Apartment Building Investing with Michael Blank Podcast

No question, the hospitality industry is among the hardest hit by COVID-19. And yet, Josh McCallen is thriving. The distressed Renault Winery Resort he bought in December 2018 is sold out for 2021, and revenues are up 200% from last year. So, why is Josh doing well while others are struggling? Are there opportunities for investors in the hospitality space right now? And what can we multifamily syndicators learn from Josh’s others-focused approach to business?

Josh is the hospitality investment expert behind Accountable Equity, a firm specializing in resort value-add and turnaround projects, and VIVÂMEE Hospitality, the management company that operates those assets. In the past two decades, Josh has led over $100M in luxury residential and hospitality construction projects, growing the revenue of the resorts he manages by 10X in less than six years and increasing the appraised value of those properties by 70%.

On this episode of Apartment Building Investing, Josh joins cohost Garrett Lynch and I to share his journey as an entrepreneur and discuss how helping flippers during the boom evolved into the work he does now. He explains how his company’s focus on resorts (not hotels) has helped them thrive despite the pandemic, describing how his team’s expertise in sales drives the kind of distressed assets they buy. Listen in for insight on the opportunities available to investors in the hospitality space right now and learn how a service-based, ministry model helps Josh serve both his guests and investors well.

Key Takeaways

How Josh got his start as an entrepreneur

  • Sold cotton candy to classmates in grade school
  • Paper boy at 12 (collect pay from customers)

When Josh got into real estate

  • Bought duplex with wife in late 1990’s
  • Started helping flippers in 2006

What Josh does in real estate today

  • Runs hospitality development company
  • Acquire distressed resorts for rehab + repositioning

What differentiates VIVÂMEE as a management company

  • Start with core values (dignity of every person)
  • Loyalty and recurring business model

Why Josh is doing well despite the pandemic

  • Focus on resorts (multiple revenue streams)
  • Sell experience, i.e.: wedding at winery
  • Earn revenue now for 2021 and 2022 reservations
  • Room revenue = trailing indicator

What Josh looks for in a property

  • High volume of inbound calls for weddings
  • Older/tired owner losing money, just breaking even

What makes Josh a good operator

  • Experience of taking over for management collapse
  • Treat hospitality as ministry, make guests feel loved

How Josh’s others-focused model extends to his investors

  • Treat investors as guests
  • Apply hospitality to fundraising

How Josh structures a resort deal

  • Charge asset management fee
  • Zero split until investors fully repaid + preferences
  • 50/50 split moving forward

Connect with Josh McCallen

Accountable Equity

Capital Hacking Podcast

Resources

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

VIVÂMEE Hospitality

Rich Dad Poor Dad by Robert T. Kiyosaki

Renault Winery Resort

Renault on Instagram

The Real Estate Guys

Cashflow Ninja

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_246.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

As syndicators, we’d love to work with 1031 exchange investors more often. But the rules make it really, really difficult! It means taking on co-owners (rather than passive investors) and big bucks in legal fees. What if there was an EASIER way to work with 1031 exchange investors? A way that allows them to invest passively in syndication deals, defer their taxes and earn a stable return?

Paul Moore is Managing Partner at Wellings Capital, a firm dedicated to helping high earners and high net worth individuals protect and grow their wealth through commercial real estate investing. A two-time Michigan Entrepreneur of the Year finalist, Paul has founded multiple investment and development companies and co-managed a successful multifamily development. He is the cohost of The Art of Investing and How to Lose Money and a regular contributor to both Fox Business and BiggerPockets.

On this episode of Apartment Building Investing, Paul joins cohost Drew Whitson and I to discuss the disadvantages of the 1031 exchange and explain what makes the strategy incompatible with syndications. He introduces us to the Delaware Statutory Trust (or DST), describing how it solves the problems associated with bringing in 1031 exchange investors and allows them to invest passively in multifamily deals. Listen in for Paul’s insight on what kind of investor is attracted to the DST and learn how YOU can use it to defer taxes and earn a long-term, stable return!

Key Takeaways

The disadvantages of the 1031 exchange for investors

  • Deadlines pressure to overpay/buy wrong asset
  • Difficult to find cash match, total price match
  • Requires co-ownership vs. passive investment

Why 1031 exchanges are incompatible with syndications

  • Tenancy in common agreement to keep control
  • High legal fees, syndicator doesn’t control capital

The fundamentals of the Delaware Statutory Trust

  • Management group acquires asset
  • Sells fractional shares to investors

The benefits of investing in a DST

  • Allows for passive investment
  • Match any amount of money
  • No debt in name
  • Extremely stabilized asset

The disadvantages of investing in a DST

  • Communicate with broker vs. syndicator
  • Broker gets high commission (6% to 9%)
  • Limited upside, very little appreciation

How Paul’s DST addresses the usual disadvantages

  • Invest direct = talk to syndicator
  • Don’t pay up-front commission
  • 10% to 12% projected returns

How Paul is compensated as the operator of the DST

  • Property management fees
  • Acquisition and liquidation fees
  • Scrape (keep returns above 6%)

What kind of investors are attracted to the DST

  • 1031 exchange investors
  • Capital gains, passive depreciation recapture

The limitations of the Delaware Statutory Trust

  • High legal fees for operators to set up
  • Limited upside (structured to be stable)
  • Illiquidity = can’t cash out early
  • Accredited investors only

Connect with Paul Moore

Wellings Capital

Paul on BiggerPockets

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Starker v. United States

Inland Investments

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_245.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Despite the chaos and uncertainty of 2020, we have a lot to be grateful for here at The Michael Blank organization. We have helped 113 people do 128 deals for a total value of $321M. And 22 of our mentees have quit their jobs, thanks to the financial freedom that comes with multifamily real estate investing.

On this episode of Apartment Building Investing, I take the time to reflect on 2020, looking back on our key accomplishments in The Michael Blank organization and sharing our top lessons learned over the past 12 months. I discuss our theme for 2021 and explain what steps we’re taking to better serve our followers and turn them into raving fans. Listen in for insight on the multifamily market outlook for 2021 and learn how YOU can use our resources to achieve financial freedom and help us make a positive impact in the world!

Key Takeaways

Our key accomplishments for 2020 in The Michael Blank organization

  • Right team in place, key hires in marketing and tech
  • Pivot to take Deal Maker Live virtual
  • Hit 10K subscribers on YouTube channel
  • Launch Platform Builders program
  • High-profile guests on podcast (Pat Flynn, Amy Porterfield)
  • Raise $20M for 2 deals in last 4 months
  • Full-time asset manager, director of investor relations

Our top 3 lessons learned in 2020

  1. Team is EVERYTHING
  2. Stick to your underwriting
  3. Be grateful every day for everything

Our plans for 2021 in The Michael Blank organization

The disconnect between the headlines and our market experience

  • Real estate = local business (gateway cities vs. Sun Belt)
  • Rents flat but not decreasing in our target markets
  • People move south + west with freedom of remote work

My predictions around the market outlook for 2021

  • No radical changes to real estate tax law
  • Unemployment benefits will cover rent collection issues
  • Fed will keep interest rates low and flat
  • Continued demand for affordable multifamily housing
  • Drop in value of US dollar (real estate = inflation hedge)
  • Unprecedented buying opportunities in next 12 months

How you can help us make a positive impact in the world

  • Sponsor student through UCSS nonprofit
  • $25/month covers education and healthcare

Resources

Join the Nighthawk Equity Investor Club

Get Michael’s Ultimate Guide to Apartment Investing

Learn More About Michael’s Mentoring Program

Sponsor a Student with Uganda Counseling & Support Services

Get Your Priorities Straight on Apartment Building Investing EP230

Deal Maker Live

Platform Builders

Pat Flynn on Apartment Building Investing EP210

Amy Porterfield on Apartment Building Investing EP212

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_244.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Do you have what it takes to be an entrepreneur? If you’re in the early stages of building a multifamily syndication business, Gino Wickman wants to leverage his 30 years of experience to help you determine what kind of enterprise is right for you and accelerate your path to success.

Gino is the creator of the Entrepreneurial Operating System, the practical method for helping businesses achieve greatness used by 100K companies worldwide. He is also the bestselling author of Traction: Get a Grip on Your Business and Rocket Fuel: The One Essential Combination That Will Get You More of What You Want from Your Business, among many other groundbreaking books on entrepreneurship. Today, Gino is devoting his time and energy to Entrepreneurial Leap, a new book and online platform designed to help entrepreneurs-in-the-making find clarity and create a customized roadmap for their startup.

On this episode of Apartment Building Investing, Gino joins cohost Garrett Lynch and I to share the experience that inspired his work with entrepreneurs, explaining how he defines ‘true entrepreneurship’ and what characteristics successful business owners share. He walks us through the most common mistakes entrepreneurs make, offering advice on knowing what you want, hiring the right people and firing the wrong ones. Listen in for insight on whether or not you’re a ‘partner person’ and get Gino’s eight tips for increasing your chances of success as an aspiring entrepreneur.

Key Takeaways

What inspired Gino’s work with entrepreneurs

  • Turned around struggling family business at 25
  • Discovered knack for helping entrepreneurs

What makes EOS such a successful system

  • Simple and time tested on 50 clients over 5 years
  • Frees entrepreneur to take business to next level

Why Gino wrote his new book Entrepreneurial Leap

  • Help aspiring entrepreneurs build better startup
  • Teach what he needed most at start of journey

How Gino defines true entrepreneurship

  • Build business with lots of people (vs. freelance)
  • Only 4% of population has what it takes

The 6 essential traits of a true entrepreneur

  1. Visionary
  2. Passionate
  3. Problem-solver
  4. Driven
  5. Risk-taker
  6. Responsible

The 8 critical mistakes entrepreneurs make

  1. Not having vision
  2. Hiring wrong people
  3. Not spending time with people
  4. Not knowing customer
  5. Not charging enough
  6. Not staying true to core
  7. Not knowing numbers
  8. Not crystalizing roles/responsibilities

Gino’s advice on hiring the right people

  • Hire based on core values + skill set
  • Be slow to hire, quick to fire

The 8 disciplines for increasing your chances of success

  1. Clarify vision
  2. Decide if ‘partner person’
  3. Bigger problem = more success
  4. Get feedback early and often
  5. First plan will not be final plan
  6. Work hard (really hard)
  7. Take criticism with grain of salt
  8. See it every night

Gino’s insight on the two types of ‘partner people’

  1. Equal partners
  2. Give equity but maintain controlling interest

Connect with Gino Wickman

Entrepreneurial Leap

Entrepreneurial Leap: Do You Have What It Takes to Become an Entrepreneur? by Gino Wickman

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Garrett at Nighthawk Equity

Traction: Get a Grip on Your Business by Gino Wickman

Entrepreneurial Operating System for Business

Rocket Fuel: The One Essential Combination That Will Get You More of What You Want from Your Business by Gino Wickman

Entrepreneurial Leap: Do You Have What It Takes to Become an Entrepreneur? by Gino Wickman

Entrepreneurs’ Organization

Gino’s Entrepreneur Assessment

Books by Napoleon Hill

Books by Dale Carnegie

Books by Jim Collins

Podcast Show Notes 

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: ABI_243.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What is the key to scaling a real estate investing business? Growing your investor database? Raising more and more capital for deals? Putting together and training a capable team? Yes, all of those things are absolutely necessary. And they all require that you build out systems. Systems that allow the business to run on its own.

Jorge Abreu is the Cofounder and CEO of Elevate Commercial Investment Group, a Dallas real estate firm focused on the acquisition of value-add multifamily assets. In his 15-year career, Jorge has flipped 200-plus houses, wholesaled another 100 properties and done $8M in ground-up construction. Since his introduction to multifamily four years ago, Jorge has built a portfolio of 1,700 units worth $125M.

On this episode of Apartment Building Investing, Jorge joins cohost Garrett Lynch and I to share the challenges of scaling a single family investing business and discuss what inspired his transition to apartment buildings. He weighs in on the value of networking (online and in-person) to forge new partnerships and build a solid team. Listen in for insight on building systems to grow your business and learn why Jorge recommends skipping single family and getting right into multifamily investing!

Key Takeaways

What inspired Jorge’s interest in real estate

  • Research of successful individuals
  • Entrepreneurial role models in family

The challenges of scaling a single family business

  • Difficult to find reliable contractor for flips
  • Creating systems to delegate work

How Jorge started over in Dallas after 2008

  • Network every day, go to every event
  • Build team and find partnerships

The value of finding a good partnership

  • Division of roles affords time freedom
  • One partner as visionary, one as executor

The benefits of multifamily investing

  • Build generational wealth
  • Branch out into other companies

How Jorge attracts and retains team members

  • Make sure everyone happy
  • Check in re: expectations

When to bring property management in house

  • Implement own systems (control)
  • More appropriate with scale

Why Jorge runs his own construction company

  • Helped scale single family business
  • Confident taking on any heavy lift

Jorge’s insight on raising capital for multifamily

  • Invest passively to get feel for business
  • Market to build database of investors

What Jorge does to market his syndications

  • Build platform, daily posts on social
  • Funnel with email marketing follow up

How Jorge manages his investor lists

  • Speak to new investors asap
  • Strategic messaging to match goals

What’s next for Jorge and the Elevate team

  • Explore new partnerships
  • Fine tune system for evaluating deals

What Jorge would tell his younger self

  • Build out systems early on
  • Go straight to large multifamily

Connect with Jorge Abreu

Elevate Commercial Investment Group

Email jorge@elevatecig.com

Resources

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

Garrett at Nighthawk Equity

National Real Estate Investors Association

Traction: Get a Grip on Your Business by Gino Wickman

ActiveCampaign

Deal Maker Live

The Deal Maker’s Mastermind 

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_242.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What is the best way to approach the conversation with potential multifamily investors? How do you communicate the benefits of investing in apartment buildings over other asset classes and assure them that their money is safe with you—even if you’re new to the space?

David Kamara is the Founder and Managing Director of Cape Sierra Capital, a multifamily syndication firm out of Ann Arbor, Michigan. He has 15 years of investing experience in the real estate space, getting his start with a portfolio of residential single family and duplex units before transitioning to apartment buildings and townhome communities. Today, David owns 200-plus units and serves as a mentor on the Michael Blank team.

On this episode of Apartment Building Investing, David joins cohost Drew Whitson and I to explain how he coaches his mentoring students to approach the conversation with potential investors, describing how multifamily isn’t subject to the same risks as single family rentals. He weighs in on what helps aspiring syndicators believe in their ability to succeed, exploring how knowledge helps us visualize what’s possible but action is key in making it real. Listen in for David’s insight on getting your priorities straight and learn how underwriting to cashflow makes multifamily a good investment no matter what’s going on in the world.

Key Takeaways

What David’s been up to since his last appearance

  • Find competitive deals with good return for investors
  • Develop personal cashflow formula (free eBook)
  • Share knowledge through platform, mentoring

What helps aspiring multifamily investors believe it’s possible

  • Knowledge (i.e.: understanding of loans, taxes)
  • Personality open to learning new things

How COVID changed the way David talks to investors

  • Proactive in reaching out to investors
  • Open about potential for no distributions

How COVID has impacted David’s underwriting

  • Assume minimal rent increases for next 3 years
  • Take on longer, fixed-rate debt (HUD loans)
  • Prepare investors for longer hold periods

David’s advice around market timing

  • Don’t worry about things can’t control
  • Plan for same cap rate at sale, focus on cashflow
  • Choose markets with job diversity

How David coaches his students on talking to investors

  • Explain cash-on-cash return and appreciation
  • In control of both factors with multifamily

Why David invested in the Platform Builder Incubator

  • Eventually run out of investors as business scales
  • Attract high-income earners, serve more people
  • Accelerate growth (program tailored to syndicators)

David’s plan to produce content consistently

  • Write blogs on common questions
  • Considering podcast as medium

David’s advice for aspiring multifamily syndicators

  1. You have to start (buy something)
  2. Prioritize what’s important in life
  3. Hustle to find deals

Connect with David Kamara

Cape Sierra Capital

David’s Free eBook: Personal Cashflow Formula

Resources

Learn More About Michael’s Mentoring Program 

Register for Michael’s Platform Builder Incubator

Join the Nighthawk Equity Investor Club

David Karmara on Apartment Building Investing EP182

HUD Loans

HubSpot

Michael’s Health Crisis on Apartment Building Investing EP230

LoopNet

Realtor.com

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_241.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

A lot of would-be multifamily syndicators get stuck, sometimes out of fear and sometimes because they want to plan every step of the process before they dive in. But that’s not how entrepreneurship works! In fact, the most successful real estate investors are the ones who are willing to put themselves out there and learn by doing—taking consistent, imperfect action.  

Matt Brawner is Managing Partner at Minnesota Capital Management and Northwoods Servicing, a real estate investing firm and property management company based in Coon Rapids, Minnesota. Matt and his partners have achieved considerable success turning their $5K investments into a portfolio worth more than $20M, but his greatest passion is teaching. To that end, Matt now serves as a mentor with the Michael Blank organization

On this episode of Apartment Building Investing, Matt joins cohost Drew Whitson and I to explain how he got into real estate, discussing how he formed a successful partnership with five other investors and what inspired their transition from townhomes to multifamily properties. He introduces us to the idea of setting up debt funds to raise capital and shares the pros and cons of having your own property management company. Listen in for Matt’s insight on scaling a multifamily business and learn how YOU can get unstuck and get into ACTION to become a successful real estate syndicator! 

Key Takeaways

What inspired Matt to become a mentor 

  • Career = function of faith
  • Help others achieve time freedom

How Matt got into real estate 

  • Realized no influence on stock market
  • Local opportunity to rent townhomes

What makes for a good partnership 

  • Communicate well (100% honesty)
  • Equal share of financial burden

Matt’s transition from townhomes to multifamily 

  • Local operator had deal but needed capital
  • Matt’s team had money to invest

Why Matt’s team had set up debt funds 

  • Needed capital to scale business
  • Attracts investors who want certainty

Matt’s top lessons learned in real estate investing 

  • Get into multifamily much sooner
  • All properties not created equal

The benefits of having a property management company 

  • Own more of value chain
  • Insight into local deals

Matt’s advice on property management for new investors 

  • Use third party when getting started
  • Allows to scale quicker, more efficiently

The traits of a successful multifamily syndicator 

  • Willing to learn by doing
  • Willing to wade into unknown

Matt’s insight on underwriting post-COVID 

  • Focus on forced appreciation
  • Add value to drive incremental revenue

What aspiring investors get stuck on 

  • Fear
  • Desire to plan out everything in advance

The challenges Matt faces in scaling his business 

  • Find landlord-friendly markets
  • Intentional networking to find deals

Connect with Matt Brawner

Matt on LinkedIn 

Email matt@nwsproperties.com  

Resources

Learn More About Michael’s Mentoring Program

Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate? 

Traction: Get a Grip on Your Business by Gino Wickman 

National Multifamily Housing Council 

GigaFi

Corey Peterson  

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_240.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

So, you’ve got some experience in single family rentals. And you KNOW that multifamily investing would help you achieve financial freedom on an accelerated timeline. But you just don’t BELIEVE that you can do it. What can you do to overcome that hurdle and develop the confidence to take on your first deal?

Jeremy LeMere is the Principal at Star Capital Management Group, an equity real estate investment firm based in DePere, Wisconsin. He began his investing career over a decade ago, rehabbing single family and duplex properties. Since then, he has grown his personal portfolio to include multifamily, self-storage and commercial assets. Jeremy recently quit his corporate engineering job to pursue real estate full time, and he also serves as a mentor with the Michael Blank organization.

On this episode of Apartment Building Investing, Jeremy joins me to explain how seeing his net worth drop during the Great Recession inspired his interest in real estate. He walks us through his early investments in single family homes and duplexes, discussing why he made the shift to multifamily to replace his W-2 income much faster. Listen in for Jeremy’s insight on raising capital with an online platform and learn how YOU can leverage mentorship to overcome limiting beliefs and invest in your first multifamily deal!

Key Takeaways

What inspired Jeremy’s interest in real estate

  • Committed to saving and investing as much as possible
  • Net worth cut in half, 401(k) collapsed in recession

Jeremy’s initial real estate investing strategy

  • Bought and operated duplexes in local area
  • Denied loan on third property
  • Build portfolio of SFH with BRRRR method

How Jeremy funded his investments without bank loans

  • Liquidate stocks, use 401(k) and savings
  • Work with credit union
  • Start flipping SFH and reinvesting profit

What inspired Jeremy’s shift to multifamily

  • Passed over for promotion at corporate job
  • Changed goal from replace income at 55 to 45

How Jeremy got started with multifamily

  • Join Michael Blank mentoring program
  • Develop can-be-done mindset

The timeline on Jeremy’s first multifamily deal

  • Started mentoring program in January 2018
  • Identified asset with value to unlock by March
  • Acquired few months later (at asking price)
  • Took from 82% to 98% occupancy in 3 months

The opportunities Jeremy identified in his first deal

  • Value-add and increase rents as units turn
  • Address vacancy gap (comps 100% occupancy)

Jeremy’s approach to quitting his corporate job

  • Gradually empower team to take over duties
  • Last day of work = non-event

How Jeremy’s life is different as a full-time investor

  • Free up time to enjoy lake house with family
  • Able to help others as career coach, mentor

Jeremy’s decision to add self-storage to his portfolio

  • Local opportunity for 2 sites with 300 units
  • Closed on 7/3, increase in occupancy already

How Jeremy raised money for the self-storage opportunity

  • Needed $500K (2/3 from outside investors)
  • Partner on funding side of wholesaling, flips

Why Jeremy is building a platform to raise capital

  • Weakness in self-promotion and marketing
  • Use automation to attract new investors

What Jeremy is working on right now

  • Look for next big syndication deal
  • Build out platform with content

Connect with Jeremy LeMere

Star Capital Management Group

Resources

Learn More About Michael’s Mentoring Program

Register for Michael’s Platform Builders Incubator

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

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

REIA

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_239.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

How do you land your first syndication deal without a track record in multifamily? Well, it all starts with networking. Networking with brokers. Networking with potential investors. Networking with other multifamily operators. And if you can get plugged a real estate investing community, you can leverage the knowledge and experience of investors who’ve been where you want to go and fast-track your success!

Barry Flavin is a mentor with the Michael Blank organization and Managing Partner at New Mission Capital, a multifamily investment firm out of Detroit, Michigan. He got his start in real estate eight years ago, building a portfolio of 30 single family rentals before making the shift to multifamily. Barry has a background in software sales and spent six years working as an air traffic controller before discovering real estate, and today, he owns 387 units, leveraging his expertise in investor relations to grow the business.

On this episode of Apartment Building Investing, Barry joins cohost Drew Whitson and I to explain how an air traffic controller ends up in real estate, walking us through his transition from building a portfolio of single family rentals to raising capital for large multifamily deals. He discusses the advantages of focusing his investments in a single market, describing how he found his partner, Josh, and what they do to secure consistent deal flow. Listen in for Barry’s insight on avoiding expensive mistakes with 1:1 mentoring and find out how YOU can accelerate your success through the Michael Blank community.

Key Takeaways

What inspired Barry’s interest real estate

  • Looking to supplement government pension
  • Desire to travel in retirement

Barry’s initial real estate investing strategy

  • Fix up and sell personal residences
  • BRRRR method (build SFH rental portfolio)

How Josh funded his early real estate investments

  • Start with own cash, retirement accounts
  • Borrow from private lenders and refinance properties

How Barry and Josh structure their partnership

  • Josh finds and underwrites deals + operates portfolio
  • Barry’s focus on investor relationships, raising capital

How Barry raised $2.8M for his first 144-unit deal

  • Lot of phone calls, emails, coffees and dinners
  • Scrambling after few weeks but fell into place

Barry’s advice on making a capital raise less stressful

  • Touchpoints 1, 2 and 3 while still looking for deal
  • Show potential investors sample deal package

How Barry benefits from focusing on the Detroit market

  • Knowledge of best neighborhoods to invest
  • Track record + broker relationships = deal flow

Barry’s advice for aspiring investors without a track record

  • Network with brokers and investors
  • Add value to partner (borrow their reputation)

The #1 thing new syndicators need to do to be successful

  • Deep dive into online content to learn language
  • Get plugged into community

Barry’s insight on having in-house property management

  • Can outsource in beginning, interview for best fit
  • Consider in-house team as business scales

How Barry thinks about adding to his team

  • Weakness around building funnel for new investors
  • May hire admin to streamline marketing strategy

Barry’s take on goal setting for multifamily

  • Don’t have set number of units
  • Consistently do GOOD deals (minimum of 2/year)

Barry’s advice to his younger self

  • Learn to use money as tool much sooner
  • Accelerate real estate with 1:1 coaching program

Barry’s advice for aspiring multifamily investors

  • Be coachable and follow through
  • Don’t get stuck in analysis paralysis
  • Learn from every deal (even if don’t go through)
  • Don’t listen to naysayers

Connect with Barry Flavin

New Mission Capital

Email barry@newmissioncapital.com

Barry on LinkedIn

Resources

Learn More About Michael’s Mentoring Program

Syndicated Deal Analyzer

CDC Moratorium on Evictions

Josh Sterling on Apartment Building Investing EP091

Sample Deal Package

Josh Gozlan on Apartment Building Investing EP078

Deal Maker’s Mastermind

Garrett Lynch on Apartment Building Investing EP231

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_238.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Wish you could attract an audience of engaged, eager investors like we do at Nighthawk Equity? Have you thought about building a thought leadership platform but rejected the idea because you’re not a writer or a techie? Or because you don’t like the way you look or sound on camera? Are you ready to get over those false beliefs and scale your capital raise in a matter of months?

Patricia Sweeney is the Marketing Automation Consultant behind Ideally Media Group, a firm that helps entrepreneurs and business owners implement content marketing systems to attract more of the right clients and significantly increase their revenue. With 10-plus years of experience in online marketing, Patricia has been the secret weapon behind some of the biggest names in the digital marketing space. She is also part of the Michael Blank team, working hands-on with the students in our Platform Builders program.

On this episode of Apartment Building Investing, Patricia joins me to discuss the limiting beliefs that stop syndicators from building an online thought leadership platform. She explains why you DO have time and why you CAN justify the investment, describing how our students are attracting new investors—sometimes even before the program is over! Listen in for Patricia’s insight on avoiding the biggest mistakes syndicators make in building a platform and learn how YOU can scale your capital raise through our Platform Builder Incubator.

Key Takeaways

The advantages we have around platform building in 2020

  • EASY to get message to many through social media
  • Tech never more powerful or easier to use
  • Outsource tasks to highly qualified global VAs

What limiting beliefs stop syndicators from building a platform

  1. I’m not a techie or a writer
  2. I don’t have the time
  3. I can save money by doing it myself
  4. I can’t justify the investment

Why you DO have time to build a thought leadership platform

  • Delegate/automate production and distribution
  • Don’t have to become digital marketing expert

Why you aren’t really saving money by doing it yourself

  • Time = precious resource, better spent finding deals
  • Focus on what drives business forward (raise capital)

Why you CAN justify the investment in building a platform

  • Leverage content marketing to attract more investors
  • Reinvest 20% of revenue and SCALE UP capital raise

The biggest mistakes syndicators make in building a platform

  1. Thinking you only need a website
  2. Not having a lead magnet
  3. Not communicating with your list
  4. Trying to do everything at once
  5. Striving for perfection

My advice on avoiding overwhelm in building a platform

  • Build core platform as foundation
  • Layer on one lead gen program at a time

Connect with Patricia Sweeney

Ideally Media

Resources

Register for Michael’s Live Webinar on 10/28

Register for Michael’s Platform Builder Incubator

Join the Nighthawk Equity Investor Club

Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?

What Is a Platform & Why Should You Build One? on ABI EP235

Upwork

Fiverr

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_237.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Time is precious. Are you spending your days doing what you love with the people you love? What if multifamily real estate could help you do just that? What if you could achieve financial freedom fast—regardless of your current financial situation?

Megan Lamke is Managing Partner at Megan Lamke Real Estate, a firm that helps driven women turn their grit into true financial growth. She built a network of real estate investors working for Wells Fargo Home Mortgage, and once she and her husband, Darik, had paid off their personal debt ($535K in under 5 years!), they started investing passively in multifamily syndications. Megan quit her corporate job to pursue active investing full-time in April of 2019, and today, the Lamkes have a portfolio of 1,491 units valued at $344M. 

On this episode of Apartment Building Investing, Megan joins me to explain why she took a W-2 job after college (despite wanting to become a real estate entrepreneur) and what she and Darik did to live below their means and pay off their debt so fast. She describes what she did to find a good operator as a passive investor and how she leveraged her sales and marketing background to transition to active investing. Listen in for Megan’s insight on how to raise capital at scale with a platform and learn how YOU can achieve financial freedom and spend time doing what you love!

Key Takeaways

When Megan started thinking about real estate

  • Parents struggled financially, read Rich Dad Poor Dad at age 10
  • Entrepreneurship and business clubs in high school and college

Why Megan took a W-2 job after college

  • Needed to pay off student loan debt before leave Rat Race
  • Learned sales skills, got to work with real estate investors

What Megan and her husband did to live below their means

  • Sold luxury cars, bought cars for cash
  • House hacked 6BR (rented to rugby teammates)
  • Side hustle as sales and marketing consultant

How Megan and her husband got on the same page financially

  • Financial literacy class as part of premarital counseling
  • Set goal to pay off debt, achieve financial freedom

How Megan’s strategy shifted once she was out of debt

  • Sold 6BR house to invest passively in multifamily syndications
  • Goal to replace corporate salary as quickly as possible

Megan’s advice on finding a good multifamily operator

  • Look at track record, online reviews, lawsuits and marketing efforts
  • Ask questions re: where properties located, how managed, etc.

What Megan’s last day of work was like

  • Surreal (like leaving the Matrix)
  • Culmination of goal that started in fifth grade

How Megan’s life is different now that she’s a full-time investor

  • Control own time (decide when to work)
  • Spend more time with daughter, volunteering

What active investing looks like for Megan

  • Use SDA to underwrite 10 deals/day (300 in 2019)
  • Leverage background in sales and marketing to build out platform

What Megan has done to scale her capital raise efforts

  • Done-for-you tech stack to automate lead gen, booking calls
  • 30 to 37 calls with prospective investors every week

What Megan is doing to attract prospective investors to her platform

  • Create content (social media, videos, blog and weekly webinar)
  • Sponsor real estate events, promote lead magnet on podcasts

How Megan describes her ideal investor

  • Successful career woman age 40-55, primary breadwinner
  • Gritty and knows how to get stuff done

How the automation works to turn interested prospects into investors

  • Receive automated email with free download
  • Follow up with drip marketing campaign to encourage call

How much capital Megan has raised through her online platform

  • $18M raise to close on $49M apartment building
  • In process of closing on $18M 503(c)

How raising capital looks different now that Megan has a platform

  • Don’t have to call each investor, track follow-up manually
  • One centralized management tool that automatically follows up

Connect with Megan Lamke

Megan Lamke Real Estate

Megan’s No-Nonsense Women’s Guide to Investing

Megan on Facebook

Megan on Instagram

Megan on LinkedIn

Resources

Register for Michael’s Platform Builder Incubator

Join the Nighthawk Equity Investor Club

Rich Dad Poor Dad by Robert T. Kiyosaki

Business Professionals of America

DECA

Dave Ramsey

Robert Kiyosaki

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

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

Michael’s Syndicated Deal Analyzer

Trello

Investor Deal Room

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_236.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What is the secret to growing a multimillion-dollar multifamily syndication business? The strategy that has worked for my team, allowing us to raise MILLIONS in just a few days, starts with building an online thought leadership platform.

On this episode of Apartment Building Investing, I’m walking you through the three pillars of platform building for multifamily syndicators. I explain WHO should consider building a platform and WHY it’s so valuable, describing how it helps us find more investors, do more deals and scale the business.

I discuss how to attract your ideal investor and then serve them with valuable content, ultimately turning your audience into raving fans who want to invest with you. Listen in for insight on reinvesting a portion of your revenue to grow a multimillion-dollar syndication business and learn how a thought leadership platform can help you 10X your capital raise in just 18 to 24 months!

Key Takeaways

Who should consider building a platform to raise money for syndications

  • You’ve raised at least $500K but need more investors
  • You’re looking to 10X your capital raise capacity
  • You want to raise millions quickly and effortlessly

What a platform allows you to do as a multifamily syndicator

  • Automatically attract ideal investors
  • Do more deals, create more revenue
  • Reinvest in platform to attract more investors
  • Educate audience on real estate syndications

The 3 pillars of platform building for multifamily syndicators

  1. Attract right audience
  2. Develop raving fans
  3. Scale your business

Pillar #1: Attracting the Right Audience

  • Identify ideal client avatar (investor)
  • Capture leads with free lead magnet

Pillar #2: Developing Raving Fans

  • SERVE with content + LEAD to action
  • Promote message to grow email list

Pillar #3: Scaling Your Business

  • Make compelling offer that generates revenue
  • Reinvest portion of revenue (continue growth)

The ROI on building a platform to raise money for syndications

  • For every 32 leads, one ends up investing $70K
  • Each new investor generates $2,100 in acquisition fees
  • Reinvesting 25% will 10X capital raise in 18-24 months

Resources

Register for Michael’s Platform Builder Incubator

Join the Nighthawk Equity Investor Club

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_235.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Yes, an education in business or finance is a good foundation for a real estate investor. But spending time with an experienced syndicator and watching a deal happen firsthand is more valuable than any degree. So, how do you find a mentor and convince them you’re worth their time?

Josh Gorokhovsky is the Managing Principal at Telos Properties, a real estate investing firm that focuses on 2- to 4-unit new construction, build-to-rent projects in Los Angeles. After graduating from USC in 2015, he interned for LA Properties under company principal Scott Rosenfeld. Since founding Telos in 2017, Josh has placed more than $7M in equity for investors and managed $20M worth of real estate transactions.

On this episode of Apartment Building Investing, Josh joins cohost Drew Whitson and I to explain how he broke into real estate at the age of 21, describing the persistence it took to get an informal internship with his mentor. He gets real about the 900 hours he dedicated to finding his first deal and why he niched down to the new construction, build-to-rent model. Listen in to understand what gave Josh the confidence to go solo at 23 and get his advice on working for free early on to build the network and experience you need to succeed!

Key Takeaways

How Josh got into real estate

  • Inspired by Kiyosaki’s Rich Dad Poor Dad
  • Introduced to mentor by family friend

Josh’s initial strategy for breaking into the industry

  • Find someone doing what he wanted to do
  • Put in time to understand fundamentals

How Josh’s sales background prepared him for real estate

  • Learn to deal with rejection, build backbone
  • Build routines and systems to follow up

How Josh got in the door with his mentor

  • Persistence (call regularly to ask for internship)
  • Dedication to finding deal after 9-to-5

Josh’s transition from tech sales to real estate

  • Spent year working for hard money lender
  • Cushion of income while learning real estate

What gave Josh the confidence to go solo

  • Moved back in with parents
  • Mentor willing to teach

Josh’s first deal

  • Lead from mailer dropped in neighborhood
  • Piece of equity in single family rehab project

Josh’s first solo deal

  • Ground-up duplex development (less risky)
  • Family friend was first private investor

How Josh has scaled up his business

  • Use leverage of previous project to go to next
  • Continue cold calling, reaching out to agents

What Josh is working on today

  • 8 development projects in the works
  • 6 units under management

How Josh navigated the times when he was down on himself

  • Positive self-talk, innate belief in self
  • Encouragement of mentor

Josh’s advice for aspiring real estate investors

  • Get ‘master’s degree’ with mentor
  • Get taste of everything, then determine niche
  • Provide value to everyone you work with

Connect with Josh Gorokhovsky

Telos Properties

Telos on Facebook

Telos on Instagram

Josh on Instagram

Josh on LinkedIn

Email josh@telosproperties.com

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Rich Dad Poor Dad by Robert T. Kiyosaki

Gary Vaynerchuk

David Goggins

Cutco Sales Training

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_234.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Trading time for money has a ceiling. There are only so many hours in the day, and eventually, we run out. And those of us who work 80 hours a week (or more!) to make ends meet simply can’t be a good partner or parent. So, what can we do to get out of this broken system and achieve financial freedom?

Dave Seymour is the Cofounder and CEO of Freedom Venture Management, a results-driven investing firm that focuses on multifamily and commercial real estate. After 16 years as a Boston firefighter and paramedic, Dave discovered real estate and quickly became one of the nation’s top investors. His passion for the business and propensity to tell it like it is landed Dave his own real estate reality series on A&E, and he has also appeared on CBS, ABC and CNBC, among many other national media outlets.

On this episode of Apartment Building Investing, Dave joins me to explain how he went from working 120 hours a week as a firefighter and paramedic to starring in Flipping Boston on A&E. He describes how real estate saved his financial life and weighs in on what multifamily assets his team is buying now to generate cashflow right away. Listen in for Dave’s insight on building a platform by being yourself and learn to replace fear with faith and say YES to the opportunities that come your way!

Key Takeaways

How Dave got his own show on A&E

  • Separate self from pack
  • Amplify what’s special about you

What Dave was doing before real estate

  • 16 years as firefighter + paramedic
  • Spending money didn’t have

What inspired Dave to pursue financial freedom

  • Working 120 hours/week
  • Couldn’t be good husband or dad

How Dave got into real estate

  • Heard about seminar on radio
  • Invested $27K in classes

What Dave is good at

  • Knowing what real emergency is
  • Assess landscape + execute

How Dave makes up for his weaknesses

  • Recognize what’s not core competency
  • Hire exceptional fund managers

How Dave built a platform for raising money

  • Authenticity (no BS)
  • Search for other’s needs and serve

Dave’s biggest challenges right now

  • Getting qualified funds
  • Marketing to right audience
  • Meet-and-greets during COVID

What assets Dave’s team is buying

  • Multifamily on Florida Gulf Coast
  • Focus on 40- to 140-unit properties

What’s next for Dave and Freedom Venture

  • Build infrastructure for $250M Fund 2
  • Direct lending to other investors

Dave’s definition of success

  • Physical, mental and spiritual wellbeing
  • Family and faith (to replace fear)

Connect with Dave Seymour

Freedom Venture Investments

Freedom Venture on Facebook

Dave on Twitter

Dave on Instagram

Dave on LinkedIn

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Flipping Boston

Three Feet from Gold: Turn Your Obstacles into Opportunities by Sharon L. Lechter and Greg S. Reid

Daymond John

Tony Robbins

Tunnel to Towers Foundation

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

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

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_233.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

The F.I.R.E. movement challenges us to achieve financial independence and retire early by saving and investing aggressively. And by aggressively, I mean anywhere between 50% and 70% of your income. Rajneesh Jha was following the F.I.R.E. method, putting his money in Wall Street investments—until he realized he could fast-track his timeline with multifamily real estate!

Raj spent 20 years working as an engineer for Fortune 500 companies. An avid student of the stock market and personal finance, he started investing in safe, low-cost mutual funds with the goal of achieving financial freedom in about 10 years. Then he discovered real estate and shifted his strategy, building a portfolio of small multifamily properties. Earlier this year, he quit his 9-to-5 to build Big League Capital, a multifamily syndication firm that helps other investors turbocharge their journey with real estate.

On this episode of Apartment Building Investing, Raj joins me to explain how shifting from F.I.R.E. to multifamily accelerated his journey to financial freedom. He offers his take on the stock market as an investment class, describing how the returns pale in comparison to real estate. Listen in for insight around transitioning from landlording to syndication and find out how Raj’s life has changed since he quit his corporate job!

Key Takeaways

How Raj’s journey to financial freedom began

  • Stumbled on F.I.R.E. movement 7 years ago
  • Invest in low-cost, diversified mutual funds

What the F.I.R.E. method teaches

  • Save substantial amount of income (up to 70%)
  • Save more, arrive at financial nirvana faster

How Raj was able to save a lot of money with F.I.R.E.

  • No drastic changes to lifestyle
  • More conscious + intentional about spending

What Raj was trying to accomplish through F.I.R.E.

  • Protect family from vagaries of corporate life
  • Get to place where work becomes optional

Raj’s take on the stock market as an investment class

  • Can get burned if chase trends
  • Prosper with disciplined, consistent strategy
  • Pales in comparison to returns on real estate

How Raj discovered the world of real estate investing

  • Came across BRRRR method with Paula Pant
  • Learned about scale from Matt Faircloth

How Raj differs from the average stock market investor

  • Passionate about personal finance
  • Extensive reading and education

Raj’s first real estate investment

  • Bought triplex in Summer of 2017
  • Made fair share of mistakes but believed in vision

How Raj’s long-term plan shifted once he found real estate

  • 4% safe withdrawal rate vs. 12% cash-on-cash return
  • Accelerate journey by 3X with multifamily investing

How Raj’s life is different after quitting his job

  • Time to relax and plan next chapter
  • Work on my schedule, do things that matter to me

What’s next for Raj and his investing partners

  • Looking for 60- to 120-unit value-add property
  • Psyched to go from landlording to syndication

What Raj would do differently if he could go back

  • Start sooner and be bolder
  • See mistakes as rite of passage

Raj’s advice for achieving financial freedom

  • Get clear on what you really want
  • Skip stock market, go right into multifamily
  • Have faith and take prudent risks
  • Don’t let lack of funds/experience hold you back
  • Spend time on real estate education

Connect with Rajneesh Jha

The Big League Capital

Email raj@bigleague-capital.com

Call (267) 551-0529

Resources

Learn More About Michael’s Mentoring Program

Access Michael’s Ultimate Guide to Buying Apartment Buildings with Private Money

Join the Nighthawk Equity Investor Club

Register for Michael’s Free Master Class: How to Do Your First Apartment Deal

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

Financial Independence Retire Early Movement

BRRRR Method

Jim Rohn

Paula Pant

Matt Faircloth

Robert Kiyosaki

Brandon Turner on BiggerPockets

BiggerPockets on YouTube

Think and Grow Rich by Napoleon Hill

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

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_232_v2.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

2020 has been a tough year for finding deals—even for us. In fact, the Nighthawk Equity team is currently in the process of closing on our first and only deal of the year (so far). But that’s not for lack of trying! So, what are we looking for in a deal right now? How have we changed our underwriting criteria in the age of COVID? And how do we recover from the disappointment of losing a deal?

Garrett Lynch is the Director of Acquisitions at Nighthawk Equity, the investing arm of the Michael Blank organization. Garrett has been in the multifamily space since 2011, cofounding a firm that grew from zero to 3,400 units before successfully exiting that venture. Since taking on his role with us at Nighthawk in 2018, Garrett has built a portfolio that includes at 218-unit property in Little Rock, Arkansas a 276-unit in Huntsville, Alabama, and a 130-unit deal in Atlanta, Georgia.

On this episode of Apartment Building Investing, Garrett joins me to explain how his strategy for finding multifamily deals has evolved over the years and what we look for in a deal at Nighthawk Equity. He describes what he does to build rapport with brokers and stay in touch, sharing how strong broker relationships helped us land our current deal in Atlanta. Listen in for Garrett’s insight on recovering from the disappointment of losing a deal and learn how to adjust your underwriting to find good multifamily deals in the COVID era.

Key Takeaways

How Garrett’s strategy for finding deals has evolved over the years

  • Look for best price per door in D class neighborhoods early on
  • More granular on underwriting today, focus on B and C class

How we dialed in our criteria for deals at Nighthawk Equity

  • Look at capacity on equity raise and debt structure
  • Gradual progression on size of deals
  • Choose value-add properties in certain markets

The benefits of collocating deals in just a few markets

  • Share resources (e.g.: staff)
  • Hit several properties in one trip

How we select markets at Nighthawk Equity

  • Resources available to operate and steady dealflow
  • Population, job and overall economic growth

How Garrett builds rapport with brokers

  • Stand out by responding whether like deal or not
  • Meet in person and check in regularly, share successes

How Garrett recovers from the disappointment of losing a deal

  • Channel hurt into next quest
  • Commit to process

How we landed our current deal in Atlanta

  • Follow up with broker re: deal another investor won
  • Unobstructed shot when that deal fell apart

Garrett’s system for staying in touch with brokers

  • Put regular check-ins on calendar (target markets of interest)
  • Come with thoughtful questions re: specific deals
  • Reach out when land deal in their market to build demand

How we have adjusted our underwriting at Nighthawk in the COVID era

  • Tailor underwriting around few available debt products
  • Set natural market appreciation at ZERO for Year 1
  • Create cushion of 0.5% on reversionary cap rate
  • Cash reserves minimum of 10% of total spent on deal
  • Research tenant demographic to ensure cashflow from Day 1

Connect with Garrett Lynch

Garrett at Nighthawk Equity

Resources

Learn More About Michael’s Mentoring Program

Submit a Deal to the Michael Blank Deal Desk

Access Michael’s Syndicated Deal Analyzer

Join the Nighthawk Equity Investor Club

LoopNet

CREXi

National Multi Housing Council

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

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_231.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

If you knew you only had six months to live, what would you do differently? Who would you spend time with? Who would you reconcile with? How would you spend your days?

On this episode of Apartment Building Investing, I’m describing the health crisis that landed me in the ER at the end of July. I explain how the experience forced me to rethink my priorities and reaffirmed my mission to help people to achieve financial freedom through multifamily investing!

Listen in for insight on how to get clarity in your life and take on the challenge to get your affairs in order and start living your best life NOW.

Key Takeaways

My recent experience with a health crisis

  • Heart attack on July 28, 2020
  • 100% blockage in main artery

How the health emergency forced me to rethink my priorities

  • Value health and family above all else
  • Affirmed mission (financial freedom with multifamily)

My advice on getting your affairs in order NOW

  • Set up revocable trust and life insurance
  • Structure entities so controlled by trust
  • Document where to find important info

Two powerful exercises for getting clarity in your life

  • 6 months to live
  • Perfect Day

Resources

Deal Maker Live

Dave Ramsey

Michael’s First Deal Maker Award Recipients

Michael’s Financial Freedom Hall of Fame

Garrett Sutton

Brandon Turner

The Miracle Morning: The 6 Habits That Will Transform Your Life Before 8AM by Hal Elrod

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_230.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

We’re told that our goals have to be time-bound. That we have to give ourselves a deadline if we want to achieve. The problem with that is too many of us quit three feet from gold, as the saying goes. But how do you stay committed when a year has gone by and you still don’t have your first multifamily deal?

David Acosta was a mentoring student in The Michael Blank Investor Incubator. With no money and no background in investing, David leveraged his mentor, Drew Kniffin, and our Deal Maker’s Mastermind investor network to partner on his first venture, a 220-unit deal orchestrated by Ben Risser’s team. Six months later, David closed on a 48-unit deal in Lexington, KY, this time serving as lead syndicator!

On this episode of Apartment Building Investing, David joins me to discuss how he did his first multifamily deal—without any money or previous real estate experience. He explains how having a mentor helped him build confidence and stay committed when his first deal took a few months longer than expected. Listen in for David’s insight on partnering with others to earn credibility and learn why it’s crucial to commit to the outcome you want, not the timeline.

Key Takeaways

What prompted David’s interest in multifamily investing

  • Background in restaurants, wanted to control time
  • Real estate investing research led to TMB course

What made David think he could skip SFH investing

  • Mentor to look over shoulder through process
  • Took course to get educated + build confidence

Why David felt having a mentor was the right choice for him

  • No background in real estate (shorten timeline)
  • Invest in education to be taken seriously

David’s frustration with missing his 12-month goal

  • Deflating to fall short, temptation to walk away
  • Mentor encouraged to commit to goal vs. timeline

How David finally found his first deal

  • Connect with others in Deal Maker Mastermind
  • Partner as GP with another investor’s team

How the Law of the First Deal worked for David

  • Competitive advantage in closing second deal
  • Had confidence to serve as lead syndicator

What’s next for David as a real estate investor

  • Build out team, efficiencies in processes
  • Scale and grow business from there

David’s advice for aspiring multifamily investors

  1. Develop persistence to commit to outcome
  2. Get educated and consider hiring mentor
  3. Join an ecosystem, JV to build track record

Connect with David Acosta

Acosta Capital

David on LinkedIn

David on Instagram

Resources

Purchase the Replay of Deal Maker Live

Learn More About Michael’s Mentoring Program

Check Out Michael’s First Deal Maker Profiles

Explore Michael’s Products & Programs

Connect with Other Investors in the Deal Maker’s Mastermind

Ed Hermsen on Apartment Building Investing EP225

Drew Kniffin at Nighthawk Equity

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

Ben Risser on Apartment Building Investing EP102

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_229.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Despite the disruption of COVID-19, multifamily investors are still doing deals. The question is, HOW? What’s working right now to get deals done? What isn’t? What are real people doing to find success in today’s market environment?

On this episode of Apartment Building Investing, I’m handing the mic over to Drew Whitson to moderate a discussion with our mentoring team, Todd Dexheimer, Brad Tacia, Phil Capron and Matt Brawner, on what’s working now to get deals done. We explain how our mentoring students are leveraging the COVID pause to build relationships and how the balance of power has shifted among syndicator, buyer and broker in recent months.

We go on to explore the benefit of a strong relationship with your property manager and how underwriting has changed in light of the pandemic. Listen in for insight into what makes multifamily the strongest asset class in real estate and learn the ONE thing our most successful students are doing right now to get deals done.

Key Takeaways

What Matt’s most successful students have done in 2020

  • Leverage pause in market (Seinfeld time)
  • Use time to build relationships with brokers

What Phil’s students are doing to acquire multifamily properties

  • Worry about ‘making it to next meal’
  • Figure out how to become viable buyer

Todd’s advice on how to talk to investors right now

  • Continue to educate and keep investors informed
  • Overcommunicate to build relationships

How Brad is coaching his students around underwriting

  • Network with mortgage broker re: what’s changed
  • Modify SDAs to ensure accurate underwriting

How running a property management firm informs Matt’s underwriting

  • Understanding of street rent and how units operate over time
  • Haven’t cut back on rents but less aggressive with rent bumps

How underwriting has changed in light of the COVID pandemic

  • Build in more time for rent growth
  • Consider changes in rental laws by market

What makes multifamily the strongest asset class in real estate

  • Performs well through economic disruption
  • Lockdown led to desire for nicer apartment

The one thing our most successful students are doing right now

  • Willing to make mistakes by doing
  • Get out there and build relationships
  • Analyze deals (still numbers game)
  • Willing to partner to gain experience
  • Take consistent action every day

Connect with Drew, Todd, Brad, Phil & Matt

Drew Whitson

Todd Dexheimer

Brad Tacia

Phil Capron

Matt Brawner

Resources

Learn More About Michael’s Mentoring Program

Purchase the Replay of Deal Maker Live

Pillars of Wealth Creation Podcast

Garrett Lynch

CoStar

Rentometer

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

Direct download: ABI_228.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Our world is in upheaval. Between COVID-19 and the current riots, nothing feels normal. And this has a lot of investors asking, is now the right time to pursue multifamily?

On this episode of Apartment Building Investing, I’m sharing my keynote address from Deal Maker Live 2020 on the current state of multifamily. I describe how multifamily is weathering the storm, explaining why it’s actually EASIER to raise money right now and why now IS the right time to invest in apartment buildings.

Listen in for insight around how to adjust your underwriting in the current economic environment and get my advice on what you SHOULD be doing right now to achieve financial freedom!

Key Takeaways

How multifamily is performing right now

  • Similar to 2008, deep quiet under storm
  • Collections surprisingly consistent

Why it’s easier to raise money in the current economic environment

  • Investors frustrated with volatility of stock market
  • Opening to discuss multifamily as alternative

When it’s the best time to invest in multifamily

  • Never going to be perfect time
  • Start working toward financial freedom NOW

How investors should adjust their tactics right now

  • Be smart about underwriting (↑ reserves, ↓ rent growth)
  • Avoid hard deposit, incorporate financing contingencies

What multifamily investors SHOULD be doing right now

  • Stay calm and stay the course
  • Remember your WHY
  • Keep momentum going

Resources

Purchase the Replay of Deal Maker Live

Learn More About Michael’s Mentoring Program

Join Michael’s Deal Maker’s Mastermind

Join the Nighthawk Equity Investor Club

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_227.mp3
Category:Commercial Real Estate -- posted at: 5:09pm EDT

The black swan event financial pundits predicted has arrived in the form of the Coronavirus pandemic. But how, exactly, will the crisis play out in the markets? What does it mean for us as real estate investors? And what can we do to understand the changing reality, protect our wealth, and even capitalize on hidden opportunities?

Russell Gray is the cohost of The Real Estate Guys Radio Show, a podcast and platform dedicated to helping investors stay focused, motivated and informed. A financial strategist with 30-plus years of experience in business, investing, mortgage lending and financial services, Russell provides unique and practical insights that support entrepreneurial investors in growing and protecting their wealth through real estate and real asset investing. He is also the coauthor of Equity Happens: Building Lifelong Wealth with Real Estate.

On this episode of Apartment Building Investing, Russell joins me to share his take on the bigger story behind the pandemic, explaining how the government bailout will impact the value of the US dollar and its status as the world’s reserve currency. He walks us through the real estate strategies he likes right now, describing the benefit of investments that qualify as both REAL and ESSENTIAL. Listen in for Russel’s insight on protecting your wealth in a crisis and learn what YOU can do to adapt to the circumstances and thrive through a challenging time!

Key Takeaways

Russell’s take on the biggest story behind the Coronavirus

  • Debt crisis on horizon (more vulnerable now than 2008)
  • Potential for currency crisis as Fed continues to print $

Russell’s insight around the indicators that the dollar is weak

  • Dollar exhibits weakness against other currencies
  • All currencies exhibit weakness against precious metals

The consequences of the government’s Coronavirus bailout

  • High risk of inflation
  • Devaluation of dollar

How to protect your wealth from inflation, deflation and stagflation

  • Store in alternate form of liquidity like gold to preserve value
  • Invest in real assets (i.e.: real estate in resilient market)

Why now is a good time to be a real estate investor

  • Printing money favors debtor
  • Real estate = ultimate vehicle to short dollar

The right and wrong way to measure your net worth

  • Assets – liability = wrong way
  • Liquidity + positive cashflow = right way

What real estate strategies Russel likes right now

  • Things that are REAL and ESSENTIAL
  • Residential, energy, healthcare and distribution

Russell’s advice for investors taking a wait-and-see approach

  • Don’t wait for someone else to find best deals before you
  • Look for real estate (real asset) in resilient markets

Connect with Russell Gray

The Real Estate Guys

Email crisis@realestateguysradio.com for the Crisis Investing Webinar

Email silverseries@realestateguysradio.com for the Silver Series

Email preciousequity@realestateguysradio.com for the Precious Equity Tutorial

Resources

Purchase the Replay of Deal Maker Live

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Peter Schiff

Robert Kiyosaki

Reuters Article on the Dollar Index

Ken McElroy

Equity Happens: Building Lifelong Wealth with Real Estate by Robert Helms and Russell Gray

FRED Index on the Purchasing Power of the Consumer Dollar

Jim Rohn

Chris Martenson at Peak Prosperity

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_226.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

According to the Law of the First Deal, a multifamily investor who buys their first apartment building will do their second and third deals in rapid succession, achieving financial freedom in just a year or two. But there is an exception to every rule, and Ed Hermsen is the ONE investor I know who did his first deal—and then life got in the way. So, what can he teach us about keeping momentum and staying committed to our multifamily goals?

