Apartment Building Investing with Michael Blank Podcast

It’s easy to talk yourself out of your first multifamily deal. Working through obstacle after obstacle alone wears on a first-time syndicator, and you feel like giving up. But if you partner with another investor, you don’t want to let each other down. And you push through adversity, showing up with a kind of tenacity you may not have had on your own. 

Gary Van Bortel and John Bilinski are the syndication team behind ROC Capital Group, a multifamily investment firm out of Rochester, New York. Gary and John have 30 years of investing experience between them, building individual portfolios of single family and small multifamily properties before partnering on their first apartment syndication in 2020, a $1M raise for 48-unit deal in Syracuse. Gary and John are also the organizers of the Upstate Commercial Apartment Investors Meetup.

On this episode of Apartment Building Investing, Gary and John join cohost Garrett Lynch and me to explain why they decided to work together, describing how a partnership motivates you to keep moving forward—even when a deal gets hairy. Gary and John discuss how they connected with potential investors through a local Meetup and share how they got investors to commit to their first deal. Listen in for insight on pushing through when things don’t go according to plan (I’m looking at you, COVID) and learn to leverage a strong partnership to work through obstacles together. 

Key Takeaways 

How Gary got into real estate

  • Bought duplex as first house
  • Potential for living cost-free

How John got into real estate

  • Looking for passive income
  • Renovate and rent homes

What inspired Gary and John’s shift to multifamily

  • Learn about syndication on podcast
  • Ability to scale fast resonated with both 

Why Gary and John decided to partner

  • Bring complementary strengths to table
  • Harder to talk self out of deal, give up

How Gary and John primed investors

  • Formed local multifamily Meetup group
  • Presentations on aspects of syndication

How Gary and John found their first deal

  • Deal for large portfolio through broker
  • Buyer willing to sell individual property

What made Gary and John’s first deal a challenge

  • Owner being indicted
  • Hard to get title insurance

Gary and John’s journey to raising $1M

  • Nervous at closing, far from goal 
  • Met with potential investors 1:1

How Gary and John got investors on board 

  • Own skin in game but not taking return
  • Willing to show property despite risk

The obstacles Gary and John faced with COVID

  • Property manager unable to go onsite
  • Asbestos issue meant displacing tenants

Gary and John’s advice for aspiring syndicators

  • Build community of potential investors
  • Get educated on logistics, partner up

Connect with Gary Van Bortel & John Bilinski

ROC Capital Group

Upstate Commercial Apartment Investor Group Meetup

Email gary@roccapitalgroup.com

Email john@roccapitalgroup.com

Resources

Register for Deal Maker Live

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

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

Download Michael’s Free eBook: The Secret to Raising Money for Your First Apartment Building

REIA

Meetup

Podcast Show Notes 

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: ABI_270.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

COVID decimated the hotel industry, bringing property values down significantly. And savvy multifamily investors are buying distressed hotels on the cheap and converting them into apartment buildings. But what are the pros and cons of this strategy? 

Serge Shukhat serves as Principal at Zona Capital, LLC, a real estate investment firm that specializes in acquiring value-add multifamily and mobile home park assets. Serge spent 13 years as a corporate warrior before leaving his W-2 in 2012 with the cashflow from 70 single family rentals. Then he shifted his focus to multifamily and now owns a portfolio of more than 1,000 units. And in the last two years, Serge has developed an innovative strategy for repositioning hotels as multifamily properties.

On this episode of Apartment Building Investing, Serge joins cohost Garrett Lynch and me to share his approach to converting hotels into apartment buildings. Serge explains why he operates the units as Airbnbs to start and leases them up gradually and describes the challenges of running this kind of hybrid property. Listen in for Serge’s insight on the barriers to entry for repositioning hotels and learn how YOU can benefit from acting on this unconventional multifamily play!

Key Takeaways

How Serge got involved in real estate

  • Searching for way out of corporate job
  • Started buying single family during recession

How Serge analyzes price per door

  • What other investors are buying at
  • Rebuild cost in market

What inspired Serge to reposition hotels as multifamily

  • Hotels cheaper than multifamily properties
  • No competition on deals

Serge’s first hotel-to-apartment conversion

  • 70-unit with kitchens, easy market for permitting
  • Bought with re-trade due to COVID at 15% off

Serge’s Airbnb bridge strategy

  • Operate units as STRs to start, lease up slowly
  • Provides immediate cashflow

What makes Serge’s STR bridge strategy work 

  • On-site team manages Airbnb units
  • Property operates at maximum efficiency

The challenges of hotel-to-multifamily conversions

  • Permitting and zoning
  • Takes property manager outside comfort zone

Why Serge is conflicted about shifting to full multifamily

  • Cashflow of Airbnb units = 3X long-term lease
  • STR-multifamily hybrid makes exit harder

Connect with Serge Shukhat

Serge on BiggerPockets

Serge on LinkedIn

Resources

Register for Deal Maker Live

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Download Michael’s Free eBook: The Secret to Raising Money for Your First Apartment Building

Garrett on The Real Estate Syndication Show with Whitney Sewell

Podcast Show Notes 

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: ABI_269.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

I used to dismiss mindset as the key to success. But I’ve since come to understand that until you get your head straight, you won’t take action. So, what mindset shifts do you need to make to become a successful multifamily investor?

On this solo episode of Apartment Building Investing, I walk you through the 6 seismic shifts it takes to quit your job with real estate, challenging you to clear on WHY you want financial freedom and develop a strong belief in yourself and the system you’re following. 

I explain why you have to accept that you don’t know everything and take consistent action over time to see results. Listen in for insight on playing the long game and learn the benefits of partnering with others to scale a successful syndication business!

Key Takeaways 

Seismic Shift #1—Clarity 

  • Get clear on what you want, why you want it
  • Develop through morning routine

Seismic Shift #2—Belief

  • Believe in yourself, higher power and system
  • Build through affirmations and visualization

Seismic Shift #3—Surrender 

  • Give up portion of ego to be COACHABLE
  • Network with advisor or hire mentor

Seismic Shift #4—Consistency 

  • Tiny action every day yields results
  • Analyze deals + meet investors = first deal

Seismic Shift #5—Play the long game 

  • Don’t look for instant gratification
  • Seek permanent change and leave legacy

Seismic Shift #6—Be open to working with others 

  • Partner on single deal for limited downside
  • Scale faster, focus on what YOU like to do

Resources

Register for Deal Maker Live

Access Michael’s Free Blueprint to Your First Multifamily Deal Training

Learn More About Michael’s Mentoring Program

Watch the Replay of Michael’s Platform Builders Masterclass

Rich Dad Poor Dad by Robert T. Kiyosaki

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

Grant Cardone on The School of Greatness EP497

Podcast Show Notes 

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: ABI_268.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

After interviewing 100 of the top real estate investors, Steven Pesavento realized that mindset really is the foundation of investing success. So, how do the most successful investors and entrepreneurs think differently? And how can you apply these same principles to your investing efforts and achieve real-world success?

Steven is the President and Trusted Advisor at VonFinch Capital, a real estate firm out of Denver, Colorado, that focuses on curating hassle-free passive investments. He flipped 200 houses in three years before transitioning to multifamily in 2020. Steven is also the host of The Investor Mindset Podcast and the author of Principles of Success: Lessons from Top Real Estate Investors

On this episode of Apartment Building Investing, Steven joins cohost Garrett Lynch and me to share his five success principles of top real estate investors and explain why mindset is so important to investing success. Steven describes what inspired his shift from flipping houses to multifamily and what steps he took to make the transition to commercial real estate. Listen in for Steven’s insight on what it looks like to have your mindset tested and learn to apply his success principles in the real world of real estate investing!

