Fri, 15 June 2018
Alan Schnur was away on a business trip when a plane struck his office building, killing 40 of his 44 team members. In the aftermath of 9/11, Alan spent a lot of time questioning what he wanted out of life and the experience informed his drive for continuous growth. Because you never know when another plane is coming, Alan doesn’t believe in complacency. In fact, he makes it a point to reinvent himself every few years and take on new challenges in residential and commercial real estate.
Alan is a wildly successful real estate investor based in Houston, Texas. He began his real estate career rehabbing single family homes, owning a portfolio of 120 before making the transition to apartment buildings. Alan’s go-big-or-go-home mindset translated to multifamily, and he invested in 2K units across 18 complexes—AND founded a property management company that handled 7K units across 40 properties. Now he is taking on a new challenge in commercial real estate, investing in shopping centers along with medical, office and warehouse buildings. Alan is the author of three books on real estate investing, including The Cashflow Mindset: Millionaire, Billionaire & Zillionaire Designs for Financial Freedom & a Fulfilled Life.
Today, Alan joins me to share the story of his reawakening in the aftermath of 9/11 and explain how his skill set as a commodities broker translated to real estate investing. He speaks to the single family formula that dominated the first ten years of his career and his subsequent shift to apartment buildings during a trip to Japan that may or may not have involved saké. Alan describes his apartment addiction, discussing his best and worst multifamily deals as well as his reasons for pursuing syndication. Listen in for Alan’s insight on being flexible with geography and asset classes, taking on new challenges in commercial real estate, and stepping out of your comfort zone to take ACTION!
Alan’s AHA moment
Alan’s experience with single family homes
Why Alan made the transition to multifamily
Alan’s first multifamily acquisition
Alan’s ‘addiction’ to apartments
When Alan got involved with syndication
Alan’s best multifamily deal: The Bangkok Close
Alan’s worst multifamily deal
Alan’s shift to commercial properties
Alan’s shopping center deal in Boise, ID
Alan’s outlook on asset classes
Alan’s advice for aspiring real estate investors
What Alan is excited about moving forward
Connect with Alan
Direct download: MB_116_-_Reawakening_Reinvention__Opportunities_in_Commercial_Real_Estate__With_Alan_Schnur.mp3
Category:Commercial Real Estate -- posted at: 1:16pm EDT
Fri, 15 June 2018
If you are new to the idea of raising money to invest in apartment buildings, the particulars of complying with SEC regulations may have you spooked. No one wants to inadvertently break the law and face restitution, sanctions, or worse—fines and jail time! The good news is, with an assist from an SEC attorney, it is not as difficult to comply with securities laws as you might think.
Mauricio Rauld is the founder and CEO of Premier Law Group, a boutique securities firm specializing in asset protection and SEC compliance. Mauricio has 18-plus years of experience helping multifamily investors increase and safeguard their wealth through syndications. He is a regular contributor to The Real Estate Guys Radio show and a faculty member of the Summit at Sea, a week-long conference for elite real estate entrepreneurs. In addition, Mauricio serves as legal advisor to The Real Estate Guys and asset protection advisor for The Elevation Group.
Today, Mauricio sits down with me to explain his role as a syndication lawyer. He discusses the two legal routes to SEC compliance, the idea of a ‘preexisting substantive relationship,’ and the consequences of breaking the law. Mauricio shares the difference between 506(b) and 506(c), describing the right way to use social media to connect with investors under each exemption. Listen in as Mauricio walks us through the process of working with an SEC attorney, including the general timeline and approximate cost for ensuring compliance with securities law.
Mauricio’s role as a syndication lawyer
What qualifies as a security
The two legal routes to compliance
The consequences of not following the law
Mauricio’s advice around disclosures
The benefit of using an exemption
The features of the 506(b) exemption
The features of the 506(c) exemption
The idea of a preexisting substantive relationship
How to use social media to connect with investors under 506(b)
The process of working with an SEC attorney
Mauricio’s insight around the timeline and general cost of compliance
Connect with Mauricio
Direct download: MB_115_-_Enlisting_an_SEC_Attorney_to_Protect_Yourself__Ensure_Compliance__With_Mauricio_Rauld.mp3
Category:Commercial Real Estate -- posted at: 1:05pm EDT
Wed, 13 June 2018
Every human interaction is a negotiation. Whether you are communicating with employees, investors, friends or family, the language of give-and-take is at play. And the fact of the matter is, if you don’t ask, you don’t get. So, how can we leverage the ten commandments of negotiation to get more of what we want in the realm of multifamily real estate—and life in general?