Ed grew a portfolio of single-family rentals while working as a mortgage loan officer in Fort Collins, Colorado. Five years ago, he started studying multifamily and eventually partnered with a close friend on a 22-unit deal in Pensacola, Florida. After revisiting his goal to retire by 50, Ed realized he needed to recommit to multifamily, and in the last two years, he has leveraged the partnership model to build a portfolio of 210 units and quit his job with real estate!

On this episode of Apartment Building Investing, Ed joins me to describe how a 9-to-5 in mortgage banking inspired his real estate investing career and share his secrets to successful multifamily investing with partners. He discusses what made him the sole exception to the Law of the First Deal, explaining why there’s a four-year gap between his first and second deal and what finally inspired him to get back in the game. Listen in for Ed’s insight on the value of accountability and learn what YOU can do to stay committed to your multifamily goals.

Key Takeaways

How Ed got into real estate

  • Work in mortgage banking exposed to wealth-building potential
  • Bought SFH rental every year to build portfolio of 10

What inspired Ed to pursue financial freedom with multifamily

  • Never off clock, have to take calls (even on vacation)
  • Rely on real estate agents + economy for livelihood

Ed’s first multifamily deal

  • Friend found 22-unit in Pensacola, FL in 2015
  • Bought for $740K, valued at $1.5M now
  • No distributions first year (units in bad shape)
  • Challenge to manage vendors from afar

Ed’s second multifamily deal

  • Purchased 88-unit in Wyoming with 3 partners
  • Lead from attorney handling family dispute
  • Great loan from local bank, refinancing now

How Ed found his partners

  • Kids go to school together
  • Clients from mortgage business

Ed’s insight on building successful partnerships

  • Accountability and clear division of labor
  • Invest in attorney to do operating agreement

What made Ed the exception to the Law of the First Deal

  • Went back to buying fourplexes
  • Fell back into 9-to-5 routine

Ed’s advice around staying committed to your multifamily goals

  • Write down goals and revisit every morning
  • Build in accountability with mentor or coach

Ed’s latest multifamily deal

  • Bought 100-unit deal in Tulsa, OK with 2 partners
  • Establish relationships with local bank and realtor
  • Must follow housing authority rules

What’s next for Ed

  • Put 22-unit on market
  • Look for deals in Oklahoma
  • Learn more about syndications

Ed’s advice for aspiring multifamily investors

  • Build good team
  • Get educated on markets
  • Get first deal done

Connect with Ed Hermsen

Email edhermsen14114@gmail.com

Resources

Purchase the Replay of Deal Maker Live

Learn More About Michael’s Mentoring Program

Fellowship of Christian Athletes

Hal Elrod

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

The Ultimate Guide to Buying Apartment Buildings with Private Money

Syndicated Deal Analyzer

BiggerPockets

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

LoopNet

CREXi

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_225.mp3
Category:general -- posted at: 1:00am EDT

Investing in the financial markets is stressful, especially in a crisis. And even if you happen to be brilliant at options trading, $100K in the equity market will still only buy $100K in assets. On the other hand, investing $100K in multifamily will buy you a $500K asset—and earn you five times the return. Not to mention the fact that it’s essentially recession-proof!

Bruce Fraser is the Managing Partner at Elkhorn Capital Partners, a private equity firm that focuses on multifamily residential real estate in economically insulated submarkets. Prior to Elkhorn, Bruce ran a lucrative hedge fund, successfully navigating the financial crisis before his research led him to multifamily. In a few short years, Bruce has built a portfolio of 1,600 units, and he currently serves as a member of the Forbes Real Estate Council.

On this episode of Apartment Building Investing, Bruce joins me to explain what makes multifamily a better investment than the financial markets, especially through the COVID-19 crisis. He tells us about his first multifamily deal (as one of my early coaching students!), discussing the challenges he faced early on and describing how the Law of the First Deal impacted his real estate career. Listen in for Bruce’s insight on the advantage of choosing a niche in distressed assets and learn his aggressive but realistic approach to scaling a multifamily business.

Key Takeaways

What makes multifamily a better investment than the financial markets

  • S&P 500 = 2.5% average annual return over last 20 years
  • Multiplier effect ($100K buys $500K asset, earn $100K vs. $20K)

Bruce’s first multifamily deal as one of my early coaching students

  • 134-unit property in Fort Worth
  • $5.7M acquisition (raise $2.1M)
  • Sold 14 months later for $7.9M

Bruce’s experience with the Law of the First Deal

  • Second deal under contract when first closed
  • Acquire 3 to 4 per year ever since

Why Bruce chose a niche in distressed situations

  • More control over occupancy growth than rent growth
  • Create much more substantive equity in short period

Why Bruce sought out coaching early on

  • Overcome uncertainty
  • Understand deal structure

Bruce’s approach to scaling a multifamily business

  • Manage time wisely (leverage third-party property manager)
  • Be aggressive but realistic

Bruce’s experience through the COVID crisis

  • Investors ready to buy and deals available
  • Biggest challenge = lending environment

Bruce’s goals over the next three years

  • Double portfolio to 2K to 3K units
  • Centralized position in handful of markets

Why multifamily is the best investment through the pandemic

  • Tax efficient distributions
  • Demand for apartments remains high
  • Protects against inflation

Connect with Bruce Fraser

Elkhorn Capital Partners

Email bruce@elkhornpartners.com

Resources

Goldman Sachs Economic Outlooks

Purchase the Replay of Deal Maker Live

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_224.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

There are tons of books out there that teach you how to invest in real estate syndications with other people’s money. But what if you’re the ‘other people’? What resource teaches you how to evaluate opportunities and pick the right sponsor to trust with your money?

Brian Burke is the President and CEO of Praxis Capital, a private equity investment firm that focuses on repositioning multifamily properties. An expert real estate syndicator and investor, he has acquired 3,000 multifamily units and 700 single family rentals in his 30-year career. Brian is also the author of the new book, The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications.

On this episode of Apartment Building Investing, Brian joins me to explain why passive investors need to look beyond returns when comparing syndication opportunities. He discusses why the sponsor is a more important consideration than the market or the deal itself, sharing the cautionary tale of an investor who lost her life savings to an unethical syndicator. Listen in for Brian’s insight on the benefit of investing in a non-correlated asset like real estate and learn what questions to ask as you evaluate different investing opportunities.

Key Takeaways

The cautionary tale Brian included in The Hands-Off Investor

  • Grocery clerk sold fourplexes to invest in TIC syndication
  • Sponsor ran off with money and she lost life savings

The three indicators used to measure the performance of a real estate investment

  1. IRR
  2. Cash-on-cash return
  3. Equity multiple

Why passive investors must look beyond returns when comparing opportunities

  • Sponsor can manipulate what forecasted cashflows will be
  • Look at what’s behind numbers to determine if reasonable

Why the sponsor is more important than the market or the deal itself

  • Bad sponsor can ruin good investment in great market
  • Take time to determine moral character, track record

What secrets sponsors don’t want passive investors to know

  • Hidden asset management fees
  • Treatment of bad debt
  • How distributions made

The pros and cons of being a passive investor in multifamily syndications

  • Professional edge (make more money working with expert)
  • Give up control, can’t exit if don’t like what’s happening

The benefit of investing in non-correlated assets like real estate

  • Drop in stock market unlikely to impact real estate
  • Reduces any single point of failure in portfolio

Brian’s advice for skeptical investors looking at multifamily real estate

  • Look at where world’s wealth made
  • Minimize risk with balanced portfolio

Connect with Brian Burke

Praxis Capital

Praxis Capital on LinkedIn

Praxis Capital on Facebook

Praxis Capital on Twitter

Praxis Capital on Instagram

Resources

The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications by Brian Burke

Brian on Apartment Building Investing EP005

Purchase the Replay of Deal Maker Live

Join the Nighthawk Equity Investor Club

Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_223.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

In the world of startups, entrepreneurs take a lean approach early on with an eye to grow quickly. Ellie Perlman applied these principles to real estate, building and scaling a syndication business in a few short years. So, how do you shift from being a syndicator to managing a syndication business?

Ellie is the Founder and CEO of Blue Lake Capital, a real estate investing firm that specializes in value-add multifamily acquisition and management. She also leads REady2Scale, a mentoring program for aspiring multifamily syndicators, and hosts the REady2Scale Podcast. Ellie began her career as a commercial real estate lawyer and later transitioned to the role of property manager, overseeing properties worth more than $100M. She earned her MBA from the MIT Sloan School of Management.

On this episode of Apartment Building Investing, Ellie joins me to explain how growing up poor in Israel gave her the drive to succeed and share her journey from cleaning synagogues to earning an MBA from MIT. She discusses the decision to start her own real estate business, describing how multifamily syndication fulfilled her vision to both scale quickly and earn passive income. Listen in for Ellie’s insight on the magic of scaling a startup and get her advice on how to grow YOUR real estate business—even if you don’t have a budget!

Key Takeaways

How Ellie developed the drive to succeed

  • Cleaned synagogues as poor child in Israel to help family
  • Sent to youth village at 15, wanted better for own kids

What inspired Ellie to go to law school

  • Married at 18, working 3 jobs to provide for husband
  • Saw education as ticket out of ‘survival mode’

How Ellie developed an interest in real estate

  • Exposed to deals in international real estate department of law firm
  • Transitioned to property management to understand business side

What brought Ellie to the United States

  • Pursue MBA at MIT to learn how to start companies
  • Aunt had moved to US and achieved success

Ellie’s decision to go into business for herself

  • Desire to fulfill potential as self-made woman
  • Scarier NOT to try than to try and fail

Ellie’s insight on the power of believing in yourself

  • Causes to act in way that sets up for success
  • Changes other’s perception of who you are

Ellie’s big vision for building a real estate company

  • Reverse engineer plan based on net worth goal at age 50
  • Multifamily met requirements for scale, passive income

What Ellie would tell her younger self

  • Don’t listen to doubters + keep going
  • People project their own fear on you

How Ellie thinks about potential discrimination in real estate

  • Focus on what CAN change and improve self
  • Not productive to get stuck in victim mode

Why Ellie started a training program and podcast

  • Build relationships with potential investors
  • Learn something new to implement in business
  • Rewarding to see other people succeed

Why Ellie is an advocate for scaling your business

  • Burn out when try to do all on own
  • Magic in scaling to grow + grow quickly

Ellie’s advice for building and scaling a syndication business

  • Map out business want to create and define roles
  • Choose area of focus, partner or outsource rest

How to build a syndication business on a small budget

  • Hire intern through Handshake
  • Pay small stipend or offer equity

Connect with Ellie Perlman

Ellie’s Website

Email ellie@ellieperlman.com

REady2Scale Podcast

REady2Scale Mentoring Program

Blue Lake Capital

Resources

Register for Michael’s Free Masterclass: How to Do Your First Apartment Deal

Register for Deal Maker Live

Join the Nighthawk Equity Investor Club

BiggerPockets

Upwork

Handshake

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_222.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Doing something monumental like moving your family across the ocean to Hawaii or buying a 100-unit apartment complex may feel overwhelming. But Brandon Turner has done both of those things, and he contends that any process is easy IF you break it down into a series of tiny actions that take five minutes or less.

Brandon is the Founder of Open Door Capital, Vice President of BiggerPockets and Cohost of The BiggerPockets Podcast. He owns more than 500 rental units totaling $20M and has dozens of rehabs under his belt. Brandon’s work has been featured in Forbes, Entrepreneur and Money Magazine, and he is the author of several books, including The Book on Rental Property Investing and How to Invest in Real Estate.

On this episode of the podcast, Brandon joins me to share his assessment of the impact of COVID-19 on real estate investing, explaining how we should adjust our underwriting in light of the pandemic. He walks us through his favorite investing strategies right now, describing the opportunities he sees in real estate over the next 10 years. Listen in to understand the marketing techniques Brandon uses to raise LOTS of money online and get his advice on developing a clear VISION of where you want to be—and taking tiny action each day to get there!

Key Takeaways

Brandon’s assessment of the impact of COVID

  • Depends on whether second round of virus triggers another shutdown
  • 85% confident pandemic will be interesting memory in 6 months

How real estate investors should adjust their behavior right now

  • Less optimistic in underwriting (don’t count on raising rents in Year 1)
  • Good time to revisit fundamentals, be more conservative

The opportunities Brandon sees over the long term

  • Migration to South as more and more people reach retirement age
  • Invest in mobile home parks, senior living and low-income multifamily

How this economic crisis differs from the last recession

  • Last downturn CAUSED by shady practices in real estate
  • Less impact on real estate this time (except vacation rentals)

Brandon’s favorite real estate strategies right now

  • House hacking good for new investors
  • Rehab or value-add (BRRRR method)
  • Mobile home parks

Brandon’s insight around COVID’s impact on low-income earners

  • Still paying rent at mobile home parks
  • Government won’t allow economy to fail

BiggerPockets’ most successful marketing strategies

  • Build trust and credibility with content (blog, podcast)
  • Make money as software company, not education

How Brandon uses content marketing in his investing business

  • Build trust and credibility at scale with content
  • Leverage video to raise money, send thank you letters
  • Focus on growing Instagram audience (125K followers)

How Brandon architects his life around his family and business

  • Develop clear vision of success, know where want to be
  • Keep asking, ‘What’s the next little tiny step?’

Connect with Brandon Turner

Open Door Capital

Brandon on BiggerPockets

Brandon on Instagram

Resources

Join Michael’s Investor Incubator Mentoring Program

Register for Michael’s Free Masterclass: How to Do Your First Apartment Deal

Register for Deal Maker Live

Join the Nighthawk Equity Investor Club

Syndicated Deal Analyzer

Joe Fairless

Loom Video Messaging

The Book on Rental Property Investing by Brandon Turner

Bryce Stewart on BiggerPockets Podcast EP276

Vivid Vision by Cameron Herold

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_221.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

You may have heard the prediction that unemployment in the US could reach 30%, and that does sound scary. But what do those numbers really mean? And how would that worst-case scenario impact collections? What should we be concerned about as investors in affordable housing?

Damian Bergamaschi is the cofounder of Damris Capital, a money management firm that leverages data analysis to help its investors achieve financial freedom sooner. Damian leads Damris’ optimization research for all investment models and algorithms and serves as the portfolio manager of the firm’s real estate acquisitions.

On this episode of Apartment Building Investing, Damian joins me to explain how his obsession with data led to investments in commercial real estate. He discusses why affordable housing has been insulated from COVID-19, breaking down what the unemployment rate really means and how government subsidies have had a positive impact in the space. Listen in as Damian calculates projected collections in a worst-case scenario and find out why he is bullish on affordable housing as a reliable long-term investment.

Key Takeaways

The Damris Capital origin story

  • Idea to organize data, info from white papers
  • Test different asset classes by numbers

How Damian’s research led him to affordable housing

  • Devaluation of dollar = consistent long-term trend
  • Residential real estate most tax efficient way to invest indirectly in inflation
  • Add framework of Inflation Harvesting (layer on debt)

What we don’t understand about the unemployment rate

  • Many people have income despite being unemployed (e.g.: retirement, disability, etc.)
  • At 30% unemployment, 60% would still have income vs. 80% in normal circumstances

Why affordable housing is insulated from COVID-19

  • Government safety nets (stimulus checks, unemployment benefits)
  • More likely to pay for housing than discretionary expenses
  • Even in worst-case scenario, 70% collections projected

The adverse short-term impact COVID may have on affordable housing

  • Reductions for prepayment
  • Slightly lower collections
  • Credit card processing for online payments
  • Won’t raise rents for 12 to 18 months

Damian’s promising long-term outlook for affordable housing

  • Opportunity to raise rents at accelerated rate in 18 to 24 months
  • Consistent supply and demand in residential real estate
  • As cap rates contract, value of properties will expand

The cyclical nature of delinquencies and being paid up

  • Most caught up after tax return
  • Most delinquent after holidays

Why multifamily investors need to be thinking about September

  • Unemployment will start to hit caps (safety net goes away)
  • Renters may owe on taxes, not realizing UEB taxable

Connect with Damian Bergamaschi

Damris Capital

Resources

Join Michael’s Investor Incubator Mentoring Program

Register for Deal Maker Live

Join the Nighthawk Equity Investor Club

Damian’s Blog Post on Unemployment

Damian’s Blog Post on Mobile Home Park Investing

Damian’s Blog on Mobile Home Park Investing Performance Post-COVID

Inflation Harvesting

The Case-Shiller Home Price Index

US Bureau of Labor Statistics

Subprime Auto Loan Delinquency Statistics

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_220.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

No one knows exactly what will happen in the multifamily real estate market as the Coronavirus pandemic continues to unfold. But the heavy-hitters who have been in the game for a long time can predict, with relative certainty, which markets will thrive, when we’ll see new deal flow, and what the capital markets will look like over the next 12 months.

Michael Becker is a Principal at SPI Advisory and Senior Director of Mortgage Origination at Old Capital Lending. A 15-year veteran of commercial real estate banking, Michael has originated and managed portfolios in all the major asset classes. In the six years since he started investing in multifamily, Michael has acquired 10K units and currently manages a portfolio of 6K doors. He also serves as the Cohost of the Old Capital Podcast.

On this episode of Apartment Building Investing, Michael joins me to discuss the post-COVID new normal in multifamily real estate. He explains how the pandemic is impacting his business and offers insight around what the recovery might look like—and what that means for us as multifamily investors. Listen in for Michael’s predictions on multifamily capital markets and deal flow in the next twelve months and learn what you can do to be ready when the market turns!

