Apartment Building Investing with Michael Blank Podcast

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

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