Financial Freedom with Real Estate Investing (Commercial Real Estate)

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

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

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

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

Those of us who enjoy success in the real estate business are typically introduced to a model, an investor operating at a scale we never considered, who gives us an idea for what’s possible and a vision for the future. And if we’re smart, we can learn from their mistakes and leverage their knowledge and experience as a springboard, affording us a more direct path to our own financial freedom.

Jacob Blackett is the Founder and CEO of Holdfolio, a platform that connects investors with high-yield investments in the real estate industry, and Syndication Pro, a software company that helps syndicators raise capital and manage investors online. Jacob got his start doing fix-and-flips as a 19-year-old sophomore in college, and today, he has placed over $50M into income-producing real estate, building a portfolio of 600+ units (as the lead sponsor) and a network of 3K registered investors.

On this episode of Apartment Building Investing, Jacob joins me to explain how an infomercial inspired his interest in real estate and share his journey from fix-and-flips to wholesaling to SFH rentals to multifamily. He walks us through the steps he took to scale his real estate business, describing why it’s beneficial to have an in-house property management team and how the technology he built to raise capital online became Syndication Pro. Listen in to understand how Jacob overcame losing $40K on his first deal and learn how to avoid his mistakes by joint venturing with an experienced team early on!

Key Takeaways

What attracted Jacob to the real estate space

  • Free fix-and-flip seminar (sophomore in college)
  • Up to $80K for single flip vs. CPA starting salary

Jacob’s experience with his first fix-and-flip

  • Picked up deal on MLS with grandma’s capital
  • Didn’t go as planned, ended up losing $40K

Why Jacob pivoted from flipping to SFH rentals

  • Very transactional, no tax benefits
  • Growing portfolio = monthly income stream

Jacob’s first AHA moment around scaling his business

  • Create partnerships with investors
  • Build portfolio of 150 SFH rentals quickly

What inspired Jacob’s transition to multifamily

  • All rentals in one place with staff onsite
  • Banks/lenders prefer multifamily

Jacob’s first multifamily deal

  • 46-unit with fire damage at 50% occupancy
  • Leveraged investor network for capital

What surprised Jacob most about multifamily

  • Breath of fresh air (power of all in one place)
  • Had to learn a lot about asset management

Jacob’s background working in property management

  • Met investor through wholesale deal
  • Managed all his acquisitions within 2 years

The benefits of using in-house property management

  • Generates revenue once reach 500+ units
  • Control and consistency in best practices

Jacob’s first steps for scaling his real estate business

  • Implement use of Propertyware software
  • Hire talented leasing agent and COO

How Jacob scaled his capital raising efforts

  • Crowdfunding sites caught eye early on
  • Built website to raise money online

How Jacob bounced back from losing $40K

  • Resolve to fix mistakes
  • Determined to pay grandma back

Jacob’s advice to his 19-year-old self

  • JV on first flips to hedge risk
  • Job at multifamily private equity company

Jacob’s advice for aspiring multifamily investors

  • Get on experienced team, see where you fit
  • Think creatively, don’t be afraid to take job

Connect with Jacob Blackett

Syndication Pro

Email jacob@syndicationpro.com

Resources

Join Michael’s Mentoring Program

Register for Deal Maker Live

Access Michael’s Syndicated Deal Analyzer

Enroll in Michael’s Deal Maker Mastermind

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

Join the Nighthawk Equity Investor Club

Propertyware

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_218.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Some real estate investments are riskier than others, especially in an economic downturn. Class A multifamily developers, for example, are likely to lose their tenant base in a recession. So, what can developers do to forecast what the world will look like at the end of a build cycle and make decisions accordingly? And what can we ALL learn from this approach that will help us prosper through multiple market cycles?   

Scott Choppin is the Founder of Urban Pacific, a real estate development company out of Long Beach, California. With 35-plus years of experience in the business, Scott has led the development of nearly 1,700 units throughout the Western United States. He is also responsible for a recent innovation known as Urban Town House, a middle-income, multigenerational housing product that serves urban families in California. Scott’s work has been featured in Forbes, The Los Angeles Times and Builder Magazine, among many other media publications.

On this episode of Apartment Building Investing, Scott joins me to explain how he got his start working for a large development firm, describing the wide range of skills and knowledge he picked up before striking out on his own. He discusses how he leveraged joint venture partnerships in the early days of Urban Pacific, what the company is doing to mitigate risk in a recession, and why he is optimistic about the current circumstances. Listen in for Scott’s insight on transitioning from a W-2 to real estate development and find out what YOU can do to survive and thrive in an economic downturn.

Key Takeaways

How Scott got into real estate development

  • Family background in industry
  • Work for large firm to learn on job

Why Scott chose another firm over the family business

  • No coddling
  • Gain broadest, deepest experience

What Scott learned in working for a big developer

  • Fill in broad framework of knowledge
  • Exposure to every aspect of business

How Scott transitioned into entrepreneurship

  • Build network of capital contacts
  • Joint venture with other developers

The structure of Scott’s early joint venture partnerships

  • Let me manage day-to-day operations of deal
  • Defer to senior partner as guarantor

Scott’s advice for shifting out of a salaried position

  • Save 2 to 3 years of monthly income in cash
  • Build developer fees into deal (overhead coverage)

The challenges around doing development as a side hustle

  • Best to learn by working in industry
  • Even small, local deal requires daily oversight

What kinds of deals Urban Pacific has done

  • Urban infill, residential development
  • From duplex to 453-unit multifamily

How Scott thinks about mitigating risk in a recession

  • Watch market signals to avoid oversupply
  • Focus on workforce housing for stable tenant base

Why Scott is optimistic about the current circumstances

  • Accelerated leasing velocity + rents holding
  • Lower costs for construction and land
  • Greater availability of labor from shutdown

Connect with Scott Choppin

Urban Pacific

Scott on LinkedIn

Resources

Join Michael’s Mentoring Program

Register for Deal Maker Live

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

Join the Nighthawk Equity Investor Club

‘6 Ways to Build a Career in the Real Estate Development Business’ by Scott Choppin

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_217v-2.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

How do you become a successful multifamily syndicator when you’re not old enough to order a beer? What does it take to overcome objections around being too young and too inexperienced—and raise more than half a million dollars in capital for your very first deal? What’s it like to achieve financial freedom before you turn 21?

Kyle Marcotte is an entrepreneur and multifamily real estate investor with a 119-unit portfolio valued at $5.5M. He was a pre-med student and Division I soccer player at UC Davis when Kyle learned about the potential to generate passive income with real estate. At the age of 20, he raised $600K and closed on his first deal in just four months. Now, Kyle is on a mission to help others become financially free with multifamily investing—regardless of age or experience.

On this episode of Apartment Building Investing, Kyle joins me to explain why he burned the boats and quit college to pursue real estate full time. He discusses how he got brokers and investors to take him seriously despite his lack of experience, sharing what gave him the confidence to keep moving forward through hundreds of no’s—until he finally got a YES. Listen in to understand why Kyle went for such a BIG first deal (a joint venture on 107 units!) and learn what he is doing now to build a personal brand and scale his multifamily syndication business.

Key Takeaways

What inspired Kyle to get into real estate

  • Read Rich Dad Poor Dad, got educated about passive income
  • Quit college to devote energy to multifamily

How Kyle realized he had the personality of an entrepreneur

  • Never able to accept being told what to do
  • Always trying to figure out best way

What financial freedom means to Kyle

  • Cover expenses with cashflow, residual income
  • Control over what day looks like

How Kyle got investors to take him seriously at the age of 20

  • Own inexperience but sell on grit
  • Deal pitch deck with multiple scenarios in story form

The specifics of Kyle’s first joint venture deal

  • 107-unit in Louisville (value-add play)
  • Raised $600K of $1M for $4.5M purchase price

Why Kyle kept going after hearing hundreds of no’s

  • Burned boats and had no other option
  • Commit to outcome, eventually someone says YES

Why Kyle went after such a large first deal

  • Need 75 units to achieve economies of scale
  • Acquisition harder but affords more control of time long-term

The nature of Kyle’s first joint venture partnership

  • Partner focused on underwriting
  • Kyle worked on raising capital

How things changed for Kyle after his first deal

  • Silenced critics, feeling of peace and ease
  • Credibility with investors who see as phenom

What Kyle is doing to build his investor base

  • Serve as guest on podcast circuit
  • Show up consistently on social media

How gave Kyle the confidence to keep moving forward

  • Relationship with higher power for guidance
  • Voice inside stronger than outside resistance

Connect with Kyle Marcotte

Kyle’s Website

Own Your Time with Kyle Marcotte

Kyle on LinkedIn

Kyle on Facebook

Kyle on Instagram

Resources

Register for Deal Maker Live

Join Michael’s Deal Maker Mastermind

Join the Nighthawk Equity Investor Club

Join Michael’s Mentoring Program

Michael’s Ultimate Guide to Buying Apartments with Private Money

Rich Dad Poor Dad by Robert T. Kiyosaki

Financial Freedom Summit

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

Divi

Mailchimp

ActiveCampaign

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_216.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Why are there so few women in multifamily syndication? According to a 2019 study conducted by Merrill Lynch, 61% of women polled cited a lack of knowledge about real estate investing. And the fact that it’s a male-dominated industry is also a contributing factor. So, how do we get more women interested in learning about multifamily—and the financial independence that comes with it?

Kaylee McMahon is the Founder of The Apartment Queen, a platform dedicated to ending abuse and codependent relationships by helping women create wealth with real estate investing. A staple of the Dallas real estate scene, Kaylee has purchased $2M in real estate as Key Principal and currently serves as General Partner in 730 units in Texas and Arizona totaling more than $23M in assets under management. She is also the host of #1 Leading Ladies, a podcast about what it’s really like to be a female entrepreneur.

On this episode, Kaylee joins me to share her path from real estate agent to multifamily investor, discussing how the childhood abuse she suffered gave her the GRIT to keep going when things get tough. She offers her take on how a lack of knowledge around a male-dominated industry keeps a lot of women out of the multifamily game, describing her mission to help people, especially women, achieve the total independence she enjoys. Listen in for Kaylee’s insight on reversing the beliefs that hold you back and get her advice on how to get started with apartment building investing!

Key Takeaways

Kaylee’s path to multifamily real estate

  • Got start as agent, apartment locator
  • Move on to house flips + SFH rentals
  • Got into apartments ‘to add zero’

What makes Kaylee a good entrepreneur

  • Autonomous (make decisions on own)
  • Fast learner, good with people

Why Kaylee made the transition from agent to investor

  • All-in on decision to achieve financial freedom
  • Not afraid of losing it all, could always bartend

Kaylee’s take on the idea of failure

  • Take lessons learned with you to next venture
  • Pivot as necessary (e.g.: rent flip vs. sell)

Why Kaylee deals with fear better than others

  • Abuse in childhood built tremendous amount of GRIT
  • Driven by WHY to help others create independence

Kaylee’s experience with multifamily syndication

  • Did first 2 deals on own with help of mentor
  • Started partnering with others (raising capital)
  • General Partner in 730 units to date

Kaylee’s take on why there are so few women in multifamily

  • Lack of knowledge, limiting beliefs
  • Male-dominated industry (Good Old Boys Club)

Kaylee’s advice for aspiring multifamily investors

  • Learn underwriting, how to vet sponsors and market
  • Invest passively but ride along with GP to learn

Connect with Kaylee McMahon

The Apartment Queen

The Apartment Queen on Instagram

The Apartment Queen on Facebook

Kaylee on Facebook

#1 Leading Ladies Podcast

Email admin@theapartmentqueen.com

Resources

Deal Maker Live

What’s the Best Investment: The Stock Market or Real Estate?

Join the Nighthawk Equity Investor Club

Merrill Lynch 2019 Wealth Decisions Study

Rich Dad Poor Dad by Robert T. Kiyosaki

Scaling Up: How a Few Companies Make It … and Why the Rest Don’t by Verne Harnish

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_215_v2.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

No good comes from making decisions out of panic or fear. So, what can multifamily syndicators do to navigate the next couple of months and cover the bills—even if our tenants can’t (or won’t) pay the rent on time? How can we reassure our investors that their money is safe and leverage the available safeguards to make it through the Coronavirus shutdown?

Jason Pero is the multifamily investor and syndicator behind Pero Real Estate, one of the leading real estate firms in Erie, Pennsylvania. Jason and his wife bought their first duplex in 2001 and continued to invest in small multifamily properties while he worked full-time in medical device sales. By 2012, Jason had built a 300-unit portfolio and was able to leave his 9-to-5 to pursue real estate full-time. He started syndicating deals in 2018, and today, Jason owns and self-manages 1K units in Erie County.

On this episode of the podcast, Jason joins me to discuss why he waited so long to get into syndication and why he self-manages his own portfolio. Jason explains how he is navigating the COVID-19 crisis, sharing the safeguards he has in place to get through the next few months and describing his approach to the situation as both a property manager and syndicator. Listen in for Jason’s insight on the buying opportunities coming on the market right now and find out why this is a good time to invest in yourself!