Stefan Aarnio is an award-winning real estate investor, entrepreneur and author. He was named one of the Top 10 Real Estate Influencers to Follow by Entrepreneur magazine in 2017 and inducted into the Rich Dad International Hall of Fame in 2014. Stefan is the author of four books on real estate investment and negotiation, including X: The Ten Commandments of Negotiation.
Today, Stefan joins me to share the story of how he went from poor musician to millionaire real estate investor by becoming a student of negotiation. He walks us through his ten commandments of negotiation, explaining the importance of gathering information before you make an offer as well as having clearly written goals going into a negotiation. Stefan speaks to the idea of presenting an ‘offer of greater value’ and making people work for concessions. Listen in for Stefan’s insight around emotional decision-making and the key commandment of negotiation: Get what you want and get out!
Stefan’s journey from poor musician to millionaire real estate investor
The importance of negotiation in real estate and life in general
The cultural differences around negotiation
Commandment #1: Get what you want and get out
Commandment #2: Adopt a pleasing personality
Commandment #3: Prepare diligently and collect information
Commandment #4: Know what you want and have clearly written goals
Commandment #5: Gather information before making an offer
Commandment #6: Always present an offer of greater value
Commandment #7: Do not give concessions freely
Commandment #8: Take what they WANT, but give what they NEED
Commandment #9: Obey non-linear time in the negotiation process
Commandment #10: Become a student of human nature and irrationality
How the dynamics of negotiation change when a broker is involved
Connect with Stefan
Self Made: Confessions of a Twenty Something Self Made Millionaire by Stefan Aarnio
X: The Ten Commandments of Negotiation by Stefan Aarnio
Blackbook Journal by Stefan Aarnio
Direct download: MB_114_-_The_Ten_Commandments_of_Negotation_-_With_Stefan_Aarnio.mp3
Category:Commercial Real Estate -- posted at: 2:07pm EDT
Fri, 8 June 2018
Courage isn’t about being fearless. Courage is about feeling the fear but ‘saddling up anyway.’ When Peter Conti bought his first duplex, he admits that he was shaking. But Peter knew that he had to make a change to life the life he wanted, to be free from the humiliation of a boss who reprimanded him for drinking coffee meant for ‘customers only.’ Peter was highly motivated to leave his job as a mechanic and become a multifamily real estate investor, and that deep desire for financial freedom propelled him to take action.
Peter went from auto mechanic to self-made millionaire in just over three years, using creative financing to invest in both residential and commercial real estate. He started small, buying a duplex, a couple of 4-units, and a 12- and 24-unit before working his way up to shopping centers and 300-unit complexes. He has mentored thousands of investors all over the world and supported many more through his books on multifamily and commercial real estate investing.
Today, Peter sits down with me to describe the moment he decided to take charge of his own financial destiny. He walks us through that first investment in a duplex and the meeting at Chucky E. Cheese that inspired him to invest in a mentor. Peter offers advice around mitigating risk via exit clauses and acquiring property through seller financing or the use of a master lease. Listen in to understand Peter’s unique approach to recovering from a serious motorcycle accident and what he learned in the process that applies to multifamily investing specifically—and life in general!
The turning point that propelled Peter into action
Peter’s first investment in a duplex
How Peter got over the hump to make his next investment
Peter’s advice around mitigating risk
Peter’s guidance around seller financing
Peter’s approach to getting started in commercial real estate
What Peter learned in recovering from his motorcycle accident
What’s next for Peter
Peter’s top advice for aspiring real estate investors
How Peter wants to be remembered
Connect with Peter
Making Big Money Investing in Real Estate: Without Tenants, Banks, or Rehab Projects by Peter Conti and David Finkel
Commercial Real Estate Investing for Dummies by Peter Conti and Peter Harris
Wild: From Lost to Found on the Pacific Crest Trail by Cheryl Strayed
1 Simple Strategy to Escape the 9 to 5 by Peter Conti
Direct download: MB_113-_From_Auto_Mechanic_to_Self-Made_Millionaire_Through_Multifamily__With_Peter_Conti.mp3
Category:Commercial Real Estate -- posted at: 11:41am EDT
Tue, 5 June 2018
“It’s these little things that we do every day that get us closer. I remember climbing a mountain in high school, and the guide told us, ‘Don’t look at the summit. Focus on putting one foot in front of the other, and the summit will take care of itself.’ That’s exactly how I treat business. As long as I know I’m on the right mountain—which I firmly believe is multifamily—I come in here every day and focus on putting one foot in front of the other.”
Ivan Barratt is the founder and CEO of Barratt Asset Management, a real estate investment and management company out of Indianapolis that specializes in the acquisition, redevelopment and management of multifamily apartment communities. Since forming the firm in 2010, Ivan has raised tens of millions in equity, acquired 2,700 units, and grown BAM to a best-in-class management company, boasting $100M in assets under management.
Ivan joins me to explain how he started small with a duplex and 6-unit property, financing deals with hard money loans. He discusses his gradual transition to larger deals, describing his approach to raising capital by building trust with potential investors in the business and medical communities. Ivan shares his ‘mortal sins of multifamily’ as well as the game changers that have allowed him to scale up to 2,700 units. Listen in for Ivan’s advice around doing little things every day to prepare for your career as a multifamily investor!
How Ivan got his start with a duplex
What Ivan would do differently given the opportunity
How Ivan got started with hard money loans
Ivan’s early 6-unit deal
How Ivan transitioned from hard money to raising capital
Ivan’s approach to building relationships with investors
Ivan’s ‘mortal sins’ of multifamily
Ivan’s AHA moment after the crash
The game changers that have allowed Ivan to scale
Ivan’s advice for aspiring multifamily investors
Why Ivan continues to grow and scale his business
Ivan’s perfect day on Gulf Shores
Connect with Ivan
Call (317) 762-2625
Direct download: MB_112-_Scaling_Up_from_a_Duplex_to_2700_Multifamily_Units__With_Ivan_Barratt.mp3
Category:Commercial Real Estate -- posted at: 3:56pm EDT
Thu, 31 May 2018
Before Tim Hubbard purchased and renovated his small multifamily property in Memphis, Tennessee, the long-term rents ranged from $350/month for the studios to $700/month for the two-bedroom unit. After the renovations, complete with furnishings and Airbnb-ready locks and amenities, Tim began earning revenue of $2,500/month—PER UNIT! How did he do it? What made this particular property perfect for the short-term rental market? Is the Airbnb model right for you?
Tim Hubbard began his career in the hospitality industry before making the transition to real estate. He is passionate about travel, and the Airbnb model allows Tim to visit dozens of countries around the world—while providing the opportunity for others to do the same. Tim serves as the Director of Operations for Midtown Stays, a vacation rental company with properties in both Memphis and Sacramento, California.
Tim sits down with me to explain how he got involved in the worlds of real estate and Airbnb. He describes his experience purchasing and renovating an 8-unit in Memphis for short-term rental, discussing how much he invested in the property, what it took to make the apartments Airbnb-ready, and how he financed the deal through a local bank. Listen in for Tim’s insight around managing Airbnb properties remotely and learn what factors to consider in choosing vacation rental property!
Tim’s experience with Airbnb
Tim’s background in real estate
Tim’s 8-unit property in Memphis
How Tim financed the venture
Tim’s backup plan should new regulations restrict Airbnb
The extent of the renovations on Tim’s property
How much Tim invested in the property
The revenue from rent before and after
How Tim made the units Airbnb-ready
How Tim manages the units
How Tim can market the units on multiple sites
What’s next for Tim
Tim’s insight around considerations for short-term rentals
Connect with Tim
Tim’s Before & After Photos
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building