Financial Freedom with Real Estate Investing

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

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