Key Takeaways

How Michael’s career has evolved over the last several years

  • From 1K to 10K units in Dallas-Fort Worth and Austin
  • Start in workforce housing then sold old, bought new

How Michael was able to scale so quickly

  • Access to capital (JV with HNWI, shift to syndication)
  • Leverage technology for efficiency in raising equity

The biggest challenges Michael faced as he built SPI Advisory

  • Raise money + find deals while managing portfolio
  • Stay organized as scale (e.g.: send 1,200 K-1 forms)

Why Michael’s uses a third-party property management team

  • Geographically concentrated in certain area
  • No interest in accounting, HR or construction

How the pandemic is impacting Michael’s business

  • 5% delinquency on rents (4X normal rate)
  • Leasing only down by 15%

Michael’s predictions around the post-COVID recovery

  • Multifamily product used more than ever
  • Rent softening (how much depends on market)
  • Supply will constrict, new construction unlikely
  • Increase rental pool as people lose homes
  • Accelerating economic migration to Sun Belt

Michael’s predictions around post-COVID multifamily deal flow

  • Few deals in Q3, trickle in Q4
  • Steady stream of distressed deals starting in 2021

What the capital markets will look like for the next 12 months

  • No hard money, financial contingencies available
  • Challenging to get Fannie/Freddie loans
  • No bridge loans, personal guarantees required

What work Michael is doing on the acquisitions side right now

  • Active participant but don’t expect to buy until Q4
  • Aware of real-time data, ready when market turns

Where Michael sees his company going in the next five years

  • 10K units, continue transition to newer assets
  • Team runs day-to-day so Michael can travel

Connect with Michael Becker

Old Capital Real Estate Investing Podcast

SPI Advisory

Resources

Join Michael’s Mentoring Program

Register for Deal Maker Live

Join the Nighthawk Equity Investor Club

Michael Becker on ABI EP064

The Real Estate Guys Summit at Sea

Ken McElroy

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_219.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Those of us who enjoy success in the real estate business are typically introduced to a model, an investor operating at a scale we never considered, who gives us an idea for what’s possible and a vision for the future. And if we’re smart, we can learn from their mistakes and leverage their knowledge and experience as a springboard, affording us a more direct path to our own financial freedom.

Jacob Blackett is the Founder and CEO of Holdfolio, a platform that connects investors with high-yield investments in the real estate industry, and Syndication Pro, a software company that helps syndicators raise capital and manage investors online. Jacob got his start doing fix-and-flips as a 19-year-old sophomore in college, and today, he has placed over $50M into income-producing real estate, building a portfolio of 600+ units (as the lead sponsor) and a network of 3K registered investors.

On this episode of Apartment Building Investing, Jacob joins me to explain how an infomercial inspired his interest in real estate and share his journey from fix-and-flips to wholesaling to SFH rentals to multifamily. He walks us through the steps he took to scale his real estate business, describing why it’s beneficial to have an in-house property management team and how the technology he built to raise capital online became Syndication Pro. Listen in to understand how Jacob overcame losing $40K on his first deal and learn how to avoid his mistakes by joint venturing with an experienced team early on!

Key Takeaways

What attracted Jacob to the real estate space

  • Free fix-and-flip seminar (sophomore in college)
  • Up to $80K for single flip vs. CPA starting salary

Jacob’s experience with his first fix-and-flip

  • Picked up deal on MLS with grandma’s capital
  • Didn’t go as planned, ended up losing $40K

Why Jacob pivoted from flipping to SFH rentals

  • Very transactional, no tax benefits
  • Growing portfolio = monthly income stream

Jacob’s first AHA moment around scaling his business

  • Create partnerships with investors
  • Build portfolio of 150 SFH rentals quickly

What inspired Jacob’s transition to multifamily

  • All rentals in one place with staff onsite
  • Banks/lenders prefer multifamily

Jacob’s first multifamily deal

  • 46-unit with fire damage at 50% occupancy
  • Leveraged investor network for capital

What surprised Jacob most about multifamily

  • Breath of fresh air (power of all in one place)
  • Had to learn a lot about asset management

Jacob’s background working in property management

  • Met investor through wholesale deal
  • Managed all his acquisitions within 2 years

The benefits of using in-house property management

  • Generates revenue once reach 500+ units
  • Control and consistency in best practices

Jacob’s first steps for scaling his real estate business

  • Implement use of Propertyware software
  • Hire talented leasing agent and COO

How Jacob scaled his capital raising efforts

  • Crowdfunding sites caught eye early on
  • Built website to raise money online

How Jacob bounced back from losing $40K

  • Resolve to fix mistakes
  • Determined to pay grandma back

Jacob’s advice to his 19-year-old self

  • JV on first flips to hedge risk
  • Job at multifamily private equity company

Jacob’s advice for aspiring multifamily investors

  • Get on experienced team, see where you fit
  • Think creatively, don’t be afraid to take job

Connect with Jacob Blackett

Syndication Pro

Email jacob@syndicationpro.com

Resources

Join Michael’s Mentoring Program

Register for Deal Maker Live

Access Michael’s Syndicated Deal Analyzer

Enroll in Michael’s Deal Maker Mastermind

Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?

Join the Nighthawk Equity Investor Club

Propertyware

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_218.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Some real estate investments are riskier than others, especially in an economic downturn. Class A multifamily developers, for example, are likely to lose their tenant base in a recession. So, what can developers do to forecast what the world will look like at the end of a build cycle and make decisions accordingly? And what can we ALL learn from this approach that will help us prosper through multiple market cycles?   

Scott Choppin is the Founder of Urban Pacific, a real estate development company out of Long Beach, California. With 35-plus years of experience in the business, Scott has led the development of nearly 1,700 units throughout the Western United States. He is also responsible for a recent innovation known as Urban Town House, a middle-income, multigenerational housing product that serves urban families in California. Scott’s work has been featured in Forbes, The Los Angeles Times and Builder Magazine, among many other media publications.

On this episode of Apartment Building Investing, Scott joins me to explain how he got his start working for a large development firm, describing the wide range of skills and knowledge he picked up before striking out on his own. He discusses how he leveraged joint venture partnerships in the early days of Urban Pacific, what the company is doing to mitigate risk in a recession, and why he is optimistic about the current circumstances. Listen in for Scott’s insight on transitioning from a W-2 to real estate development and find out what YOU can do to survive and thrive in an economic downturn.

Key Takeaways

How Scott got into real estate development

  • Family background in industry
  • Work for large firm to learn on job

Why Scott chose another firm over the family business

  • No coddling
  • Gain broadest, deepest experience

What Scott learned in working for a big developer

  • Fill in broad framework of knowledge
  • Exposure to every aspect of business

How Scott transitioned into entrepreneurship

  • Build network of capital contacts
  • Joint venture with other developers

The structure of Scott’s early joint venture partnerships

  • Let me manage day-to-day operations of deal
  • Defer to senior partner as guarantor

Scott’s advice for shifting out of a salaried position

  • Save 2 to 3 years of monthly income in cash
  • Build developer fees into deal (overhead coverage)

The challenges around doing development as a side hustle

  • Best to learn by working in industry
  • Even small, local deal requires daily oversight

What kinds of deals Urban Pacific has done

  • Urban infill, residential development
  • From duplex to 453-unit multifamily

How Scott thinks about mitigating risk in a recession

  • Watch market signals to avoid oversupply
  • Focus on workforce housing for stable tenant base

Why Scott is optimistic about the current circumstances

  • Accelerated leasing velocity + rents holding
  • Lower costs for construction and land
  • Greater availability of labor from shutdown

Connect with Scott Choppin

Urban Pacific

Scott on LinkedIn

Resources

Join Michael’s Mentoring Program

Register for Deal Maker Live

Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?

Join the Nighthawk Equity Investor Club

‘6 Ways to Build a Career in the Real Estate Development Business’ by Scott Choppin

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_217v-2.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

How do you become a successful multifamily syndicator when you’re not old enough to order a beer? What does it take to overcome objections around being too young and too inexperienced—and raise more than half a million dollars in capital for your very first deal? What’s it like to achieve financial freedom before you turn 21?

Kyle Marcotte is an entrepreneur and multifamily real estate investor with a 119-unit portfolio valued at $5.5M. He was a pre-med student and Division I soccer player at UC Davis when Kyle learned about the potential to generate passive income with real estate. At the age of 20, he raised $600K and closed on his first deal in just four months. Now, Kyle is on a mission to help others become financially free with multifamily investing—regardless of age or experience.

On this episode of Apartment Building Investing, Kyle joins me to explain why he burned the boats and quit college to pursue real estate full time. He discusses how he got brokers and investors to take him seriously despite his lack of experience, sharing what gave him the confidence to keep moving forward through hundreds of no’s—until he finally got a YES. Listen in to understand why Kyle went for such a BIG first deal (a joint venture on 107 units!) and learn what he is doing now to build a personal brand and scale his multifamily syndication business.

Key Takeaways

What inspired Kyle to get into real estate

  • Read Rich Dad Poor Dad, got educated about passive income
  • Quit college to devote energy to multifamily

How Kyle realized he had the personality of an entrepreneur

  • Never able to accept being told what to do
  • Always trying to figure out best way

What financial freedom means to Kyle

  • Cover expenses with cashflow, residual income
  • Control over what day looks like

How Kyle got investors to take him seriously at the age of 20

  • Own inexperience but sell on grit
  • Deal pitch deck with multiple scenarios in story form

The specifics of Kyle’s first joint venture deal

  • 107-unit in Louisville (value-add play)
  • Raised $600K of $1M for $4.5M purchase price

Why Kyle kept going after hearing hundreds of no’s

  • Burned boats and had no other option
  • Commit to outcome, eventually someone says YES

Why Kyle went after such a large first deal

  • Need 75 units to achieve economies of scale
  • Acquisition harder but affords more control of time long-term

The nature of Kyle’s first joint venture partnership

  • Partner focused on underwriting
  • Kyle worked on raising capital

How things changed for Kyle after his first deal

  • Silenced critics, feeling of peace and ease
  • Credibility with investors who see as phenom

What Kyle is doing to build his investor base

  • Serve as guest on podcast circuit
  • Show up consistently on social media

How gave Kyle the confidence to keep moving forward

  • Relationship with higher power for guidance
  • Voice inside stronger than outside resistance

Connect with Kyle Marcotte

Kyle’s Website

Own Your Time with Kyle Marcotte

Kyle on LinkedIn

Kyle on Facebook

Kyle on Instagram

Resources

Register for Deal Maker Live

Join Michael’s Deal Maker Mastermind

Join the Nighthawk Equity Investor Club

Join Michael’s Mentoring Program

Michael’s Ultimate Guide to Buying Apartments with Private Money

Rich Dad Poor Dad by Robert T. Kiyosaki

Financial Freedom Summit

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

Divi

Mailchimp

ActiveCampaign

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

Direct download: ABI_216.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Why are there so few women in multifamily syndication? According to a 2019 study conducted by Merrill Lynch, 61% of women polled cited a lack of knowledge about real estate investing. And the fact that it’s a male-dominated industry is also a contributing factor. So, how do we get more women interested in learning about multifamily—and the financial independence that comes with it?

Kaylee McMahon is the Founder of The Apartment Queen, a platform dedicated to ending abuse and codependent relationships by helping women create wealth with real estate investing. A staple of the Dallas real estate scene, Kaylee has purchased $2M in real estate as Key Principal and currently serves as General Partner in 730 units in Texas and Arizona totaling more than $23M in assets under management. She is also the host of #1 Leading Ladies, a podcast about what it’s really like to be a female entrepreneur.

On this episode, Kaylee joins me to share her path from real estate agent to multifamily investor, discussing how the childhood abuse she suffered gave her the GRIT to keep going when things get tough. She offers her take on how a lack of knowledge around a male-dominated industry keeps a lot of women out of the multifamily game, describing her mission to help people, especially women, achieve the total independence she enjoys. Listen in for Kaylee’s insight on reversing the beliefs that hold you back and get her advice on how to get started with apartment building investing!

Key Takeaways

Kaylee’s path to multifamily real estate

  • Got start as agent, apartment locator
  • Move on to house flips + SFH rentals
  • Got into apartments ‘to add zero’

What makes Kaylee a good entrepreneur

  • Autonomous (make decisions on own)
  • Fast learner, good with people

Why Kaylee made the transition from agent to investor

  • All-in on decision to achieve financial freedom
  • Not afraid of losing it all, could always bartend

Kaylee’s take on the idea of failure

  • Take lessons learned with you to next venture
  • Pivot as necessary (e.g.: rent flip vs. sell)

Why Kaylee deals with fear better than others

  • Abuse in childhood built tremendous amount of GRIT
  • Driven by WHY to help others create independence

Kaylee’s experience with multifamily syndication

  • Did first 2 deals on own with help of mentor
  • Started partnering with others (raising capital)
  • General Partner in 730 units to date

Kaylee’s take on why there are so few women in multifamily

  • Lack of knowledge, limiting beliefs
  • Male-dominated industry (Good Old Boys Club)

Kaylee’s advice for aspiring multifamily investors

  • Learn underwriting, how to vet sponsors and market
  • Invest passively but ride along with GP to learn

Connect with Kaylee McMahon

The Apartment Queen

The Apartment Queen on Instagram

The Apartment Queen on Facebook

Kaylee on Facebook

#1 Leading Ladies Podcast

Email admin@theapartmentqueen.com

Resources

Deal Maker Live

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

Join the Nighthawk Equity Investor Club

Merrill Lynch 2019 Wealth Decisions Study

Rich Dad Poor Dad by Robert T. Kiyosaki

Scaling Up: How a Few Companies Make It … and Why the Rest Don’t by Verne Harnish

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

Direct download: ABI_215_v2.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

No good comes from making decisions out of panic or fear. So, what can multifamily syndicators do to navigate the next couple of months and cover the bills—even if our tenants can’t (or won’t) pay the rent on time? How can we reassure our investors that their money is safe and leverage the available safeguards to make it through the Coronavirus shutdown?

Jason Pero is the multifamily investor and syndicator behind Pero Real Estate, one of the leading real estate firms in Erie, Pennsylvania. Jason and his wife bought their first duplex in 2001 and continued to invest in small multifamily properties while he worked full-time in medical device sales. By 2012, Jason had built a 300-unit portfolio and was able to leave his 9-to-5 to pursue real estate full-time. He started syndicating deals in 2018, and today, Jason owns and self-manages 1K units in Erie County.

On this episode of the podcast, Jason joins me to discuss why he waited so long to get into syndication and why he self-manages his own portfolio. Jason explains how he is navigating the COVID-19 crisis, sharing the safeguards he has in place to get through the next few months and describing his approach to the situation as both a property manager and syndicator. Listen in for Jason’s insight on the buying opportunities coming on the market right now and find out why this is a good time to invest in yourself!

Key Takeaways

What inspired Jason to get into real estate

  • Internship with financial planning company
  • School teachers worth $5M (passive income from real estate)

Why it took Jason so long to take action on syndication

  • Limiting belief around loss of control
  • Realized could still call shots and serve more people

How the Coronavirus crisis elevates Jason’s mission

  • Watched stock market investors’ net worth plummet by 40%
  • Real estate provides predictable long-term investment

The safeguards that are helping Jason navigate COVID-19

  1. Withhold distributions to see how next months play out
  2. Can still pay bills with 30% economic vacancy
  3. Go to forbearance only as last resort

Jason’s take on the impact of the Coronavirus as a syndicator

  • Lenders still bullish, agency debt still in play
  • Social distancing poses challenges to due diligence

Jason’s approach to the Coronavirus as a property manager

  • Extend olive branch to good tenants
  • Waive late fees, work out payment plan

The buying opportunities coming available right now

  • Sellers more flexible with due diligence
  • Willing to consider financing contingencies

What makes Jason successful in a rural area

  • Greater metro area of Erie = 350K people
  • Large influx of outside $ (Buffalo, Cleveland and Pittsburgh)
  • Decision to self-manage properties

Why Jason self-manages his own portfolio

  • Didn’t know any different in beginning
  • Track record through economic upheaval reassures investors

Jason’s advice on navigating a difficult time

  • Don’t freak out, look at situation from practical standpoint
  • Research options (e.g.: SBA programs)
  • Communicate with investors + don’t run out of cash

Jason’s advice for aspiring multifamily investors

  • Find mentor or coach who’s been where want to go
  • Keep learning and stay humble

Connect with Jason Pero

Pero Real Estate

Jason on Calendly

Jason on LinkedIn

Jason on Facebook

Email jasonpero@yahoo.com

Resources

Register for Deal Maker Live

Join Michael’s Deal Maker Mastermind

Read Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?

Join the Nighthawk Equity Investor Club

Join Michael’s Mentoring Program

Rich Dad Poor Dad by Robert T. Kiyosaki

The Millionaire Next Door by Thomas J. Stanley and William D. Danko

SBA Programs for Coronavirus Relief

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

Direct download: ABI_214.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What are you doing to keep your mindset right during the Coronavirus shutdown? Are you making the most of the extra time at home? Taking advantage of the opportunity to invest in yourself and learn something new? Taking care of yourself, your family, your team, your investors and your tenants?

Vinney Chopra is a sought-after multifamily real estate expert with 12 years of experience and 28 successful syndications under his belt. To date, Vinney and his team of 67 control and self-manage a portfolio of 4,100 units worth $330M. He is also the bestselling author of Apartment Syndication Made Easy and the host of two podcasts, Syndication Made Easy and the Mr. Smiles Motivation Talk Show. Vinney came to the US 43 years ago with just $7 in his pocket, and he credits his success to the power of positive thinking.

On this episode of Apartment Building Investing, Vinney joins me to discuss how his team is dealing with the short-term impact of COVID-19 and what they are doing to support tenants in his properties. Vinny compares his experience in 2008 to the present circumstances, discussing why multifamily is the best business to be in during a recession and sharing his prediction for a V-shaped recovery. Listen in for Vinney’s insight on cultivating a positive outlook and taking care of your physical and mental health through the current crisis.

Key Takeaways

How Vinny’s team is dealing with the short-term impact of COVID-19

  • Community managers + leasing agents helping people remotely
  • Keep mind right, remember that this will pass

How Vinny’s experience in 2008 compares to the current situation

  • Little money or experience in 2008, start with just 14 units
  • 4,100-unit portfolio today (cash rich and optimistic)

What Vinny’s team is doing to support the tenants in his properties

  • Talk to banks, utility companies and authorities for reprieve
  • Look for creative ways to help tenants (e.g.: prorate rent)
  • Educate residents on available government programs

Vinny’s take on how the stock market drop will impact multifamily

  • Properties currently on market will decrease in value
  • Lending tough right now, look to individual investors

How a V-shaped recovery is likely to play out

  • Short-term cashflow problem resolved in next few months
  • Temporary dip in NOI, use cash reserves to get through

How Vinny thinks about buying opportunities in multifamily

  • Change in seller behavior likely to shake loose good deals
  • Investors who lost $ in stock market looking for better asset

What Vinny is doing to keep his mindset right

  • Dress up for day and do morning routine as before
  • Make best of time with family, virtual meetups with friends
  • Focus on spirituality, mental and physical health

What’s most important to Vinny right now

  • Health of family, team and fellow citizens
  • Giving back to people in need

Vinny’s advice on making the most of the extra time we have

  • Hone in on skills
  • Build investor list

How Vinny cultivates a positive outlook

  • Feed mind with positivity, make lemonade out of lemons
  • God gives us trying times to grow our inner strength

Connect with Vinney Chopra

Vinney’s Website

Vinney on Facebook

Apartment Syndication Made Easy by Vinney Chopra

Syndication Made Easy Podcast

Mr. Smiles Motivation Talk Show

Text LEARN to 474747

Resources

Register for Deal Maker Live

Read Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?

Join Michael’s Deal Maker Mastermind

Join the Nighthawk Equity Investor Club

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

Direct download: ABI_213.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

So, you understand the power of digital marketing to help you scale your multifamily syndication business. The question is, where do you start? What are the first steps to building an email list and attracting investors online?

Amy Porterfield is the award-winning digital marketing expert behind Online Marketing Made Easy and the creator of the Digital Course Academy. After seven years serving as the Director of Content Development for Tony Robbins, Amy became an entrepreneur herself and built a multimillion-dollar business teaching other people how to grow their own platform online. An authority in the realm of social media marketing, growing an email list and promoting and selling courses online, Amy is also the coauthor of Facebook Marketing All-in-One for Dummies.

On this episode of Apartment Building Investing, Amy joins me to explain why you need to build an email list, even if you have a strong social media following. She shares the simple steps you can take to attract investors with content and capture their email addresses with the right lead magnet. Listen in for Amy’s insight on using Facebook advertising to grow your audience and learn how to leverage digital marketing to scale your syndication business!

Key Takeaways

How Amy got into online marketing

  • Started career in corporate marketing (Harley Davidson, Tony Robbins)
  • Became own boss 11 years ago teaching how to grow online business

The mistakes Amy made early on as an online entrepreneur

  • Didn’t have expertise in niche
  • Didn’t have email list

How Amy decided what to create and who to serve

  • Got clear on expertise (social media, Facebook marketing)
  • Created very specific client avatar

Why an email list is better than social media followers

  • Algorithms change, you don’t own social platforms
  • You own email list + can use to build relationships

How to start building an email list from scratch

  1. Create content on consistent basis
  2. Create irresistible lead magnet (freebie in exchange for email)

How to choose your lead magnet

  • Must serve as INVISIBLE BRIDGE for audience
  • What avatar needs to know, understand or believe

How to get people to sign up for your email list

  • Use content upgrade strategy (if you loved…)
  • Make CTA on social posts, bios, podcasts and blogs

What to do if you don’t consider yourself a writer

  • Commit to one medium (e.g.: podcast or video)
  • Don’t try to be perfect, just show up consistently

The benefits of podcasting as a medium

  • Easier than writing or video, keep attention longer
  • Podcast platforms promote content for you

Amy’s advice on Facebook advertising

  • Keep it simple, start with boosting post
  • Upload email list to target ‘lookalike audience’
  • Do it yourself before you hire someone else

Amy’s top tips for online marketing

  • Start with mindset (i.e.: set small goal of 250 on list)
  • Simplicity is your friend

Connect with Amy Porterfield

Amy’s Website

Amy’s Free Masterclass: How to Start and Grow an Email List (Without the Stress, Tech Confusion, or Crazy Overwhelm

Marketing Made Easy Podcast

Resources

Watch the Replay of Michael’s Platform Builder Framework Webinar

Schedule a Call to Learn More About Michael’s Platform Builder Workshop

Facebook Marketing All-in-One for Dummies by Amy Porterfield, Phyllis Khare and Andrea Vahl

ActiveCampaign

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

Direct download: ABI_212.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What’s the #1 mistake syndicators make in building an online platform? Many put the cart before the horse and promote their business BEFORE the site is ready. They don’t provide a compelling reason to GO to their platform, and they have no way of capturing a visitor’s information once they get there. So, what can you do to score a lead’s email address and grow a substantial list of potential investors?

Monick Halm is the creator of Real Estate Investor Goddesses, a platform designed to help 1M women achieve financial freedom through real estate investing. To date, she has built an audience of more than 10K potential multifamily investors! Monique has 14 years of experience as an investor, syndicator and developer, building wealth through apartment buildings, mobile home parks, vacation rentals and ground-up development. Together with her husband and community of investors, she owns 1,300-plus units across 5 states.

On this episode of the podcast, Monick joins me to explain what keeps women on the sidelines of multifamily investing and how she is getting more women involved through Real Estate Investor Goddesses. She shares her process for raising money for a deal through the platform, discussing why it’s crucial to capture each visitor’s email address and what she does to drive traffic to the site. Listen in for Monick’s insight on getting educated on multifamily during this unique moment in time and learn what she did to build a list of 10K in a very short period!

Key Takeaways

Monick’s background in the multifamily space

  • Started syndicating in 2016 (focus on multifamily)
  • Mission to help women achieve financial freedom

What keeps women from getting involved in real estate

  • Don’t even know it’s a possibility
  • Don’t know what steps to take
  • Afraid to get cheated, lose money

How to get more women involved in real estate investing

  • Provide education to collapse timelines
  • See people who look like them in success stories
  • Overcome limiting beliefs of what wealth means

What inspired Monick to build the REI Goddesses platform

  • Got idea at Real Estate Guys event
  • Already coaching women around money
  • Mission + name came as divine download

Who Monick attracts through her platform

  • Passive investors + aspiring syndicators
  • Majority are busy professional women

The process of raising money for deals with a platform

  • Promote on podcasts, Facebook ads
  • Provide value to list (e.g.: emails, webinars, etc.)
  • Share heart to help and serve

How Monick went about building REI Goddesses

  • Start with Facebook group, added podcast and book
  • Facebook ads to build list (500 to 10K in single year)

Why it’s crucial to capture a site visitor’s email address

  • Valuable connection you control
  • Provide freebie (i.e.: Real Estate Success Blueprint)

How Monick justifies a significant investment in paid traffic

  • Spends $3K to $5K per month for Facebook ads
  • Single program sale covers cost of acquisition
  • Build relationships for life, not just one transaction

Monick’s approach to marketing her platform

  • Choose one or two paths to start
  • Hire experts (more than pay for selves)

Monick’s advice on navigating the Coronavirus crisis

  • Get educated now to spot opportunities later
  • Take advantage when others running scared

Connect with Monick Halm

Real Estate Investor Goddesses

REI Goddesses on Instagram

REI Goddesses on Facebook

REI Goddesses on Twitter

REI Goddesses Podcast

Resources

Deal Maker Live

Michael’s Platform Builder Workshop

Real Estate Investor Goddess Handbook by Monick Paul Halm

Pat Flynn on ABI EP210

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

Direct download: ABI_211.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

So, you want to connect with potential investors online. But how do you go about building a thought leadership platform? What kind of content should you create? And how do you best serve your audience so that they are ready to invest when a deal comes up?

Pat Flynn is the creator of Smart Passive Income, the premiere learning and development platform for online entrepreneurs. He got into online marketing out of necessity in 2008 when he was laid off from his dream job as an architect. Since then, Pat has built several successful online businesses and impacted millions of people around the world. He credits his success to serving others first, and then building systems to lean into that service even more.

On this episode of Apartment Building Investing, Pat joins me to explain how he got into the online marketing space and why he thinks EVERYONE should build a thought leadership platform. He offers insight into the power of podcasting, sharing how YOU can start a podcast of your own for under $100. Listen in for Pat’s insight on what to consider as you create an online platform and get his top tips for producing consistent content that serves your audience!

Key Takeaways

How Pat got into the online marketing space

  • Let go from dream job as architect in 2008 with no Plan B
  • Inspired by podcast to build website on LEED exam
  • Published study guide, made nearly $8K in single month
  • Started Smart Passive Income to help others start businesses

Pat’s response to the Why Me? objection

  • Don’t have to be expert, just few steps ahead of audience
  • Show up as person and connect to build superfans

How Pat defines smart passive income

  • Not get rich quick, have to put in work
  • Mechanisms in place to pay back later

The business model for an online venture

  1. Pick target market, research needs
  2. Create platform to demo authority
  3. Monetize (sponsorships, ads, products, affiliate marketing or pledge)

Why Pat thinks EVERYONE should build a platform online

  • Place to connect (nobody’s like you)
  • Build relationships and authority

What to consider in building a platform

  • Choose 1 format to start (e.g.: blog, podcast, YouTube channel)
  • Commit to producing content consistently

Pat’s tips for producing regular content

  • Planning session every quarter
  • Focus on questions people ask

What Pat loves about podcasting

  • Ease of creation (after initial setup)
  • Build amazing relationships with listeners
  • Evergreen content

How to start a podcast

  • Decide on topic and how helps people
  • Establish name, artwork and branding
  • Get mic + hosting service (<$100)

The biggest mistakes new podcasters make

  • Launch with single episode (at least 3)
  • Try to fit in specific time vs. range
  • Don’t publish regularly
  • Edit every breath or ‘um’

Pat’s top advice for aspiring platform builders

  • Consider what you’re missing out on by NOT doing it
  • Get started with intention of helping 1 real person

Connect with Pat Flynn

Pat’s Top Resources

Pat’s Website

Smart Passive Income

Resources

Deal Maker Live

Michael’s Free Platform Builder Webinar

Rich Dad Poor Dad by Robert T. Kiyosaki

Traffic & Conversion Summit

Internet Business Mastery

Superfans: The Easy Way to Stand Out, Grow Your Tribe, and Build a Successful Business by Pat Flynn

Patreon

SwitchPod DSLR Tripod

WordPress

Squarespace

Wix

Gary Vaynerchuk

Tim Ferriss

Pencils of Promise

The Joe Rogan Experience

Ask Pat

Apple Podcasts

Google Podcasts

Spotify Podcasts

Stitcher Radio

Pat’s YouTube Tutorial on How to Start a Podcast

Samson Q2U Mic

GarageBand

Adobe Audition

Audacity

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

Direct download: ABI_210.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Imagine being able to raise millions of dollars for a syndication deal in just a few days, with very little effort on your part. If you build it right, an online platform allows you to do just that, scaling your capital raise business by 10X in just 12 to 18 months!

Kate Buck is the Director of Marketing for us here at The Michael Blank organization. With nearly 15 years of experience in social media management and content production, Kate has worked with some of the top names in the digital marketing space and led strategic social media campaigns for global corporations, films, entrepreneurs and nonprofits.

On this episode, Kate turns the tables to ask me some questions about building an online platform to raise capital for multifamily syndications. We discuss what it takes to build an effective digital marketing platform and why you DON’T have to be a writer or a tech genius to do it. Listen in for the 4 things your platform needs before you try any of the more advanced marketing strategies (like paid advertising) and learn how I leveraged our online platform to raise $8M in 3 days!

Key Takeaways

Kate’s extensive background in digital marketing

  • Work with pioneers in online marketing space
  • Expert in social media and content production

How I learned the value of online marketing to raise capital

  • Struggled to raise money for deal 18 months ago
  • Realized not engaging list beyond lead capture
  • Started producing weekly content for audience
  • Able to raise $8M in 3 days for recent deal

Why syndicators need to create an online platform

  • Scale capital raising business (10X in 12-18 months)
  • Impact and serve more people, grow influence

The function of an online platform for syndicators

  1. Attracts certain kind of person/investor
  2. Capture information (e.g.: email address)
  3. Serve audience with educational material
  4. Lead audience to some transformation

The biggest mistakes syndicators make in creating a platform

  • No way to capture lead on website
  • No follow-up to make leads deal ready
  • Overwhelmed by process, do nothing
  • Think every element must be perfect

Why ANYONE can build an online platform to raise capital

  • Can create original content without being writer
  • Never been easier to use technology
  • Easy to outsource content production

The 4 things your platform needs before you try advanced strategies

  1. Method of capturing leads
  2. Series of automations to welcome and indoctrinate
  3. System for onboarding to investor club
  4. Infrastructure + commitment to produce regular content

Some advanced marketing strategies for promoting your platform

  • Promote lead magnet at Meetup, on podcasts
  • Shout out lead magnet on YouTube channel
  • Suggest next best action (e.g.: book + companion course)
  • Paid traffic through Facebook

The business case for building an online platform to raise capital

  • Invest at least 20% of acquisition fee in marketing machine
  • Convert industry standard 1 investor for every 32 leads
  • Earn about $2,100 for average investment of $70K each

Connect with Kate Buck

Kate’s Website

Kate on LinkedIn

Kate on Twitter

Kate on Facebook

Resources

Deal Maker Live

Sign Up for Michael’s Live Webinar—April 15 at 8pm EST

Michael’s Spreadsheet & Blog Post on Building a Platform

Temi

Financial Freedom with Real Estate Investing by Michael Blank

Join the Nighthawk Equity Investor Club

Joe Fairless

Dan Handford

Neal Bawa

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

Direct download: ABI_209_v2.mp3
Category:Commercial Real Estate -- posted at: 1:01am EDT

Beyond the risks it poses to our health, the Coronavirus is causing chaos in our economic system as well. Businesses have closed their doors and many Americans have lost their jobs or had their hours cut. And the stock market is on its way down. But what does it all mean for us as multifamily investors? Is the sky falling? Or are there things we can do to protect ourselves and serve our tenants in this challenging time?  

On this episode of Apartment Building Investing, I’m sitting down with an expert panel of multifamily operators that includes Drew Kniffin, Brian Burke, John Cohen, Reed Goossens, Andrew Cushman and Ellie Perlman to discuss what we are doing to protect our investments and our investors through the Coronavirus pandemic. We share our strategies for income preservation and expense reduction, explaining how we are supporting tenants through the crisis and what programs we are leveraging to keep our employees on payroll.

We go on to address how COVID-19 is likely to impact passive investors and offer insight on what they can do to take advantage of the shift to a buyer’s market. Finally, we explore the short-, medium- and long-term implications of the economic fallout from the Coronavirus and describe the incredible wealth-building opportunity available to savvy real estate investors in the months to come. Listen in to understand what defines a good deal in the current environment and learn how to use this time to prepare for the next up cycle!

Key Takeaways

What Andrew is doing as an owner to protect his investments

  • Put together resources for tenants
  • Negotiate with service providers to cut costs
  • Apply for Paycheck Protection Program
  • Flexible with tenants, reward early payment
  • No increase in rent on lease renewals

How John’s team is navigating the Coronavirus crisis

  • Reach out to tenants with message ‘here for you’
  • Focus on tenant retention, mitigating expenses

Ellie’s insight on tenants who can’t pay vs. tenants who won’t

  • CARES Act prohibits evection whether lost job or not
  • Depends on prior relationship with tenants, location

The additional things Ellie’s team is doing to navigate COVID-19

  • Offer furnished model units to traveling nurses
  • Security deposits to pay rent, replace with insurance

The additional things Brian’s team is doing to navigate COVID-19

  • Refer tenants to Project Porchlight financial counseling
  • Postpone rent or amortize over next several months
  • $50 grocery gift card if reach out to explain situation

Brian’s insight into the Paycheck Protection Program

  • SBA loan to cover 2.5X payroll if keep employees
  • May not apply to third-party property manager

Reed’s perspective on the Coronavirus crisis

  • Keep hysteria manageable, get good info to tenants
  • Share maintenance tech across portfolio

How Drew and Brian think about the risk for passive investors

  • Money safe if deal well-capitalized + plenty of reserves
  • Most sponsors halt distributions next quarterly cycle
  • Little/no rent growth and reduced occupancy for awhile

John’s insight on how the crisis will change lender behavior

  • Vet sponsors harder moving forward
  • Require 12-plus months of reserves

The overnight shift from a seller’s market to a buyer’s market

  • Must assess risk of unknown (focus on #s, not emotion)
  • Buyers ask for discount based on current financials

What passive investors should do in the short-term

  • More opportunity to invest in quality deals
  • Conduct proper due diligence on operator

Our predictions around what to expect in the short term

  • All feel pain as transaction velocity grinds to halt
  • Be proactive, lenders willing to work with us

Our predictions around what to expect in the medium term

  • Take time for income and job growth to recover
  • Wealth building opportunity if not too anxious

Our predictions around what to expect in the long term

  • Look back and laugh in years to come
  • Grow and get stronger from weathering storm

How to stress test acquisitions in this new environment

  • Over-raise for operations and capital expenditures
  • Reduces IRR but money on hand for rainy day events

Why it’s hard to underwrite deals right now

  • No good info on change in economic vacancy rates
  • Year-on-year rental growth will take massive hit

How student housing may be affected by the Coronavirus crisis

  • Protected if parent guarantee in leases, semester vs. year
  • Consider reaching out to hospitals to provide extra beds

How the stock market crash will affect our ability to raise capital

  • Some investors not as liquid due to stock market losses
  • Those with capital to deploy may prefer real estate

What the average investor should be doing right now

  • Get educated and line up investors
  • Start underwriting deals, develop parameters
  • Choose markets likely to come back quickly
  • Don’t get too excited but be ready for up cycle

The moratorium on evictions due to COVID-19

  • Local governments not processing evictions at this time
  • Forbearance requires not evict anyone over term of loan

The potential growth of secondary and tertiary markets

  • Less dense = safer than tight, urban environments
  • Also depends on economic makeup of area

What defines a good deal in this environment

  • 60- to 90-day due diligence
  • No hard money down, financing contingency
  • Mitigate risk with conservative underwriting
  • Retrade with integrity if value goes south

The 5 steps for making a successful shift to entrepreneurship

  1. Singular focus
  2. Measurable action plan
  3. Proper time management
  4. Understanding of finances
  5. Accountability

Connect with the Expert Panel

Drew Kniffin

Brian Burke

John Cohen

Reed Goossens

Andrew Cushman

Ellie Perlman

Resources

Deal Maker Live

Deal Maker Mastermind

Michael’s Products & Programs

Michael’s Mentoring Program

Nighthawk Equity

The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications by Brian Burke

CARES Act

Paycheck Protection Program

Project Porchlight  

Josh Thomas

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

Direct download: ABI_208.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Are you working a W-2 job that leaves you depleted? Even if you love what you do, it’s likely that the stress of the commute on top of the work itself means you have little left to give to your family at the end of the day, never mind making a significant impact on the world at large. Krista Wilper was tired of being too tired to engage with her husband and sons, so she leveraged multifamily investing to quit her corporate job. And she credits her success to a daily effort to keep her mind in the right place.

Krista is the creator of Synergy Invested LLC, a real estate education and investing platform based in Golden, Colorado. She retired from her executive position at an adult beverage company at the age of 38, walking away from a six-figure income to pursue real estate full time. Now, Krista and her husband own $2.2M in single and multifamily investments, and she is on a mission to help others achieve financial freedom and get control of their time and energy through real estate investing.

On this episode of Apartment Building Investing, Krista joins me to explain why she quit a job she loved to pursue real estate, sharing the series of conversations she had with her husband and what she loves most about not working a 9-to-5. She discusses why she took action when so many others don’t and explores why there are so few women in the world of multifamily. Listen in for Krista’s insight on the value of hiring a coach, getting the right support system in place, and training your mind for multifamily investing!

Key Takeaways

Why Krista made the decision to quit a job she loved

  • Stress around being both mom AND executive
  • No energy to discipline son caused tension with husband

What the conversation with Krista’s husband was like

  • Planned on retiring in 5 years, counted on her income
  • Doubted that she could get him out with real estate

Why Krista took action when so many others don’t

  • Ability to push outside comfort zone + manage fear
  • Surrounded self with encouraging people
  • Kept returning to numbers when emotions came up
  • Daily effort to keep mind in right place
  • Something bigger than self to keep on track

What Krista loves most about not working a 9-to-5

  • Energy to juggle responsibilities as mom
  • Time to focus on helping other people

Krista’s primary real estate investing goals

  1. Double net income
  2. Allow husband to retire in 3 to 5 years

The first steps Krista took to reach her investing goals

  • Hired a coach (helped think BIG)
  • Eliminated naysayers from circle

Krista’s insight on overcoming both internal and external challenges

  1. Find something bigger than yourself to chase
  2. Train your mind (stop comparing, listening to excuses)
  3. Understand your relationship with money + limiting beliefs
  4. Take action even when you don’t know what you’re doing
  5. Hire coaching
  6. Come back to numbers

Krista’s take on why there aren’t more women in investing

  • Brains operate differently (spaghetti vs. waffles)
  • Ego in thought leader communication = turnoff for women

Krista’s advice for aspiring multifamily investors

  1. Get coach
  2. Get mind right
  3. Get support group in place (includes partner and team)
  4. GO

Connect with Krista Wilper

Krista on LinkedIn

Synergy Invested on Instagram

Synergy Invested on Facebook

Resources

You Are a Badass at Making Money: Master the Mindset of Wealth by Jen Sincero

The Real Estate Guys

Michael’s Mentoring Program

Deal Maker Live

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

Direct download: ABI_207.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Once you’ve exhausted your sphere of influence, where can you go to raise capital for multifamily deals? You might be surprised to learn that LinkedIn is one of the best places to connect with high-net-worth individuals (HNWI) and introduce them to the benefits of apartment building investing.

Yakov Smart is the creator of LinkedIn Lead Enterprises, a platform designed to help business owners find clients on LinkedIn. An internationally recognized LinkedIn expert, Yakov teaches top CEOs, bestselling authors and real estate syndicators how to transform their LinkedIn profiles into priceless, relationship-building assets. Yakov is also the author of Disrupting LinkedIn: The Definitive Guide to Generating Leads, Receiving Referrals and Attracting High-End Clients Through Marketing on LinkedIn.

On this episode of Apartment Building Investing, Yakov joins me to explain why LinkedIn is the best social platform for finding investors and raising capital for multifamily. He shares the biggest mistakes syndicators make on LinkedIn and walks us through his SPOT formula for finding leads through the professional networking platform. Listen in for Yakov’s insight on the tools available for building lists and learn how YOU can connect with the right people, send the right message, and scale your marketing efforts with LinkedIn.

Key Takeaways

Yakov’s take on the availability of capital for real estate

  • HNWI not on traditional social media channels
  • Use LinkedIn to find + educate right people

Why LinkedIn is the best platform for finding investors

  • Average household income = $115K
  • Use to expand professionally and build wealth
  • 40M direct decision-makers, 100M influencers

Why LinkedIn works well for raising capital

  • More interactive since bought by Microsoft
  • Make connections and learn on own time

How Yakov discovered LinkedIn as a lead source

  • Used to generate new business (software sales)
  • Market to hard-to-reach individuals

The biggest mistakes people make on LinkedIn

  1. Being unintentional
  2. Profile not up-to-date, all about you
  3. Pitch everyone with same message
  4. Focus too much on content creation

Yakov’s SPOT formula for finding leads on LinkedIn

  • Start with your list
  • Position self as authority
  • Optimize for what THEY want
  • Transition relationship offline

The four ways to build lists on LinkedIn

  1. Free search
  2. Search by groups
  3. Sales navigator search
  4. Paid traffic

How to scale your marketing efforts on LinkedIn

  • Use AI to automate custom follow-up
  • Respond manually only when raise hand

How to convert investors from stocks to real estate

  • Use information-based marketing
  • Build LinkedIn groups

Connect with Yakov Smart

LinkedIn Lead Enterprises

Yakov on LinkedIn

Resources

Michael & Yakov’s LinkedIn Webinar

Disrupting LinkedIn: The Definitive Guide to Generating Leads, Receiving Referrals and Attracting High-End Clients Through Marketing on LinkedIn by Yakov Savitskiy

Yakov’s Irresistible Profile Cheat Sheet

Meet Edgar

Michael’s Platform Builder Framework Webinar

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

Nighthawk Equity

Michael’s Investor Incubator

Deal Maker Live

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

Direct download: ABI_206.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What is your true, God-given calling in this life? Most of us are limited by time and money, so we don’t even dare to dream about fulfilling our purpose. But what if multifamily investing could give you the freedom to pursue your calling? To live a life of significance? And to make a real impact in the world?

Ellis Hammond is the founder of Kingdom Capitalists, the #1 mastermind for Christian real estate entrepreneurs. In 2018, when Ellis was serving as a full-time college pastor, he and his wife invested in a $600K duplex in San Diego. Nine months later, he added a 144-unit multifamily property in Memphis to his portfolio. Today, he manages a network of investors seeking passive income opportunities across the US with the goal of increasing their income and impact.

On this episode of Apartment Building Investing, Ellis joins me to discuss what inspired him to get involved in real estate, sharing his AHA moment around the relationship between capital and impact. He opens up about the limiting beliefs he struggled with early on, describing the mindset shift that helped him get comfortable asking investors for very large sums of money. Listen in for Ellis’ insight on the power of community in real estate investing and learn how multifamily can give YOU the freedom to pursue your true calling.

Key Takeaways

What inspired Ellis to get involved in real estate

  • Running Christian nonprofit in San Diego
  • Team member struggling to buy groceries

The Christian community’s limiting mindset around money

  • Seen as root of all evil
  • Ministry needs capital to create greatest impact

How Ellis’ approach to real estate investing evolved

  • Bought and renovated $600K duplex in San Diego
  • Introduced to syndication (leverage money raising skills)

The limiting beliefs Ellis struggled with early on

  • Thinking had to be millionaire to do multifamily
  • Scared to go big, ask for 10X sums of money

Ellis’ concept of creating margin in your life

  • Real estate gives freedom of time or money
  • Use to fulfill God’s calling on your life

What allowed Ellis to quit his job to pursue multifamily

  • Support of wife and team in ministry
  • Realized okay to pursue different calling

What Ellis is passionate about right now

  • Launch mastermind for Christian investors
  • Increase income + impact to change world

Why Ellis loves the community of real estate investing

  • Don’t have to love everything about process
  • Accelerate goals with just ONE connection

Ellis’ advice for aspiring multifamily investors

  • Figure out + leverage your superpower
  • Don’t have to do it alone

Connect with Ellis Hammond

Kingdom Capitalists

Ellis’ Website

Ellis on LinkedIn

Email ellis@kingdomcapitalists.co

Resources

Rich Dad Poor Dad by Robert T. Kiyosaki

Uganda Counseling and Support Services

Deal Maker Live

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

Direct download: ABI_205.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

If you’re looking to scale your efforts at raising capital with an online platform, you may be curious what you can and cannot do to market your business. What exemptions do you need to file in order to legally advertise a multifamily offering? How do you build the ‘preexisting and substantive’ relationship with investors the SEC requires for the 506(b) when you’re connecting online?

Gene Trowbridge is the managing partner of Trowbridge Sidoti LLP, a California law firm that specializes in real estate syndications and crowdfunding. Gene has extensive experience in commercial real estate investment, and in the last six years, his firm has authorized securities offering documents for more than $1.5B of equity raised. He is also the author of It’s a Whole New Business, the definitive book on securities for multifamily investors.

On this episode of Apartment Building Investing, Gene joins me to discuss the two methods for legally advertising a real estate syndication (online or otherwise), the Reg A and 506(c). He explains why the 506(b) is more popular than the 506(c) and offers advice on proving a preexisting and substantive relationship with investors per the rules of the 506(b). Listen in for Gene’s insight on doing a 1031 Exchange in a syndication and learn how to leverage the tenant in common agreement to bring on new investors.

Key Takeaways

The two ways to legally advertise a real estate syndication

  • Regulation A+
  • Regulation D 506(c)

What syndicators need to know about the Reg A

  • Costs $50K to $100K and takes 4 to 6 months
  • Works for syndicators with huge social network

Why more investors don’t do a 506(c)

  • Most sophisticated sponsors have enough investors
  • Requires third-party verification of accredited investors

The SEC rules around the 506(b)

  • Not allowed to advertise offering
  • Must show substantive + preexisting relationship

What it means to have a substantive + preexisting relationship

  • More than just collecting email address
  • More interactions = easier to prove

Gene’s advice on proving a preexisting relationship

  • Develop record-keeping system to track interactions
  • Use introductory questionnaire (sign and date)

How to work with an investor with 1031 Exchange money

  • Cannot invest in LLC (must be deed to deed)
  • Make them tenant in common in new ownership structure

What to do when some of your LPs want their money from a sale

  • Interview investors prior to sale re: potential for 1031
  • Open two separate escrow accounts (one for holdouts)

How to bring on new investors in a 1031 Exchange project

  1. Operating agreement may allow for new investors in LLC
  2. Two separate LLCs as tenants in common (= partnership)

Connect with Gene Trowbridge

Trowbridge Sidoti LLP

It’s a Whole New Business by Gene Trowbridge, Esq. CCIM

Resources

Regulation A

Regulation D

No Action Letters

1031 Exchange

Gene’s TIC (Tenant In Common) Epidemic Webinar

Opportunity Zones

How to Raise Millions in Days with the Platform Builder Framework

Deal Maker Live

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

Direct download: ABI_204.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Imagine earning as much as $10K in cashflow distributions from your investment in a multifamily property in a given year—yet claiming a taxable LOSS! You CAN mitigate (and in many cases even eliminate) taxable income for years with the MAGIC of bonus depreciation. But you do need to do a cost segregation analysis to claim it.

Terry Judge is the Founder and CEO of CORE Solutions Group, one of the nation’s leading cost recovery consulting firms specializing in engineering-based cost segregation studies. He is committed to educating multifamily investors on how to maximize cashflow and take full advantage of the ever-changing tax code. Terry has 14 years of experience in the cost seg space, yielding more than $1B in net tax savings for CORE clients.

On this episode of Apartment Building Investing, Terry joins me to discuss the benefits of doing a cost segregation analysis, explaining how it accelerates depreciation and mitigates the investor’s taxable income. He describes how changes to the 2017 tax code in made it useful for even small multifamily buildings to leverage a cost seg study and walks us through the advantages of taking bonus depreciation in Year 1 (versus spreading it out over the hold period). Listen in for Terry’s insight around the best exit strategies for avoiding a big tax bill and learn about the additional tax breaks you can earn with energy-saving renovations.

Key Takeaways

How Terry got into cost segregation analysis

  • Work in energy space, introduced to idea by accountant
  • Noticed gap between government, CPA and investor

The benefits of doing a cost segregation analysis

  • Way to accelerate depreciation (from 27½ to 5 years)
  • Take advantage of time value of money
  • Mitigate taxable income, 20-year carry forward

What a cost segregation analysis looks like

  • Breaks property down into component parts
  • Apply depreciation schedule one by one

How the 2017 Tax Cuts and Jobs Act changed cost seg

  • Smaller properties qualify ($500K)
  • Take bonus depreciation in Year 1

The process of working with Terry’s team at CORE

  • Send purchase price/date and address
  • Kickoff call to go over benefit analysis

How much it costs to get a cost segregation analysis

  • Varies by location, requirements
  • 15:1 return on investment

How to avoid a big tax bill when you sell a property

  • Hold 3+ years to leverage time value of $
  • Impact lessened as value of assets reduced
  • Buy new property same year to offset gain

Why Terry advises taking bonus depreciation in Year 1

  • Can opt to spread out over hold period
  • Investors carry forward losses if can’t use

The Energy Efficient Commercial Buildings Deduction

  • Incentivizes energy saving renovations
  • Includes lighting, HVAC and building envelope
  • Up to $180K in additional depreciation

Connect with Terry Judge

Core Solutions

The Cost Seg Guy No-Cost Benefit Analysis

Resources

Tax Cuts and Jobs Act of 2017

IRC 179D

Deal Maker Live

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

Nighthawk Equity

Michael’s Mentoring 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

Direct download: ABI_203.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Two years ago, Will Harvey thought that only people with millions of dollars could own apartment buildings. And then he started listening to podcasts and reaching out to other entrepreneurs and real estate investors. Their stories broke the ceiling on what he thought was possible, and by the end of 2019, Will was able to quit his W-2 job and pursue multifamily full time.

At just 26 years of age, Will is the Vice President of CEO Capital Partners, a real estate acquisition firm focused on multifamily. A veteran of the residential mortgage business, Will earned National Rookie of the Year honors in 2017 and operated in the top 5% at one of the largest retail lenders in the US. Now, he controls over $1.5M of real estate in Northern Virginia. Will is also the cohost of Wealth Junkies, a podcast dedicated to sharing the stories of successful entrepreneurs and liberating 1,000 people from the rat race.

On this episode of the podcast, Will joins me to talk about how being hell bent on getting OUT of his W-2 job led him to real estate investing. We discuss how Will leveraged multifamily podcasts to turn his car into a mobile university, how he found his joint venture partners, and what steps he took to quit his 9-to-5 at the end of 2019. Listen in for Will’s insight on building the Wealth Junkies platform and get his advice on surrounding yourself with people who’ve done what you want to do.

Key Takeaways

How Will got into real estate investing

  • Looking for way out of mortgage business
  • Started with house hacking SFHs

How Will got educated around multifamily

  • Listening to podcasts (car = mobile university)
  • Reach out to dad’s friends in real estate

Will’s initial multifamily strategy

  • Wanted to invest locally in Winchester
  • Realized pond too small to find good deals

Will’s insight on the value in joint venturing

  • Accelerates progress to work together
  • Play to strength in building relationships

Will’s first deal through CEO Capital Partners

  • Raise capital for experienced operator (cosponsor)
  • Afforded team credibility with brokers

The steps Will took to quit his job

  • Lived well below means
  • Refi one property, increased rent on SFHs
  • Passive investment in multifamily

Will’s take on what building a platform does for you

  • Position self as thought leader
  • Create funnel to capture info
  • Raise capital beyond local investor network

What Will would tell his younger self

  • Think BIGGER
  • Change I can’t to How can I _______?

Why Will recommends listening to podcasts

  • Accelerates learning
  • Break ceiling of what thought possible

Will’s vision of the next five years

  • Expenses covered
  • Continue to grow + scale

Will’s advice for aspiring multifamily investors

  • Seek advice from qualified people

Connect with Will Harvey

Wealth Junkies

Email will@wealthjunkies.com

CEO Capital Partners

Resources

Deal Maker Live

Bigger Pockets Real Estate Podcast

Corey Peterson

CoStar

LoopNet

The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results by Gary Keller with Jay Papasan

Rich Dad Poor Dad by Robert T. Kiyosaki

Trump: The Art of the Deal by Donald J. Trump with Tony Schwartz

Syndicated Deal Analyzer

Michael’s Platform Builder Framework

Nighthawk Equity

Michael’s Mentoring 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

Direct download: ABI_202.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What excuse are you using to explain why you haven’t gotten started with multifamily? Too young? Too old? No money? No experience? No time? What if those limiting beliefs are nothing more than a story you’re telling yourself to justify a lack of action? What if you could overcome those beliefs TODAY and take the first steps toward financial freedom?

Rod Khleif is a multifamily investor, business consultant and high-performance coach with a passion for giving back. He serves as the host of the iTunes top-ranked podcast Lifetime Cash Flow Through Real Estate Investing and author of How to Create Lifetime Cash Flow Through Multifamily Properties, a must-read for aspiring investors. Rod has built several successful multimillion-dollar businesses, and he is known as one of America’s top real estate investment and business development trainers.

On this episode of Apartment Building Investing, Rod joins me to offer insight on what’s really behind the limiting beliefs that keep us from getting started in multifamily and share his responses to some of the most common excuses aspiring investors give. We discuss the burning desire and positive expectation that successful investors have in common, and Rod explains how he deals with setbacks and challenges. Listen in for Rod’s take on the top habits of highly successful people and learn to leverage gratitude to succeed in multifamily real estate!

