Financial Freedom with Real Estate Investing
Before you invest with a multifamily operator, it’s important to understand their track record. To know that they’ve got experience overcoming obstacles and making a deal work.

Prior to joining our team at Nighthawk Equity, podcast cohost Garrett Lynch owned and operated a class D real estate portfolio on the south side of Chicago. And learned how to solve problems on a life-or-death level in the process.

On this episode of Financial Freedom with Real Estate Investing, Garrett is flying solo, discussing how he acquired 300 properties in six months and describing some of the challenges he faced managing assets in crime-ridden neighborhoods.

Garrett shares his experience owning and operating a 381-unit, class D apartment building in Memphis, walking us through the steps he took to end gang violence onsite and increase occupancy to 90%.

Listen in for Garrett’s insight around the pros and cons of investing in class D properties and find out what he learned about problem-solving in a high-stakes situation that he brings to the team at Nighthawk!

For full episode show notes visit: http://www.themichaelblank.com/session318/

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP318_1.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

A 2017 Forbes headline reads, ‘Median Wealth of Black and Latino Families Could Hit Zero by the Middle of the Century.’

That hit home for Puerto Rican-born Duamel Vellon. And he’s made it his mission to raise awareness in his community, making multifamily investors out of his friends and peers.

Duamel Vellon is Cofounder of Ten15 Capital, a multifamily investment firm with assets in Florida, Georgia and the Carolinas. A former engineer in the theme park industry, Duamel quit his job in December of 2021 to be a full-time investor, and he currently manages a 203-unit portfolio.

On this episode of Financial Freedom with Real Estate Investing, Duamel joins cohost Garrett Lynch and me to share the ‘chess versus checkers’ mindset that helped him transition from flipping to multifamily.

Duamel describes his grassroots approach to raising capital, discussing how he grows his network and educates potential investors before he has a live deal.

Listen in for insight on Duamel’s mission to serve the Black and Latino communities and learn his uncommon strategy for ensuring regular deal flow.

For full episode show notes visit: http://www.themichaelblank.com/session317/

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP317.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

If you finance a multifamily syndication through Fannie Mae or Freddie Mac, you’re securing non-recourse debt with a fixed interest rate. But if you want to exit anytime sooner than the loan expiration date, you're going to pay a BIG penalty on the back end.

So, how might we leverage credit unions to avoid these big-ticket prepayment penalties? Are there other benefits to financing real estate deals through a credit union? What’s the downside?

Mark Ritter is CEO of Member Business Financial Services or MBFS, a business lending credit service organization owned by credit unions for credit unions and their members. An expert in credit unions and business lending, Mark is dedicated to helping commercial real estate investors secure the financing they need.

On this episode of Financial Freedom with Real Estate Investing, Mark joins cohost Garrett Lynch and me to explore the pros and cons of financing multifamily through a credit union versus traditional loans.

Mark describes the credit union philosophy of people helping people, discussing how real estate investors benefit from having a personal relationship with our lender.

Listen in for Mark’s advice on how to approach a credit union for a loan and learn about the flexible terms and low cost of capital available if you finance your next deal through an organization like MBFS!

For full episode show notes visit: http://www.themichaelblank.com/session316/

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP316_1.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

A career as a professional athlete is exciting, and if you’re among the best, you can make a lot of money in a short amount of time. But what do you do when your career is over?

Dan Brisse was a professional snowboarder for over a decade, participating in the X Games four times and winning gold twice. But he noticed that older pros were suffering as their careers wound down, struggling financially and in their personal lives.

And that inspired Dan to make his money work for him with multifamily real estate.

Today, Dan is the cofounder of Granite Towers Equity Group, cohost of the Keeping It Real Estate Podcast and coauthor of 4 Steps to Successful Passive Investing. He and his partner, Mike, are GPs in 1,414 units worth $74M across five states, and he owns another 589 units as a passive investor.

On this episode of Financial Freedom with Real Estate Investing, Dan joins cohost Garrett Lynch and me to discuss his transition from snowboarding to real estate and describe the steps he took to become a multifamily investor.

Dan explains how his investing strategy has evolved over time, encouraging us to seek out a high-level mentor early on and avoid shiny object syndrome.

Listen in for insight around the values alignment that makes Dan and Mike’s partnership work and learn how to make the leap from YOUR current career to full-time real estate investing.

For full episode show notes visit: http://www.themichaelblank.com/session315/

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP315_1.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Why do you do what you do? Articulating the WHY behind your work gives it meaning. And makes for a richer, more fulfilling life. 

But how do you uncover your purpose and then apply it each day? 

Lee Prosenjak is a serial entrepreneur and executive coach at LynchPyn. He's worked with thousands of entrepreneurs in 30-plus countries, cultivating cohesive work groups and facilitating conversations that truly matter. 

An artist at heart, Lee is also the Cofounder of Cherry Creek Dance, former Igniter at Simon Sinek Consulting and current real estate investor on a mission to help others discover their own inspiration, love and greatness.

On this episode of Financial Freedom with Real Estate Investing, Lee joins host Garrett Lynch to discuss his WHY and describe how clarity of purpose leads to better decision-making.

Lee explores the relationship between purpose and identity, sharing the experience that inspired him to play BIGGER and expand his influence beyond Cherry Creek Dance.

Listen in for Lee’s insight around being open to new opportunities and find out how he is living his purpose as the owner of a boutique hotel in the Bahamas!

For full episode show notes visit: http://www.themichaelblank.com/session314/

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP314.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Imagine earning cash-on-cash returns as high as 50%! 

Inspired by sophisticated real estate investors in her network, Steffany Boldrini moved her money out of tech startups and into commercial properties three years ago.

And while she’s faced a lot of challenges along the way, Steffany reached financial freedom in less than two years.

So, what is Steffany’s approach to investing in real estate? And what does she do to earn such big-time returns?

Steffany moved from Brazil to Silicon Valley 20 years ago and enjoyed a successful career in tech sales before shifting her focus to commercial real estate. As Principal at Monte Carlo Real Estate Investments, she has built a portfolio across three asset classes, achieving 36% cash-on-cash returns. 

Steffany is also the host of Commercial Real Estate Investing from A-Z, a podcast about investing in retail, office, industrial and self-storage properties.

On this episode of Financial Freedom with Real Estate Investing, Steffany joins host Garrett Lynch to discuss her transition from angel investing to real estate, describing why she likes the risk profile of commercial properties over tech startups. 

Steffany shares her approach to building a commercial real estate portfolio, explaining the pros and cons of investing in car washes, self-storage and short-term rentals. 

Listen in to understand how Steffany leverages technology in her real estate business and get ideas for adding value to force appreciation—in any commercial asset class.

For full episode show notes visit: http://www.themichaelblank.com/session313/

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP313_1.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

When you work a traditional job, your ability to feed your family can be taken away from you at any moment. And your worth is determined by your employer. 

But what if YOU can determine your own worth? What if you can earn enough passive income from real estate to walk away from your J-O-B and be your own boss? 

Dustin Heiner is the creator of Master Passive Income, a platform and podcast where he shares insights on investing in real estate rental properties. 

Getting laid off from his 9-to-5 inspired Dustin to pursue investing, and by 2016, Dustin had built a portfolio of 30 properties and quit his job in IT, becoming what he calls 'successfully unemployed.' 

On this episode of Financial Freedom with Real Estate Investing, Dustin joins Garrett Lynch and me to discuss what he loves about passive income and share some of the mistakes he made with his first few investments. 

Dustin explains why it's important to build your business first, challenging you to look for markets with good inventory and put a team in place BEFORE you buy properties. 

Listen in for Dustin's insight on leveraging real estate to leave a legacy and find out how a mentor can support YOU in becoming successfully unemployed—like Dustin!

For full episode show notes visit: http://www.themichaelblank.com/session312/

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP312_1.mp3
Category:general -- posted at: 1:00am EDT

Are you confused by cryptocurrency, the blockchain or NFTs? 

As real estate investors, we’re all about wealth creation and owning physical assets as a hedge against inflation. But what about digital assets?

Is it worth investing in cryptocurrencies like Bitcoin? What is blockchain technology all about? And how can it change the world for the better?

Matthew Diemer is a small business entrepreneur and host of the Decrypt Daily Podcast. Prior to Decrypt Daily, he founded Crypto 101 and held the titles of COO and GM in the global hospitality industry. Matthew is also a Democrat running for Congress in Northeast Ohio dedicated to supporting entrepreneurship, promoting tech innovation and reviving manufacturing in the US.

On this episode of Financial Freedom with Real Estate Investing, Matthew joins host Garrett Lynch and me to discuss the benefits of blockchain technology, describing what makes crypto a good investment vehicle and why Bitcoin is a strong hedge against inflation.

Matthew explains how crypto allows us to control our own wealth and what we can do to keep our digital currency outside government control.

Listen in for Matthew’s insight into buying digital real estate and learn how the blockchain can be used to create wealth by tokenizing properties.

For full episode show notes visit: http://www.themichaelblank.com/session311/

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP311.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Most entrepreneurs believe that we are the secret sauce in our business. We think that no one else can bake the cupcakes or design the websites or analyze the real estate deals quite the way we do.  But if you’re busy building the product, who’s building the business?  This is what Curtis Morley calls the entrepreneur’s paradox: In order to scale, you've got to shift your passion from working IN the business to working ON the business.

Curtis is the five-time entrepreneur, mentor and thought leader behind The Entrepreneur’s Paradox, a platform dedicated to helping startup companies achieve next-level growth. Curtis has been named Entrepreneur of the Year and made the Inc. 5000 list six times. He is also the bestselling author of The Entrepreneur’s Paradox: How to Overcome the 16 Pitfalls Along the Startup Journey.

On this episode of Financial Freedom with Real Estate Investing, Curtis joins host Garrett Lynch to explain the entrepreneur’s paradox, challenging us to shift from the role of product manager to business leader and achieve the next level of growth.

Curtis shares his concept of counterfeit emotions, describing how to turn fear into power with a simple shift from WHAT IF to WHAT IS thinking.

Listen in for Curtis’ four-step success formula for entrepreneurs and learn how to make the mindset shift you need to scale YOUR real estate syndication business.

Key Takeaways 

How Curtis defines the entrepreneur’s paradox

  • What got you into business prevents you from succeeding
  • ‘If you’re building the product, who’s building the business?’

The first steps to becoming a business leader

  • Make decision to replace yourself as product manager
  • Identify and document your processes, teach to others

Curtis’ 3 summits you can climb as an entrepreneur

  1. Lifestyle business
  2. Buy or be bought
  3. IPO

Curtis’ 4-step success formula for entrepreneurs

  1. How much
  2. By when
  3. For what
  4. And why

Curtis’ advice for deciding what’s next after an exit

  • Stay committed to your WHY
  • Must have purpose, make contribution

Curtis’ concept of counterfeit emotions

  • Every authentic emotion has counterfeit (e.g.: faith vs. fear)
  • Authentic emotions connect, while counterfeit disconnect

How to transform your FEAR into POWER

  • Change WHAT IF into WHAT IS
  • Brings you back to present and creates energy

How Curtis uncovered the idea of counterfeit emotions

  • Pain = gift to help us grow, suffering steeped in blame/shame
  • Surrender to pain and turn it into something positive

Connect with Curtis Morley

The Entrepreneur’s Paradox

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Access Michael’s Free Resources in the Freedom Vault 

Review the Podcast on iTunes

Financial Freedom with Real Estate Investing by Michael Blank 

The Entrepreneur’s Paradox: How to Overcome the 16 Pitfalls Along the Startup Journey (Keys to Success for a Startup Company) by Curtis Morley 

Summit on the Summit 

Simon Sinek

Richard Bass

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Michael on TikTok

Apartment Investor Network Facebook Group 

Podcast Show Notes

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP310_v2.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

In aerospace engineering, ‘escape velocity’ is the amount of power a rocket needs to break free of the Earth’s gravitational field. And if you ask Jonathan and Paula Nichols, launching a real estate syndication business is no different.

It takes a tremendous amount of effort up front to do your first deal. You have to commit to the outcome and do whatever it takes to persevere through setbacks and disappointment. But once you’ve picked up momentum and closed on your first apartment building, the next deals follow in quick, almost automatic succession.

Jonathan and Paula are the cofounders of Apogee Capital, a multifamily firm dedicated to helping investors reach their financial potential. The Nichols closed on three deals in the last year, raising $2.7M as they built a portfolio of 200 units, and Jonathan quit his job as an aerospace engineer six weeks ago to pursue real estate full time.

On this episode of Financial Freedom with Real Estate Investing, Jonathan and Paula join cohost Garrett Lynch and me to discuss the sacrifices they made to make time for real estate while they both worked full-time corporate jobs.

Jonathan and Paula walk us through the steps they took to get started in multifamily syndication, describing how they got on the same page as a couple and started networking with potential partners.

Listen in for insight on reframing a lost deal as a learning opportunity and learn how to stay the course in tough times and keep taking action—until YOUR investing business takes off!

Key Takeaways 

How Jonathan and Paula got into real estate

  • Rich Dad... inspired to lease first home, buy fourplex
  • Realized multifamily was only way to scale

How real estate evolved into a business for the Nichols

  • Started as way to diversify investments
  • Saw unlimited possibilities once they gained traction

How Jonathan and Paula got on the same page

  • Both wanted to build legacy
  • Saw real estate as potential family business

The steps Jonathan and Paula took to get started investing

  1. Dreaming about financial freedom
  2. Getting educated (mentorship program)
  3. Networking to shift mindset
  4. Taking consistent action to build confidence

How Jonathan and Paula made time for real estate

  • Say no to fun activities on nights and weekends
  • Make sacrifices to reach ‘escape velocity’

Jonathan and Paula’s first multifamily deal

  • Co-GPs on 100-unit deal in Tulsa, Oklahoma
  • Brought in as boots on ground in market

How Jonathan and Paula met their partners

  • Develop relationship through networking events
  • Brought them deal that didn’t work out

Jonathan and Paula’s big setback 5 months ago

  • Actual financial records didn’t match originals
  • Discouraging but consider it learning opportunity

How Jonathan and Paula raised $700K for their first deal

  • Saw value in being flexible enough to learn new skills
  • Leveraged relationships from W-2 jobs, real estate

What’s ahead for Jonathan and Paula in the next 2 years

  • Actively looking for new deals, talking to investors
  • Executing on business plan of existing deals

Jonathan and Paula’s plan to scale

  • Network with potential partners
  • Outsource and automate parts of business
  • Increase capacity to do larger deals

Jonathan and Paula’s advice for aspiring investors

  • Take consistent action on daily basis
  • Don’t get discouraged in tough times
  • Dream BIG and don’t limit yourself

Connect with Jonathan & Paula Nichols

Apogee Capital 

Jonathan on LinkedIn

Resources

Get Tickets for Deal Maker Live

Buy Michael’s Syndicated Deal Analyzer 

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Access Michael’s Free Resources in the Freedom Vault 

Review the Podcast on iTunes

Financial Freedom with Real Estate Investing by Michael Blank 

National Real Estate Investors Association

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

Suzy Sevier & Michael Barnhart on Financial Freedom with Real Estate Investing EP260

Dream Big: Know What You Want, Why You Want It, and What You’re Going to Do About It by Bob Goff

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Michael on TikTok

Apartment Investor Network Facebook Group 

Podcast Show Notes

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP309.mp3
Category:Commercial Real Estate -- posted at: 2:00am EDT

Multifamily real estate is a big game. And if you want to scale quickly, you can’t do it alone.

That’s how Patrick Grimes went from 0 to 1,200-plus units in under two years. 

He partnered with a senior operator to go further faster, leveraging his partner’s expertise to build a $250M portfolio in a very short time.

But how did he get an experienced investor to invite him into a deal? 

Patrick is the Founder and CEO of Invest on Main Street and contributor to the #1 Amazon bestseller Persistence, Pivots and Game Changers: Turning Challenges Into Opportunities. Patrick also runs Protomation Systems, a consulting business that contracts with machine design firms to conceptualize, design and build custom manufacturing automation and robotic systems. 

On this episode of Financial Freedom with Real Estate Investing, Patrick joins cohost Garrett Lynch and me to explain how he brought value to an experienced operator to get into his first multifamily deal.

Patrick shares his experience with the Law of the First Deal, describing how his role on the team shifted as his portfolio grew.

Listen in for Patrick’s insight on mitigating the risks of multifamily investing and find out why partnering up is the best way to scale your business and get on the fast track to financial freedom!

Key Takeaways 

How Patrick got into real estate investing

  • First employer suggested keeping money in real estate
  • Looking for investment vehicle other than stock market

How Patrick’s investing strategy changed after 2008

  • Focus shifted to legacy and improving quality of life
  • Scale with multifamily, partner to accelerate growth

How Patrick got his wife involved in real estate investing

  • Invited to do Michael’s Ultimate Guide... course
  • Now she creates passive investor educational content

The steps Patrick took to get his first multifamily deal

  • Underwrite and bring live deals to senior operator
  • Network and build relationships with brokers

How Patrick justifies the risk associated with multifamily

  • Right team in place and experienced partners
  • Low-leveraged debt in less volatile markets

Patrick’s pivot away from deal finder into other roles

  • Drawn into existing deal by senior operator
  • Add value through due diligence, operations, etc.

Patrick’s experience with the Law of the First Deal

  • Started raising capital through engineering network
  • 2nd and 3rd deals in quick succession (KP on $200M)

Why Patrick chose the 506(c) option

  • Used to accredited investors, $100K minimums
  • Allows him to market deals online

The biggest challenge Patrick is facing as he scales

  • Get name out there as real estate investor
  • Demo thought leadership on podcasts and in writing

Patrick’s advice for aspiring multifamily investors

  • Partner up to accelerate your growth
  • Find where your skills fit and bring value

Connect with Patrick Grimes

Invest on Main Street 

Patrick on Forbes

Schedule a Call with Patrick

Resources

Get Tickets for Deal Maker Live

Buy Michael’s Ultimate Guide to Apartment Building Investing

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Access Michael’s Free Resources in the Freedom Vault 

Review the Podcast on iTunes

Financial Freedom with Real Estate Investing by Michael Blank 

Persistence, Pivots and Game Changers: Turning Challenges into Opportunities by Patrick Grimes et al.

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Michael on TikTok

Apartment Investor Network Facebook Group 

Podcast Show Notes

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP308.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Real estate has always had tax advantages, but in recent years, the deal got even sweeter for multifamily investors. 

So, how do we write off depreciation? What is a cost segregation study and how can it save us even more? 

Heidi Henderson serves as Executive Vice President at Engineered Tax Services, the nation’s leading tax credit and incentives firm. As an experienced tax consultant and real estate investor herself, Heidi specializes in the application of tax efficiencies to multifamily investments.

On this episode of the podcast, Heidi joins cohost Garrett Lynch and me to share the unique tax advantages of real estate and explain why the US government incentivizes multifamily investors.

Heidi describes how to take advantage of BONUS depreciation (provided for by the 2017 Tax Cuts and Jobs Act) by conducting a detailed cost segregation analysis.

Listen in for Heidi’s insight on determining the ROI of a cost seg study and find out how YOU can save tens of thousands of dollars with the magic of accelerated depreciation!

Key Takeaways 

The unique tax advantages of real estate

  • Depreciate value of real estate over 27½ years
  • Bonus depreciation through ‘cost seg’ analysis

Why the government incentivizes real estate investors

  • Consumerism drives economy
  • Encourages improvements to infrastructure

What depreciation is and how it works

  • Deducting cost of asset over its ‘useful life’
  • Reduces taxable income for investor

 Why you should claim bonus depreciation right away

  • Must be done year property is purchased
  • Inventory breakdown helps plan renovations

How to take advantage of accelerated depreciation

  • Conduct cost segregation study
  • Itemize deductions (e.g.: carpet, windows, etc.)

