Apartment Building Investing with Michael Blank Podcast

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


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