Financial Freedom with Real Estate Investing

Scale is crucial to achieving financial freedom with real estate. And while multifamily is the fastest way to achieve scale, there are other commercial asset classes that will get you there, provided you understand the challenges and how to overcome them. Kevin Bupp is living the dream with mobile home parks, and he’s well-versed what it takes to grow a portfolio in this niche market.

Kevin is the CEO of Sunrise Capital Investors, a firm that helps investors build legacy wealth through commercial real estate investing. Kevin and his team focus on mobile home parks and parking assets, market segments with less competition than other asset classes. He has been a real estate investor since he was 19 years old, and he has specialized in mobile home parks for the last 10 years. Kevin is also the host of the Real Estate Investing for Cashflow Podcast.

On this episode of Financial Freedom with Real Estate Investing, Kevin joins cohost Garrett Lynch and me to discuss the pros and cons of investing in mobile home parks. He explains why he made the commitment to self-manage his portfolio and shares best practices for building your own property management company. Listen in to understand the process of finding mobile home park deals and learn how Kevin built and scaled a successful mobile home park investing business!

Key Takeaways

What Kevin loves about mobile home parks

  • Very high cash-on-cash returns
  • Mom-and-pop owners = upside potential
  • Very low tenant turnover rate

The challenges of mobile home park investing

  • Difficult to scale (focus on large lots)
  • Must make commitment to self-manage

How to build a property management company

  • Add value to established group
  • Hire from top down, not bottom up

Kevin’s advice on scaling a mobile home portfolio

  • Grow efficiently, do only good deals
  • Focus on quality of life

Kevin’s first hires for a property management team

  • Invest in director of property management
  • Experienced administrative assistant

What a mobile home park value-add deal looks like

  • Aesthetic improvements (e.g.: road repair)
  • Renovate park-owned units
  • Install new homes on vacant lots
  • Individual submeters on each lot

Why Kevin prefers selling mobile homes to renting

  • Little to no profit on renters
  • Average stay for owners = 9 years

Kevin’s debt strategy for mobile home parks

  • Fannie and Freddie loans
  • Community banks or CMBS lenders

How Kevin finds mobile home park deals

  • Cold call and direct mail prospects
  • Relationships with brokers

How Kevin gets property owner contact info

  • Secretary of state site for LLC members
  • Skip trace software

Why Kevin is getting into parking assets

  • Cashflow, nice return on investment
  • Positive future potential

Connect with Kevin Bupp

Kevin’s Website

Sunrise Capital Investors

Real Estate Investing for Cashflow Podcast

Resources

Podcast Show Notes

Access Michael’s Blueprint to Your First Multifamily Deal Training

Learn About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Kevin Bupp on Financial Freedom with Real Estate Investing EP054

TLOxp

LexisNexis

CoStar

Reonomy

Hunter Thompson on Financial Freedom with Real Estate Investing EP087

Podcast Show Notes

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP281.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Investing out of your area is a challenge. And investing WAY out of your area, like in a different country, adds another layer of complexity to doing a deal. But as long as you’re willing to make a decision and start moving forward, there’s nothing you can’t figure out along the way.

Edna Keep is a real estate investment coach and author of Multiple Ways to Wealth: Creating Your Prosperous Lifestyle. Edna spent 15 years as a financial advisor before she was introduced to real estate, and today, her team owns a portfolio of 800 doors worth $65M in both the US and Canada.

On this episode of Financial Freedom with Real Estate Investing, Edna joins cohost Garrett Lynch and me to share the ins and outs of investing out of area and explain the differences between the US and Canadian markets. She describes the challenges of being a foreign investor, offering insight into what she looks for in a market and how she builds a power team on the ground around a deal. Listen in for Edna’s advice on making a decision and then making it work for you—even if you don’t have all the answers about how a deal will work!

Key Takeaways 

What inspired Edna’s interest in real estate

  • Worked as financial advisor for 15 years
  • Clients pull money for real estate deals

How Edna pitches seller financing deals

  • Focus on property owners looking to retire
  • Keep income stream, avoid taxable event

How Edna finds sellers that are planning to retire

  • Real estate investment networks
  • Referrals based on reputation

 Edna’s transition to larger multifamily properties

  • Raise investor capital for Memphis deal
  • Paid cash ($21,600 per door)

Why Edna prefers real estate over mutual funds

  • Mutual funds subject to market cycles
  • Real estate offers consistency

Why Edna is investing in US real estate markets

  • Hot urban markets, high prices in Canada
  • Challenging to get financing in Canada

The logistics of investing in a foreign market

  • Find deal, build power team on ground
  • Canadian corporation owns US LLC

What Edna looks for in a real estate market

  • Focus on workforce housing
  • Look for growing community

Why it’s okay to not have all the answers

  • Multiple exit strategies available
  • Work with partners

Edna’s advice for aspiring investors

  • Make a decision, then make it work
  • Don’t put all eggs in one basket

Connect with Edna Keep

Edna’s Website

Email edna@ednakeep.com 

Resources

Learn More About Michael’s Mentoring Program

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

Join the Nighthawk Equity Investor Club 

Financial Freedom with Real Estate Investing by Michael Blank

Robert Kiyosaki

National Real Estate Investors Association

Canada Mortgage and Housing Corporation

Multifamily Networking from Anywhere in the World on FFWREI EP260

Canadian Real Estate Investment Trusts

Podcast Show Notes

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP280.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

All entrepreneurial activities are not created equal. Running a service-based business is an active pursuit. You’re managing employees, making sales and then following through with high quality work. But in real estate, once you do the initial legwork, the money comes in automatically with very little effort on your part.

Pete Schnepp is the successful entrepreneur behind Envision Painting and Roof Coatings, Bug Science Pest Control and PRS Properties. Pete got serious about building a real estate portfolio in 2017, and today, his rental income covers his family’s living expenses, and he is financially free.

On this episode of the podcast, Pete joins cohost Garrett Lynch and me to discuss what sets real estate apart from other kinds of entrepreneurship. Pete walks us through the steps he took to build a portfolio of properties and explains why his family continues to live below their means despite having achieved financial freedom. Listen in for Pete’s advice on revisiting your goals every day and find out how he is building generational wealth with real estate!

Key Takeaways 

What inspired Pete’s interest in real estate

  • Realized people with money involved in real estate
  • Needed Plan B to protect family financially

The steps Pete took to build his portfolio

  • Listened to podcasts and books while driving
  • Lived below means to save up
  • Made offers on 10 properties in single weekend

How Pete achieved financial freedom

  • $10K/month rental income covers living expenses
  • Goal to hit $20K/month by 2023

Pete’s insight on living below your means

  • Pay self salary as business owner and live on that
  • Maintain modest lifestyle even now

How Pete and his wife got on the same page

  • She supports his big dreams
  • Prioritize time with family over expensive things

Pete’s future goals when it comes to real estate

  • Use to create generational wealth
  • Hold existing properties for passive income

How real estate differs from Pete’s other small businesses

  • Painting and pest control = active
  • Real estate = passive and easier to scale

Pete’s advice for aspiring real estate investors

  • Get clear on 5-year goal
  • Focus on goal daily

Connect with Pete Schnepp

Pete on LinkedIn

Pete on Facebook

Resources

Register for Michael’s Platform Builders Masterclass

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

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

Think and Grow Rich by Napoleon Hill

BiggerPockets Real Estate Podcast

Entrepreneurs’ Organization

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

GoBundance

The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley and William D. Danko

CASHFLOW Board Game 

Podcast Show Notes

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP279.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

The vast majority of multifamily syndicators don’t stop with one property. And with each new deal, we start the stressful process of raising money all over again. But it doesn’t have to be that way! So, how does it work to raise capital for multiple deals through a fund?

Joe Fairless is the Cofounder and Partner at Ashcroft Capital, a multifamily firm that invests in 200-plus-unit value-add deals. The Ashcroft team has a portfolio of 38 properties, and in February of 2021, they pivoted from raising money for individual deals to raising capital through funds.

On this episode of Financial Freedom with Real Estate Investing, Joe joins me (and the attendees of Deal Maker Live) to discuss the pros and cons of raising money through a fund. He explains the benefit of being able to spread out your capital raise over time, bring on investors whenever they’re ready, and comingle money among deals. Listen in for insight on how Ashcroft structures its funds and find out if YOU’RE ready to start raising money for multifamily through a fund!

