Financial Freedom with Real Estate Investing

Too many aspiring real estate investors never take action because they’re waiting for the right time, or they’re holding off until they know EVERYTHING about multifamily. Spoiler alert: That’s never going to happen! So, what if you simply got prepared for the next few steps and moved forward?

Mauricio Ramos is Managing Member at de Medici Group, a multifamily investment firm based in San Antonio. He specializes in acquiring underperforming assets that can be repositioned to improve the quality of life for tenants and build wealth for investors. Mauricio spent ten years as a Project Manager in the commercial construction industry before leaving to pursue real estate full-time in 2016. To date, he controls $2M in assets and has a portfolio of 234 units across Texas.

On this episode of the podcast, Mauricio joins me to discuss how his life is different now that he’s a full-time real estate investor. He describes how a desire to travel inspired him to pursue passive income and explains how he got his start in mobile homes and single-family wholesaling. Mauricio also shares the impetus behind his transition to multifamily, offering advice around raising money for syndications. Listen in for creative strategies to find off-market deals and get Mauricio’s insight on taking the first step—and THEN figuring out your next move!

Key Takeaways

How Mauricio’s life is different now

  • Time freedom (work out during day, walk dogs)
  • Travel and go to seminars like Deal Maker Live

Mauricio’s background and experience

  • Grew up in Mexico, came to US on student visa
  • 10 years as civil engineer/construction manager

What inspired Mauricio to pursue passive income

  • Quit job for 40-day backpacking trip
  • Desire for freedom to pursue travel

Mauricio’s introduction to real estate

  • Colleague introduced to single-family rentals
  • Paid cash for mobile homes, wholesaled SFH

Mauricio’s first 10-unit multifamily deal

  • Sourced through direct mail campaign in 2017
  • Sold 18 months later for 159% ROI

Why Mauricio transitioned to multifamily

  • Scalability (10 SFH vs. 10-unit)
  • Able to analyze own deals with SDA

Mauricio’s second and third multifamily deals

  • Wholesaled 8-unit for 5-figure profit
  • Wholesaled 24-unit for 2X annual W-2 income
  • Used money for mentor, passive investment

Mauricio’s transition to multifamily syndications

  • Sponsored 16- and 32-unit deals in McAllen
  • Raise money from friends, family and coworkers

Mauricio’s advice to aspiring syndicators

  • Get educated on SEC compliance
  • Provide opportunity vs. ask for money

What’s next for Mauricio

  • Expand network with seminars, partnerships
  • Goal to grow 600-unit portfolio in 2020

Mauricio’s insight on off-market opportunities

  • Lack of creativity rather than deals
  • Rach out to brokers and take first step

How to proceed without a clear plan

  • Be prepared for next 3 steps
  • Confidence in resourcefulness

Connect with Mauricio

de Medici Group

Email mauricio@demedicigroup.com

Mauricio on Instagram

Multifamily: Invest Differently on Meetup

Resources

Grant Cardone

Deal Maker Live

Rich Dad Poor Dad by Robert T. Kiyosaki

The 4-Hour Workweek by Timothy Ferriss

National Real Estate Investor Association

Driving for Dollars on the App Store

Driving for Dollars on Google Play

Syndicated Deal Analyzer

The Ultimate Guide to Buying Apartment Buildings with Private Money

Michael’s Mentorship Program

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

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

Direct download: ABI_179.mp3
Category:Commercial Real Estate -- posted at: 11:55am EST

Real estate investors are cautious when it comes to implementing a short-term rental (STR) strategy because of the regulatory uncertainty in the space and the extra expense of hotel taxes. But what if we could enjoy the benefits of an Airbnb model WITHOUT the uncertainty or the extra expense? Al Williamson leverages an extended-stay strategy targeted at business travelers to 10X his net income on a small multifamily property.

