Apartment Building Investing with Michael Blank Podcast

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

 


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