Tue, 3 October 2017
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.
[2:41] What prompted Tom’s involvement in real estate
[5:51] When Tom identified multifamily as a ‘way out’
[7:23] Tom’s shift from single family to commercial real estate
[8:19] Why Tom wanted out of full-time medicine
[9:25] Tom’s first multifamily deal
[10:29] The difference between commercial development and multifamily
[13:31] Tom’s advice around quitting your day job
[14:34] How Tim came to work with his brother
[16:54] Why multifamily is the best choice for passive investors
[19:22] How to assess the risk profile of a multifamily deal
[20:41] The returns a passive investor can expect in multifamily
[22:22] The skill set necessary for a passive investor
[23:58] The Black’s advice around choosing a syndicator
[25:54] How to pacify the passive investor’s fear around risk
[27:06] The staggering tax benefits of multifamily
[30:10] Tom’s final tips for aspiring multifamily investors
[31:09] What the Blacks are excited about
Connect with Tim & Tom Black
Email Tim: email@example.com
Email Tom: firstname.lastname@example.org
Direct download: MB_081_-_The_Passive_Income_Investor_-_With_Tim__Tom_Black.mp3
Category:Commercial Real Estate -- posted at: 6:41pm EDT
Tue, 3 October 2017
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.
[2:36] How Mark got started with real estate
[5:13] Mark’s decision to become a full-time real estate investor
[7:16] Mark’s first syndicated multifamily deal (64 units)
[9:44] The deals that followed in rapid succession after the first
[11:30] The importance of surrounding yourself with the right people
[12:46] Michael and Mark’s partnership
[14:51] The response to Nighthawk Equity
[17:47] The process of working with Mark and Michael
[18:52] The right time to get Nighthawk involved
[20:44] The future of Nighthawk
[24:44] Mark’s pitch to passive investors re: multifamily
Connect with Mark Kenney
Direct download: MB_080__Nighthawk_Equity_You_Find_the_Deal-We_Do_The_Rest__With_Mark_Kenney.mp3
Category:general -- posted at: 6:31pm EDT