Key Takeaways

Rod’s insight on what’s behind limiting beliefs

  • Stories we tell ourselves (circuit breakers)
  • Justify lack of action

Rod’s response to ‘I don’t have time right now’

  • Not important enough to you
  • Priorities vs. time management

Rod’s response to ‘the market is too hot’

  • Must really want it, be willing to hustle
  • 500 doors under contract in 3 states

Rod’s response to ‘I don’t have any experience’

  • Now = BEST time to learn multifamily
  • Market correction will bring opportunity

Why it’s crucial to celebrate progress

  • Recognize growth as person
  • More important than goals

What successful people have in common

  • Burning desire
  • Positive expectation

How to deal with the inevitable setbacks

  • Exercise to mitigate stress
  • Focus on what you want
  • Surround self with right people

The habits of highly successful people

  • Take first step
  • Commit to outcome
  • Play to strengths
  • Passion & influence
  • Peer group
  • Tenacity/grit

Rod’s advice for aspiring multifamily investors

  • Gratitude = most important emotion
  • Remember why love life every day

Connect with Rod Khleif

Rod’s Website

The Lifetime Cash Flow Through Real Estate Podcast

Rod on Facebook

Rod’s Multifamily Bootcamp

Text PARTNERSHIP to 41411 for Rod’s Partnership Questions

Text THINKING to 41411 for Rod’s Gratitude Prompts

Text ROD to 41411 for Rod’s Due Diligence Checklist

Resources

Deal Maker Live

Rod Khleif on ABI EP038

Rod Khleif on ABI EP088

Books by Napoleon Hill

The Secret

Hal Elrod on ABI EP165

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

The 5 Love Languages: The Secret to Love That Lasts by Gary Chapman

The Slight Edge: Turning Simple Disciplines into Massive Success and Happiness by Jeff Olson and John David Mann

Three Feet from Gold: Turn Your Obstacles into Opportunities by Sharon L. Lechter and Greg S. Reid

Tony Robbins

Michael’s Mentoring 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

Direct download: ABI_201_v2.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What do the most successful among us have in common? The biggest of the big-name real estate investors and influencers I’ve had the pleasure to interview on this podcast share one thing—a mission beyond money. Yes, financial freedom is important. But without purpose, what’s the point?

On this episode, I’m celebrating our 200th show with a highlight reel of the best Apartment Building Investing podcasts from the past year. We look back at my interview with Rich Dad Advisor Ken McElroy as he shares how his thinking has evolved around financial freedom and what it means to be successful, and return to my conversation with Robert Helms of The Real Estate Guys around his mission to both educate and inspire action.

We revisit legendary entrepreneur and investor Robert Kiyosaki’s insight on spiritual discipline and bestselling author Hal Elrod’s take on the REAL purpose of setting goals. Listen in for marketing icon Kyle Wilson’s advice on building a platform and get inspired by billion-dollar investor and influencer Grant Cardon’s definition of true wealth.

Key Takeaways

What financial freedom means to Ken McElroy

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

How Ken McElroy’s definition of success changed over the years

  • From ‘job’ to ‘good job I really enjoy’
  • Shifted to focus on money, being millionaire
  • Now involves relationships with family + kids

What gets Ken McElroy out of bed in the morning

  • Sense of purpose
  • Desire to contribute

The Real Estate Guys’ mission

  • Put education to work via effective action
  • Create community + collapse time frames

The secret to Robert Helms’ success

  • Recognize economic reality beyond real estate
  • Understand other investing opportunities

How Robert Kiyosaki learned spiritual discipline

  • Marines focus on mission to bring fellow man home
  • Business world only mission to make money
  • Boundary of life + death gets in touch with God

Robert Kiyosaki’s take on the three kinds of money

  1. Gold + silver = God’s money
  2. Government money = fake
  3. People’s money (e.g.: Bitcoin)

Hal Elrod’s insight on the REAL purpose of setting goals

  • Develop qualities + characteristics of goal-achiever
  • Growth on journey more important than hitting target

Hal Elrod’s take on why traditional affirmations don’t work

  • Taught to lie to ourselves, use passive language
  • Affirmation must be paired with action

Kyle Wilsons’ insight on the principles of marketing

  • Provide great product, customer service
  • Be consistent + relational

Kyle Wilson’s must-haves for a website

  1. Mystique
  2. Taglines
  3. Social proof
  4. Creative opt-in

What gets Grant Cardone out of bed in the morning

  • Build legacy for family, church + community
  • Produce something of value = live forever

Grant Cardone’s definition of wealth

  • Money, time, love, health, fun and PURPOSE
  • Keep learning to contribute on another level

Resources

Enter to Win a Free Copy of Michael’s Book

Michael’s Ultimate Guide to Apartment Building Investing

Ken McElroy on ABI EP133

Robert Helms on ABI EP156

Robert Kiyosaki on ABI EP160

Hal Elrod on ABI EP165

Kyle Wilson on ABI EP184

Grant Cardone on ABI EP188

Warriors Heart

Jim Rohn

Zig Ziglar

Chris Widener

Ron White

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

Direct download: ABI_200.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

With more buyers than product on the market, finding good real estate deals can be difficult—especially for newbies. But it’s not impossible. So, what can aspiring multifamily investors do to get a deal under contract?

Drew Whitson, Josh Sterling, Andrew Kuhn and Phil Capron are mentors for The Michael Blank Investor Incubator, Josh Thomas handles our mentoring program strategy calls, and Drew Kniffin and Garrett Lynch serve as President and Director of Acquisitions, respectively, at Nighthawk Equity, the investing arm of The Michael Blank organization. All seven are full-time multifamily investors themselves with a background in working with new real estate investors.

On this episode of Apartment Building Investing, I’m sharing the panel discussion we had last year at Deal Maker Live around what’s working now to get deals under contract. We discuss the greatest fears facing new multifamily investors and explain how we coach our mentoring students to get brokers to take them seriously. Listen in for insight on building your investor list to raise money for deals and learn how to leverage joint venturing to get into multifamily real estate.

Key Takeaways

The biggest fears facing new multifamily investors

  • Self-confidence (work on inner game first)
  • Won’t be able to raise money
  • Won’t be taken seriously

How to get brokers to take you seriously

  • Analyze deals on broker sites
  • Be specific re: your criteria
  • Send feedback within 48 hours
  • Travel to meet face-to-face

The hierarchy of quality in multifamily deals

  1. Direct off-market from seller (rare)
  2. Broker first look
  3. Broker’s website
  4. LoopNet

Our mentoring team’s advice on raising money

  • Build investor list around existing contacts
  • Have conversations BEFORE need capital
  • Give talk on multifamily at Meetups
  • Leverage partnering or joint venturing

Connect with Michael’s Mentoring Team

The Michael Blank Investor Incubator

Deal Maker Live

Resources

Syndicated Deal Analyzer

Nighthawk Equity

The Michael Blank Deal Desk

Anthony Metzger on ABI EP196

LoopNet

David Kamara on ABI EP182

Meetup

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

Direct download: ABI_199.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Is fear stopping you from doing your first multifamily real estate deal? If you’re not the type of person to simply jump ship from the relative safety (and health insurance) that comes with a W-2 job, but you know you can’t spend the rest of your life on the hamster wheel, then NOW is the time to activate what Craig Schumacher, MAI, calls ‘calculated courage.’

Craig Schumacher, MAI is the Managing Member at IRV Capital LLC, a real estate investment firm that focuses on multifamily and student apartments. Craig spent 25 years working as a commercial appraiser and valuation specialist. Four years ago, he decided to stop helping other people make a fortune in real estate and build a portfolio of his own. Craig closed on his first syndication deal in January, bringing him to a total of 89-units (with another 28 under contract).

On this episode of Apartment Building Investing, Craig joins me to explain how he recently quit his job as an appraiser to pursue multifamily investing full time. He describes the AHA moment that inspired him to take action in 2016 and walks us through the key lessons learned from his difficult first deal. Listen in to understand what Craig would tell his younger self about getting started in real estate investing and learn what he is doing now to scale his multifamily portfolio!

Key Takeaways

Craig’s transition from appraising real estate to investing

  • Biggest hurdle = solving health insurance issue
  • Took time to enact plan but never been happier

What inspired Craig to make a change

  • Shocking self-assessment at age 45
  • Not in position to put kids through college + retire

How Craig got started with real estate investing

  • Bought 5 condos + 2 duplexes (university housing)
  • Gain experience as landlord, bank relationships

Craig’s rocky transition to multifamily

  • Sold university rental portfolio to buy 28-unit
  • $20K out of pocket for foundation issues
  • Challenges around self-managing property

Craig’s key lessons learned from his first deal

  • Deeper level of due diligence re: leak disclaimer
  • Include nearby complexes in evaluation

Craig’s highly successful second multifamily deal

  • 29 units next to Illinois State University
  • Convert to student housing ($17K to $25K/month)
  • Cash-out refi to return 100% of investor cash

Why sellers and brokers took Craig seriously

  • Some credibility from SFH portfolio
  • Decades of experience as appraiser

What Craig would do differently in retrospect

  • Push past fear to take big shot sooner
  • Cultivate ‘calculated courage’

How Craig made time for multifamily

  • Dedicate every free moment to investing
  • 14-hour days for 4 years, supportive spouse

How Craig overcame his fears around raising capital

  • Start with friends, family and friends of friends
  • Gets easier every time as share enthusiasm

Craig’s plan for scaling his multifamily portfolio

  • Expand network via podcasts, conferences
  • Build platform by sharing content online

Craig’s advice for aspiring multifamily investors

  • Partner with experienced investor
  • Add action to make ideas real

Connect with Craig Schumacher, MAI

IRV Capital

Craig on LinkedIn

Resources

Rich Dad Poor Dad by Robert T. Kiyosaki

CoStar

Real Estate Guys Create Your Future Goal Setting Retreat

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

Join the Nighthawk Equity Investor Club

Michael’s Mentoring Program

Partner with Michael

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

Direct download: ABI_198.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Think you need to be a Lone Wolf on your first multifamily deal? Brian Briscoe was looking at 6- and 8-unit multifamily deals until he realized he could go bigger, faster if he had help. And he was right. Brian joined the Michael Blank network, and 11 months later, he had joint ventured on a 55-unit deal and had another 33 under contract! His team is looking to add another 500 units to their portfolio in 2020.

Today, Brian is the Director of Operations at Four Oaks Capital, a multifamily investment firm specializing in the acquisition, repositioning and rebranding of apartment buildings via a private equity fund structure. Since joining forces in June of 2019, his team of four has acquired 88 units and has another 80 under contract. Brian also serves as the Western Hemisphere Affairs Officer for the United States Marine Corps.

On this episode of Apartment Building Investing, Brian joins me to explain how he found his current partners through our network and discuss how they did three deals in 15 short months! He shares how Four Oaks Capital found its first deal and what they did to overcome a major hurdle (with help from an experienced mentor) just nine days before closing. Listen in for insight into how Brian and his partners have defined their individual roles in the company and learn how YOU can leverage joint venturing to accelerate your multifamily success.

Key Takeaways

What inspired Brian’s interest in multifamily

  • Read Keller’s book when deployed in Middle East
  • Started consuming multifamily podcasts + books
  • Became part of Michael Blank network

The timeline around Brian’s first three deals

  • 11 months to close on 55-unit
  • Closed on 33-unit last week
  • 80-unit under contract now

How Brian built credibility with brokers

  • Trip to South Carolina to meet face-to-face
  • Persistent follow-up (action + communication)

Four Oaks Capital’s first 55-unit deal in Spartanburg, SC

  • Two properties in good condition but dated
  • Downtown units well below market rent

The snag Brian’s team faced in closing their first deal

  • Rates on loans went from 3.9% to 5.1% (lost $600K in proceeds)
  • Bump equity from 75% to 90% to compensate investors

The role mentors played in Brian’s first deal

  • Guidance prior to putting in offer
  • Offered idea to move needle on investor returns

Four Oak’s Capital’s second deal

  • Result of follow-up with broker met on trip to SC
  • 33-unit diamond in the rough at unbeatable price
  • Plan to double value via $400K in renovations

Brian’s insight around The Law of the First Deal

  • Brokers call with off-market deals
  • Three deals in 15 months

How Brian’s partners defined their individual roles

  • Acquisitions, asset management and raise money
  • Fluid based on current needs

Four Oaks Capital’s plans to scale

  • Constrained by how much money can raise
  • Build platform (YouTube, social and podcast)
  • Attend and start own Meetups

What facilitated Brian’s mindset shift

  • Conversations with investors in network
  • Finite amount of time to replace income

Brian’s advice for aspiring multifamily investors

  • Learn game + get really good at it
  • Take action and don’t stop
  • Find people to support you

Connect with Brian Briscoe

Four Oaks Capital

Email brianbriscoe@fouroakscapital.com

Resources

Deal Maker Mastermind

Rich Dad Poor Dad by Robert T. Kiyosaki

The Millionaire Real Estate Investor by Gary Keller, Dave Jenks and Jay Papasan

Joe Fairless Podcast

Rod Khleif Podcast

Deal Maker Live

Michael’s Mentoring Program

Michael’s Platform Building Webinar

Join the Nighthawk Equity Investor Club

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

Direct download: ABI_197.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

So, you don’t have real estate investing experience. And you don’t have any money of your own to invest. What if I told you that in two short years, you could be closing on your first deal of 200-plus units? That you could be fielding calls from brokers at Marcus & Millichap? That you could be building your own multifamily brand?

Anthony Metzger spent 10 years in the wine industry, working as a sommelier and winemaker in the US and Europe before setting his sights on multifamily real estate. After his brother introduced him to The Ultimate Guide to Apartment Building Investing at the end of 2017, Anthony got busy underwriting deals and reaching out to brokers. Two short years later (in a joint venture with Nighthawk Equity), Anthony has closed on his first deal, a 218-unit multifamily property in Little Rock, Arkansas.

On this episode of Apartment Building Investing, Anthony joins me to share what inspired his interest in multifamily and walk us through the experience of doing his first deal. He explains how learning the language of real estate gave him credibility with brokers and how consistent practice analyzing deals and talking to brokers built his confidence. Listen in to understand how the Nighthawk Equity team supported Anthony in the buyer’s interview and learn how to align yourself with a lead sponsor to do YOUR first multifamily deal.

Key Takeaways

What inspired Anthony’s interest in multifamily

  • Listening to Grant Cardone and Robert Kiyosaki
  • Always been entrepreneur, hungry for project

Anthony’s initial real estate goal

  • Partner with Nighthawk Equity to do first deal
  • Didn’t want to raise money until experienced

How things changed for Anthony once his first deal closed

  • Taking calls from Marcus & Millichap
  • Brokers approach with off-market deals

How Anthony got brokers to take him seriously

  • Learned language of investing from Ultimate Guide
  • Genuine in building relationships with brokers

Anthony’s advice on demonstrating confidence with brokers

  • Prepare with script based on underwriting
  • Practice on ‘throw away market’

Anthony’s interaction with the broker on his first deal

  • Several calls to discuss deal + ask questions
  • Spitball ballpark number, asked to draft LOI

The ideal time to bring on a joint venture partner

  • After verbal agreement but before signed LOI
  • Support in buyer’s interview, include JV terms

What to expect from a buyer’s interview

  • Seller talks to everyone who made offers
  • Choose person most likely to close deal

Anthony’s approach to aligning with a lead sponsor

  • Build relationship at events, bring deals
  • Respect time by adding value (inside track)

What’s next for Anthony

  • Do second deal
  • Build own multifamily brand

Anthony’s advice for aspiring multifamily investors

  • Learn to underwrite + practice making offers
  • Network to build relationship with sponsor

Connect with Anthony Metzger

Email anthony.metzger@yahoo.com

Resources

Michael’s Free First Deal Training

Anthony’s Wine Documentary: The Pink Grape

Grant Cardone

Robert Kiyosaki

Michael’s Ultimate Guide to Apartment Building Investing

Michael’s Syndicated Deal Analyzer

Michael’s Deal Desk

Nighthawk Equity

Michael’s Deal Maker Mastermind

Deal Maker Live

Michael’s Mentoring 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

Direct download: ABI_196.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Most of us dream of retirement because we’ll FINALLY have the time freedom to do things that interest us and spend time with the people we love. But what if you didn’t have to wait until you turned 65 to live that dream? What if you could retire early? Better yet, what if you could retire in the next few years? Passive investing in multifamily syndications helped Travis Watts do just that, and you could be next!

Travis is an experienced passive investor and Director of Investor Relations at Ashcroft Capital, a national multifamily investment firm with more than $820M in assets under management. Prior to pursuing real estate full-time, Travis worked a grueling job in the oil industry, spending 14-hour days outside in extreme weather while saving money to invest in single-family rentals and apartment building syndications.

On this episode of Apartment Building Investing, Travis joins me to discuss the time freedom he enjoys now as a passive investor in multifamily real estate. He explains how he saved the money to invest via extreme budgeting and what made SFH investing unsustainable. Listen in for Travis’ insight around where to find a good syndication team and learn how YOU can follow in his footsteps and quit your W-2 with passive investing!

Key Takeaways

Travis’ path to full-time passive investing

  • Demanding job in oil industry
  • Laid off in oil downturn but already financially independent

How Travis’ life is different now

  • Unhappy as W-2 employee, everyday struggle
  • Now pursues things interested in (personal growth)

How Travis saved money to invest

  • Brought up with conservative parents, extreme budgeters
  • Didn’t change lifestyle as income grew from $20K to six figures

How Travis invested his money before multifamily

  • Pulled money from stock market after Rich Dad’s Prophecy
  • House hacking strategy (first-time home buyer tax credit)
  • Sought high-paying job to continue buying SFH
  • Buy-and-hold, fix-and-flip as well as vacation rentals

What inspired Travis’ transition to multifamily

  • SFH strategies had become job on top of W-2
  • Single-family not scalable, sustainable or passive

The FIRE movement 4% rule

  • Passive income goal x 25 = amount to invest
  • EX: 30K x 25 = $750K investment

What kind of income you can generate as a passive investor

  • 7% to 10% cashflow
  • Equity upside upon sale or refinance

Travis’ insight on the tax benefits of multifamily

  • Use bonus depreciation for tax-free distributions
  • Capital gains upon sale (usually offset by gains)

The beauty of the infinite return model

  • Refinance after 5 years to return most of capital
  • Continue to earn returns, no money in deal

Travis’ top investing AHA moments

Travis’ advice for aspiring passive investors

  1. Start with WHY
  2. Create a budget (know where money going)

How to vet a syndication team

  • Ensure strategy aligns with personal philosophy
  • Track record, markets you believe in

Where to find a good syndication team

  • Go to seminars and local meetups for networking
  • Start with world-of-mouth referral, follow up with due diligence

Connect with Travis Watts

Ashcroft Capital

Email travis@ashcroftcapital.com

Travis on LinkedIn

Travis on Facebook

Resources

Spencer Hilligoss on ABI EP186

Jan Larson on ABI EP181

Ryan McKenna on ABI EP174

Rich Dad’s Prophecy: Why the Biggest Stock Market Crash in History Is Still Coming … And How You Can Prepare Yourself and Profit from It! by Robert T. Kiyosaki

The FIRE Movement

Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes by Tom Wheelwright

Work with Tom Wheelwright

Join the Nighthawk Equity Investor Club

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

Direct download: ABI_195.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

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