Key Takeaways

What inspired Jason to get into real estate

  • Internship with financial planning company
  • School teachers worth $5M (passive income from real estate)

Why it took Jason so long to take action on syndication

  • Limiting belief around loss of control
  • Realized could still call shots and serve more people

How the Coronavirus crisis elevates Jason’s mission

  • Watched stock market investors’ net worth plummet by 40%
  • Real estate provides predictable long-term investment

The safeguards that are helping Jason navigate COVID-19

  1. Withhold distributions to see how next months play out
  2. Can still pay bills with 30% economic vacancy
  3. Go to forbearance only as last resort

Jason’s take on the impact of the Coronavirus as a syndicator

  • Lenders still bullish, agency debt still in play
  • Social distancing poses challenges to due diligence

Jason’s approach to the Coronavirus as a property manager

  • Extend olive branch to good tenants
  • Waive late fees, work out payment plan

The buying opportunities coming available right now

  • Sellers more flexible with due diligence
  • Willing to consider financing contingencies

What makes Jason successful in a rural area

  • Greater metro area of Erie = 350K people
  • Large influx of outside $ (Buffalo, Cleveland and Pittsburgh)
  • Decision to self-manage properties

Why Jason self-manages his own portfolio

  • Didn’t know any different in beginning
  • Track record through economic upheaval reassures investors

Jason’s advice on navigating a difficult time

  • Don’t freak out, look at situation from practical standpoint
  • Research options (e.g.: SBA programs)
  • Communicate with investors + don’t run out of cash

Jason’s advice for aspiring multifamily investors

  • Find mentor or coach who’s been where want to go
  • Keep learning and stay humble

Connect with Jason Pero

Pero Real Estate

Jason on Calendly

Jason on LinkedIn

Jason on Facebook

Email jasonpero@yahoo.com

Resources

Register for Deal Maker Live

Join Michael’s Deal Maker Mastermind

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

Join the Nighthawk Equity Investor Club

Join Michael’s Mentoring Program

Rich Dad Poor Dad by Robert T. Kiyosaki

The Millionaire Next Door by Thomas J. Stanley and William D. Danko

SBA Programs for Coronavirus Relief

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_214.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What are you doing to keep your mindset right during the Coronavirus shutdown? Are you making the most of the extra time at home? Taking advantage of the opportunity to invest in yourself and learn something new? Taking care of yourself, your family, your team, your investors and your tenants?

Vinney Chopra is a sought-after multifamily real estate expert with 12 years of experience and 28 successful syndications under his belt. To date, Vinney and his team of 67 control and self-manage a portfolio of 4,100 units worth $330M. He is also the bestselling author of Apartment Syndication Made Easy and the host of two podcasts, Syndication Made Easy and the Mr. Smiles Motivation Talk Show. Vinney came to the US 43 years ago with just $7 in his pocket, and he credits his success to the power of positive thinking.

On this episode of Apartment Building Investing, Vinney joins me to discuss how his team is dealing with the short-term impact of COVID-19 and what they are doing to support tenants in his properties. Vinny compares his experience in 2008 to the present circumstances, discussing why multifamily is the best business to be in during a recession and sharing his prediction for a V-shaped recovery. Listen in for Vinney’s insight on cultivating a positive outlook and taking care of your physical and mental health through the current crisis.

Key Takeaways

How Vinny’s team is dealing with the short-term impact of COVID-19

  • Community managers + leasing agents helping people remotely
  • Keep mind right, remember that this will pass

How Vinny’s experience in 2008 compares to the current situation

  • Little money or experience in 2008, start with just 14 units
  • 4,100-unit portfolio today (cash rich and optimistic)

What Vinny’s team is doing to support the tenants in his properties

  • Talk to banks, utility companies and authorities for reprieve
  • Look for creative ways to help tenants (e.g.: prorate rent)
  • Educate residents on available government programs

Vinny’s take on how the stock market drop will impact multifamily

  • Properties currently on market will decrease in value
  • Lending tough right now, look to individual investors

How a V-shaped recovery is likely to play out

  • Short-term cashflow problem resolved in next few months
  • Temporary dip in NOI, use cash reserves to get through

How Vinny thinks about buying opportunities in multifamily

  • Change in seller behavior likely to shake loose good deals
  • Investors who lost $ in stock market looking for better asset

What Vinny is doing to keep his mindset right

  • Dress up for day and do morning routine as before
  • Make best of time with family, virtual meetups with friends
  • Focus on spirituality, mental and physical health

What’s most important to Vinny right now

  • Health of family, team and fellow citizens
  • Giving back to people in need

Vinny’s advice on making the most of the extra time we have

  • Hone in on skills
  • Build investor list

How Vinny cultivates a positive outlook

  • Feed mind with positivity, make lemonade out of lemons
  • God gives us trying times to grow our inner strength

Connect with Vinney Chopra

Vinney’s Website

Vinney on Facebook

Apartment Syndication Made Easy by Vinney Chopra

Syndication Made Easy Podcast

Mr. Smiles Motivation Talk Show

Text LEARN to 474747

Resources

Register for Deal Maker Live

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

Join Michael’s Deal Maker Mastermind

Join the Nighthawk Equity Investor Club

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_213.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

So, you understand the power of digital marketing to help you scale your multifamily syndication business. The question is, where do you start? What are the first steps to building an email list and attracting investors online?

Amy Porterfield is the award-winning digital marketing expert behind Online Marketing Made Easy and the creator of the Digital Course Academy. After seven years serving as the Director of Content Development for Tony Robbins, Amy became an entrepreneur herself and built a multimillion-dollar business teaching other people how to grow their own platform online. An authority in the realm of social media marketing, growing an email list and promoting and selling courses online, Amy is also the coauthor of Facebook Marketing All-in-One for Dummies.

On this episode of Apartment Building Investing, Amy joins me to explain why you need to build an email list, even if you have a strong social media following. She shares the simple steps you can take to attract investors with content and capture their email addresses with the right lead magnet. Listen in for Amy’s insight on using Facebook advertising to grow your audience and learn how to leverage digital marketing to scale your syndication business!

Key Takeaways

How Amy got into online marketing

  • Started career in corporate marketing (Harley Davidson, Tony Robbins)
  • Became own boss 11 years ago teaching how to grow online business

The mistakes Amy made early on as an online entrepreneur

  • Didn’t have expertise in niche
  • Didn’t have email list

How Amy decided what to create and who to serve

  • Got clear on expertise (social media, Facebook marketing)
  • Created very specific client avatar

Why an email list is better than social media followers

  • Algorithms change, you don’t own social platforms
  • You own email list + can use to build relationships

How to start building an email list from scratch

  1. Create content on consistent basis
  2. Create irresistible lead magnet (freebie in exchange for email)

How to choose your lead magnet

  • Must serve as INVISIBLE BRIDGE for audience
  • What avatar needs to know, understand or believe

How to get people to sign up for your email list

  • Use content upgrade strategy (if you loved…)
  • Make CTA on social posts, bios, podcasts and blogs

What to do if you don’t consider yourself a writer

  • Commit to one medium (e.g.: podcast or video)
  • Don’t try to be perfect, just show up consistently

The benefits of podcasting as a medium

  • Easier than writing or video, keep attention longer
  • Podcast platforms promote content for you

Amy’s advice on Facebook advertising

  • Keep it simple, start with boosting post
  • Upload email list to target ‘lookalike audience’
  • Do it yourself before you hire someone else

Amy’s top tips for online marketing

  • Start with mindset (i.e.: set small goal of 250 on list)
  • Simplicity is your friend

Connect with Amy Porterfield

Amy’s Website

Amy’s Free Masterclass: How to Start and Grow an Email List (Without the Stress, Tech Confusion, or Crazy Overwhelm

Marketing Made Easy Podcast

Resources

Watch the Replay of Michael’s Platform Builder Framework Webinar

Schedule a Call to Learn More About Michael’s Platform Builder Workshop

Facebook Marketing All-in-One for Dummies by Amy Porterfield, Phyllis Khare and Andrea Vahl

ActiveCampaign

Nighthawk Equity

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_212.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What’s the #1 mistake syndicators make in building an online platform? Many put the cart before the horse and promote their business BEFORE the site is ready. They don’t provide a compelling reason to GO to their platform, and they have no way of capturing a visitor’s information once they get there. So, what can you do to score a lead’s email address and grow a substantial list of potential investors?

Monick Halm is the creator of Real Estate Investor Goddesses, a platform designed to help 1M women achieve financial freedom through real estate investing. To date, she has built an audience of more than 10K potential multifamily investors! Monique has 14 years of experience as an investor, syndicator and developer, building wealth through apartment buildings, mobile home parks, vacation rentals and ground-up development. Together with her husband and community of investors, she owns 1,300-plus units across 5 states.

On this episode of the podcast, Monick joins me to explain what keeps women on the sidelines of multifamily investing and how she is getting more women involved through Real Estate Investor Goddesses. She shares her process for raising money for a deal through the platform, discussing why it’s crucial to capture each visitor’s email address and what she does to drive traffic to the site. Listen in for Monick’s insight on getting educated on multifamily during this unique moment in time and learn what she did to build a list of 10K in a very short period!

Key Takeaways

Monick’s background in the multifamily space

  • Started syndicating in 2016 (focus on multifamily)
  • Mission to help women achieve financial freedom

What keeps women from getting involved in real estate

  • Don’t even know it’s a possibility
  • Don’t know what steps to take
  • Afraid to get cheated, lose money

How to get more women involved in real estate investing

  • Provide education to collapse timelines
  • See people who look like them in success stories
  • Overcome limiting beliefs of what wealth means

What inspired Monick to build the REI Goddesses platform

  • Got idea at Real Estate Guys event
  • Already coaching women around money
  • Mission + name came as divine download

Who Monick attracts through her platform

  • Passive investors + aspiring syndicators
  • Majority are busy professional women

The process of raising money for deals with a platform

  • Promote on podcasts, Facebook ads
  • Provide value to list (e.g.: emails, webinars, etc.)
  • Share heart to help and serve

How Monick went about building REI Goddesses

  • Start with Facebook group, added podcast and book
  • Facebook ads to build list (500 to 10K in single year)

Why it’s crucial to capture a site visitor’s email address

  • Valuable connection you control
  • Provide freebie (i.e.: Real Estate Success Blueprint)

How Monick justifies a significant investment in paid traffic

  • Spends $3K to $5K per month for Facebook ads
  • Single program sale covers cost of acquisition
  • Build relationships for life, not just one transaction

Monick’s approach to marketing her platform

  • Choose one or two paths to start
  • Hire experts (more than pay for selves)

Monick’s advice on navigating the Coronavirus crisis

  • Get educated now to spot opportunities later
  • Take advantage when others running scared

Connect with Monick Halm

Real Estate Investor Goddesses

REI Goddesses on Instagram

REI Goddesses on Facebook

REI Goddesses on Twitter

REI Goddesses Podcast

Resources

Deal Maker Live

Michael’s Platform Builder Workshop

Real Estate Investor Goddess Handbook by Monick Paul Halm

Pat Flynn on ABI EP210

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_211.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

So, you want to connect with potential investors online. But how do you go about building a thought leadership platform? What kind of content should you create? And how do you best serve your audience so that they are ready to invest when a deal comes up?

Pat Flynn is the creator of Smart Passive Income, the premiere learning and development platform for online entrepreneurs. He got into online marketing out of necessity in 2008 when he was laid off from his dream job as an architect. Since then, Pat has built several successful online businesses and impacted millions of people around the world. He credits his success to serving others first, and then building systems to lean into that service even more.

On this episode of Apartment Building Investing, Pat joins me to explain how he got into the online marketing space and why he thinks EVERYONE should build a thought leadership platform. He offers insight into the power of podcasting, sharing how YOU can start a podcast of your own for under $100. Listen in for Pat’s insight on what to consider as you create an online platform and get his top tips for producing consistent content that serves your audience!

Key Takeaways

How Pat got into the online marketing space

  • Let go from dream job as architect in 2008 with no Plan B
  • Inspired by podcast to build website on LEED exam
  • Published study guide, made nearly $8K in single month
  • Started Smart Passive Income to help others start businesses

Pat’s response to the Why Me? objection

  • Don’t have to be expert, just few steps ahead of audience
  • Show up as person and connect to build superfans

How Pat defines smart passive income

  • Not get rich quick, have to put in work
  • Mechanisms in place to pay back later

The business model for an online venture

  1. Pick target market, research needs
  2. Create platform to demo authority
  3. Monetize (sponsorships, ads, products, affiliate marketing or pledge)

Why Pat thinks EVERYONE should build a platform online

  • Place to connect (nobody’s like you)
  • Build relationships and authority

What to consider in building a platform

  • Choose 1 format to start (e.g.: blog, podcast, YouTube channel)
  • Commit to producing content consistently

Pat’s tips for producing regular content

  • Planning session every quarter
  • Focus on questions people ask

What Pat loves about podcasting

  • Ease of creation (after initial setup)
  • Build amazing relationships with listeners
  • Evergreen content

How to start a podcast

  • Decide on topic and how helps people
  • Establish name, artwork and branding
  • Get mic + hosting service (<$100)

The biggest mistakes new podcasters make

  • Launch with single episode (at least 3)
  • Try to fit in specific time vs. range
  • Don’t publish regularly
  • Edit every breath or ‘um’

Pat’s top advice for aspiring platform builders

  • Consider what you’re missing out on by NOT doing it
  • Get started with intention of helping 1 real person

Connect with Pat Flynn

Pat’s Top Resources

Pat’s Website

Smart Passive Income

Resources

Deal Maker Live

Michael’s Free Platform Builder Webinar

Rich Dad Poor Dad by Robert T. Kiyosaki

Traffic & Conversion Summit

Internet Business Mastery

Superfans: The Easy Way to Stand Out, Grow Your Tribe, and Build a Successful Business by Pat Flynn

Patreon

SwitchPod DSLR Tripod

WordPress

Squarespace

Wix

Gary Vaynerchuk

Tim Ferriss

Pencils of Promise

The Joe Rogan Experience

Ask Pat

Apple Podcasts

Google Podcasts

Spotify Podcasts

Stitcher Radio

Pat’s YouTube Tutorial on How to Start a Podcast

Samson Q2U Mic

GarageBand

Adobe Audition

Audacity

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_210.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Imagine being able to raise millions of dollars for a syndication deal in just a few days, with very little effort on your part. If you build it right, an online platform allows you to do just that, scaling your capital raise business by 10X in just 12 to 18 months!

Kate Buck is the Director of Marketing for us here at The Michael Blank organization. With nearly 15 years of experience in social media management and content production, Kate has worked with some of the top names in the digital marketing space and led strategic social media campaigns for global corporations, films, entrepreneurs and nonprofits.

On this episode, Kate turns the tables to ask me some questions about building an online platform to raise capital for multifamily syndications. We discuss what it takes to build an effective digital marketing platform and why you DON’T have to be a writer or a tech genius to do it. Listen in for the 4 things your platform needs before you try any of the more advanced marketing strategies (like paid advertising) and learn how I leveraged our online platform to raise $8M in 3 days!

Key Takeaways

Kate’s extensive background in digital marketing

  • Work with pioneers in online marketing space
  • Expert in social media and content production

How I learned the value of online marketing to raise capital

  • Struggled to raise money for deal 18 months ago
  • Realized not engaging list beyond lead capture
  • Started producing weekly content for audience
  • Able to raise $8M in 3 days for recent deal

Why syndicators need to create an online platform

  • Scale capital raising business (10X in 12-18 months)
  • Impact and serve more people, grow influence

The function of an online platform for syndicators

  1. Attracts certain kind of person/investor
  2. Capture information (e.g.: email address)
  3. Serve audience with educational material
  4. Lead audience to some transformation

The biggest mistakes syndicators make in creating a platform

  • No way to capture lead on website
  • No follow-up to make leads deal ready
  • Overwhelmed by process, do nothing
  • Think every element must be perfect

Why ANYONE can build an online platform to raise capital

  • Can create original content without being writer
  • Never been easier to use technology
  • Easy to outsource content production

The 4 things your platform needs before you try advanced strategies

  1. Method of capturing leads
  2. Series of automations to welcome and indoctrinate
  3. System for onboarding to investor club
  4. Infrastructure + commitment to produce regular content

Some advanced marketing strategies for promoting your platform

  • Promote lead magnet at Meetup, on podcasts
  • Shout out lead magnet on YouTube channel
  • Suggest next best action (e.g.: book + companion course)
  • Paid traffic through Facebook

The business case for building an online platform to raise capital

  • Invest at least 20% of acquisition fee in marketing machine
  • Convert industry standard 1 investor for every 32 leads
  • Earn about $2,100 for average investment of $70K each

Connect with Kate Buck

Kate’s Website

Kate on LinkedIn

Kate on Twitter

Kate on Facebook

Resources

Deal Maker Live

Sign Up for Michael’s Live Webinar—April 15 at 8pm EST

Michael’s Spreadsheet & Blog Post on Building a Platform

Temi

Financial Freedom with Real Estate Investing by Michael Blank

Join the Nighthawk Equity Investor Club

Joe Fairless

Dan Handford

Neal Bawa

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_209_v2.mp3
Category:Commercial Real Estate -- posted at: 1:01am EDT

Beyond the risks it poses to our health, the Coronavirus is causing chaos in our economic system as well. Businesses have closed their doors and many Americans have lost their jobs or had their hours cut. And the stock market is on its way down. But what does it all mean for us as multifamily investors? Is the sky falling? Or are there things we can do to protect ourselves and serve our tenants in this challenging time?  

On this episode of Apartment Building Investing, I’m sitting down with an expert panel of multifamily operators that includes Drew Kniffin, Brian Burke, John Cohen, Reed Goossens, Andrew Cushman and Ellie Perlman to discuss what we are doing to protect our investments and our investors through the Coronavirus pandemic. We share our strategies for income preservation and expense reduction, explaining how we are supporting tenants through the crisis and what programs we are leveraging to keep our employees on payroll.

We go on to address how COVID-19 is likely to impact passive investors and offer insight on what they can do to take advantage of the shift to a buyer’s market. Finally, we explore the short-, medium- and long-term implications of the economic fallout from the Coronavirus and describe the incredible wealth-building opportunity available to savvy real estate investors in the months to come. Listen in to understand what defines a good deal in the current environment and learn how to use this time to prepare for the next up cycle!

Key Takeaways

What Andrew is doing as an owner to protect his investments

  • Put together resources for tenants
  • Negotiate with service providers to cut costs
  • Apply for Paycheck Protection Program
  • Flexible with tenants, reward early payment
  • No increase in rent on lease renewals

How John’s team is navigating the Coronavirus crisis

  • Reach out to tenants with message ‘here for you’
  • Focus on tenant retention, mitigating expenses

Ellie’s insight on tenants who can’t pay vs. tenants who won’t

  • CARES Act prohibits evection whether lost job or not
  • Depends on prior relationship with tenants, location

The additional things Ellie’s team is doing to navigate COVID-19

  • Offer furnished model units to traveling nurses
  • Security deposits to pay rent, replace with insurance

The additional things Brian’s team is doing to navigate COVID-19

  • Refer tenants to Project Porchlight financial counseling
  • Postpone rent or amortize over next several months
  • $50 grocery gift card if reach out to explain situation

Brian’s insight into the Paycheck Protection Program

  • SBA loan to cover 2.5X payroll if keep employees
  • May not apply to third-party property manager

Reed’s perspective on the Coronavirus crisis

  • Keep hysteria manageable, get good info to tenants
  • Share maintenance tech across portfolio

How Drew and Brian think about the risk for passive investors

  • Money safe if deal well-capitalized + plenty of reserves
  • Most sponsors halt distributions next quarterly cycle
  • Little/no rent growth and reduced occupancy for awhile

John’s insight on how the crisis will change lender behavior

  • Vet sponsors harder moving forward
  • Require 12-plus months of reserves

The overnight shift from a seller’s market to a buyer’s market

  • Must assess risk of unknown (focus on #s, not emotion)
  • Buyers ask for discount based on current financials

What passive investors should do in the short-term

  • More opportunity to invest in quality deals
  • Conduct proper due diligence on operator

Our predictions around what to expect in the short term

  • All feel pain as transaction velocity grinds to halt
  • Be proactive, lenders willing to work with us

Our predictions around what to expect in the medium term

  • Take time for income and job growth to recover
  • Wealth building opportunity if not too anxious

Our predictions around what to expect in the long term

  • Look back and laugh in years to come
  • Grow and get stronger from weathering storm

How to stress test acquisitions in this new environment

  • Over-raise for operations and capital expenditures
  • Reduces IRR but money on hand for rainy day events

Why it’s hard to underwrite deals right now

  • No good info on change in economic vacancy rates
  • Year-on-year rental growth will take massive hit

How student housing may be affected by the Coronavirus crisis

  • Protected if parent guarantee in leases, semester vs. year
  • Consider reaching out to hospitals to provide extra beds

How the stock market crash will affect our ability to raise capital

  • Some investors not as liquid due to stock market losses
  • Those with capital to deploy may prefer real estate

What the average investor should be doing right now

  • Get educated and line up investors
  • Start underwriting deals, develop parameters
  • Choose markets likely to come back quickly
  • Don’t get too excited but be ready for up cycle

The moratorium on evictions due to COVID-19

  • Local governments not processing evictions at this time
  • Forbearance requires not evict anyone over term of loan

The potential growth of secondary and tertiary markets

  • Less dense = safer than tight, urban environments
  • Also depends on economic makeup of area

What defines a good deal in this environment

  • 60- to 90-day due diligence
  • No hard money down, financing contingency
  • Mitigate risk with conservative underwriting
  • Retrade with integrity if value goes south

The 5 steps for making a successful shift to entrepreneurship

  1. Singular focus
  2. Measurable action plan
  3. Proper time management
  4. Understanding of finances
  5. Accountability

Connect with the Expert Panel

Drew Kniffin

Brian Burke

John Cohen

Reed Goossens

Andrew Cushman

Ellie Perlman

Resources

Deal Maker Live

Deal Maker Mastermind

Michael’s Products & Programs

Michael’s Mentoring Program

Nighthawk Equity

The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications by Brian Burke

CARES Act

Paycheck Protection Program

Project Porchlight  

Josh Thomas

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_208.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Are you working a W-2 job that leaves you depleted? Even if you love what you do, it’s likely that the stress of the commute on top of the work itself means you have little left to give to your family at the end of the day, never mind making a significant impact on the world at large. Krista Wilper was tired of being too tired to engage with her husband and sons, so she leveraged multifamily investing to quit her corporate job. And she credits her success to a daily effort to keep her mind in the right place.

Krista is the creator of Synergy Invested LLC, a real estate education and investing platform based in Golden, Colorado. She retired from her executive position at an adult beverage company at the age of 38, walking away from a six-figure income to pursue real estate full time. Now, Krista and her husband own $2.2M in single and multifamily investments, and she is on a mission to help others achieve financial freedom and get control of their time and energy through real estate investing.

On this episode of Apartment Building Investing, Krista joins me to explain why she quit a job she loved to pursue real estate, sharing the series of conversations she had with her husband and what she loves most about not working a 9-to-5. She discusses why she took action when so many others don’t and explores why there are so few women in the world of multifamily. Listen in for Krista’s insight on the value of hiring a coach, getting the right support system in place, and training your mind for multifamily investing!

Key Takeaways

Why Krista made the decision to quit a job she loved

  • Stress around being both mom AND executive
  • No energy to discipline son caused tension with husband

What the conversation with Krista’s husband was like

  • Planned on retiring in 5 years, counted on her income
  • Doubted that she could get him out with real estate

Why Krista took action when so many others don’t

  • Ability to push outside comfort zone + manage fear
  • Surrounded self with encouraging people
  • Kept returning to numbers when emotions came up
  • Daily effort to keep mind in right place
  • Something bigger than self to keep on track

What Krista loves most about not working a 9-to-5

  • Energy to juggle responsibilities as mom
  • Time to focus on helping other people

Krista’s primary real estate investing goals

  1. Double net income
  2. Allow husband to retire in 3 to 5 years

The first steps Krista took to reach her investing goals

  • Hired a coach (helped think BIG)
  • Eliminated naysayers from circle

Krista’s insight on overcoming both internal and external challenges

  1. Find something bigger than yourself to chase
  2. Train your mind (stop comparing, listening to excuses)
  3. Understand your relationship with money + limiting beliefs
  4. Take action even when you don’t know what you’re doing
  5. Hire coaching
  6. Come back to numbers

Krista’s take on why there aren’t more women in investing

  • Brains operate differently (spaghetti vs. waffles)
  • Ego in thought leader communication = turnoff for women

Krista’s advice for aspiring multifamily investors

  1. Get coach
  2. Get mind right
  3. Get support group in place (includes partner and team)
  4. GO

Connect with Krista Wilper

Krista on LinkedIn

Synergy Invested on Instagram

Synergy Invested on Facebook

Resources

You Are a Badass at Making Money: Master the Mindset of Wealth by Jen Sincero

The Real Estate Guys

Michael’s Mentoring Program

Deal Maker Live

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_207.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Once you’ve exhausted your sphere of influence, where can you go to raise capital for multifamily deals? You might be surprised to learn that LinkedIn is one of the best places to connect with high-net-worth individuals (HNWI) and introduce them to the benefits of apartment building investing.

Yakov Smart is the creator of LinkedIn Lead Enterprises, a platform designed to help business owners find clients on LinkedIn. An internationally recognized LinkedIn expert, Yakov teaches top CEOs, bestselling authors and real estate syndicators how to transform their LinkedIn profiles into priceless, relationship-building assets. Yakov is also the author of Disrupting LinkedIn: The Definitive Guide to Generating Leads, Receiving Referrals and Attracting High-End Clients Through Marketing on LinkedIn.

On this episode of Apartment Building Investing, Yakov joins me to explain why LinkedIn is the best social platform for finding investors and raising capital for multifamily. He shares the biggest mistakes syndicators make on LinkedIn and walks us through his SPOT formula for finding leads through the professional networking platform. Listen in for Yakov’s insight on the tools available for building lists and learn how YOU can connect with the right people, send the right message, and scale your marketing efforts with LinkedIn.

Key Takeaways

Yakov’s take on the availability of capital for real estate

  • HNWI not on traditional social media channels
  • Use LinkedIn to find + educate right people

Why LinkedIn is the best platform for finding investors

  • Average household income = $115K
  • Use to expand professionally and build wealth
  • 40M direct decision-makers, 100M influencers

Why LinkedIn works well for raising capital

  • More interactive since bought by Microsoft
  • Make connections and learn on own time

How Yakov discovered LinkedIn as a lead source

  • Used to generate new business (software sales)
  • Market to hard-to-reach individuals

The biggest mistakes people make on LinkedIn

  1. Being unintentional
  2. Profile not up-to-date, all about you
  3. Pitch everyone with same message
  4. Focus too much on content creation

Yakov’s SPOT formula for finding leads on LinkedIn

  • Start with your list
  • Position self as authority
  • Optimize for what THEY want
  • Transition relationship offline

The four ways to build lists on LinkedIn

  1. Free search
  2. Search by groups
  3. Sales navigator search
  4. Paid traffic

How to scale your marketing efforts on LinkedIn

  • Use AI to automate custom follow-up
  • Respond manually only when raise hand

How to convert investors from stocks to real estate

  • Use information-based marketing
  • Build LinkedIn groups

Connect with Yakov Smart

LinkedIn Lead Enterprises

Yakov on LinkedIn

Resources

Michael & Yakov’s LinkedIn Webinar

Disrupting LinkedIn: The Definitive Guide to Generating Leads, Receiving Referrals and Attracting High-End Clients Through Marketing on LinkedIn by Yakov Savitskiy

Yakov’s Irresistible Profile Cheat Sheet

Meet Edgar

Michael’s Platform Builder Framework Webinar

What’s the Better Investment: The Stock Market or Real Estate?