Al is a full-time real estate investor and Managing Partner of Easy Corporate Housing, an extended-stay STR housing solution for business travelers in Sacramento, California. He also serves as a speaker, author and mentor for investors through Leading Landlord, a platform designed to help landlords increase their income and equity. Al has developed creative strategies for growing NOI as much as 10X above a conventional landlord operation, and he shares those tactics in his books, Building Wealth with Inner City Rentals and 40 Ways to Increase the Net Income of Your Rental Property.

Today, Al joins me to explain how he quit his job as a civil engineer with the cashflow from an 8-unit property in an inner-city neighborhood. He describes how he went about fixing the neighborhood and discusses what inspired him to experiment with a short-term rental strategy. Al also shares how to determine your target market and walks us through the six types of extended stay customers. Listen in for insight around the benefits of offering 30-day stays and learn how to identify an ideal property for the extended-stay STR model! 

 

Key Takeaways

How Al quit his job with an 8-unit class D property

  • Reposition inner city neighborhood
  • Leverage pay-day rent schedule
  • Rent bicycles, coordinate internet

How Al got started investing in real estate

  • Started with house hack (3-unit building)
  • Maintenance costs eating up cashflow

Why Al purchased the 8-unit class D property

  • Value of 3-unit quadrupled, ‘let’s do it again’
  • Remove blight (gangs, guns and prostitution)

How Al went about fixing the neighborhood

  • Exercise leadership + create sense of community
  • Easy as calling in broken streetlights, parties
  • Offer cash for keys as necessary

What inspired Al to try a short-term rental strategy

  • Travel for work himself, hated hotels
  • Net income = 8 to 10X traditional model

How Al implemented a short-term rental strategy

  • Set aside single unit for business travelers
  • Realized benefits of one-month threshold

The best areas for an extended-stay, STR strategy

  • Near Extended Stay America, Residence Inn
  • Use Airbnb as backup plan

Al’s advice for determining your target market

  • List on Airbnb and see who comes
  • Build relationships with local businesses

The top 6 types of extended-stay customers

  1. Vacation travelers
  2. Medical
  3. Military
  4. Student housing
  5. Insurance
  6. Temporary

Why Al only needs a few units to be successful

  • Huge income per unit ($1800/month)
  • Single unit covers cost of mortgage

The ideal property for an extended-stay STR

  • Margin far above market rent
  • Furnish according to target guest

Connect with Al

Extended Stay Landlord

Leading Landlord

Al on BiggerPockets

Al on LinkedIn

Resources

Mr. Landlord

Building Wealth with Inner City Rentals: Success the Catalytic Landlord Way by Al Williamson

40 Ways to Increase the Net Income of Your Rental Property by Al Williamson

Tim Hubbard on ABI EP111

Michael’s Mentorship Program

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

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

Direct download: ABI_178.mp3
Category:general -- posted at: 11:47am EST

Advancements in technology allow us to access and analyze an incredible amount of data. But what does this mean for multifamily investors? Can we make use of tech tools to find off-market deals, for example? What if we could automate the underwriting process? How might machine learning facilitate market analysis?

Raj Tekchandani is the Founder and Managing Principal at Smart Capital Management, a real estate investment firm that focuses on the acquisition and management of value-add multifamily properties. Raj brings his significant experience in tech startups to his work as a full-time investor, leveraging data analytics, machine learning and artificial intelligence to identify strategic assets in emerging markets that provide high-yield returns.

Today, Raj joins me to explain how he got started in real estate, buying condos in Orlando to supplement his uncertain W-2 income. He discusses what inspired his transition to multifamily and shares his diverse experience as an active investor, passive investor, and capital raiser for syndication deals. Listen in for Raj’s assessment of the available tech tools for real estate and learn how he quit his job in startups to become a data-driven multifamily investor! 

