Apartment Building Investing with Michael Blank Podcast

Once upon a time, Michael Beeman was struggling. He had a blended family of seven kids, and his corporate salary of $60K was not making ends meet. Michael started a side business splitting firewood, and he was bringing in an additional $15K—but he wanted to do more than just survive. Michael wanted his family to thrive. So, he started listening to multifamily podcasts and real estate audiobooks while he was cutting and delivering firewood.

By May of 2017, Michael had saved up $12K. His best friend and his mom contributed $20K each, and with $52K, he started looking for his first deal. Today, Michael has a 64-unit portfolio, and he is about to close on a 61-unit deal. The best part? Michael recently put in his two weeks’ notice so that he can pursue real estate investing full-time.

On this episode of Apartment Building Investing, Michael sits down with me to share the details of his current 61-unit deal, discussing the value of building broker relationships for introductions to pocket listings. He explains how he began his investing career just 18 months ago and his plans to quit his corporate job at the end of the year. Michael describes how enthusiasm for multifamily investing along with creativity and perseverance helped him find his first deal and overcome the challenges he’s faced along the way. Listen in for insight on building a real estate team with the right talents and attitude and learn how Michael’s ‘never quit’ philosophy took him from splitting firewood to get by to full-time real estate investor in under two years!

Key Takeaways

Michael’s current 61-unit deal

  • Pocket listing through broker
  • $50K away from $500K raise

Michael’s real estate journey

  • Married 5 years ago (7 kids)
  • Side business splitting firewood
  • Listen to podcasts, audio books
  • Start with $52K 18 months ago

How Michael found his first deal

  • Share enthusiasm for investing
  • Friend knew of 6-unit building
  • Paid $60K (100% financing)
  • Put in another $40K

Michael’s insight on the value of creativity

  • No money to acquire 5-unit deal
  • Borrowed from family at 10% interest
  • Must be willing to take risks

Michael’s setback in hiring the wrong contractor

  • Turn large house into triplex
  • Unqualified, ask for more money
  • Wife identified competent crew member
  • Established long-term relationship

How Michael built a talented team

  • Started holding company with contractor
  • Property management company with investor
  • Look for right talents and attitude

How Michael overcame obstacles

  • ‘American Dream’
  • Just don’t quit

Michael’s take on quitting his corporate job

  • Continue to work hard but on own terms
  • Spend more time with wife and kids

Connect with Michael

Michael on LinkedIn

Michael on Facebook

Email michaelbeeman@beemanandsons.com

Call (217) 508-8185

Resources

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

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_136.mp3
Category:general -- posted at: 9:31pm EDT

So, you want to scale your multifamily business. What are your options? One strategy involves leading your own real estate investing meetup. But how do you get a significant number of people to attend that first meeting? Are there hacks to help you become popular FAST? And how do you follow up with the group when the time comes to raise money for a new opportunity?

Adam Adams is a syndicator with BlueSpruce Holdings, a multifamily real estate investment firm focused on purchasing apartment buildings in emerging markets. He repositioned his first apartment community as a property manager in 2007 and went on to purchase his first multifamily property the same year. Adam has managed a number of single-family fix and flips, and today, he holds 100-plus multifamily rental doors. He is also the host of the Creative Real Estate Podcast and the organizer of Colorado’s most active real estate meetup group.

Today, Adam joins me to discuss the recession’s impact on his multifamily career and his return to real estate in 2015. Adam walks us through his transition from single family remote fix and flips to apartment buildings, offering advice to aspiring multifamily investors around aligning with an experienced operator and ‘wearing one hat.’ Listen in for insight on the benefits of leading your own real estate meetup group and learn how Adam has leveraged meetups to raise $4.4M and become a community leader in the space!

Key Takeaways

Adam’s background in real estate

  • Dad multifamily, storage unit investor
  • Worked as property manager in college
  • Bought triplex in 2008 but hit by crash
  • Return to real estate investing in 2015

The recession’s impact on Adam

  • Less and less work for handyman company
  • Tenant-employees couldn’t pay rent
  • Deed in lieu on triplex property

Adam’s return to real estate investing

  • Live online auction (tax deeds)
  • Fix and flip remotely

Why Adam transitioned to multifamily

  • Competition at tax deed auctions
  • Single family ‘like a paycheck’

Adam’s path to multifamily

  • Bought five-plex (owner financing)
  • Two-, four- and five-plex first
  • Syndication of larger properties

The major surprises of syndication

  • Utility deposit, pre-paid insurance
  • $40-$100K in cost up front

Adam’s approach to building credibility

  • Start with smaller property (16-plex)
  • Qualify for loan on own, raise $300K

Adam’s advice for aspiring multifamily investors

  • ‘Wear one hat’ (e.g.: find deals, raise money)
  • Go in passively yourself

Why Adam created a real estate meetup

  • New to city, desire to build network
  • Lunch group to draw active investors
  • Opportunity to position as leader

How Adam has benefitted from the meetup

  • $4.4M raised through group
  • Put on map as community leader

Adam’s hacks for creating a successful meetup

  • Ask other popular group leaders to speak
  • Message active followers with invitation

The format of Adam’s meetup

  • Network and guest speaker
  • Attendees purchase lunch

Adam’s follow-up mechanism for raising money

  • Constant Contact email with new deal
  • Call those who watch webinar
  • PPM and deal package if interested

Adam’s insight on scaling your business

  • Offer more value in space
  • Podcast, meetup or share on social

Connect with Adam

Real Blue Spruce

The Creative Real Estate Podcast

Denver Apartment Network

Real Estate Lunch Club

Text MEETUP to 555 888

Resources

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

Constant Contact

Trello

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

The Michael Blank Coaching Program

The Ultimate Guide to Buying Apartment Buildings with Private Money

The Michael Blank Deal Desk

Invest with Michael

Podcast Show Notes

Direct download: ABI_135.mp3
Category:Commercial Real Estate -- posted at: 9:27pm EDT

Do you struggle to remember names at networking events? Do you rely on notes when introducing a speaker or giving a presentation? Do you invest in conferences—and promptly forget what you learned? It’s not that you have a ‘bad memory.’ You simply haven’t learned the simple techniques that would allow you to improve your recall, enhance your relationships, and ultimately grow your business!

Ron White is one of the top authorities on memory in the world. He won the USA Memory Championship in 2009 and 2010, and his YouTube Channel, Brain Athlete Ron White, is number 1 among memory experts. Ron speaks to audiences of all sizes all over the world, from Singapore to Ireland to Zimbabwe. He has appeared on Good Morning America, Martha Stewart Living Radio, and the Dr. Oz Show, among many other media outlets.

Today, Ron joins me to explain how he became the two-time National Memory Champion, memorizing a deck of cards and a 167-digit number in record time! He describes the Afghanistan Memory Wall event in which he honors the 2,300 service men and women who died in the war and offers insight around the benefits of a good memory in improving your business and your life. Listen in for Ron’s advice on improving your recall and learn his system of visualization to quickly memorize a list of words!

Key Takeaways

How Ron became the two-time National Memory Champion

  • Compete in series of 7 events
  • Memorize deck of cards in 1:27
  • 167-digit number in 5 minutes

Ron’s Afghanistan Memory Wall event

  • Honors 2,300 who died in war
  • Write out rank, name from memory
  • 10-hour process

The benefits of a good memory

  • Impacts work, relationships
  • Improve business/life
  • Give speech without notes
  • Remember what read, learn

Ron’s advice around improving your memory

  • Focus = most important
  • Nutrition and exercise

Ron’s system for memorization

  • Think in pictures (visualize)
  • Store in place to retrieve later

Connect with Ron

Ron’s Free PDF

Ron’s Website

Ron on YouTube

Resources

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

Review the Podcast on iTunes

Direct download: ABI_131_v3.mp3
Category:Commercial Real Estate -- posted at: 3:17pm EDT

When you know, you know.

Once Kyle Collins fell in love with multifamily as an asset class, he didn’t waste any time. In 9 months, he went from zero to 112 units and quit his job to pursue real estate investing full time.

Kyle is the Principal at Beechwood Holdings, a multifamily acquisition firm focused on stabilized, income-producing properties. Prior to founding Beechwood, he served as a sales rep for Martech Medical and the Director of Business Development for his family’s business, Five Rivers Conservation Group. Kyle earned a bachelor’s in finance from Georgia Southern and an MBA from Emory University.

Today, Kyle sits down with me to discuss his transition to full-time real estate investor, sharing the challenges he faced finding deals early on. He explains how to build a network of brokers and potential investors as well as what questions to ask to be taken seriously. Kyle also offers advice on leveraging an experienced property manager, raising capital and investing in your own deal. Listen in for insight around setting realistic expectations and learn how to divide your time among raising money, prospecting deals and running the operations of your portfolio!

Key Takeaways

Kyle’s background and education

  • Medical device sales
  • MBA from Emory
  • Raise capital for family business

Kyle’s transition to real estate

  • Familiar with network of potential investors
  • Experience with syndicated land transactions

The challenges Kyle faced early on

  • Finding deals, getting in front of brokers
  • Courage and trust in ability to underwrite

Kyle’s advice around building a network

  • Leverage personal network for introductions
  • Call brokers to look at deals

Kyle’s advice on being taken seriously

  • Educate self before pursuing leads
  • Build multifamily skill set (50+ deals)
  • Learn to speak the language

The questions to ask when you see a property

  • Realistic rent bump on planned renovations
  • Why rents lower than rest of market

How Kyle leveraged his property management firm

  • Brought on early in negotiations, underwriting
  • Objective opinion of realistic cost projections

Kyle’s guidance around raising capital

  • Ask potential investors to lunch, coffee
  • Explain what you’re doing but don’t push
  • Put in substantial amount of own money

The importance of being excited about a deal

  • Approach each deal with skeptical lens
  • Confident in pitch, personal investment
  • Under-promise and overdeliver

How to reconcile desire with prudence

  • Invest in own deal
  • Err on conservative side

Kyle’s first 112-unit deal

  • Broker introduced to off-market deal
  • Unnamed property, rents $150 below market
  • $3K per door on renovations
  • Already hit year-two rent assumptions

The value of a quality property manager

  • Help set realistic expectations
  • Handle renovations

What’s next for Kyle

  • Another deal by end of year (1K units by 2020)
  • Raise capital, prospect deals + run operations

Kyle’s insight on the level of effort necessary

  • Look at deals daily, practice underwriting
  • Network to meet brokers and investors
  • Put together marketing materials

Kyle’s top tips for aspiring multifamily investors

  • Need to believe in self through highs and lows
  • Do one thing each day to further your cause

Connect with Kyle

Beechwood Holdings

Email kcollins@beechwoodholdings.com

Kyle on LinkedIn

Resources

LoopNet

Syndicated Deal Analyzer

Apartments.com

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

The Michael Blank Coaching Program

Review the Podcast on iTunes

Direct download: ABI_134.mp3
Category:Commercial Real Estate -- posted at: 1:12pm EDT

If you ask people at the end of their lives to reflect on their regrets, no one ever mentions money or work. Instead, their focus tends toward the relationships they neglected. So, when Ken McElroy realized he only had one shot at having a great rapport with his kids, he got serious about designing a life of balance that allows him to grow a successful real estate business AND be fully present with his family. 

Ken has 20-plus years of experience in real estate investment analysis, property management, acquisitions and property development. Ken serves as an advisor to Robert Kiyosaki of The Rich Dad Company, and he is the author of the bestselling books The ABCs of Real Estate Investing, The ABCs of Property Management, and The Sleeping Giant. An advocate for entrepreneurs and real estate investors, Ken makes regular media appearances and speaks at top industry events all over the world. He is also the host of Entrepreneur magazine’s Real Estate Radio program.

Today, Ken joins me to share his insight around work-life balance, explaining why he takes time away to work ON the business and connect with his family. He describes how his definition of success has changed over time and how the decision to prioritize relationships translates to his business. Listen in to understand Ken’s take on limiting beliefs and learn how he approaches life with a commitment to being self-aware and fully present.

Key Takeaways

Why Ken spends 3 months in Idaho every summer

  • Think clearer, bring back new ideas
  • Time to work ON business

Ken’s insight on work-life balance

  • Up at 5am to work for 4 hours
  • Fully present with kids rest of day
  • ‘Space allows’

Ken’s transition from employment to entrepreneurship

  • Hard leap to rely on self
  • First job in property management
  • Start with one rental as side project

Ken’s goals around financial freedom

  • Initial goal to be own boss, cover expenses
  • Scale business as expenses increase

How Ken’s definition of success has changed over time

  • From ‘job’ to ‘good job I really enjoy’
  • Focus on money in 30’s (millionaire)
  • Now relationships with family, kids

Ken’s decision to focus on family and relationships

  • Sought mentor for support (Charlie Dunlap)
  • Money, work not on list of top regrets

How Ken’s shift in priorities translates to his business

  • Create better environment for employees
  • Seminars dedicated to personal growth

Why Ken sees BE as the most important aspect of Be-Do-Have

  • Work on inside, outside changes
  • Focus on people changed company

Ken’s take on limiting beliefs

  • Where come from shapes belief system
  • Value in considering other’s opinions

How to work through limiting beliefs

  • Awareness is key
  • Present as ‘observer’

What gets Ken out of bed in the morning

  • Sense of purpose
  • Desire to contribute

Ken’s view of spirituality

  • Likes ‘no rules’
  • Just about love

Connect with Ken

Ken’s Website

Resources

Win a Signed Copy of Ken’s Book

The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss by Ken McElroy

Books by Ken McElroy

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

Awareness by Anthony DeMello

The Untethered Soul: The Journey Beyond Yourself by Michael A. Singer

The Power of Now: A Guide to Spiritual Enlightenment by Eckhart Tolle

Warriors Heart

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

Review the Podcast on iTunes

Direct download: ABI_133.mp3
Category:general -- posted at: 2:04pm EDT

“When you pay somebody that’s been where you want to go, you’re buying WISDOM without the WAIT.”

If you want to succeed as a multifamily real estate investor, your best bet is to take advantage of free resources for a basic education and then find someone you know, like and trust who is willing to mentor you—even if you have to pay for their time.

Larry Goins is a veteran real estate investor with 20-plus years of experience in the space. He travels the US speaking at conventions and expos, sharing his strategies for buying a dozen properties every month—without leaving his office! Larry is also the president of both Investors Rehab and The Goins Group, and he hosts the popular real estate podcasts BRAG Radio and Brain Pick-A-Pro. Larry is committed to holding true to his moral integrity in his business and personal life.

Today, Larry sits down with me to offer advice for aspiring investors around finding a mentor and ‘accelerating the splat’ when necessary. He shares his favorite real estate strategies and explains how he has systematized his business around seller financing and lease option models. Listen in to understand what motivates Larry to continued success in real estate and learn how he pays it forward by putting people and principles BEFORE profits!

Key Takeaways

How Larry got his start in real estate

  • Always wanted own business
  • Tom Vu real estate seminar
  • Bought first house in 1986

Larry’s favorite real estate strategies

  • Seller financing
  • Lease option

How Larry has systematized his business

  • Buy house ‘fit and safe’
  • Landlord/tenant relationship
  • Lease option model

Larry’s advice for aspiring investors

  • Get education (podcasts, blogs and YouTube)
  • Find coach or mentor
  • ‘Education is not application’

Larry’s concept of accelerating the splat

  • Pleasure vs. pain motivation
  • Recognize time to move on

What motivates Larry to success in real estate

  • Dad passed in 1984, wanted to help mom
  • Be Rich and Generous

How Larry puts people and principles before profit

  • Advise against lending for bad fix and flip
  • Relationship driven (vs. transaction driven)

What gets Larry out of bed in the morning

  • Loves the chase, thrill of negotiating deals
  • Impart expertise to students

Connect with Larry

Larry’s Website

BRAG Radio Show

Brain Pick-A-Pro Podcast

Resources

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_132.mp3
Category:Commercial Real Estate -- posted at: 1:52pm EDT

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