Financial Freedom with Real Estate Investing

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

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