Nighthawk Equity

Michael’s Investor Incubator

Deal Maker Live

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_206.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What is your true, God-given calling in this life? Most of us are limited by time and money, so we don’t even dare to dream about fulfilling our purpose. But what if multifamily investing could give you the freedom to pursue your calling? To live a life of significance? And to make a real impact in the world?

Ellis Hammond is the founder of Kingdom Capitalists, the #1 mastermind for Christian real estate entrepreneurs. In 2018, when Ellis was serving as a full-time college pastor, he and his wife invested in a $600K duplex in San Diego. Nine months later, he added a 144-unit multifamily property in Memphis to his portfolio. Today, he manages a network of investors seeking passive income opportunities across the US with the goal of increasing their income and impact.

On this episode of Apartment Building Investing, Ellis joins me to discuss what inspired him to get involved in real estate, sharing his AHA moment around the relationship between capital and impact. He opens up about the limiting beliefs he struggled with early on, describing the mindset shift that helped him get comfortable asking investors for very large sums of money. Listen in for Ellis’ insight on the power of community in real estate investing and learn how multifamily can give YOU the freedom to pursue your true calling.

Key Takeaways

What inspired Ellis to get involved in real estate

  • Running Christian nonprofit in San Diego
  • Team member struggling to buy groceries

The Christian community’s limiting mindset around money

  • Seen as root of all evil
  • Ministry needs capital to create greatest impact

How Ellis’ approach to real estate investing evolved

  • Bought and renovated $600K duplex in San Diego
  • Introduced to syndication (leverage money raising skills)

The limiting beliefs Ellis struggled with early on

  • Thinking had to be millionaire to do multifamily
  • Scared to go big, ask for 10X sums of money

Ellis’ concept of creating margin in your life

  • Real estate gives freedom of time or money
  • Use to fulfill God’s calling on your life

What allowed Ellis to quit his job to pursue multifamily

  • Support of wife and team in ministry
  • Realized okay to pursue different calling

What Ellis is passionate about right now

  • Launch mastermind for Christian investors
  • Increase income + impact to change world

Why Ellis loves the community of real estate investing

  • Don’t have to love everything about process
  • Accelerate goals with just ONE connection

Ellis’ advice for aspiring multifamily investors

  • Figure out + leverage your superpower
  • Don’t have to do it alone

Connect with Ellis Hammond

Kingdom Capitalists

Ellis’ Website

Ellis on LinkedIn

Email ellis@kingdomcapitalists.co

Resources

Rich Dad Poor Dad by Robert T. Kiyosaki

Uganda Counseling and Support Services

Deal Maker Live

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_205.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

If you’re looking to scale your efforts at raising capital with an online platform, you may be curious what you can and cannot do to market your business. What exemptions do you need to file in order to legally advertise a multifamily offering? How do you build the ‘preexisting and substantive’ relationship with investors the SEC requires for the 506(b) when you’re connecting online?

Gene Trowbridge is the managing partner of Trowbridge Sidoti LLP, a California law firm that specializes in real estate syndications and crowdfunding. Gene has extensive experience in commercial real estate investment, and in the last six years, his firm has authorized securities offering documents for more than $1.5B of equity raised. He is also the author of It’s a Whole New Business, the definitive book on securities for multifamily investors.

On this episode of Apartment Building Investing, Gene joins me to discuss the two methods for legally advertising a real estate syndication (online or otherwise), the Reg A and 506(c). He explains why the 506(b) is more popular than the 506(c) and offers advice on proving a preexisting and substantive relationship with investors per the rules of the 506(b). Listen in for Gene’s insight on doing a 1031 Exchange in a syndication and learn how to leverage the tenant in common agreement to bring on new investors.

Key Takeaways

The two ways to legally advertise a real estate syndication

  • Regulation A+
  • Regulation D 506(c)

What syndicators need to know about the Reg A

  • Costs $50K to $100K and takes 4 to 6 months
  • Works for syndicators with huge social network

Why more investors don’t do a 506(c)

  • Most sophisticated sponsors have enough investors
  • Requires third-party verification of accredited investors

The SEC rules around the 506(b)

  • Not allowed to advertise offering
  • Must show substantive + preexisting relationship

What it means to have a substantive + preexisting relationship

  • More than just collecting email address
  • More interactions = easier to prove

Gene’s advice on proving a preexisting relationship

  • Develop record-keeping system to track interactions
  • Use introductory questionnaire (sign and date)

How to work with an investor with 1031 Exchange money

  • Cannot invest in LLC (must be deed to deed)
  • Make them tenant in common in new ownership structure

What to do when some of your LPs want their money from a sale

  • Interview investors prior to sale re: potential for 1031
  • Open two separate escrow accounts (one for holdouts)

How to bring on new investors in a 1031 Exchange project

  1. Operating agreement may allow for new investors in LLC
  2. Two separate LLCs as tenants in common (= partnership)

Connect with Gene Trowbridge

Trowbridge Sidoti LLP

It’s a Whole New Business by Gene Trowbridge, Esq. CCIM

Resources

Regulation A

Regulation D

No Action Letters

1031 Exchange

Gene’s TIC (Tenant In Common) Epidemic Webinar

Opportunity Zones

How to Raise Millions in Days with the Platform Builder Framework

Deal Maker Live

What’s the Best Investment: The Stock Market or Real Estate?

Nighthawk Equity

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_204.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Imagine earning as much as $10K in cashflow distributions from your investment in a multifamily property in a given year—yet claiming a taxable LOSS! You CAN mitigate (and in many cases even eliminate) taxable income for years with the MAGIC of bonus depreciation. But you do need to do a cost segregation analysis to claim it.

Terry Judge is the Founder and CEO of CORE Solutions Group, one of the nation’s leading cost recovery consulting firms specializing in engineering-based cost segregation studies. He is committed to educating multifamily investors on how to maximize cashflow and take full advantage of the ever-changing tax code. Terry has 14 years of experience in the cost seg space, yielding more than $1B in net tax savings for CORE clients.

On this episode of Apartment Building Investing, Terry joins me to discuss the benefits of doing a cost segregation analysis, explaining how it accelerates depreciation and mitigates the investor’s taxable income. He describes how changes to the 2017 tax code in made it useful for even small multifamily buildings to leverage a cost seg study and walks us through the advantages of taking bonus depreciation in Year 1 (versus spreading it out over the hold period). Listen in for Terry’s insight around the best exit strategies for avoiding a big tax bill and learn about the additional tax breaks you can earn with energy-saving renovations.

Key Takeaways

How Terry got into cost segregation analysis

  • Work in energy space, introduced to idea by accountant
  • Noticed gap between government, CPA and investor

The benefits of doing a cost segregation analysis

  • Way to accelerate depreciation (from 27½ to 5 years)
  • Take advantage of time value of money
  • Mitigate taxable income, 20-year carry forward

What a cost segregation analysis looks like

  • Breaks property down into component parts
  • Apply depreciation schedule one by one

How the 2017 Tax Cuts and Jobs Act changed cost seg

  • Smaller properties qualify ($500K)
  • Take bonus depreciation in Year 1

The process of working with Terry’s team at CORE

  • Send purchase price/date and address
  • Kickoff call to go over benefit analysis

How much it costs to get a cost segregation analysis

  • Varies by location, requirements
  • 15:1 return on investment

How to avoid a big tax bill when you sell a property

  • Hold 3+ years to leverage time value of $
  • Impact lessened as value of assets reduced
  • Buy new property same year to offset gain

Why Terry advises taking bonus depreciation in Year 1

  • Can opt to spread out over hold period
  • Investors carry forward losses if can’t use

The Energy Efficient Commercial Buildings Deduction

  • Incentivizes energy saving renovations
  • Includes lighting, HVAC and building envelope
  • Up to $180K in additional depreciation

Connect with Terry Judge

Core Solutions

The Cost Seg Guy No-Cost Benefit Analysis

Resources

Tax Cuts and Jobs Act of 2017

IRC 179D

Deal Maker Live

What’s the Best Investment: The Stock Market or Real Estate?

Nighthawk Equity

Michael’s Mentoring Program

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_203.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Two years ago, Will Harvey thought that only people with millions of dollars could own apartment buildings. And then he started listening to podcasts and reaching out to other entrepreneurs and real estate investors. Their stories broke the ceiling on what he thought was possible, and by the end of 2019, Will was able to quit his W-2 job and pursue multifamily full time.

At just 26 years of age, Will is the Vice President of CEO Capital Partners, a real estate acquisition firm focused on multifamily. A veteran of the residential mortgage business, Will earned National Rookie of the Year honors in 2017 and operated in the top 5% at one of the largest retail lenders in the US. Now, he controls over $1.5M of real estate in Northern Virginia. Will is also the cohost of Wealth Junkies, a podcast dedicated to sharing the stories of successful entrepreneurs and liberating 1,000 people from the rat race.

On this episode of the podcast, Will joins me to talk about how being hell bent on getting OUT of his W-2 job led him to real estate investing. We discuss how Will leveraged multifamily podcasts to turn his car into a mobile university, how he found his joint venture partners, and what steps he took to quit his 9-to-5 at the end of 2019. Listen in for Will’s insight on building the Wealth Junkies platform and get his advice on surrounding yourself with people who’ve done what you want to do.

Key Takeaways

How Will got into real estate investing

  • Looking for way out of mortgage business
  • Started with house hacking SFHs

How Will got educated around multifamily

  • Listening to podcasts (car = mobile university)
  • Reach out to dad’s friends in real estate

Will’s initial multifamily strategy

  • Wanted to invest locally in Winchester
  • Realized pond too small to find good deals

Will’s insight on the value in joint venturing

  • Accelerates progress to work together
  • Play to strength in building relationships

Will’s first deal through CEO Capital Partners

  • Raise capital for experienced operator (cosponsor)
  • Afforded team credibility with brokers

The steps Will took to quit his job

  • Lived well below means
  • Refi one property, increased rent on SFHs
  • Passive investment in multifamily

Will’s take on what building a platform does for you

  • Position self as thought leader
  • Create funnel to capture info
  • Raise capital beyond local investor network

What Will would tell his younger self

  • Think BIGGER
  • Change I can’t to How can I _______?

Why Will recommends listening to podcasts

  • Accelerates learning
  • Break ceiling of what thought possible

Will’s vision of the next five years

  • Expenses covered
  • Continue to grow + scale

Will’s advice for aspiring multifamily investors

  • Seek advice from qualified people

Connect with Will Harvey

Wealth Junkies

Email will@wealthjunkies.com

CEO Capital Partners

Resources

Deal Maker Live

Bigger Pockets Real Estate Podcast

Corey Peterson

CoStar

LoopNet

The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results by Gary Keller with Jay Papasan

Rich Dad Poor Dad by Robert T. Kiyosaki

Trump: The Art of the Deal by Donald J. Trump with Tony Schwartz

Syndicated Deal Analyzer

Michael’s Platform Builder Framework

Nighthawk Equity

Michael’s Mentoring Program

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_202.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What excuse are you using to explain why you haven’t gotten started with multifamily? Too young? Too old? No money? No experience? No time? What if those limiting beliefs are nothing more than a story you’re telling yourself to justify a lack of action? What if you could overcome those beliefs TODAY and take the first steps toward financial freedom?

Rod Khleif is a multifamily investor, business consultant and high-performance coach with a passion for giving back. He serves as the host of the iTunes top-ranked podcast Lifetime Cash Flow Through Real Estate Investing and author of How to Create Lifetime Cash Flow Through Multifamily Properties, a must-read for aspiring investors. Rod has built several successful multimillion-dollar businesses, and he is known as one of America’s top real estate investment and business development trainers.

On this episode of Apartment Building Investing, Rod joins me to offer insight on what’s really behind the limiting beliefs that keep us from getting started in multifamily and share his responses to some of the most common excuses aspiring investors give. We discuss the burning desire and positive expectation that successful investors have in common, and Rod explains how he deals with setbacks and challenges. Listen in for Rod’s take on the top habits of highly successful people and learn to leverage gratitude to succeed in multifamily real estate!

Key Takeaways

Rod’s insight on what’s behind limiting beliefs

  • Stories we tell ourselves (circuit breakers)
  • Justify lack of action

Rod’s response to ‘I don’t have time right now’

  • Not important enough to you
  • Priorities vs. time management

Rod’s response to ‘the market is too hot’

  • Must really want it, be willing to hustle
  • 500 doors under contract in 3 states

Rod’s response to ‘I don’t have any experience’

  • Now = BEST time to learn multifamily
  • Market correction will bring opportunity

Why it’s crucial to celebrate progress

  • Recognize growth as person
  • More important than goals

What successful people have in common

  • Burning desire
  • Positive expectation

How to deal with the inevitable setbacks

  • Exercise to mitigate stress
  • Focus on what you want
  • Surround self with right people

The habits of highly successful people

  • Take first step
  • Commit to outcome
  • Play to strengths
  • Passion & influence
  • Peer group
  • Tenacity/grit

Rod’s advice for aspiring multifamily investors

  • Gratitude = most important emotion
  • Remember why love life every day

Connect with Rod Khleif

Rod’s Website

The Lifetime Cash Flow Through Real Estate Podcast

Rod on Facebook

Rod’s Multifamily Bootcamp

Text PARTNERSHIP to 41411 for Rod’s Partnership Questions

Text THINKING to 41411 for Rod’s Gratitude Prompts

Text ROD to 41411 for Rod’s Due Diligence Checklist

Resources

Deal Maker Live

Rod Khleif on ABI EP038

Rod Khleif on ABI EP088

Books by Napoleon Hill

The Secret

Hal Elrod on ABI EP165

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

The 5 Love Languages: The Secret to Love That Lasts by Gary Chapman

The Slight Edge: Turning Simple Disciplines into Massive Success and Happiness by Jeff Olson and John David Mann

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

Tony Robbins

Michael’s Mentoring Program

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_201_v2.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

What do the most successful among us have in common? The biggest of the big-name real estate investors and influencers I’ve had the pleasure to interview on this podcast share one thing—a mission beyond money. Yes, financial freedom is important. But without purpose, what’s the point?

On this episode, I’m celebrating our 200th show with a highlight reel of the best Apartment Building Investing podcasts from the past year. We look back at my interview with Rich Dad Advisor Ken McElroy as he shares how his thinking has evolved around financial freedom and what it means to be successful, and return to my conversation with Robert Helms of The Real Estate Guys around his mission to both educate and inspire action.

We revisit legendary entrepreneur and investor Robert Kiyosaki’s insight on spiritual discipline and bestselling author Hal Elrod’s take on the REAL purpose of setting goals. Listen in for marketing icon Kyle Wilson’s advice on building a platform and get inspired by billion-dollar investor and influencer Grant Cardon’s definition of true wealth.

Key Takeaways

What financial freedom means to Ken McElroy

  • Initial goal to be own boss, cover expenses
  • Scale business as expenses increase

How Ken McElroy’s definition of success changed over the years

  • From ‘job’ to ‘good job I really enjoy’
  • Shifted to focus on money, being millionaire
  • Now involves relationships with family + kids

What gets Ken McElroy out of bed in the morning

  • Sense of purpose
  • Desire to contribute

The Real Estate Guys’ mission

  • Put education to work via effective action
  • Create community + collapse time frames

The secret to Robert Helms’ success

  • Recognize economic reality beyond real estate
  • Understand other investing opportunities

How Robert Kiyosaki learned spiritual discipline

  • Marines focus on mission to bring fellow man home
  • Business world only mission to make money
  • Boundary of life + death gets in touch with God

Robert Kiyosaki’s take on the three kinds of money

  1. Gold + silver = God’s money
  2. Government money = fake
  3. People’s money (e.g.: Bitcoin)

Hal Elrod’s insight on the REAL purpose of setting goals

  • Develop qualities + characteristics of goal-achiever
  • Growth on journey more important than hitting target

Hal Elrod’s take on why traditional affirmations don’t work

  • Taught to lie to ourselves, use passive language
  • Affirmation must be paired with action

Kyle Wilsons’ insight on the principles of marketing

  • Provide great product, customer service
  • Be consistent + relational

Kyle Wilson’s must-haves for a website

  1. Mystique
  2. Taglines
  3. Social proof
  4. Creative opt-in

What gets Grant Cardone out of bed in the morning

  • Build legacy for family, church + community
  • Produce something of value = live forever

Grant Cardone’s definition of wealth

  • Money, time, love, health, fun and PURPOSE
  • Keep learning to contribute on another level

Resources

Enter to Win a Free Copy of Michael’s Book

Michael’s Ultimate Guide to Apartment Building Investing

Ken McElroy on ABI EP133

Robert Helms on ABI EP156

Robert Kiyosaki on ABI EP160

Hal Elrod on ABI EP165

Kyle Wilson on ABI EP184

Grant Cardone on ABI EP188

Warriors Heart

Jim Rohn

Zig Ziglar

Chris Widener

Ron White

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_200.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

With more buyers than product on the market, finding good real estate deals can be difficult—especially for newbies. But it’s not impossible. So, what can aspiring multifamily investors do to get a deal under contract?

Drew Whitson, Josh Sterling, Andrew Kuhn and Phil Capron are mentors for The Michael Blank Investor Incubator, Josh Thomas handles our mentoring program strategy calls, and Drew Kniffin and Garrett Lynch serve as President and Director of Acquisitions, respectively, at Nighthawk Equity, the investing arm of The Michael Blank organization. All seven are full-time multifamily investors themselves with a background in working with new real estate investors.

On this episode of Apartment Building Investing, I’m sharing the panel discussion we had last year at Deal Maker Live around what’s working now to get deals under contract. We discuss the greatest fears facing new multifamily investors and explain how we coach our mentoring students to get brokers to take them seriously. Listen in for insight on building your investor list to raise money for deals and learn how to leverage joint venturing to get into multifamily real estate.

Key Takeaways

The biggest fears facing new multifamily investors

  • Self-confidence (work on inner game first)
  • Won’t be able to raise money
  • Won’t be taken seriously

How to get brokers to take you seriously

  • Analyze deals on broker sites
  • Be specific re: your criteria
  • Send feedback within 48 hours
  • Travel to meet face-to-face

The hierarchy of quality in multifamily deals

  1. Direct off-market from seller (rare)
  2. Broker first look
  3. Broker’s website
  4. LoopNet

Our mentoring team’s advice on raising money

  • Build investor list around existing contacts
  • Have conversations BEFORE need capital
  • Give talk on multifamily at Meetups
  • Leverage partnering or joint venturing

Connect with Michael’s Mentoring Team

The Michael Blank Investor Incubator

Deal Maker Live

Resources

Syndicated Deal Analyzer

Nighthawk Equity

The Michael Blank Deal Desk

Anthony Metzger on ABI EP196

LoopNet

David Kamara on ABI EP182

Meetup

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_199.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Is fear stopping you from doing your first multifamily real estate deal? If you’re not the type of person to simply jump ship from the relative safety (and health insurance) that comes with a W-2 job, but you know you can’t spend the rest of your life on the hamster wheel, then NOW is the time to activate what Craig Schumacher, MAI, calls ‘calculated courage.’

Craig Schumacher, MAI is the Managing Member at IRV Capital LLC, a real estate investment firm that focuses on multifamily and student apartments. Craig spent 25 years working as a commercial appraiser and valuation specialist. Four years ago, he decided to stop helping other people make a fortune in real estate and build a portfolio of his own. Craig closed on his first syndication deal in January, bringing him to a total of 89-units (with another 28 under contract).

On this episode of Apartment Building Investing, Craig joins me to explain how he recently quit his job as an appraiser to pursue multifamily investing full time. He describes the AHA moment that inspired him to take action in 2016 and walks us through the key lessons learned from his difficult first deal. Listen in to understand what Craig would tell his younger self about getting started in real estate investing and learn what he is doing now to scale his multifamily portfolio!

Key Takeaways

Craig’s transition from appraising real estate to investing

  • Biggest hurdle = solving health insurance issue
  • Took time to enact plan but never been happier

What inspired Craig to make a change

  • Shocking self-assessment at age 45
  • Not in position to put kids through college + retire

How Craig got started with real estate investing

  • Bought 5 condos + 2 duplexes (university housing)
  • Gain experience as landlord, bank relationships

Craig’s rocky transition to multifamily

  • Sold university rental portfolio to buy 28-unit
  • $20K out of pocket for foundation issues
  • Challenges around self-managing property

Craig’s key lessons learned from his first deal

  • Deeper level of due diligence re: leak disclaimer
  • Include nearby complexes in evaluation

Craig’s highly successful second multifamily deal

  • 29 units next to Illinois State University
  • Convert to student housing ($17K to $25K/month)
  • Cash-out refi to return 100% of investor cash

Why sellers and brokers took Craig seriously

  • Some credibility from SFH portfolio
  • Decades of experience as appraiser

What Craig would do differently in retrospect

  • Push past fear to take big shot sooner
  • Cultivate ‘calculated courage’

How Craig made time for multifamily

  • Dedicate every free moment to investing
  • 14-hour days for 4 years, supportive spouse

How Craig overcame his fears around raising capital

  • Start with friends, family and friends of friends
  • Gets easier every time as share enthusiasm

Craig’s plan for scaling his multifamily portfolio

  • Expand network via podcasts, conferences
  • Build platform by sharing content online

Craig’s advice for aspiring multifamily investors

  • Partner with experienced investor
  • Add action to make ideas real

Connect with Craig Schumacher, MAI

IRV Capital

Craig on LinkedIn

Resources

Rich Dad Poor Dad by Robert T. Kiyosaki

CoStar

Real Estate Guys Create Your Future Goal Setting Retreat

What’s the Best Investment: The Stock Market or Real Estate?

Join the Nighthawk Equity Investor Club

Michael’s Mentoring Program

Partner with Michael

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_198.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Think you need to be a Lone Wolf on your first multifamily deal? Brian Briscoe was looking at 6- and 8-unit multifamily deals until he realized he could go bigger, faster if he had help. And he was right. Brian joined the Michael Blank network, and 11 months later, he had joint ventured on a 55-unit deal and had another 33 under contract! His team is looking to add another 500 units to their portfolio in 2020.

Today, Brian is the Director of Operations at Four Oaks Capital, a multifamily investment firm specializing in the acquisition, repositioning and rebranding of apartment buildings via a private equity fund structure. Since joining forces in June of 2019, his team of four has acquired 88 units and has another 80 under contract. Brian also serves as the Western Hemisphere Affairs Officer for the United States Marine Corps.

On this episode of Apartment Building Investing, Brian joins me to explain how he found his current partners through our network and discuss how they did three deals in 15 short months! He shares how Four Oaks Capital found its first deal and what they did to overcome a major hurdle (with help from an experienced mentor) just nine days before closing. Listen in for insight into how Brian and his partners have defined their individual roles in the company and learn how YOU can leverage joint venturing to accelerate your multifamily success.

Key Takeaways

What inspired Brian’s interest in multifamily

  • Read Keller’s book when deployed in Middle East
  • Started consuming multifamily podcasts + books
  • Became part of Michael Blank network

The timeline around Brian’s first three deals

  • 11 months to close on 55-unit
  • Closed on 33-unit last week
  • 80-unit under contract now

How Brian built credibility with brokers

  • Trip to South Carolina to meet face-to-face
  • Persistent follow-up (action + communication)

Four Oaks Capital’s first 55-unit deal in Spartanburg, SC

  • Two properties in good condition but dated
  • Downtown units well below market rent

The snag Brian’s team faced in closing their first deal

  • Rates on loans went from 3.9% to 5.1% (lost $600K in proceeds)
  • Bump equity from 75% to 90% to compensate investors

The role mentors played in Brian’s first deal

  • Guidance prior to putting in offer
  • Offered idea to move needle on investor returns

Four Oak’s Capital’s second deal

  • Result of follow-up with broker met on trip to SC
  • 33-unit diamond in the rough at unbeatable price
  • Plan to double value via $400K in renovations

Brian’s insight around The Law of the First Deal

  • Brokers call with off-market deals
  • Three deals in 15 months

How Brian’s partners defined their individual roles

  • Acquisitions, asset management and raise money
  • Fluid based on current needs

Four Oaks Capital’s plans to scale

  • Constrained by how much money can raise
  • Build platform (YouTube, social and podcast)
  • Attend and start own Meetups

What facilitated Brian’s mindset shift

  • Conversations with investors in network
  • Finite amount of time to replace income

Brian’s advice for aspiring multifamily investors

  • Learn game + get really good at it
  • Take action and don’t stop
  • Find people to support you

Connect with Brian Briscoe

Four Oaks Capital

Email brianbriscoe@fouroakscapital.com

Resources

Deal Maker Mastermind

Rich Dad Poor Dad by Robert T. Kiyosaki

The Millionaire Real Estate Investor by Gary Keller, Dave Jenks and Jay Papasan

Joe Fairless Podcast

Rod Khleif Podcast

Deal Maker Live

Michael’s Mentoring Program

Michael’s Platform Building Webinar

Join the Nighthawk Equity Investor Club

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_197.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

So, you don’t have real estate investing experience. And you don’t have any money of your own to invest. What if I told you that in two short years, you could be closing on your first deal of 200-plus units? That you could be fielding calls from brokers at Marcus & Millichap? That you could be building your own multifamily brand?

Anthony Metzger spent 10 years in the wine industry, working as a sommelier and winemaker in the US and Europe before setting his sights on multifamily real estate. After his brother introduced him to The Ultimate Guide to Apartment Building Investing at the end of 2017, Anthony got busy underwriting deals and reaching out to brokers. Two short years later (in a joint venture with Nighthawk Equity), Anthony has closed on his first deal, a 218-unit multifamily property in Little Rock, Arkansas.

On this episode of Apartment Building Investing, Anthony joins me to share what inspired his interest in multifamily and walk us through the experience of doing his first deal. He explains how learning the language of real estate gave him credibility with brokers and how consistent practice analyzing deals and talking to brokers built his confidence. Listen in to understand how the Nighthawk Equity team supported Anthony in the buyer’s interview and learn how to align yourself with a lead sponsor to do YOUR first multifamily deal.

Key Takeaways

What inspired Anthony’s interest in multifamily

  • Listening to Grant Cardone and Robert Kiyosaki
  • Always been entrepreneur, hungry for project

Anthony’s initial real estate goal

  • Partner with Nighthawk Equity to do first deal
  • Didn’t want to raise money until experienced

How things changed for Anthony once his first deal closed

  • Taking calls from Marcus & Millichap
  • Brokers approach with off-market deals

How Anthony got brokers to take him seriously

  • Learned language of investing from Ultimate Guide
  • Genuine in building relationships with brokers

Anthony’s advice on demonstrating confidence with brokers

  • Prepare with script based on underwriting
  • Practice on ‘throw away market’

Anthony’s interaction with the broker on his first deal

  • Several calls to discuss deal + ask questions
  • Spitball ballpark number, asked to draft LOI

The ideal time to bring on a joint venture partner

  • After verbal agreement but before signed LOI
  • Support in buyer’s interview, include JV terms

What to expect from a buyer’s interview

  • Seller talks to everyone who made offers
  • Choose person most likely to close deal

Anthony’s approach to aligning with a lead sponsor

  • Build relationship at events, bring deals
  • Respect time by adding value (inside track)

What’s next for Anthony

  • Do second deal
  • Build own multifamily brand

Anthony’s advice for aspiring multifamily investors

  • Learn to underwrite + practice making offers
  • Network to build relationship with sponsor

Connect with Anthony Metzger

Email anthony.metzger@yahoo.com

Resources

Michael’s Free First Deal Training

Anthony’s Wine Documentary: The Pink Grape

Grant Cardone

Robert Kiyosaki

Michael’s Ultimate Guide to Apartment Building Investing

Michael’s Syndicated Deal Analyzer

Michael’s Deal Desk

Nighthawk Equity

Michael’s Deal Maker Mastermind

Deal Maker Live

Michael’s Mentoring Program

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_196.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Most of us dream of retirement because we’ll FINALLY have the time freedom to do things that interest us and spend time with the people we love. But what if you didn’t have to wait until you turned 65 to live that dream? What if you could retire early? Better yet, what if you could retire in the next few years? Passive investing in multifamily syndications helped Travis Watts do just that, and you could be next!

Travis is an experienced passive investor and Director of Investor Relations at Ashcroft Capital, a national multifamily investment firm with more than $820M in assets under management. Prior to pursuing real estate full-time, Travis worked a grueling job in the oil industry, spending 14-hour days outside in extreme weather while saving money to invest in single-family rentals and apartment building syndications.

On this episode of Apartment Building Investing, Travis joins me to discuss the time freedom he enjoys now as a passive investor in multifamily real estate. He explains how he saved the money to invest via extreme budgeting and what made SFH investing unsustainable. Listen in for Travis’ insight around where to find a good syndication team and learn how YOU can follow in his footsteps and quit your W-2 with passive investing!

Key Takeaways

Travis’ path to full-time passive investing

  • Demanding job in oil industry
  • Laid off in oil downturn but already financially independent

How Travis’ life is different now

  • Unhappy as W-2 employee, everyday struggle
  • Now pursues things interested in (personal growth)

How Travis saved money to invest

  • Brought up with conservative parents, extreme budgeters
  • Didn’t change lifestyle as income grew from $20K to six figures

How Travis invested his money before multifamily

  • Pulled money from stock market after Rich Dad’s Prophecy
  • House hacking strategy (first-time home buyer tax credit)
  • Sought high-paying job to continue buying SFH
  • Buy-and-hold, fix-and-flip as well as vacation rentals

What inspired Travis’ transition to multifamily

  • SFH strategies had become job on top of W-2
  • Single-family not scalable, sustainable or passive

The FIRE movement 4% rule

  • Passive income goal x 25 = amount to invest
  • EX: 30K x 25 = $750K investment

What kind of income you can generate as a passive investor

  • 7% to 10% cashflow
  • Equity upside upon sale or refinance

Travis’ insight on the tax benefits of multifamily

  • Use bonus depreciation for tax-free distributions
  • Capital gains upon sale (usually offset by gains)

The beauty of the infinite return model

  • Refinance after 5 years to return most of capital
  • Continue to earn returns, no money in deal

Travis’ top investing AHA moments

Travis’ advice for aspiring passive investors

  1. Start with WHY
  2. Create a budget (know where money going)

How to vet a syndication team

  • Ensure strategy aligns with personal philosophy
  • Track record, markets you believe in

Where to find a good syndication team

  • Go to seminars and local meetups for networking
  • Start with world-of-mouth referral, follow up with due diligence

Connect with Travis Watts

Ashcroft Capital

Email travis@ashcroftcapital.com

Travis on LinkedIn

Travis on Facebook

Resources

Spencer Hilligoss on ABI EP186

Jan Larson on ABI EP181

Ryan McKenna on ABI EP174

Rich Dad’s Prophecy: Why the Biggest Stock Market Crash in History Is Still Coming … And How You Can Prepare Yourself and Profit from It! by Robert T. Kiyosaki

The FIRE Movement

Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes by Tom Wheelwright

Work with Tom Wheelwright

Join the Nighthawk Equity Investor Club

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_195.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

It’s that time of year again. Time to set goals for the year ahead and start working toward your dream of financial freedom. But what’s the best way to set goals and commit to following through? How do you avoid overwhelm and keep going no matter what?

On this episode of Apartment Building Investing, I am sharing my top 6 tips for setting goals you CAN and WILL achieve in 2020. I explain why it’s crucial to find your WHY and state your goals clearly—over multiple time frames.

I go on to reveal my secret to avoiding overwhelm, describing the value of consistency in working toward financial freedom. Listen in for advice around leveraging practice to develop confidence and learn to commit to doing your first multifamily deal, no matter how long it takes!

Key Takeaways

Tip #1—Develop your WHY

  • Affords clarity, moment of decision
  • Less about you = more powerful

Tip #2—State your goals clearly over multiple time frames

  • Create yearly, 90-day, monthly, weekly and daily goals
  • Short-term goals align with big targets (e.g.: analyze 20 deals)

Tip #3—Always do the next 3 things

  • Best way to avoid overwhelm, keep moving forward
  • Consistent with progress (i.e.: finish book, choose property manager)

Tip #4—Focus on the activity, NOT the outcome

  • Analyze every deal and talk to everyone early on
  • Knowledge + practice = CONFIDENCE

Tip #5—Be consistent

  • Support network to keep on track (peers + expert)
  • Recognize and celebrate milestones

Tip #6—Commit to the outcome, not a timeline

  • Set deadlines for short-term goals under your control
  • Keep going no matter how long it takes, no other option

Resources

Tony Robbins

Grant Cardone on the Lewis Howes Podcast

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

Deal Maker Live

Syndicated Deal Analyzer

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

The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results by Gary Keller

Michael’s Mentorship Program

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: ABI20194.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Should you self-manage your multifamily portfolio? Or is it better to outsource to a third-party? If you do choose to outsource, what should you look for in a property management team?

Tony LeBlanc is the author of The Doorpreneur: Property Management Beyond the Rent Roll, a book that redefines the potential of property management businesses. Tony grew up inside the industry, watching his mother manage the building where he was raised. Ten years ago, he started his own property management company, and today, it is one of the largest on Canada’s East Coast and supports seven subsidiary businesses from landscaping to commercial cleaning to a real estate brokerage.

On this episode of Apartment Building Investing, Tony joins me to explain how he developed The Doorpreneur Way and what it meant for his property management company in terms of productivity and profit. He offers insight around how to hire a third-party property manager, what the ideal investor-property manager relationship looks like, and why it can be difficult to manage to a pro forma. Listen in for Tony’s innovative ideas for driving additional revenue and learn when it makes sense to self-manage your portfolio and when to outsource the job.

Key Takeaways

Tony’s extensive experience in property management

  • Mom was resident manager, VP of management company
  • Started own company 10 years ago (3 locations, 2K doors)

What inspired Tony to write The Doorpreneur Way

  • Building out other companies created new level of respect
  • Help others make business more productive + profitable

Tony’s advice on hiring a third-party property manager

  • Investors need hands-on experience to develop empathy
  • Learn enough to ‘manage the managers’

The ideal relationship between property managers and investors

  • Get to know each other up front
  • Engage minimum of once a month to review financials

Tony’s approach to working with sophisticated investors

  • Weekly call to discuss vacancies, major maintenance issues
  • Monthly financial call to review budget vs. actuals

What makes it difficult for property managers to stay on budget

  • Lack systems + processes for managing to pro forma
  • Pressure to please tenants, don’t look at expenses
  • Failure to include staff in financial discussions

Tony’s Doorpreneur Model

  1. Determine where subbing out most work
  2. Market research in new area
  3. Cut teeth on own properties
  4. Open door to general public

Tony’s best practices for property managers

  • Proactive communication with investors
  • Proper accounting + due diligence
  • Educate owners on new trends, tech

Innovative ways to increase revenue and reduce expenses

  • Transition from coin machine to card-based laundry
  • Offer internet service for units
  • Smart apartment technology

Tony’s insight around personal development practices

  • Develop self-awareness with meditation, journaling
  • Self-reflection allows us to better serve others

Connect with Tony LeBlanc

Doorpreneur

Doorpreneur on Facebook

Doorpreneur on Instagram

Resources

The Doorpreneur: Property Management Beyond the Rent Roll by Tony LeBlanc

Save Water Co

The Leader Who Had No Title by Robin Sharma

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

Sponsor

The Investor Incubator Mentorship Program

Direct download: ABI_193.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Are limiting beliefs stopping you from becoming a multifamily investor? When Sterling White got his start in real estate, he was crashing in a friend’s den. He had no money in the bank and zero credit. But Sterling DID have a willingness to learn, and he understood that the best way to approach a potential mentor was to provide value.

Today, Sterling is a seasoned real estate investor and philanthropist based in Indianapolis. He got his start in 2009, building a portfolio of 150 SFH before transitioning to multifamily in 2017. To date, Sterling owns a total of 587 single- and multifamily units, and he is a frequent contributor to BiggerPockets. He also serves as the host of The Real Estate Experience podcast and author of From Zero to 400 Units: How I Found Another Path & Discovered Freedom Through Real Estate.

On this episode of Apartment Building Investing, Sterling joins me to explain how he got his start in real estate, working for a mentor (for free!) to find SFH buy-and-hold deals. He discusses his transition to multifamily, sharing his bold approach to finding off-market deals and the resources he uses to get in touch with property owners. Listen in for Sterling’s insight on providing value to attract investors and learn how to overcome the limiting beliefs that are keeping you from achieving financial freedom with multifamily investing!

Key Takeaways

Sterling’s journey to real estate investing

  • Grew up in Section 8 housing with single mom
  • Natural entrepreneur, figure things out on own
  • Work for free with mentor to build SFH portfolio
  • Shift to multifamily in 2017 (587 units total)

How Sterling developed an interest in real estate

  • Work construction for college roommate’s dad
  • Liked seeing transformation of distressed asset
  • Learned that most successful owned portfolio

How Sterling provided value to his mentor early on

  • Hustle to find SFH deals
  • Assist with digital marketing

Sterling’s first SFH investing deal

  • $25K property + $25K in renovations (financed by mentor)
  • Responsible for everything else associated with transaction

What inspired Sterling’s transition to multifamily

  • Economies of scale (multiple doors at one location)
  • Ability to control own destiny, influence value

Sterling’s first multifamily investing deal

  • 46-unit seller financing deal ($200K down on $900K)
  • Brought on SFH investors to raise $ for renovations

How Sterling hustles to find new deals

  • Approach owner directly, pitch on cold call
  • Strategic follow up (e.g.: birthday card)

Sterling’s resources for finding owner contact info

Sterling’s advice on marketing to attract investors

The evolution of how Sterling raises money for deals

  • Friends and family through fund for SFH
  • Preferred return to start with multifamily
  • Now straight equity (85% to LPs, 15% to GPs)

The limiting beliefs that hold aspiring investors back

  • Need large amount of own capital
  • Fear of failure OR success

Sterling’s insight on the value of time

  • Pay someone to do low-value activities
  • Willing to spend extra to save time

Connect with Sterling White

Sterling on BiggerPockets

Resources

Earl Nightingale

Rich Dad Poor Dad by Robert T. Kiyosaki

LoopNet

CoStar

Reonomy

ListSource

BeenVerified

TruePeopleSearch

LexisNexis

Fiverr

Upwork

BiggerPockets

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

Grant Cardone on Lewis Howes’ Podcast

Michael’s Free Webinar: How to Do Your First Apartment Deal (Without Experience or Using Your Own Money)

Michael’s Mentorship Program

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_192.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

If you want to raise money, I mean REALLY raise money, you need a thought leadership platform. Yes, at the beginning of your career, you will onboard passive investors one at a time. But once you’ve exhausted your network and you’re ready to scale, you’ll need to leverage online marketing techniques to expand your investor base and raise millions for multifamily deals—on a very short timeline.

Josh Cantwell is the CEO of Strategic Real Estate Coach, a program dedicated to giving real estate investors and agents the most advanced training in the business. Josh is the top real estate investor in his community, buying and selling more than 600 properties since 2003, and he regularly partners with other investors to close deals all over the US. He is also the author of The Flip System: Your Real Estate Investing Playbook to Create Financial Freedom and Peace of Mind and the CEO of Freeland Ventures Private Equity and Direct Real Estate Lending, helping investors get funding both residential and multifamily deals.

On this episode of Apartment Building Investing, Josh joins me to explain how his experience with pancreatic cancer changed his personal and professional life, sharing the strategies he uses to be more purposeful with his time and put his family first. He discusses why he chose capital raising for multifamily over syndicating deals and describes his process for raising millions of dollars—in just a few hours. Listen in for Josh’s advice to aspiring capital raisers and learn his four steps to building an online platform that attracts multifamily investors.

Key Takeaways

How Josh’s bout with pancreatic cancer changed his life

  • Focus on being family man first
  • Invest in things that pay in perpetuity

The strategies Josh uses to be purposeful about his time

  • Mornings for strategic thinking
  • Activities that give energy in afternoon (e.g.: investor calls)

Josh’s multiple business ventures

  • Private + hard money lender for residential real estate
  • Raise capital for multifamily via crowdfunding platform
  • Joint venture to raise capital for multifamily

The limiting beliefs that kept Josh away from multifamily

  • Not educated, smart enough
  • Surgery forced out of comfort zone

Why Josh chose raising capital over syndicating deals

  • Background in raising money (funding = freedom)
  • Joint venture with experienced investors

How Josh raises millions of dollars for multifamily in hours

  • Share potential deals in discovery interviews
  • Create scarcity in webinar (e.g.: 400 invites, 12 spots)

Josh’s tips for creating an online platform to raise capital

  1. Start with an irresistible offer
  2. Identify your investor avatar
  3. Be strategic about networking
  4. Reach out with regular content

Josh’s advice for aspiring capital raisers

  • Put yourself in second position
  • Raising money not a ‘forever business’
  • Stay in front of potential investors
  • Educate without asking for money
  • People will test with small investments

Connect with Josh Cantwell

Strategic Real Estate Coach

The Flip System by Josh Cantwell

Josh on Facebook

Resources

Michael’s Free Masterclass

Dr. Oz’s ‘The Power of a Nap’

Jack Petrick on ABI EP123

National Real Estate Investors Association

Michael’s Platform Page

Michael’s Free eBook

Nighthawk Equity

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_191.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

When Phil Capron went through special ops training for the US military, he noticed that the recruits who made it to the end weren’t necessarily the strongest or the fastest or the smartest. So, what differentiated the 20 who succeeded from the thousands vying for the job? They simply refused to quit. And Phil believes that the same principle applies to making it in multifamily investing.

Phil is a former Special Warfare Combatant Craft Crewman in the US Navy and current full-time multifamily real estate investor. To date, he owns a 245-unit portfolio worth $15M in Coastal Virginia and shares his understanding of the space as a Senior Mentor with the Michael Blank Organization. Phil specializes in revitalizing distressed and underperforming assets to ensure profitability for his team and change neighborhoods for the better. He is also the author of the new release Your VA Loan: And How it Can Make You a Millionaire.

On this episode of Apartment Building Investing, Phil joins me to explain how taking advantage of a VA loan sparked his initial interest in real estate. He walks us through his transition from working in a brokerage and flipping houses to full-time multifamily investing, sharing his advice around when to quit a W-2 job for real estate. Listen in for Phil’s insight into what differentiates his successful mentoring students from those who don’t progress and learn how the grit he developed in military special ops training informs his investing career.

Key Takeaways

How Phil got started in real estate

  • Enlisted in US Navy at age 24
  • Bought 4BR SFH with VA loan
  • Friends rented rooms (live for free)
  • Real estate license, flip houses

What inspired Phil’s transition to multifamily

  • Trying to sell 13-unit for commission
  • Buyer turned down owner financing
  • Phil bought himself, rent checks roll in
  • Proved economy of scale concept

When Phil started investing full-time

  • 18 months into multifamily
  • Established 200-unit portfolio

Phil’s advice on when to quit your job

  • Make decision and write down plan
  • Save up 9 months of living expenses

Phil’s take on why people don’t take action

  • Perceive quality of life as good enough
  • Fear of success leads to self-sabotage

How Phil spends his days as a full-time investor

  • Look for deals + manage portfolio
  • Work with students on their deals
  • Surf, skydive and travel

Phil’s insight on why your story matters

  • Experience with bank (decision based on team)
  • Get gritty about not giving up

Connect with Phil Capron

Phil’s Website

Phil’s Podcast

Phil on Facebook

Resources

Your VA Loan: And How It Can Make You a Millionaire by Phil Capron

VA Home Loans

BiggerPockets

FHA Loans

Tyler Sheff

Drew Whitson

Financial Freedom Summit

Michael’s Mentorship Program

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_190.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Real estate investing conferences are one of the few places where there is no line to the women’s restroom. And while that may be a relief to the female entrepreneurs in attendance, it can also be very discouraging. Why are there so few women playing in the multifamily space? And what can we do to encourage more women to become entrepreneurs and investors?

Olenka Cullinan is the Business Coach behind #iStartFirst, a platform dedicated to inspiring women to achieve their full potential. Through her online bootcamps, #iStartFirst Bossbabes Summit and national speaking engagements, Olenka empowers women to up-level their mindset, overcome their fears and build successful careers.

On this episode, Olenka joins me to explain why there are so few female entrepreneurs and what she is doing about it through #iStartFirst. She speaks to the limiting beliefs many women share and describes how the female mind works differently when it comes to making deals. Listen in for Olenka’s insight around the power of mentorship to help you start or scale your business and learn why you don’t necessarily have to be in the limelight to be a leader!

Key Takeaways

Olenka’s entrepreneurial journey

  • Move to US from Russia at 21 with $450
  • Struck by lack of women in venture mentorship program

Olenka’s advice to her younger self

  • Get mentors early
  • Bring in people to share vision

The story behind #iStartFirst

  • Inspired to fix lack of women entrepreneurs
  • Listen to people serve for next iteration

Why there are so few female entrepreneurs

  • Women shy to make moves, hold back ideas
  • Socialized to supportive role as wife + mother

Olenka’s insight around building your brand

  • It’s about messenger, not message
  • Selfish NOT to share

The limiting beliefs many women share

  • Imposter syndrome
  • Feel like not enough

How women differ from men in making deals

  • Long-term commitment once decision made
  • ‘Everybody wins’ community mentality

The idea behind #iStartFirst

  • Can’t view men as financial plan
  • Must start saving ourselves

Olenka’s take on women in supporting roles

  • Don’t have to be in limelight to be leader
  • Affirmations lead to breakthrough

Olenka’s idea client

  • Women who want to start/scale business
  • Up-level mindset to grow in career

What women learn at Olenka’s bootcamp

  • ‘I can do anything’
  • Balance personal + professional life

Olenka’s concept of an Alpha Woman

  • Try to be like men
  • Get into drive zone, lose feminine side

Olenka’s advice to aspiring female entrepreneurs

  • Already have everything needed inside you
  • 90 seconds of fear will elevate to next level

Connect with Olenka Cullinan

Olenka’s Website

iStartFirst

Resources

Stop Preparing Start Doing eBook

Rising Tycoons

Olenka’s TEDx Talk

Tony Robbins

John Maxwell

Robert Kiyosaki

Passionistas: Tips, Tales and Tweetables from Women Pursuing Their Dreams by Olenka Cullinan et al.

Purpose, Passion & Profit by Olenka Cullinan et al.

Michael’s Mentorship Program

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_189.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Do you have your money right? Or are you handing it over to Wall Street and hoping for the best? What if I told you that the secret to true wealth is to STOP saving your money and START using it to invest in real assets—like multifamily real estate!

Grant Cardone is the CEO of Cardone Capital, a multifamily real estate investment firm with more than $1.36B in assets under management. He is also an international speaker and bestselling author, well-known for creating the 10X Movement and 10X Growth Conference. Grant was named the #1 marketer to watch by Forbes, and he is a widely respected entrepreneur who owns and operates seven privately held companies.

On this episode, Grant joins me to share what he’s investing in now, discussing what kind of returns he expects on multifamily deals. He walks us through a day in the life of Grant Cardone, sharing his secret to work-life balance, his definition of true wealth, and his thoughts on the importance of spirituality. Listen in to understand what is driving Grant to build a legacy and learn how his Reg A fund serves non-accredited investors.

Key Takeaways

What Grant’s investing in right now

  • $473M portfolio in 5 properties, 2K+ units
  • Well-located and institutional quality
  • Deals with competition (list of buyers)

Why Grant avoids value-add multifamily deals

  • Lack of salary growth in America
  • ‘Value-add story will hit limits’

The returns Grant expects from multifamily investments

  • 5 to 6% cashflow, 15% IRR
  • $40M down becomes $135M in 30 years

Why Grant started a Reg A fund with $5K minimums

  • Moral issue to support ‘little guy’
  • Not true that < sophisticated, more trouble

A day in the life of Grant Cardone

  • Time for gym, self-improvement
  • Shut down work at 6pm for dinner

Grant’s secret to work-life balance

  • Don’t invest in anything with potential to lose
  • No worry more important than high returns

How Grant’s approach to money has changed

  • Used to scrounge, act like miser
  • Now use money to make life easy

What drives Grant to keep growing

  • Legacy for family, change community
  • Produce something of value = live forever

Grant’s insight on taking it to the next level

  • From $90M deal to $900M
  • Good friends will challenge

Grant’s definition of wealth

  • Money, time, love, health and purpose
  • Continuous learning = expansive

The role of spirituality in Grant’s life

  • Spirit comes before and after body
  • Best ideas come from beyond mind

Grant’s advice for ABI listeners

  • Get your money right (use, don’t save)
  • Invest in real estate with someone you trust

Connect with Grant Cardone

Grant’s Website

Cardone Capital

Resources

Cardone University

10X Growth Conference

Grant on Lewis Howes’ Podcast in 2017

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

The Millionaire Booklet: How to Get Super Rich by Grant Cardone

Robert Kiyosaki on Apartment Building Investing EP160

The Real Estate Guys

What’s the Best Investment: The Stock Market or Real Estate?

Nighthawk Equity

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

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

Direct download: ABI_188.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Raising capital for multifamily real estate deals strikes fear in the heart of many an aspiring syndicator. But what if you didn’t have to chase leads? What if you could ATTRACT high-net-worth individuals and bring in investments of $100K (or more!) with a single phone call? It IS possible, provided you commit to consistent content creation and position yourself as a thought leader in the space.

Hunter Thompson is the Managing Principal at Asym Capital, a real estate investment firm that helps clients build a diverse portfolio around low-risk cashflow production. With nearly 10 years of experience in fund management, Hunter is a prolific writer on the finance of commercial real estate and the host of Cash Flow Connections. His new book, Raising Capital for Real Estate, teaches aspiring operators the art of establishing credibility, attracting investors and funding deals at scale.

On this episode of Apartment Building Investing, Hunter joins me to share his experience raising capital for real estate deals and building a thought leadership platform to attract passive investors. He explains how to get started with content creation, what to do if you’re not a great writer, and why content is crucial if you want to scale. Listen in for Hunter’s insight on picking a niche that fits with who you are—and learn his process for building an infrastructure that attracts and nurtures high-net-worth investors.

Key Takeaways

Hunter’s journey to multifamily investing

  • Stock market volatility motivated to try real estate
  • Raise capital for opportunities across asset classes

What Hunter looks for in a joint venture partner

  • Best-in-class operators with $100M under management
  • Systems in place but haven’t built out investor relations

Hunter’s experience of writing Raising Capital for Real Estate

  • Wrote in < 3 months, editing process takes much longer
  • Outlines process of creating platform to attract investors

Hunter’s advice on how to get started with content creation

  • Brainstorm list of 100 potential articles and rate top 10
  • Identify and mimic industry leaders for topic ideas

What to do if you’re not necessarily a great writer

  • Practice regularly, build up to 1K words per hour
  • Ask friend to interview you and transcribe with Rev

How to develop a commitment to consistent content creation

  • Start small and schedule 1 post every 2 weeks
  • Consider blocking off time to batch content

Hunter’s take on why content is important

  • Scalable way to attract + nurture new leads
  • Build credibility, close with single phone call

How to define the kind of investor you want to attract

  • Biproduct of being yourself
  • Don’t try to appeal to everyone

Hunter’s process of building a thought leadership platform

  • Started with writing articles in 2013
  • Add podcast in 2016, book this year

Hunter’s advice for starting your own real estate platform

  • Pick a niche (okay to pivot later)
  • Use free content to get leads into infrastructure

Connect with Hunter Thompson

Raising Capital for Real Estate

Cash Flow Connections Real Estate Podcast

Intelligent Investors Real Estate Conference

Email info@raisingcapitalforrealestate.com

Resources

Hunter on ABI EP087

Raising Money Summit

Pitch Anything: An Innovative Method for Presenting, Persuading, and Winning the Deal by Oren Klaff

Best Ever Apartment Syndication Book: A Four-Part System for Raising Money and Buying Apartments by Joe Fairless and Theo Hicks

Rev

Corey Peterson

Jeremy Roll on Cash Flow Connections EP001

Investor Mindset Podcast

What’s the Best Investment: The Stock Market or Real Estate?

Nighthawk Equity

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

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

Direct download: ABI_187.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

W-2 jobs give us a sense of security. But what happens if you lose your job or can’t work due to illness or injury? Spencer Hilligoss wanted to play financial defense and build enough passive income to keep the lights on for his family should something unexpected happen. And though real estate gets a bad rap for being a risky investment, Spencer discovered that multifamily is actually very predictable. In fact, it’s the best kind of boring! 

Spencer has 13 years of experience in tech startups, building high-performing teams across five companies—three of which valued at more than $1B. He currently serves as the Senior Director of Professional Development for LendingHome, the largest residential flip lender in the country. Spencer is also the Cofounder and Principal at Madison Investing, a real estate education platform dedicated to helping busy professionals build passive income, and a contributing writer and member of Forbes Real Estate Council.

On this episode, Spencer joins me to explain how the ‘dark decade’ he endured as a young man inspired him to pursue passive income through real estate. He shares his approach to financial planning, describing how he and his wife set goals and analyze deals together. Listen in for Spencer’s insight around the benefits of passive investing in multifamily over SFH strategies and learn exactly what he looks for in a sponsor, a market and a deal.