Key Takeaways 

How Joe achieves work-life integration

  • Systems, people in place to run business when away
  • Blurred lines between personal/professional life

How Ashcroft Capital structures its funds

  • Class A — 10% preferred return, virtually no upside
  • Class B — 7% pref with 70/30 split on upside

The downside of raising money for funds

  • LP gets average of all deals (miss out on lightning in bottle)
  • GP misses out on investors who prefer individual deals

Joe’s take on the advantages of raising money for funds

  • Don’t have to land on specific equity amount for each deal
  • Spread out capital raise over time
  • Bring investors on whenever ready
  • Creates consistency for investors (GP can comingle money)

When you should consider raising money through a fund

  • Acquired 5 multifamily deals
  • At least 2 exits under belt

The pros and cons of using Rule 506(c)

  • Can advertise deal publicly but accredited investors only
  • Don’t have to document preexisting relationship

Why Joe’s fund raises money for both class A and B properties

  • 20% of investors class A, 80% of investors class B
  • Class A shares upside over 10% for less risk

Connect with Joe Fairless

Ashcroft Capital

Resources

Learn About Michael’s Mentoring Program

Access the Recordings from Deal Maker Live

Join the Nighthawk Equity Investor Club

Tony Robbins on Work-Life Integration

Rule 506(c)

Rule 506(b)

Podcast Show Notes

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP278.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

In the short term, multifamily investors can have success simply playing the appreciation game. But if you want to build a multifamily portfolio that survives and thrives for the long term, you have to make operations a priority. 

Ashley Wilson is the cofounder of Bar Down Investments and the bestselling author of The Only Woman in the Room: Knowledge and Inspiration from 20 Women Real Estate Investors. Ashley has been involved in $60M-plus in real estate transactions in the last 12 years, and she leads asset and construction management for her own multifamily investments. 

On this episode of Financial Freedom with Real Estate Investing, Ashley joins cohost Garrett Lynch and me to explain why it’s essential for syndicators to focus on operations. Ashley shares her take on the lack of women in real estate, offering advice on how to increase the number of women investors and influencers in the space. Listen in for Ashley’s insight on the #1 skill you need to be a successful investor and find out how to marry asset and construction management to maximize the value of YOUR multifamily portfolio!

Key Takeaways 

What lights Ashley up about multifamily real estate

  • Finding best way to maximize value of property
  • Operations (how tenants think, market shifts, etc.)

How Ashley’s real estate strategy has evolved over time

  • Hands-off house hacking, STRs while working full-time
  • Shift to high-end flips after retired from pharmaceuticals 
  • Desire to work smarter not harder led to multifamily

Why multifamily is the holy grail for Ashley’s needs

  • Obvious tax advantages, hedge against inflation
  • Market demand (need due to housing shortage)

Why syndicators need to focus on operations

  • Can’t succeed long-term by way of appreciation alone
  • Learn through management of difficult properties
  • 100% collections on all properties throughout COVID

The benefit of marrying asset and construction management

  • Exploit market demands, minimize loss-to-lease
  • Build up right tenants = easier to operate long term

What inspired Ashley to write The Only Woman in the Room

  • Just 14 women out of 450 investors at MidAtlantic Summit
  • Highlight stories, provide role models for next generation

Ashley’s take on the lack of women in the real estate business

  • Women not encouraged to pursue STEM fields until now
  • Math and finance necessary foundation for investing

Why determination is the #1 skill of a successful investor

  • Overrides fear of asking questions and taking risks
  • Seek out knowledge, push through self-doubt

How to increase the number of women investors and influencers

  • Provide opportunities to speak at events based on merit
  • Best way to be introduced = have someone introduce you

Ashley’s advice to aspiring women real estate investors

  • Start building relationships (net worth = network)
  • Exploit free platforms to learn fundamentals

Connect with Ashley Wilson

Bar Down Investments

Ashley on Instagram

Ashley on BiggerPockets

Resources

Access the Recordings from Deal Maker Live

Register for Michael’s Platform Builders Masterclass

Join the Nighthawk Equity Investor Club

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

MidAtlantic Summit

The Real Estate InvestHER Community

Investor Girl Britt

Podcast Show Notes

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP277.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

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