What to look for in a company that does cost seg

  • Can vary from 2 to 150 pages
  • Ask for copy of redacted study to compare

How to determine your ROI on a cost seg analysis

  • Based on taxable income, percentage of tax paid
  • Subtract cost of analysis

The limitations on taxable income for passive investors

  • Depreciation offsets real estate income only
  • Does not offset income from W-2 job

Why we should cash in on bonus depreciation now

  • TCJA passed 100% bonus depreciation
  • Drops to 80% in 2023, 60% in 2024

Connect with Heidi Henderson

Engineered Tax Services 

Heidi on LinkedIn 

Email hhenderson@engineeredtaxservices.com 

Call (801) 564-4464

Resources

Get Tickets for Deal Maker Live

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

Access Michael’s Free Resources in the Freedom Vault 

Review the Podcast on iTunes

Financial Freedom with Real Estate Investing by Michael Blank 

The Tax Cuts and Jobs Act

Heidi Henderson on Financial Freedom with Real Estate Investing EP022

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Michael on TikTok

Apartment Investor Network Facebook Group 

Podcast Show Notes

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP307.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

When you’re doing your first multifamily deal, scaling the business is the last thing on your mind. But if you don’t think about scale early on and come up with a plan, you’ll be fighting fires as you grow.

So, how do you create a vision for what your syndication business will look like in the future and then proactively put systems in place that allow you to scale up with ease? 

Veena Jetti is the Founding Partner of Vive Funds, a unique multifamily firm that specializes in curating conservative opportunities for real estate investors. Veena has built a portfolio of 3,000-plus units worth $600M, and she shares her expertise as a frequent speaker, panelist and guest on various media outlets.

On this episode of Financial Freedom with Real Estate Investing, Veena joins cohost Garrett Lynch and me to explain how raising capital at a high level allows her to scale and describe how every decision is made with the investor in mind.

Veena shares her success with investor retention and referrals, discussing why she offers investors the option to put their money in a fund or invest in direct offerings.

Listen in for insight on how Veena uses her time as partner at a big-time investment firm and get her advice on creating workflows that make it easy to scale your multifamily syndication business!

Key Takeaways 

What inspired Veena’s interest in scaling a real estate business

  • Mom was successful investor, taught solid work ethic
  • Enjoys bigger safety net than immigrant parents

How Veena and her sister/business partner use their time

  • Strategy re: acquisitions, capital and legal structure
  • Continue to take investor-facing calls

Why Veena’s had success raising capital at a high level

  • All decisions made with investor in mind
  • High investor retention rate and referrals 

Why Veena offers investors a fund OR direct offering option

  • Fund satisfies demand for diversification, set + forget
  • Surprised to find that some investors want to do both

How Veena raises $30M in 42 days

  • Raise money when don’t have deal on table
  • $100K minimum for individual deals

Veena’s experience with institutional investors

  • Build relationships with family funds
  • Have Plan B in case drop out last minute

What Veena is doing to enhance the way she raises capital

  • Rebrand with investor in mind
  • Add technology to make process smoother

Veena’s biggest challenges right now

  • Letting go of taking investor calls
  • Implementing new tech at pace she wants

Veena’s advice to her younger self

  • Invest in systems and processes out of gate
  • Consider scale from first deal

How Veena thinks about deal flow

  • Wants to do more but very competitive right now
  • Prefers 1 or 2 great deals over 6 okay deals

How Veena’s definition of success has changed over time

  • Used to be based on net worth and income
  • Now focused on setting example for kids

Connect with Veena Jetti

Vive Funds 

Vive Funds on Facebook

Vive Funds on Instagram

Veena on Twitter 

Veena on TikTok 

Resources

Get Tickets for Deal Maker Live

Learn More About Michael’s Mentoring Program

Access Michael’s Free Resources in the Freedom Vault 

Review the Podcast on iTunes

Financial Freedom with Real Estate Investing by Michael Blank 

The Art of the Deal by Donald J. Trump

Grant Cardone 

Brian Burke 

PowerForms

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Michael on TikTok

Apartment Investor Network Facebook Group 

Podcast Show Notes

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP306.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

At the age of 18, Alex Mandaro is the youngest mentoring student we’ve ever had at the Michael Blank organization. So, we’re doing a grand experiment and asking Alex to document his journey! 

In a reality-style series broadcast through our social media channels, Alex will share a behind-the-scenes look at the life and times of a new syndicator.

On this episode of Financial Freedom with Real Estate Investing, Alex joins me to explain what inspired his interest in multifamily and why he believes he’ll be successful.

He discusses why he used his college money to invest in mentoring, describing how he is getting the most out of our program and learning from the mistakes of others.

Listen in for insight on following Alex’s journey with us to find out if you really can be a successful syndicator without experience or cash of your own!

Key Takeaways 

What inspired Alex’s interest in real estate

  • Always wanted to have business, likes people
  • Read Financial Freedom with Real Estate Investing

What makes Alex believe he can be successful

  • Less baggage at age 18
  • Raised to believe he can do anything he wants

Why Alex chose real estate over college

  • Not sure what major he wanted to pursue
  • Can still meet new people and live on his own 

How Alex’s friends and family reacted to his decision

  • Other friends not going to college
  • Parents very supportive

The first steps Alex is taking to pursue multifamily

  • Devote time to learning and networking
  • Look for partner to ‘get bigger deal done faster’

Why Alex invested in our mentoring program

  • Wants someone to push him
  • Make fewer mistakes

Alex’s personal WHY statement

  • Lead others to freedom
  • Positively impact others

How Alex is getting the most out of mentorship

  • Plan next steps each week
  • Go into conversations with investors prepared

How Alex thinks about getting through bad days

  • Purpose keeps pushing forward
  • Consistency is what matters

Why Alex agreed to document his journey with us

  • Help teach and inspire others
  • Holds him accountable

Alex’s concerns with sharing his journey on social 

  • Pressure to do deal in certain time frame
  • Doesn’t want to let people down

Connect with Alex Mandaro

Follow Alex’s Journey on Instagram 

Follow Alex’s Journey on TikTok 

Follow Alex’s Journey on YouTube

Resources

Access Michael’s Free Resources in the Freedom Vault 

Learn More About Michael’s Mentoring Program

Review the Podcast on iTunes

Financial Freedom with Real Estate Investing by Michael Blank 

Rich Dad Poor Dad by Robert T. Kiyosaki

Grant Cardone on Financial Freedom with Real Estate Investing EP188

The Miracle Equation by Hal Elrod

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Michael on TikTok

Apartment Investor Network Facebook Group 

Podcast Show Notes

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP305.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Using renewable energy to power a multifamily property is not just for environmentalists anymore. 

As the political environment shifts, going green doesn’t just make the world a better place. It’s also highly profitable.

John Matheson is Managing Member and Sustainable Building Consultant at  J. Healy Development, where he has developed an expertise in helping multifamily operators increase profits through renewable energy and ecofriendly building methods. 

He also serves as Cofounder and CEO of Leverage Finance Software, a platform that supports property investors in making smarter and more informed lender financing decisions.

On this episode of Financial Freedom with Real Estate Investing, John joins cohost Garrett Lynch and me to explain how he adds value to a property with rooftop or on-the-ground solar power. 

He describes the benefits of partnering with a solar developer and discusses the financial incentives associated with installing renewable energy across a multifamily portfolio.

Listen in for insight on planning for panel maintenance and learn how to add a revenue stream to your multifamily business in 6 to 18 months with solar energy!

Key Takeaways 

How John creates inventory as a permitting specialist

  • Build relationships in individual municipalities
  • Build to rent or flip permits to big developers

How John adds value to a property with solar power

  • Lease rooftop or land to solar developer
  • Supply power to building, sell residual to grid

How renewable energy credits or RECs work

  • Tenants pay less per kilowatt hour for energy
  • State pays multifamily operator as incentive 

The benefits of partnering with a solar developer

  • Federal tax credit of 26% to 30% for installation
  • Take advantage of renewable energy lenders

What factors to consider as you plan to install solar

  • Build in cost of panel maintenance
  • Must remove panels to renovate roof

The timeline for installing rooftop or ground solar

  • Smaller system, faster it goes
  • 6 to 18 months to cashflow

How renewable energy attracts tenants

  • Mention sustainability in marketing
  • Certain kind of tenant will pay more

Connect with John Matheson

Healy Development

Leverage Finance Software

Resources

Access Michael’s Free Resources in the Freedom Vault 

Be a Part of Michael’s Deal Maker’s Mastermind

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

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

Review the Podcast on iTunes

Financial Freedom with Real Estate Investing by Michael Blank 

Federal Solar Tax Credit

Build Back Better 

eConserve Multifamily Water Conservation Solutions

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_EP304.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Can you be successful in real estate investing and successful at a demanding job at the same time? 

Andrew Schutsky serves as the CIO of a $700M medical technology company. He also happens to be the founder of multifamily syndication firm Redline Equity and host of The Crushing Cashflow Podcast

Andrew has 14 years of real estate rental experience but didn’t enter the multifamily space until last year. Since then, he has built a portfolio of 1100 units!

On this episode of Financial Freedom with Real Estate Investing, Andrew joins cohost Garrett Lynch and me to explain how he built a real estate business while working an executive level W-2 job. 

He describes how he networked into his first deal and offers advice on finding a partner who complements your strengths. 

Listen in for insight on the strategy of time budgeting and find out how Andrew is making time for his family, his full-time job and financial freedom.

Key Takeaways 

What inspired Andrew’s interest in real estate

  • Want to make best use of money 
  • Realized could replace income later

Andrew’s shift to multifamily

  • Came across blog of local syndicator
  • Networked into first deal

Andrew’s advice on finding a partner

  • Share criteria, e.g.: 50- to 125-unit deals
  • Align objectives and values

 How Andrew balances real estate with his W-2

  • Devote 15 to 20 hours/week 
  • Work in 5 to 7AM window

Andrew’s strategy of time budgeting

  • Decide how to spend time, audit often
  • Break down to align with goals

How Andrew makes time for his family

  • Sacred window from 7 to 9PM
  • Wife holds accountable if off track

Andrew’s morning routine

  • Read 20 pages or listen to podcast
  • Meditation or 15-minute workout

How Andrew stays on track to reach his goals

  • Join/create accountability groups
  • Post goals and track progress

How Andrew thinks about his W-2 job

  • Can't control what will happen
  • Option to exit in 2 years

What financial freedom means to Andrew

  • Cover expenses with passive income
  • Spend 40 on family and passions

Andrew’s advice to aspiring investors

  • Find fun in chaos
  • Be ruthless in how invest time
  • Focus on your strengths

Connect with Andrew Schutsky

Redline Equity

Redline Equity on LinkedIn

Redline Equity on Facebook

The Crushing Cashflow Podcast

Crushing Cashflow on LinkedIn

Crushing Cashflow on Facebook 

Andrew on LinkedIn 

Email andrew@investwithredline.com 

Resources

Access Michael’s Free Resources in the Freedom Vault 

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Review the Podcast on iTunes [Text CONTEST to 66866]

Financial Freedom with Real Estate Investing by Michael Blank 

The 80/20 Rule on Financial Freedom with Real Estate Investing EP289 

BiggerPockets

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_EP303.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

It’s a common misconception in multifamily investing that you have to start small. But Chris Roberts looked beyond his first deal to envision a multimillion-dollar real estate business. He accelerated his success by thinking BIG from the beginning, acquiring nearly 1,000 units worth $69M in just three years. So, what’s the secret to scaling fast the way Chris did?

Chris is the Founder and CEO of Sterling Rhino Capital, where he specializes in commercial debt, managing financials and investor relations. A full-time entrepreneur and investor since 2007, Chris started his real estate career by renovating, flipping and renting dozens of single-family properties. But after attending one of our events, Chris shifted his focus to helping people create cashflow by investing in larger apartment buildings of 100 units or more. 

On this episode of Financial Freedom with Real Estate Investing, Chris joins cohost Garrett Lynch and me to share the process he used to scale quickly and achieve financial freedom. He explains why finding the right partner was key in growing Sterling Rhino and describes his team's make-it-personal approach to finding deals and raising money. Listen in for Chris’ insight on investing in mentorship and find out what it takes to build a BIG real estate investing business—in very little time.

Key Takeaways 

What inspired Chris to invest in multifamily real estate

  • Motivated by money at first
  • Passive cashflow = freedom

The mindset shift that propelled Chris into action

  • Realized one person’s decision could change future
  • Would much rather control own destiny

The process Chris used to scale quickly

  • Take massive action
  • Invest in tools, mentors for support

Chris’ transition from sales and marketing to multifamily

  • Already people person, love business planning
  • Had to overcome fears and bring on team

How Chris and his business partner divide roles

  • Paul excels at numbers, analytics and systems
  • Chris focuses on investor relations

Chris’ approach to deal flow and raising money

  • Set yourself apart by ‘making it personal’
  • Create frictionless process of doing business

What Chris is doing to handle scaling quickly

  • Software to manage assets and team
  • Grow team

Chris’ advice on how to scale fast in multifamily

  • Don’t be afraid to partner
  • Join programs for tools, guidance and networking

Connect with Chris Roberts

Sterling Rhino Capital 

Sterling Rhino on YouTube 

Sterling Rhino on Facebook 

Sterling Rhino on LinkedIn 

Charging Forward Podcast

Resources

Get Tickets for Deal Maker Bootcamp

Learn More About Michael’s Mentoring Program

Join the Deal Maker’s Mastermind

Register for the Deal Maker Certification Program

Buy Michael’s Syndicated Deal Analyzer 

Access Michael’s Free Resources in the Freedom Vault

Join the Nighthawk Equity Investor Club

Review the Podcast on iTunes [Text CONTEST to 66866]

Financial Freedom with Real Estate Investing by Michael Blank

ActiveCampaign

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_EP302.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

In a culture with an aversion to failure, learning something new is scary. So, what is the best way to build new skills? How much information do you need before you start doing? And how do you keep moving forward when it gets hard?

Real Estate Investor and Developer Jerome Maldonado got his start in direct sales and built a six-figure network marketing business in his mid-20’s. He leveraged those skills in team building and sales mastery to pivot into real estate and construction. Today, Jerome runs an eight-figure empire, and he is currently focused on land development and multifamily investing.

On this episode of Financial Freedom with Real Estate Investing, Jerome joins cohost Garrett Lynch and me to share his blueprint for getting into a new business and offer advice on how to stick with something when it gets hard. He explains how he developed such a strong work ethic, describing how he built a successful construction business and what inspired his pivot to buying land. Listen in for insight on minimizing risk as a land developer and learn Jerome’s secret to developing new skills as an entrepreneur and real estate investor!

Key Takeaways 

How Jerome developed a strong work ethic

  • Parents set example growing up
  • Learned from competitive sports

What skills most contribute to Jerome’s success

  • Consistency
  • Stay focused through difficult times

Jerome’s advice on sticking with something

  • Have faith in what you’re doing
  • Press yourself in multiple ways

 How Jerome built a successful construction business

  • Helped brother-in-law take over crew
  • Leveraged sales experience to win big bids

What inspired Jerome’s pivot to buying land

  • Met developer at construction site
  • Not afraid to ask questions about business

Jerome’s blueprint for getting into a new business

  • Take time to get educate yourself
  • Be a DOER (but be methodical)

Jerome’s reduce-the-risk approach to land development

  • Work through entitlements during due diligence
  • Ready to start immediately once land acquired

How to learn more about land development

  • Surround yourself with right people
  • Inundate yourself with material
  • Give up equity to veteran partner on first deal

Connect with Jerome Maldonado

Jerome’s Website 

Jerome on Twitter 

Jerome on Instagram 

Jerome on Facebook 

Jerome on YouTube

Resources

Get Tickets for Deal Maker Bootcamp

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

Review the Podcast on iTunes [Text CONTEST to 66866] 

Access Michael’s Free Resources at the Freedom Vault

Learn More About Michael’s Mentoring Program

Financial Freedom with Real Estate Investing by Michael Blank

Tai Lopez 

Grant Cardone on Financial Freedom with Real Estate Investing EP188

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_EP301.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

We had some inspiring guests on the podcast in 2021, all with their own particular interest or expertise around achieving financial freedom. But the one thing they all have in common is the powerful combination of hard work and passion it takes to achieve next-level success.

So, what were some of the highlights from our interviews this past year? What are my top takeaways from the entrepreneurs and real estate investors who appeared on the show?

On this episode, I’m sharing the Best of 2021 on Financial Freedom with Real Estate Investing, beginning with Jordan Harbinger’s insight on building relationships BEFORE you need them and Brandon Turner’s simple approach to developing your personal brand.

We revisit John Lee Dumas’ dynamic formula for becoming a person of value, Joe Fairless’ perspective on raising capital through a fund and Chad Williams’ thoughts on applying Navy SEAL principles to your multifamily business.

Listen in as we look back at Liz Faircloth’s commitment to building the Real Estate InvestHER community, Jenny Gou’s experience of leaving her high-paying corporate job for real estate, and Ronan McMahon’s understanding of opportunities to invest internationally!

Key Takeaways

Jordan Harbinger’s proactive approach to networking

  • ‘Dig the well before you’re thirsty’
  • Don’t wait until you need something to reach out

Brandon Turner’s insight on building a personal brand

  • Consider how people already think about you
  • Lean into what you’re good at (simplicity is key)

John Lee Dumas’ take on what it takes to be successful

  • Hard work + passion wins every time
  • We develop passion for things we’re good at

Liz Faircloth's passion for the Real Estate InvestHER community

  • Support women investors, provide role models
  • Thrive better in marriage to have own business

Joe Fairless’ insight on raising capital through a fund

  • Con = miss out on ‘lightning in a bottle’
  • Pro = spread out capital raise over time

Chad Williams’ take on applying SEAL principles to multifamily

  • Control emotions regardless of circumstances
  • Take on role of servant leader

Jenny Gou’s experience of quitting her job for real estate

  • Inspired by desire to prioritize time with family
  • Left corporate job, grew to 800 units in 10 months

Ronan McMahon’s insight on investing internationally

  • Big buying moment always happening somewhere
  • Identify places with significant upside potential

Resources

Register for Michael’s Deal Maker Bootcamp

Access Michael’s Deal Maker Certification

Join the Deal Maker Mastermind

Learn More About Michael’s Mentoring Program

Get Your Tickets for Deal Maker Live

Download Free Resources from The Freedom Vault

Review the Podcast on iTunes [Text ‘contest’ to 66866]

Financial Freedom with Real Estate Investing by Michael Blank

Dig Your Well Before You’re Thirsty: The Only Networking Book You’ll Ever Need by Harvey Mackay

GoBundance

BiggerPockets

Dave Meyer’s Data Deli on Instagram

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_EP300.mp3
Category:Commercial Real Estate -- posted at: 12:00pm EDT

One of the best things you can do for yourself at the end of each year is take time to reflect on what you’ve learned and achieved. Celebrate your wins and apply the lessons learned as you plan for the year to come.

On this solo episode of Financial Freedom with Real Estate Investing, I reflect on 2021 through the lens of our core values here at the Michael Blank brands, sharing what I’ve learned about making intentional decisions based on what’s really important to you.

I discuss some of the milestones we’ve achieved in the last year, celebrating the launch of our Deal Maker Certification program and the three deals we closed through our investing arm, Nighthawk Equity.

Listen in for insight into the market outlook for multifamily in 2022 and find out what we’ve got planned for the new year—and how YOU can be part of our mission to help 1,000 families achieve financial freedom in the next five years!

Key Takeaways

The benefit of examining your core values

  • Focus on what’s important and make decisions accordingly
  • Align with right partners, team members and community

Our core values here at The Michael Blank brands

  1. Do what you say
  2. Do your best
  3. Make a difference
  4. Get stuff done

The Michael Blank brands milestones for 2021

  • Onboard several new team members
  • Host Deal Maker Live (first in-person event since COVID)
  • 1,000 reviews of book on Amazon
  • Launch Deal Maker Certification
  • Mentoring students close 1 deal/ week
  • Consolidate free resources at The Freedom Vault

Our podcast milestones in 2021

  • Rebrand to better reflect mission
  • Surpassed 3M downloads
  • Notable guests (Jordan Harbinger, David Meltzer, etc.)

Nighthawk Equity milestones for 2021

  • Closed 3 deals totaling 491 units, $90M
  • Built social media presence on LinkedIn and Instagram
  • Completed value-add renovations at 3 properties

My top lessons learned in 2021

  • Know core values and be intentional
  • Surround self with quality partners

The Michael Blank brands plan for 2022

  • Help 1,000 families become financially free in next 5 years
  • Build out Deal Maker Journey programs
  • Expand team and introduce new faces/voices

Why we believe multifamily will continue to do well in 2022

  • Millennials prefer to rent rather than own
  • Opportunities to increase value of assets

Why multifamily prices are likely go up in 2022

  • Growing inflation and higher incomes
  • Ongoing low interest rates, demand for affordable housing

My advice on creating an intentional plan for 2022

  • Reflect on what worked and what didn’t in last year
  • Write vivid vision and plan goals accordingly
  • Get clear on what financial freedom means to you

Resources

Get Your Tickets for Deal Maker Live

Access Michael’s Deal Maker Certification

Learn More About Michael’s Mentoring Program

Download Free Resources from The Freedom Vault

Join the Nighthawk Equity Investor Club

Register for Michael’s Deal Maker Bootcamp

Join the Deal Maker Mastermind

Review the Podcast on iTunes

Uganda Counseling and Support Services

Syndicated Deal Analyzer

The Core Value Equation: A Framework to Drive Results, Create Limitless Scale and Win the War for Talent by Darius Mirshahzadeh

Core Values on Financial Freedom with Real Estate Investing EP292

Navy SEAL Chad Williams

Financial Freedom with Real Estate Investing by Michael Blank

Nighthawk Equity on LinkedIn

Nighthawk Equity on Instagram

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

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

Five Minute Journal App

The State of Multifamily on Financial Freedom with Real Estate Investing EP283

Consumer Price Index

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_EP299.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

The more truth you put to any problem, the easier it is to solve. So, if you want to quit your W-2 job, start by doing the math. Because once you know how much you need to cover your living expenses, it’s just a matter of building your multifamily portfolio step by step until you achieve financial freedom.

Mandy McAllister is Managing Member of Good Fortune Capital and Cofounder of the Aspiring Women Achieving More community. After years of chasing a commission, Mandy retired from her 9-to-5 in medical device sales to pursue multifamily investing full time. Today, she’s on a mission to help others define their own path to financial freedom.

On this episode of Financial Freedom with Real Estate Investing, Mandy joins cohost Garrett Lynch and me to share her take on the different levels of financial freedom, describing how she calculated her freedom number—and achieved it 12 months later. She explains why she started small, working her way up to large multifamily properties acquired in joint venture partnerships. Listen in for Mandy's insight on securing debt to match your business plan and learn how to leverage multifamily investing to break free of YOUR golden handcuffs and live a life by design!

Key Takeaways

When Mandy started thinking about quitting her job

  • Bought fourplex when son was born as college fund
  • Saw potential to retire on cashflow with more deals

Mandy’s take on the different levels of financial freedom

  1. Cover minimum living expenses
  2. Cover current living expenses
  3. Replace income
  4. Replace income plus buffer

How Mandy financed her multifamily deals

  • Use equity in other properties for deals < 20 units
  • Took on partners in JV structures for > 50 units

How to decide whether to start small or go big right away

  • Depends on individual goals
  • Advantages to going larger

What Mandy looks for in a multifamily deal

  • B class asset with quality long-term debt
  • Size agnostic (less competition for 50-unit deals)

What Mandy looks for in a joint venture partnership

  • Someone on same page who you can trust
  • Important to have different strengths

Why Mandy sees long-term debt as the ultimate flexibility

  • 15-year loan on recent 53-unit acquisition
  • Terms allow for 3 potential exit strategies

What Mandy is doing to ensure consistent deal flow

  • Network with young, hungry investors at Meetup
  • Potential JVs look for deals that fit her criteria

Where Mandy is looking to invest right now

  • Strong growth markets in Midwest
  • Drive there and back before dinner

How COVID influenced Mandy’s decision to quit her job

  • Did 4 transaction in 3 months with extra time
  • Brought in double W-2 income

What Mandy is looking forward to moving forward

  • Impact as many lives as possible
  • Help others remove golden handcuffs

Connect with Mandy McAllister

Mandy’s Website

Good Fortune Capital

Aspiring Women Achieving More

Mandy on Instagram

Mandy on Facebook

Mandy on YouTube

Mandy on LinkedIn

Resources

Get Tickets for Deal Maker Bootcamp

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

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

Mint

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_EP298.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What will make you happy? Yes, money gives us the freedom to retire early and spend our days on a beach somewhere. But it doesn't take long to realize that a fulfilling life requires purpose and meaning. That the end goal is not success but significance. 

Bestselling author and Top 100 Business Coach David Meltzer is the cofounder of Sports 1 Marketing and former CEO of Leigh Steinberg Sports & Entertainment, the agency that inspired the film Jerry Maguire. David is also the executive producer of the television series 2 Minute Drill and Office Hours and host of The Playbook Podcast. His life’s mission is to empower one billion people to be happy.

On this episode of Financial Freedom with Real Estate Investing, David joins cohost Garrett Lynch and me to explain what he learned from his biggest failure, describing the abundance mindset he used to bounce back from losing $100M. He shares his daily habits for achieving success and fulfillment, challenging us to adopt an attitude of gratitude and prioritize what really matters. Listen in for David's insight on reframing failure and learn to engage in the consistent, persistent pursuit of YOUR greatest potential!

Key Takeaways 

What David learned from losing $100M and going bankrupt

  • When you appreciate what you have, it grows
  • More than enough of everything for everyone

David’s quest to empower over 1B people with happiness

  • Teach gratitude, forgiveness and accountability
  • Help people prioritize and apply their WHY

David’s daily habits for achieving next-level success

  • Take daily inventory of what you want 
  • Know your what, who and how
  • Know your now (priorities, non-negotiables)
  • Clear any interference between you & God

Why David builds his calendar around 5-minute coaching

  • Leads to productivity, accessibility and gratitude
  • Prioritize discussion around what really matters

How David’s definition of success has changed over time

  • Used to be defined by bank account
  • Now consistent, persistent pursuit of potential

Connect with David Meltzer 

David’s Website

Email david@dmeltzer.com 

The Playbook Podcast

Resources 

Review the Podcast on Apple [Text CONTEST to 66866]

Learn More About Michael’s Mentoring Program 

Get Tickets for Deal Maker Bootcamp 

Join Michael’s Deal Maker Certification Program

Uganda Counseling and Support Services 

Financial Freedom with Real Estate Investing by Michael Blank

2 Minute Drill

Office Hours with David Meltzer 

Game-Time Decision Making: High-Scoring Business Strategies from the Biggest Name in Sports by David Meltzer 

Connected to Goodness: Manifest Everything You Desire in Business and Life by David Meltzer with Harrison Lebowitz

Bob Proctor

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_EP297.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

How do you get brokers to take you seriously if you’re brand new to multifamily? Savannah Arroyo and her husband Lupe talked to 50 brokers before they found one who was willing to work with them. But that relationship led to three deals in nine months, allowing Savannah to quit her full-time job as an RN!

Savannah is the Founder of Networth Nurse, a platform designed to help healthcare professionals stop living paycheck to paycheck. Through the Networth Nurse blog and YouTube channel, she educates and empowers her colleagues around personal finance and multifamily investing. Savannah and her husband Lupe leveraged the Michael Blank Mentoring Program to accelerate their success, partnering with other students in our network to close three syndications and replace her income as a nurse in under a year.

On this episode of Financial Freedom with Real Estate Investing, Savannah joins cohost Garrett Lynch and me to explain how she got that first broker to take her seriously. She describes how she and Lupe created a five-year game plan for their real estate business and then put in the reps, taking daily action to realize that vision. Listen in to understand the benefits of investing in your multifamily education and learn how Savannah is scaling her portfolio through partnerships and the Networth Nurse platform.

Key Takeaways 

The freedom of choice real estate gives Savannah

  • Still works as RN when she wants
  • Very involved in children’s lives

What inspired Savannah and her husband to pursue real estate

  • Way to invest that puts money in pockets now
  • Strategy to grow wealth, earn passive income

How Savannah and Lupe came up with a real estate game plan

  • Set vision for 5 years out and worked backward
  • Got educated and invested in coaching

How Savannah got started with single family rentals

  • Lender told about $100K of equity in home
  • Used debt to buy income-producing assets 

Why Savannah transitioned from SFH rentals to multifamily

  • Realized scale necessary to achieve vision
  • Healthcare operations skill set translates to apartments

How Savannah pursued real estate while working full time

  • Work on real estate from 8 to 12pm every day
  • Built-in accountability partner in husband

How Savannah overcame limiting beliefs around raising money

  • Trusted with leadership role at work 
  • Mitigate risk with research and underwriting

How to get brokers to take you seriously as a new investor

  • Be specific about what you’re looking for
  • Provide feedback on deals within 48 hours

Savannah’s first multifamily deal

  • $1M 12-unit in Oregon financed through credit union
  • Struggled to raise $350K from friends and family

Why Savannah decided to invest in coaching

  1. Leverage mentor’s experience to avoid mistakes
  2. Momentum to get into first deal much quicker

What Savannah is doing to scale the business

  • Partner with other investors to raise capital
  • Build online platform with Networth Nurse

How Savannah and her husband share responsibilities

  • Husband does acquisitions and asset management
  • Savannah raises capital and does marketing

Savannah’s advice for aspiring multifamily investors

  • Reach out to someone doing what you want
  • Research and get educated with podcasts, networking

Connect with Savannah Arroyo 

Networth Nurse 

Networth Nurse on YouTube 

Networth Nurse on Instagram 

Networth Nurse on LinkedIn 

Networth Nurse on Facebook

Resources 

Get Tickets for Deal Maker Bootcamp 

Learn More About Michael’s Mentoring Program 

Register for Deal Maker Live

Join Michael’s Deal Maker Certification Program

Financial Freedom with Real Estate Investing by Michael Blank

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

BiggerPockets

Dave Ramsey

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_EP296.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

John Lee Dumas spent the first 32 years of his life chasing the almighty dollar—with little success. But when he took Albert Einstein’s advice and decided to become a man of value, that’s when JLD got a taste of success.

JLD is the host of the award-winning podcast Entrepreneurs on Fire, which has racked up over 100M listens and 3K five-star reviews since its launch in 2012. Through EOF, he has interviewed more than 3K of the world’s most successful entrepreneurs, delivering the inspiration and strategies listeners need to FIRE UP their own entrepreneurial journey. JLD is also the author of The Common Path to Uncommon Success: A Roadmap to Financial Freedom and Fulfillment.

On this episode of Financial Freedom with Real Estate Investing, JLD joins cohost Garrett Lynch and me to discuss his early struggle to succeed and explain how he approaches the podcast as a way to provide value. He reflects on the powerful combination between hard work and passion, sharing the lessons he’s learned from elite entrepreneurs around productivity, discipline and focusing on one path to success. Listen in for JLD’s method of deciding which opportunities to pursue (investment and otherwise) and find out how achieving financial freedom can help YOU bring big-time value to the world.

Key Takeaways 

Why JLD struggled to succeed prior to EOF

  • Dealt with PTSD after tour in Iraq
  • Chase success vs. provide value

JLD’s short career in commercial real estate

  • Commit to one year as junior broker
  • Felt no excitement for closing deals

JLD’s approach to starting the podcast

  • Think long-term and be patient
  • 18-month window to earn revenue

Why hard work isn’t enough to succeed

  • Hard work + passion win every time
  • Grow to love things you’re good at

Why financial freedom is important to JLD

  • Utility of money brings joy
  • Lack causes anxiety and overwhelm

The key themes in The Common Path...

  • Steps to make more than you spend
  • Become #1 solution to real problem

What JLD is investing in right now

  • Cryptocurrency and NFTs
  • Angel invest in startups

JLD’s top takeaways from 3K interviews

  • Focus on producing right content
  • Discipline to execute on plan
  • Focus on one course to success

How JLD picks what opportunities to pursue

  • If it’s not a hell yes, it’s a no
  • Miss great opportunities if plate full

How JLD decides what to invest in

  • Research and find mentors in space
  • Believe in value company brings

Connect with John Lee Dumas 

Entrepreneurs on Fire 

The Common Path to Uncommon Success: A Roadmap to Financial Freedom and Fulfillment by John Lee Dumas

Resources 

Get Tickets for Deal Maker Bootcamp 

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club 

Financial Freedom with Real Estate Investing by Michael Blank

Rich Dad Poor Dad by Robert T. Kiyosaki 

Hell Yeah or No: What’s Worth Doing by Derek Sivers 

CryptoDads 

Mutant Punks 

Mutant Cats 

HEAD DAO

NFTs on Fire Podcast 

Michael Hyatt’s Desire Zone

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_EP295.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Robert Kiyosaki’s Cone of Learning illustrates that while we only remember 10% of what we read after two weeks, we recall a full 90% of what we say and do. And that’s why aspiring investors who work through a simulation of their first deal are so much more confident than those who don’t practice the process beforehand. 

But what does it look like to simulate your first multifamily deal? Where can you go to rehearse the steps in the Deal Maker Blueprint and gain the confidence to follow through?

On this episode of Financial Freedom with Real Estate Investing, Nighthawk Equity President Drew Kniffin joins me to discuss our upcoming Deal Maker Bootcamp in Orlando this January and explain how the workshop simulates the process of finding and closing on your first multifamily deal.

We explore the benefits of simulating your first deal and following a proven process, challenging you to master the critical skill of analyzing deals quickly and accurately. 

Listen in for insight on the three kinds of people you need in your real estate network (and where to find them) and learn our top strategies for simulating your first apartment deal and building confidence while you practice in a safe environment.

Key Takeaways 

Robert Kiyosaki’s Cone of Learning

  • Remember 10% of what we read
  • Remember 50% of what we see and hear
  • Remember 90% of what we say and do

The benefits of simulating your first deal

  • Builds confidence
  • Know what to expect if LOI accepted

How to simulate your first multifamily deal

  • Practice in throw away market
  • Visit larger properties
  • Build sample deal package

The 3 kinds of people you should network with

  1. Peer group (Deal Maker’s Mastermind)
  2. Mentors who’ve done what you want
  3. Partners with complementary skills

Why we recommend following a proven process

  • Don’t have figure out next step on own
  • Avoid expensive mistakes

The benefit of being able to analyze deals

  • Need for negotiating and making offers
  • Confidence to talk to brokers/investors

Connect with Drew Kniffin

Nighthawk Equity

Drew on Twitter

Drew on LinkedIn

Resources 

Register for Michael’s Deal Maker Bootcamp 

Learn More About Michael’s Mentoring Program

Join Michael’s Deal Maker’s Mastermind

Learn More About Deal Maker Live 

Get Michael’s Blueprint to Your First Multifamily Deal

Access Michael’s Syndicated Deal Analyzer

Join the Nighthawk Equity Investor Club

Financial Freedom with Real Estate Investing by Michael Blank 

Robert Kiyosaki’s Cone of Learning 

Sample Deal Package 

The Deal Maker Certification on MB EP262 

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_EP294.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Imagine having the ability to raise $100M for syndication deals in less than 18 months on your favorite social media platform! The fact is, you can take advantage of Facebook, Instagram and even TikTok to reach accredited investors and build connection until they trust you with their money. But how do you create a personal brand and grow an audience online?

Brandon Turner is a real estate investor, entrepreneur, speaker and host of the BiggerPockets Podcast. He serves as Founder and Managing Partner at Open Door Capital, a firm that focuses on value-add multifamily properties and mobile home parks. Brandon is also the coauthor of the recently released two-volume series The Multifamily Millionaire

On this episode of Financial Freedom with Real Estate Investing, Brandon joins cohost Garrett Lynch and me to discuss his recent shift to large multifamily projects, explaining how his platform allows him to raise tens of millions in days on Instagram. He shares his passion for mobile home parks, challenging aspiring investors to ‘follow our fire’ and surround ourselves with the people doing what we want. Listen in for Brandon’s insight on building a personal brand and learn to leverage the power of a platform to scale your syndication business!

Key Takeaways 

What inspired Brandon’s shift to large multifamily

  • Got in room with investors doing bigger projects
  • Realized not aligned with what could be doing

Why Brandon is fired up about mobile home parks

  • Wanted to be at bottom of market in recession
  • Love challenge of hard things (passion = suffering)

Brandon’s pivot to large multifamily syndications

  • Bring ability to raise capital to JV partnerships
  • 3 deals worth more than 20 mobile home parks

Why Brandon likes building his platform on Instagram

  • Good for getting people to know, like and trust you
  • People choose to invest based on how you live

How Brandon would build a following if he had to start over

  • Use Instagram reels/TikTok to reach lots of people
  • Build connection on Instagram, funnel to email list

Why Brandon is building his email and text lists

  • Instagram can’t take away addresses or phone #s
  • Reach out to accredited investors (high open rate)

Brandon’s insight on building a personal brand

  • How other people feel when think about you
  • Lean into what people say, e.g.: @thedatadeli

The pros and cons of investing in small multifamily

  • Less cash required and easier to manage
  • Can only get so big, more competition on deals

The pros and cons of investing in large multifamily 

  • More risk, must be good at business
  • Can scale quickly and buy $1B in short time

Brandon’s advice to aspiring multifamily investors

  • Option 1—learn with small projects and scale up
  • Option 2—bypass with help of mentor/partner
  • Follow your fire

Connect with Brandon Turner 

Brandon on Instagram

Brandon on TikTok

Brandon on BiggerPockets 

The Multifamily Millionaire, Volume I by Brandon Turner and Brian Murray

The Multifamily Millionaire, Volume II by Brandon Turner and Brian Murray

Resources 

Find Out More About Michael’s Platform Builders Masterclass

Get Tickets for Deal Maker Bootcamp 

Join the Nighthawk Equity Investor Club

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

Register for Deal Maker Live

Learn More About Michael’s Mentoring Program 

Financial Freedom with Real Estate Investing by Michael Blank

Brandon Turner on Financial Freedom with Real Estate Investing EP221 

BPCON

Brian Murray on LinkedIn 

Slybroadcast 

Dave Meyer on Instagram 

Joe Fairless 

Grant Cardone 

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_EP293.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Multifamily investing is a team sport. And choosing the right partners and team members is critical. But how do you go about determining who is a good fit for your organization and who isn’t?

On this solo episode of Financial Freedom with Real Estate Investing, I discuss the importance of figuring out what you stand for and then using those core values to make decisions in your investing business.

I walk you through the process of determining your core values, explaining how to choose your themes and translate them into easy-to-memorize headers.

Listen in for insight around our core values here at the Michael Blank organization and learn how to get clear on your own values and use them to find the right partners and team members for your investing business! 

Key Takeaways 

The importance of identifying your core values

  • Find quality partners and hire team
  • Use to make important decisions

Our core values here at The Michael Blank brands

  1. Make a difference
  2. Do what you say
  3. Do your best
  4. Get stuff done

How to identify core values in your organization

  1. Themes
  2. Header
  3. Descriptive

The themes we chose at The Michael Blank brands

  • Integrity
  • Excellence & Accountability
  • Teamwork & Contribution
  • Efficiency & Hard Work

How to translate your themes into headers

  • Sticky, user-friendly words and phrases
  • Easily memorized and recalled by team

How to expand your headers into descriptives

  • Describe what core value means
  • Clarify in 4 to 8 detailed sentences

Resources 

Radical Candor: Be a Kick-Ass Boss without Losing Your Humanity by Kim Scott

Who: The A Method for Hiring by Geoff Smart and Randy Street 

The Core Value Equation: A Framework to Drive Results, Create Limitless Scale and Win the War for Talent by Darius Mirshahzadeh

Register for Michael’s Deal Maker Bootcamp 

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Financial Freedom with Real Estate Investing by Michael Blank 

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_EP292.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

While most of us resist setbacks and struggles, both are crucial to our growth. In fact, the most successful investors are those who respond to failure with resilience. Who pick themselves up, dust themselves off and take the next step of uncomfortable action toward their dreams.

Rob Rowsell embodies that kind of human will. In 1999, he was a homeless crack addict living on the streets. Then, he stumbled into a rehab center, and through sheer grit, Rob turned his life around. Today, he is a real estate investor, motivational speaker, multiple business owner and bestselling author of Addicted to Life: How I Went from Homeless to Extraordinary Success and Happiness in a Short Period of Time.

On this episode of Financial Freedom with Real Estate Investing, Rob joins cohost Garrett Lynch and me to share his journey from homeless addict to successful multifamily investor. He explains why so many aspiring investors don’t succeed, challenging us to develop a strong WHY and leverage visualization to reach our goals. Listen in for Rob’s insight on cultivating the mindset you need to take action, grow through the challenges and achieve financial freedom as a multifamily investor!

Key Takeaways 

Rob’s struggle with addiction

  • Hooked on meth and crack cocaine
  • Homeless and unemployable

What inspired Rob’s decision to change

  • Realized on path to death or prison
  • Pain to stay same > pain to change

How Rob got back into society 

  • Choose new people, places and things
  • Willing to take uncomfortable action

Why aspiring investors don’t take action

  • Biggest hurdle = previous successes
  • Lack big enough WHY 

How Rob uses visualization to reach his goals

  • Write out as if already accomplished
  • Read over to instill yearning, belief

The traits of a successful entrepreneur

  • Build momentum via stacked action
  • Willing to act despite uncertainty
  • Grow through catastrophic failure

How Rob used knowledge to build momentum

  • Ziglar taught potential to succeed
  • Saved to buy Carleton Sheets course

How Rob got into real estate

  • Bought auto repair shops no $ down
  • Used hard money for first few SFHs

How Rob grew a 1K-unit multifamily portfolio

  • Start with SFH buy-and-hold strategy
  • Flip SFHs into small multifamily
  • Reinvest profits in larger multifamily

Connect with Rob Rowsell

Addicted to Life

Resources 

Get Tickets for Deal Maker Bootcamp 

Access Michael’s Syndicated Deal Analyzer 

Download Michael’s Deal Maker Blueprint

Learn More About Michael’s Mentoring Program

Addicted to Life: How I Went from Homeless to Extraordinary Success and Happiness in a Short Period of Time by Rob Rowsell

See You at the Top by Zig Ziglar 

Carleton Sheets 

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_EP291.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

While single-family real estate is an individual sport, multifamily investing usually involves partners. But finding someone you trust to work with on a multi-million-dollar apartment deal can be challenging, especially for an introvert. So, how do you overcome limiting beliefs around partnering to become a successful multifamily investor?

Camilla Jeffs is the Founder and CEO of Steady Stream Investments, a firm focused on providing investment opportunities in large multifamily and senior housing communities. Also known as the Introverted Investor, she has served as the GP for four deals in nine months, built a portfolio of 250 units and quit her W-2 job! Camilla has 19 years of experience in real estate, and she is passionate about educating passive investors around the opportunity to achieve financial freedom through multifamily.

On this episode of the Financial Freedom with Real Estate Investing, Camilla joins cohost Garrett Lynch and me to share why it took her 15 years to transition from DIY single-family investor to multifamily GP. She describes the limiting beliefs she carried around partnering with others and explains how she excels at raising capital—despite being an introvert. Listen in for Camilla’s insight on investing for a financial, social and environmental return and learn why networking is key in multifamily syndication. 

Key Takeaways 

Camilla’s experience of quitting her W-2 job

  • Excited to spend days doing what she loves
  • Loves flexibility and freedom in schedule

How Camilla got into real estate investing

  • House hacking out of necessity to start
  • Build portfolio of SFH + small multifamily

What inspired Camilla’s shift to large multifamily 

  • Tired after 15 years of DIY management
  • Spending 4 to 5 hours/day on 15 units

Why it took Camilla so long to try multifamily

  • Limiting beliefs about partnering
  • Didn’t network with other investors 

Why Camilla took on the role of capital raiser

  • Teacher at heart (despite introversion)
  • Help people achieve time freedom

The mindset shift that made Camilla successful

  • Little success with ‘I need your money’
  • Changed pitch to present opportunity

How Camilla thinks about choosing an operator

  • Find through mentoring groups, meetups
  • Different skills but same vision/values

Camilla’s concept of the Investing Trifecta

  1. Financial return
  2. Social return
  3. Environmental return

Connect with Camilla Jeffs 

The Introverted Investor

Camilla on Instagram

Camilla on LinkedIn

Camilla on YouTube

Camilla on TikTok

Resources 

Join the Nighthawk Equity Investor Club

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

Learn More About Michael’s Mentoring Program

Financial Freedom with Real Estate Investing by Michael Blank

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_EP290.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

You may have heard the idea that only 20% of what we do in business produces 80% of the results. And it follows that if you identify the right 20% and focus on that, you can scale a syndication business fast. But what does that look like in practice? How do you apply the 80/20 rule to make decisions around how to spend your time?

Endorsed by Forbes and Inc. Magazine, Perry Marshall is one of the most expensive business strategists in the world and the creator of the world’s largest science research challenge, the $10M Evolution 2.0 Prize. Perry’s reinvention of the Pareto Principle is published in the Harvard Business Review, and he is the author of eight books, including 80/20 Sales and Marketing and Memos from the Head Office.

On this episode of the Financial Freedom with Real Estate Investing, Perry joins cohost Garrett Lynch and me to explain the concept of the Pareto Principle and discuss how it applies to real estate syndication. He describes how we can leverage the 80/20 pattern to scale an investing business, challenging us to focus 50% of our attention on the right 1% of our investments. Listen in for Perry’s advice on identifying and marketing to the right investors and learn how YOU can use the 80/20 rule to prioritize your time as a multifamily syndicator!   

Key Takeaways 

The concept of the 80/20 principle 

  • Originated by Italian economist Vilfredo Pareto
  • Identified 20% of people have 80% of wealth

Perry's realization re: the fractal nature of 80/20

  • Pattern of 80/20 inside every 80/20
  • 1% of customers make 50% of purchases

How a syndication businesses can scale using 80/20 

  • 1% of investments produce 50% of profits
  • Focus half of attention on right 1%

How to identify the 20% of investors to focus on

  • Make prospects DO something to qualify lead
  • Focus marketing on 20%, then repeat process 

Perry’s insight around the 20/120 rule of business

  • 20% of activity makes 120% of revenue
  • Bottom 20% takes you backward

The message in Perry’s book Memos from the Head Office

  • Tap into spirituality and faith for decision-making
  • Listen to insight from God to resolve conflict

Connect with Perry Marshall 

Perry’s Website 

Sell 80/20

Resources 

Register for Michael’s Platform Builders Masterclass

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Financial Freedom with Real Estate Investing by Michael Blank

80/20 Sales and Marketing: The Definitive Guide to Working Less and Making More by Perry Marshall

‘80/20 Is a Fractal Law of Nature’ in Harvard Business Review

John Paul Mendocha

Memos from the Head Office: Channeling the Muse in Business and in Life by Perry Marshall and John Fancher

Ultimate Guide to Google Ads by Perry Marshall, Mike Rhodes and Bryan Todd

Ultimate Guide to Facebook Advertising by Perry Marshall, Keith Krance and Thomas Meloche

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_EP289.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Most people wait until they need something to start networking. But it’s a real challenge to talk people into helping you when they haven’t heard from you in years. On the other hand, if you make networking a priority and ‘dig the well before you’re thirsty,’ those connections become true friends who fight for you when you need it.

Jordan Harbinger is the host of iTunes Top 100 ranked The Jordan Harbinger Show, a podcast where he interviews the world’s top performers, including legendary actors and musicians, intelligence operatives, professional athletes, iconic writers and other visionary change-makers. Jordan is best known for creating one of the leading self-development programs in the world, with a special emphasis on social capital and relationship building.

On this episode of Financial Freedom with Real Estate Investing, Jordan joins cohost Garrett Lynch and me to share his proactive approach to networking, explaining why it’s crucial to build relationships before you need them. He offers insight on making connections with A-listers and other high-net-worth individuals, challenging us to provide value and be ‘politely persistent’ for as long as it takes. Listen in for Jordan’s advice on starting over after the breakup of a business partnership and find out why relationships are the best insurance policy money can’t buy.

Key Takeaways 

How to find the right level of fearlessness and curiosity

  • Can’t throw caution to wind without strategy
  • 'Nobody ever went broke selling when up 10%’

 

 

Jordan’s transition from law to entrepreneurship

  • Firm losing clients when market tanked in ‘08
  • Money saved from Wall Street gave runway
  • Went all-in on weekly radio show (side hustle)

Jordan’s proactive approach to networking

  • Build relationships before you need them
  • Leverage system to keep people top of mind

How Jordan builds relationships with A-listers 

  • Be politely persistent and follow up for years
  • Make it worth their time to work with you

How Jordan provides value to celebrities

  • Make publicist’s job easy, introduce network
  • 'Everybody needs something’

How Jordan started over after a business breakup

  • Took team along (strong relationships) 
  • ‘Best revenge is to live well’

What lessons Jordan learned from starting over

  • Gut check re: who you work with
  • Recognize people grow at different rates
  • Double down on networking

Connect with Jordan Harbinger

The Jordan Harbinger Show 

Jordan’s Networking Course

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Superhuman 

Dig Your Well Before You’re Thirsty: The Only Networking Book You’ll Ever Need by Harvey Mackay

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_EP288.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

If I could go back in time, I’d return to 2010 and take advantage of the big buying moment in real estate at the time. But Ronan McMahon argues that if you set your sights beyond the States, there are circumstances like that at play somewhere in the world right now—if you’re willing to invest in international markets.

Ronan is a contributing editor at International Living and founder of Real Estate Trend Alert, a newsletter where he explores investment opportunities from all over the world. Ronan spends six months of the year on the road, looking for the best real estate investments around the globe. He is also the author of Profit Principle: An Insider’s Guide to Doubling Your Money in Real Estate Overseas.

On this episode of the Financial Freedom with Real Estate Investing, Ronan joins cohost Garrett Lynch and me to explain why investors should consider diversifying with international real estate. He offers insight on the international markets he likes right now, describing how to invest in the path of progress and choose projects with significant upside potential. Listen in for Ronan’s advice on partnering with trusted operators in other countries and learn how his team connects investors with opportunities overseas.

Key Takeaways 

How Ronan got into international real estate investing

  • Invested in home country of Ireland until values too high 
  • Invited to travel, identify projects for International Living

Why investors should consider international real estate

  • Big buying moments always happening somewhere
  • Less competition with other investors vs. US

Ronan’s advice on shortening your learning curve

  • Find trusted partner on ground with local knowledge
  • Start with market one step from home beat (e.g.: Cabo)

Ronan’s insight on securing financing in international markets

  • 'Forget it’ (come with capital)
  • Choose projects with incredibly high returns

The international markets Ronan likes right now

  • Algarve region of Portugal
  • Tulum and Cabo San Lucas, Mexico
  • Panama City

How Ronan’s business model is set up

  • Partner with developers for access to first 100 units
  • Members purchase individual condos at discount

Ronan’s advice on navigating the legal system in other countries

  • Partner with locals in business for multiple generations
  • Little recourse in handshake countries with weak courts

How Ronan’s team navigates regulatory issues outside the US

  • Avoid by connecting developers with individual buyers
  • Mindful of liability around holding title in Mexico

Connect with Ronan McMahon

Real Estate Trend Alert 

Ronan at International Living

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Access Michael’s Blueprint to Your First Multifamily Deal Training

International Living

What Is the Fideicomiso?

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_EP287.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

You might think it would be easy for a well-known flipper to transition to multifamily. But the truth is, a successful career in single-family does NOT translate to the world of apartment building investing.

So, how do you make the leap from single-family rentals and flips to multifamily investor?

J Scott serves as Partner at Bar Down Investments, a multifamily investing firm with a portfolio of 1,000 units. J got his start in single-family real estate and built a reputation in the flipping business, rehabbing 500 properties and authoring four bestselling books in the BiggerPockets library. And then 18 months ago, J made the transition to multifamily investing.

On this episode of the podcast, J joins cohost Garrett Lynch and me to share what inspired his move into multifamily and explain why flipping houses is not the path to financial freedom. He opens up about lacking credibility in the multifamily space, offering insight on how to get brokers to trust you if you’re new to the game. Listen in to understand the 3 things you need to get investors to work with you and learn how to build a reputation in the multifamily space—with or without prior real estate experience!

Key Takeaways 

How J got into the real estate space

  • Work long hours as corporate engineer in tech space
  • Shift to real estate in 2008 to 'put family first'

What inspired J’s transition to multifamily

  • Burned out on flips and single-family rentals
  • Had cash to invest but didn’t trust anyone else

Why flipping houses is not the path to financial freedom

  • Transactional (trade time for money)
  • Need passive income stream

Why it took J so long to make the shift to multifamily

  • Ego (reputation as ‘flip guy’)
  • No credibility in multifamily space

What J did to compensate for his lack of credibility 

  • Admit had to start over, build new relationships
  • Find mentor and add value

How to get brokers to trust you if you’re new to multifamily

  • Partner with someone who has track record
  • Prove serious by underwriting and giving feedback

J’s advice for investors considering a shift to multifamily

  • Build marketing machine for 6 months first
  • Multifamily scales much better

The benefit of having single-family experience

  • Learn mechanics of deal with less money at risk
  • Skills of acquisitions, underwriting, raising money

The 3 things you need to get an investor to work with you

  • Build relationship so they LIKE and TRUST you
  • Make them NEED you (e.g.: retirement plan)

How to differentiate yourself from bigger operators

  • Do what you’re good at, educate new investors
  • Tap into personal network

Connect with J Scott

J’s Website

Bar Down Investments

Resources

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

Access Michael’s Blueprint to Your First Multifamily Deal Training

Financial Freedom with Real Estate Investing by Michael Blank

Books by J Scott

Rich Dad Poor Dad by Robert T. Kiyosaki

Ashley Wilson

How to Win Friends & Influence People by Dale Carnegie

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_EP286_v2.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

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

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

So, you want to go for bigger deals, but your current network is pretty much tapped out. Maybe you struggled to raise $500K for your last deal, and you’d like to add a zero for the next one. How do you attract new investors and scale your capital raise?

Jonathan Barr is the Cofounder and Principal at JB2 Investments, a real estate investment firm specializing in 70-plus-unit value-add projects in high cashflow, landlord-friendly markets. Jonathan began his real estate career in 2009, facilitating the acquisition of 400 residential flips in the LA market that generated $22M in profit for his family’s business. 

On this episode of Financial Freedom with Real Estate Investing, Jonathan joins me to explain what inspired him to invest outside the LA market, sharing the mental blocks he had to overcome to buy properties in the Midwest. Jonathan walks us through his first multifamily deal in Oklahoma City, discussing why he had a hard time raising money for it and how he built an online platform to solve that problem. Listen in for Jonathan’s insight on using Twitter to attract new investors and learn how to scale YOUR ability to raise capital through content creation!

Key Takeaways 

How Jonathan got involved in real estate 

  • Grew up in real estate family in LA
  • Join flip, development business

The pros and cons of working in a family business

  • Feel ultimate support and trust
  • Hierarchy of parent-child relationship

What Jonathan learned in SFH acquisitions that translates to multifamily

  • Conduct due diligence, use checklists to mitigate mistakes
  • Discuss deals with team and bounce ideas

What inspired Jonathan to invest outside the LA market

  • Buy-and-hold duplexes in LA only making 3% in equity
  • Potential to triple cashflow by moving money to KC

Jonathan’s mental block around investing out of the LA market

  • Unable to drive to properties and manage himself
  • Hard to feel comfortable delegating responsibility

Why Jonathan made the shift to multifamily

  • Margins on flips low, always chasing next deal
  • Apartment buildings much more tax efficient

Why Jonathan joined our mentoring program last year

  • Left family business in January 2020
  • Used to having parents as mentors

Jonathan’s first multifamily deal

  • Closed on 72-unit property in OKC in September
  • Cut expenses by 25%, beating projections by 30%

Why Jonathan had a hard time raising money for his first deal

  • First deal in OKC market (no track record there)
  • Uncertainty of pandemic

How Jonathan built an online platform to raise capital

  • Offer free eBook to build email list
  • Post content daily on Twitter

Jonathan’s take on why content creation is so important

  • Gives potential investors insight into business
  • Shows thoughtful and thorough, builds trust

Jonathan’s insight on how to create content

  • Get ideas from questions you get, other podcasts
  • Block off time to write multiple posts at once

Jonathan’s advice for syndicators who are tapped out on capital

  • Post video or blog every week
  • Focus energy on single social platform

Connect with Jonathan Barr

JB2 Investments

JB2 on Facebook 

Jonathan on Twitter

Jonathan on LinkedIn

Resources

Register for Michael’s Platform Builders Masterclass

Learn More About Michael’s Mentoring Program

Enter the Financial Freedom Podcast Launch Contest

The Tax Stack Strategy: The Magic of Paying Less Tax Using Real Estate by Jonathan Barr

Upwork

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_EP276.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

In nearly 300 episodes of the Apartment Building Investing podcast, I’ve talked to big names in real estate like Robert Kiyosaki, Brandon Turner and Grant Cardone. I’ve also had conversations with countless men and women you may not have heard of who achieved financial freedom through multifamily syndications.

And now, Apartment Building Investing is coming to an end. But only because we’re celebrating a new beginning and rebranding the show as Financial Freedom with Real Estate!

On this episode, I explain how Financial Freedom with Real Estate more accurately reflects our mission here at The Michael Blank Organization. I explain what makes investing in apartments better than single family homes, sharing examples of people we’ve empowered to quit their jobs and live a life of purpose through multifamily investing. Listen in for insight on the benefits of our Deal Maker Certification training and find out how to WIN the course in our Financial Freedom Podcast Launch Contest!

Key Takeaways 

Why we’re renaming the podcast Financial Freedom with Real Estate

  • Accurately communicates mission of organization
  • Reach more people thinking about investing

Why apartments are superior to investing in single family homes

  • Performs better in down markets
  • More consistent returns
  • Pay self acquisition fees as syndicator
  • Secure non-recourse debt
  • Control value of property
  • Achieve financial freedom in 2 years

How financial freedom empowers people to live a life of purpose

  • Realize you’re here for something bigger than yourself
  • Sets you up to make impact, become difference-maker

What you learn from our Deal Maker Certification training

  • Proven system to achieve financial freedom with multifamily
  • Process for doing first deal, quitting job and scaling portfolio
  •  

 

 

Resources

Enter to Win the Financial Freedom Podcast Launch Contest

Financial Freedom with Real Estate Investing by Michael Blank

Explore Michael’s Deal Maker Certification Training

Learn More About Michael’s Mentoring Program

Financial Freedom Hall of Fame

Rich Dad Poor Dad by Robert T. Kiyosaki

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_EP275.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Multifamily investors know the advantages of scale. But when it comes to residential assisted living or RAL, bigger isn’t always better. The big-box model often leads to poor healthcare outcomes, treating residents not as individuals but part of a process. So, how can investors scale senior living facilities without compromising care?

Loe Hornbuckle is CEO of Sage Oak Assisted Living and Memory Care and Cofounder of GoodHorn Capital, a real estate investment firm focused on recession-resistant asset classes including build-to-rent and senior living. Loe has a heart for improving the residential assisted living experience, providing residents with both the quality care associated with small RAL facilities and the advantages of scale.

On this episode of Apartment Building Investing, Loe joins cohost Garrett Lynch and me to share his unique, hybrid approach to building assisted living and memory care facilities. Loe explains how his father’s bad experience in hospice inspired his interest in RAL and offers insight on applying his strategy to multifamily deals. Listen in to understand how Loe is solving the scaling problems of residential assisted living and find out if the business of caretaking is right for YOU.

Key Takeaways

Loe’s approach to building assisted living and memory care facilities

  • Unique physical plant and operations (boutique experience)
  • Campus of 10 buildings with 16 residents in each

How Loe is solving the scaling problems of residential assisted living

  • Campus of care homes can use third-party management
  • Much easier to appraise and finance through bank

What Loe’s campus of care homes looks like

  • 5 or 6 homes (9K ft2) + 2-story sales and admin office
  • Homes have four quadrants and commons area

What inspired Loe’s interest in assisted living as an asset class

  • Dad had really bad experience in hospice care
  • Presentation and podcast on converting real estate to RAL

How an investor can get into the business of caretaking

  • Invest as LP with operator you believe in
  • Hire team with medical background

How Loe thinks about processes and systems in RAL

  • Works only up to point to establish baseline
  • Hire for heart and talent, get out of way

The critical hires for a residential assisted living facility

  • Executive director and head of clinical team
  • Look for integrator or visionary

How to apply Loe’s RAL strategy to multifamily investing

  • Analyze deal if converted to age-restricted community
  • Additional tool for competing on deals

Loe’s advice on getting started with residential assisted living

  • Must have heart for business and strong WHY
  • Determine core competencies of team, hire for gaps

Connect with Loe Hornbuckle

Loe on LinkedIn

GoodHorn Capital

Resources

Register for Deal Maker Live

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_274.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Adversity is not optional. Whether you’re a Navy SEAL or a multifamily investor, you’re going to face difficult circumstances. And while you don’t have control over what happens, you DO control how you respond. Are you going to let adversity knock you down? Or will you rise to the occasion? 