Key Takeaways

What’s keeping Spencer at his W-2 job

  • Take care of team at work
  • Don’t want to pull ripcord too soon

How Spencer got into real estate

  • Dad was top-performing real estate broker
  • Brother’s death + parent’s divorce led to bankruptcy
  • Pursue real estate to play defense financially

The Silicon Valley wealth playbook

  1. Join early stage tech startup for equity
  2. Work 16-hour days
  3. Pray for liquidity event
  4. Save for retirement (can’t access)

Spencer’s path to multifamily investing

  • Tech startup lends to real estate investors
  • Get educated and compare strategies
  • Built SFH portfolio of 7 (not passive)

How passive investing in multifamily differs from SFH

  • Analyze deal and build relationships up front
  • Double money in 5 years, don’t lift finger to manage

Spencer’s approach to financial planning

  • Based on being great parent, giving back
  • Work toward $8K/month passive income

What Spencer looks for in a sponsor

  • Track record (trustworthiness, grit, etc.)
  • Approach
  • Team
  • Communication

Spencer’s advice for new syndicators

  • Leverage partnerships and coaching
  • Borrow credibility from experienced investors

What Spencer looks for in a market

  • Strong job growth
  • Employers = counterweight to correction

What Spencer looks for in a deal

  • Specific plan to add value
  • Firsthand photos/videos beyond pro forma

What’s next for Spencer

  • More active to accelerate timeline
  • Scale impact through educational platform

Connect with Spencer Hilligoss

Madison Investing

Email spencer@madisoninvesting.co

Spencer on LinkedIn

Resources

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

City-Data

Department of Numbers

What’s the Best Investment: The Stock Market or Real Estate?

Nighthawk Equity

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

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

Direct download: ABI_186.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Technology has succeeded in disrupting several industries. Think about what Uber has done to the taxi business. Or how Airbnb has changed hotels. These innovations work because they create a frictionless experience for consumers. So, how might #proptech disrupt multifamily? And how can apartment investors leverage technology to better the resident experience and compete in the market of the future?

Patrick Antrim is the Founder and CEO of Multifamily Leadership, a thought leadership platform that researches the best in innovation and leadership in the multifamily space. He has 18 years of experience managing the portfolios of some of America’s most influential real estate entrepreneurs and business titans, including Forbes billionaire George Argyros. Patrick is also the host of the Multifamily Leadership Podcast and the creator of the Multifamily Leadership Summit.

On this episode, Patrick joins me to share his take on shifting renter expectations and explain why investors of the future need to understand technology. He describes how we can use tech to improve the tenant experience and why class B and C operators shouldn’t dismiss tech as a luxury amenity. Listen in for Patrick’s insight around current trends in multifamily and learn how his organization is exploring the intersection among technology, leadership and resident journey.

 

Key Takeaways

How Patrick got into the asset management space

  • Retire from playing for New York Yankees
  • Apprentice to former Mariners owner (5K multifamily units)
  • Grew relationships with HNWI to manage $1.2B portfolio

Patrick’s take on shifting renter expectations

  • Look at multifamily as consumer category
  • Unique opportunity for operators to add value

Why investors of the future need to understand technology

  • Lift on revenue (e.g.: $55/month for smart home)
  • Compete with luxury developments
  • Future valuations based on tech in buildings
  • Save up to $100K/year on expenses

How we can use tech to improve the tenant experience

  • AI voice assistant to answer calls
  • Upgrade leasing journey (i.e.: digital applications)
  • Smart appliances, IoT devices in units

Patrick’s insight on tech in class B and C properties

  • Consumers quick to adopt tech (e.g.: Wi-Fi)
  • Impact operational inefficiencies like keys, work orders
  • Eliminate need for leasing agent at small properties

Why property management companies are slow to adopt tech

  • Investors already winning, don’t have to think ahead

Patrick’s thoughts on current trends in multifamily

  • Talent as last competitive advantage
  • Resident experience drives returns
  • Discussion around affordable housing

Patrick’s mission with Multifamily Leadership

  • Collision of tech, leadership and resident journey
  • Design co. to attract talent, residents + investors

Patrick’s advice for aspiring multifamily operators

  • Focus on creating value long term
  • Make sure incentives aligned

Connect with Patrick Antrim

Multifamily Leadership

Multifamily Leadership Podcast

Patrick on LinkedIn

Resources

Michael’s Mentorship Program

George Argyros

John Saunders

LeaseHawk

SmartRent

PointCentral

Vivint Smart Home

Urbandoor

STRATIS IoT

BIM Technology

Shadow Summit

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

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

Direct download: ABI_185.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

So, you’re getting into the business of multifamily real estate. Like it or not, you’re also getting into the business of marketing and promotions. But how do you build a platform online and attract the capital you need to grow?

Kyle Wilson is a marketing icon in the personal development space, promoting the likes of Og Mandino, Les Brown, and Robin Sharma, just to name a few. For 18 years, he served as Jim Rohn’s business partner, taking Jim from 20 speaking events per year at $4K each to 110 events at $25K—and creating Jim Rohn International along the way. Today, Kyle does high-end coaching and consulting and hosts the Kyle Wilson Inner Circle Mastermind. He has helped more than 200 thought leaders become published authors with multiple bestselling books.

On this episode, Kyle joins me to explain how he got into the personal development space and reflect on the top lessons he learned from working with legends like Jim Rohn, Zig Ziglar and Brian Tracy. He shares his best marketing principles for building a brand, discussing how tactics have changed over time but principles haven’t. Kyle walks us through an exercise for finding your secret sauce and describes the 4 things that he looks for on a website. Listen in for Kyle’s insight around building a platform and learn how to promote yourself as a multifamily real estate investor!

Key Takeaways

How Kyle got into the personal development space

  • Moved to Dallas at age 26, attended seminar
  • Offered job making cold calls + selling tickets
  • Started own venture and partnered with Jim Rohn

The top takeaways Kyle learned from Jim Rohn

  1. Key to better future is YOU
  2. Success is predictable
  3. Be a student, not a follower
  4. How can I bring value?

Kyle’s marketing principles for building a brand

  • Connect the dots
  • Tactics change but principles don’t
  • Great product
  • Customer service
  • Consistent
  • Relational
  • Be strategic (one thing knocks down ALL dominoes)
  • Leverage ‘the wheel’

How marketing tactics have changed over time

  • From commodity products to free content
  • Start with social media + build email list

What Kyle wants to see on a website

  1. Mystique
  2. Taglines
  3. Social proof
  4. Creative opt in

Kyle’s favorite lessons from his newsletter

  • It takes time to build something great
  • Pay the price now
  • Never do good deal with bad guy
  • Prime time is big time

Why Kyle came out of retirement

  • Unhappy, open to personal development
  • Connect talented people with right audience

How to find your own secret sauce

  • What am I good at?
  • What do I enjoy?
  • What are my successes?
  • How do others see me?
  • What am I FOR?
  • What am I AGAINST?

The challenge around putting yourself out there

  • Tendency to diminish own story
  • How much influence do you want to have?

Connect with Kyle Wilson

Kyle’s Website

Inner Circle Mastermind

Kyle’s Book Program

Resources

Michael’s Free Webinar: How to Do Your First Apartment Deal (Without Experience or Using Your Own Money)

Uganda Counseling and Support Services

Jim Rohn

Zig Ziglar

Brian Tracy

Mark Victor Hansen

Darren Hardy

Og Mandino

John Maxwell

SUCCESS Store

Chris Widener

Ron White

Earl Nightingale

Tony Robbins

Les Brown

Passionistas: Tips, Tales and Tweetables from Women Pursuing Their Dreams by Erika De La Cruz et al.

The Real Estate Guys

Seth Mosley

Phil Collen

John Assaraf

Resilience: Turning Your Setback into a Comeback by Kyle Wilson, Lisa Haisha, Keith Elias, Ron White, Nick Bradley, Chris Widener, Steve Fitzhugh, Nathan Ogden & Michael Blank

Chicken Soup for the Entrepreneur’s Soul: Advice & Inspiration for Fulfilling Dreams by Jack Canfield, Mark Victor Hansen & Dahlynn McKowen

Newy Scruggs

Hal Elrod

Deal Maker Live

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

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

Direct download: ABI_184.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Most of us would really like to live a life of purpose. Problem is, working a traditional W-2 job can take all the good out of you. We come home exhausted and have little bandwidth left for our families, so the idea of serving others seems totally out of reach. But what kind of impact could you make if your living expenses were covered? What if you had the time freedom to pursue a meaningful life? What if multifamily real estate investing could get you there in three years?

Drew Whitson is a full-time real estate investor with a portfolio of 1,000-plus units in five states. He also happens to run The Michael Blank Investor Incubator, serving as a mentor and coach to help aspiring multifamily investors do their first apartment building deal. Drew spent 16 years working in corporate finance before leaving his W-2 job at a boutique investment banking firm in early 2018 to focus exclusively on his real estate career.

On this episode, Drew joins me to explain how achieving financial freedom has given him the opportunity to pursue a meaningful life.  He describes how getting laid off twice in a single year inspired him to control his own destiny by way of multifamily syndication. Drew walks us through his first few apartment building deals and discusses why buying a 32-unit property was so much easier than a fourplex! Listen in for Drew’s insight around raising money BEFORE you have a deal under contract, getting brokers to take you seriously as a newbie, and joint venturing with partners who share your vision for the future.

Key Takeaways

How financial freedom changed Drew’s life

  • Opportunity to pursue meaningful things
  • Impact world through service to others

The capacity to live a meaningful life AND work full-time

  • Must be extraordinarily intentional
  • Options open up once expenses covered

What inspired Drew to build an identity beyond his W-2

  • Laid off twice in single year
  • Sense of determination to control own destiny

Drew’s real estate experience prior to quitting his job

  • Bought multiple SFH when market down
  • Built portfolio of 400 multifamily units

What drew Drew to multifamily investing

  • Only asset can buy with other people’s money
  • Appreciation, resilience, tax benefits and scale

Drew’s first multifamily real estate deals

  • Bought fourplex with partner through Wells Fargo
  • 32-unit with small commercial lender much easier

Drew’s experience of raising money for the first time

  • Terrified of losing friends/family money
  • Learned that money follows good deals

How to raise money WITHOUT a deal under contract

  • Put together sample deal package
  • Soft commitments from potential investors

How to get brokers and investors to take you seriously

  • Build great team to help execute
  • Be specific about what you want
  • Use right language
  • No substitute for action

How long it takes Drew’s students to get competent

  • 30 days to get comfortable with language
  • 90 days for market analysis, team and tools

The power of joint venturing in multifamily

  • Engaged community keeps you motivated
  • Play to strengths + scale portfolio together

Drew’s advice for aspiring multifamily syndicators

  • Find likeminded people at Meetup groups
  • Get educated through books and podcasts
  • Commit to vision and take ACTION

Connect with Drew Whitson

The Michael Blank Investor Incubator

Resources

Dave Ramsey’s Financial Peace University

Drew Kniffin

Nighthawk Equity

David Kamara on ABI EP182

Meetup.com

Deal Maker Live

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

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

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

Direct download: ABI_183.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Real estate investors come in many different shapes and sizes. Some young, some older. Some with financial resources, others without. But the one thing they ALL have in common is hustle. They balance learning with DOING, taking action to achieve their dreams of financial freedom through multifamily.

David Kamara was working a demanding job in management consulting, traveling as much as 48 weeks a year. In an effort to spend more time with his family, David enlisted the help of a mentor to fast-track his real estate career and closed on his first 40-unit multifamily deal in October of 2018. Within a year, David had replaced his income, and today, he has a portfolio of 247 units. He runs his own management consulting business as well as Cape Sierra Capital, an apartment building investing firm that focuses on undervalued multifamily properties in the Midwest and Southeast US.

On this episode, David joins me to explain how his daughters inspired him to make time for multifamily and what he did to get started.  He walks us through his first 40-unit deal, discussing how having a mentor helped get brokers to take him seriously. David also shares his experience with the Law of the First Deal, explaining how he had two more deals under contract within two months of closing! Listen in for David’s advice to aspiring multifamily investors and learn his action-oriented approach to achieving financial freedom—with or without financial resources of your own!

Key Takeaways

David’s initial real estate goals

  • Buy one house per year
  • Scale up to build wealth

What made David’s plan change

  • Demanding new job as management consultant
  • Moved to Michigan with growing family (4 kids)

What inspired David’s shift to multifamily

  • Work-life balance suffering
  • Replace time spent training for marathons

What David did to get started

What David liked about his first 40-unit deal

  • Nearby complex rents $100 more (wait list)
  • Major employer in area

How David got brokers to take him seriously

  • Introductions from mentor
  • Use right language to avoid proof of funds

David’s experience with the Law of the First Deal

  • Found 18-unit in Chicago within 2 months
  • First broker proposed partnership on 37-unit

David’s first multifamily syndication deal

  • Fully rented 94-unit in MI college town
  • Investors from professional network

How David found time to do real estate with a full-time job

  • Wake up early, stay up late
  • DECIDE to make time for what’s important

David’s advice for aspiring multifamily investors

  • Balance learning with DOING
  • Go out and buy multifamily property

What David would have done without financial resources

  • Create sample deal package
  • Educate potential investors, address objections

Connect with David Kamara

Cape Sierra Capital

Email david@capesierracapital.com

Call (773) 263-2657

Resources

Syndicated Deal Analyzer

The Ultimate Guide to Buying Apartment Buildings with Private Money

LoopNet

Josh Sterling on ABI EP091

Josh Sterling Mentor Bio

Deal Maker Live

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

Michael’s Mentoring Program

Financial Freedom Summit

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

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

Direct download: ABI_182.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT