Financial Freedom with Real Estate Investing

The most successful people are also the most purposeful. They create a vision for the future and take steps to get a little better every day.

They take the time to ask: Is my life working for me? If not, how would I like it to look different?

David Osborn is the principal owner of the sixth largest real estate company in the US with 4,500-plus agents and $11B in annual sales. David also runs a real estate investing private equity firm and operates 35 other profitable real estate related businesses in the US and Canada. He is well-known for being one of the cofounders of GoBundance, a community of healthy, wealthy, generous men who choose to lead EPIC lives.

On this episode of Financial Freedom with Real Estate Investing, David joins cohost Garrett Lynch and me to explain his tagline, ‘Who you become on your journey is far more important than what you achieve.’ He offers insight on the value of connecting with the right people and growing into the best version of yourself. Listen in to understand why David’s definition of wealth involves more than just money and find out how the most successful people get clear on where they’re going and walk in purpose.

Key Takeaways 

How David became a real estate investor

  • Got start as agent, opened KW franchises in TX, NM
  • All-in on investing in 2011 but ran out of own capital
  • Mission to meet wealthy people and raise money
  • Establish fund to invest in single family rentals

What investments David is bullish on right now

  • Dwelling spaces and rentals (single and multifamily)
  • Real estate in Sunbelt states with fewer regulations

Why who you become is more important than what you achieve

  • Controlling every decision makes you the bottleneck
  • Leadership means delegating trust (world gets bigger)
  • External world = reflection of who you are as human

The areas of his life David is working on right now

  • More present with wife and children
  • Working with coach on conscious leadership
  • Meditate on regular basis
  • Health including workouts
  • Learning (40 books/year and podcasts)

How David thinks about finding work-life balance

  • Worked 12-hour days to achieve financial freedom
  • Work smarter now, better relationships at home

David’s well-rounded definition of wealth

  • More than just money and financial freedom
  • Being good human, finding ways to contribute
  • Having adventures and being well-learned

Why it’s crucial to surround yourself with the right people

  • Genius of humans = sharing and connectivity
  • Find peers who push and inspire you to get better

The GoBundance origin story

  • Accountability partners with Pat Hiban, Tim Rhode
  • Invite others to join in bucket-list adventures
  • Growth comes from authenticity and transparency

David’s top lessons learned as an entrepreneur

  • Know where you’re going (purposeful vision for life)
  • Invest in marriage and make time for kids

Connect with David Osborn

David’s Website

David on Instagram

GoBundance

Resources

Be a Part of Michael’s Deal Maker Mastermind

Join the Nighthawk Equity Investor Club

Entrepreneurs’ Organization

TIGER 21

Conscious Loving: The Journey to Co-Commitment by Gay & Kathlyn Hendricks

The 15 Commitments of Conscious Leadership: A New Paradigm for Sustainable Success by Jim Dethmer, Diana Chapman & Kaley Klemp

The Almanack of Naval Ravikant: A Guide to Wealth and Happiness by Eric Jorgenson

Huberman Lab Podcast

Wealth Can’t Wait: Avoid the 7 Wealth Traps, Implement the 7 Business Pillars, and Complete a Life Audit Today! by David Osborn & Paul Morris

Diego Corzo

The Family Board Meeting: You Have 18 Summers to Create Lasting Connection with Your Children by Jim Sheils

Lifespan: Why We Age—and Why We Don’t Have To by David A. Sinclair

Black Belt of the Mind by Fred Grosse

Pat Hiban

Tim Rhode

Scott Harrison of Charity Water

Gary Keller

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

Richard Branson

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

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group

Podcast Show Notes

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP285.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Even if you choose the right property, the wrong debt can wreck a multifamily deal. So, what can we do to manage shifts in the real estate market? How do we structure deals in a way that mitigates risk?

Andrew Cushman serves as Principal at Vantage Point Acquisitions, a private equity firm focused on acquiring and repositioning multifamily properties throughout the Southeast US. He left his 9-to-5 as a chemical engineer for real estate in 2007 and built a lucrative house flipping business before finding multifamily in 2011. Since then, Andrew has successfully syndicated more than 2,100 units and launched The Multifamily Accelerator, a mastermind for active and experienced real estate investors.

On this episode of Financial Freedom with Real Estate Investing, Andrew joins cohost Garrett Lynch and me to explain why he is confident about buying multifamily right now and share what he is doing to maintain deal flow. He offers insight on underwriting to account for a spike in interest rates or a shift in rent growth and shares his secret for finding off-market deals. Listen in as Andrew describes what kind of inflation is good for apartment investors and learn how to structure agency or bridge debt to best manage risk.

Key Takeaways 

Why Andrew is confident about buying multifamily right now

  • Large, sophisticated groups making offers on small properties
  • Right types of inflation benefit multifamily in particular

The kind of inflation that’s good for multifamily real estate

  • Labor, cost of building and properties all on rise
  • Interest rates stay low while incomes increase

Why Andrew used 12-year, fixed-rate debt on a recent deal

  • Buyer can assume debt in 6 years if interest rates up
  • Property value likely up if interest rates still low
  • Option to hold for 6 more years if market in trouble

Andrew’s top strategies for structuring bridge debt

  • Don’t take maximum leverage, negotiate lower interest rate 
  • 5-year loan affords options while 1-year loan does not

How to mitigate the risk of a spike in interest rates

  • Debt structure with options for exit
  • Conservative rent growth assumptions
  • Modify exit cap rate (+ 10 basis points for every year held)

What Andrew is doing to find multifamily deals right now

  • Leverage long-term broker relationships
  • Direct outreach to owners in select markets
  • Driving for dollars

Andrew’s tips for reaching out to owners directly

  • Ask under what circumstances would consider selling
  • Be careful not to hurt existing broker relationships

What Andrew is doing to maintain deal flow

  • Add team member to increase number of leads 
  • Consider expanding into new markets

Andrew’s strategy for bidding on listed multifamily deals

  • Never win best and final on price (try creative terms)
  • Stay involved to stay top-of-mind with brokers

How Andrew thinks about rent increases in his underwriting

  • Current level of rent increases not sustainable
  • Underwrite to current rents or well below forecast increases
  • Buy where renovated rent <25% of median income

Connect with Andrew Cushman

Vantage Point Acquisitions

Vantage Point on YouTube

Vantage Point on Facebook

Vantage Point on Instagram

Vantage Point on LinkedIn

Resources

Explore Michael’s Deal Maker Certification Training

Access Michael’s Platform Builders Masterclass

Learn About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Kevin Bupp on Financial Freedom with Real Estate Investing EP281

Reonomy

Brandon Turner at Open Door Capital

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_EP284.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Is now really a good time to get started in multifamily?

COVID put real estate on a bit of a roller coaster ride. The market cooled for a bit but then came back even hotter!

So, is it too hot now? What should we be thinking about as we decide whether to invest now or wait until later?

On this solo episode of Financial Freedom with Real Estate Investing, I explain why there will never be a PERFECT time to get into multifamily and discuss how we adjust our tactics with ups and down in the market.

I offer insight on why real estate prices are going up right now and describe what soaring construction costs, ongoing demand for affordable housing and rising inflation means for multifamily.

Listen in to understand the relationship between rising rents and property values—and find out why investing in REAL assets is the best thing you can do right now!

Key Takeaways

My insight on why now is the right time to get into multifamily

  • There will never be a PERFECT time to get started
  • If fundamentals are strong, stick with strategy but adjust tactics
  • Don’t ask, ‘Should I get started?’ but ‘How can I get started?’

Why real estate prices are going up right now

  • Low interest rates
  • Increased demand
  • Rising inflation

The impact of soaring construction costs

  • Median price of house up from $286K to $326K
  • Affordable housing shortage worse than ever

What the current inflationary environment means for multifamily

  • Rising incomes and rents (in growing markets)
  • Increasing NOI means value of building goes up

The case for investing in multifamily

  • Ongoing high demand and limited supply
  • Rising incomes + inflation = higher rents
  • High rents + low interest rates = higher prices