Key Takeaways 

What inspired Steven’s shift from flipping to multifamily

  • Unable to scale (even with high volume)
  • Benefits of securing long-term debt

What steps Steven took to transition to commercial real estate

  • Find successful investors to learn from or partner with
  • Study different asset classes and determine best fi

Why Steven decided multifamily was the right asset class

  • Similarities between residential and multifamily 
  • Alignment with values makes it easier to focus
  • Ideal clients asking for longer-term investments
  • Historically most stable asset class in real estate

Why mindset is important to investing success

  • Thoughts lead to actions which generate results
  • Must believe it’s possible to succeed

Steven’s 5 success principles of top real estate investors

  1. View challenges as opportunities
  2. Ultra-focused on doing 1 thing really well
  3. Super-clear on what they want
  4. Know their purpose
  5. Work with great mentors and coaches

How to apply the 5 success principles in real-world investing

  • Recognize that mindset = code your mind runs on
  • Sit down with pen and paper to get clear on goals
  • Check in on consistent basis to replace old beliefs

Steven’s experience with having his mindset tested

  • First multifamily deal under contract (March 2020)
  • Litigious LP asked for $800K more just before close
  • Money wrapped up in deal, still under contract

Connect with Steven Pesavento

The Investor Mindset

The Investor Mindset Podcast

Investor Mindset on Facebook

Steven on Facebook

Steven on LinkedIn

Steven on Instagram

Steven on Twitter

Resources

Join the Nighthawk Equity Investor Club

Register for Deal Maker Live

Learn More About Michael’s Mentoring Program

Download Michael’s Free eBook: The Secret to Raising Money for Your First Apartment Building

Principles of Success: Lessons from Top Real Estate Investors by Steven Pesavento

VonFinch Capital

Never Split the Difference: Negotiating as If Your Life Depended On It by Chris Voss and Tahl Raz

Joe Fairless

Michael on The Investor Mindset Podcast EP075

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

The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss by Ken McElroy

Start with Why: How Great Leaders Inspire Everyone to Take Action by Simon Sinek

Podcast Show Notes 

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: ABI_267.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

A lifestyle investor doesn’t trade time for money. They buy cashflowing assets that replace their W-2 income and go on to build a life around what matters most—focusing on their family, their passions and their purpose. 

So, what steps can YOU take to become a financially independent lifestyle investor?

Justin Donald is the Founder of The Lifestyle Investor, a platform designed to help people use low-risk, cashflow investing to enjoy a life of passive income NOW. He leveraged real estate to grow his net worth to eight figures in less than two years, and he shares the blueprint in The Lifestyle Investor: The 10 Commandments of Cashflow Investing for Passive Income and Financial Freedom. Justin also serves as the host of the Lifestyle Investor Podcast.

On this episode of Apartment Building Investing, Justin joins cohost Garrett Lynch and me to discuss the steps he took to replace his lifestyle income and create a life of his own design. Justin explains how he got his start investing in mobile home parks and walks us through his first three commandments for investing in income-producing assets. Listen in for insight on Justin’s mission to help investors buy our time back, achieve financial freedom and pursue a purposeful, inspiring life!

Key Takeaways 

What Justin covers in The Lifestyle Investor

  • 10 criteria for how he invests for cashflow
  • Buy time with income-producing assets

The steps to becoming a lifestyle investor

  • Connect with other people on similar path
  • Find mentors who’ve done what you want

How Justin defines a lifestyle investor

  • Leverage assets that produce cashflow
  • Create intentional life of own design

How Justin got into real estate investing

  • Replace income with mobile home parks
  • Diversify with other kinds of investments

Justin’s first 3 commandments of lifestyle investing

  1. Lifestyle first (create freedom vision)
  2. Reduce risk
  3. Find invisible deals

What investors learn in Justin’s mastermind

  • Evaluate deals, advice from community
  • Access to deal flow and tax strategy

The danger of herd mentality investing

  • Listen to people with proven track record
  • Do your own due diligence 

Justin’s advice on finding income amplifiers

  • Don’ be afraid to negotiate different terms
  • Way deal shows up not how has to end

How long it took Justin to achieve financial freedom

  • 2 years to cover family’s basic expenses
  • 3 years to cover lifestyle income ($12K/mo)

What Justin wants his legacy to be

  • Help people live life desire TODAY
  • Show plan for how to get there

Connect with Justin Donald

The Lifestyle Investor

Lifestyle Investor Podcast

The Lifestyle Investor: The 10 Commandments of Cashflow Investing for Passive Income and Financial Freedom by Justin Donald

Lifestyle Investor Mastermind

Lifestyle Investor Coaching

Resources

Register for Deal Maker Live

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Robert Kiyosaki

Tony Robbins

Love Justice International

Michael on Lifestyle Investor EP028

Podcast Show Notes 

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

 

Direct download: ABI_266.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

The beauty of multifamily investing is that you don’t do it alone. If you’re just getting started, you can bring a deal to an experienced operator. And once you’ve built a network of your own, you can flip the script and cosponsor deals with up-and-coming syndicators, leveraging your relationships to raise money for deals and scale your business faster!

Philippe Schulligen is the Founder of Five Five Five Ventures, a firm dedicated to helping professionals navigate multifamily real estate investments. Philippe is the co-owner of 1,450 multifamily units worth $70M, and he has raised $22M in capital from investors. Philippe spent 20 years in corporate aviation before quitting his 9-to-5 for real estate, and he also serves as a mentor for The Michael Blank organization.

On this episode of Apartment Building Investing, Philippe joins cohost Garrett Lynch and me to explain how he got his start in multifamily by partnering with an experienced operator. Philippe describes how building relationships with a network allowed him to scale faster and shift from finding deals to becoming a cosponsor and capital raiser. Listen in as Philippe gets real about what he learned when an equity partner bailed on a big deal at the last minute and find out how to start building YOUR multifamily network with the help of a mentor like Philippe!

Key Takeaways  

How Philippe got into real estate

  • Looking for additional stream of income
  • Started with single family turnkeys

Why Philippe pivoted to multifamily

  • Vacancies big problem with small portfolio
  • Hard to scale single family business

Philippe’s approach to multifamily investing

  • Partner with experienced operator
  • Get educated through Deal Maker Blueprint 

Philippe’s first 2 multifamily deals

  • 80-unit in Memphis, found on LoopNet
  • Broker call re: 168-unit on day of close

What surprised Philippe most about multifamily

  • Networking led to cosponsoring deals
  • Relationships allow you to scale faster

What gave Philippe the confidence to make his first offer 

  • Act AS IF Nighthawk had already said YES
  • Understood quality of deal bringing to table

Philippe’s advice on becoming a successful cosponsor

  • Offer to help other operators with due diligence
  • Support by sharing network of investors

How Philippe identifies potential JV partners

  • Ask what working on and if need any help
  • Prerequisite = senior partner in common

What Philippe learned from a big deal that fell through

  • Always have backup plan
  • Don’t be first in network to try equity partner

What inspired Philippe to become a mentor

  • Corporate aviation industry suffered in COVID
  • Happy to share experience with others

Connect with Philippe Schulligen

Five Five Five Ventures

Email philippe@555ventures.com

Philippe on The Michael Blank Mentorship Team

Resources

Register for Deal Maker Live

Learn More About Michael’s Mentoring Program

Purchase Michael’s Syndicated Deal Analyzer

Access Michael’s Deal Maker Certification Training

Partner with Michael Through the Deal Desk

Download Michael’s Free eBook The Secret to Raising Money to Buy Your First Apartment Building

Join the Nighthawk Equity Investor Club

BiggerPockets

Gino Wickman on Apartment Building Investing EP243

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

Traction: Get a Grip on Your Business by Gino Wickman

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

LoopNet

Podcast Show Notes 

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: ABI_265.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

You take that promotion at work because you want to provide better for your family. But then you’re working MORE hours and seeing even LESS of the people you love. So, what if you could stop trading time for money? 

What if you didn’t have to decide between realizing big dreams for your family and spending quality time with them?

Lee Yoder is the Founder and Managing Partner of Threefold Real Estate Investing, a multifamily investing firm based in Lebanon, Ohio. Lee was working as a physical therapist when he started investing in real estate, and by December of 2020, he quit his job as a physical therapist to be a full-time investor. Lee also hosts the Threefold Real Estate Investing Podcast, a show that focuses on leveraging multifamily investing to enjoy a stronger relationship with your family and a better walk with Christ.