Chad Williams the bestselling author of SEAL of God, a memoir of his grueling journey through Naval Ops training and onto the war-torn streets of Iraq. Chad is also a sought-after international speaker, drawing on his experience as Navy SEAL to share lessons around teamwork, integrity, mental toughness and overcoming adversity, and he is set to deliver the keynote address at Deal Maker Live next week in Dallas.

On this episode of Apartment Building Investing, Chad joins cohost Drew Kniffin and me to explain how the principles he mastered as a SEAL apply to multifamily investing, challenging us to be servant leaders and stay calm in the face of adversity. Chad offers advice on staying the course in difficult times, describing how a strong WHY made him one of only 13 SEAL trainees to graduate (in a class of 173). Listen in for Chad’s insight on the choice you have to let adversity be a weight or a wing and learn to be resilient regardless of the challenges life brings your way!

Key Takeaways 

The story of Chad’s final operation in Iraq

  • Hunt men who make suicide vests and roadside bombs
  • Work side by side with Iraqi Special Operations Forces
  • ISOF led final initiative but ambushed during operation

What it looks like to be a servant leader

  • Foster environment of loyalty, trust and sense of family
  • Esteem needs of others as greater than your own

Chad’s advice on how to respond to adversity

  • Find ways to rise to occasion (choose wing vs. weight)
  • Calmness is contagious, true leader controls emotions

The challenge of completing the training to become a SEAL

  • 173 in Chad’s class but only 13 made it to graduation
  • Hell week = 4 hours of sleep in 5½ days, run 200 miles 

How to stay the course and endure through challenging times

  • WHY bigger than just you, e.g.: faith, family or friends
  • What would you write inside your hat?

Connect with Chad Williams

Navy SEAL Chad Williams

SEAL of God by Chad Williams

SEAL of God on Instagram

Resources

Register for Deal Maker Live

Sign Up for Chad’s Deal Maker Live Adventure

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

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

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

Scott Helvenston

Podcast Show Notes

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: ABI_273.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Asset management may not be as sexy as raising money or chasing deals. But it’s the aspect of multifamily investing that makes a deal successful—or not. So, what’s involved in the operation of an apartment building? And how can an asset manager work with their property management team to solve problems together?

Kyle Mitchell is the cofounder of Asset Management Mastery, a platform designed to help multifamily investors become best-in-class operators. Kyle owns and operates a portfolio of 400 units worth $400M in Tucson and Phoenix, Arizona. He is also the coauthor of Best in Class: How to Manage Your Multifamily Asset, Avoid Mistakes and Build Wealth Through Real Estate and serves as a mentor with The Michael Blank organization.

On this episode of Apartment Building Investing, Kyle joins cohost Garrett Lynch and me to discuss the role of a multifamily asset manager, explaining how he conducts monthly secret shopper audits and what KPIs he tracks on a regular basis. Kyle describes what attracted him to the asset management side of the business, discussing how he partners with the property management team to get the best out of a property. Listen in for Kyle’s hands-on approach to renovation management and find out how he is navigating material and labor shortages in the aftermath of the pandemic.

Key Takeaways 

 The role of a multifamily asset manager

  • Hold property management company accountable
  • Partner with PM team to get best out of property

What attracted Kyle to asset management

  • Background in operations at golf courses
  • Identified gap in that side of multifamily business

Why Kyle moved into the market where he invests

  • Easier to build relationships as boots on ground
  • Opportunity to grow portfolio

How Kyle conducts a monthly secret shopper audit

  • 80-point system (send scorecard to PM team)
  • Different phone #, email address and question

What key performance indicators Kyle tracks

  • Marketing metrics (# of leads, conversion ratio)
  • Lease trade-outs, rental and RUBS comps

How Kyle handles multifamily renovation management

  • Property management company has in-house team
  • Track tasks on Trello goal to finish in 21 days

How to navigate the current material and labor shortages

  • Order in bulk and secure storage on site
  • Build deep roster of vendors

What Kyle does when a property manager isn’t performing

  • Direct line to owner of PM company
  • Weekly call to discuss cause of issues

How to be proactive when it comes to asset management

  • Partner or team member with ops experience
  • Reach out to peers in multifamily industry

Connect with Kyle Mitchell

Asset Management Mastery

Asset Management Summit

Asset Management Mastery Podcast

Passive Income Through Multifamily Real Estate Podcast

Best in Class: How to Manage Your Multifamily Asset, Avoid Mistakes and Build Wealth Through Real Estate by Kyle Mitchell and Gary Lipsky

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

Kyle Mitchell on Apartment Building Investing EP172

Neal Bawa’s LASAL Revenue Management System

Conservice: The Utility Experts

Trello

DiSC Assessment

Podcast Show Notes

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: ABI_272.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What does a multifamily investor look like? If you grew up in a working-class family that didn’t talk about money, let alone investing, you may have a hard time seeing yourself as a successful syndicator. But you don’t have to be a Wall Street guy to build a multifamily real estate business. You can raise millions of dollars for deals no matter where you come from… But you’ve got to BELIEVE you can.

Timothy Lyons is a 15-year veteran of the New York City Fire Department and Principal and Managing Partner at Cityside Capital. He invested in his first 3-family property at the end of 2019, and today, he has been involved in 5 syndications worth over $100M. Tim is also a contributor to Bringing Value, Solving Problems and Leaving a Legacy, a collection of powerful stories of transformation from thought leaders, entrepreneurs and real estate investors.

On this episode of Apartment Building Investing, Tim joins cohost Garrett Lynch and me to discuss the power of belief, explaining how he overcame imposter syndrome to build a portfolio of 720-plus units in 12 months. Tim shares why he was skeptical about investing in a coach and how he realized the value of aligning with a network of people who are successful at what you want to do. Listen in for Tim’s amazing story of going all-in on multifamily at the start of the pandemic and learn to push through YOUR limiting beliefs and achieve financial freedom with real estate!

Key Takeaways 

Why Tim got into real estate investing

  • Working 90 hours/week as firefighter and ER nurse
  • Missing out on time with wife and 3 kids

Tim’s first 3-family property

  • Financed with own money for proof of concept
  • Rehabbed units, achieved cashflow soon after

The next steps Tim took to go bigger, faster

  • Invest in education and mentoring
  • Learn as much as possible about money, taxes

 How Tim overcame his resistance to investing in a coach

  • Talked to students in different programs
  • Realized value of aligning with network

The timeline around Tim’s multifamily education

  • Separated from family (first 7 weeks of pandemic)
  • Crush through material in coaching program

How Tim realized the power of multifamily syndication

  • Invited to join coach’s deal, follow process
  • Raised $200K from personal network

How Tim overcame limiting beliefs re: raising money

  • Identity shift to see self as investor
  • Share power of investing with network

How Tim is raising $2.5M for his fifth syndication

  • Talk about what he’s doing with everyone
  • Build online thought leadership platform

Tim’s advice for aspiring multifamily investors

  • Education = antidote to fear
  • Surround self with right people and take action

What Tim did to overcome imposter syndrome

  • Develop willingness to fail forward
  • Connect with fantastic coaches

Connect with Timothy Lyons

Cityside Capital

Bringing Value, Solving Problems and Leaving a Legacy by Tim Lyons et al.

Resources

Invest in Michael’s Deal Maker Certification Training

Register for Deal Maker Live

Learn More About Michael’s Mentoring Program

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

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

Jim Rohn

Zig Ziglar

BiggerPockets

ActiveCampaign

Real Estate Guys Radio

Podcast Show Notes

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: ABI_271.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

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

No question, the hospitality industry is among the hardest hit by COVID-19. And yet, Josh McCallen is thriving. The distressed Renault Winery Resort he bought in December 2018 is sold out for 2021, and revenues are up 200% from last year. So, why is Josh doing well while others are struggling? Are there opportunities for investors in the hospitality space right now? And what can we multifamily syndicators learn from Josh’s others-focused approach to business?

Josh is the hospitality investment expert behind Accountable Equity, a firm specializing in resort value-add and turnaround projects, and VIVÂMEE Hospitality, the management company that operates those assets. In the past two decades, Josh has led over $100M in luxury residential and hospitality construction projects, growing the revenue of the resorts he manages by 10X in less than six years and increasing the appraised value of those properties by 70%.

On this episode of Apartment Building Investing, Josh joins cohost Garrett Lynch and I to share his journey as an entrepreneur and discuss how helping flippers during the boom evolved into the work he does now. He explains how his company’s focus on resorts (not hotels) has helped them thrive despite the pandemic, describing how his team’s expertise in sales drives the kind of distressed assets they buy. Listen in for insight on the opportunities available to investors in the hospitality space right now and learn how a service-based, ministry model helps Josh serve both his guests and investors well.

Key Takeaways

How Josh got his start as an entrepreneur

  • Sold cotton candy to classmates in grade school
  • Paper boy at 12 (collect pay from customers)

When Josh got into real estate

  • Bought duplex with wife in late 1990’s
  • Started helping flippers in 2006

What Josh does in real estate today

  • Runs hospitality development company
  • Acquire distressed resorts for rehab + repositioning

What differentiates VIVÂMEE as a management company

  • Start with core values (dignity of every person)
  • Loyalty and recurring business model

Why Josh is doing well despite the pandemic

  • Focus on resorts (multiple revenue streams)
  • Sell experience, i.e.: wedding at winery
  • Earn revenue now for 2021 and 2022 reservations
  • Room revenue = trailing indicator

What Josh looks for in a property

  • High volume of inbound calls for weddings
  • Older/tired owner losing money, just breaking even

What makes Josh a good operator

  • Experience of taking over for management collapse
  • Treat hospitality as ministry, make guests feel loved

How Josh’s others-focused model extends to his investors

  • Treat investors as guests
  • Apply hospitality to fundraising

How Josh structures a resort deal

  • Charge asset management fee
  • Zero split until investors fully repaid + preferences
  • 50/50 split moving forward

Connect with Josh McCallen

Accountable Equity

Capital Hacking Podcast

Resources

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

VIVÂMEE Hospitality

Rich Dad Poor Dad by Robert T. Kiyosaki

Renault Winery Resort

Renault on Instagram

The Real Estate Guys

Cashflow Ninja

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_246.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

As syndicators, we’d love to work with 1031 exchange investors more often. But the rules make it really, really difficult! It means taking on co-owners (rather than passive investors) and big bucks in legal fees. What if there was an EASIER way to work with 1031 exchange investors? A way that allows them to invest passively in syndication deals, defer their taxes and earn a stable return?

Paul Moore is Managing Partner at Wellings Capital, a firm dedicated to helping high earners and high net worth individuals protect and grow their wealth through commercial real estate investing. A two-time Michigan Entrepreneur of the Year finalist, Paul has founded multiple investment and development companies and co-managed a successful multifamily development. He is the cohost of The Art of Investing and How to Lose Money and a regular contributor to both Fox Business and BiggerPockets.

On this episode of Apartment Building Investing, Paul joins cohost Drew Whitson and I to discuss the disadvantages of the 1031 exchange and explain what makes the strategy incompatible with syndications. He introduces us to the Delaware Statutory Trust (or DST), describing how it solves the problems associated with bringing in 1031 exchange investors and allows them to invest passively in multifamily deals. Listen in for Paul’s insight on what kind of investor is attracted to the DST and learn how YOU can use it to defer taxes and earn a long-term, stable return!

Key Takeaways

The disadvantages of the 1031 exchange for investors

  • Deadlines pressure to overpay/buy wrong asset
  • Difficult to find cash match, total price match
  • Requires co-ownership vs. passive investment

Why 1031 exchanges are incompatible with syndications

  • Tenancy in common agreement to keep control
  • High legal fees, syndicator doesn’t control capital

The fundamentals of the Delaware Statutory Trust

  • Management group acquires asset
  • Sells fractional shares to investors

The benefits of investing in a DST

  • Allows for passive investment
  • Match any amount of money
  • No debt in name
  • Extremely stabilized asset

The disadvantages of investing in a DST

  • Communicate with broker vs. syndicator
  • Broker gets high commission (6% to 9%)
  • Limited upside, very little appreciation

How Paul’s DST addresses the usual disadvantages

  • Invest direct = talk to syndicator
  • Don’t pay up-front commission
  • 10% to 12% projected returns

How Paul is compensated as the operator of the DST

  • Property management fees
  • Acquisition and liquidation fees
  • Scrape (keep returns above 6%)

What kind of investors are attracted to the DST

  • 1031 exchange investors
  • Capital gains, passive depreciation recapture

The limitations of the Delaware Statutory Trust

  • High legal fees for operators to set up
  • Limited upside (structured to be stable)
  • Illiquidity = can’t cash out early
  • Accredited investors only

Connect with Paul Moore

Wellings Capital

Paul on BiggerPockets

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Starker v. United States

Inland Investments

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_245.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Despite the chaos and uncertainty of 2020, we have a lot to be grateful for here at The Michael Blank organization. We have helped 113 people do 128 deals for a total value of $321M. And 22 of our mentees have quit their jobs, thanks to the financial freedom that comes with multifamily real estate investing.

On this episode of Apartment Building Investing, I take the time to reflect on 2020, looking back on our key accomplishments in The Michael Blank organization and sharing our top lessons learned over the past 12 months. I discuss our theme for 2021 and explain what steps we’re taking to better serve our followers and turn them into raving fans. Listen in for insight on the multifamily market outlook for 2021 and learn how YOU can use our resources to achieve financial freedom and help us make a positive impact in the world!

Key Takeaways

Our key accomplishments for 2020 in The Michael Blank organization

  • Right team in place, key hires in marketing and tech
  • Pivot to take Deal Maker Live virtual
  • Hit 10K subscribers on YouTube channel
  • Launch Platform Builders program
  • High-profile guests on podcast (Pat Flynn, Amy Porterfield)
  • Raise $20M for 2 deals in last 4 months
  • Full-time asset manager, director of investor relations

Our top 3 lessons learned in 2020

  1. Team is EVERYTHING
  2. Stick to your underwriting
  3. Be grateful every day for everything

Our plans for 2021 in The Michael Blank organization

The disconnect between the headlines and our market experience

  • Real estate = local business (gateway cities vs. Sun Belt)
  • Rents flat but not decreasing in our target markets
  • People move south + west with freedom of remote work

My predictions around the market outlook for 2021

  • No radical changes to real estate tax law
  • Unemployment benefits will cover rent collection issues
  • Fed will keep interest rates low and flat
  • Continued demand for affordable multifamily housing
  • Drop in value of US dollar (real estate = inflation hedge)
  • Unprecedented buying opportunities in next 12 months

How you can help us make a positive impact in the world

  • Sponsor student through UCSS nonprofit
  • $25/month covers education and healthcare

Resources

Join the Nighthawk Equity Investor Club

Get Michael’s Ultimate Guide to Apartment Investing

Learn More About Michael’s Mentoring Program

Sponsor a Student with Uganda Counseling & Support Services

Get Your Priorities Straight on Apartment Building Investing EP230

Deal Maker Live

Platform Builders

Pat Flynn on Apartment Building Investing EP210

Amy Porterfield on Apartment Building Investing EP212

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_244.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Do you have what it takes to be an entrepreneur? If you’re in the early stages of building a multifamily syndication business, Gino Wickman wants to leverage his 30 years of experience to help you determine what kind of enterprise is right for you and accelerate your path to success.

Gino is the creator of the Entrepreneurial Operating System, the practical method for helping businesses achieve greatness used by 100K companies worldwide. He is also the bestselling author of Traction: Get a Grip on Your Business and Rocket Fuel: The One Essential Combination That Will Get You More of What You Want from Your Business, among many other groundbreaking books on entrepreneurship. Today, Gino is devoting his time and energy to Entrepreneurial Leap, a new book and online platform designed to help entrepreneurs-in-the-making find clarity and create a customized roadmap for their startup.

On this episode of Apartment Building Investing, Gino joins cohost Garrett Lynch and I to share the experience that inspired his work with entrepreneurs, explaining how he defines ‘true entrepreneurship’ and what characteristics successful business owners share. He walks us through the most common mistakes entrepreneurs make, offering advice on knowing what you want, hiring the right people and firing the wrong ones. Listen in for insight on whether or not you’re a ‘partner person’ and get Gino’s eight tips for increasing your chances of success as an aspiring entrepreneur.

Key Takeaways

What inspired Gino’s work with entrepreneurs

  • Turned around struggling family business at 25
  • Discovered knack for helping entrepreneurs

What makes EOS such a successful system

  • Simple and time tested on 50 clients over 5 years
  • Frees entrepreneur to take business to next level

Why Gino wrote his new book Entrepreneurial Leap

  • Help aspiring entrepreneurs build better startup
  • Teach what he needed most at start of journey

How Gino defines true entrepreneurship

  • Build business with lots of people (vs. freelance)
  • Only 4% of population has what it takes

The 6 essential traits of a true entrepreneur

  1. Visionary
  2. Passionate
  3. Problem-solver
  4. Driven
  5. Risk-taker
  6. Responsible

The 8 critical mistakes entrepreneurs make

  1. Not having vision
  2. Hiring wrong people
  3. Not spending time with people
  4. Not knowing customer
  5. Not charging enough
  6. Not staying true to core
  7. Not knowing numbers
  8. Not crystalizing roles/responsibilities

Gino’s advice on hiring the right people

  • Hire based on core values + skill set
  • Be slow to hire, quick to fire

The 8 disciplines for increasing your chances of success

  1. Clarify vision
  2. Decide if ‘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

Gino’s insight on the two types of ‘partner people’

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

Connect with Gino Wickman

Entrepreneurial Leap

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

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Garrett at Nighthawk Equity

Traction: Get a Grip on Your Business by Gino Wickman

Entrepreneurial Operating System for Business

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

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

Entrepreneurs’ Organization

Gino’s Entrepreneur Assessment

Books by Napoleon Hill

Books by Dale Carnegie

Books by Jim Collins

Podcast Show Notes 

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: ABI_243.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What is the key to scaling a real estate investing business? Growing your investor database? Raising more and more capital for deals? Putting together and training a capable team? Yes, all of those things are absolutely necessary. And they all require that you build out systems. Systems that allow the business to run on its own.

Jorge Abreu is the Cofounder and CEO of Elevate Commercial Investment Group, a Dallas real estate firm focused on the acquisition of value-add multifamily assets. In his 15-year career, Jorge has flipped 200-plus houses, wholesaled another 100 properties and done $8M in ground-up construction. Since his introduction to multifamily four years ago, Jorge has built a portfolio of 1,700 units worth $125M.

On this episode of Apartment Building Investing, Jorge joins cohost Garrett Lynch and I to share the challenges of scaling a single family investing business and discuss what inspired his transition to apartment buildings. He weighs in on the value of networking (online and in-person) to forge new partnerships and build a solid team. Listen in for insight on building systems to grow your business and learn why Jorge recommends skipping single family and getting right into multifamily investing!

Key Takeaways

What inspired Jorge’s interest in real estate

  • Research of successful individuals
  • Entrepreneurial role models in family

The challenges of scaling a single family business

  • Difficult to find reliable contractor for flips
  • Creating systems to delegate work

How Jorge started over in Dallas after 2008

  • Network every day, go to every event
  • Build team and find partnerships

The value of finding a good partnership

  • Division of roles affords time freedom
  • One partner as visionary, one as executor

The benefits of multifamily investing

  • Build generational wealth
  • Branch out into other companies

How Jorge attracts and retains team members

  • Make sure everyone happy
  • Check in re: expectations

When to bring property management in house

  • Implement own systems (control)
  • More appropriate with scale

Why Jorge runs his own construction company

  • Helped scale single family business
  • Confident taking on any heavy lift

Jorge’s insight on raising capital for multifamily

  • Invest passively to get feel for business
  • Market to build database of investors

What Jorge does to market his syndications

  • Build platform, daily posts on social
  • Funnel with email marketing follow up

How Jorge manages his investor lists

  • Speak to new investors asap
  • Strategic messaging to match goals

What’s next for Jorge and the Elevate team

  • Explore new partnerships
  • Fine tune system for evaluating deals

What Jorge would tell his younger self

  • Build out systems early on
  • Go straight to large multifamily

Connect with Jorge Abreu

Elevate Commercial Investment Group

Email jorge@elevatecig.com

Resources

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

Garrett at Nighthawk Equity

National Real Estate Investors Association

Traction: Get a Grip on Your Business by Gino Wickman

ActiveCampaign

Deal Maker Live

The Deal Maker’s Mastermind 

Podcast Show Notes 

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_242.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What is the best way to approach the conversation with potential multifamily investors? How do you communicate the benefits of investing in apartment buildings over other asset classes and assure them that their money is safe with you—even if you’re new to the space?

David Kamara is the Founder and Managing Director of Cape Sierra Capital, a multifamily syndication firm out of Ann Arbor, Michigan. He has 15 years of investing experience in the real estate space, getting his start with a portfolio of residential single family and duplex units before transitioning to apartment buildings and townhome communities. Today, David owns 200-plus units and serves as a mentor on the Michael Blank team.

On this episode of Apartment Building Investing, David joins cohost Drew Whitson and I to explain how he coaches his mentoring students to approach the conversation with potential investors, describing how multifamily isn’t subject to the same risks as single family rentals. He weighs in on what helps aspiring syndicators believe in their ability to succeed, exploring how knowledge helps us visualize what’s possible but action is key in making it real. Listen in for David’s insight on getting your priorities straight and learn how underwriting to cashflow makes multifamily a good investment no matter what’s going on in the world.

Key Takeaways

What David’s been up to since his last appearance

  • Find competitive deals with good return for investors
  • Develop personal cashflow formula (free eBook)
  • Share knowledge through platform, mentoring

What helps aspiring multifamily investors believe it’s possible

  • Knowledge (i.e.: understanding of loans, taxes)
  • Personality open to learning new things

How COVID changed the way David talks to investors

  • Proactive in reaching out to investors
  • Open about potential for no distributions

How COVID has impacted David’s underwriting

  • Assume minimal rent increases for next 3 years
  • Take on longer, fixed-rate debt (HUD loans)
  • Prepare investors for longer hold periods

David’s advice around market timing

  • Don’t worry about things can’t control
  • Plan for same cap rate at sale, focus on cashflow
  • Choose markets with job diversity

How David coaches his students on talking to investors

  • Explain cash-on-cash return and appreciation
  • In control of both factors with multifamily

Why David invested in the Platform Builder Incubator

  • Eventually run out of investors as business scales
  • Attract high-income earners, serve more people
  • Accelerate growth (program tailored to syndicators)

David’s plan to produce content consistently

  • Write blogs on common questions
  • Considering podcast as medium

David’s advice for aspiring multifamily syndicators

  1. You have to start (buy something)
  2. Prioritize what’s important in life
  3. Hustle to find deals

Connect with David Kamara

Cape Sierra Capital

David’s Free eBook: Personal Cashflow Formula

Resources

Learn More About Michael’s Mentoring Program 

Register for Michael’s Platform Builder Incubator

Join the Nighthawk Equity Investor Club

David Karmara on Apartment Building Investing EP182

HUD Loans

HubSpot

Michael’s Health Crisis on Apartment Building Investing EP230

LoopNet

Realtor.com

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_241.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

A lot of would-be multifamily syndicators get stuck, sometimes out of fear and sometimes because they want to plan every step of the process before they dive in. But that’s not how entrepreneurship works! In fact, the most successful real estate investors are the ones who are willing to put themselves out there and learn by doing—taking consistent, imperfect action.  

Matt Brawner is Managing Partner at Minnesota Capital Management and Northwoods Servicing, a real estate investing firm and property management company based in Coon Rapids, Minnesota. Matt and his partners have achieved considerable success turning their $5K investments into a portfolio worth more than $20M, but his greatest passion is teaching. To that end, Matt now serves as a mentor with the Michael Blank organization

On this episode of Apartment Building Investing, Matt joins cohost Drew Whitson and I to explain how he got into real estate, discussing how he formed a successful partnership with five other investors and what inspired their transition from townhomes to multifamily properties. He introduces us to the idea of setting up debt funds to raise capital and shares the pros and cons of having your own property management company. Listen in for Matt’s insight on scaling a multifamily business and learn how YOU can get unstuck and get into ACTION to become a successful real estate syndicator! 

Key Takeaways

What inspired Matt to become a mentor 

  • Career = function of faith
  • Help others achieve time freedom

How Matt got into real estate 

  • Realized no influence on stock market
  • Local opportunity to rent townhomes

What makes for a good partnership 

  • Communicate well (100% honesty)
  • Equal share of financial burden

Matt’s transition from townhomes to multifamily 

  • Local operator had deal but needed capital
  • Matt’s team had money to invest

Why Matt’s team had set up debt funds 

  • Needed capital to scale business
  • Attracts investors who want certainty

Matt’s top lessons learned in real estate investing 

  • Get into multifamily much sooner
  • All properties not created equal

The benefits of having a property management company 

  • Own more of value chain
  • Insight into local deals

Matt’s advice on property management for new investors 

  • Use third party when getting started
  • Allows to scale quicker, more efficiently

The traits of a successful multifamily syndicator 

  • Willing to learn by doing
  • Willing to wade into unknown

Matt’s insight on underwriting post-COVID 

  • Focus on forced appreciation
  • Add value to drive incremental revenue

What aspiring investors get stuck on 

  • Fear
  • Desire to plan out everything in advance

The challenges Matt faces in scaling his business 

  • Find landlord-friendly markets
  • Intentional networking to find deals

Connect with Matt Brawner

Matt on LinkedIn 

Email matt@nwsproperties.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? 

Traction: Get a Grip on Your Business by Gino Wickman 

National Multifamily Housing Council 

GigaFi

Corey Peterson  

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_240.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

So, you’ve got some experience in single family rentals. And you KNOW that multifamily investing would help you achieve financial freedom on an accelerated timeline. But you just don’t BELIEVE that you can do it. What can you do to overcome that hurdle and develop the confidence to take on your first deal?

Jeremy LeMere is the Principal at Star Capital Management Group, an equity real estate investment firm based in DePere, Wisconsin. He began his investing career over a decade ago, rehabbing single family and duplex properties. Since then, he has grown his personal portfolio to include multifamily, self-storage and commercial assets. Jeremy recently quit his corporate engineering job to pursue real estate full time, and he also serves as a mentor with the Michael Blank organization.

On this episode of Apartment Building Investing, Jeremy joins me to explain how seeing his net worth drop during the Great Recession inspired his interest in real estate. He walks us through his early investments in single family homes and duplexes, discussing why he made the shift to multifamily to replace his W-2 income much faster. Listen in for Jeremy’s insight on raising capital with an online platform and learn how YOU can leverage mentorship to overcome limiting beliefs and invest in your first multifamily deal!

Key Takeaways

What inspired Jeremy’s interest in real estate

  • Committed to saving and investing as much as possible
  • Net worth cut in half, 401(k) collapsed in recession

Jeremy’s initial real estate investing strategy

  • Bought and operated duplexes in local area
  • Denied loan on third property
  • Build portfolio of SFH with BRRRR method

How Jeremy funded his investments without bank loans

  • Liquidate stocks, use 401(k) and savings
  • Work with credit union
  • Start flipping SFH and reinvesting profit

What inspired Jeremy’s shift to multifamily

  • Passed over for promotion at corporate job
  • Changed goal from replace income at 55 to 45

How Jeremy got started with multifamily

  • Join Michael Blank mentoring program
  • Develop can-be-done mindset

The timeline on Jeremy’s first multifamily deal

  • Started mentoring program in January 2018
  • Identified asset with value to unlock by March
  • Acquired few months later (at asking price)
  • Took from 82% to 98% occupancy in 3 months

The opportunities Jeremy identified in his first deal

  • Value-add and increase rents as units turn
  • Address vacancy gap (comps 100% occupancy)

Jeremy’s approach to quitting his corporate job

  • Gradually empower team to take over duties
  • Last day of work = non-event

How Jeremy’s life is different as a full-time investor

  • Free up time to enjoy lake house with family
  • Able to help others as career coach, mentor

Jeremy’s decision to add self-storage to his portfolio

  • Local opportunity for 2 sites with 300 units
  • Closed on 7/3, increase in occupancy already

How Jeremy raised money for the self-storage opportunity

  • Needed $500K (2/3 from outside investors)
  • Partner on funding side of wholesaling, flips

Why Jeremy is building a platform to raise capital

  • Weakness in self-promotion and marketing
  • Use automation to attract new investors

What Jeremy is working on right now

  • Look for next big syndication deal
  • Build out platform with content

Connect with Jeremy LeMere

Star Capital Management Group

Resources

Learn More About Michael’s Mentoring Program

Register for Michael’s Platform Builders Incubator

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

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

REIA

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_239.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

How do you land your first syndication deal without a track record in multifamily? Well, it all starts with networking. Networking with brokers. Networking with potential investors. Networking with other multifamily operators. And if you can get plugged a real estate investing community, you can leverage the knowledge and experience of investors who’ve been where you want to go and fast-track your success!

Barry Flavin is a mentor with the Michael Blank organization and Managing Partner at New Mission Capital, a multifamily investment firm out of Detroit, Michigan. He got his start in real estate eight years ago, building a portfolio of 30 single family rentals before making the shift to multifamily. Barry has a background in software sales and spent six years working as an air traffic controller before discovering real estate, and today, he owns 387 units, leveraging his expertise in investor relations to grow the business.

On this episode of Apartment Building Investing, Barry joins cohost Drew Whitson and I to explain how an air traffic controller ends up in real estate, walking us through his transition from building a portfolio of single family rentals to raising capital for large multifamily deals. He discusses the advantages of focusing his investments in a single market, describing how he found his partner, Josh, and what they do to secure consistent deal flow. Listen in for Barry’s insight on avoiding expensive mistakes with 1:1 mentoring and find out how YOU can accelerate your success through the Michael Blank community.

Key Takeaways

What inspired Barry’s interest real estate

  • Looking to supplement government pension
  • Desire to travel in retirement

Barry’s initial real estate investing strategy

  • Fix up and sell personal residences
  • BRRRR method (build SFH rental portfolio)

How Josh funded his early real estate investments

  • Start with own cash, retirement accounts
  • Borrow from private lenders and refinance properties

How Barry and Josh structure their partnership

  • Josh finds and underwrites deals + operates portfolio
  • Barry’s focus on investor relationships, raising capital

How Barry raised $2.8M for his first 144-unit deal

  • Lot of phone calls, emails, coffees and dinners
  • Scrambling after few weeks but fell into place

Barry’s advice on making a capital raise less stressful

  • Touchpoints 1, 2 and 3 while still looking for deal
  • Show potential investors sample deal package

How Barry benefits from focusing on the Detroit market

  • Knowledge of best neighborhoods to invest
  • Track record + broker relationships = deal flow

Barry’s advice for aspiring investors without a track record

  • Network with brokers and investors
  • Add value to partner (borrow their reputation)

The #1 thing new syndicators need to do to be successful

  • Deep dive into online content to learn language
  • Get plugged into community

Barry’s insight on having in-house property management

  • Can outsource in beginning, interview for best fit
  • Consider in-house team as business scales

How Barry thinks about adding to his team

  • Weakness around building funnel for new investors
  • May hire admin to streamline marketing strategy

Barry’s take on goal setting for multifamily

  • Don’t have set number of units
  • Consistently do GOOD deals (minimum of 2/year)

Barry’s advice to his younger self

  • Learn to use money as tool much sooner
  • Accelerate real estate with 1:1 coaching program

Barry’s advice for aspiring multifamily investors

  • Be coachable and follow through
  • Don’t get stuck in analysis paralysis
  • Learn from every deal (even if don’t go through)
  • Don’t listen to naysayers

Connect with Barry Flavin

New Mission Capital

Email barry@newmissioncapital.com

Barry on LinkedIn

Resources

Learn More About Michael’s Mentoring Program

Syndicated Deal Analyzer

CDC Moratorium on Evictions

Josh Sterling on Apartment Building Investing EP091

Sample Deal Package

Josh Gozlan on Apartment Building Investing EP078

Deal Maker’s Mastermind

Garrett Lynch on Apartment Building Investing EP231

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_238.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Wish you could attract an audience of engaged, eager investors like we do at Nighthawk Equity? Have you thought about building a thought leadership platform but rejected the idea because you’re not a writer or a techie? Or because you don’t like the way you look or sound on camera? Are you ready to get over those false beliefs and scale your capital raise in a matter of months?

Patricia Sweeney is the Marketing Automation Consultant behind Ideally Media Group, a firm that helps entrepreneurs and business owners implement content marketing systems to attract more of the right clients and significantly increase their revenue. With 10-plus years of experience in online marketing, Patricia has been the secret weapon behind some of the biggest names in the digital marketing space. She is also part of the Michael Blank team, working hands-on with the students in our Platform Builders program.

On this episode of Apartment Building Investing, Patricia joins me to discuss the limiting beliefs that stop syndicators from building an online thought leadership platform. She explains why you DO have time and why you CAN justify the investment, describing how our students are attracting new investors—sometimes even before the program is over! Listen in for Patricia’s insight on avoiding the biggest mistakes syndicators make in building a platform and learn how YOU can scale your capital raise through our Platform Builder Incubator.

Key Takeaways

The advantages we have around platform building in 2020

  • EASY to get message to many through social media
  • Tech never more powerful or easier to use
  • Outsource tasks to highly qualified global VAs

What limiting beliefs stop syndicators from building a platform

  1. I’m not a techie or a writer
  2. I don’t have the time
  3. I can save money by doing it myself
  4. I can’t justify the investment

Why you DO have time to build a thought leadership platform

  • Delegate/automate production and distribution
  • Don’t have to become digital marketing expert

Why you aren’t really saving money by doing it yourself

  • Time = precious resource, better spent finding deals
  • Focus on what drives business forward (raise capital)

Why you CAN justify the investment in building a platform

  • Leverage content marketing to attract more investors
  • Reinvest 20% of revenue and SCALE UP capital raise

The biggest mistakes syndicators make in building a platform

  1. Thinking you only need a website
  2. Not having a lead magnet
  3. Not communicating with your list
  4. Trying to do everything at once
  5. Striving for perfection

My advice on avoiding overwhelm in building a platform

  • Build core platform as foundation
  • Layer on one lead gen program at a time

Connect with Patricia Sweeney

Ideally Media

Resources

Register for Michael’s Live Webinar on 10/28

Register for Michael’s Platform Builder Incubator

Join the Nighthawk Equity Investor Club

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

What Is a Platform & Why Should You Build One? on ABI EP235

Upwork

Fiverr

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_237.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Time is precious. Are you spending your days doing what you love with the people you love? What if multifamily real estate could help you do just that? What if you could achieve financial freedom fast—regardless of your current financial situation?

Megan Lamke is Managing Partner at Megan Lamke Real Estate, a firm that helps driven women turn their grit into true financial growth. She built a network of real estate investors working for Wells Fargo Home Mortgage, and once she and her husband, Darik, had paid off their personal debt ($535K in under 5 years!), they started investing passively in multifamily syndications. Megan quit her corporate job to pursue active investing full-time in April of 2019, and today, the Lamkes have a portfolio of 1,491 units valued at $344M. 

On this episode of Apartment Building Investing, Megan joins me to explain why she took a W-2 job after college (despite wanting to become a real estate entrepreneur) and what she and Darik did to live below their means and pay off their debt so fast. She describes what she did to find a good operator as a passive investor and how she leveraged her sales and marketing background to transition to active investing. Listen in for Megan’s insight on how to raise capital at scale with a platform and learn how YOU can achieve financial freedom and spend time doing what you love!

Key Takeaways

When Megan started thinking about real estate

  • Parents struggled financially, read Rich Dad Poor Dad at age 10
  • Entrepreneurship and business clubs in high school and college

Why Megan took a W-2 job after college

  • Needed to pay off student loan debt before leave Rat Race
  • Learned sales skills, got to work with real estate investors

What Megan and her husband did to live below their means

  • Sold luxury cars, bought cars for cash
  • House hacked 6BR (rented to rugby teammates)
  • Side hustle as sales and marketing consultant

How Megan and her husband got on the same page financially

  • Financial literacy class as part of premarital counseling
  • Set goal to pay off debt, achieve financial freedom

How Megan’s strategy shifted once she was out of debt

  • Sold 6BR house to invest passively in multifamily syndications
  • Goal to replace corporate salary as quickly as possible

Megan’s advice on finding a good multifamily operator

  • Look at track record, online reviews, lawsuits and marketing efforts
  • Ask questions re: where properties located, how managed, etc.

What Megan’s last day of work was like

  • Surreal (like leaving the Matrix)
  • Culmination of goal that started in fifth grade

How Megan’s life is different now that she’s a full-time investor

  • Control own time (decide when to work)
  • Spend more time with daughter, volunteering

What active investing looks like for Megan

  • Use SDA to underwrite 10 deals/day (300 in 2019)
  • Leverage background in sales and marketing to build out platform

What Megan has done to scale her capital raise efforts

  • Done-for-you tech stack to automate lead gen, booking calls
  • 30 to 37 calls with prospective investors every week

What Megan is doing to attract prospective investors to her platform

  • Create content (social media, videos, blog and weekly webinar)
  • Sponsor real estate events, promote lead magnet on podcasts

How Megan describes her ideal investor

  • Successful career woman age 40-55, primary breadwinner
  • Gritty and knows how to get stuff done

How the automation works to turn interested prospects into investors

  • Receive automated email with free download
  • Follow up with drip marketing campaign to encourage call

How much capital Megan has raised through her online platform

  • $18M raise to close on $49M apartment building
  • In process of closing on $18M 503(c)

How raising capital looks different now that Megan has a platform

  • Don’t have to call each investor, track follow-up manually
  • One centralized management tool that automatically follows up

Connect with Megan Lamke

Megan Lamke Real Estate

Megan’s No-Nonsense Women’s Guide to Investing

Megan on Facebook

Megan on Instagram

Megan on LinkedIn

Resources

Register for Michael’s Platform Builder Incubator

Join the Nighthawk Equity Investor Club

Rich Dad Poor Dad by Robert T. Kiyosaki

Business Professionals of America

DECA

Dave Ramsey

Robert Kiyosaki

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

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

Michael’s Syndicated Deal Analyzer

Trello

Investor Deal Room

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_236.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What is the secret to growing a multimillion-dollar multifamily syndication business? The strategy that has worked for my team, allowing us to raise MILLIONS in just a few days, starts with building an online thought leadership platform.

On this episode of Apartment Building Investing, I’m walking you through the three pillars of platform building for multifamily syndicators. I explain WHO should consider building a platform and WHY it’s so valuable, describing how it helps us find more investors, do more deals and scale the business.

I discuss how to attract your ideal investor and then serve them with valuable content, ultimately turning your audience into raving fans who want to invest with you. Listen in for insight on reinvesting a portion of your revenue to grow a multimillion-dollar syndication business and learn how a thought leadership platform can help you 10X your capital raise in just 18 to 24 months!

Key Takeaways

Who should consider building a platform to raise money for syndications

  • You’ve raised at least $500K but need more investors
  • You’re looking to 10X your capital raise capacity
  • You want to raise millions quickly and effortlessly

What a platform allows you to do as a multifamily syndicator

  • Automatically attract ideal investors
  • Do more deals, create more revenue
  • Reinvest in platform to attract more investors
  • Educate audience on real estate syndications

The 3 pillars of platform building for multifamily syndicators

  1. Attract right audience
  2. Develop raving fans
  3. Scale your business

Pillar #1: Attracting the Right Audience

  • Identify ideal client avatar (investor)
  • Capture leads with free lead magnet

Pillar #2: Developing Raving Fans

  • SERVE with content + LEAD to action
  • Promote message to grow email list

Pillar #3: Scaling Your Business

  • Make compelling offer that generates revenue
  • Reinvest portion of revenue (continue growth)

The ROI on building a platform to raise money for syndications

  • For every 32 leads, one ends up investing $70K
  • Each new investor generates $2,100 in acquisition fees
  • Reinvesting 25% will 10X capital raise in 18-24 months

Resources

Register for Michael’s Platform Builder Incubator

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_235.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Yes, an education in business or finance is a good foundation for a real estate investor. But spending time with an experienced syndicator and watching a deal happen firsthand is more valuable than any degree. So, how do you find a mentor and convince them you’re worth their time?

Josh Gorokhovsky is the Managing Principal at Telos Properties, a real estate investing firm that focuses on 2- to 4-unit new construction, build-to-rent projects in Los Angeles. After graduating from USC in 2015, he interned for LA Properties under company principal Scott Rosenfeld. Since founding Telos in 2017, Josh has placed more than $7M in equity for investors and managed $20M worth of real estate transactions.

