Apartment Building Investing with Michael Blank Podcast

What kind of returns can a passive multifamily real estate investor expect? What if you could double your money in just five or six years? And pay little or nothing in the way of taxes?

Jan Larson spent 25 years in the high-stress world of semiconductor development, most recently working for Amazon. He had always been interested in real estate investing but did not want to deal with 3AM phone calls about clogged toilets. Five years ago, a colleague introduced him to a passive investing opportunity, and Jan was hooked. Today, he has invested in 28 multifamily deals involving 34 properties, and in January, Jan had enough passive income to quit his job.

On this episode, Jan joins me to discuss how his life has changed since he quit his job through passive investing in multifamily. He explains how living through the stock market meltdowns in 2000 and 2008 inspired him to diversify with apartment buildings, describing what he loves most about multifamily and sharing the returns passive investors can expect. Listen in for Jan’s advice on how to get started with passive investing and learn how he evaluates deals based on the sponsor and the submarket!

Key Takeaways

How Jan’s life has changed since he quit his job

  • High-pressure work in tech industry
  • Much less stress now

How Jan got started with passive investing

  • Introduced to multifamily by colleague
  • Steady deal flow snowball from there

Why Jan chose real estate over the stock market

  • Lived through meltdown of 2000 + 2008
  • Diversify to reduce exposure to market

What Jan loves about passive investing in multifamily

  • Not binary
  • ‘Set it and forget it’

What allowed Jan to invest in 28 deals in 5 years

  • Liquidated stock investments and Roth IRA
  • Rolled proceeds of sales into other deals

How refinancing a property benefits passive investors

  • % of investment returned (redeploy in new deal)
  • Cash-on-cash return of remaining = 25-30%/year

The returns a passive investor can reasonably expect

  • 8-10% cash-on-cash returns
  • Double money in 5 or 6 years

Jan’s insight around the tax benefits of multifamily

  • Depreciate faster with cost segregation
  • Haven’t paid any taxes on CoC returns

What Jan looks for in a multifamily deal

  • Trustworthy sponsor with track record
  • Submarket in particular + overall market

Jan’s advice for aspiring passive investors

  • Find Meetups to meet sponsors
  • Vet by talking to other investors

Jan’s top takeaway for potential passive investors

  • Multifamily investing gives options

Connect with Jan

Email jan.a.larson@gmail.com  


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

Nighthawk Equity

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_181.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

As multifamily investors, we’re all looking to build wealth and achieve financial freedom. The scary part is, we don’t have control over how much our money is worth. And as our government continues to print money with wild abandon and accumulate massive debt, the value of the US dollar declines. Yes, we’re smart to invest in physical assets like real estate to hedge against this kind of currency devaluation. But is there something else we could be putting our money in as an insurance policy of sorts? Something that increases in value as paper assets decline?

Dana Samuelson is the President of American Gold Exchange, a leading precious metals and rare coin company. A professional numismatist since 1980, Dana has been involved in a billion dollars’ worth of precious metals transactions. Brien Lundin serves as host of the New Orleans Investment Conference and Executive Editor of the Gold Newsletter, the oldest precious metals advisory in the world. With 40 years of experience, Brien is an expert in precious metals and mining share markets as well as the economic and geopolitical issues that impact them.

On this episode, Dana and Brien join me to explain why the average real estate investor should consider adding precious metals to their portfolio. They describe how gold serves as a counterbalance to paper assets and warn us about the accelerating devaluation of US currency. Dana and Brien also discuss the outlook for gold in the current economic climate, offering insight around the relationship between interest rates and the value of precious metals. Listen in to understand the process of buying gold and find out why it should be a part of your overall investment strategy!

Key Takeaways

Dana’s extensive background and experience

  • President of American Gold Exchange
  • 40 years in precious metals

Brien’s extensive background and experience

  • Executive editor of Gold Newsletter
  • Host of New Orleans Investment Conference

Why real estate investors should care about gold

  • Natural counterbalance to paper assets
  • Gold goes up when stocks, real estate go down
  • Global economy weakening in last 6 months
  • Took off in 2008 during crash (liquid asset)

Brien’s insight around currency devaluation

  • Central bankers print money with wild abandon
  • US $22.5T in debt, interest rates at global all-time lows
  • Forgiving debt = accelerates decline in value
  • Will need to borrow to pay interest in next few years

The outlook for gold in the current economy

  • ‘Gold loves cheaper money’
  • Bond yields plummeted in last 6 months
  • Fed forced to cut interest rates further

How interest rates impact the value of gold

  • Gold has no interest, must pay carrying cost
  • No burden to buy when interest rates low

The 3 ways to buy gold and other precious metals

  1. Paper trade via ETFs or GLD
  2. Invest in gold mining stock
  3. Physical gold dealer (sovereign minted)

When to invest in paper vs. physical gold

  • Paper good when confident in uptrend
  • Need physical as foundation (economic uncertainty)

The process of buying and selling physical gold

  • Call or visit reputable dealer to discuss
  • Pay current price + minting premium and dealer fee
  • Gold shipped and insured through FedEx or USPS
  • Store in safe, accessible place
  • Sell to any reputable dealer

Brien’s top takeaway around investing in gold

  • Precious metals are form of freedom
  • Insulate you from mismanagement of currency

Dana’s top takeaway around investing in gold

  • At least 5% to 10% of portfolio in gold or silver
  • Serves as insurance policy for rest of money

Connect with Dana

American Gold Exchange

Email info@amergold.com

Connect with Brien

Gold Newsletter

New Orleans Investment Conference


Real Estate Guys

Professional Numismatists Guild

Jim Blanchard

Investor’s Guide to Gold & Silver

Robert Kiyosaki

Peter Schiff

Michael’s Free Webinar

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_180.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT