Apartment Building Investing with Michael Blank Podcast

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

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