrepreneur, philanthropist, and real estate expert. Since 2010 Kevin has been focussing his attention on the mobile home park market, the results of which he has happily agreed to share with me today. Throughout his entrepreneurial journey, Kevin has always returned to real estate, a market he calls ‘one of the easiest ways to create true wealth’. Now that he has made the leap to mobile home parks, his only wish is that he had done it sooner!

 Listen now to hear my chat with Kevin, including; how he dealt with the economic recession, his chance move to mobile home park investing, and most importantly his best and transferable techniques to close those important deals.  

Key Takeaways

[03:17] Kevin's real estate journey.

  • Got into real estate at 19 years old
  • Began his real estate journey with single family homes.
  • He was in the business for 5 years before he bought his first multifamily home.

[4:48] The recession and a two-year hiatus.

  • Took a couple of years away from the real estate market following the crash.
  • Worked on some different markets, including health & fitness and fashion.
  • A chance meeting got him interested in the mobile home park market.

[05:51] ‘The biggest small project I ever worked on’.

  • How he found his first mobile home park deal.
  • Various partnership structures.
  • He always has at least one business partner.

[10:07] Raising money for his first deal.

  • His credit was shot following the economic crash.
  • Former investor helped to finance his first park.
  • It was important to make his investor feel safe.

[11:47] Why Kevin decided to go back into real estate

  • He believes it is still one of the easiest ways to create true wealth.
  • Only way to get back to the lifestyle he was used to.

[14:17] Lessons learnt from the recession.

  • Single family homes are very inefficient.
  • Mobile home parks provide scalability.
  • He wishes he had started buying multifamily sooner.

[19:17] So what’s so great about mobile home parks?

  • Some unique barriers to entry.
  • They don’t build them anymore.
  • The only commercial asset class with a diminishing supply.
  • It's affordable housing, a market with a growing demand.
  • Tennent turnover rate is low because homes are expensive to move.

[22:20] Park management and scalability.

  • There are not many professional management companies for mobile home parks.
  • Kevin has his own internal management structure.
  • On-site manager who lives in the park.

[24:53] Where Kevin finds his on-site managers.

  • Look for tenants who maintain their homes, displaying ‘pride of ownership’.
  • You can also hire managers from outside, but they must live in the park.

[26:25] Finding new deals in the mobile home park market.

  • Majority of his deals are found off-market.
  • Utilizes direct mail and cold calling to target potential park sites.
  • Identifies target market first

[30:07] Techniques and tips for finding owner information.

  • Using TLO.com you can find out nearly any person’s contact information.
  • The information gained in this way is very accurate (but you have to meet TLO criteria).

[37:40] What would Kevin tell his younger self?

  • Buy multifamily homes and stay away from the single family market.

[41:25] What Kevin is most excited about right now

  • It is a unique time for the industry.
  • It’s a great time to be buying mobile home parks.

Connect With Kevin

 Kevinbupp.com

Mobilehomeparkacademy.com

 Resources Mentioned

 TLO.com

Real Estate Investing For Cash Flow Podcast

The Mobile Home Park Investing Podcast


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