On this episode of Apartment Building Investing, Lee joins cohost Garrett Lynch and me to explain how his faith and family inspired him to pursue real estate. He describes how he gained confidence by analyzing hundreds of deals and attracted the help of a mentor to guide him through his first multifamily closing. Listen in for Lee’s take on why the Law of the First Deal works and learn how he is enjoying the flexibility to work when and where he wants as a full-time investor!

Key Takeaways 

What inspired Lee to pursue real estate

  • Time freedom to be more present at home
  • Coworker offered copy of Rich Dad…

Why Lee took a 30% pay cut to make time for real estate

  • Faith and family are top priorities
  • Long-term plan to bring in passive income

How Lee talked his wife into ‘the real estate thing’

  • Time + believable behavior = trust
  • Forced him to slow down, think through choices

How Lee shifted into the multifamily space

  • Join local REIA to connect with investors
  • Learn to underwrite in Apartment Focus Group

How Lee attracted the support of a mentor

  • Coachable and willing to do the work
  • Lead with value to get foot in door

How Lee landed his first multifamily deal

  • Practice underwriting to gain confidence
  • Submitted offer on deal on LoopNet

Lee’s approach to his first multifamily deal

  • Jump and build parachute on way down
  • Lean on mentor to make it less dangerous

How Lee raised money for his first few multifamily deals

  • JV with friends and family on 16-, 8- and 10-unit
  • 45-unit deal = first syndication

How Lee led a syndication without a track record

  • Reputation of integrity, success in flipping
  • Network with local investors in REIA 

Lee’s take on why the Law of the First Deal works

  • Personal confidence in team, lending process
  • Brokers take you seriously

How Lee decided when to quit his full-time job

  • Replace W-2 income with rental income
  • Equity from sale of first 2 deals afforded runway

Lee’s top lesson learned in real estate

  • Build occupied units into rehab budget
  • Consider deferred maintenance costs

How Lee’s life is different now

  • Mid-week morning coffee date with wife
  • Flexibility to work where, when he wants

Connect with Lee Yoder

Threefold Real Estate Investing

Threefold Real Estate Investing Podcast

Lee’s Free eBook: 5 Steps to Passive Income for the Full-Time Dad

Email info@threefoldrei.com

Resources

Register for Deal Maker Live

Learn More About Michael’s Mentoring Program

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

Join the Nighthawk Equity Investor Club

Purchase Michael’s Syndicated Deal Analyzer

Rich Dad Poor Dad by Robert T. Kiyosaki

REIA

LoopNet

BiggerPockets

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_264.mp3
Category:general -- posted at: 1:00am EDT

It’s overwhelming to think through how many doors you need to quit your job with real estate. But what if I told you that all you really have to do is get one multifamily deal under your belt?

Over and over again, I’ve observed that once an investor closes on their first deal, they achieve financial freedom very quickly—and with little effort. So, how does that work?

On this episode of Apartment Building Investing, I explain the curious Law of the First Deal, describing how your first deal triggers opportunities for second and third deals in rapid, automatic succession. I share my idea of a Time Freedom Clock, discussing the typical timeline for quitting your job with multifamily. Listen in to understand why the Law of the First Deal works and learn how our new Deal Maker Certification gets you ‘deal ready’ in just 90 days!

Key Takeaways

The phenomenon around the Law of the First Deal 

  • 1st deal hardest to get and takes average of 12 months
  • 2nd and 3rd deals follow in rapid, automatic succession

The idea around my Time to Freedom Clock

  • Starts when you DECIDE to get started with multifamily
  • 2 to 3 years away from quitting job with real estate

Why the Law of the First Deal works

  1. Start attracting brokers
  2. Become money magnet
  3. Expand comfort zone

How our new Deal Maker Certification gets you ‘deal ready’

  • Learn to find deals, raise money and build team
  • 90 days of daily tasks put new skills into action
  • Provides support with Deal Maker Mastermind

Resources

Financial Freedom with Real Estate Investing by Michael Blank

Explore Michael’s Deal Maker Certification Training

Download Michael’s Deal Maker Blueprint

Join the Deal Maker’s Mastermind

Learn More About Michael’s Mentoring Program

First Deal Stories

Financial Freedom Stories

The Deal Maker Certification on Apartment Building Investing EP262

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_263.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What if you could run a successful multifamily syndication business with other people’s money? And what if you could do it with no prior experience and achieve financial freedom in one to three years?

Here at the Michael Blank organization, we’ve helped 130-plus new investors do their first deal, using a step-by-step process we call the Deal Maker Blueprint.

On this solo episode of Apartment Building Investing, I walk you through the 8-step system to achieve financial freedom with multifamily syndications, explaining why it’s crucial to map your vision and connect with a network of likeminded peers early in your journey.

I describe how to get the skill set you need to speak to brokers and investors (in just 30 days!) and then work the system, analyzing deals and building your pipeline until you close your first deal. Listen in for insight on scaling a syndication business and learn how financial freedom leads to a life of significance!

Key Takeaways

How I respond to the common objections re: multifamily

  • You don’t need real estate experience
  • You don’t need any of your own money
  • Just focus on getting your first deal

The Deal Maker Blueprint Step #1—Map Your Vision

  • Calculate your freedom number
  • Develop AM routine (affirmations, visualization)

The Deal Maker Blueprint Step #2—Get Connected

  • Join support network, e.g.: mastermind
  • Recruit advisor to hold you accountable

The Deal Maker Blueprint Step #3—Get the Skills

  • Clarify size and location of first deal
  • Analyze 5 deals and create sample deal package
  • Recruit lender and property manager to team

The Deal Maker Blueprint Step #4—Work the System

  • Analyze deals
  • Talk to potential investors

The Deal Maker Blueprint Step #5—Build Your Pipeline

  • Stay committed to activity vs. outcome
  • Stick with it as long as it takes

The Deal Maker Blueprint Step #6—Close the Deal

  • Submit LOI and negotiate offer
  • Due diligence, secure financing and raise money

The Deal Maker Blueprint Step #7—Grow and Scale

  • Law of First Deal attracts more deals, investors
  • Build platform to market syndication business

The Deal Maker Blueprint Step #8—Make a Difference

  • Financial freedom unlocks your true purpose
  • Life of significance = help other people

Resources

Download Michael’s Deal Maker Blueprint

Join the Deal Maker’s Mastermind

Learn More About Michael’s Mentoring Program

Explore Michael’s Deal Maker Certification Training

Watch the Replay of Michael’s Platform Builders Masterclass

Financial Freedom with Real Estate Investing by Michael Blank

REIA

Mint

Financial Peace University

Affirmations on Apartment Building Investing EP247

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

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

The (6-Minute) Miracle Morning

Syndicated Deal Analyzer

Building a Platform on Apartment Building Investing EP237

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_262.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

If you can see it, you can be it. And as more female multifamily investors speak up about what they are doing, it gives other women permission to pursue real estate too. To that end, Elizabeth Faircloth is creating a community where women investors can get support the way they need it.

Elizabeth is the Cofounder of the DeRosa Group, a multifamily investing firm on a mission to transform lives through real estate. She and her husband Matt manage a portfolio of 1,000 units worth $60M up and down the east coast. Liz is also the Co-creator of The Real Estate InvestHER, a community that empowers women real estate investors to live a financially free and balanced life.

On this episode of Apartment Building Investing, Liz joins cohost Garrett Lynch and me to offer advice for couples on aligning their goals early on. She explains how to delineate roles in a real estate business partnership and why building community is so important. Listen in for Liz’s insight on increasing the number of women investors and learn how she features female role models through The Real Estate InvestHER platform.

Key Takeaways

How Liz got into real estate

  • Read Rich Dad… and introduced husband to idea
  • Invested in first duplex together 15 years ago

Liz’s advice for couples on aligning your goals

  • Have conversations about what you value
  • Attend personal growth weekends together

How to delineate roles in a business partnership

  • Consider individual skills and experience
  • Factor in passion and personality

Why it didn’t work the first time Liz left her W-2 for real estate

  • Market crashed and didn’t delineate roles correctly
  • Too many different strategies (lack of focus)

What inspired The Real Estate InvestHER community

  • Partnership with Andresa on deals, mastermind
  • Create safe space to support other women

How Liz scaled her community to 40 Meetup groups

  • Use Dan Hanford model, Meetup Pro account
  • Partner set up portal with agendas and scripts

Why building community is so important to Liz

  • Research on women (longevity, financial literacy)
  • Passion around empowering women to invest

Liz’s insight on the small number of women investors

  • Societal conditioning to fly under radar
  • Must highlight journeys, lift each other up

Liz’s role with the DeRosa Group

  • Assemble team, lead STR acquisitions
  • Oversee investor relations

Liz’s advice for aspiring multifamily investors

  • No overnight success, takes time and energy
  • Stay the course and don’t give up

Connect with Elizabeth Faircloth

DeRosa Group

DeRosa Group on YouTube

The Real Estate InvestHER

The Real Estate InvestHER Podcast

The Real Estate InvestHER Community on Facebook

Resources

Learn More About Deal Maker Live

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

The Only Woman in the Room: Knowledge and Inspiration from 20 Women Real Estate Investors compiled by Ashley L. Wilson

Elizabeth on BiggerPockets EP203

REIA

Rich Dad Poor Dad by Robert T. Kiyosaki

CASHFLOW Game

Awaken the Giant Within: How to Take Immediate Control of Your Mental, Emotional, Physical and Financial Destiny by Tony Robbins

Landmark Forum

Andresa Guidelli

Dan Hanford

Meetup Pro

Matt Faircloth on BiggerPockets

NMHC

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_261.mp3
Category:general -- posted at: 1:00am EDT

So, you want to be a multifamily investor, but… You’ve never done a deal before. You don’t feel comfortable approaching potential partners. The pandemic has shut down all of the usual networking events. And you live six time zones ahead of the market where you’d like to invest.

But what if all of these challenges are really just opportunities to grow?

Suzy Sevier and Michael Barnhart are the husband-and-wife team behind Adventurous Real Estate Investors, a multifamily firm dedicated to helping avid travelers and adventure seekers create passive income and time freedom through apartment building investing. Suzy and Michael got interested in real estate during the lockdown, and in nine months, they have attended 10 virtual events, booked 600 networking calls, put together an experienced team and built a portfolio of 88 units—without leaving their home in the UK!

On this episode of Apartment Building Investing, Suzy and Michael join cohost Garrett Lynch and me to share their genius system for turning virtual events into networking opportunities and following up with the people they meet. They explain why they built a thought leadership platform right away and describe what kind of educational content they create. Listen in for insight on how Suzy and Michael turn roadblocks into opportunities, making the best of the situation they’re in to make their dream of financial freedom a reality!

Key Takeaways

How Suzy & Michael got interested in real estate

  • Read Multiple Streams of Income during lockdown
  • Took advantage of time off to network

How to turn virtual events into networking opportunities

  • Take screenshot and follow up on LinkedIn
  • Hop on calls and track potential partners

How Suzy & Michael found virtual real estate events

  • Ask contacts about upcoming or favorite events
  • Intentional search through social media

Suzy & Michael’s system for following up with contacts

  • Ask about goals, send personalized follow-up email
  • Guide to online thought leadership platform

What kind of educational content Suzy & Michael create

  • Blog on mindset, market trends and investing
  • Promote on social and send monthly email

When Suzy & Michael found the time for investing

  • Work until 6pm UK time and then start networking
  • 20+ calls/week = 600 calls in last 9 months

The team of 6 Suzy & Michael created from networking

  • Partner to serve as boots on the ground in US
  • Capital raiser, KP and experienced syndicator

How Suzy & Michael got past their fears of networking

  • Remember that everyone starts in same place
  • Ask to host meetings for W-2 job as practice

What it’s like for Suzy & Michael to work together

  • Stepped on each other’s toes at first
  • Things improved after clearly defining roles

Why Suzy & Michael focused on content right away

  • Didn’t have deal, must prove selves different way
  • Mimic successful investors they aspire to be

Suzy & Michael’s advice for aspiring multifamily investors

  • Clearly define goals, get 1% better every day
  • Devote time to ALL aspects of business

Connect with Suzy Sevier & Michael Barnhart

Adventurous Real Estate Investors

Michael & Suzy’s Free Checklist

Resources

Partner with Michael Through the Deal Desk

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Explore Michael’s Platform Builders Framework

Learn More About Deal Maker Live

Multiple Streams of Income: How to Generate a Lifetime of Unlimited Wealth! by Robert G. Allen

BiggerPockets

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_260.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

When you have a high-paying corporate job, it can be tough to walk away. But if time freedom is a priority for you, and you’re willing to take action, you absolutely CAN break out of the rat race and replace your W-2 income with multifamily real estate.

Jenny Gou and Steven Louie are the Cofounders of Vertical Street Ventures, a multifamily investment firm dedicated to helping people achieve financial freedom through passive investing in real estate. Steve is an experienced multifamily investor with a portfolio of 2,500-plus units, and he recently quit his corporate job to focus on real estate full time. Jenny left the rat race early in 2020 with a portfolio of single-family homes, and since then, she has gone from zero to 800 multifamily units.

On this episode of Apartment Building Investing, Jenny and Steve join me to discuss how they broke out of corporate America, describing the mindset of action and focus on family that drove their decision to walk away. They explain how their respective backgrounds in sales benefit their real estate business, sharing how it gives them a competitive edge in sourcing opportunities. Listen in for insight on the different roles on a multifamily team and learn how to achieve scale by partnering with other investors.

Key Takeaways

How Steve & Jenny met and became partners

  • Steve met Jenny’s husband at local meetup
  • Similar values, shared background in sales

What made Steve a good mentor for Jenny

  • Track record of success in multifamily
  • Allowed to sit in on meetings

Why Steve agreed to partner with Jenny

  • Needed support on operations side
  • Respects Jenny’s ability to assess people

What appeals to Jenny about multifamily operations

  • Learn by doing to accelerate growth
  • Used to leading teams, managing projects

How Jenny benefits from being a full-time investor

  • Opportunity to learn quickly
  • Able to blow past goals

The roles on a multifamily real estate team

  • Acquisitions or business development
  • Asset management (execute business plan)
  • Underwriting
  • Investor relations

Why Steve & Jenny decided to partner NOW

  • Quit rat race to prioritize family
  • Scale portfolio to replace income

What inspired Steve to leave a good corporate gig

  • Mindset of action, right mentors
  • Tax advantages of real estate

How a sales background helps multifamily investors

  • Understand importance of relationships
  • Competitive edge in sourcing opportunities

What Steve & Jenny would tell their younger selves

  • House hack rather than buy first house
  • Don’t have to be landlord to be investor

Connect with Steven Louie & Jenny Gou

Vertical Street Ventures

Steven on LinkedIn

Jenny on LinkedIn

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Explore Michael’s Platform Builders Framework

Feedspot’s Top 40 Apartment Investing Podcasts

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

CASHFLOW Quadrant: Rich Dad’s Guide to Financial Freedom by Robert T. Kiyosaki

CBRE

ABI Multifamily

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_259.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Without the high-net-worth individuals who put money in our deals, we wouldn’t have a syndication business. And yet, most of us are terrible at showing our appreciation to the passive investors we work with. When a deal goes through, we send them a mug or hat with our logo on it and call it a day. But does that reflect what the relationship is actually worth to us? Is there a better way to do gifting?

John Ruhlin is the Cofounder of Giftology Group, a strategic gifting consultancy that helps sales leaders, business owners and executives unlock loyalty and turn clients into raving fans. He founded Giftology Group in college to market Cutco Cutlery as a high-end corporate gift to companies of all sizes, and today, John is the #1 distributor in Cutco’s 60-year history. John is also a sought-after keynote speaker and author of Giftology: The Art and Science of Using Gifts to Cut Through the Noise, Increase Referrals, and Strengthen Retention.

On this episode of Apartment Building Investing, John joins cohost Garrett Lynch to explain how he came to dominate the Cutco leaderboard using gifting to build relationships. He introduces us to the giftology system, describing how he leverages generosity to turn his best clients into salespeople and raving fans. Listen in for John’s insight on how much to allocate for gift-giving and learn how YOU can get a 10X return by investing in the people who make your business profitable.

Key Takeaways

How John came to dominate the Cutco leaderboard

  • Learned relationship-building from mentor Paul
  • Sent gifts to land meetings with big-time CEOs

John’s insight on the value of relationship-building

  • Make decisions emotionally, justify with logic
  • Gifting = mechanism for generating emotion

John’s concept of a return on relationship

  • Initial $7K investment in gift to Cameron Herold
  • $25K over 10 years = 50X return on relationship

The key ingredients of John’s giftology system

  • Include handwritten note, name family members
  • Personalize gift and be intentional about timing

What makes John’s giftology system work

  • Generates like, trust and keeps top-of-mind
  • People crave human-to-human relationship

How much a business should allocate toward gift-giving

  • Reinvest 5% to 15% of net profits in relationships
  • Invest in people already work with at some level

Why giftology requires a long-term commitment

  • Genuine generosity vs. manipulation tactic
  • Turn best clients into salespeople

John’s top examples of the benefits of giftology

  • Invited to appear on Gary Vaynerchuk show
  • 107% increase in referrals for John Bowen

Connect with John Ruhlin

Giftology Group

Download the Giftology System

Email john@giftologygroup.com

Resources

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

Giftology: The Art and Science of Using Gifts to Cut Through the Noise, Increase Referrals, and Strengthen Retention by John Ruhlin

Entrepreneurs’ Organization

Jab, Jab, Jab, Right Hook: How to Tell Your Story in a Noisy Social World by Gary Vaynerchuk

John on Marketing for the Now with Gary Vaynerchuk

Artifact Mug

The 5 Love Languages

Young Presidents’ Organization

Vistage

Books by Don Yaeger

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_258.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

There’s a lot of pressure on high school grads to go to college. Without a degree, the story goes, we can’t earn good money. But Cody Davis realized he didn’t need earned income if he could make passive income with real estate. And he didn’t let little things like being 19 years old and having no money or experience get in his way.

Cody is a broker with Blackwell Real Estate in Tacoma, Washington, and multifamily investor with a portfolio of 24 units. And he just turned 21. Cody dropped out of college to get his real estate license just two years ago, and since then, he’s closed on two 12-unit deals—without using any of his own money!

On this episode of Apartment Building Investing, Cody joins me to explain how he overcame the pressure to go to college and what inspired his mentor to take Cody on. He shares his unique approach to cold calling, discussing why sellers take him seriously despite his youth and how he’s building the skill of raising money. Listen in to understand how Cody used seller financing to do his first two deals and find out how he achieved financial freedom before he was old enough to buy a drink.

Key Takeaways

How Cody got interested in real estate

  • Family friend gifted Rich Dad Poor Dad
  • Make good money without college

How Cody overcame the pressure to fit in with friends

  • Don’t need degree if earning passive income
  • Partying = unnecessary distraction

How Cody found a mentor in Robert Slattery

  • DM re: real estate post on Facebook
  • All-in and willing to work for free

What Cody would have done without a mentor

  • Plan to house hack duplex
  • Work multiple jobs to qualify for loan

Why Cody is willing to broker deals for others

  • Didn’t qualify with banks early on (cash poor)
  • Learn from investors and their peer group

How Cody overcame the fear of cold calling

  • Predict worst-case scenarios
  • Gets easier with repetition

Cody’s first $1.1M 12-unit seller financing deal

  • Raise 10% down and partner with mentor
  • 30-year mortgage with no balloon

Why sellers take Cody seriously despite his age

  • Phone conversation before meet in person
  • Age irrelevant if know how to negotiate

Cody’s second $680K 12-unit seller financing deal

  • Value-add opportunity (off-market)
  • Promissory note for $120K down
  • $2K/month cashflow from day one

Cody’s experience with the Law of the First Deal

  • Earned credibility with investors
  • Build skill to raise equity for others in office

How sellers benefit from seller financing

  • Splits up tax liability over number of years
  • Income without headache of management

Cody’s advice for aspiring multifamily investors

  • Get good at numbers, learn Excel
  • Show how deal is win-win for everyone

Connect with Cody Davis

Cody on Instagram

Email cody@blackwellre.com

Resources

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

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

CASHFLOW Board Game

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

Be Obsessed or Be Average by Grant Cardone

Robert Slattery at Blackwell Real Estate

BiggerPockets Podcast

Gino Wickman on Apartment Building Investing EP243

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_257.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

When your WHY is big enough, you find a way. It doesn’t matter that you’re brand new to real estate investing. It doesn’t matter that you don’t have a college degree. And it doesn’t matter that you don’t have any money.

Sadhana Sabharwal is the real estate investor and coach behind Single Mom Millionaire and The No Money Down Academy training course. Sadhana was a recently-divorced, single mother of three boys when she got into real estate, and in four years, she built a portfolio of 46 doors. Sadhana’s focus is on buying, renovating and holding properties for positive cashflow, and she specializes in creative financing strategies that leverage other people’s money to buy real estate.

On this episode of Apartment Building Investing, Sadhana joins cohost Garrett Lynch and me to explain how a painful divorce inspired her real estate investing journey. She shares her approach to creative financing, describing how she funds deals with seller financing and why networking was so valuable in helping her learn the business. Listen in for insight on finding your WHY and learn how Sadhana’s positive mindset influences her success!

Key Takeaways

How Sadhana’s real estate investing journey began

  • Husband left her for another woman
  • Needed way to support three boys

How Sadhana got interested in real estate investing

  • Work as law clerk, introduced to investor
  • Invited to join small real estate club

How Sadhana funded her first deals with no money

  • Open line of credit against house
  • Home Depot card for renovations

Sadhana’s initial plan for real estate investing

  • Find ways to buy without using own money
  • Renovate, refinance and repeat process

How Sadhana overcame being female and a minority

  • Joint venture with experienced investor
  • Build trust with consistent networking

Sadhana’s advice on getting started with real estate

  • Make use of free resources (Google, YouTube)
  • Invest in real estate investing courses
  • Ask questions at networking events

Sadhana’s favorite creative financing techniques

  • BRRRR strategy
  • Seller financing

How Sadhana got over the fear of asking for help

  • Remember your WHY
  • No choice but to figure it out

What needs to happen to have more women investors

  • Give themselves more credit
  • Role models and strong WHY

The top lessons Sadhana learned from her divorce

  • Don’t make your life miserable making his hell
  • Being happy and grateful is your choice

Connect with Sadhana Sabharwal

Single Mom Millionaire

The No Money Down Academy

Resources

Join the Nighthawk Equity Investor Club

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_256.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

As a passive investors, we understand the importance of building a diverse portfolio. And while multifamily is the best investment on the planet, it doesn’t hurt to explore our options, especially when BIG opportunities present themselves. So, what are the opportunities in oil right now? And how do we choose a project that is likely to succeed?

Bob Burr is the driving force behind Burrite, an investment firm that focuses on the acquisition and consolidation of oil and gas properties. A 47-year veteran of oil and energy finance, Bob is dedicated to helping the industry bounce back from the COVID crisis by providing the bridge capital necessary to weather the current economic storm. Bob is currently raising money for the BR Dome property, a project that involves recompleting 247 existing wells with room for 200 more.

On this episode of Apartment Building Investing, Bob joins cohost Garrett Lynch and me to explain how he set himself up for buying opportunities when oil prices dropped and share the tax advantages of investing in oil. He walks us through the parallels between multifamily and oil, discussing the importance of putting together an experienced team that can identify and operate value-add projects. Listen in for Bob’s insight on why a passive investor should consider adding oil to their portfolio (even in the Biden era) and find out how YOU can get Bob’s Q&A video by shooting an email to admin@burrite.com.

Key Takeaways

Bob’s extensive background in the oil business

  • Started with brother in 1973
  • Funding projects through syndication

How Bob set himself up for buying opportunities in COVID

  • People leave business as price of oil went negative
  • Buy cashflowing wells and wait for cycle to go up

Bob’s BR Dome project in Houston

  • 247 existing wells with room for 200 more
  • Note offering with interest rate of 10% to 18%

What Bob does to attract and maintain a strong team

  • Take care of people in loving business culture
  • Make it rule to thank team every day

The lessons Bob has learned through many market cycles

  • Maintain integrity in relationship with partners
  • Weather storm, make $ when cycle comes back

Bob’s insight on buying undervalued assets

  • Pick cashflowing wells not being run efficiently
  • Reduce lifting cost to $3.50/barrel

How it works to invest in an oil project

  • Operator leases mineral rights from landowner
  • Operator and investors get 75% of net revenue

Why Bob is optimistic about oil in the Biden administration

  • Shutdown of fracking doesn’t impact his business
  • Still make good money at oil price of $25/barrel

The parallels between investing in oil and real estate

  • Make money by adding value with good operator
  • Tax advantages (write-off up to 90% passive loss)

Why a passive investor should add oil to their portfolio

  • 65% shot at making well from good prospect
  • BR Dome = 90% shot (cherry pick best spots)

How to learn more about investing in Bob’s oil projects

Connect with Bob Burr

Burrite

Email admin@burrite.com for a link to Bob’s Q&A Video

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Bob’s BR Dome Project

Brad Simmons at Burrite

Justin Burr at Burrite

Dale Carnegie

Ed Hirs at Burrite

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_255.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

In real estate school, they teach you that the money is made when you buy. But that just isn’t true for apartment buildings. Yes, you have to buy right. But in the multifamily space, the money is made in the execution of your plan to increase revenue and reduce expenses. And the asset manager is responsible for making sure that happens.

Daniel Simpson serves as Asset Manager at Nighthawk Equity, the investing arm of The Michael Blank organization. He has nearly 30 years of experience in multifamily, residential and commercial property management, developing an expertise in strategic business forecasting, budget allocation, complex data analysis and property financials. Daniel has an impressive track record of acquiring, renovating and repositioning C-class value-add properties in as little as 18 months.

On this episode of Apartment Building Investing, Daniel joins me to share his hands-on approach to asset management, describing what he does on his monthly site visits and how he helps property managers optimize revenue and reduce expenses. He walks us through the metrics he uses to identify property management issues and explains why all problems come down to people. Listen in for Daniel’s insight on the limited role property managers should play in construction projects and learn when you should consider hiring a full-time asset manager!

Key Takeaways

Daniel’s insight on the fundamentals of asset management

  • Ensure investors’ goals met, returns on target
  • Provide guidance to property managers

How often Daniel meets with property managers

  • Speak with regional manager once/week minimum
  • Unannounced visit to site managers once/month

When to take a hands-on approach with property managers

  1. High turnover rate
  2. Higher than normal vacancy rate
  3. Lack of success in leasing units
  4. Collection issues
  5. Move-outs not entered timely

Daniel’s take on why all problems come down to people

  • Tenants rent from STAFF vs. apartment itself
  • Asset manager’s job = find breakdown in system

What metrics Daniel watches closely as an asset manager

  1. Consistency in NOI
  2. Occupancy (physical and economic)
  3. Delinquency
  4. Live PNL
  5. Closing ratio

How to identify problems with property management

  • Look at comps and communicate that with staff
  • Secret shops to evaluate leasing staff’s performance

Daniel’s process for optimizing a multifamily business

  • Start with maximizing revenue (add $5 to $10/unit)
  • Minimize expenses next, reevaluate contracts

How Daniel thinks about managing expenses

  • Ask questions about potential overspending
  • Audit line items to keep property managers honest

What Daniel does on his monthly site visits to a property

  • Walk vacant units, talk with property manager
  • Visit with leasing agents and maintenance staff
  • Verify that move-in files match what’s in system

Why property managers should not handle construction

  • Distraction from filling units and collecting rent
  • Better to hire GC or specialist (local or in-house)

The role a property manager should play in construction

  • Go to early meetings, input on scope and timeline
  • Hand GC keys needed to carry out project

What an average syndicator can do if they can’t afford a GC

  • Use construction manager (part of management co)
  • Build 5% in budget for specialist to oversee project

When it’s time to hire an asset manager for your business

  • Depends on skill set of investors in joint venture
  • As soon as you can afford it

Connect with Daniel Simpson

Nighthawk Equity

Email daniel@nighthawkequity.com

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

CLASS Leasing

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_254_v2.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Yes, work ethic and taking action are key in becoming a successful real estate investor. But mindset is even more important. Before you can start working toward the life you want, you have to conquer middleclass thinking. You have to stop following the money and start making money follow YOU.

Keith Weinhold is the real estate educator, entrepreneur and investor behind Get Rich Education, a platform designed to help people achieve financial freedom through real estate investing. An active member of the Forbes Real Estate Council, Keith is known for his expertise around buy-and-hold real estate, and he transacts 100-plus properties per year. Keith is also a bestselling author and host of the wildly popular Get Rich Education Podcast, a show with more than 3M downloads in 188 countries.

On this episode of Apartment Building Investing, Keith joins cohost Garrett Lynch and I to explain why mindset is crucial in becoming a successful real estate investor, describing how to overcome middleclass thinking and make other people’s money work for you. He weighs in on why delayed gratification is overrated, challenging us to cultivate an abundance mentality and start living the life we want right now. Listen in for Keith’s insight on the ‘shadow demand’ in the housing market and learn why inflation is a good thing for YOU as a multifamily investor.

Key Takeaways

Why mindset is crucial in becoming a successful real estate investor

  • Don’t live below means but EXPAND means
  • Make outsized decisions to live outsized life

What inspired Keith to move to Alaska and invest in real estate

  • Go after what you want or you’ll never have it
  • Rather than following money, make money follow you

Why so many people settle and never take action to invest

  • Peer group reinforces doing safe thing
  • ‘To change yourself, change your five’

The first steps to improving your quality of life with real estate

  • Get honest about what you really want
  • Live beneath means vs. live well

The problem Keith sees with middle class thinking

  • Work for money and have little left to invest
  • Make money work for you (vs. other people’s money)

How real estate makes other people’s money work for you

  1. Tenant’s money for income
  2. Bank’s money for leverage
  3. Government money at scale

Why more people aren’t investing in real estate over Wall Street

  • Best product but worst marketing
  • Lack of financial education

Keith’s mission through the Get Rich Education platform

  • Financial freedom through real estate
  • Live better and give better (abundance mindset)

Why Keith thinks delayed gratification is overrated

  • Subpar quality of life until old enough to retire
  • 401(k) = life deferral plan

Why the property is the 4th most important thing in investing

  • Decide what want real estate to do for you FIRST
  • Carefully consider market and team of professionals

Keith’s short-term outlook on the real estate market

  • Strict criteria to qualify for eviction moratoriums
  • 95%+ rent collections

Keith’s insight on shadow demand in the real estate market

  • More household formation as economy recovers
  • Demand increase with population growth, immigration

The 3 ways inflation is good for real estate investors

  1. Price inflation
  2. Debt debasement
  3. Cashflow enhancement

Connect with Keith Weinhold

Get Rich Education

Get Rich Education Podcast

Resources

Learn More About Michael’s Mentoring Program

Keith on Apartment Building Investing EP034

Rich Dad

Jim Rohn

Ted Benna on Get Rich Education EP197

Pew Research Statistics on Young Adults Living with Parents

US Bureau of Labor Statistics Consumer Price Index

Keith’s Inflation Triple Crown Video

Keith’s Free eBook 7 Money Myths That Are Killing Your Wealth Potential

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_253.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Raising capital is at the heart of multifamily syndication. But how do you build relationships with prospective investors and make them feel comfortable enough to trust you with their hard-earned money?

David Meilan is the Director of Investor Relations at Nighthawk Equity, the investing arm of The Michael Blank organization. He has worked in the multifamily space since 2018, raising over $100M in investor capital for a range of commercial syndications. David excels at maintaining relationships with investors, and he is committed to helping people achieve financial freedom through passive investing in multifamily real estate.

On this episode of Apartment Building Investing, David joins me to discuss the importance of building relationships with investors and explain what he is doing to turn prospects into raving fans of Nighthawk Equity. He walks us through the steps of raising capital for a deal, describing how we make the process easy for investors and stay in communication after close. Listen in for David’s insight on producing content for potential investors and learn how to leverage strong investor relations to raise money for YOUR next multifamily deal!

Key Takeaways

How to turn prospective investors into raving fans

  • Provide great multifamily investment opportunities
  • Communicate early and often, be responsive
  • Build trust with educational content (guide through process)

Why it’s important to build a relationship with investors

  • One-on-one call to get to know investors and build trust
  • Tailor opportunities to investor profile and preferences

How David tracks his conversations with investors

  • Keep notes during call re: what investor is looking for
  • Document on spreadsheet and in ActiveCampaign

David’s insight on the process of producing content for investors

  • Ultimate goal of helping investors on financial journey
  • Batch videos based on FAQs, outsource production

How Nighthawk goes above and beyond on investor relations

  • Communicate re: upcoming opportunities
  • Inform how property is performing (update webinars)

What Nighthawk is doing to recognize strategic investors

  • Build out investor club tiers
  • Reward those who put large amounts of capital in deal

What a Nighthawk Equity capital raise campaign looks like

  • Email investors with preliminary info re: opportunity
  • Webinar to talk about deal in depth (2 weeks later)
  • Fill out paperwork, e.g.: PPM and company agreement
  • Receive funding instructions and follow through

How Nighthawk Equity streamlines the investing process

  • Managed through online investor portal
  • Automates workflow (easy for investors + syndicator)

How David maintains investor relations once a deal closes

  • 3 monthly follow-up investor update webinars
  • Monthly email update for duration of investment
  • Respond to investor questions within 24 hours

David’s advice for syndicators around raising capital

  • Provide investors with sense of comfort
  • Set self apart by making them feel safe

Connect with David Meilan

Nighthawk Equity

David on LinkedIn

Resources

Join the Nighthawk Equity Investor Club

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

Register for Michael’s Platform Builders Training

Learn More About Michael’s Mentoring Program

ActiveCampaign

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_252.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

They say that your network is your net worth. And Pat Hiban has proven this to be true over and over again. Making connections through networking and mastermind groups, he has established multiple business partnerships and created more than 30 passive income streams! So, how can we leverage what Pat has learned about building relationships to reach the next level of success in our own lives?

Pat is the Cofounder of GoBundance, a business mastermind for healthy, wealthy, generous men who want to lead EPIC lives. A former top-performing real estate agent, Pat was the #1 RE/MAX agent in the world in 2004 and earned the same honor with Keller Williams in 2006, selling more than 4,000 homes worth over one billion dollars in the course of his career. Pat is also the former host of the Real Estate Rockstars Podcast and the author of 6 Steps to 7 Figures and Tribe of Millionaires.

On this episode of Apartment Building Investing, Pat joins cohost Garrett Lynch and I to discuss what inspired his initial goal to become a millionaire and share the key lessons from 6 Steps to 7 Figures. He explains how his definition of success has evolved to focus on relationships and describes the power of joining a mastermind community. Listen in for Pat’s insight around building on your successes and learn how networking with other high-performing entrepreneurs can take YOUR business to the next level!

Key Takeaways

What inspired Pat to become a millionaire

  • Boost to self-esteem
  • More money = less stress

How Pat’s definition of success has changed

  • Ego-driven to make money from 21 to 35
  • Relationships + time most valuable now

Pat’s key lesson from 6 Steps to 7 Figures

  • Build on successes (not from ground up)
  • Go deep in one area rather than wide

The key to Pat’s ongoing success

  • Naïve enough to keep moving forward
  • Believe in self and be coachable

Pat’s insight around the value of relationships

  • 30+ opportunities from mastermind
  • One relationship away from next level

The idea of horizontal income

  • Things that pay you sideways
  • Multifamily, businesses, etc.

What Pat is investing in right now

  • Cryptocurrency (Bitcoin and Ethereum)
  • VC funds and private companies
  • Single- and multifamily real estate

Connect with Pat Hiban

Tribe of Millionaires

GoBundance

Pat on LinkedIn

Resources

6 Steps to 7 Figures: A Real Estate Professional’s Guide to Building Wealth and Creating Your Own Destiny by Pat Hiban

Tribe of Millionaires: What If One Choice Could Change Everything? by David Osborn and Pat Hiban

Real Estate Rockstars Podcast

David Osborn

Tim Rhode

We Study Billionaires

Real Vision Podcast

Learn More About Michael’s Mentoring Program

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_251.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

We’ve always said that multifamily is recession-proof, and 2020 gave us a chance to prove it. While the stock market and other asset classes suffered in the pandemic, apartment buildings continue to provide steady cashflow and a safe place to keep our money growing for the long term. So, what can syndicators do to get this message to more people and build a successful real estate investing business?

On this episode, I’m sharing the Best of 2020 on the Apartment Building Investing Podcast, beginning with last year’s biggest news—the Coronavirus pandemic. We revisit Drew Kniffin’s thoughts on the risk COVID poses for passive investors, Drew Whitson’s take on why multifamily is still the strongest asset class in real estate, and Russell Gray’s insight on how to protect your wealth in a crisis.

We look back at my conversations with Pat Flynn and Amy Porterfield on marketing to investors online and my interview with Gino Wickman around what it takes to be a successful entrepreneur. Listen in for master deal maker Garrett Lynch’s insight on choosing the right market and get inspired by BiggerPockets VP Brandon Turner’s approach to achieving BIG things with tiny action.

Key Takeaways

How COVID is likely to impact passive investors in multifamily

  • Unless already run poorly, virus won’t bankrupt property
  • Much better option than stock market (30% paper loss)

Why multifamily is still the strongest asset class in real estate

  • Performs well through economic disruption
  • Office buildings, retail and medical suffered in COVID

What makes real estate a solid investment (even in a crisis)

  • Fits criteria of being both REAL and ESSENTIAL
  • Governments support housing, energy and healthcare

What to look for in a multifamily real estate market

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

Who should consider building a thought leadership platform

  • EVERYONE can build personal brand online
  • Place to announce, connect and prove authority

Why an email list is more valuable than social media followers

  • Algorithms change, you don’t own social platforms
  • Email list = YOUR asset for growing relationships

How to choose the right lead magnet for your audience

  • IRRESISTIBLE piece of free content (trade for email addy)
  • What avatar needs to believe to do business with you

The eight critical mistakes most entrepreneurs make

  1. Not having vision
  2. Hiring wrong people
  3. Not spending time with your people
  4. Not knowing who customer is
  5. Not charging enough
  6. Not staying true to your core (shiny object syndrome)
  7. Not knowing your numbers
  8. Not crystalizing roles and responsibilities

The eight disciplines for increasing your chances of success

  1. Clarify vision
  2. Decide if you’re ‘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

The two kinds of ‘partner people’ in entrepreneurship

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

Why it’s crucial to have a clear vision for your business

  • Know where you want to be and take next tiny step
  • Ask what’s cool and write as if you’re already there

Connect with Drew Kniffin

Drew at Nighthawk Equity

Drew on LinkedIn

Connect with Drew Whitson

Drew at the Michael Blank Mentoring Program

Drew on LinkedIn

Connect with Russell Gray

The Real Estate Guys

Russell on LinkedIn

Connect with Garrett Lynch

Garrett at Nighthawk Equity

Garrett on LinkedIn

Connect with Pat Flynn

Pat’s Website

Pat at Smart Passive Income

Connect with Amy Porterfield

Amy’s Website

Marketing Made Easy Podcast

Connect with Gino Wickman

Entrepreneurial Leap

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

Connect with Brandon Turner

Open Door Capital

BiggerPockets Podcast

The Book on Rental Property Investing: How to Create Wealth with Intelligent Buy and Hold Real Estate Investing by Brandon Turner

Resources

Drew Kniffin on Apartment Building Investing EP208

Drew Whitson on Apartment Building Investing EP228

Russell Gray on Apartment Building Investing EP226

Garrett Lynch on Apartment Building Investing EP231

Pat Flynn on Apartment Building Investing EP210

Amy Porterfield on Apartment Building Investing EP212

Gino Wickman on Apartment Building Investing EP243

Brandon Turner on Apartment Building Investing EP221

Bryce Stewart on BiggerPockets Podcast EP276

Vivid Vision: A Remarkable Tool for Aligning Your Business Around a Shared Vision of the Future by Cameron Herold

Find Out More About Deal Maker Live

Learn More About Michael’s Mentoring Program

Register for Michael’s Platform Builders Workshop

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

Email digital@themichaelblank.com

Direct download: ABI_250.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

The most successful real estate investors find creative ways to increase their NOI either by adding amenities for residents or reducing expenses. But there is a new opportunity for property owners that you may not be aware of. What if you could earn more money by leasing out a portion of your building for a 5G cell phone tower?

Hugh Odom is the Founder and President of Vertical Consultants, a telecom consulting firm that has advised major corporations such as Walmart, McDonald’s and Disney, as well as government institutions like the Department of Veterans Affairs, the New York Housing Authority and the United States Postal Service. Hugh served as an attorney for AT&T for 11-plus years, and today, he leverages his expertise in the telecom industry to help real estate investors earn additional income through cell tower leases.

On this episode of Apartment Building Investing, Hugh joins cohost Garrett Lynch and I to explain why the cell tower industry is like oil 100 years ago, discussing what is driving the need for more cell towers and how lucrative a cell tower lease can be for investors. Hugh shares the do’s and don’ts of negotiating a cell tower lease, describing how it differs from a real estate transaction and what Hugh’s team does to help property owners with the process. Listen in to understand why cell tower investing is a safe bet for the long term and learn how YOU can take advantage of the opportunity to be a cell tower landlord!

Key Takeaways

Why the cell tower industry is like oil 100 years ago

  • Long-term agreements to lease land from property owners
  • Cell companies reach out if property in right location

What is driving the need for more cell towers

  • 5G technology requires additional infrastructure
  • Densification makes service faster, more instantaneous
  • From 400K to 1.5M cell sites by 2025

The do’s and don’ts of negotiating a cell tower lease

  • Don’t treat as real estate transaction (e.g.: market rate)
  • Do determine value provider will get from space

How lucrative a cell tower lease agreement can be for investors

  • Typically increases value of property by $1M
  • Renegotiate contract as provider’s revenue from site goes up

How Vertical Consultants helps property owners

  • Level playing field (understand value you’re offering)
  • Source leases for large commercial property owners

How to take advantage of this opportunity in cell towers

  • Buy properties with existing towers or rights to cell towers
  • Bring experts in to renegotiate lease

How 5G towers differ visually from traditional cell towers

  • Traditional tower = 150 feet tall, up to 5K ft2
  • Traditional rooftop antenna up to 500 ft2
  • 5G tower = 50 ft2 with small antenna box

The opportunity to become an operator of cell towers

  • Pay property owners in dead spots for right to lease
  • Buy for long-term cashflow or flip

Why cell tower investing is a safe bet for the long term

  • Similar to highway system (infrastructure, not technology)
  • Change out equipment as tech improves

Who Hugh serves through Vertical Consultants

  • Property owners with existing agreements
  • Owners who’ve been approached by cell company
  • Hotels, self-storage and shopping center developers

Connect with Hugh Odom

Vertical Consultants

Resources

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

American Tower

Crown Castle

SBA Communications

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_249.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

So, you’ve done a multifamily deal or two, and your friends and family are maxed out in the money department. You’re ready to take on bigger and bigger deals, but you’re struggling to raise capital. What is the best way to grow your investor base?

Dr. Jeff Anzalone is a full-time practicing periodontist and the creator of Debt-Free Doctor, a platform designed to help doctors and other high-income professionals generate passive income from real estate so they can STOP trading time for money. Jeff started his blog to share how he paid off $300K in student loan debt. But once he was debt-free, Jeff shifted his focus to investing and acquiring streams of passive income through multifamily syndications. Today, he is raising millions in days for real estate deals.

On this episode of Apartment Building Investing, Jeff joins cohost Patricia Sweeney and I to discuss how the Debt-Free Doctor has evolved, explaining how he creates content consistently and what he does to promote the platform and grow his investor base. Jeff walks us through the benefit of joining his Passive Investors Circle, describing how he gives doctors and other overworked professionals options for earning passive income. Listen in to understand how serving his audience inspires Jeff to keep going and learn how he raised $2.7M in five days for his latest multifamily deal!

Key Takeaways

What inspired Jeff’s interest in real estate investing

  • Wrist injury on ski trip inspired interest in passive income
  • Successful people had real estate, 3 to 9 income streams

Jeff’s first experience with real estate investing

  • Discovered crowdfunding with Realty Shares
  • Relied on website and lost $50K

How Jeff’s website has evolved over the years

  • Began as diary on getting out of student loan debt
  • Now educates high-income earners on real estate

How Jeff got into raising capital for real estate syndications

  • Sponsor reached out because of blog and podcasts
  • Started Passive Investor Circle (raised $2.7M for deal)

Who Jeff serves through Debt-Free Doctor

  • Doctors, other high-income earners (accredited investors)
  • Overworked professionals looking for options

What Jeff has done to grow his list

  • Site for physicians shared articles and boosted traffic
  • Capture addresses with Passive Investor Circle

The benefit of joining Jeff’s Passive Investor Circle

  • Free Passive Income Guide and series of emails
  • Learn about deals Jeff invests in, set up time to talk

How Jeff comes up with content ideas for his blog

  • Topics he reads/hears about online and on podcasts
  • Keyword research for subjects that will rank

How Jeff produces content consistently

  • Write between patients
  • Inspired by being able to serve, change lives

What’s next for Jeff and his real estate platform

  • Start podcast, speak at in-person events
  • Create own event or write book

Jeff’s advice for syndicators struggling to raise capital

  • Determine the ONE thing (grow investor base)
  • Delegate or don’t do anything that doesn’t do that

Jeff’s advice for aspiring platform builders

  • Invest in marketing platform, calculate ROI
  • Don’t reinvent wheel

Connect with Jeff Anzalone

Debt-Free Doctor

Jeff’s Passive Investors Circle

Jeff’s Free Passive Income Guide

Resources

Register for Michael’s Platform Builders Incubator

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

Realty Shares

Dave Ramsey

FinCon

The Blog Millionaire

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

Robert Kiyosaki

Grant Cardone

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_248.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Affirmations are a powerful tool in reaching our goals. They remind us why we do what we do, what we plan to achieve and the kind of person we want to become along the way.

So, what does it look like to create an affirmation specific to real estate investing? An affirmation that will keep you on track all year long and make success inevitable?

On this episode of Apartment Building Investing, I discuss the value of using affirmations to achieve financial freedom through multifamily real estate. I walk you through the process of constructing an affirmation the right way, describing the activities you can commit to as an aspiring syndicator and challenging you focus on those activities (rather than the outcome). Listen in for insight on taking tiny action toward your goals every day and learn how to build an affirmation that guarantees your success as a real estate investor!

Key Takeaways

Why you should use affirmations to achieve your goals

  • Creates clarity
  • Establishes your WHY
  • Commit to activity

How to construct an affirmation the right way

  1. Commit to unwavering faith and extraordinary effort
  2. Articulate WHY you’re working toward that goal
  3. Set level of commitment with daily activities
  4. Speak out enlightened entitlement (worthy of miracles)

The two activities aspiring syndicators can commit to

  1. Analyzing deals
  2. Talk with potential investors

Why you can’t get emotionally attached to the results

  • Give up when don’t achieve in certain time frame
  • Outcome = inevitable if do activity long enough

The secret to success in real estate investing

  • Commit to activity
  • Take tiny action every day

Resources

Download Michael’s Affirmation for Multifamily Investors

Learn More About Michael’s Mentoring Program

Year in Review on Apartment Building Investing EP244

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

Michael’s 10-Minute Offer Technique

Michael’s 10-Minute Offer eBook

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_247.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

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