Why it’s a good idea to invest in real assets right now

  • Potential devaluation of dollar
  • Hold things with intrinsic value

Resources

Explore Michael’s Deal Maker Certification Training

Learn More About Michael’s Mentoring Program

Register for Michael’s Platform Builders Masterclass

Join the Nighthawk Equity Investor Club

Get Michael’s Blueprint to Your First Multifamily Deal

Construction Costs Are Skyrocketing—Should You Build a House?’ in Forbes

‘The Housing Shortage Is Worse Than Ever—And Will Take a Decade of Record Construction to Fix, Reports Say’ in Forbes

‘Skyrocketing Steel, Lumber Costs Threaten to Slow Construction Jobs’ in Construction Dive

‘Soaring Lumber Prices Add $36,000 to the Cost of a New Home and a Fierce Land Grab Is Only Making It Worse’ on CNBC

‘The Housing Boom Could Be Losing Steam’ on CNN Business

‘Online Searches About Relocations Soar; Lack of Homes for Sale Driving Interest’ in The Washington Post

‘The Housing Shortage—Special Report’ in REALTOR Magazine

‘Once-in-a-Generation Response Needed to Address Housing Supply Crisis’ on the National Association of REALTORS Website

‘Apartment Rents Reach New High in June’ in GlobeSt

‘More Americans Are Leaving Cities, But Don’t Call It an Urban Exodus’ in Bloomberg

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_EP283.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Most people see adversity as a bad thing and avoid it at all costs. But what if setbacks are simply part of the journey to success? What if we can convert adversity into rocket fuel and use it to propel us to the next level?

Mike ‘C-Roc’ Ciorrocco is the CEO of People Building, Inc. and Cofounder of the emerging tech company Blooprinted. He was named one of the Top Business Leaders to Follow in 2020 by Yahoo Finance and was #1 on their list of Top Mortgage Professionals the same year. Mike is also the host of What Are You Made Of? and the bestselling author of Rocket Fuel: Convert Setbacks, Become Unstoppable.

On this episode of Financial Freedom with Real Estate Investing, Mike joins cohost Garrett Lynch and me to explain why adversity is a good thing, describing how he converts setbacks into rocket fuel to become unstoppable. He walks us through the 3 C’s for achieving any big goal, challenging us to get clear on what we want and commit to taking consistent action. Listen in to find out how Mike got into business with Grant Cardone and learn his approach to reframing adversity as your best teacher.

Key Takeaways 

 The rocket fuel that makes Mike unstoppable

  • 'Dirty fuel’ of difficult childhood
  • Future dreams to pull forward

How Mike lifted himself out of a negative environment

  • Mom encouraged to be leader
  • Never bought other’s BS to justify failures

Mike’s 3 C’s for realizing you’re not stuck

  1. Clarity
  2. Commitment
  3. Consistency

The importance of your peer group

  • Bad things happen with wrong associates
  • Surround self with people aligned with mission

Why people have a hard time committing to a goal

  • Say it’s hard, try to make self right
  • Program self to best-case scenario

Why Mike encourages people to tell their story

  • Journey to success often invisible
  • Adversity = part of process

The 3 reasons people don’t share their story

  1. Don’t think people care
  2. Embarrassed by story
  3. Underestimate power to impact others

Why adversity is ultimately a good thing

  • Helps course correct when getting off track
  • Teaches how to get where going

Mike’s approach to bouncing back from a big setback

  • SWOT analysis of worst-case scenario
  • Don’t worry what other people think

How Mike got into business with Grant Cardone

  • Read 10X Rule, got immersed in his content
  • Connect with Grant’s team to share successes
  • Ask to write forward for Rocket Fuel
  • Work together to launch 10X Incubator

What Mike wants to be remembered for

  • Make people feel unstoppable
  • Elevate others to achieve potential

Connect with Mike Ciorrocco

Mike on Clubhouse

Mike on Instagram

Mike on LinkedIn

What Are You Made Of? Podcast

Blooprinted

Resources

Access Michael’s Blueprint to Your First Multifamily Deal Training

Learn About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Rocket Fuel: Convert Setbacks, Become Unstoppable by Mike Ciorrocco

Grant Cardone

10X Incubator

The 10X Rule: The Only Difference Between Success and Failure by Grant Cardone

Grant Cardone Sales Training University

The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life by Hal Elrod

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

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_EP282.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

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