On this episode of Apartment Building Investing, Josh joins cohost Drew Whitson and I to explain how he broke into real estate at the age of 21, describing the persistence it took to get an informal internship with his mentor. He gets real about the 900 hours he dedicated to finding his first deal and why he niched down to the new construction, build-to-rent model. Listen in to understand what gave Josh the confidence to go solo at 23 and get his advice on working for free early on to build the network and experience you need to succeed!

Key Takeaways

How Josh got into real estate

  • Inspired by Kiyosaki’s Rich Dad Poor Dad
  • Introduced to mentor by family friend

Josh’s initial strategy for breaking into the industry

  • Find someone doing what he wanted to do
  • Put in time to understand fundamentals

How Josh’s sales background prepared him for real estate

  • Learn to deal with rejection, build backbone
  • Build routines and systems to follow up

How Josh got in the door with his mentor

  • Persistence (call regularly to ask for internship)
  • Dedication to finding deal after 9-to-5

Josh’s transition from tech sales to real estate

  • Spent year working for hard money lender
  • Cushion of income while learning real estate

What gave Josh the confidence to go solo

  • Moved back in with parents
  • Mentor willing to teach

Josh’s first deal

  • Lead from mailer dropped in neighborhood
  • Piece of equity in single family rehab project

Josh’s first solo deal

  • Ground-up duplex development (less risky)
  • Family friend was first private investor

How Josh has scaled up his business

  • Use leverage of previous project to go to next
  • Continue cold calling, reaching out to agents

What Josh is working on today

  • 8 development projects in the works
  • 6 units under management

How Josh navigated the times when he was down on himself

  • Positive self-talk, innate belief in self
  • Encouragement of mentor

Josh’s advice for aspiring real estate investors

  • Get ‘master’s degree’ with mentor
  • Get taste of everything, then determine niche
  • Provide value to everyone you work with

Connect with Josh Gorokhovsky

Telos Properties

Telos on Facebook

Telos on Instagram

Josh on Instagram

Josh on LinkedIn

Email josh@telosproperties.com

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Rich Dad Poor Dad by Robert T. Kiyosaki

Gary Vaynerchuk

David Goggins

Cutco Sales Training

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_234.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Trading time for money has a ceiling. There are only so many hours in the day, and eventually, we run out. And those of us who work 80 hours a week (or more!) to make ends meet simply can’t be a good partner or parent. So, what can we do to get out of this broken system and achieve financial freedom?

Dave Seymour is the Cofounder and CEO of Freedom Venture Management, a results-driven investing firm that focuses on multifamily and commercial real estate. After 16 years as a Boston firefighter and paramedic, Dave discovered real estate and quickly became one of the nation’s top investors. His passion for the business and propensity to tell it like it is landed Dave his own real estate reality series on A&E, and he has also appeared on CBS, ABC and CNBC, among many other national media outlets.

On this episode of Apartment Building Investing, Dave joins me to explain how he went from working 120 hours a week as a firefighter and paramedic to starring in Flipping Boston on A&E. He describes how real estate saved his financial life and weighs in on what multifamily assets his team is buying now to generate cashflow right away. Listen in for Dave’s insight on building a platform by being yourself and learn to replace fear with faith and say YES to the opportunities that come your way!

Key Takeaways

How Dave got his own show on A&E

  • Separate self from pack
  • Amplify what’s special about you

What Dave was doing before real estate

  • 16 years as firefighter + paramedic
  • Spending money didn’t have

What inspired Dave to pursue financial freedom

  • Working 120 hours/week
  • Couldn’t be good husband or dad

How Dave got into real estate

  • Heard about seminar on radio
  • Invested $27K in classes

What Dave is good at

  • Knowing what real emergency is
  • Assess landscape + execute

How Dave makes up for his weaknesses

  • Recognize what’s not core competency
  • Hire exceptional fund managers

How Dave built a platform for raising money

  • Authenticity (no BS)
  • Search for other’s needs and serve

Dave’s biggest challenges right now

  • Getting qualified funds
  • Marketing to right audience
  • Meet-and-greets during COVID

What assets Dave’s team is buying

  • Multifamily on Florida Gulf Coast
  • Focus on 40- to 140-unit properties

What’s next for Dave and Freedom Venture

  • Build infrastructure for $250M Fund 2
  • Direct lending to other investors

Dave’s definition of success

  • Physical, mental and spiritual wellbeing
  • Family and faith (to replace fear)

Connect with Dave Seymour

Freedom Venture Investments

Freedom Venture on Facebook

Dave on Twitter

Dave on Instagram

Dave on LinkedIn

Resources

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Flipping Boston

Three Feet from Gold: Turn Your Obstacles into Opportunities by Sharon L. Lechter and Greg S. Reid

Daymond John

Tony Robbins

Tunnel to Towers Foundation

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

The Untethered Soul: A Journey Beyond Yourself by Michael A. Singer

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_233.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

The F.I.R.E. movement challenges us to achieve financial independence and retire early by saving and investing aggressively. And by aggressively, I mean anywhere between 50% and 70% of your income. Rajneesh Jha was following the F.I.R.E. method, putting his money in Wall Street investments—until he realized he could fast-track his timeline with multifamily real estate!

Raj spent 20 years working as an engineer for Fortune 500 companies. An avid student of the stock market and personal finance, he started investing in safe, low-cost mutual funds with the goal of achieving financial freedom in about 10 years. Then he discovered real estate and shifted his strategy, building a portfolio of small multifamily properties. Earlier this year, he quit his 9-to-5 to build Big League Capital, a multifamily syndication firm that helps other investors turbocharge their journey with real estate.

On this episode of Apartment Building Investing, Raj joins me to explain how shifting from F.I.R.E. to multifamily accelerated his journey to financial freedom. He offers his take on the stock market as an investment class, describing how the returns pale in comparison to real estate. Listen in for insight around transitioning from landlording to syndication and find out how Raj’s life has changed since he quit his corporate job!

Key Takeaways

How Raj’s journey to financial freedom began

  • Stumbled on F.I.R.E. movement 7 years ago
  • Invest in low-cost, diversified mutual funds

What the F.I.R.E. method teaches

  • Save substantial amount of income (up to 70%)
  • Save more, arrive at financial nirvana faster

How Raj was able to save a lot of money with F.I.R.E.

  • No drastic changes to lifestyle
  • More conscious + intentional about spending

What Raj was trying to accomplish through F.I.R.E.

  • Protect family from vagaries of corporate life
  • Get to place where work becomes optional

Raj’s take on the stock market as an investment class

  • Can get burned if chase trends
  • Prosper with disciplined, consistent strategy
  • Pales in comparison to returns on real estate

How Raj discovered the world of real estate investing

  • Came across BRRRR method with Paula Pant
  • Learned about scale from Matt Faircloth

How Raj differs from the average stock market investor

  • Passionate about personal finance
  • Extensive reading and education

Raj’s first real estate investment

  • Bought triplex in Summer of 2017
  • Made fair share of mistakes but believed in vision

How Raj’s long-term plan shifted once he found real estate

  • 4% safe withdrawal rate vs. 12% cash-on-cash return
  • Accelerate journey by 3X with multifamily investing

How Raj’s life is different after quitting his job

  • Time to relax and plan next chapter
  • Work on my schedule, do things that matter to me

What’s next for Raj and his investing partners

  • Looking for 60- to 120-unit value-add property
  • Psyched to go from landlording to syndication

What Raj would do differently if he could go back

  • Start sooner and be bolder
  • See mistakes as rite of passage

Raj’s advice for achieving financial freedom

  • Get clear on what you really want
  • Skip stock market, go right into multifamily
  • Have faith and take prudent risks
  • Don’t let lack of funds/experience hold you back
  • Spend time on real estate education

Connect with Rajneesh Jha

The Big League Capital

Email raj@bigleague-capital.com

Call (267) 551-0529

Resources

Learn More About Michael’s Mentoring Program

Access Michael’s Ultimate Guide to Buying Apartment Buildings with Private Money

Join the Nighthawk Equity Investor Club

Register for Michael’s Free Master Class: How to Do Your First Apartment Deal

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

Financial Independence Retire Early Movement

BRRRR Method

Jim Rohn

Paula Pant

Matt Faircloth

Robert Kiyosaki

Brandon Turner on BiggerPockets

BiggerPockets on YouTube

Think and Grow Rich by Napoleon Hill

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

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_232_v2.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

2020 has been a tough year for finding deals—even for us. In fact, the Nighthawk Equity team is currently in the process of closing on our first and only deal of the year (so far). But that’s not for lack of trying! So, what are we looking for in a deal right now? How have we changed our underwriting criteria in the age of COVID? And how do we recover from the disappointment of losing a deal?

Garrett Lynch is the Director of Acquisitions at Nighthawk Equity, the investing arm of the Michael Blank organization. Garrett has been in the multifamily space since 2011, cofounding a firm that grew from zero to 3,400 units before successfully exiting that venture. Since taking on his role with us at Nighthawk in 2018, Garrett has built a portfolio that includes at 218-unit property in Little Rock, Arkansas a 276-unit in Huntsville, Alabama, and a 130-unit deal in Atlanta, Georgia.

On this episode of Apartment Building Investing, Garrett joins me to explain how his strategy for finding multifamily deals has evolved over the years and what we look for in a deal at Nighthawk Equity. He describes what he does to build rapport with brokers and stay in touch, sharing how strong broker relationships helped us land our current deal in Atlanta. Listen in for Garrett’s insight on recovering from the disappointment of losing a deal and learn how to adjust your underwriting to find good multifamily deals in the COVID era.

Key Takeaways

How Garrett’s strategy for finding deals has evolved over the years

  • Look for best price per door in D class neighborhoods early on
  • More granular on underwriting today, focus on B and C class

How we dialed in our criteria for deals at Nighthawk Equity

  • Look at capacity on equity raise and debt structure
  • Gradual progression on size of deals
  • Choose value-add properties in certain markets

The benefits of collocating deals in just a few markets

  • Share resources (e.g.: staff)
  • Hit several properties in one trip

How we select markets at Nighthawk Equity

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

How Garrett builds rapport with brokers

  • Stand out by responding whether like deal or not
  • Meet in person and check in regularly, share successes

How Garrett recovers from the disappointment of losing a deal

  • Channel hurt into next quest
  • Commit to process

How we landed our current deal in Atlanta

  • Follow up with broker re: deal another investor won
  • Unobstructed shot when that deal fell apart

Garrett’s system for staying in touch with brokers

  • Put regular check-ins on calendar (target markets of interest)
  • Come with thoughtful questions re: specific deals
  • Reach out when land deal in their market to build demand

How we have adjusted our underwriting at Nighthawk in the COVID era

  • Tailor underwriting around few available debt products
  • Set natural market appreciation at ZERO for Year 1
  • Create cushion of 0.5% on reversionary cap rate
  • Cash reserves minimum of 10% of total spent on deal
  • Research tenant demographic to ensure cashflow from Day 1

Connect with Garrett Lynch

Garrett at Nighthawk Equity

Resources

Learn More About Michael’s Mentoring Program

Submit a Deal to the Michael Blank Deal Desk

Access Michael’s Syndicated Deal Analyzer

Join the Nighthawk Equity Investor Club

LoopNet

CREXi

National Multi Housing Council

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

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_231.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

If you knew you only had six months to live, what would you do differently? Who would you spend time with? Who would you reconcile with? How would you spend your days?

On this episode of Apartment Building Investing, I’m describing the health crisis that landed me in the ER at the end of July. I explain how the experience forced me to rethink my priorities and reaffirmed my mission to help people to achieve financial freedom through multifamily investing!

Listen in for insight on how to get clarity in your life and take on the challenge to get your affairs in order and start living your best life NOW.

Key Takeaways

My recent experience with a health crisis

  • Heart attack on July 28, 2020
  • 100% blockage in main artery

How the health emergency forced me to rethink my priorities

  • Value health and family above all else
  • Affirmed mission (financial freedom with multifamily)

My advice on getting your affairs in order NOW

  • Set up revocable trust and life insurance
  • Structure entities so controlled by trust
  • Document where to find important info

Two powerful exercises for getting clarity in your life

  • 6 months to live
  • Perfect Day

Resources

Deal Maker Live

Dave Ramsey

Michael’s First Deal Maker Award Recipients

Michael’s Financial Freedom Hall of Fame

Garrett Sutton

Brandon Turner

The Miracle Morning: The 6 Habits That Will Transform Your Life Before 8AM by Hal Elrod

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_230.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

We’re told that our goals have to be time-bound. That we have to give ourselves a deadline if we want to achieve. The problem with that is too many of us quit three feet from gold, as the saying goes. But how do you stay committed when a year has gone by and you still don’t have your first multifamily deal?

David Acosta was a mentoring student in The Michael Blank Investor Incubator. With no money and no background in investing, David leveraged his mentor, Drew Kniffin, and our Deal Maker’s Mastermind investor network to partner on his first venture, a 220-unit deal orchestrated by Ben Risser’s team. Six months later, David closed on a 48-unit deal in Lexington, KY, this time serving as lead syndicator!

On this episode of Apartment Building Investing, David joins me to discuss how he did his first multifamily deal—without any money or previous real estate experience. He explains how having a mentor helped him build confidence and stay committed when his first deal took a few months longer than expected. Listen in for David’s insight on partnering with others to earn credibility and learn why it’s crucial to commit to the outcome you want, not the timeline.

Key Takeaways

What prompted David’s interest in multifamily investing

  • Background in restaurants, wanted to control time
  • Real estate investing research led to TMB course

What made David think he could skip SFH investing

  • Mentor to look over shoulder through process
  • Took course to get educated + build confidence

Why David felt having a mentor was the right choice for him

  • No background in real estate (shorten timeline)
  • Invest in education to be taken seriously

David’s frustration with missing his 12-month goal

  • Deflating to fall short, temptation to walk away
  • Mentor encouraged to commit to goal vs. timeline

How David finally found his first deal

  • Connect with others in Deal Maker Mastermind
  • Partner as GP with another investor’s team

How the Law of the First Deal worked for David

  • Competitive advantage in closing second deal
  • Had confidence to serve as lead syndicator

What’s next for David as a real estate investor

  • Build out team, efficiencies in processes
  • Scale and grow business from there

David’s advice for aspiring multifamily investors

  1. Develop persistence to commit to outcome
  2. Get educated and consider hiring mentor
  3. Join an ecosystem, JV to build track record

Connect with David Acosta

Acosta Capital

David on LinkedIn

David on Instagram

Resources

Purchase the Replay of Deal Maker Live

Learn More About Michael’s Mentoring Program

Check Out Michael’s First Deal Maker Profiles

Explore Michael’s Products & Programs

Connect with Other Investors in the Deal Maker’s Mastermind

Ed Hermsen on Apartment Building Investing EP225

Drew Kniffin at Nighthawk Equity

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

Ben Risser on Apartment Building Investing EP102

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_229.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Despite the disruption of COVID-19, multifamily investors are still doing deals. The question is, HOW? What’s working right now to get deals done? What isn’t? What are real people doing to find success in today’s market environment?

On this episode of Apartment Building Investing, I’m handing the mic over to Drew Whitson to moderate a discussion with our mentoring team, Todd Dexheimer, Brad Tacia, Phil Capron and Matt Brawner, on what’s working now to get deals done. We explain how our mentoring students are leveraging the COVID pause to build relationships and how the balance of power has shifted among syndicator, buyer and broker in recent months.

We go on to explore the benefit of a strong relationship with your property manager and how underwriting has changed in light of the pandemic. Listen in for insight into what makes multifamily the strongest asset class in real estate and learn the ONE thing our most successful students are doing right now to get deals done.

Key Takeaways

What Matt’s most successful students have done in 2020

  • Leverage pause in market (Seinfeld time)
  • Use time to build relationships with brokers

What Phil’s students are doing to acquire multifamily properties

  • Worry about ‘making it to next meal’
  • Figure out how to become viable buyer

Todd’s advice on how to talk to investors right now

  • Continue to educate and keep investors informed
  • Overcommunicate to build relationships

How Brad is coaching his students around underwriting

  • Network with mortgage broker re: what’s changed
  • Modify SDAs to ensure accurate underwriting

How running a property management firm informs Matt’s underwriting

  • Understanding of street rent and how units operate over time
  • Haven’t cut back on rents but less aggressive with rent bumps

How underwriting has changed in light of the COVID pandemic

  • Build in more time for rent growth
  • Consider changes in rental laws by market

What makes multifamily the strongest asset class in real estate

  • Performs well through economic disruption
  • Lockdown led to desire for nicer apartment

The one thing our most successful students are doing right now

  • Willing to make mistakes by doing
  • Get out there and build relationships
  • Analyze deals (still numbers game)
  • Willing to partner to gain experience
  • Take consistent action every day

Connect with Drew, Todd, Brad, Phil & Matt

Drew Whitson

Todd Dexheimer

Brad Tacia

Phil Capron

Matt Brawner

Resources

Learn More About Michael’s Mentoring Program

Purchase the Replay of Deal Maker Live

Pillars of Wealth Creation Podcast

Garrett Lynch

CoStar

Rentometer

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_228.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Our world is in upheaval. Between COVID-19 and the current riots, nothing feels normal. And this has a lot of investors asking, is now the right time to pursue multifamily?

On this episode of Apartment Building Investing, I’m sharing my keynote address from Deal Maker Live 2020 on the current state of multifamily. I describe how multifamily is weathering the storm, explaining why it’s actually EASIER to raise money right now and why now IS the right time to invest in apartment buildings.

Listen in for insight around how to adjust your underwriting in the current economic environment and get my advice on what you SHOULD be doing right now to achieve financial freedom!

Key Takeaways

How multifamily is performing right now

  • Similar to 2008, deep quiet under storm
  • Collections surprisingly consistent

Why it’s easier to raise money in the current economic environment

  • Investors frustrated with volatility of stock market
  • Opening to discuss multifamily as alternative

When it’s the best time to invest in multifamily

  • Never going to be perfect time
  • Start working toward financial freedom NOW

How investors should adjust their tactics right now

  • Be smart about underwriting (↑ reserves, ↓ rent growth)
  • Avoid hard deposit, incorporate financing contingencies

What multifamily investors SHOULD be doing right now

  • Stay calm and stay the course
  • Remember your WHY
  • Keep momentum going

Resources

Purchase the Replay of Deal Maker Live

Learn More About Michael’s Mentoring Program

Join Michael’s Deal Maker’s Mastermind

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_227.mp3
Category:Commercial Real Estate -- posted at: 5:09pm EDT

The black swan event financial pundits predicted has arrived in the form of the Coronavirus pandemic. But how, exactly, will the crisis play out in the markets? What does it mean for us as real estate investors? And what can we do to understand the changing reality, protect our wealth, and even capitalize on hidden opportunities?

Russell Gray is the cohost of The Real Estate Guys Radio Show, a podcast and platform dedicated to helping investors stay focused, motivated and informed. A financial strategist with 30-plus years of experience in business, investing, mortgage lending and financial services, Russell provides unique and practical insights that support entrepreneurial investors in growing and protecting their wealth through real estate and real asset investing. He is also the coauthor of Equity Happens: Building Lifelong Wealth with Real Estate.

On this episode of Apartment Building Investing, Russell joins me to share his take on the bigger story behind the pandemic, explaining how the government bailout will impact the value of the US dollar and its status as the world’s reserve currency. He walks us through the real estate strategies he likes right now, describing the benefit of investments that qualify as both REAL and ESSENTIAL. Listen in for Russel’s insight on protecting your wealth in a crisis and learn what YOU can do to adapt to the circumstances and thrive through a challenging time!

Key Takeaways

Russell’s take on the biggest story behind the Coronavirus

  • Debt crisis on horizon (more vulnerable now than 2008)
  • Potential for currency crisis as Fed continues to print $

Russell’s insight around the indicators that the dollar is weak

  • Dollar exhibits weakness against other currencies
  • All currencies exhibit weakness against precious metals

The consequences of the government’s Coronavirus bailout

  • High risk of inflation
  • Devaluation of dollar

How to protect your wealth from inflation, deflation and stagflation

  • Store in alternate form of liquidity like gold to preserve value
  • Invest in real assets (i.e.: real estate in resilient market)

Why now is a good time to be a real estate investor

  • Printing money favors debtor
  • Real estate = ultimate vehicle to short dollar

The right and wrong way to measure your net worth

  • Assets – liability = wrong way
  • Liquidity + positive cashflow = right way

What real estate strategies Russel likes right now

  • Things that are REAL and ESSENTIAL
  • Residential, energy, healthcare and distribution

Russell’s advice for investors taking a wait-and-see approach

  • Don’t wait for someone else to find best deals before you
  • Look for real estate (real asset) in resilient markets

Connect with Russell Gray

The Real Estate Guys

Email crisis@realestateguysradio.com for the Crisis Investing Webinar

Email silverseries@realestateguysradio.com for the Silver Series

Email preciousequity@realestateguysradio.com for the Precious Equity Tutorial

Resources

Purchase the Replay of Deal Maker Live

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Peter Schiff

Robert Kiyosaki

Reuters Article on the Dollar Index

Ken McElroy

Equity Happens: Building Lifelong Wealth with Real Estate by Robert Helms and Russell Gray

FRED Index on the Purchasing Power of the Consumer Dollar

Jim Rohn

Chris Martenson at Peak Prosperity

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_226.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

According to the Law of the First Deal, a multifamily investor who buys their first apartment building will do their second and third deals in rapid succession, achieving financial freedom in just a year or two. But there is an exception to every rule, and Ed Hermsen is the ONE investor I know who did his first deal—and then life got in the way. So, what can he teach us about keeping momentum and staying committed to our multifamily goals?

Ed grew a portfolio of single-family rentals while working as a mortgage loan officer in Fort Collins, Colorado. Five years ago, he started studying multifamily and eventually partnered with a close friend on a 22-unit deal in Pensacola, Florida. After revisiting his goal to retire by 50, Ed realized he needed to recommit to multifamily, and in the last two years, he has leveraged the partnership model to build a portfolio of 210 units and quit his job with real estate!

On this episode of Apartment Building Investing, Ed joins me to describe how a 9-to-5 in mortgage banking inspired his real estate investing career and share his secrets to successful multifamily investing with partners. He discusses what made him the sole exception to the Law of the First Deal, explaining why there’s a four-year gap between his first and second deal and what finally inspired him to get back in the game. Listen in for Ed’s insight on the value of accountability and learn what YOU can do to stay committed to your multifamily goals.

Key Takeaways

How Ed got into real estate

  • Work in mortgage banking exposed to wealth-building potential
  • Bought SFH rental every year to build portfolio of 10

What inspired Ed to pursue financial freedom with multifamily

  • Never off clock, have to take calls (even on vacation)
  • Rely on real estate agents + economy for livelihood

Ed’s first multifamily deal

  • Friend found 22-unit in Pensacola, FL in 2015
  • Bought for $740K, valued at $1.5M now
  • No distributions first year (units in bad shape)
  • Challenge to manage vendors from afar

Ed’s second multifamily deal

  • Purchased 88-unit in Wyoming with 3 partners
  • Lead from attorney handling family dispute
  • Great loan from local bank, refinancing now

How Ed found his partners

  • Kids go to school together
  • Clients from mortgage business

Ed’s insight on building successful partnerships

  • Accountability and clear division of labor
  • Invest in attorney to do operating agreement

What made Ed the exception to the Law of the First Deal

  • Went back to buying fourplexes
  • Fell back into 9-to-5 routine

Ed’s advice around staying committed to your multifamily goals

  • Write down goals and revisit every morning
  • Build in accountability with mentor or coach

Ed’s latest multifamily deal

  • Bought 100-unit deal in Tulsa, OK with 2 partners
  • Establish relationships with local bank and realtor
  • Must follow housing authority rules

What’s next for Ed

  • Put 22-unit on market
  • Look for deals in Oklahoma
  • Learn more about syndications

Ed’s advice for aspiring multifamily investors

  • Build good team
  • Get educated on markets
  • Get first deal done

Connect with Ed Hermsen

Email edhermsen14114@gmail.com

Resources

Purchase the Replay of Deal Maker Live

Learn More About Michael’s Mentoring Program

Fellowship of Christian Athletes

Hal Elrod

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

The Ultimate Guide to Buying Apartment Buildings with Private Money

Syndicated Deal Analyzer

BiggerPockets

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

LoopNet

CREXi

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_225.mp3
Category:general -- posted at: 1:00am EDT

Investing in the financial markets is stressful, especially in a crisis. And even if you happen to be brilliant at options trading, $100K in the equity market will still only buy $100K in assets. On the other hand, investing $100K in multifamily will buy you a $500K asset—and earn you five times the return. Not to mention the fact that it’s essentially recession-proof!

Bruce Fraser is the Managing Partner at Elkhorn Capital Partners, a private equity firm that focuses on multifamily residential real estate in economically insulated submarkets. Prior to Elkhorn, Bruce ran a lucrative hedge fund, successfully navigating the financial crisis before his research led him to multifamily. In a few short years, Bruce has built a portfolio of 1,600 units, and he currently serves as a member of the Forbes Real Estate Council.

On this episode of Apartment Building Investing, Bruce joins me to explain what makes multifamily a better investment than the financial markets, especially through the COVID-19 crisis. He tells us about his first multifamily deal (as one of my early coaching students!), discussing the challenges he faced early on and describing how the Law of the First Deal impacted his real estate career. Listen in for Bruce’s insight on the advantage of choosing a niche in distressed assets and learn his aggressive but realistic approach to scaling a multifamily business.

Key Takeaways

What makes multifamily a better investment than the financial markets

  • S&P 500 = 2.5% average annual return over last 20 years
  • Multiplier effect ($100K buys $500K asset, earn $100K vs. $20K)

Bruce’s first multifamily deal as one of my early coaching students

  • 134-unit property in Fort Worth
  • $5.7M acquisition (raise $2.1M)
  • Sold 14 months later for $7.9M

Bruce’s experience with the Law of the First Deal

  • Second deal under contract when first closed
  • Acquire 3 to 4 per year ever since

Why Bruce chose a niche in distressed situations

  • More control over occupancy growth than rent growth
  • Create much more substantive equity in short period

Why Bruce sought out coaching early on

  • Overcome uncertainty
  • Understand deal structure

Bruce’s approach to scaling a multifamily business

  • Manage time wisely (leverage third-party property manager)
  • Be aggressive but realistic

Bruce’s experience through the COVID crisis

  • Investors ready to buy and deals available
  • Biggest challenge = lending environment

Bruce’s goals over the next three years

  • Double portfolio to 2K to 3K units
  • Centralized position in handful of markets

Why multifamily is the best investment through the pandemic

  • Tax efficient distributions
  • Demand for apartments remains high
  • Protects against inflation

Connect with Bruce Fraser

Elkhorn Capital Partners

Email bruce@elkhornpartners.com

Resources

Goldman Sachs Economic Outlooks

Purchase the Replay of Deal Maker Live

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_224.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

There are tons of books out there that teach you how to invest in real estate syndications with other people’s money. But what if you’re the ‘other people’? What resource teaches you how to evaluate opportunities and pick the right sponsor to trust with your money?

Brian Burke is the President and CEO of Praxis Capital, a private equity investment firm that focuses on repositioning multifamily properties. An expert real estate syndicator and investor, he has acquired 3,000 multifamily units and 700 single family rentals in his 30-year career. Brian is also the author of the new book, The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications.

On this episode of Apartment Building Investing, Brian joins me to explain why passive investors need to look beyond returns when comparing syndication opportunities. He discusses why the sponsor is a more important consideration than the market or the deal itself, sharing the cautionary tale of an investor who lost her life savings to an unethical syndicator. Listen in for Brian’s insight on the benefit of investing in a non-correlated asset like real estate and learn what questions to ask as you evaluate different investing opportunities.

Key Takeaways

The cautionary tale Brian included in The Hands-Off Investor

  • Grocery clerk sold fourplexes to invest in TIC syndication
  • Sponsor ran off with money and she lost life savings

The three indicators used to measure the performance of a real estate investment

  1. IRR
  2. Cash-on-cash return
  3. Equity multiple

Why passive investors must look beyond returns when comparing opportunities

  • Sponsor can manipulate what forecasted cashflows will be
  • Look at what’s behind numbers to determine if reasonable

Why the sponsor is more important than the market or the deal itself

  • Bad sponsor can ruin good investment in great market
  • Take time to determine moral character, track record

What secrets sponsors don’t want passive investors to know

  • Hidden asset management fees
  • Treatment of bad debt
  • How distributions made

The pros and cons of being a passive investor in multifamily syndications

  • Professional edge (make more money working with expert)
  • Give up control, can’t exit if don’t like what’s happening

The benefit of investing in non-correlated assets like real estate

  • Drop in stock market unlikely to impact real estate
  • Reduces any single point of failure in portfolio

Brian’s advice for skeptical investors looking at multifamily real estate

  • Look at where world’s wealth made
  • Minimize risk with balanced portfolio

Connect with Brian Burke

Praxis Capital

Praxis Capital on LinkedIn

Praxis Capital on Facebook

Praxis Capital on Twitter

Praxis Capital on Instagram

Resources

The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications by Brian Burke

Brian on Apartment Building Investing EP005

Purchase the Replay of Deal Maker Live

Join the Nighthawk Equity Investor Club

Download Michael’s Free Report—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_223.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

In the world of startups, entrepreneurs take a lean approach early on with an eye to grow quickly. Ellie Perlman applied these principles to real estate, building and scaling a syndication business in a few short years. So, how do you shift from being a syndicator to managing a syndication business?

Ellie is the Founder and CEO of Blue Lake Capital, a real estate investing firm that specializes in value-add multifamily acquisition and management. She also leads REady2Scale, a mentoring program for aspiring multifamily syndicators, and hosts the REady2Scale Podcast. Ellie began her career as a commercial real estate lawyer and later transitioned to the role of property manager, overseeing properties worth more than $100M. She earned her MBA from the MIT Sloan School of Management.

On this episode of Apartment Building Investing, Ellie joins me to explain how growing up poor in Israel gave her the drive to succeed and share her journey from cleaning synagogues to earning an MBA from MIT. She discusses the decision to start her own real estate business, describing how multifamily syndication fulfilled her vision to both scale quickly and earn passive income. Listen in for Ellie’s insight on the magic of scaling a startup and get her advice on how to grow YOUR real estate business—even if you don’t have a budget!

Key Takeaways

How Ellie developed the drive to succeed

  • Cleaned synagogues as poor child in Israel to help family
  • Sent to youth village at 15, wanted better for own kids

What inspired Ellie to go to law school

  • Married at 18, working 3 jobs to provide for husband
  • Saw education as ticket out of ‘survival mode’

How Ellie developed an interest in real estate

  • Exposed to deals in international real estate department of law firm
  • Transitioned to property management to understand business side

What brought Ellie to the United States

  • Pursue MBA at MIT to learn how to start companies
  • Aunt had moved to US and achieved success

Ellie’s decision to go into business for herself

  • Desire to fulfill potential as self-made woman
  • Scarier NOT to try than to try and fail

Ellie’s insight on the power of believing in yourself

  • Causes to act in way that sets up for success
  • Changes other’s perception of who you are

Ellie’s big vision for building a real estate company

  • Reverse engineer plan based on net worth goal at age 50
  • Multifamily met requirements for scale, passive income

What Ellie would tell her younger self

  • Don’t listen to doubters + keep going
  • People project their own fear on you

How Ellie thinks about potential discrimination in real estate

  • Focus on what CAN change and improve self
  • Not productive to get stuck in victim mode

Why Ellie started a training program and podcast

  • Build relationships with potential investors
  • Learn something new to implement in business
  • Rewarding to see other people succeed

Why Ellie is an advocate for scaling your business

  • Burn out when try to do all on own
  • Magic in scaling to grow + grow quickly

Ellie’s advice for building and scaling a syndication business

  • Map out business want to create and define roles
  • Choose area of focus, partner or outsource rest

How to build a syndication business on a small budget

  • Hire intern through Handshake
  • Pay small stipend or offer equity

Connect with Ellie Perlman

Ellie’s Website

Email ellie@ellieperlman.com

REady2Scale Podcast

REady2Scale Mentoring Program

Blue Lake Capital

Resources

Register for Michael’s Free Masterclass: How to Do Your First Apartment Deal

Register for Deal Maker Live

Join the Nighthawk Equity Investor Club

BiggerPockets

Upwork

Handshake

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_222.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Doing something monumental like moving your family across the ocean to Hawaii or buying a 100-unit apartment complex may feel overwhelming. But Brandon Turner has done both of those things, and he contends that any process is easy IF you break it down into a series of tiny actions that take five minutes or less.

Brandon is the Founder of Open Door Capital, Vice President of BiggerPockets and Cohost of The BiggerPockets Podcast. He owns more than 500 rental units totaling $20M and has dozens of rehabs under his belt. Brandon’s work has been featured in Forbes, Entrepreneur and Money Magazine, and he is the author of several books, including The Book on Rental Property Investing and How to Invest in Real Estate.

On this episode of the podcast, Brandon joins me to share his assessment of the impact of COVID-19 on real estate investing, explaining how we should adjust our underwriting in light of the pandemic. He walks us through his favorite investing strategies right now, describing the opportunities he sees in real estate over the next 10 years. Listen in to understand the marketing techniques Brandon uses to raise LOTS of money online and get his advice on developing a clear VISION of where you want to be—and taking tiny action each day to get there!

Key Takeaways

Brandon’s assessment of the impact of COVID

  • Depends on whether second round of virus triggers another shutdown
  • 85% confident pandemic will be interesting memory in 6 months

How real estate investors should adjust their behavior right now

  • Less optimistic in underwriting (don’t count on raising rents in Year 1)
  • Good time to revisit fundamentals, be more conservative

The opportunities Brandon sees over the long term

  • Migration to South as more and more people reach retirement age
  • Invest in mobile home parks, senior living and low-income multifamily

How this economic crisis differs from the last recession

  • Last downturn CAUSED by shady practices in real estate
  • Less impact on real estate this time (except vacation rentals)

Brandon’s favorite real estate strategies right now

  • House hacking good for new investors
  • Rehab or value-add (BRRRR method)
  • Mobile home parks

Brandon’s insight around COVID’s impact on low-income earners

  • Still paying rent at mobile home parks
  • Government won’t allow economy to fail

BiggerPockets’ most successful marketing strategies

  • Build trust and credibility with content (blog, podcast)
  • Make money as software company, not education

How Brandon uses content marketing in his investing business

  • Build trust and credibility at scale with content
  • Leverage video to raise money, send thank you letters
  • Focus on growing Instagram audience (125K followers)

How Brandon architects his life around his family and business

  • Develop clear vision of success, know where want to be
  • Keep asking, ‘What’s the next little tiny step?’

Connect with Brandon Turner

Open Door Capital

Brandon on BiggerPockets

Brandon on Instagram

Resources

Join Michael’s Investor Incubator Mentoring Program

Register for Michael’s Free Masterclass: How to Do Your First Apartment Deal

Register for Deal Maker Live

Join the Nighthawk Equity Investor Club

Syndicated Deal Analyzer

Joe Fairless

Loom Video Messaging

The Book on Rental Property Investing by Brandon Turner

Bryce Stewart on BiggerPockets Podcast EP276

Vivid Vision 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: ABI_221.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

You may have heard the prediction that unemployment in the US could reach 30%, and that does sound scary. But what do those numbers really mean? And how would that worst-case scenario impact collections? What should we be concerned about as investors in affordable housing?

Damian Bergamaschi is the cofounder of Damris Capital, a money management firm that leverages data analysis to help its investors achieve financial freedom sooner. Damian leads Damris’ optimization research for all investment models and algorithms and serves as the portfolio manager of the firm’s real estate acquisitions.

On this episode of Apartment Building Investing, Damian joins me to explain how his obsession with data led to investments in commercial real estate. He discusses why affordable housing has been insulated from COVID-19, breaking down what the unemployment rate really means and how government subsidies have had a positive impact in the space. Listen in as Damian calculates projected collections in a worst-case scenario and find out why he is bullish on affordable housing as a reliable long-term investment.

Key Takeaways

The Damris Capital origin story

  • Idea to organize data, info from white papers
  • Test different asset classes by numbers

How Damian’s research led him to affordable housing

  • Devaluation of dollar = consistent long-term trend
  • Residential real estate most tax efficient way to invest indirectly in inflation
  • Add framework of Inflation Harvesting (layer on debt)

What we don’t understand about the unemployment rate

  • Many people have income despite being unemployed (e.g.: retirement, disability, etc.)
  • At 30% unemployment, 60% would still have income vs. 80% in normal circumstances

Why affordable housing is insulated from COVID-19

  • Government safety nets (stimulus checks, unemployment benefits)
  • More likely to pay for housing than discretionary expenses
  • Even in worst-case scenario, 70% collections projected

The adverse short-term impact COVID may have on affordable housing

  • Reductions for prepayment
  • Slightly lower collections
  • Credit card processing for online payments
  • Won’t raise rents for 12 to 18 months

Damian’s promising long-term outlook for affordable housing

  • Opportunity to raise rents at accelerated rate in 18 to 24 months
  • Consistent supply and demand in residential real estate
  • As cap rates contract, value of properties will expand

The cyclical nature of delinquencies and being paid up

  • Most caught up after tax return
  • Most delinquent after holidays

Why multifamily investors need to be thinking about September

  • Unemployment will start to hit caps (safety net goes away)
  • Renters may owe on taxes, not realizing UEB taxable

Connect with Damian Bergamaschi

Damris Capital

Resources

Join Michael’s Investor Incubator Mentoring Program

Register for Deal Maker Live

Join the Nighthawk Equity Investor Club

Damian’s Blog Post on Unemployment

Damian’s Blog Post on Mobile Home Park Investing

Damian’s Blog on Mobile Home Park Investing Performance Post-COVID

Inflation Harvesting

The Case-Shiller Home Price Index

US Bureau of Labor Statistics

Subprime Auto Loan Delinquency Statistics

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_220.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

No one knows exactly what will happen in the multifamily real estate market as the Coronavirus pandemic continues to unfold. But the heavy-hitters who have been in the game for a long time can predict, with relative certainty, which markets will thrive, when we’ll see new deal flow, and what the capital markets will look like over the next 12 months.

Michael Becker is a Principal at SPI Advisory and Senior Director of Mortgage Origination at Old Capital Lending. A 15-year veteran of commercial real estate banking, Michael has originated and managed portfolios in all the major asset classes. In the six years since he started investing in multifamily, Michael has acquired 10K units and currently manages a portfolio of 6K doors. He also serves as the Cohost of the Old Capital Podcast.

On this episode of Apartment Building Investing, Michael joins me to discuss the post-COVID new normal in multifamily real estate. He explains how the pandemic is impacting his business and offers insight around what the recovery might look like—and what that means for us as multifamily investors. Listen in for Michael’s predictions on multifamily capital markets and deal flow in the next twelve months and learn what you can do to be ready when the market turns!

Key Takeaways

How Michael’s career has evolved over the last several years

  • From 1K to 10K units in Dallas-Fort Worth and Austin
  • Start in workforce housing then sold old, bought new

How Michael was able to scale so quickly

  • Access to capital (JV with HNWI, shift to syndication)
  • Leverage technology for efficiency in raising equity

The biggest challenges Michael faced as he built SPI Advisory

  • Raise money + find deals while managing portfolio
  • Stay organized as scale (e.g.: send 1,200 K-1 forms)

Why Michael’s uses a third-party property management team

  • Geographically concentrated in certain area
  • No interest in accounting, HR or construction

How the pandemic is impacting Michael’s business

  • 5% delinquency on rents (4X normal rate)
  • Leasing only down by 15%

Michael’s predictions around the post-COVID recovery

  • Multifamily product used more than ever
  • Rent softening (how much depends on market)
  • Supply will constrict, new construction unlikely
  • Increase rental pool as people lose homes
  • Accelerating economic migration to Sun Belt

Michael’s predictions around post-COVID multifamily deal flow

  • Few deals in Q3, trickle in Q4
  • Steady stream of distressed deals starting in 2021

What the capital markets will look like for the next 12 months

  • No hard money, financial contingencies available
  • Challenging to get Fannie/Freddie loans
  • No bridge loans, personal guarantees required

What work Michael is doing on the acquisitions side right now

  • Active participant but don’t expect to buy until Q4
  • Aware of real-time data, ready when market turns

Where Michael sees his company going in the next five years

  • 10K units, continue transition to newer assets
  • Team runs day-to-day so Michael can travel

Connect with Michael Becker

Old Capital Real Estate Investing Podcast

SPI Advisory

Resources

Join Michael’s Mentoring Program

Register for Deal Maker Live

Join the Nighthawk Equity Investor Club

Michael Becker on ABI EP064

The Real Estate Guys Summit at Sea

Ken McElroy

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_219.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT