Financial Freedom with Real Estate Investing

If you’re early in your career as a multifamily syndicator, a qualified team is essential in overcoming your lack of experience to go after larger, more lucrative deals. But how do you attract and align your interests with those prospective team members? And once you’ve established a track record of your own, how do you stay in front of your investors and continue to scale your money raising efforts?

Joe Fairless is Managing Partner with Ashcroft Capital, a national multifamily investment firm focused on major metropolitan areas. Joe has been investing in real estate since 2008, and to date, he controls more than $400M of real estate in the Houston and DFW regions. Joe is also the host of the popular daily podcast, Best Real Estate Investing Advice Ever, and the author of several books on real estate investing, including the newly released Best Ever Apartment Syndication Book.

Today, Joe joins me to discuss his impetus for writing the Best Ever Apartment Syndication Book and explain his belief in the Law of Reciprocity. He shares several of the advanced aspects of syndication outlined in the new book, including 4 ways to align interests with team members and pursue larger deals early on—in a safe way. Listen in for Joe’s insight on multifamily as a partnership business and learn his intentional system for staying top-of-mind with investors, adding value in a variety of ways on a regular basis!

Key Takeaways

Why Joe wrote the Best Ever Apartment Syndication Book

  • Help investors understand how operations work
  • Not beginner’s guide, need fundamentals first
  • Get message out to help others (Law of Reciprocity)

Joe’s 4 ways to gain credibility through aligned interests

  1. Attract qualified team member (i.e.: property manager)
  2. Give team member equity stake of 5-30%
  3. Team members bring equity to deal
  4. Team members bring own money + investors

Joe’s insight on real estate as a partnership business

  • Maximum return on time and money
  • Align with experienced team early on
  • Leverage track record of partners
  • Larger deals in fast, safe way

Joe’s approach to staying top-of-mind with investors

  • Daily podcast/blog (audio)
  • Weekly email recap of content (visual)
  • Monthly report mailed to accredited investors
  • Quarterly happy hour, dinners (in-person)
  • Annual Best Ever Conference

Connect with Joe

Joe’s Website

Best Ever Show

Ashcroft Capital

Email info@joefairless.com

Resources

Best Ever Apartment Syndication Book by Joe Fairless and Theo Hicks

The Tim Ferriss Show

The 4-Hour Workweek: Escape the 9-5, Live Anywhere, and Join the New Rich by Timothy Ferriss

Carlos Vaz at CONTI

Best Ever Conference

Kathy Fettke at Real Wealth Network

Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank

Deal Maker LIVE

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_126-Joe_Fairless.mp3
Category:Commercial Real Estate -- posted at: 12:52pm EDT

Are you still skeptical of the idea that you can build a real estate business using other people’s money? Or, maybe you don’t think that your network has access to the kind of capital you would need for a multifamily investment. Matt Faircloth argues that you simply don’t know where to look, and he is living proof that with the right approach, you can develop a robust real estate portfolio by raising private capital.

Matt is the co-founder of The DeRosa Group, a real estate investment firm headquartered in Trenton, New Jersey. Matt and his wife, Liz, have been investing in real estate since 2004, and they have vast experience with single family, multifamily, office and retail properties. Matt’s firm has completed more than $30M in real estate transactions involving private capital, and he is the author of Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money.

Today, Matt joins me to share his journey from house hacker to full-time real estate investor. He offers insight around taking capital from friends and family, educating your network on where to find the money to invest, and aligning with a seasoned partner. Listen in to understand the three different investment opportunities Matt offers through DeRosa Group and learn his transparent, jargon-free approach to raising capital.

Key Takeaways

Matt’s introduction to real estate

  • Rich Dad Poor Dad, CASHFLOW Board Game
  • House hack to pay off student loans

Matt’s transition to full-time real estate investor

  • Reduce expenses to live below means
  • Strategic decision to delay having kids

Why it took Matt several years to find his niche

  • No solid set of attainable goals
  • Distracted by shiny objects

Matt’s shift to raising money from investors

  • Refinanced portfolio to get cash for next deal
  • ‘Carousel stopped’ after crash

Matt’s insight on taking money from friends and family

  • Offer value, confident in returns
  • Allow people care about to benefit

How to overcome a lack of track record

  • Align with seasoned partner
  • Start small, work up to bigger projects

Matt’s advice for aspiring investors looking to partner

  • Don’t solicit free advice
  • Put other person first and CONTRIBUTE

The three investment options Matt offers

  1. Single family fix and flips (short-term capital)
  2. Turnkeys (100% ownership)
  3. Multifamily syndication for passive investors

The argument for real estate investment over other asset classes

  • Leverage tax deferment through IRA for fix and flips
  • 8 to 10% yields, compound over and over
  • Tax benefits of owning via syndication or turnkey

Matt’s approach to raising capital

  • Avoid speaking in jargon, keep it simple
  • Explain how money protected
  • Discuss if, thens (worst case scenarios)

Where to find money in your own network

  • Homeowners that qualify for HELOC
  • Leverage retirement accounts

Matt’s three tiers of raising capital

  1. Local contacts
  2. Referrals, networking groups
  3. National voice as thought leader

Connect with Matt

DeRosa Group

DeRosa Group on Facebook

DeRosa Group on YouTube

Matt on Bigger Pockets

Resources

Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money by Matt Faircloth

Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank

Rich Dad Poor Dad: What the Rich Teach Their Kids About Money—That the Poor and Middle Class Do Not by Robert T. Kiyosaki

CASHFLOW Board Game

Deal Maker LIVE

Review the Podcast on iTunes

Direct download: ABI_130_v2.mp3
Category:Commercial Real Estate -- posted at: 11:54am EDT

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