Key Takeaways

What inspired Raj’s interest in real estate

  • Uncertainty of work in tech startups
  • Create second income stream

How Raj got started in real estate

  • Friend buying condos in Orlando (2012)
  • Purchased 9 of own for cashflow

Raj’s transition to multifamily

  • Reading about economies of scale
  • Decision to get more involved

Raj’s first multifamily investment

  • 15-unit in up-and-coming neighborhood nearby
  • Unexpected expenses, fired property manager

How Raj got into passive investing in multifamily

  • Continuing education in syndications
  • LP for 151-unit in Georgia

Why Raj decided to quit his job and do real estate full-time

  • Control own destiny, control own time
  • Bring passion for data analytics to real estate

What Raj is working on now

  • Partner with syndicator as capital raiser
  • ‘Full-time evangelist for multifamily’

The tech tools for real estate Raj is exploring

  • Reonomy for apartment ownership data
  • Enodo for underwriting multifamily deals
  • Building market analysis tools with Bay Area company

How Raj educates new real estate investors

  • Build trust through meetups and content
  • Walk through recent transaction
  • Serve as concierge through first deal

What Raj looks for in a multifamily operator

  • Trusted partners from mastermind network
  • Responsive to communication

Connect with Raj

Smart Capital Management

Email raj@smartcapitalmgmt.com

Data Driven Multifamily Investing Facebook Group

Resources

What’s the Best Investment: The Stock Market or Real Estate?

Syndicated Deal Analyzer

Meetup

Reonomy

Enodo

Nighthawk Equity

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

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

Direct download: ABI_177.mp3
Category:Commercial Real Estate -- posted at: 12:16pm EST

Are you settling for good enough? It’s easy to get comfortable with the way life is going and let complacency set in. But if you really want to achieve greatness, you’ve got to get comfortable being uncomfortable. Whether it’s your personal development OR your multifamily portfolio, meaningful growth happens OUTSIDE your comfort zone.

Andrew Kuhn is the founder and CEO of Kuhn Real Estate, a multifamily investment firm and property management company based in the Greater Detroit Area. He spent the last 14 years in a highly compensated medical device sales role before quitting his job just one month ago to pursue investing full-time! Andrew has been involved in real estate since 2006, building a robust single-family portfolio of 76 rentals. He transitioned to multifamily two years ago and has already closed six deals totaling 281 units. Andrew also serves as a mentor with us through the Michael Blank Investor Incubator.

Today, Andrew joins me to discuss his decision to quit a lucrative W-2 job and explain how he’s becoming a servant leader now that he’s achieved financial freedom. He describes what lights him up about mentoring new investors and shares some of his most influential teachers in the personal development and real estate space. Listen in for Andrew’s methodology around learning something new and find out what’s inspiring him to scale his multifamily portfolio to 20K units!

Key Takeaways

Andrew’s path to full-time investing

  • 13 years in SFH to grow portfolio of 76
  • Shift to multifamily 2 years ago (6 deals, 281 units)

Why Andrew struggled with the decision to quit his W-2 job

  • Highly compensated work in medical device sales
  • Need to define specific exit strategy

Andrew’s last day at his 9-to-5 job

  • Conducted training course
  • Many colleagues jealous, curious about investing

How Andrew’s life has changed since he quit his W-2

  • Working harder than ever to achieve 20K+ units
  • Involved in local organizations (servant leader)

What lights Andrew up about teaching others

  • Realize impact of prominent teachers in own life
  • Reinforce own learning + give back

Some of Andrew’s most influential mentors

How Rich Dad Poor Dad influenced Andrew

  • Light bulb moment re: passive income
  • Inspired move to Detroit for investing opportunities

Andrew’s methodology for mastering something new

  • Get educated and start networking
  • Get clear on goals, then follow up with ACTION

Andrew’s key takeaways from Deal Maker Live

  • Master online marketing to compete in space
  • Bookending day with productive habits (Hal Elrod)

What Andrew would do differently if he could go back

  • Transition to multifamily much sooner
  • Growth happens outside comfort zone

How Andrew is working to grow right now

  • Syndicating larger multifamily deals
  • Building out property management company

Andrew’s top AHA moments

  • Remove active and build passive income
  • Leave legacy of compassion, service and integrity

