Financial Freedom with Real Estate Investing

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

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