Financial Freedom with Real Estate Investing

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

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