Connect with Andrew

Kuhn Real Estate

Email andrew.kuhn@kuhnrealestate.com

Andrew on LinkedIn

Resources

Seven Years to Seven Figures: The Fast-Track Plan to Becoming a Millionaire by Michael Masterson

Jim Rohn

Entrepreneurs’ Organization

Kyle Wilson

Zig Ziglar

Dale Carnegie

Robert Kiyosaki

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

Rich Dad’s CASHFLOW Quadrant: Guide to Financial Freedom by Robert T. Kiyosaki

Syndicated Deal Analyzer

Schon|Tepler

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

The E-Myth Real Estate Investor: Why Most Real Estate Investment Businesses Don’t Work and What to Do About It by Michael E. Gerber, Than Merrill and Paul Esajian

Books by Gino Wickman

Books by Verne Harnish

Strategic Coach

Building Wealth One House at a Time: Making it Big on Little Deals by John W. Schaub

Hal Elrod

The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod

The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod

Ed Mylett

The Second Mountain: The Quest for a Moral Life by David Brooks

The Richest Man in Babylon by George S. Clason

Michael’s Mentorship Program

Nighthawk Equity

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_176.mp3
Category:Commercial Real Estate -- posted at: 1:57pm EST

Good deals are so hard to find right now! That’s become a common complaint among real estate investors in recent months, but I’m not convinced it’s true. In fact, if you’re willing to hustle and approach brokers with a service-first mindset, it’s fairly easy to find off-market multifamily deals.

Logan Freeman is a commercial real estate agent, investor, developer and capital raiser. He is also the founder of LiveFree Investments, a Kansas City firm specializing in joint ventures and equity partnerships that provides strong returns on capital from secure investments. Logan got his start in real estate doing a live-in flip back in 2013, and since then, he has completed 80-plus transactions and earns $13M for his investors annually.

Today, Logan joins me to explain why he was dreaming about real estate—even as he was being drafted for the NFL! He discusses the niche he has developed representing buyers and building his own portfolio, describing how he builds credibility with brokers by solving problems and adding value. Listen in for Logan’s What if? approach to real estate networking and learn how he is hustling to find off-market deals for his clients—and himself!

Key Takeaways

Logan’s path to real estate

  • Drafted for NFL but didn’t make team
  • Work to earn master’s degree (265 calls/day)
  • Learn self-worth not tied to outcomes

Logan’s introduction to real estate

  • Friends’ dads as mentors, owned rentals
  • Find way ‘to make money while you sleep’

How Logan got started in real estate

  • Live-in flips while working as consultant
  • Acquisitions for boutique investment firm

What inspired Logan’s transition to multifamily

  • Spreads starting to shrink in KC market
  • Decision to work smarter, not harder

Logan’s status as the go-to guy when people need to sell

  • Need in market to match buyers with properties
  • Source off-market deals via broker relationships

How Logan gets brokers to take him seriously

  • Build trust by solving problems
  • Don’t ask for fee (earn through buyers)
  • Underwrite properties + send feedback
  • Partner as necessary for track record
  • ‘Network your tail off’

What Logan’s excited about moving forward

  1. Creative strategies to buy off-market properties
  2. Marketing tactics to build personal brand
  3. Co-GP on self-storage, mobile home parks

Connect with Logan

LiveFree Investments

LiveFree on Facebook

LiveFree on Twitter

LiveFree on Instagram

Logan on YouTube

Logan on LinkedIn

Resources

Nighthawk Equity

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

TalentSmart

StrengthsFinder

Syndicated Deal Analyzer

Berkadia

Block Real Estate Services

CBRE Kansas City

David Goggins

CCIM

Stephen Covey

Mauricio Rauld

Be in the Top 1%: A Real Estate Agent’s Guide to Getting Rich in the Investment Property Niche by Bob Helms

Michael Becker

Loom

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_175.mp3
Category:Commercial Real Estate -- posted at: 1:42pm EST

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