As apartment building investors, we realize that off-market deals are the holy grail of our business. But we also know that you have to build relationships with industry insiders in order to access those deals on multifamily properties, and it can be difficult to cold call asset managers, hedge fund operators and associates at private equity firms. If only there was a social media platform that afforded access to a database of professionals and their contact information… Hey, wait a minute! That platform does exist, and today’s guest is here to share how you can use LinkedIn to find off-market properties and earn massive profits.

Jason Lucchesi is known in real estate as the #1 off-market property strategist. He got his start in the industry with Countrywide Home Loans in 2002, serving in the mortgage origination space. In his five years there, he worked his way from account executive to branch manager, but Jason had the good sense to jump ship at the end of 2007 and shift into full-time real estate investment. He has closed REOs, short sales, bulk packages, non-performing notes, and both residential and commercial off-market properties.

Today Jason shares the step-by-step process of connecting with real estate professionals, from initiating a dialogue on LinkedIn to closing the off-market deal. Listen and learn the ‘bank language’ you need to know to communicate with asset managers and land distressed assets for 20-30% of fair market value.

Key Takeaways

 [3:01] The types of investments Jason pursues

• 70% residential
• 30% commercial

[6:37] How Jason got into commercial investments

• Referred to owner looking to liquidate for retirement (2010)
• Leveraged private money
• Negotiated seller financing (capital gains not as high)
• Implemented renovations to increase occupancy rates

[8:36] Jason’s first multifamily deal

[10:47] How Jason employs LinkedIn to find off-market deals

• Initiate search for professionals with ‘asset manager’ in title
• Determine whether he/she works at a bank (distressed assets)
• Connect for access to contact info (email address, phone number, etc.)

[14:05] How Jason initiates contact with asset managers via LinkedIn

• Look for real estate groups the person is involved with
• Customize a message with mention of common groups
• Once invitation to connect is accepted, send email and LinkedIn message
• Initiate a phone call after a couple of days

 [18:18] The script Jason uses in dialogue with asset managers

• Own real estate investment company
• Nationwide investor
• ‘Looking to deploy acquisition capital’
• Ask about ‘assets looking to liquidate’

[19:20] How Jason works with asset managers once connection is established

• Outlines his criteria
• Signs NDA
• Asset manager sends Excel doc list of properties by state
• Receives package from asset manager once a month moving forward

[24:14] The property information typically provided by asset managers

• Appraisals
• BPOs
• Title work
• Unpaid principle balance
• Current market value
• Monthly payment

[27:00] The key strategy that has worked best for Jason

• Reaching out to agents, homeowners, or owners of record
• Learning as much about property as possible before crafting LOI, purchase agreement

Connect with Jason

Jason’s Course

jasonlucchesi.com  

Resources Mentioned

 Right Flipping Now by Jason Lucchesi

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Paul Moore had just gotten his real estate license when he wrote his first book, The Definitive Guide to Smith Mountain Lake Real Estate. Though he didn’t have a track record as an agent, the book made things happen for him, attracting people, money and listings. The work he put into researching the book established him as a professional and propelled his career forward in a big way.

We all have a story to tell, and most of us have considered writing a book to share that story. Being a published author pays huge dividends in terms of credibility, and it’s something you can use as leverage in making deals… Especially if you’re new to the world of investing in apartment buildings. But how in the world do you get started? And how do you carve out the time to sit down and write an entire book?

Nick Raithel is the creator of 7-Hour Book, a proven system that can give you clarity in terms of what you want to write about, assist you in developing an outline, and even partner with you in the writing itself if you don’t have the time to devote to the project. He is on a mission to help real estate investors get the recognition they deserve and attract new business and investment opportunities. Today Nick discusses how publishing a book aligns with the objectives of a real estate investor, the benefits of the ‘thud factor,’ and the components of a book launch. Listen in to learn the real-world results you could enjoy from being a published author!

Key Takeaways

[1:43] How publishing a book aligns with the objectives of a real estate investor

• Establishes credibility
• Presents speaking/coaching opportunities

[4:34] The benefits of the ‘thud factor’

• Physical book differentiates you from the crowd

[5:40] The most common mistake made by aspiring writers

• Difficulty nailing down a topic/approach

[7:38] The real-world results of publishing a book

• Invitations to speak at conferences
• Coaching/consulting opportunities
• Attention/leads

[9:19] An example of the 7-Hour Book Process

• Client wanted to establish credibility in a particular market
• Sought specific type of customer, wanted to establish themselves as most qualified choice
• 7-Hour Book flushed out general idea to create structure around 7 principles
• Each chapter educated prospect and demonstrated experience

[12:40] How to develop an idea for a book

• Go to bookstores, look at own shelves to see what’s out there
• ‘Hijack’ an idea or topic
• Consider the angle that you’re ‘sick of it all’ and ready to share the truth
• Or write as a seasoned veteran who can ‘set the record straight’

[14:18] How 7-Hour Book is different from a ghostwriting service

• Focused on results
• Includes call-to-action for reader

[16:21] How to measure those results

• Track web traffic/phone calls generated by call-to-action

[18:04] The elements of a book launch and the associated marketing

• Media spots
• Reviews (make a difference in the minds of buyers)
• Provides ‘social proof’
• 7-Hour Book team will handle for you or advise

[19:51] How the Book Boost provides the ‘kick in the pants’ you need to get started

• Team designs basic, thorough plan
• Designed to allow you to write book yourself (if you have the time and ability)
• Package is under $200

Connect with Nick

Book Boost Special Offer

Resources Mentioned

 Paul Moore Podcast Episode

 The Definitive Guide to Smith Mountain Lake Real Estate by Paul Moore

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

As apartment building investors, we understand that brokers control the vast majority of real estate deals – and we know that having a ‘in’ with brokers is the only way to score those elusive off-market deals. But if you are just getting started, how exactly do you build rapport with the brokers and partner to source off-market deals?

After graduating from the University of North Texas with a degree in finance, Michael Becker spent nearly ten years at Wells Fargo. During the last five years of his stint in commercial real estate banking, he focused exclusively on multi-family properties and became the number one loan producer for his division three years running. But Michael recognized that he was on the wrong side of every deal, and he made the switch to apartment building investment in June of 2014. In just three years, he has scaled the business, Strategic Property Investment (SPI) Advisory from zero to 4,300 units. Michael also hosts Old Capital, a podcast aimed at multifamily real estate investors.

Today Michael offers sage advice regarding how to cultivate a team, establish credibility and land your first deal. He also shares how to meet brokers face-to-face and establish relationships so that they will partner with you on off-market deals, as well as strategies for sourcing pocket listings. Listen and learn how to provide value to brokers so that you’re top-of-mind when deals come available.

Key Takeaways

 [3:29] How Michael was able to scale from zero to 4,000 units in three years

• Business partner with complementary skill set

[6:18] Why Michael feels so strongly about utilizing brokers to find deals

• Control vast majority of deals
• Relationships with owners
• Brokers do the legwork, bring you potential deals

[7:45] Michael’s advice for newbies on how to build relationships with brokers

• Network face-to-face via meetup groups, events
• Get on broker lists and tour
• Provide brokers with detailed feedback

[9:10] How Michael scores the elusive pocket listing

• Track record of performance
• Known in the small broker community (12 brokers control 80% of the DFW market)

[10:58] Michael’s tips for new investors to be taken seriously and land their first deal

• Be realistic about your resources
• Make it a ‘we’ conversation
• Build a credible team, including a commercial mortgage broker, management company, lawyer and insurance agent

 [13:40] Michael’s recommendations for networking events

[16:29] How to maintain a solid working relationship with brokers

• Check in every two weeks to remain top-of-mind (without being annoying)
• Provide value by sharing industry-specific news items

[19:00] How to source off-market deals

• Pursue properties approaching loan maturity
• Ask brokers about recent BPO’s in which a competitor got the listing
• Subscribe to data services and mine for properties
• Download and archive OMs to track broker-owner relationships

[25:48] Other ways to find off-market deals

• Establish a foothold in a particular area of town
• ‘Gift’ brokers with a list of properties you are interested in

Connect with Michael

Old Capital Podcast

SPI Advisory Website

Email mbecker@spiadvisory.com

Resources Mentioned

Marcus & Millichap Events

Bisnow Events

ALN Apartment Data

CoStar Data Services

Yardi Matrix

trepp.com

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Society teaches us that hard work leads to a great life, so we build a career first and try to fit life into what is left over. But perhaps there is a better approach… What if we could design our lives first, and then fit business into what was left?

Steve Cook began his career in the restaurant business, but failed miserably. Success came with a move to real estate investing, and three years in he had $7M in assets. Flipping houses allowed him to accumulate a great deal of wealth, and his financial advisors were committed to helping him accrue even more. Steve was doing everything right, but he wondered when he would get to enjoy it. The business had become his life, and he was compromising everything that was important to him.

Committed to simplify his life and break free from lenders, Steve made radical changes. He stopped borrowing, downsized to reduce expenses, and pared down his work hours so that he could be the husband and father he wanted to be. In the book Lifeonaire, Steve Cook outlines his approach to the pursuit of an abundant life, and today he shares that philosophy with us. Listen in and learn how to shift your mindset, overcome cultural conditioning, and pursue the life you want right now!

Key Takeaways

[7:09] The message of Steve’s book, Lifeonaire

• Plan of pursuing money to one day live a great life is flawed
• Pursue a great life instead

[8:24] Steve’s moment of realization

• Tax returns reflected $300,000 in interest paid each year
• Slave to debt ($4.5M)
• Consumed by work, compromising what was important

[13:02] How Steve’s life went from simple to complicated in a three-year span

• In the beginning, it took $25,000/year to make ends meet
• Three years later, doing everything ‘right,’ $25,000 only lasted two weeks

[13:58] How Steve simplified his life

• Made a commitment to stop borrowing
• Developed a life vision
• Chose only the deals that got him closer to that vision
• Reduced his working hours (10a-2p, M-F)
• Downsized to reduce expenses

[20:35] The shift in Steve’s approach to real estate investment education

[21:46] How to reduce your working hours

• Believe that it is possible
• Focus only on the most profitable and efficient
• Trust that the business will produce
• Appreciate that it is possible to make more when you work less
• Remember, the WHY will make you more productive

[24:52] Steve’s guidance for living the life you want NOW

• Determine what you want
• Believe that it can happen
• Let go of the idea that you don’t have enough

[26:17] The definition of ‘lifeonaire’ and how the term was conceived

• A lifeonaire pursues an abundant life
• Steve had two clients who were focused on being millionaires
• Both had the ultimate goal of becoming better fathers
• Neither was convinced that they could be good fathers regardless
• Steve recognized that the pursuit should be about life, not money

[29:34] Why more people don’t subscribe to the lifeonaire philosophy

• Cultural conditioning to believe that hard work produces a great life
• We believe we don’t have enough

[31:05] The greatest challenge for aspiring lifeonaires

• Shifting mindset in a culture that says you’re wrong
• Can be overcome by surrounding yourself with people who share your mindset

[32:35] How long it takes to become a lifeonaire

• Can start instantly with a shift in mindset
• The pursuit of joy is a life-long journey
• Expect to see results in the two month to two-year range

Connect with Steve

 Lifeonaire Website

Lifeonaire by Steve Cook and Shaun McCloskey

Resources Mentioned

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Perhaps you are hesitant to invest in real estate at the moment because of predictions of an imminent crash. But when is the ‘right time’ to invest? What if I told you that it is always a good time to invest, as long as you make intelligent choices?

Jason Hartman is the president of Platinum Properties Investor Network, a firm specializing in financial planning for real estate investors, and Hartman Media, a production company through which he hosts 20 podcasts that address business, investments and living well. A self-made multimillionaire and serial entrepreneur, Jason has founded 21 companies and initiated several thousand real estate transactions.

Jason obtained his real estate license his freshman year of college and worked part-time for Century 21, learning about the investment side of the industry and developing his own portfolio. He eventually came to purchase and expand his own traditional real estate firm, and negotiated its sale to Coldwell Banker. In anticipation of that check, Jason sought investment advice from Wall Street – and uncovered a need for a financial planning firm-specific to real estate investors. So he created it himself! He is passionate about educating and assisting investors in acquiring pragmatic investments nationwide. Today Jason explains why the media characterization of ‘housing’ is an oversimplification and outlines the different types of markets. Listen and learn how diversification can offer a solid ROI despite market volatility.

Key Takeaways

[4:12] The volatile nature of cyclical real estate markets

• Receive most attention, media coverage
• Located in coastal and trophy cities
• Can make or lose a fortune

[6:00] Jason’s take on Wall Street financial planners

• Little creativity
• Don’t use the product themselves
• Best sales force (easy to invest)
• Worst product

[6:53] What Jason learned in researching different real estate markets around the US

• Three types of markets – linear, cyclical and hybrid
• Invest in more than one market for a solid ROI

[8:56] Why Jason founded a financial planning firm for real estate investors

• Real estate has the best product, but worst sales force
• He created the business to be his own customer

[11:22] The misleading nature of media coverage of ‘real estate’ or ‘housing’

• Cannot lump all markets into a single category
• Differentiate by product type, price and market (linear, cyclical, hybrid)
• 400 different markets in the US
• Case-Shiller Index only profiles 20 metro areas, 15 of which are cyclical

 [12:54] The differences among linear, cyclical and hybrid markets

• Linear markets grow slowly over time
• Cyclical markets are like a roller coaster
• Hybrid markets fall somewhere in between

[16:04] Jason’s advice to investors with much equity who live in cyclical markets

• Use available tools and technology to invest outside your immediate area
• Diversify geographically (three to five different cities)
• Deploy equity in linear markets that generate a good yield

[18:30] Why Jason cautions investors against cheap properties

• 12% of Americans unbanked
• Difficult to collect rent from C and D class tenants

Connect with Jason

jasonhartman.com

Creating Wealth Podcast

Resources Mentioned

Marcus & Millichap Multifamily Investment Forecast

IRR Viewpoint Report

Milken Best Performing Cities Report

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

You can lead a horse to water, but you can’t make him drink. Or can you?

You likely know exactly what you need to do to succeed in the world of apartment building investment, but perhaps you aren’t making forward progress toward your aspirations. Today’s guest explores the psychology of what holds us back and offers actionable techniques to help you take control of your life!  Rob Dial is a performance coach and speaker who has inspired tens of thousands of people – from college students to NFL superstars – to develop a clear purpose and then establish the habits that lead to success. He believes that leaders are not born, but groomed, and he is committed to teaching others how to become the best version of themselves.

Rob’s forte is understanding the human brain and how to hack it to get past the fears and limiting beliefs that are holding you back. Through his work with MWFMotivation, he seeks to help you dig deep and discover what you were put on earth to do. Today he describes the design of the human brain and explains how to employ that understanding to get clear on the ‘pain’ you are running from as well as the ‘pleasure’ you are working toward. Get ready to be inspired as Rob coaches you to shift your mindset and truly show up in the world.

Key Takeaways

[6:38] Rob’s spin on the ‘lead a horse to water’ analogy

[9:10] How our brains work

• Problem-solving mechanism
• Designed to keep us alive
• Move us toward pleasure and away from pain

[10:07] Why people don’t take action – despite knowing what they need to do

[10:27] How to shift your focus to the ‘why’ behind your goal

• Identify the worst case if you stay the same/don’t hit your target
• Dig deep (beyond the surface level answers)
• Ask, “What’s more painful?”

[16:34] How to motivate yourself to take massive action (when life is not that bad)

• Link where you are now to massive pain
• View your current situation as unacceptable

 [18:48] Why you must dig deeper than money as a source of motivation

• Reflect on the true pain point, i.e.: control of your time
• Peel back the layers by asking, “Why is that important?”

[20:10] How a focus on the ‘pleasure’ you are moving toward keeps you driven

• Picture the benefits of reaching your goals
• Doing the difficult things (e.g.: cold calls) gets easier

[25:18] How to identify and explore your personal ‘pleasure’ and ‘pain’

• Journaling provides clarity
• What do I want?
• What am I afraid of?
• Keep asking ‘why’ to get beneath the surface

[30:43] Why Rob invested in a coach at age 20, despite the expense

• Explore strategy and mindset
• ‘I mattered more than the money’
• Took income from $17,000 to $177,000/year in two years

[37:25] Rob’s best advice to motivate action

• ‘Don’t play like you get a second at bat’

Connect with Rob

 mwfmotivation.com

MWF Motivation Podcast

MWF Motivation on Facebook

Resources Mentioned

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

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

What goes up must come down, and a number of experts predict an economic recession in the not-so-distant future. What are the current economic trends you need to understand? What would a recession mean for the real estate market? And how can y ou protect yourself from a potential crash?

I recently returned from the Real Estate Guys 15^th Annual Summit at Sea, where I had the opportunity to meet several big players in the real estate industry and experience three key ‘aha moments’ surrounding the power of networking, the unsustainable economic trends initiated by our political system, and the spiritual aspect of being an investor.

The Summit at Sea was life-altering for me, and I am eager to share my new insight. Listen in as I examine the current economic landscape and how existing trends may affect the real estate industry down the road. Learn what steps you can take to not only survive a would-be crash, but thrive and prosper despite it.

Key Takeaways

[1:56] The value of networking via conferences, etc.

• We tend to limit ourselves as we reach outside our comfort zone
• You are only one relationship away from making it to the next level (e.g.: Michael Becker’s meteoric ascension from zero to 1,000 units in 12 months)

[3:55] The significance of understanding the political landscape

[4:50] Unsustainable global trends

• Exponential population growth
• Debt
• Oil use
• Deforestation

[5:07] The fallout from the Federal Reserve bailout in 2008

• Printed trillions in response to the recession
• Debt now at $20T, $30T in five years
• Devaluation of the US dollar

[5:42] Exponential trends in growth of debt

• Social Security out of cash in 17 years, Medicare in 11
• $1.5T in college debt, $1T in credit card debt

[6:35] How to respond to this bleak macroeconomic overview

• Educate yourself about the issues
• Consider titles by Kiyosaki, Martenson/Taggart, and Griffin
• ‘You have to see something coming to get out of the way’

[8:34] Doug Duncan’s favorable perspective of the real estate market

• Chief Economist for Fannie Mae forecasts stability of interest rates in 2017 (pending no major policy changes)
• Housing market currently experiencing third largest expansion in US history, yet weakest expansion when inflation-adjusted to reflect income and GDP growth
• Present low housing supply causing prices to rise
• Housing market likely to do well if recession hits
• Interest rates would fall to stimulate economy
• If unemployment stayed under 7%, housing would do reasonably well and rentals would improve

[10:00] Robert Kiyosaki’s approach to the four quadrants

• Mindset comes first – Be, Do, Have
• Spiritual language to describe Employee, Self-Employed, Big Business Owner & Investor

[11:43] The mindsets associated with each of the four quadrants

• Employee – consumed with fear, desire for security
• Self-Employed – issue with control, difficulty delegating
• Big Business Owner – struggle with power, ego
• Investor – not motivated by money/power, truly free

Resources Mentioned

Second Chance for Your Money, Your Life and Our World by Robert Kiyosaki

Prosper: How to Prepare for the Future and Create a World Worth Inheriting by Chris Martenson and Adam Taggart

The Creature from Jekyll Island: A Second Look at the Federal Reserve by G. Edward Griffin

The Real Estate Guys

The Investor Summit at Sea

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Obtaining funding can be one of the more difficult aspects of real estate investing. How do you go about finding the right lender? My guest today is making the process quicker and easier by marrying technology and real estate to create an online marketplace where investors and lenders can connect.

Ross Hamilton is the CEO of connectedinvestors.com, the world’s largest network of real estate investors. He began investing in real estate at the age of 19, and soon realized that the more connections he had in the real estate investing world, the more lucrative business could be. He leveraged his understanding of technology to create what he calls “LinkedIn for real estate investors” and became wildly successful during the property value upswing. Ross then had the foresight to diversify prior to the crash, and even thrived during the crash by investing in real estate in military towns.

Ross continues to grow his portfolio as well as his network of real estate investors, as he seeks to change the way money flows through the industry. Listen in as he explains how the Connected Investors platform pairs lenders with investors, how to spot a fake lender, and how technology will continue to affect the future of financing via crowdfunding portals and social networks.

Key Takeaways

[3:22] The key to success in real estate

[3:38] The evolution of funding real estate investments

• ‘Wild West’ of easy funding led to crash
• Impossible to attain after crash
• Smart investors shifted focus to real estate
• Trillions raised to buy bank portfolios
• Now there is more money than deals

[6:54] How the Connected Investors platform connects investors with lenders

• Press 12 buttons and type the property address
• The platform identifies appropriate lenders
• Real, active, verified lenders compete via bidding

[8:35] The success of CiX

• Simplified process makes obtaining loans easier
• Process $1B in applications every two weeks

[10:10] The types of debt supplied by CiX

• Currently provide recoursereal estate fin
• Just added portfolio
• Making strides to include nonrecourse for commercial 

[12:43] How CiX helps investors with the equity component of funding

• Small business lender programs for CiX network investors
• Private lenders in network willing to think outside the box

[14:54] The prevalence of scammers posing as lenders

[18:21] How to qualify lenders and identify scammers

• Ask for recent closings
• Verify via public records
• Contact borrowers as references

[20:02 ] The future of financing

• Expansion of crowd-funding portals
• More wealthy individuals investing in real estate
• Additional capital moving into real estate
• Added transparency
• Faster, easier and cheaper to raise capital
• Evolution of the market by technology

[22:43] Ross’s advice for investors struggling to find funding

• Evaluate your deal- it’s probably not good enough
• Consider how you present yourself to lenders

Connect with Ross

TheMichaelBlank.com/cix

Resources Mentioned

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

When someone decides to invest in an asset, they are essentially investing in a prediction of the future. All investments carry this element of risk, but there are some assets that are much riskier than others. Paul Moore, believes that he has found the perfect investment that offers relatively low risk with high rewards. It may not come as a shock to listeners that this investment is multifamily investing!

Listen in to find out how Paul became a real estate investor, and how the “recipe” for the perfect Investment is allowing him to support charitable causes throughout the world!

Key Takeaways

 [04:26] Paul’s first experience with multifamily investing

• Built multifamily facility from the ground up in North Dakota
• Rented out at $13 per square foot

 [06:47] Investments to last a lifetime

• Paul realized most of the super wealthy made their fortunes in real estate
• Demographic trends make real estate investing ‘The Perfect Investment’

 [09:54] The changing trends in American home ownership

• Has dropped from 69% to 63% in 11 years
• Every percentage drop in homeownership is 1 million households into the renter pool
• More demand than supply

 [11:52] The 3 drivers behind low home ownership

• Baby boomers moving back into rentals
• Millennials seeking flexibility, do not want to be tied down
• Immigrants rent more and for longer

 [16:33] Multifamily investing return vs. risk

• Far better than other asset classes
• Multifamily delinquencies were 90% lower than residential in last recession

 [20:45] The recipe for the perfect investment

• Passively invest in stabilized, value-add properties
• Find a trustworthy asset manager
• Find a capable property manager
• Find a large and growing market

 [29:02] Giving back through investing

• Paul never wants to retire
• He wants to give back - to help stop human trafficking
• Paul's company shares profits with organizations that are making a difference

Connect with Paul

wellingscapital.com

Email: paul@wellingscapital.com

Resources Mentioned

Podcast: How to Lose Money

The Perfect Investment: Create Enduring Wealth from the Historic Shift to Multifamily Housing

Finding the right business partner can be as important as finding the right investment opportunity. A great partner can bring time, money, expertise, and often prove vital to achieving your first MF deal.

Someone who knows all about first deals and partnerships is Joe Fairless, my guest on this week’s show. When I first spoke to Joe on the podcast, back in episode 10, he had just finished closing on a phenomenal 168 unit apartment building for his very first deal. Now,  2 years later, Joe has used the momentum of the first deal to propel himself headfirst into the world of real estate investing, with some incredible results.

Listen as Joe tells us what he’s been up to since we last spoke, including focusing his strengths, utilizing partnerships, and massively growing his real estate portfolio since that vital first deal.

Key Takeaways

[2:52] What Joe has done since his first deal

• Grown real estate portfolio from $7m to over $100m in just 2 years

[3:36] How Joe achieved such rapid growth

• Partnerships
• Identifying his strengths
• Finding partners whose strengths differ from his

[5:46] Joe’s key strengths

• Identifying opportunities
• Building solid business plans
• Bringing in investor money

[9:59] Smart partnering

• Joe has used partners on all of his deals (7 so far)
• He has utilized many different types of partnerships
• Joe always chooses partners who can provide a new strength

[16:50] Using co-sponsors

• Partnerships can be Limited or General (GP)
• GP’s mean bringing someone in on your side to make the deal happen
• Joe often arranges compensation packages for co-sponsors

[21:14] Joe’s tips for partnerships

• You might have to give up a lot to get that first deal, but that’s OK
• Learn to identify when you should and should not partner

[21:45 ] The risks of partnerships

• If they are property managers, they could be fired, but still own part of the GP
• Protecting yourself from a bad partner
• Use a lawsuit only if all else fails

[27:05] Joe’s goals for 2017

• Make sure investments continue to perform for investors
• Continue to find valuable opportunities
• Continue to support charitable/education causes

Connect with Joe

joefairless.com

Email: Info@joefairless.com (Email Joe for free money raising spreadsheet tool)

Resources Mentioned

Crucial Conversations

Best Real Estate Investing Advice Ever (Volume 1)

Previous podcast episode with Joe: themichaelblank.com/session10/

Michael’s deal analyzer

Deal Maker Mastermind

If you’ve listened to the show before, you’ve probably heard me talk about the power of the first deal. Your first multifamily deal will be the smallest, the longest, and the hardest deal you will ever have to make. However, the power of the first deal is that the second and third, which follow in rapid succession, are almost automatic.

Jordan Madewell, my guest on this week's show, knows all about the power of the first deal. Closing on his first multifamily, a 23-unit complex, with his business partner in 2016, Jordan is on the fast-track to completing his next two deals, which he hopes will help him reach his 2017 goal of 100 units. I can’t wait to see how he gets on in the next 12 months, but in the meantime, let’s listen as Jordan talks about his drive, how he got started in real estate, and most importantly, how he nailed that all-important first deal.

Key Takeaways

[02:53] Jordan’s start in real estate investing

• Jordan’s parents and grandparents always had rentals
• In 2007, while still in college he bought and rented out his first single-family home

[04:05] The moment Jordan realized that he needed to be investing in multifamily

• Released that It takes the same amount of time and effort to do a deal 10X bigger

[06:40] Jordan’s goal and his “why”

• $5000/month passive rental income

[14:23] How Jordan built a network of investors

• Established contacts before the deal was in place
• Started conversations early to build investor trust

[15:20] Jordan’s first deal.

• “lucked upon it”
• 23 units built in 2006.

[16:30] Raising the money for the first deal

• Syndication
• Called network of investors
• Raised needed funds in 72 hours

[26:47] What’s next for Jordan

• Actively looking for more and bigger deals

[36:00] The power of the first deal

• There is enormous power and potential in completing the first deal
• It’s the smallest, takes the longest, and is the hardest to pull off
• The second and third deals follow in quick succession

[45:28] Jordan’s advice for new real estate investors

• Calculate your ‘Rat race’ number and reverse engineer it
• Learn as much as you can, but always follow it with action
• Find a mentor or peer group to guide and help you on your journey

Connect with Jordan

Phone: 806-570-0264

Email: Jordanmadewell@gmail.com

Web: madewell-construction.com

Resources Mentioned

The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges

richdad.com

biggerpockets.com

Old Capital Real Estate Investing Podcast

Five years ago Brad Tacia was just a regular guy, working a 70 hour week as an engineer to support his family. In 2011 he began to invest in real estate. After making the switch from single family to multifamily investing, Brad managed to replace his income in just 2 years.In this episode I talk to Brad about the amazing progress he has made over the last 2 years, investigating the reasoning and

In this episode I talk to Brad about the amazing progress he has made over the last 2 years, investigating the reasoning and mindset behind his life-changing actions, as well as the habits he has developed to achieve his goals. From his first multifamily deal, to the syndication of a second complex, the results of Brad’s determination and decision-making can serve to inspire anyone interested in multifamily real estate investing.

Key Takeaways

 [03:05] Brad’s backstory: from 9 - 5 to real estate.

• Brad has worked in auto engineering all his life.
• Layoffs in the auto industry inspired Brad to seek out a second source of income.
• He realized he needed a ‘Plan B’.

 [04:56] The thought processes behind real estate investing.

• Now with a family, Brad was starting to think about how to secure a financial income.
• He moved into a new family home and began to rent his old home.
• Gravitating towards real estate, he started researching and investing in single family.

 [07:23] Thinking about replacing income with real estate.

• Maintain flexible and ever moving goals.
• First goal to replace 25% of income, then 50%...
• Recently achieved goal to replace 100% of income with real estate.

 [9:09] ‘The idea was to buy one house per year’.

• Transitioned to the multifamily market after buying his 5th single family home.
• Did not start with multifamily because the thought was too daunting.
• Wishes he had started sooner.

 [11:45] Making the move to multifamily investing.

• Brad started to educate himself, reading over a dozen books on apartment investing.
• Started analyzing deals to get comfortable with the numbers.
• Analysed 50 deals and gained confidence in the market.

 [14:14] Brad’s first multifamily deal.

• 12 units.
• Agreed on $850,000 ($71,000 per unit).
• Raised rents to market value for an instant cash flow boost.

 [19:50   ] A change in comfort zone and a shift in goals.

• The benefits of finding a good property manager.
• Finding more money to invest in multifamily.

 [25:25] The ability to make deals directly impacts the scalability of the business.

• After the first 12 units Brad set his sights on fully replacing his income.
• He wanted to cover his family's living costs, his ‘rat race number’.

 [26:04] Brad’s motivation for doing what he does

• At first it was to provide for his family
• Now it’s about gaining freedom with his time

 [27:21 ] Why Brad keeps doing new deals even though he’s met his financial goals

• Brad loves analyzing deals.
• Wants to pursue more syndication deals.

 [35:35] Real estate investing alongside a full-time job.

• Utilize your free time in the most effective way possible.
• Research deals on lunch breaks, use your daily commute to make phone calls.

 [36:25] Changing your habits and finding your why.

• Do something every day to keep your deals moving.
• Don’t let anybody else own your time.
• Find your drive. Brad’s is to spend more time with his family.

 [42:26] What Brad would tell his younger self.

• 1^st get expenses under control
• Go into multifamily sooner and build the right mindset
• Start young, start early, be serious about it.

 Connect with Brad

 Cell Phone: 248-881-4570 (call or text)

 Email:  bradtacia@gmail.com

 Resources Mentioned

 The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges

Kevin Bupp is an entrepreneur, philanthropist, and real estate expert. Since 2010 Kevin has been focussing his attention on the mobile home park market, the results of which he has happily agreed to share with me today. Throughout his entrepreneurial journey, Kevin has always returned to real estate, a market he calls ‘one of the easiest ways to create true wealth’. Now that he has made the leap to mobile home parks, his only wish is that he had done it sooner!

 Listen now to hear my chat with Kevin, including; how he dealt with the economic recession, his chance move to mobile home park investing, and most importantly his best and transferable techniques to close those important deals.  

Key Takeaways

[03:17] Kevin's real estate journey.

• Got into real estate at 19 years old
• Began his real estate journey with single family homes.
• He was in the business for 5 years before he bought his first multifamily home.

[4:48] The recession and a two-year hiatus.

• Took a couple of years away from the real estate market following the crash.
• Worked on some different markets, including health & fitness and fashion.
• A chance meeting got him interested in the mobile home park market.

[05:51] ‘The biggest small project I ever worked on’.

• How he found his first mobile home park deal.
• Various partnership structures.
• He always has at least one business partner.

[10:07] Raising money for his first deal.

• His credit was shot following the economic crash.
• Former investor helped to finance his first park.
• It was important to make his investor feel safe.

[11:47] Why Kevin decided to go back into real estate

• He believes it is still one of the easiest ways to create true wealth.
• Only way to get back to the lifestyle he was used to.

[14:17] Lessons learnt from the recession.

• Single family homes are very inefficient.
• Mobile home parks provide scalability.
• He wishes he had started buying multifamily sooner.

[19:17] So what’s so great about mobile home parks?

• Some unique barriers to entry.
• They don’t build them anymore.
• The only commercial asset class with a diminishing supply.
• It's affordable housing, a market with a growing demand.
• Tennent turnover rate is low because homes are expensive to move.

[22:20] Park management and scalability.

• There are not many professional management companies for mobile home parks.
• Kevin has his own internal management structure.
• On-site manager who lives in the park.

[24:53] Where Kevin finds his on-site managers.

• Look for tenants who maintain their homes, displaying ‘pride of ownership’.
• You can also hire managers from outside, but they must live in the park.

[26:25] Finding new deals in the mobile home park market.

• Majority of his deals are found off-market.
• Utilizes direct mail and cold calling to target potential park sites.
• Identifies target market first

[30:07] Techniques and tips for finding owner information.

• Using TLO.com you can find out nearly any person’s contact information.
• The information gained in this way is very accurate (but you have to meet TLO criteria).

[37:40] What would Kevin tell his younger self?

• Buy multifamily homes and stay away from the single family market.

[41:25] What Kevin is most excited about right now

• It is a unique time for the industry.
• It’s a great time to be buying mobile home parks.

Connect With Kevin

 Kevinbupp.com

Mobilehomeparkacademy.com

 Resources Mentioned

 TLO.com

Real Estate Investing For Cash Flow Podcast

The Mobile Home Park Investing Podcast

Bobby Casey, an entrepreneur, and world traveler who now specializes in helping people protect their assets and live off the grid. He’s managing director of Global Wealth Protection, which provide asset protection strategies to shield your wealth from frivolous litigation and create "sleep at night" insurance. 

His company can properly structure your offshore company, trusts, foundations and provide bank account introductions to more than a dozen banks around the world. In addition, they can help you move your IRA funds offshore.

We truly live in a world gone mad. Lawsuits are easy to file, the rewards can be enormous, and there’s no down side to losing a lawsuit.

Story of house flip.

Bobby describes how to structure the entities so that it’s hard for attorneys to figure out what you own. By using advanced techniques, like irrevocable trusts, it’s actually possible to not own anything, so even if you do get sued, there’s nothing to attach the judgment to.

Listen to this episode and implement Bobby’s techniques NOW before you lose it all.

 Key Takeaways:

[3:39] Bobby’s Backstory

• Owns Global Wealth Protection
• His mission is to teach people how to internationalize their business, wealth, and life.
• He caters to those who are interested in an international business and lifestyle

[4:32] His thoughts on living like a nomad

• He’s been an expat for almost a decade and lives in Latvia
• He says a digital nomad is “an expat with commitment issues”
• He is passionate because the technology today makes it significantly easier to become a digital nomad.

[7:26] His life before he became a digital nomad

• Started, bought, sold a dozen businesses.
• He has been an entrepreneur his entire adult life and had a few epic failures along the way.
• He started being a digital nomad because he’s an expat.

[9:47] His thoughts on real estate investing

• Real estate investing is a great opportunity for people who want to have a nomadic lifestyle.
• He likes the concept of parking money in physical assets.
• His advice is to diversify geographically

[13:16] Mistakes investors often make

• Poor structuring of a deal is a common mistake
• He provides an example of how damaging poor structuring can be

[17:21] His advice to prevent poor structuring of deals

• He doesn’t recommend home state LLC own their property
• Don’t create an umbrella of ownership in one corporation
• Have an irrevocable trust on the membership interest in all LLCs

[21:50] Irrevocable trust and its beneficiaries

• An irrevocable trust is an asset protection and estate planning tool
• You'll be a grantor or settlor of the trust.
• You don't have any asset that's attachable at a judgment at all.

[26:20] Federal Lawsuits

• According to the American Bar Association, the statistics on federal lawsuits says a new lawsuit is filed every 16.5 seconds.

[29:26] Another mistake and what’s it like to file a lawsuit in the US

• Another common mistake is owning a property in your own name.
• A mindset that no one will sue you makes no sense.
• In the US, there are no consequences to sue somebody for no good reason.

[34:20] Bobby’s advice on implementing asset security

• Don’t own anything in your name.
• Have a properly structured LLC
• Wyoming is a preferred state unless you live there in which case use Nevada.

[37:37] Bobby’s “aha” moment

• Started a business in the 90's assembling bicycles for Walmart.
• An official letter from Walmart suddenly canceled his vendor contract as of that day. This was his big wake-up call on putting too many eggs in one basket.

Connect with Bobby Casey:

• Global Wealth Protection
• Facebook
• Twitter

Resources Mentioned:

• American Bar Association

Gino Barbaro is passionate about multifamily investing, and he believes it’s about the strength of your WHY that determines your success. You must DECIDE you want to change your life, and if you do, you have no choice but to take massive action.

That’s what he did several years ago. Gino was in the restaurant business for 22 years, and he was burned out. He decided he needed to change his life, and he chose real estate to do it.

In this episode, he chronicles his amazing journey from pizza guy to full time multifamily investor. Despite setbacks, a bad partnership and an all consuming day job at the restaurant, he and his partner Jake did their first deal, a 25-unit in Knoxville TN. Today they own nearly 700 units and the sky’s the limit.

Together with Jake, he created Jake and Gino.com, a real estate educational company that offers coaching and training in real estate investing. He is the best selling author of the book “Wheelbarrow Profits”.

Listen and be inspired by Gino’s story. Decide and Your Real Estate Success Will Follow.

About Gino Barbaro

Gino Barbaro is an investor, business owner and entrepreneur. He has been investing in real estate for 15 years and has grown his multifamily portfolio to 674 units in 3 years. He has teamed up with Jake Stenziano to create Jake and Gino.com, a real estate educational company that offers coaching and training in real estate investing. He is the best-selling author of “Wheelbarrow Profits”. Visit Wheelbarrow Profits Tutorial, an educational product focused on multifamily investing. Gino is a graduate of IPEC (Institute for Professional Excellence in Coaching) and is a Certified Professional Coach. He is also the author of the best-selling cookbook "Family Food and the Friars". He currently resides in New York with his beautiful wife Julia and their six children Gabriella, Michael, Sofia, Veronica, Cecilia and Laura. To learn more about Gino visit his website Jake & Gino or Gino Barbaro

Key Takeaways

[2:19] Gino’s background in the restaurant industry

[3:54] The two types of motivation

• Moving towards pleasure or away from pain

[5:00]- Gino’s rough start in real estate investing

• No focus on a specific niche or market
• Mobile home park failure

[7:18] Why there’s no such thing as a mistake

[8:41] Why Gino decided to invest in apartments

• Didn’t want to rehab and flip properties
• Less work than single family investing
• Single family investing in the NY market didn’t work well

[12:44] The benefits of a partnership

• Formed a partnership with Jake Stenziano in 2010
• Your partner can help you see something you don’t see
• Two minds better than one
• Stronger balance sheet

[14:15] Gino’s and Jake’s first deal

• Invested in an “Emerging Market”
• Property was listed for 750K
• Purchased for 500K
• Value added buy - Lots of little things that added up

[19:45] Why it’s a good idea to self-manage your first deal

[24:23] Why you should explain your offer to the seller

[28:12] What’s next for Gino

• Syndication

[29:29] Gino’s lightbulb moment

• Realized he was wasting his time on mundane tasks
• Left the restaurant industry

[35:00] Gino’s advice to a new investor

• Find your reasons why
• Focus on a market, get educated

[37:23] Why people want things but don’t act

• Lack of a burning desire
• Burning desire will lead to massive action
• Example of Gino’s dad and the day he stopped smoking

[43:18] Favorite books

• The One Thing
• Rich Dad Poor Dad

Connect with Jeno:

jakeandgino.com

Twitter

Facebook

Resources mentioned:

Wheelbarrow Profits Podcast

Book: Wheelbarrow Profits: How To Create Passive Income, Build Wealth, And Take Control Of Your Destiny Through Multifamily Real Estate Investing

Vinney “Smile” Chopra shares his amazing journey from arriving to this country from India with $7 in his pocket to building a $70M multifamily real estate empire.  In this episode, we focus in particular on how he started his multifamily investing career and how he eventually raised $1.1M to do his first two deals.

After having graduated from George Washington University, Vinney became a mechanical engineer. He was fascinated by sales and marketing and sold encyclopedias and bibles door-to-door. For several decades, he was a professional fundraiser for non-profit organizations. He started investing in single family houses in the mid-eighties, but in 2007 he became passionate about multifamily investing. Since then, he’s done $125M worth of real estate transactions and currently controls over 1,400 units.

Vinney’s middle name is “Smile” because that what he did a lot during our interview. Here are the topics we cover on the podcast:

• Why he decided to get started with real estate. Too much work! Couldn’t really scale.
• His first venture into MF: hard!, it took 12 months. It seemed impossible. He ended up closing a 14-unit and then a 109 unit just several weeks afterward, raised $1.1M.

Key Takeaways:

[7:30] Vinney’s start in real estate investing

• Started with single family housing
• Planned on selling the homes to fund retirement

[12:47] Vinny’s preferred method of learning

• Youtube
• Google
• Podcasts (12-15 per week)

[13:31] Why positive thinking is so important if you want to achieve your goals

[18:13] Why Vinney decided to stop investing in single family housing

• Minimal economies of scale
• Risk of 100% vacancy
• After the crash of 2007 lenders would only loan on multifamily housing

[20:33] Why Vinney recommends finding a partner

• Encouragement through the tough times

 [26:17] Why you should talk to a syndication attorney before raising money

• Vinney’s syndication attorney: Kim Taylor

[28:00] Vinney’s very first deal

• 14 unites
• Closed on 109 units soon after

[32:14] How Vinney raised money for his first deal

• Hustled!
• Decided not to accept money from friends or relatives
• Designed a great presentation

[38:55] How one happy investor can lead to 30 more

Connect with Vinney

Phone: 925-766-3518 (call or text)

Email: vinney@moneilig.com

Vinney’s course on syndication: realestateu.tv

Learning how to find and analyze multi-family deals is important, but if you can’t afford to fund it yourself, you need a strategy for raising money! Doing what everyone else is doing to raise money is less and less effective, and that’s why I’ve invited Richard Wilson on the podcast to talk about raising money. Richard’s business isn’t just about raising money for real-estate, but we can adopt many of the strategies that Richard talks about to raise money for our multi-family deals!

About Richard Wilson:

Richard Wilson helps $100M+ net worth families create and manage their single family offices and currently manages 14 clients including mandates with three billionaire families. Richard is also the founder of the Family Office Club, the largest membership-based family office association. Richard hosts the "The Family Office Podcast", and he is the author of the #1 bestselling book in the family office industry, The Single Family Office: Creating, Operating, and Managing the Investments of a Single Family Office. He is a sought-after speaker and has spoken at over 150 conferences in 17 countries. Richard currently resides on the island of Key Biscayne, Florida with his wife and two daughters.

Enjoy the interview!

Key Takeaways:

[1:54] Definition of a Single-Family Office: Private company that manages investments and trusts for a single person or family.

• Many wealthy people prefer to put their money back into operating businesses.

 [9:27] Richard’s experience raising money

• Around 250 million raised

[9:56] Richard’s strategies for raising money

• Stop pitching people. They don’t like it.
• Start educating people. Provide real value to other people that are already in the game.

[13:02] There are experts in your niche that don’t compete with you but have enormous credibility. Find ways of efficiently connecting them to each other, (like through a podcast), and you will get Triple ROI:

• Getting value out of their brain
• You will gain a connection to this person
• Now everyone knows your well connected and educated

[15:39] Richards advice on raising money from private investors.

1. Analyze your competition and what you offer. Know what’s really going on in your industry.
2. Identify your position so that almost no one can compete with you.
3. Architect exactly how you will attract the people based on your unique
4. Execution
5. Iteration

[20:45]- When you layer communities, you create good luck.

[23:44] What Richard would do if he had only 500 bucks and a laptop (EO Fire Podcast question)

• Position himself to own a checkpoint and find a way to control a critical resource.
• Own something that is a bottleneck in your industry

[29:03] Special offer:

• Download the first 4 chapters of the Capital Raising Book here: http://capitalraising.com/the-capital-raising-book/

Resources mentioned:

Family Office Podcast: Real Estate Investments, Co-Investing, Capital Raising, and Private Equity Business Strategies: https://itunes.apple.com/us/podcast/family-office-podcast-real/id849850253?mt=2

Ever wonder what SEC regulations apply to apartment building syndications? There is a lot to this subject and while it’s not crucial that you know everything, nor should you try, it is important that you have a basic understand of what’s involved and what to look out for.

This week I’m joined by SEC Attorney Steven Rinaldi who has been handling private offerings of securities for over 26 years. Steven is extremely knowledgeable and competent, and this episode is packed full of useful info!

Key Takeaways:

[2:25] Definition and example of a syndication
[5:00] The types of entities Apartment Building Investors should use for Syndication
[8:08] How to structure a deal
[10:31] Legal documents required for syndication:

• Operating Agreement
• Prospectus/Private Placement Memorandum (PPM)
• Subscription Agreement
• Form D. File this in the states where the investors are located (not the property)

[13:12] Advantages of Delaware LLC’s

• Hard to break up
  • Discourages disgruntled investors from filing lawsuits
• Delaware judges see these cases all of the time and are very familiar with business law
• Get out of trouble for as little as 10K vs. 250K

[17:38] What makes an investor an “Accredited Investor”

• Net worth of one million or more excluding their house, car and life insurance
• Husband and wife with a salary of 300K or more, with every expectation that will continue
  • Or one spouse makes over 200k per year, (with every expectation that will continue)
• Less common
  • Trust fund of more than 5 million, Corporation, Partnership or LLC worth more than 5 million
  • Banks, Broker/Dealers, Mutual Funds, Insurance, Small Business Development Companies

[19:18] What qualifies as a “Prior Relationship”

• The SEC won’t define it

[21:10] How to go about advertising to accredited investors

• Go to a broker/dealer that specializes in alternative investments

[21:52] The difference between advertising and networking

[22:37] The importance of doing a PPM

• You are required to provide a PPM to all non-accredited investors
• You want to provide a PPM to accredited investors because they can sue you for fraud for not disclosing all "material information"
• If you don’t, and the deal goes sideways you could easily lose everything you have. In most states that includes your house and your kid's college fund.
• In most states, you cannot discharge a securities law judgment or fraud judgment in bankruptcy
• ALWAYS DO A PPM!

[26:43]- Time and cost of drafting an Operation Agreement and PPM

• Three weeks for initial draft
• Could be completed in as little as five weeks

[29:10] The basics of crowdfunding

• You can advertise to non-accredited investors BUT pay attention to the rules
• You must refund all money if you don’t hit your goal.
• More work for an attorney, therefore, more expensive

Connect with Steven Rinaldi

Email: stevendrinaldi@msn.com

Website www.rinaldilaw.com

Phone number: 240-481-2706

It’s just me on this episode and I want to talk with you guys about mindset. Expanding your mind is something help you achieve your goals in the fastest way possible. Staying within your comfort zone can do the opposite.

In this podcast I outline 5 Reasons why bigger is better with apartment building investing and then give you 3 practical ways to expand your comfort zone, so you can do more/bigger deals.

Key Takeaways:

[0:30] We limit ourselves based on what we believe is possible.

[3:14] Buying an apartment building twice as big really doesn’t add that much work.

5 Reasons Why Bigger is Better with Apartment Building Investing

[4:18] Reason # 1: A Much Better Buying Experience

• The smaller you go the more of a pain it will be.
• Less sophisticated sellers

[4:55] Reason # 2: Economies of Scale.

• You can spread out the cost of management/maintenance over more units.

[5:25] Reason # 3: Less closing costs as a percentage of the deal

• Many flat rate fees

 [5:55] Reason # 4: Better financing

• Non-recourse loans. The larger the loan the less likely you will have to personally guarantee it.
• Larger loans are cheaper. Interest rates go down and terms get better.

[6:40] Reason # 5: Bigger Profits for less work

• Would you rather buy 30 houses or one 30 unit building?

3 Practical Ways to Expand Your Comfort Zone (So You Can Do More Deals!)

[10:31] Tip # 1: It all starts with visualization

 [12:01] Tip # 2: Create a sample deal package.

• Look at deals that are outside of your comfort zone. (More units).

[13:43] Tip # 3: Visit properties that are outside of your comfort zone

• Visit 3-4 properties over the period of 1 week

Mentioned in this Podcast:

Book: The Miracle Morning

eBook: The Secret to Raising Money To Buy Your First Apartment Building

Movie: The Secret

I’m doing something a bit different with this episode and I think you are going to really enjoy it. While I realize that the name of this podcast is “Apartment Building Investing” it’s good for us to expand our minds and see what else is out there.

Today I’m joined by Jefferson Lilly to talk about mobile home park investing!

Jefferson Lilly is a self-made millionaire mobile home park investment expert, educator, and industry consultant. Prior to co-founding Park Street Partners in 2013, Mr. Lilly spent seven years investing his own capital acquiring and operating his own mobile home parks. Before becoming an investor full-time, Jefferson spent nine years in sales leadership roles with several venture-backed startups in Silicon Valley. Jefferson has been featured in The New York Times, Bloomberg Magazine, and on the 'Real Money' television show. He holds a B.A. from the University of Pennsylvania and an MBA from the Wharton School of Business.

Key Takeaways:

[6:58] In the mobile home business, you want to own the land, not the homes. “Be in the real estate business. Not the wheelestate business.”

[8:08] Owning the land only, cuts out the vast majority of repair and maintenance that you are responsible for.

[8:53] What to look for when investing in mobile home parks.

1. Look for properties that have no website and are undermanaged.
2. Buy a park that is on municipal water/sewer.
3. Make sure rents are going to remain relatively consistent.
4. Look at parks within 5-10 miles of a Super Walmart.

[13:19] What to look for in an onsite mobile home park manager:

1. Someone that has lived in the community for a while
2. Someone who owns their own home
3. Someone that keeps their home looking sharp.

[20:22] People tend to treat the park and their homes with more respect the father north you go (in the U.S.).

[22:16] When starting out, be hands on for the first 6 months. After that, think about outsourcing tasks.

[25:05] Income streams from Mobile home parks:

1. Leasing the grounds.
2. Selling mobile homes, via rent to own agreements.

[26:13] Common financing options for mobile home parks:

1. Region banks (most common)
2. Seller financing (preferred option)

[30:44] Primary ways to find deals:

1. Brokers
2. Direct outreach

[34:09] Why mobile home parks can offer great upside:

1. Less competition in certain areas of the country.
2. Not a “sexy” investing option.

 [38:38] Ways to invest in mobile home parks:

1. Do it yourself.
2. Invest through a fund like Park Street Partners.

How to Connect with Jefferson

www.parkstreetpartners.net

Podcast: Mobile Home Park Investors

MobileHomeParkInvestors.net

http://www.lillyandcompany.net/

This episode is a bit different than the norm because I am the one being interviewed! JP Moses with realestatemogul.com interviews me about apartment building investing and raising money.

I talk a bit about my journey, the struggles I’ve had and why many people dismiss apartment building investing as a wealth creating strategy for themselves. We discuss the myths and realities of getting started with apartment building investing and how to overcome the initial roadblocks.

Key Takeaways:

[4:02] Success is riddled with mistakes and failures

 [6:02] You have to be willing to operate in an environment where you can’t control everything and be at peace with that.

[11:59] Key components that make a deal worth doing.

[13:24] Why there is less speculation in commercial real estate than in single family investing.

[13:56] Very few great deals are going to be in your backyard.

[14:10] The best way to find deals in through relationships with brokers.

 [16:35] Loopnet.com is useful in finding brokers to start relationships with.

[20:14] People dismiss apartment building investing for these 3 reasons:

1. I don’t have the money.
2. I don’t have the experience.
3. It’s so overwhelming I don’t know where to start.

[21:40] Flipping houses or investing in single family doesn’t give you credit when it comes to investing in multifamily dwelling.

[22:25] If a broker is asking you qualifying questions they’ve already classified you as a newbie.

[27:00] Even in stable apartment building investments you need to be interacting with your property manager on a consistent basis so you don’t lose touch.

[31:45] The right way to introduce yourself to a broker.

[34:55] Putting together a sample deal for potential investors.

[45:37] How to make money on deals you can’t pull the trigger on yourself.

[48:29] Don’t spend money in the due diligence process until you are 98% sure you are going to get the deal done.

[53:04] Invest in your education. Everything else can be achieved with hustle.

There are many advantages to investing in multifamily over single family rentals and this week I’m joined by a guy that has invested a lot in both.

Rod Khleif has been a real estate investor for the past 25 years has owned over 2000 apartments and homes. Rod shares his fascination real estate investing journey and how he built a HUGE single family house investing business which kicked his butt during the recession. Rod gives us the pros and cons of Single Family Vs Multifamily investing and discusses why he thinks a correction is coming and why multifamily’s are the best investment right now.

But ask Rod what he is most proud of, and he will tell you about his work as a community philanthropist. Over the past 14 years, Rod’s work has benefitted more than 40,000 underprivileged community children.

Rod has a new book, coming soon, on the topic of multifamily investing and listeners of this podcast can get it for FREE by texting “Rod” to 41411. Rod hosts a new and already popular podcast called the Lifetime Cashflow Podcast.

Key Takeaways

[3:58] Single-family rentals either are rented or they are not. With multifamily dwellings, you can typically cover your expenses, even with a vacancy.

[6:03] Learn a business, and confidence and the ability to influence people will follow.

[7:30] Always be learning. Regardless of how much you know, there is always something to learn.

[10:28] To be good at investing, you need to learn to love it.

[10:47] Learn to find positives in negative situations

[14:24] Pros and cons of Multifamily investing

[18:08] The beautiful thing about multifamily is it’s valued based on the net operating income NOT comps.

 [19:34] By improving net operating income you can exponentially raise the value of an apartment building.

 [21:53] Financing on large deals can be easier to secure, with better terms.

[25:01] It’s easier to scale multifamily investing than single family.

[27:12] You can become finically free with ONE transaction in multifamily. It generally takes dozens of single family deals to accomplish the same thing.

[30:16] If you’re willing to do what others don’t do, you will be a success.

[37:09] The importance of visualizing your goals.

[39:47] Know the “why” behind your goals.

Mentioned in this interview:

• Rod's Podcast is the Lifetime Cashflow Podcast: http://www.lifetimecashflowpodcast.com/
• Rods new book all about multi-family real estate investing: Text “Rod” to 41411 and get the book FREE when it’s released.
• Connect with Rod Khleif

The best way to connect with Rod is via email at rod@rodkhleif.com

About 98% of the people that come to me are not aware that they can invest in real estate from their RIA or 401k. Investing with your IRA or 401k brings enormous tax advantages, and therefore growth advantages, but there is quite a bit you need to know before you get started.

This episode is part 2 of my interview with Attorney, Accountant, and Real Estate Investor John Hyre. In this episode, John covers a few advantages and disadvantages of various retirement investing plans and the pitfalls of prohibited transactions which can easily blow up your IRA and cost you 50%-60% of the account value.

John has a course on this topic that I have reviewed on my website: http://www.themichaelblank.com/ira. For a limited time, John is offering this course and the live conference footage (discussed in this episode) for only $1,197 (Regular Pricing: $2,391).

Key Takeaways:

[3:42] An IRA is the biggest loophole out there.  The best way to deal with income is to make it not taxable to begin with. 

[10:59] Roth IRA VS a traditional IRA

[11:33] It’s much better to be taxed on the seed now then the crop later.

[12:02] Self-directed 401K’s are superior to traditional IRA

[12:15] The value/importance Health Saving Accounts (HSA) and Coverdell Education Savings Accounts (CESA) are often underestimated.

[14:30] Why you should set up an HSA TODAY

[15:39]- why 401K’s are “infinitely superior” to IRA’s. Penalties for prohibited transactions are MUCH worse for an IRA.

[19:45] The power of tax-free investing.  

[26:26] Prohibited transitions in IRAs- what makes them so scary. Don’t just be conservative, be Paranoid.

[33:32] Statue of limitations on prohibited transactions (NEW)

Mentioned in this interview:

IRA Investing: Review of the Tax Litigators Guide to Tax-Free IRA, HSA & CESA Wealth by John Hyre- Special Limited Time Offer:  Buy  the course + live conference for just $1,197 (Regular Pricing: $2,391)

Purchase here: http://www.themichaelblank.com/ira

Connect with John

Iralawer.com

Realeastatetaxlaw.com

Bookkeeping is often an overlooked, underappreciated part of business for new investors. However, if you don’t understand your books and your business entity you are probably losing a lot of money, and not just during tax time.

John Hyre is an Attorney, accountant and real estate investor, (in that order according to him), and he was kind enough to join me on the podcast to talk about choosing and maintaining a business entity and the importance of keeping your books the right way. John even has a class on both topics, and the two can be purchased together here for just $499: www.themichaelblank.com/hyer

The information packed into this episode can save you a lot of pain, suffering and money.

 Key Takeaways

[3:10] Biggest mistake that business owners make is the failure to document. If you can’t prove it, you can’t claim it.

[4:35] Use Quickbooks instead of Quicken. Reason; Real estate investing is a balance sheet intensive business and Quickbooks is better suited for that than Quicken.

[5:45] Doing your books the right way saves you money on the front and back end. It lowers your overall tax bill and saves your accountant time, and therefore you money.

[6:07] The books tell you how the business is doing. If you’re not keeping them correctly, you probably don’t know how your business is actually doing.

[6:42] You can delegate bookkeeping, but you need to know about what goes into the books and what you should see to know that whoever is doing it, is doing them correctly.

[9:03] The best insurance against an IRS audit is the bookkeeping and record keeping.

[10:01] Pay your kids to do work for you like scanning receipts. It’s a tax write-off and the money stays in the family. (More on this later in the episode).

[12:03] An LCC is like life insurance.  You want it if you need it, but you want to keep the probability of needing it as low as possible.

[13:50] You can avoid a lot of lawsuits by being nice to people.

[14:41] Entities are like children; Fun and easy to make but a lot of work once you got one.

[15:00] The #1 way to destroy an entity is to co-mingle money.

[16:40] Generally the best entity to use for apartment building investing is an LLC

[20:08] Once you involve someone who you are not married to as a partner, you will want a lawyer to write a customized operating agreement. Don’t use a template.

 [27:28] If you want a court to treat your LLC like a business, you need to treat it like a business.

[28:18] Rules & guidelines for paying your kids.

[46:32] Trust law is much more complicated than entity law.

Mentioned in this episode:

Entity Selection Course, Bookkeeping course: www.themichaelblank.com/hyer

-purchase for 299 each or 499 together

Iralawer.com

Connect with John

Iralawer.com

Realeastatetaxlaw.com

It’s never too early to get started.

This week I’m joined by John Cohen who is just 29 years old and is the President of JC Property Group Inc., a company he formed in early 2013. John played college baseball and graduated with a degree in Economics from Queens College. Fresh out of college John started a job as a stock broker at Morgan Stanley and quickly realized that it wasn’t the path for him.

He switched his focus to real estate and quickly found that making money on tax deed properties wasn’t as easy as he’d hoped. He then joined Marcus & Millichap and became a successful commercial broker, all the while buying properties for himself, before leaving the company to focus 100% of his time on the growth of his company.

Key Takeaways:

[6:03]- The moment John realized that finance wasn’t what he wanted to be doing.
[9:23] People say they want to become a millionaire and retire early, but they don’t really decide that’s what they are going to do.
[9:48] How John got into tax deeds without knowing what he was doing and purchased two worthless pieces of land.
[16:04] John’s tax deed properties strategy
[17:45] Transitioning from tax deed buys to multifamily units
[23:52] Getting that first deal
[30:10] Strategies and tactics to finding deals.
[34:00] Direct mail: it’s not what you write, it’s the consistency
[43:11] John’s biggest aha moment- Don’t take things for granted. You have to work for what you want.
[47:10] Best Habits: Get up early, do the hardest things first.
[48:18}- Best Resource- People. Reach out to people that can help you. Meet with them instead of calling. Call them instead of texting.
[49:44] You need to find a mentor. Don’t stop until you find that person.

Connect with John

Cell:
Email:

“Dream big but start small.”  Today, it doesn’t take much to get started in real estate investing and in this episode you will find out just how little it takes to get into your first multi-family unit.

I invited Keith on the show to discuss how he got into multifamily investing by moving into his first home he ever bought: a 4-plex. Over the years, Keith has added to his portfolio and is now a full-time investor.

Keith is the Founder of Get Rich Education to teach others about the life-altering power of investing, especially through real estate. He hosts of one of America’s top investing shows - Get Rich Education - with thousands of listeners in over 160 world nations. He’s heard everywhere from iTunes to iHeartRadio, and regularly hosts Kiyosaki Rich Dad Advisors as guests.

Key Takeaways:

[3:19] You CAN move to a location that you dream of living in instead of moving wherever there’s a job.

[9:00] Sometimes we need to “unlearn” before we can learn

[10:40] How Kieth Got started with an FHA loan (it’s still available TODAY)

[16:55] Forget about compounding, the key is Leverage

[22:09] What to look for to make sure you “buy right”   

[25:50] How to find the best listings

[29:16] What to look for in a property manager. What to look for in the “Interview process.”

[32:57] ROTI- “Return on Time Invested” is a metric you need to think about when it comes to self-managing your properties.

[35:32]  Advise from Keith. If he could do it all over again, what would he do differently?

[38:57] How to think about debt: Outsourcing to tenants.

 Mentioned in this interview:

Mentioned in this interview:

Favorite books:

1] Rich Dad Poor Dad: Rich Dad Poor Dad- by Robert Kiyosaki

2] Loopholes of Real Estate- by Garrett Sutton

Online resources: www.16personalities.com

Connect with Keith:

ww.getricheducation.com

Keiths Podcast: Get Rich Education - https://itunes.apple.com/us/podcast/get-rich-education-keith-weinhold/id927263663?mt=2

 http://traffic.libsyn.com/michaelblank/MB_034-_Do_THIS_to_Get_Into_Your_First_Multifamily_Deal_-_With_Keith_Weinhold.mp3

Michael gets a lot of interest from all of you international investors who want to invest in the U.S. but there are a lot of questions that need to be answered before you can close that first deal. Like, what do I need to set up? Can I invest in apt buildings and if so, how? What are the tax considerations?

In this episode, Michael is joined by Reed Goossens, who answers those questions and more!

Reed is from Australia and moved to the US 4 years ago. He's a civil engineer by trade but wanted to get out of the rat race and started to invest in multifamily properties in the U.S.  But he faced all kinds of difficulties investing here as a foreigner but finally figured it out. Now he's looking for apartment building deals all over the U.S. He hosts a podcast called " Investing In The U.S. - An Aussie's Guide to U.S. Real Estate" where he teaches people how to invest in the U.S. from abroad.

Connect with Reed:

Website: http://www.rsnpropertygroup.com/

Email: reed@ rsnpropertygroup.com

Podcast: https://itunes.apple.com/us/podcast/investing-in-u.s.-aussies/id1071004776?mt=2

 http://traffic.libsyn.com/michaelblank/MB_033_-_The_Definitive_Guide_to_Investing_in_the_U.S._From_Abroad_With_Reed_Goossens.mp3

Michael welcomes to the podcast Nav Athwal, the founder and CEO of RealtyShares. RealtyShares is one of the oldest and largest companies out there in the relatively new and exciting market of real estate crowdfunding.

Nav has drawn from his diverse and impressive background to build RealityShares into a market leader. Nav was once worked an electrical engineer, then for a raw land developer and then became a land-use attorney before starting RealtyShares from his living room! It’s not in his living room anymore. RealtyShares has now raised almost 150 million with a diverse set of operators located in over 60 markets!

Most of us are pretty aware of the basics of crowdfunding and the advantages it creates in the marketplace. So instead of painting in broad strokes, Michael and Nav get into the nuts and bolts of RealtyShares and what that means to you, the listener. In this show they cover the following:

• Investor qualifications – (these standards may be loosened soon)
• Investing minimums
• Investing opportunities
• Raising capital through real estate crowdfunding
• RealtyShares ability to provide the ENTIRE capital stack
• Preferred Returns
• And much, much more

RealtyShares  Website: www.realtyshares.com

RealtyShares contact info:

Email: contact@realtyshares.com

Twitter: @realtyshares

Nav Athwal contact info:

Email: nav@realtyshares.com

Twitter: @navathwal

Listen in as national speaker and educator John Bowens teaches how to use your investors' IRA accounts to invest in your multifamily apartment deals. Learn what to do and what not to do and how to explain it in simple terms so that your investors say YES to investing in your deals!

In this episode I interview real estate investor Joe Fairless as he describes his journey from just a few rental properties to his first apartment building deal, a whopping 168-unit property -- what an awesome story I know you'll enjoy and learn tons from!

Join me as I talk with Kaveh Shirazi about how he launched his commercial real estate investing career right out of college and on someone else's dime. So we much we can learn from this young investor!

In this episode I jam with aspiring commercial real estate investor Scott Isley as we discuss techniques for raising money and structuring the deal. 

Having trouble finding good apartment building deals? In this episode we'll talk about the SINGLE best way to find deals. We'll also talk about how to look for deals and build your team outside your own area. Get out your pen and paper and let’s get started!