Financial Freedom with Real Estate Investing

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

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

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

Key Takeaways

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

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

How we dialed in our criteria for deals at Nighthawk Equity

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

The benefits of collocating deals in just a few markets

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

How we select markets at Nighthawk Equity

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

How Garrett builds rapport with brokers

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

How Garrett recovers from the disappointment of losing a deal

  • Channel hurt into next quest
  • Commit to process

How we landed our current deal in Atlanta

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

Garrett’s system for staying in touch with brokers

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

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

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

Connect with Garrett Lynch

Garrett at Nighthawk Equity

Resources

Learn More About Michael’s Mentoring Program

Submit a Deal to the Michael Blank Deal Desk

Access Michael’s Syndicated Deal Analyzer

Join the Nighthawk Equity Investor Club

LoopNet

CREXi

National Multi Housing Council

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

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

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

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

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

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

Key Takeaways

My recent experience with a health crisis

  • Heart attack on July 28, 2020
  • 100% blockage in main artery

How the health emergency forced me to rethink my priorities

  • Value health and family above all else
  • Affirmed mission (financial freedom with multifamily)

My advice on getting your affairs in order NOW

  • Set up revocable trust and life insurance
  • Structure entities so controlled by trust
  • Document where to find important info

Two powerful exercises for getting clarity in your life

  • 6 months to live
  • Perfect Day

Resources

Deal Maker Live

Dave Ramsey

Michael’s First Deal Maker Award Recipients

Michael’s Financial Freedom Hall of Fame

Garrett Sutton

Brandon Turner

The Miracle Morning: The 6 Habits That Will Transform Your Life Before 8AM by Hal Elrod

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_230.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

We’re told that our goals have to be time-bound. That we have to give ourselves a deadline if we want to achieve. The problem with that is too many of us quit three feet from gold, as the saying goes. But how do you stay committed when a year has gone by and you still don’t have your first multifamily deal?

David Acosta was a mentoring student in The Michael Blank Investor Incubator. With no money and no background in investing, David leveraged his mentor, Drew Kniffin, and our Deal Maker’s Mastermind investor network to partner on his first venture, a 220-unit deal orchestrated by Ben Risser’s team. Six months later, David closed on a 48-unit deal in Lexington, KY, this time serving as lead syndicator!

On this episode of Apartment Building Investing, David joins me to discuss how he did his first multifamily deal—without any money or previous real estate experience. He explains how having a mentor helped him build confidence and stay committed when his first deal took a few months longer than expected. Listen in for David’s insight on partnering with others to earn credibility and learn why it’s crucial to commit to the outcome you want, not the timeline.

Key Takeaways

What prompted David’s interest in multifamily investing

  • Background in restaurants, wanted to control time
  • Real estate investing research led to TMB course

What made David think he could skip SFH investing

  • Mentor to look over shoulder through process
  • Took course to get educated + build confidence

Why David felt having a mentor was the right choice for him

  • No background in real estate (shorten timeline)
  • Invest in education to be taken seriously

David’s frustration with missing his 12-month goal

  • Deflating to fall short, temptation to walk away
  • Mentor encouraged to commit to goal vs. timeline

How David finally found his first deal

  • Connect with others in Deal Maker Mastermind
  • Partner as GP with another investor’s team

How the Law of the First Deal worked for David

  • Competitive advantage in closing second deal
  • Had confidence to serve as lead syndicator

What’s next for David as a real estate investor

  • Build out team, efficiencies in processes
  • Scale and grow business from there

David’s advice for aspiring multifamily investors

  1. Develop persistence to commit to outcome
  2. Get educated and consider hiring mentor
  3. Join an ecosystem, JV to build track record

Connect with David Acosta

Acosta Capital

David on LinkedIn

David on Instagram

Resources

Purchase the Replay of Deal Maker Live

Learn More About Michael’s Mentoring Program

Check Out Michael’s First Deal Maker Profiles

Explore Michael’s Products & Programs

Connect with Other Investors in the Deal Maker’s Mastermind

Ed Hermsen on Apartment Building Investing EP225

Drew Kniffin at Nighthawk Equity

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

Ben Risser on Apartment Building Investing EP102

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_229.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Despite the disruption of COVID-19, multifamily investors are still doing deals. The question is, HOW? What’s working right now to get deals done? What isn’t? What are real people doing to find success in today’s market environment?

On this episode of Apartment Building Investing, I’m handing the mic over to Drew Whitson to moderate a discussion with our mentoring team, Todd Dexheimer, Brad Tacia, Phil Capron and Matt Brawner, on what’s working now to get deals done. We explain how our mentoring students are leveraging the COVID pause to build relationships and how the balance of power has shifted among syndicator, buyer and broker in recent months.

We go on to explore the benefit of a strong relationship with your property manager and how underwriting has changed in light of the pandemic. Listen in for insight into what makes multifamily the strongest asset class in real estate and learn the ONE thing our most successful students are doing right now to get deals done.

Key Takeaways

What Matt’s most successful students have done in 2020

  • Leverage pause in market (Seinfeld time)
  • Use time to build relationships with brokers

What Phil’s students are doing to acquire multifamily properties

  • Worry about ‘making it to next meal’
  • Figure out how to become viable buyer

Todd’s advice on how to talk to investors right now

  • Continue to educate and keep investors informed
  • Overcommunicate to build relationships

How Brad is coaching his students around underwriting

  • Network with mortgage broker re: what’s changed
  • Modify SDAs to ensure accurate underwriting

How running a property management firm informs Matt’s underwriting

  • Understanding of street rent and how units operate over time
  • Haven’t cut back on rents but less aggressive with rent bumps

How underwriting has changed in light of the COVID pandemic

  • Build in more time for rent growth
  • Consider changes in rental laws by market

What makes multifamily the strongest asset class in real estate

  • Performs well through economic disruption
  • Lockdown led to desire for nicer apartment

The one thing our most successful students are doing right now

  • Willing to make mistakes by doing
  • Get out there and build relationships
  • Analyze deals (still numbers game)
  • Willing to partner to gain experience
  • Take consistent action every day

Connect with Drew, Todd, Brad, Phil & Matt

Drew Whitson

Todd Dexheimer

Brad Tacia

Phil Capron

Matt Brawner

Resources

Learn More About Michael’s Mentoring Program

Purchase the Replay of Deal Maker Live

Pillars of Wealth Creation Podcast

Garrett Lynch

CoStar

Rentometer

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_228.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Our world is in upheaval. Between COVID-19 and the current riots, nothing feels normal. And this has a lot of investors asking, is now the right time to pursue multifamily?

On this episode of Apartment Building Investing, I’m sharing my keynote address from Deal Maker Live 2020 on the current state of multifamily. I describe how multifamily is weathering the storm, explaining why it’s actually EASIER to raise money right now and why now IS the right time to invest in apartment buildings.

Listen in for insight around how to adjust your underwriting in the current economic environment and get my advice on what you SHOULD be doing right now to achieve financial freedom!

Key Takeaways

How multifamily is performing right now

  • Similar to 2008, deep quiet under storm
  • Collections surprisingly consistent

Why it’s easier to raise money in the current economic environment

  • Investors frustrated with volatility of stock market
  • Opening to discuss multifamily as alternative

When it’s the best time to invest in multifamily

  • Never going to be perfect time
  • Start working toward financial freedom NOW

How investors should adjust their tactics right now

  • Be smart about underwriting (↑ reserves, ↓ rent growth)
  • Avoid hard deposit, incorporate financing contingencies

What multifamily investors SHOULD be doing right now

  • Stay calm and stay the course
  • Remember your WHY
  • Keep momentum going

Resources

Purchase the Replay of Deal Maker Live

Learn More About Michael’s Mentoring Program

Join Michael’s Deal Maker’s Mastermind

Join the Nighthawk Equity Investor Club

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_227.mp3
Category:Commercial Real Estate -- posted at: 5:09pm EDT

The black swan event financial pundits predicted has arrived in the form of the Coronavirus pandemic. But how, exactly, will the crisis play out in the markets? What does it mean for us as real estate investors? And what can we do to understand the changing reality, protect our wealth, and even capitalize on hidden opportunities?

Russell Gray is the cohost of The Real Estate Guys Radio Show, a podcast and platform dedicated to helping investors stay focused, motivated and informed. A financial strategist with 30-plus years of experience in business, investing, mortgage lending and financial services, Russell provides unique and practical insights that support entrepreneurial investors in growing and protecting their wealth through real estate and real asset investing. He is also the coauthor of Equity Happens: Building Lifelong Wealth with Real Estate.

On this episode of Apartment Building Investing, Russell joins me to share his take on the bigger story behind the pandemic, explaining how the government bailout will impact the value of the US dollar and its status as the world’s reserve currency. He walks us through the real estate strategies he likes right now, describing the benefit of investments that qualify as both REAL and ESSENTIAL. Listen in for Russel’s insight on protecting your wealth in a crisis and learn what YOU can do to adapt to the circumstances and thrive through a challenging time!

Key Takeaways

Russell’s take on the biggest story behind the Coronavirus

  • Debt crisis on horizon (more vulnerable now than 2008)
  • Potential for currency crisis as Fed continues to print $

Russell’s insight around the indicators that the dollar is weak

  • Dollar exhibits weakness against other currencies
  • All currencies exhibit weakness against precious metals

The consequences of the government’s Coronavirus bailout

  • High risk of inflation
  • Devaluation of dollar

How to protect your wealth from inflation, deflation and stagflation

  • Store in alternate form of liquidity like gold to preserve value
  • Invest in real assets (i.e.: real estate in resilient market)

Why now is a good time to be a real estate investor

  • Printing money favors debtor
  • Real estate = ultimate vehicle to short dollar

The right and wrong way to measure your net worth

  • Assets – liability = wrong way
  • Liquidity + positive cashflow = right way

What real estate strategies Russel likes right now

  • Things that are REAL and ESSENTIAL
  • Residential, energy, healthcare and distribution

Russell’s advice for investors taking a wait-and-see approach

  • Don’t wait for someone else to find best deals before you
  • Look for real estate (real asset) in resilient markets

Connect with Russell Gray

The Real Estate Guys

Email crisis@realestateguysradio.com for the Crisis Investing Webinar

Email silverseries@realestateguysradio.com for the Silver Series

Email preciousequity@realestateguysradio.com for the Precious Equity Tutorial

Resources

Purchase the Replay of Deal Maker Live

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Peter Schiff

Robert Kiyosaki

Reuters Article on the Dollar Index

Ken McElroy

Equity Happens: Building Lifelong Wealth with Real Estate by Robert Helms and Russell Gray

FRED Index on the Purchasing Power of the Consumer Dollar

Jim Rohn

Chris Martenson at Peak Prosperity

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_226.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

According to the Law of the First Deal, a multifamily investor who buys their first apartment building will do their second and third deals in rapid succession, achieving financial freedom in just a year or two. But there is an exception to every rule, and Ed Hermsen is the ONE investor I know who did his first deal—and then life got in the way. So, what can he teach us about keeping momentum and staying committed to our multifamily goals?

Ed grew a portfolio of single-family rentals while working as a mortgage loan officer in Fort Collins, Colorado. Five years ago, he started studying multifamily and eventually partnered with a close friend on a 22-unit deal in Pensacola, Florida. After revisiting his goal to retire by 50, Ed realized he needed to recommit to multifamily, and in the last two years, he has leveraged the partnership model to build a portfolio of 210 units and quit his job with real estate!

On this episode of Apartment Building Investing, Ed joins me to describe how a 9-to-5 in mortgage banking inspired his real estate investing career and share his secrets to successful multifamily investing with partners. He discusses what made him the sole exception to the Law of the First Deal, explaining why there’s a four-year gap between his first and second deal and what finally inspired him to get back in the game. Listen in for Ed’s insight on the value of accountability and learn what YOU can do to stay committed to your multifamily goals.

Key Takeaways

How Ed got into real estate

  • Work in mortgage banking exposed to wealth-building potential
  • Bought SFH rental every year to build portfolio of 10

What inspired Ed to pursue financial freedom with multifamily

  • Never off clock, have to take calls (even on vacation)
  • Rely on real estate agents + economy for livelihood

Ed’s first multifamily deal

  • Friend found 22-unit in Pensacola, FL in 2015
  • Bought for $740K, valued at $1.5M now
  • No distributions first year (units in bad shape)
  • Challenge to manage vendors from afar

Ed’s second multifamily deal

  • Purchased 88-unit in Wyoming with 3 partners
  • Lead from attorney handling family dispute
  • Great loan from local bank, refinancing now

How Ed found his partners

  • Kids go to school together
  • Clients from mortgage business

Ed’s insight on building successful partnerships

  • Accountability and clear division of labor
  • Invest in attorney to do operating agreement

What made Ed the exception to the Law of the First Deal

  • Went back to buying fourplexes
  • Fell back into 9-to-5 routine

Ed’s advice around staying committed to your multifamily goals

  • Write down goals and revisit every morning
  • Build in accountability with mentor or coach

Ed’s latest multifamily deal

  • Bought 100-unit deal in Tulsa, OK with 2 partners
  • Establish relationships with local bank and realtor
  • Must follow housing authority rules

What’s next for Ed

  • Put 22-unit on market
  • Look for deals in Oklahoma
  • Learn more about syndications

Ed’s advice for aspiring multifamily investors

  • Build good team
  • Get educated on markets
  • Get first deal done

Connect with Ed Hermsen

Email edhermsen14114@gmail.com

Resources

Purchase the Replay of Deal Maker Live

Learn More About Michael’s Mentoring Program

Fellowship of Christian Athletes

Hal Elrod

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

The Ultimate Guide to Buying Apartment Buildings with Private Money

Syndicated Deal Analyzer

BiggerPockets

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

LoopNet

CREXi

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_225.mp3
Category:general -- posted at: 1:00am EDT

Investing in the financial markets is stressful, especially in a crisis. And even if you happen to be brilliant at options trading, $100K in the equity market will still only buy $100K in assets. On the other hand, investing $100K in multifamily will buy you a $500K asset—and earn you five times the return. Not to mention the fact that it’s essentially recession-proof!

Bruce Fraser is the Managing Partner at Elkhorn Capital Partners, a private equity firm that focuses on multifamily residential real estate in economically insulated submarkets. Prior to Elkhorn, Bruce ran a lucrative hedge fund, successfully navigating the financial crisis before his research led him to multifamily. In a few short years, Bruce has built a portfolio of 1,600 units, and he currently serves as a member of the Forbes Real Estate Council.

On this episode of Apartment Building Investing, Bruce joins me to explain what makes multifamily a better investment than the financial markets, especially through the COVID-19 crisis. He tells us about his first multifamily deal (as one of my early coaching students!), discussing the challenges he faced early on and describing how the Law of the First Deal impacted his real estate career. Listen in for Bruce’s insight on the advantage of choosing a niche in distressed assets and learn his aggressive but realistic approach to scaling a multifamily business.

Key Takeaways

What makes multifamily a better investment than the financial markets

  • S&P 500 = 2.5% average annual return over last 20 years
  • Multiplier effect ($100K buys $500K asset, earn $100K vs. $20K)

Bruce’s first multifamily deal as one of my early coaching students

  • 134-unit property in Fort Worth
  • $5.7M acquisition (raise $2.1M)
  • Sold 14 months later for $7.9M

Bruce’s experience with the Law of the First Deal

  • Second deal under contract when first closed
  • Acquire 3 to 4 per year ever since

Why Bruce chose a niche in distressed situations

  • More control over occupancy growth than rent growth
  • Create much more substantive equity in short period

Why Bruce sought out coaching early on

  • Overcome uncertainty
  • Understand deal structure

Bruce’s approach to scaling a multifamily business

  • Manage time wisely (leverage third-party property manager)
  • Be aggressive but realistic

Bruce’s experience through the COVID crisis

  • Investors ready to buy and deals available
  • Biggest challenge = lending environment

Bruce’s goals over the next three years

  • Double portfolio to 2K to 3K units
  • Centralized position in handful of markets

Why multifamily is the best investment through the pandemic

  • Tax efficient distributions
  • Demand for apartments remains high
  • Protects against inflation

Connect with Bruce Fraser

Elkhorn Capital Partners

Email bruce@elkhornpartners.com

Resources

Goldman Sachs Economic Outlooks

Purchase the Replay of Deal Maker Live

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_224.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

There are tons of books out there that teach you how to invest in real estate syndications with other people’s money. But what if you’re the ‘other people’? What resource teaches you how to evaluate opportunities and pick the right sponsor to trust with your money?

Brian Burke is the President and CEO of Praxis Capital, a private equity investment firm that focuses on repositioning multifamily properties. An expert real estate syndicator and investor, he has acquired 3,000 multifamily units and 700 single family rentals in his 30-year career. Brian is also the author of the new book, The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications.

On this episode of Apartment Building Investing, Brian joins me to explain why passive investors need to look beyond returns when comparing syndication opportunities. He discusses why the sponsor is a more important consideration than the market or the deal itself, sharing the cautionary tale of an investor who lost her life savings to an unethical syndicator. Listen in for Brian’s insight on the benefit of investing in a non-correlated asset like real estate and learn what questions to ask as you evaluate different investing opportunities.

Key Takeaways

The cautionary tale Brian included in The Hands-Off Investor

  • Grocery clerk sold fourplexes to invest in TIC syndication
  • Sponsor ran off with money and she lost life savings

The three indicators used to measure the performance of a real estate investment

  1. IRR
  2. Cash-on-cash return
  3. Equity multiple

Why passive investors must look beyond returns when comparing opportunities

  • Sponsor can manipulate what forecasted cashflows will be
  • Look at what’s behind numbers to determine if reasonable

Why the sponsor is more important than the market or the deal itself

  • Bad sponsor can ruin good investment in great market
  • Take time to determine moral character, track record

What secrets sponsors don’t want passive investors to know

  • Hidden asset management fees
  • Treatment of bad debt
  • How distributions made

The pros and cons of being a passive investor in multifamily syndications

  • Professional edge (make more money working with expert)
  • Give up control, can’t exit if don’t like what’s happening

The benefit of investing in non-correlated assets like real estate

  • Drop in stock market unlikely to impact real estate
  • Reduces any single point of failure in portfolio

Brian’s advice for skeptical investors looking at multifamily real estate

  • Look at where world’s wealth made
  • Minimize risk with balanced portfolio

Connect with Brian Burke

Praxis Capital

Praxis Capital on LinkedIn

Praxis Capital on Facebook

Praxis Capital on Twitter

Praxis Capital on Instagram

Resources

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

Brian on Apartment Building Investing EP005

Purchase the Replay of Deal Maker Live

Join the Nighthawk Equity Investor Club

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

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_223.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

In the world of startups, entrepreneurs take a lean approach early on with an eye to grow quickly. Ellie Perlman applied these principles to real estate, building and scaling a syndication business in a few short years. So, how do you shift from being a syndicator to managing a syndication business?

Ellie is the Founder and CEO of Blue Lake Capital, a real estate investing firm that specializes in value-add multifamily acquisition and management. She also leads REady2Scale, a mentoring program for aspiring multifamily syndicators, and hosts the REady2Scale Podcast. Ellie began her career as a commercial real estate lawyer and later transitioned to the role of property manager, overseeing properties worth more than $100M. She earned her MBA from the MIT Sloan School of Management.

On this episode of Apartment Building Investing, Ellie joins me to explain how growing up poor in Israel gave her the drive to succeed and share her journey from cleaning synagogues to earning an MBA from MIT. She discusses the decision to start her own real estate business, describing how multifamily syndication fulfilled her vision to both scale quickly and earn passive income. Listen in for Ellie’s insight on the magic of scaling a startup and get her advice on how to grow YOUR real estate business—even if you don’t have a budget!

Key Takeaways

How Ellie developed the drive to succeed

  • Cleaned synagogues as poor child in Israel to help family
  • Sent to youth village at 15, wanted better for own kids

What inspired Ellie to go to law school

  • Married at 18, working 3 jobs to provide for husband
  • Saw education as ticket out of ‘survival mode’

How Ellie developed an interest in real estate

  • Exposed to deals in international real estate department of law firm
  • Transitioned to property management to understand business side

What brought Ellie to the United States

  • Pursue MBA at MIT to learn how to start companies
  • Aunt had moved to US and achieved success

Ellie’s decision to go into business for herself

  • Desire to fulfill potential as self-made woman
  • Scarier NOT to try than to try and fail

Ellie’s insight on the power of believing in yourself

  • Causes to act in way that sets up for success
  • Changes other’s perception of who you are

Ellie’s big vision for building a real estate company

  • Reverse engineer plan based on net worth goal at age 50
  • Multifamily met requirements for scale, passive income

What Ellie would tell her younger self

  • Don’t listen to doubters + keep going
  • People project their own fear on you

How Ellie thinks about potential discrimination in real estate

  • Focus on what CAN change and improve self
  • Not productive to get stuck in victim mode

Why Ellie started a training program and podcast

  • Build relationships with potential investors
  • Learn something new to implement in business
  • Rewarding to see other people succeed

Why Ellie is an advocate for scaling your business

  • Burn out when try to do all on own
  • Magic in scaling to grow + grow quickly

Ellie’s advice for building and scaling a syndication business

  • Map out business want to create and define roles
  • Choose area of focus, partner or outsource rest

How to build a syndication business on a small budget

  • Hire intern through Handshake
  • Pay small stipend or offer equity

Connect with Ellie Perlman

Ellie’s Website

Email ellie@ellieperlman.com

REady2Scale Podcast

REady2Scale Mentoring Program

Blue Lake Capital

Resources

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

Register for Deal Maker Live

Join the Nighthawk Equity Investor Club

BiggerPockets

Upwork

Handshake

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_222.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Doing something monumental like moving your family across the ocean to Hawaii or buying a 100-unit apartment complex may feel overwhelming. But Brandon Turner has done both of those things, and he contends that any process is easy IF you break it down into a series of tiny actions that take five minutes or less.

Brandon is the Founder of Open Door Capital, Vice President of BiggerPockets and Cohost of The BiggerPockets Podcast. He owns more than 500 rental units totaling $20M and has dozens of rehabs under his belt. Brandon’s work has been featured in Forbes, Entrepreneur and Money Magazine, and he is the author of several books, including The Book on Rental Property Investing and How to Invest in Real Estate.

On this episode of the podcast, Brandon joins me to share his assessment of the impact of COVID-19 on real estate investing, explaining how we should adjust our underwriting in light of the pandemic. He walks us through his favorite investing strategies right now, describing the opportunities he sees in real estate over the next 10 years. Listen in to understand the marketing techniques Brandon uses to raise LOTS of money online and get his advice on developing a clear VISION of where you want to be—and taking tiny action each day to get there!

Key Takeaways

Brandon’s assessment of the impact of COVID

  • Depends on whether second round of virus triggers another shutdown
  • 85% confident pandemic will be interesting memory in 6 months

How real estate investors should adjust their behavior right now

  • Less optimistic in underwriting (don’t count on raising rents in Year 1)
  • Good time to revisit fundamentals, be more conservative

The opportunities Brandon sees over the long term

  • Migration to South as more and more people reach retirement age
  • Invest in mobile home parks, senior living and low-income multifamily

How this economic crisis differs from the last recession

  • Last downturn CAUSED by shady practices in real estate
  • Less impact on real estate this time (except vacation rentals)

Brandon’s favorite real estate strategies right now

  • House hacking good for new investors
  • Rehab or value-add (BRRRR method)
  • Mobile home parks

Brandon’s insight around COVID’s impact on low-income earners

  • Still paying rent at mobile home parks
  • Government won’t allow economy to fail

BiggerPockets’ most successful marketing strategies

  • Build trust and credibility with content (blog, podcast)
  • Make money as software company, not education

How Brandon uses content marketing in his investing business

  • Build trust and credibility at scale with content
  • Leverage video to raise money, send thank you letters
  • Focus on growing Instagram audience (125K followers)

How Brandon architects his life around his family and business

  • Develop clear vision of success, know where want to be
  • Keep asking, ‘What’s the next little tiny step?’

Connect with Brandon Turner

Open Door Capital

Brandon on BiggerPockets

Brandon on Instagram

Resources

Join Michael’s Investor Incubator Mentoring Program

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

Register for Deal Maker Live

Join the Nighthawk Equity Investor Club

Syndicated Deal Analyzer

Joe Fairless

Loom Video Messaging

The Book on Rental Property Investing by Brandon Turner

Bryce Stewart on BiggerPockets Podcast EP276

Vivid Vision by Cameron Herold

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_221.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

You may have heard the prediction that unemployment in the US could reach 30%, and that does sound scary. But what do those numbers really mean? And how would that worst-case scenario impact collections? What should we be concerned about as investors in affordable housing?

Damian Bergamaschi is the cofounder of Damris Capital, a money management firm that leverages data analysis to help its investors achieve financial freedom sooner. Damian leads Damris’ optimization research for all investment models and algorithms and serves as the portfolio manager of the firm’s real estate acquisitions.

On this episode of Apartment Building Investing, Damian joins me to explain how his obsession with data led to investments in commercial real estate. He discusses why affordable housing has been insulated from COVID-19, breaking down what the unemployment rate really means and how government subsidies have had a positive impact in the space. Listen in as Damian calculates projected collections in a worst-case scenario and find out why he is bullish on affordable housing as a reliable long-term investment.

Key Takeaways

The Damris Capital origin story

  • Idea to organize data, info from white papers
  • Test different asset classes by numbers

How Damian’s research led him to affordable housing

  • Devaluation of dollar = consistent long-term trend
  • Residential real estate most tax efficient way to invest indirectly in inflation
  • Add framework of Inflation Harvesting (layer on debt)

What we don’t understand about the unemployment rate

  • Many people have income despite being unemployed (e.g.: retirement, disability, etc.)
  • At 30% unemployment, 60% would still have income vs. 80% in normal circumstances

Why affordable housing is insulated from COVID-19

  • Government safety nets (stimulus checks, unemployment benefits)
  • More likely to pay for housing than discretionary expenses
  • Even in worst-case scenario, 70% collections projected

The adverse short-term impact COVID may have on affordable housing

  • Reductions for prepayment
  • Slightly lower collections
  • Credit card processing for online payments
  • Won’t raise rents for 12 to 18 months

Damian’s promising long-term outlook for affordable housing

  • Opportunity to raise rents at accelerated rate in 18 to 24 months
  • Consistent supply and demand in residential real estate
  • As cap rates contract, value of properties will expand

The cyclical nature of delinquencies and being paid up

  • Most caught up after tax return
  • Most delinquent after holidays

Why multifamily investors need to be thinking about September

  • Unemployment will start to hit caps (safety net goes away)
  • Renters may owe on taxes, not realizing UEB taxable

Connect with Damian Bergamaschi

Damris Capital

Resources

Join Michael’s Investor Incubator Mentoring Program

Register for Deal Maker Live

Join the Nighthawk Equity Investor Club

Damian’s Blog Post on Unemployment

Damian’s Blog Post on Mobile Home Park Investing

Damian’s Blog on Mobile Home Park Investing Performance Post-COVID

Inflation Harvesting

The Case-Shiller Home Price Index

US Bureau of Labor Statistics

Subprime Auto Loan Delinquency Statistics

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_220.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

No one knows exactly what will happen in the multifamily real estate market as the Coronavirus pandemic continues to unfold. But the heavy-hitters who have been in the game for a long time can predict, with relative certainty, which markets will thrive, when we’ll see new deal flow, and what the capital markets will look like over the next 12 months.

Michael Becker is a Principal at SPI Advisory and Senior Director of Mortgage Origination at Old Capital Lending. A 15-year veteran of commercial real estate banking, Michael has originated and managed portfolios in all the major asset classes. In the six years since he started investing in multifamily, Michael has acquired 10K units and currently manages a portfolio of 6K doors. He also serves as the Cohost of the Old Capital Podcast.

On this episode of Apartment Building Investing, Michael joins me to discuss the post-COVID new normal in multifamily real estate. He explains how the pandemic is impacting his business and offers insight around what the recovery might look like—and what that means for us as multifamily investors. Listen in for Michael’s predictions on multifamily capital markets and deal flow in the next twelve months and learn what you can do to be ready when the market turns!

Key Takeaways

How Michael’s career has evolved over the last several years

  • From 1K to 10K units in Dallas-Fort Worth and Austin
  • Start in workforce housing then sold old, bought new

How Michael was able to scale so quickly

  • Access to capital (JV with HNWI, shift to syndication)
  • Leverage technology for efficiency in raising equity

The biggest challenges Michael faced as he built SPI Advisory

  • Raise money + find deals while managing portfolio
  • Stay organized as scale (e.g.: send 1,200 K-1 forms)

Why Michael’s uses a third-party property management team

  • Geographically concentrated in certain area
  • No interest in accounting, HR or construction

How the pandemic is impacting Michael’s business

  • 5% delinquency on rents (4X normal rate)
  • Leasing only down by 15%

Michael’s predictions around the post-COVID recovery

  • Multifamily product used more than ever
  • Rent softening (how much depends on market)
  • Supply will constrict, new construction unlikely
  • Increase rental pool as people lose homes
  • Accelerating economic migration to Sun Belt

Michael’s predictions around post-COVID multifamily deal flow

  • Few deals in Q3, trickle in Q4
  • Steady stream of distressed deals starting in 2021

What the capital markets will look like for the next 12 months

  • No hard money, financial contingencies available
  • Challenging to get Fannie/Freddie loans
  • No bridge loans, personal guarantees required

What work Michael is doing on the acquisitions side right now

  • Active participant but don’t expect to buy until Q4
  • Aware of real-time data, ready when market turns

Where Michael sees his company going in the next five years

  • 10K units, continue transition to newer assets
  • Team runs day-to-day so Michael can travel

Connect with Michael Becker

Old Capital Real Estate Investing Podcast

SPI Advisory

Resources

Join Michael’s Mentoring Program

Register for Deal Maker Live

Join the Nighthawk Equity Investor Club

Michael Becker on ABI EP064

The Real Estate Guys Summit at Sea

Ken McElroy

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

Direct download: ABI_219.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

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

What kind of returns can a passive multifamily real estate investor expect? What if you could double your money in just five or six years? And pay little or nothing in the way of taxes?

Jan Larson spent 25 years in the high-stress world of semiconductor development, most recently working for Amazon. He had always been interested in real estate investing but did not want to deal with 3AM phone calls about clogged toilets. Five years ago, a colleague introduced him to a passive investing opportunity, and Jan was hooked. Today, he has invested in 28 multifamily deals involving 34 properties, and in January, Jan had enough passive income to quit his job.

On this episode, Jan joins me to discuss how his life has changed since he quit his job through passive investing in multifamily. He explains how living through the stock market meltdowns in 2000 and 2008 inspired him to diversify with apartment buildings, describing what he loves most about multifamily and sharing the returns passive investors can expect. Listen in for Jan’s advice on how to get started with passive investing and learn how he evaluates deals based on the sponsor and the submarket!

Key Takeaways

How Jan’s life has changed since he quit his job

  • High-pressure work in tech industry
  • Much less stress now

How Jan got started with passive investing

  • Introduced to multifamily by colleague
  • Steady deal flow snowball from there

Why Jan chose real estate over the stock market

  • Lived through meltdown of 2000 + 2008
  • Diversify to reduce exposure to market

What Jan loves about passive investing in multifamily

  • Not binary
  • ‘Set it and forget it’

What allowed Jan to invest in 28 deals in 5 years

  • Liquidated stock investments and Roth IRA
  • Rolled proceeds of sales into other deals

How refinancing a property benefits passive investors

  • % of investment returned (redeploy in new deal)
  • Cash-on-cash return of remaining = 25-30%/year

The returns a passive investor can reasonably expect

  • 8-10% cash-on-cash returns
  • Double money in 5 or 6 years

Jan’s insight around the tax benefits of multifamily

  • Depreciate faster with cost segregation
  • Haven’t paid any taxes on CoC returns

What Jan looks for in a multifamily deal

  • Trustworthy sponsor with track record
  • Submarket in particular + overall market

Jan’s advice for aspiring passive investors

  • Find Meetups to meet sponsors
  • Vet by talking to other investors

Jan’s top takeaway for potential passive investors

  • Multifamily investing gives options

Connect with Jan

Email jan.a.larson@gmail.com  

Resources

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_181.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

As multifamily investors, we’re all looking to build wealth and achieve financial freedom. The scary part is, we don’t have control over how much our money is worth. And as our government continues to print money with wild abandon and accumulate massive debt, the value of the US dollar declines. Yes, we’re smart to invest in physical assets like real estate to hedge against this kind of currency devaluation. But is there something else we could be putting our money in as an insurance policy of sorts? Something that increases in value as paper assets decline?

Dana Samuelson is the President of American Gold Exchange, a leading precious metals and rare coin company. A professional numismatist since 1980, Dana has been involved in a billion dollars’ worth of precious metals transactions. Brien Lundin serves as host of the New Orleans Investment Conference and Executive Editor of the Gold Newsletter, the oldest precious metals advisory in the world. With 40 years of experience, Brien is an expert in precious metals and mining share markets as well as the economic and geopolitical issues that impact them.

On this episode, Dana and Brien join me to explain why the average real estate investor should consider adding precious metals to their portfolio. They describe how gold serves as a counterbalance to paper assets and warn us about the accelerating devaluation of US currency. Dana and Brien also discuss the outlook for gold in the current economic climate, offering insight around the relationship between interest rates and the value of precious metals. Listen in to understand the process of buying gold and find out why it should be a part of your overall investment strategy!

Key Takeaways

Dana’s extensive background and experience

  • President of American Gold Exchange
  • 40 years in precious metals

Brien’s extensive background and experience

  • Executive editor of Gold Newsletter
  • Host of New Orleans Investment Conference

Why real estate investors should care about gold

  • Natural counterbalance to paper assets
  • Gold goes up when stocks, real estate go down
  • Global economy weakening in last 6 months
  • Took off in 2008 during crash (liquid asset)

Brien’s insight around currency devaluation

  • Central bankers print money with wild abandon
  • US $22.5T in debt, interest rates at global all-time lows
  • Forgiving debt = accelerates decline in value
  • Will need to borrow to pay interest in next few years

The outlook for gold in the current economy

  • ‘Gold loves cheaper money’
  • Bond yields plummeted in last 6 months
  • Fed forced to cut interest rates further

How interest rates impact the value of gold

  • Gold has no interest, must pay carrying cost
  • No burden to buy when interest rates low

The 3 ways to buy gold and other precious metals

  1. Paper trade via ETFs or GLD
  2. Invest in gold mining stock
  3. Physical gold dealer (sovereign minted)

When to invest in paper vs. physical gold

  • Paper good when confident in uptrend
  • Need physical as foundation (economic uncertainty)

The process of buying and selling physical gold

  • Call or visit reputable dealer to discuss
  • Pay current price + minting premium and dealer fee
  • Gold shipped and insured through FedEx or USPS
  • Store in safe, accessible place
  • Sell to any reputable dealer

Brien’s top takeaway around investing in gold

  • Precious metals are form of freedom
  • Insulate you from mismanagement of currency

Dana’s top takeaway around investing in gold

  • At least 5% to 10% of portfolio in gold or silver
  • Serves as insurance policy for rest of money

Connect with Dana

American Gold Exchange

Email info@amergold.com

Connect with Brien

Gold Newsletter

New Orleans Investment Conference

Resources

Real Estate Guys

Professional Numismatists Guild

Jim Blanchard

Investor’s Guide to Gold & Silver

Robert Kiyosaki

Peter Schiff

Michael’s Free Webinar

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_180.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

Too many aspiring real estate investors never take action because they’re waiting for the right time, or they’re holding off until they know EVERYTHING about multifamily. Spoiler alert: That’s never going to happen! So, what if you simply got prepared for the next few steps and moved forward?

Mauricio Ramos is Managing Member at de Medici Group, a multifamily investment firm based in San Antonio. He specializes in acquiring underperforming assets that can be repositioned to improve the quality of life for tenants and build wealth for investors. Mauricio spent ten years as a Project Manager in the commercial construction industry before leaving to pursue real estate full-time in 2016. To date, he controls $2M in assets and has a portfolio of 234 units across Texas.

On this episode of the podcast, Mauricio joins me to discuss how his life is different now that he’s a full-time real estate investor. He describes how a desire to travel inspired him to pursue passive income and explains how he got his start in mobile homes and single-family wholesaling. Mauricio also shares the impetus behind his transition to multifamily, offering advice around raising money for syndications. Listen in for creative strategies to find off-market deals and get Mauricio’s insight on taking the first step—and THEN figuring out your next move!

Key Takeaways

How Mauricio’s life is different now

  • Time freedom (work out during day, walk dogs)
  • Travel and go to seminars like Deal Maker Live

Mauricio’s background and experience

  • Grew up in Mexico, came to US on student visa
  • 10 years as civil engineer/construction manager

What inspired Mauricio to pursue passive income

  • Quit job for 40-day backpacking trip
  • Desire for freedom to pursue travel

Mauricio’s introduction to real estate

  • Colleague introduced to single-family rentals
  • Paid cash for mobile homes, wholesaled SFH

Mauricio’s first 10-unit multifamily deal

  • Sourced through direct mail campaign in 2017
  • Sold 18 months later for 159% ROI

Why Mauricio transitioned to multifamily

  • Scalability (10 SFH vs. 10-unit)
  • Able to analyze own deals with SDA

Mauricio’s second and third multifamily deals

  • Wholesaled 8-unit for 5-figure profit
  • Wholesaled 24-unit for 2X annual W-2 income
  • Used money for mentor, passive investment

Mauricio’s transition to multifamily syndications

  • Sponsored 16- and 32-unit deals in McAllen
  • Raise money from friends, family and coworkers

Mauricio’s advice to aspiring syndicators

  • Get educated on SEC compliance
  • Provide opportunity vs. ask for money

What’s next for Mauricio

  • Expand network with seminars, partnerships
  • Goal to grow 600-unit portfolio in 2020

Mauricio’s insight on off-market opportunities

  • Lack of creativity rather than deals
  • Rach out to brokers and take first step

How to proceed without a clear plan

  • Be prepared for next 3 steps
  • Confidence in resourcefulness

Connect with Mauricio

de Medici Group

Email mauricio@demedicigroup.com

Mauricio on Instagram

Multifamily: Invest Differently on Meetup

Resources

Grant Cardone

Deal Maker Live

Rich Dad Poor Dad by Robert T. Kiyosaki

The 4-Hour Workweek by Timothy Ferriss

National Real Estate Investor Association

Driving for Dollars on the App Store

Driving for Dollars on Google Play

Syndicated Deal Analyzer

The Ultimate Guide to Buying Apartment Buildings with Private 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

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_179.mp3
Category:Commercial Real Estate -- posted at: 11:55am EDT

Real estate investors are cautious when it comes to implementing a short-term rental (STR) strategy because of the regulatory uncertainty in the space and the extra expense of hotel taxes. But what if we could enjoy the benefits of an Airbnb model WITHOUT the uncertainty or the extra expense? Al Williamson leverages an extended-stay strategy targeted at business travelers to 10X his net income on a small multifamily property.

Al is a full-time real estate investor and Managing Partner of Easy Corporate Housing, an extended-stay STR housing solution for business travelers in Sacramento, California. He also serves as a speaker, author and mentor for investors through Leading Landlord, a platform designed to help landlords increase their income and equity. Al has developed creative strategies for growing NOI as much as 10X above a conventional landlord operation, and he shares those tactics in his books, Building Wealth with Inner City Rentals and 40 Ways to Increase the Net Income of Your Rental Property.

Today, Al joins me to explain how he quit his job as a civil engineer with the cashflow from an 8-unit property in an inner-city neighborhood. He describes how he went about fixing the neighborhood and discusses what inspired him to experiment with a short-term rental strategy. Al also shares how to determine your target market and walks us through the six types of extended stay customers. Listen in for insight around the benefits of offering 30-day stays and learn how to identify an ideal property for the extended-stay STR model! 

 

Key Takeaways

How Al quit his job with an 8-unit class D property

  • Reposition inner city neighborhood
  • Leverage pay-day rent schedule
  • Rent bicycles, coordinate internet

How Al got started investing in real estate

  • Started with house hack (3-unit building)
  • Maintenance costs eating up cashflow

Why Al purchased the 8-unit class D property

  • Value of 3-unit quadrupled, ‘let’s do it again’
  • Remove blight (gangs, guns and prostitution)

How Al went about fixing the neighborhood

  • Exercise leadership + create sense of community
  • Easy as calling in broken streetlights, parties
  • Offer cash for keys as necessary

What inspired Al to try a short-term rental strategy

  • Travel for work himself, hated hotels
  • Net income = 8 to 10X traditional model

How Al implemented a short-term rental strategy

  • Set aside single unit for business travelers
  • Realized benefits of one-month threshold

The best areas for an extended-stay, STR strategy

  • Near Extended Stay America, Residence Inn
  • Use Airbnb as backup plan

Al’s advice for determining your target market

  • List on Airbnb and see who comes
  • Build relationships with local businesses

The top 6 types of extended-stay customers

  1. Vacation travelers
  2. Medical
  3. Military
  4. Student housing
  5. Insurance
  6. Temporary

Why Al only needs a few units to be successful

  • Huge income per unit ($1800/month)
  • Single unit covers cost of mortgage

The ideal property for an extended-stay STR

  • Margin far above market rent
  • Furnish according to target guest

Connect with Al

Extended Stay Landlord

Leading Landlord

Al on BiggerPockets

Al on LinkedIn

Resources

Mr. Landlord

Building Wealth with Inner City Rentals: Success the Catalytic Landlord Way by Al Williamson

40 Ways to Increase the Net Income of Your Rental Property by Al Williamson

Tim Hubbard on ABI EP111

Michael’s Mentorship Program

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

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_178.mp3
Category:general -- posted at: 11:47am EDT

Advancements in technology allow us to access and analyze an incredible amount of data. But what does this mean for multifamily investors? Can we make use of tech tools to find off-market deals, for example? What if we could automate the underwriting process? How might machine learning facilitate market analysis?

Raj Tekchandani is the Founder and Managing Principal at Smart Capital Management, a real estate investment firm that focuses on the acquisition and management of value-add multifamily properties. Raj brings his significant experience in tech startups to his work as a full-time investor, leveraging data analytics, machine learning and artificial intelligence to identify strategic assets in emerging markets that provide high-yield returns.

Today, Raj joins me to explain how he got started in real estate, buying condos in Orlando to supplement his uncertain W-2 income. He discusses what inspired his transition to multifamily and shares his diverse experience as an active investor, passive investor, and capital raiser for syndication deals. Listen in for Raj’s assessment of the available tech tools for real estate and learn how he quit his job in startups to become a data-driven multifamily investor! 

Key Takeaways

What inspired Raj’s interest in real estate

  • Uncertainty of work in tech startups
  • Create second income stream

How Raj got started in real estate

  • Friend buying condos in Orlando (2012)
  • Purchased 9 of own for cashflow

Raj’s transition to multifamily

  • Reading about economies of scale
  • Decision to get more involved

Raj’s first multifamily investment

  • 15-unit in up-and-coming neighborhood nearby
  • Unexpected expenses, fired property manager

How Raj got into passive investing in multifamily

  • Continuing education in syndications
  • LP for 151-unit in Georgia

Why Raj decided to quit his job and do real estate full-time

  • Control own destiny, control own time
  • Bring passion for data analytics to real estate

What Raj is working on now

  • Partner with syndicator as capital raiser
  • ‘Full-time evangelist for multifamily’

The tech tools for real estate Raj is exploring

  • Reonomy for apartment ownership data
  • Enodo for underwriting multifamily deals
  • Building market analysis tools with Bay Area company

How Raj educates new real estate investors

  • Build trust through meetups and content
  • Walk through recent transaction
  • Serve as concierge through first deal

What Raj looks for in a multifamily operator

  • Trusted partners from mastermind network
  • Responsive to communication

Connect with Raj

Smart Capital Management

Email raj@smartcapitalmgmt.com

Data Driven Multifamily Investing Facebook Group

Resources

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

Syndicated Deal Analyzer

Meetup

Reonomy

Enodo

Nighthawk Equity

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

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_177.mp3
Category:Commercial Real Estate -- posted at: 12:16pm EDT

Are you settling for good enough? It’s easy to get comfortable with the way life is going and let complacency set in. But if you really want to achieve greatness, you’ve got to get comfortable being uncomfortable. Whether it’s your personal development OR your multifamily portfolio, meaningful growth happens OUTSIDE your comfort zone.

Andrew Kuhn is the founder and CEO of Kuhn Real Estate, a multifamily investment firm and property management company based in the Greater Detroit Area. He spent the last 14 years in a highly compensated medical device sales role before quitting his job just one month ago to pursue investing full-time! Andrew has been involved in real estate since 2006, building a robust single-family portfolio of 76 rentals. He transitioned to multifamily two years ago and has already closed six deals totaling 281 units. Andrew also serves as a mentor with us through the Michael Blank Investor Incubator.

Today, Andrew joins me to discuss his decision to quit a lucrative W-2 job and explain how he’s becoming a servant leader now that he’s achieved financial freedom. He describes what lights him up about mentoring new investors and shares some of his most influential teachers in the personal development and real estate space. Listen in for Andrew’s methodology around learning something new and find out what’s inspiring him to scale his multifamily portfolio to 20K units!

Key Takeaways

Andrew’s path to full-time investing

  • 13 years in SFH to grow portfolio of 76
  • Shift to multifamily 2 years ago (6 deals, 281 units)

Why Andrew struggled with the decision to quit his W-2 job

  • Highly compensated work in medical device sales
  • Need to define specific exit strategy

Andrew’s last day at his 9-to-5 job

  • Conducted training course
  • Many colleagues jealous, curious about investing

How Andrew’s life has changed since he quit his W-2

  • Working harder than ever to achieve 20K+ units
  • Involved in local organizations (servant leader)

What lights Andrew up about teaching others

  • Realize impact of prominent teachers in own life
  • Reinforce own learning + give back

Some of Andrew’s most influential mentors

How Rich Dad Poor Dad influenced Andrew

  • Light bulb moment re: passive income
  • Inspired move to Detroit for investing opportunities

Andrew’s methodology for mastering something new

  • Get educated and start networking
  • Get clear on goals, then follow up with ACTION

Andrew’s key takeaways from Deal Maker Live

  • Master online marketing to compete in space
  • Bookending day with productive habits (Hal Elrod)

What Andrew would do differently if he could go back

  • Transition to multifamily much sooner
  • Growth happens outside comfort zone

How Andrew is working to grow right now

  • Syndicating larger multifamily deals
  • Building out property management company

Andrew’s top AHA moments

  • Remove active and build passive income
  • Leave legacy of compassion, service and integrity

Connect with Andrew

Kuhn Real Estate

Email andrew.kuhn@kuhnrealestate.com

Andrew on LinkedIn

Resources

Seven Years to Seven Figures: The Fast-Track Plan to Becoming a Millionaire by Michael Masterson

Jim Rohn

Entrepreneurs’ Organization

Kyle Wilson

Zig Ziglar

Dale Carnegie

Robert Kiyosaki

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

Rich Dad’s CASHFLOW Quadrant: Guide to Financial Freedom by Robert T. Kiyosaki

Syndicated Deal Analyzer

Schon|Tepler

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

The E-Myth Real Estate Investor: Why Most Real Estate Investment Businesses Don’t Work and What to Do About It by Michael E. Gerber, Than Merrill and Paul Esajian

Books by Gino Wickman

Books by Verne Harnish

Strategic Coach

Building Wealth One House at a Time: Making it Big on Little Deals by John W. Schaub

Hal Elrod

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

Ed Mylett

The Second Mountain: The Quest for a Moral Life by David Brooks

The Richest Man in Babylon by George S. Clason

Michael’s Mentorship Program

Nighthawk Equity

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_176.mp3
Category:Commercial Real Estate -- posted at: 1:57pm EDT

Good deals are so hard to find right now! That’s become a common complaint among real estate investors in recent months, but I’m not convinced it’s true. In fact, if you’re willing to hustle and approach brokers with a service-first mindset, it’s fairly easy to find off-market multifamily deals.

Logan Freeman is a commercial real estate agent, investor, developer and capital raiser. He is also the founder of LiveFree Investments, a Kansas City firm specializing in joint ventures and equity partnerships that provides strong returns on capital from secure investments. Logan got his start in real estate doing a live-in flip back in 2013, and since then, he has completed 80-plus transactions and earns $13M for his investors annually.

Today, Logan joins me to explain why he was dreaming about real estate—even as he was being drafted for the NFL! He discusses the niche he has developed representing buyers and building his own portfolio, describing how he builds credibility with brokers by solving problems and adding value. Listen in for Logan’s What if? approach to real estate networking and learn how he is hustling to find off-market deals for his clients—and himself!

Key Takeaways

Logan’s path to real estate

  • Drafted for NFL but didn’t make team
  • Work to earn master’s degree (265 calls/day)
  • Learn self-worth not tied to outcomes

Logan’s introduction to real estate

  • Friends’ dads as mentors, owned rentals
  • Find way ‘to make money while you sleep’

How Logan got started in real estate

  • Live-in flips while working as consultant
  • Acquisitions for boutique investment firm

What inspired Logan’s transition to multifamily

  • Spreads starting to shrink in KC market
  • Decision to work smarter, not harder

Logan’s status as the go-to guy when people need to sell

  • Need in market to match buyers with properties
  • Source off-market deals via broker relationships

How Logan gets brokers to take him seriously

  • Build trust by solving problems
  • Don’t ask for fee (earn through buyers)
  • Underwrite properties + send feedback
  • Partner as necessary for track record
  • ‘Network your tail off’

What Logan’s excited about moving forward

  1. Creative strategies to buy off-market properties
  2. Marketing tactics to build personal brand
  3. Co-GP on self-storage, mobile home parks

Connect with Logan

LiveFree Investments

LiveFree on Facebook

LiveFree on Twitter

LiveFree on Instagram

Logan on YouTube

Logan on LinkedIn

Resources

Nighthawk Equity

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

TalentSmart

StrengthsFinder

Syndicated Deal Analyzer

Berkadia

Block Real Estate Services

CBRE Kansas City

David Goggins

CCIM

Stephen Covey

Mauricio Rauld

Be in the Top 1%: A Real Estate Agent’s Guide to Getting Rich in the Investment Property Niche by Bob Helms

Michael Becker

Loom

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_175.mp3
Category:Commercial Real Estate -- posted at: 1:42pm EDT

If you make good money, and you want to make it work for you, passive investing in multifamily syndications may be a perfect fit. But what are the benefits of apartment investing compared to the stock market? How do you choose an operator you can trust? What happens if there’s an economic downturn? Can you really achieve financial freedom with passive investing?

Ryan McKenna is the founder of McKenna Capital, a private equity firm that helps investors build long-term wealth through value-add multifamily, self-storage and manufactured home park investments. Ryan has invested in 30-plus real estate and business syndications worth more than $600M, and his current portfolio includes 7,800 units in markets across the country. Ryan’s role at McKenna Capital involves overseeing acquisitions, capital raising efforts, investor relations and asset management.

Today, Ryan joins me to explain why he chose the path of passive investing and discuss what drew him to multifamily over other investment options. He shares the generous tax benefits of multifamily syndications, offering a high-level overview of how to leverage the cost segregation analysis to accelerate depreciation. Listen in for Ryan’s insight on how to vet an operator and learn how to put your money in motion and achieve financial freedom as a passive investor!

Key Takeaways

How Ryan got started in real estate

  • Learned about multifamily syndications in college
  • Used Rich Dad… as blueprint for financial freedom

Why Ryan chose passive over active investing

  • Enjoyed work in corporate world
  • Found good operating partners with track record

Why Ryan chose multifamily over other investment options

  • 16-20% annual return, 8-9% cash-on-cash return
  • Generous tax benefits, predictable in downturn

The beauty of the multifamily cash out refinance

  • Get back 100% of money plus cashflow
  • Redeploy in another deal for additional income

A high-level overview of the cost segregation study

  • Accelerates depreciation on parts of property
  • Big tax advantages up front (huge taxable loss)

Ryan’s advice for aspiring passive investors

  • Reach out to people already doing it, ask Q’s
  • Diversify in multiple markets, operating partners

How Ryan vets a multifamily operator

  • Look for character, integrity and trust
  • Communication style + transparency
  • Track record (execute on business plan)

Ryan’s insight on waiting until after a downturn

  • Money in bank losing value with inflation
  • ‘Bad deal’ still returns 8 to 12% + tax benefits

Ryan’s timeline to financial freedom for passive investors

  • Invest $100K per year for 5 years
  • Passive income stream of $140K

How Ryan’s life has changed now that he’s financially free

  • More time with family, lifestyle by design
  • Passionate about real estate (full-time syndications)

Ryan’s transition from passive to active investing

  • Co-syndicating deals as part of general partnership
  • Raise capital, introduce investors into multifamily

Connect with Ryan

McKenna Capital

Resources

Deferred Sales Trust on ABI EP166

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

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

Nighthawk Equity

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_174.mp3
Category:general -- posted at: 12:07pm EDT

A jack of all trades is the master of none, right? We’ve been taught that it’s best to drill down on investment strategy and beware of shiny objects. But Adam the Brit has a slightly different philosophy. He believes that it’s important to establish multiple income streams across several different asset classes, taking advantage of opportunities to trade real estate and generate lump sums of cash quickly—that he can then use to expand his buy-and-hold portfolio and increase his flow of passive income.

Adam the Brit is a season real estate investor with experience in nearly every asset class, including single- and multifamily flips, value-add multifamily syndications, multifamily buy-and-holds, ground-up construction, and triple net lease retail deals. He has invested all over the world, from Asia to Europe to the US, and his current focus in on syndicating shopping centers and doing multifamily flips in low cap markets.

Today, Adam the Brit joins me to discuss why he got into (and out of!) multifamily buy-and-holds. He explains why he transitioned to retail and weighs in on the benefits of the triple net lease option. Adam the Brit also shares how he fared in the recession, describing how he came upon the buy in bulk, short-term hold and flip strategy he leveraged between 2009 and 2014. Listen in for insight around what differentiates the US real estate market and learn how Adam the Brit complements his primary investment strategy with a variety of opportunities!

Key Takeaways

How Adam the Brit got into real estate

  • Excess capital from business in Netherlands
  • House flipping, invest in office warehouse

When Adam the Brit got into multifamily

  • Move to US in 2001, love idea of passive income
  • Self-funded 8 multifamily buildings in Houston

Why Adam the Brit chose to invest in multifamily

  • Looking for scalability
  • Small, affordable deals available

How the US market differs from others around the world

  • Find real estate to suit any budget
  • Low barriers to entry, favorable tax treatment

Why Adam the Brit got out of multifamily

  • Focus on more passive investments (travel)
  • Retail more reliable than class C market

The benefit of the triple net lease option

  • Pass taxes, insurance and maintenance to tenant

How Adam the Brit fared during the recession

  • Retail located in strong market, performed well
  • Ground up construction went dark
  • Bought 50 houses in AZ for 10¢ on dollar (turn $1M into $3M in 3 mo.)
  • Buy in bulk, short-term hold + flip from 2009 to 2014

What Adam the Brit would do differently

  • Set goals higher (didn’t push hard enough)
  • More aggressive + take more risks

Adam the Brit’s primary strategy today

  • Return to triple net lease retail long-term holds
  • Focus on syndicating Hispanic shopping centers

Adam the Brit’s multifamily flip strategy

  • 4% cap rate doesn’t work for long-term holds
  • Create $40K of value to earn $1M profit

Adam the Brit’s advice for aspiring real estate investors

  • Look for opportunities to trade real estate
  • Use quick money to build passive portfolio
  • Go where you know

Connect with Adam the Brit

Email adam@adamthebrit.com

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

Odell Barnes

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

Michael’s Ultimate Guide Course

Michael’s Mentorship Program

Nighthawk Equity

Deal Maker Live

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_173.mp3
Category:Commercial Real Estate -- posted at: 2:02pm EDT

Once you get a multifamily deal under contract, the clock starts ticking. You have limited time to raise capital, so it’s super-important that you’ve already built relationships with potential investors and have a database to call on. But how do you transition from simply talking to people about the opportunity to invest with you to building a formal pipeline of truly interested investors?

Kyle Mitchell is Managing Partner at Limitless Estates, a multifamily firm investing in the Phoenix and Tucson markets. He started investing in single-family in 2015, building a $1M portfolio of nine properties in Illinois, Ohio and Arkansas, before quitting his W-2 job to pursue multifamily in 2018. Within two months of going all-in on apartment buildings, Kyle landed a 42-unit deal, and he is currently negotiating a $15M 128-unit deal. Kyle is also the host of the Passive Income Through Multifamily Real Estate Investing Podcast.

Today, Kyle joins me to explain his decision to quit his 9-to-5 before he had a multifamily deal, discussing the benefits of going full-time and the way he got brokers to take him seriously. He shares the details of his first multifamily syndication, describing how he raised $1M in 60 days and why he had to switch lenders late in the process. Listen in for Kyle’s advice around finding a mentor and building your team—and get his blueprint for building an investor database for multifamily syndications!

Key Takeaways

Why Kyle quit his job before he had a multifamily deal

  • Savings and wife’s income made possible to go all-in
  • Accelerate progress after 10 months building pipeline

How Kyle and his wife’s goals were in alignment

  • Already investing in SFH, did SDA course together
  • Goal to become entrepreneurs + control time

Kyle’s insight on the benefits of going full-time

  • Ability to visit markets more often
  • Brokers take more seriously

How Kyle got brokers to take him seriously

  • Build relationships over 6 months (persistence)
  • Meetup, newsletter and podcast
  • Mentorship and coaching

Kyle’s first multifamily deal

  • 42-unit property near U of A in Tuscon
  • Mismanaged by SFH property manager

When Kyle started raising money

  • Building investor list for 10 months before
  • Webinar after signed, $1M raise in 60 days

How Kyle built his investor database

  • Leads from podcast, newsletter + meetup
  • One-on-one meetings to determine interest

How Kyle overcame objections re: lack of track record

  • Professional experience in management
  • Real estate license and SFH portfolio
  • Coaches, education, mentors + partners

Kyle’s insight on the Law of the First Deal

  • LOI for second property within 3 weeks
  • $15M 128-unit deal with same partners

Kyle’s advice for aspiring multifamily investors

  1. Double number of investors
  2. Always be raising money
  3. Be transparent with lender
  4. Set up team in advance

Kyle’s blueprint for following in his footsteps

  • Find mentor that fits goals
  • Define goals + take action
  • Build partnerships

Connect with Kyle

Limitless Estates

Passive Income Through Multifamily Real Estate Investing Podcast

Email kmitchell@limitless-estates.com

Resources

Uganda Counseling and Support Services

MailChimp

Michael’s Ultimate Guide Course

Michael’s Mentorship Program

Syndicated Deal Analyzer and Sample Deal Package

Nighthawk Equity

Deal Maker Live

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_172.mp3
Category:Commercial Real Estate -- posted at: 2:21pm EDT

If you’ve got money to invest, you’ve got a lot of options. So, what are the pros and cons of the stock market? Single family homes? Multifamily syndications? What’s the difference between active and passive investing? And how will the predicted market correction impact each of these opportunities?

Bronson Hill is the Director of Investor Relations at Nighthawk Equity, the investing arm of the Michael Blank organization. Bronson started investing in real estate 13 years ago, building a strong single-family portfolio before he transitioned to multifamily. Now, Bronson is the General Partner for 225 units, and he is passionate about sharing the benefits of passive investing in multifamily syndications.

Today, we switch things up and Bronson interviews me about the options available to passive investors. I weigh in on the downside of investing in the stock market, explaining why the actual return is much lower than what your financial advisor tells you! We also cover the advantages of investing in multifamily syndications, including the below-average risk and extraordinary tax benefits. Listen in for insight around the potential market correction everyone is talking about and learn what we do at Nighthawk Equity to protect our investors from the possibility of a downturn.

 

Key Takeaways

The disadvantages of investing in the stock market

  • Actual return much lower than published #s
  • Influenced by volatility, fees, taxes + inflation

The downside of investing in single-family homes

  • Susceptible to market cycles
  • Issues around property management

The advantages of multifamily syndications

  1. Below-average risk
  2. Cashflow
  3. Build wealth
  4. Tax benefits
  5. Hedge against inflation

Active vs. passive investing in multifamily

  • Active = find deals and/or raise capital
  • Passive = limited involvement in day-to-day

The market outlook for multifamily

  • Cognizant of possible correction
  • Taking steps to protect investors

How to protect yourself from a market correction

  1. Take on long-term debt
  2. Look for cashflow from Day 1
  3. Set aside and build reserves
  4. Conservative underwriting

Connect with Bronson

Nighthawk Equity

Email bronson@nighthawkequity.com

Resources

Deal Maker Live

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

Doug Duncan on CNBC

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_171.mp3
Category:general -- posted at: 12:06pm EDT

Adding value to a multifamily property is what allows us to raise rents and earn a solid ROI. But how do we choose a contractor? As owners, how active should we be in managing the construction itself? What is the property manager’s role in a construction project? How do we know what amenities work in a particular market—and what they’re worth to renters?

Ira Singer is the Principal at Mosaic Construction, a design-build industry leader based in Northbrook, Illinois. Mosaic provides best-in-class renovation, remodeling and building services for multifamily, residential and commercial property owners and managers. Marc Rutzen is the CEO of Enodo, a machine learning platform that analyzes multifamily investments and calculates the ROI on value-add amenities.

Today, Ira and Marc join me to discuss the ins and outs of doing a value-add multifamily deal. Ira explains how the owner, property manager and contractor work together on a large-scale construction project, sharing the integral role communication plays in the process. Marc describes how amenity pricing varies by market and weighs in on the trend to offer services like pet daycare and credit card payments. Listen in for insight around making value-add choices that will allow you to increase rents, decrease operating costs, and boost your ROI overall!

Key Takeaways

The role a construction company plays in acquiring property

  • Site visit, bring architect if necessary
  • Discuss scope of work + lend eye as ‘building inspector’

The owner’s role in overseeing a construction project

  • Review daily updates (photos + written explanation)
  • Make important decisions

The property manager’s role in a construction project

  • Provide access and notify residents
  • Communicate with onsite project manager

How to approach large-scale value-add projects

  1. Empty building for full unit makeovers
  2. Two-day refresh of occupied units

Ira’s advice on hiring and managing a contractor

  • Develop relationship with construction partner
  • Monitor progress with strong communication

What construction gone wrong looks like

  • Failed inspections
  • Poor communication, execution

Ira’s insight around how to increase ROI

  • Pay attention to building envelope
  • Solid roof, gutters, windows and doors

Ira’s tips for reducing expenses on a property

  • Maintenance-free siding and windows
  • Efficient HVAC system, insulation in attics

How amenity pricing varies by market

  • Rooftop deck $32 nationally, $45 in Miami
  • Pool $30 in Miami, $50 in Chicago

The trend toward offering services

  • Pet daycare and dog walking
  • Storage (e.g.: package lockers, bikes)
  • Accepting credit card payments

Connect with Ira

Mosaic Construction

ira@mosaicconstruction.net

Connect with Marc

Enodo

marc@enodoinc.com

Resources

Deal Maker Live

Save Water Co

National Apartment Association

CoStar

Partner with Michael

Michael’s Mentoring Program

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_170.mp3
Category:general -- posted at: 7:34pm EDT

A lot of aspiring investors hesitate to leave the security of a high-paying job to pursue real estate. And very few are brave enough to quit their 9-to-5 and go all-in on multifamily investing without a few deals to their credit and the cashflow to cover their living expenses. Burning the boats is not for everyone, but Jerome Myers had a financial runway, and he’d had it with corporate America. So, he walked away from a six-figure engineering position to make his dreams real.

Jerome is the Managing Director of The Myers Development Group, a real estate investment firm on a mission to build a portfolio of 1,000 units and free 100 people from work they aren’t passionate about. Jerome quit his corporate job to pursue real estate in 2017, and since then, he has joint ventured on several multifamily deals and is in the process of syndicating a 112-unit development deal in Greensboro, North Carolina, known as Technology Row. He is also the Chief Inspiration Officer for Dreamcatchers, a podcast featuring ordinary people doing extraordinary things.

Today, Jerome joins me to explain what motivated him to quit his corporate job and go all-in on multifamily—before he’d done a single deal! He shares his struggle to land that first property with no track record and offers insight into his experience with the phenomenon I call The Law of the First Deal. Jerome also describes the differences between joint venturing and syndicating, discussing why he prefers partnering but understands the need to engage LPs as you scale. Listen in for Jerome’s advice around leveraging a coach to fast-track your success and get inspired by his ‘dreams should be real’ philosophy for pursuing what you love.

Key Takeaways

Why Jerome quit his job before he had a deal

  • Never right time, tired of golden handcuffs excuse
  • Frustrated with inhumanity of corporate America

Jerome’s struggle to land his first multifamily deal

  • Banks wouldn’t lend without experience
  • Fix and flips to build reputation

How Jerome finally landed his first apartment deal

  • Joint venture with team of four
  • Added experienced property manager

Jerome’s experience with The Law of the First Deal

  • Opened doors, bankers + brokers lined up
  • Viewed as expert and treated differently

Jerome’s second multifamily deal

  • Closed on 28-unit in Greensboro within 6 months
  • Blowing revenue projections out of water

Jerome’s advice around partnering

  • Know who you’re teaming up with
  • Vet property manager carefully

The difference between partnering and syndicating

  • Joint venture partners bet on YOU
  • Syndicators interested in track record + returns

Jerome’s ‘dreams should be real’ philosophy

  • Society encourages mediocrity, fitting in
  • Leverage real estate to pursue passions
  • Do good in community + do well for investors

Jerome’s advice for aspiring multifamily investors

  • Get a coach to fast-track success
  • Joint venture + add value to team

Jerome’s insight on ‘burning the boats’

  • Get financially fit before quit job
  • If you’re going to do it, do it

Connect with Jerome

Myers Development Group

Dreamcatchers Podcast

Resources

CASHFLOW Game

Deal Maker Live

Nighthawk Equity

Michael’s Mentoring Program

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_169.mp3
Category:general -- posted at: 3:07pm EDT

Don’t think you have the time to start investing in multifamily? Anna Kelley is a wife and mother of 4 who worked a demanding full-time job AND built a real estate portfolio on the side, working 82 hours a week for nearly 5 years. She argues that sacrificing your time for a couple of years to buy yourself decades of financial freedom is well worth it. But you’ve got to be willing to take consistent action—even when it’s hard.

Anna is a seasoned real estate investor with a rental portfolio valued at $12.5M. She is also an Amazon bestselling author and sought-after speaker in the realm of buy-and-hold investing, creative financing, vacation rentals, women in real estate, and multifamily investing. Anna has coached several new investors through their first deal, and she is dedicated to educating others on the benefits of multifamily real estate investing.

Today, Anna joins me to discuss how she executed on a 5-year plan to quit her job with real estate investing. She shares her new emphasis on work-life balance, explaining how she is still working hard but making time to focus on her health and family. Anna also offers insight on why she struggled with the decision to quit her job and how that uncertainty inspired her to joint venture and scale up. Listen in for Anna’s advice around finding partners with complementary skills and learn how to MAKE the time to achieve financial freedom!

Key Takeaways

How Anna’s life has changed since quitting her job

  • No less busy (12-hour days to close on 2 properties)
  • 2-week vacation for first time in years

Anna’s new emphasis on work-life balance

  • Consistent time for self-care + focus on health
  • Slow, methodical growth of multifamily business

Why Anna questioned the decision to quit her job

  • Background as financial advisor, predict recession
  • Job at AIG ‘sole lifeboat’ for family through crash

How Anna got started investing in real estate

  • Clients with most money = real estate investors
  • Protectionary investments to cover expenses (2007)
  • Bought small multifamily in 2008 with rest of 401(k)

Anna’s five-year plan to replace her income

  • Refinance 12-units in 3 buildings already owned
  • Line of credit + equity loan to buy foreclosures
  • Research seller financing, buy 4-unit buildings

Anna’s decision to scale up to larger multifamily properties

  • Reached goal to replace income ($5M in assets)
  • Wanted 6 months of expenses for buildings + year of salary
  • Met partners at event, found 73-unit off-market property

Anna’s investing advice for her younger self

  • Still buy small properties for long-term stability
  • Invest with others sooner, focus on finding deals

Anna’s strategic approach to syndicating deals

  • Target properties in 2-hour radius where know market
  • Expand to other markets once comfortable with process

Anna’s advice around joint venturing

  • Find experienced investor with aligned goals
  • Look for someone with complementary skill set

Anna’s insight for aspiring multifamily investors

  • Be prepared for initial investment of time
  • Got for it but be wise in who partner with

Anna’s response to the lack of time argument

  • You make time for what’s really important
  • 82 hours/week for 4 years with few breaks

How Anna got through the difficult times

  • Change way you get there or timeline, not goal itself
  • Develop resilience and do whatever it takes

Connect with Anna

Rei Mom

Anna on Facebook

Creating Wealth Facebook Group

Resources

Deal Maker Live

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

Kyle Wilson’s Inner Circle Mastermind

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

Turn Your Setbacks into Comebacks by Rick McDaniel

Grant Cardone on School of Greatness EP802

Alan Schnur on Apartment Building Investing EP116

Elite Investors Club

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_168.mp3
Category:Commercial Real Estate -- posted at: 3:59pm EDT

The beautiful thing about achieving financial freedom is that it gives you the means to give back. Of all the investors I know, the majority who quit their jobs with multifamily go on to pursue a greater purpose, using real estate as a vehicle to make other’s lives better.

Reed Goossens is a real estate entrepreneur and Managing Partner of Wildhorn Capital. He moved to the New York from his native Australia in 2012, and since then, Reed has grown a portfolio of 1,100 multifamily units. He has been involved with $500M-worth of large-scale commercial construction and development projects in Australia, the UK and the US. Reed is also the host of the Investing in the US podcast and author of Investing in the US: The Ultimate Guide to US Real Estate.

Today, Reed joins me to discuss how his life is different now that he’s financially free and why he’s using the platform he created through real estate to raise cancer awareness. He also weighs in on the difference between productivity and activity, offering insight around the best use of your time as a syndicator and the value in firing yourself from repetitive or administrative tasks. Listen in to understand how Reed’s definition of success has changed to focus on his evolution as an entrepreneur and learn the #1 factor that helped him build a substantial multifamily portfolio!

Key Takeaways

Reed’s mom’s inspiring advice

  • We’re not here to muck around
  • Live life without regrets

Reed’s journey to financial freedom

  • Pulling hair out in cubicle
  • One-way ticket to NYC in 2012
  • Required hard work + hustle

Reed’s insight on productivity vs. activity

  • Being busy ≠ effective work
  • Define black, blue and red zone

The best use of your time as a syndicator

  • Find partner with complementary skill set
  • Build systems and expand business

Reed’s first hires as a multifamily investor

  • Underwriting interns to analyze deals
  • VAs for bookkeeping and admin tasks

The activities that Reed categorizes as ‘black time’

  • Thought leadership (e.g.: speaking, masterminds)
  • Get in front of investors as face of business

How Reed’s definition of success has changed over the years

  • Commit to doing things well without goal in mind
  • Focus on evolution as entrepreneur

Reed’s mission now that he’s achieved financial freedom

The #1 factor in building Reed’s 1,100-unit portfolio

  • ‘Fool and their money easily parted’
  • Always continue to learn

Reed’s advice for building a successful brand

  • Lean in to what makes you different
  • Credible reputation = recession-proof

How Reed is building a multifamily business ecosystem

  • Bulk order supplies for renovations
  • Bring construction management in-house

Connect with Reed

Reed’s Website

Wildhorn Capital

Investing in the US Podcast

Investing in the US: The Ultimate Guide to US Real Estate by Reed Goossens

Resources

Reed on Apartment Building Investing EP033

Upwork

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

UN Global Goals

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

Deal Maker Live

Nighthawk Equity

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

Podcast Show Notes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_167.mp3
Category:Commercial Real Estate -- posted at: 8:41pm EDT

The 1031 Exchange is the best-known way to defer capital gains on the sale of a property. The problem for syndicators is getting ALL of your limited partners on board—which is next to impossible. So, what do you do if several LPs want to cash out but the rest are looking for an option to defer? The Deferred Sales Trust may just be the perfect solution.

Brett Swarts is the CEO of Capital Gains Tax Solutions, a firm dedicated to helping clients leverage the Deferred Sales Trust as a tool to overcome capital gains tax deferral limitations. He is also an experienced commercial real estate broker and investor, boasting $85M in closed transactions and a portfolio of multifamily, senior housing, retail, medical office and mixed-use properties. With more than 12 years of experience in the brokerage industry, Brett is committed to helping people create and preserve wealth and educating HNWI around capital gains tax deferral via the Deferred Sales Trust.

Today, Brett joins me to discuss the options we have for deferring taxes on the sale of a property, the 1031 Exchange and the Deferred Sales Trust. He shares the problems associated with the 1031, including the 180-day deadline, the pressure to buy a new property, and the challenge of getting all the investors in a syndication to agree. Brett goes on to explain the fundamentals of the Deferred Sales Trust as an alternative, describing how the process works and its benefits in terms of timelines and customizability. Listen in to understand the costs associated with the DST versus the 1031 Exchange and learn how to choose between the two—and avoid paying capital gains taxes!

Key Takeaways

Brett’s path to founding Capital Gains Tax Solutions

  • Commercial broker for Marcus & Millichap
  • Understanding of 1031 Exchange (tax efficient, preserve wealth)

The mechanics of the 1031 Exchange

  • Send money from sale to QI company
  • New property must close within 180 days

The penalty for not meeting 1031 deadlines

  • QI company sends funds on Day 181
  • Hit with tax on money received

The downside of the 1031 Exchange

  • Pressure to buy, tendency to overpay
  • Lower cap + higher interest rates
  • Rapid rental appreciation
  • Traveling depreciation schedule

The fundamentals of the Deferred Sales Trust

  • Trust itself buys property and immediately sells
  • Investors pay NO tax on funds in deferred state

How you use the funds in a Deferred Sales Trust

  • Work with third-party trustee + financial advisor
  • Put money into portfolio of liquid investments
  • Up to 80% can be directed to syndication deals

The advantages of utilizing a Deferred Sales Trust

  • Diversity across several deals, product types
  • 10-year DST can be renewed (no fixed time frame)
  • Starts new depreciation schedule
  • 23-year track record, survived 14 IRS audits

What to do if your investors are divided re: a 1031 Exchange

  • Defer part of entity with DST (cash out other LPs)
  • Money in trust can be directed to next syndication

When to choose a 1031 Exchange vs. the DST

  • 1031 maintains stepped-up basis (heirs sell tax free)
  • DST better for ultra-HNWI to avoid 40% death tax

The costs associated with the 1031 and the DST

  • 1031 = one-time fee of $750 to $1K
  • DST = recurring fees for trustee + financial advisor

Connect with Brett

Capital Gains Tax Solutions

CGTS on YouTube

CGTS on Facebook

Brett on LinkedIn

Brett on BiggerPockets

Resources

Start with Why: How Great Leaders Inspire Everyone to Take Action by Simon Sinek

IRS Tax Code on Installment Sales

Damion Lupo on ABI EP158

Michael’s Mentoring Program

Deal Maker Live

Hal Elrod

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

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_166.mp3
Category:Commercial Real Estate -- posted at: 2:18pm EDT

We all want to be the best version of ourselves for the people we love and lead. But most of us don’t think we can BE happy or fulfilled until we HAVE the things we want. What if we’ve got it backwards? What if we start with daily dedication to BEING a Level 10 person? What if self-development is the prerequisite for DOING what it takes to achieve our big dreams and HAVING the success we’ve always wanted?

Hal Elrod is the world-renowned author of The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM), one of the highest-rated bestsellers in the world. The book has been translated into 27 languages, and Hal’s method is practiced daily by 500,000-plus people in more than 70 countries. He is also one of the top keynote speakers in the US and the creator of one of the most engaged online communities on the web. In April, Hal released his new book, The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable.

Today, Hal joins me to share his 2 near-death experiences and explain how he learned to accept the circumstances—and then commit to doing whatever it took to get the results he wanted. He walks us through the 6 elements of the Miracle Morning, discussing how the daily practice lays the foundation for becoming a Level 10 person. Hal also offers insight around the true purpose of setting goals and reveals how unwavering faith and extraordinary effort are key in reaching our big dreams. Listen in to understand Hal’s 4-step process for creating affirmations and learn how to apply the BE-DO-HAVE model to achieving financial freedom!

Key Takeaways

Hal’s first near-death experience

  • Hit head-on by drunk driver, broke 11 bones
  • Dead for 6 minutes and in coma for 6 days

Hal’s response to the prediction he would never walk again

  • Accept circumstances (emotional pain caused by resistance)
  • Chose to be happiest, most grateful person in wheelchair
  • Visualized walking every day + took first step 3 weeks later

The 5-Minute Rule

  • Set timer for 5 minutes to rant and rave
  • Say, ‘Can’t change it’
  • Focus all energy on what CAN change moving forward

Hal’s mission to elevate the consciousness of humanity

  • Dedicate time each day to becoming better version of selves
  • Must become Level 10 person to achieve Level 10 success

The 6 elements of the Miracle Morning

  1. Silence (meditation, prayer)
  2. Affirmations
  3. Visualization
  4. Exercise
  5. Reading
  6. Scribing

Why Hal wrote The Miracle Equation

  • Daily practice of Miracle Morning lays foundation
  • Miracle Equation = process for goal achievement

Hal’s insight around the real purpose of setting goals

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

Hal’s mantra for developing unwavering faith

  • Commit to giving everything you’ve got to reach goal
  • Regardless of results along way, no matter what

How Hal defines extraordinary effort

  • Hard work AND consistency
  • Doesn’t matter how long it takes

The 4 steps to creating effective affirmations

  1. WHAT you’re committed to
  2. WHY it’s deeply meaningful
  3. WHAT actions necessary to reach goal
  4. WHEN committed to taking actions

Connect with Hal

Hal’s Website

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

Resources

Jim Rohn

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

The Miracle Morning Documentary

Hal on Rich Dad Radio

Think and Grow Rich by Napoleon Hill

Deal Maker Live

Michael’s Mentoring Program

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Apartment Investor Network Facebook Group

Direct download: ABI_165.mp3
Category:Commercial Real Estate -- posted at: 2:11pm EDT

‘Don’t be afraid. This is totally doable.’

Of all the people who are exposed to real estate on a regular basis, very few take action to become investors themselves. If awareness is not the problem, then what is? Why do so few real estate agents, for example, seek out opportunities to work with investors or partner to buy properties of their own? Why do so many of us attend REIA meetings month after month—without taking the next step?

Known as The Godfather of Real Estate, Bob Helms has been investing since 1957. He became a practicing broker in 1980 and spent 18 years working as a father-son team with his son, Robert, of Real Estate Guys fame. In his long and storied career, Bob has owned, managed, bought and sold hundreds of properties. He has been a top-producing agent, respected managing broker, and mentor to hundreds of leading agents and investors. Bob is a regular contributor to Real Estate Guys Radio and a featured speaker at the annual Summit at Sea. He is also the author of Be in the Top 1%: A Real Estate Agent’s Guide to Getting Rich in the Investment Property Niche.

Today, Bob joins me to discuss why agents don’t invest in real estate themselves, explaining how the lack of role models for realtors inspired him to write Be in the Top 1%. He describes how he became an accidental real estate investor and shares the story of Bob’s Big Boo-Boo, a 50-unit deal that he failed to optimize. Listen in for Bob’s insight around becoming an investment property specialist and learn how you can easily become an investor yourself—with the right education and a little self-belief!

Key Takeaways

How Bob became The Godfather of Real Estate

  • Nicknamed by The Real Estate Guys
  • Practicing broker for 40 years

Why agents don’t invest in real estate themselves

  • Lack of successful role models
  • Commercial agents < 7% of total

How Bob got into real estate investing

  • Bought cabin in mountains as engineering student
  • Worked as agent specializing in serving investors

What it was like to work with Robert as a father-son team

  • Gave each other space to operate
  • Both made significant contributions

What inspired Bob to write Be in the Top 1%

  • Average agent makes $35K to $40K/year
  • ‘Separated from opportunity’

The key to becoming an investment property specialist

  • Understand language of investors, how they think
  • Offer opportunity superior to what already doing

Bob’s top takeaways from Be in the Top 1%

  • Investing easy to do with education
  • Find coach to guide through process

How agents can best serve real estate investors

  • Learn investment goals, help develop plan
  • Proactively look for properties than align

Connect with Bob

The Real Estate Godfather

Bob on The Real Estate Guys

Be in the Top 1%: A Real Estate Agent’s Guide to Getting Rich in the Investment Property Niche by Bob Helms

Resources

The Real Estate Guys

Summit at Sea

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

Equity Happens: Building Lifelong Wealth with Real Estate by Robert Helms and Russell Gray

New Orleans Investment Conference

Hal Elrod

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

Deal Maker Live

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_164.mp3
Category:Commercial Real Estate -- posted at: 1:12pm EDT

Most of us don’t see ourselves as salespeople. We believe you have to be an attack dog to do well in sales, and that’s just not us. But according to Blair Singer, we can make a lot of money just being ourselves. In fact, there are several different kinds of Sales Dogs, and we can all learn to sell—and do it well—by managing that little voice in our heads and playing to our strengths. And frankly, sales is a fundamental part of any business, including real estate investing.

Blair is the Rich Dad Sales Advisor and Chief Leadership Engineer at Blair Singer Companies. An expert in sales and leadership mastery, Blair has helped tens of thousands of people significantly increase their sales and income in just six weeks. He is a sought-after keynote speaker, presenting to corporate and public audiences in 35 countries on the topics of personal and professional development. Blair is also the bestselling author of Sales Dogs: You Don’t Have to Be an Attack Dog to Be Successful in Sales and Little Voice Mastery: How to Win the War Between Your Ears in 30 Seconds or Less and Have an Extraordinary Life!

Today, Blair joins me to explain why sales is necessary in any business and discuss the value of cultivating sales skills as a real estate investor. He shares the five types of Sales Dogs, describing how we can overcome the fear of rejection and make money just being ourselves. Blair also offers insight on managing the little voice in your head, learning to be authentic, and playing to your strengths—rather than trying to overcome your weaknesses. Listen in to understand how to win the ‘war between your ears’ and learn why the most important sale is YOU selling YOU to YOU!

Key Takeaways

Why Robert Kiyosaki needs a sales advisor

  • #1 skill in any business
  • Sales = income

Blair’s 5 types of Sales Dogs

  1. Pit bull—stereotypical salesperson
  2. Poodle—charming networker
  3. Chihuahua—detail-oriented
  4. Golden retriever—serve first
  5. Basset hound—instant rapport

Why real estate investors need sales skills

  • Craft pitch to specific investor
  • Sell trust in you

How to overcome the fear of rejection

  • Practice, perfect technique
  • Good coaching

Blair’s insight around personal development

  • ‘Win war between your ears’
  • Key to success in sales

Why it’s crucial to manage your little voice

  • Sabotage best efforts
  • Move aside to control life again

Why people have a hard time being authentic

  • Put on façade to make people like us
  • Addicted to approval

Blair’s advice on playing to your strengths

  • Find what good at, do more of that
  • Avoid comparison with others

Blair’s take on the path to success

  • Not as far as we think
  • ‘Distance from right to left ear’

Blair’s steps to cultivating confidence

  1. Develop awareness of little voice
  2. Study personal growth
  3. Leverage good coaching

Connect with Blair

Blair’s Website

Sales Dogs: You Don’t Have to Be an Attack Dog to Be Successful in Sales by Blair Singer

Little Voice Mastery: How to Win the War Between Your Ears in 30 Seconds or Less and Have an Extraordinary Life! by Blair Singer

Team Code of Honor: The Secrets of Champions in Business and in Life by Blair Singer

Resources

Deal Maker Live

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

Rich Dad

Michael’s Mentoring Program

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_163.mp3
Category:Commercial Real Estate -- posted at: 1:06pm EDT

Close your eyes and imagine for a moment how it would feel to quit your W-2 job. Imagine having the freedom to control your own time—and financial destiny. Imagine having the passive income to cover your expenses and provide for your family long-term, without being stuck in those golden handcuffs. If you’re dreaming of handing in a letter of resignation, then multifamily real estate investing may offer the ideal solution.

Danny Randazzo is an author, entrepreneur and full-time real estate investor. He has a background as a financial consultant, advising multibillion-dollar companies in improving revenue performance, but Danny’s ambition to achieve financial freedom led him to move from the Bay Area to Charleston, South Carolina, and build an impressive real estate portfolio with his wife, Caitlin. Now, Danny and his team control $130M in multifamily properties across the country, and he is focused on helping others invest passively in apartment buildings.

Today, Danny joins me to discuss his transition from W-2 employee to full-time real estate investor. He reflects on his decision to move to a market ripe for growth and the impetus behind his pivot to focus fully on multifamily. Danny also offers advice around raising money for syndications, ensuring alignment of interests with potential partners, and leveraging joint ventures to scale your business. Listen in for insight on making the decision to quit your job and pursue real estate full-time and learn why multifamily is the most direct route to financial freedom!

Key Takeaways

How Danny feels about quitting his job

  • Corporate job no longer providing what family needs
  • Joy in controlling own time and financial destiny

Danny’s transition from employee to full-time investor

  • Good personal financial position
  • 100% focus to take real estate business next level

How Danny got into real estate

  • House hack with extra money from working in UAE
  • Decision to move to Charleston, SC (ripe for growth)

Danny’s pivot to focus on apartment buildings

  • Benefits in terms of scalability, occupancy protection
  • Grew portfolio to control $130M in multifamily

Danny’s guidance around raising money for deals

  • Use own equity nest egg for proof of concept
  • Educate + share opportunities to invest in real estate

The benefits of passive investing in multifamily

  1. Cashflow
  2. Future equity appreciation
  3. Tax advantages

The role of joint ventures in scaling your business

  • Allows for creativity in how do deals
  • Work together to achieve greater results

Danny’s top real estate lessons learned

  • Alignment of interests with partner’s wants + needs
  • Find solutions with help from network

Danny’s advice for aspiring investors on quitting your job

  • Get clear on financial needs + goals
  • Do math on # of properties to cover expenses

What Danny is excited about moving forward

  • Several multifamily deals in pipeline
  • Vacation to South Africa with wife

Connect with Danny

Passive Investing

Randazzo Capital

Danny’s Blog

The Boy Who Lost His Wallet (Wealth Lessons for Kids) by Danny Randazzo

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

Commercial Investing Books by Dolf de Roos

Tom Wheelwright on ABI EP127

Grant Cardone

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

Deal Maker Live

Michael’s Products

Michael’s Mentoring Program

Invest with Michael

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

Direct download: ABI_162.mp3
Category:Commercial Real Estate -- posted at: 12:39pm EDT

There are a number of different ways to get your multifamily investing career off the ground. You might choose to buy a small property with your own money or learn the business as a passive investor in a syndication. You could take on the role of syndicator and partner with an experienced team or get in the game as a capital raiser. So, what are the benefits to each of these strategies? Which approach provides the quickest route to financial freedom? And how can you leverage the power of joint ventures to invest in bigger deals early on?

Jens Nielsen is the principal at Open Doors Capital, a private equity firm out of Durango, Colorado, that helps people passively invest in real estate. In just three years, he has raised nearly $1M for multifamily deals and invested in 800-plus apartment units. Jens has a talent for assessing risk and assembling the right team to renovate and operate multifamily properties, and he has utilized a variety of strategies to build an impressive portfolio—while working a full-time job in IT.

Today, Jens joins me to explain how his lack of faith in the stock market led him to develop an entrepreneurial mindset and become a multifamily investor. He walks us through his journey and each of the strategies he utilized, from buying a fourplex on his own to a seller financing deal to raising capital for syndications. Listen in for Jens’ insight around the benefits of getting started through passive investing and learn his unique approach to raising money by way of a joint venture!

Key Takeaways

Jens’ path to multifamily investing

  • Successful career in IT but afraid to count on 401(k)
  • Build passive income streams to secure financial future

How to develop an entrepreneurial mindset

  • Realize idea of job security = myth
  • Get educated and grow risk muscle

Jens’ first real estate deal

  • Bought fourplex in Albuquerque, NM with own money
  • Rehab units + new roof for cashflow of $800/month

How everyone wins in a seller financing deal

  • Lower taxes and interest rate benefits seller
  • Small down payment + monthly payments

Jens’ 38-unit joint venture deal

  • Negotiated price down from $1.6M to $1.2M
  • Sellers came in undercapitalized, losing money
  • Jens halfway through $10K/door renovation

The roles and responsibilities of Jens’ team

  • Jens does underwriting, due diligence and budget
  • Partner focuses on renovations and management

How to shift into the role of raising money for deals

  • Position self as investor and nurture relationships
  • Present deals in logical way and discuss benefits

The advantages of investing in a multifamily syndication

  • Much easier to scale + more reliable return
  • Opportunity to expand influence, network

Jens’ advice for aspiring real estate investors

  • Consider passive investments in bigger deals
  • Be careful about self-managing properties

How to prepare for the role of raising capital for multifamily

  • Surround self with peer group just ahead of you
  • Use team approach to raise money for syndicator

Connect with Jens

Open Doors Capital

Email jens@opendoorscapital.com

Resources

Deal Maker Live

Michael’s Mentoring Program

Invest with Michael

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Apartment Investor Network Facebook Group

Michael on Instagram

Direct download: ABI_161.mp3
Category:Commercial Real Estate -- posted at: 8:53pm EDT

Three years ago, I met the legend Robert Kiyosaki on The Real Estate Guys Summit at Sea. Of course, I knew him from his bestselling books about investing and personal finance, so I was taken aback by the spiritual language he used in his presentation. When I asked him about it, Robert said, “Of course. I’m a Marine.” Why does Robert credit the military for his spiritual discipline? And how has spirituality become a priority in his life and work?

Robert Kiyosaki is an entrepreneur, investor, educator and bestselling author of the #1 finance book of all time, Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not. His perspectives around money and investing run contrary to conventional wisdom, earning Robert a reputation for straight talk as a passionate advocate for financial education. A prolific writer, Robert’s latest release is called FAKE: Fake Money, Fake Teachers, Fake Assets: How Lies Are Making the Poor and Middle Class Poorer.

Today, Robert joins me to explain how he learned spiritual discipline in the Marine Corps and contrast that with the business world where the only mission seems to be money. He discusses the importance of spirituality in his life and work, describing his calling to teach financial literacy where the corrupt education system has failed. Listen in for insight around the themes in Robert’s new book and learn to identify fake assets, fake educators and fake currency!

Key Takeaways

How Robert learned spiritual discipline in the US Marine Corps

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

Why spirituality is important to Robert

  • Calling to do what God wants done
  • Take on corrupt systems (e.g.: education)

The themes included in Robert’s new book Fake

  1. Fake assets (i.e.: 401(k), mutual funds)
  2. Fake teachers, lack of financial literacy
  3. Fake money (fiat currency vs. gold)

Connect with Robert

Rich Dad

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

FAKE: Fake Money, Fake Teachers, Fake Assets: How Lies Are Making the Poor and Middle Class Poorer by Robert T. Kiyosaki

Resources

Deal Maker Live

The Real Estate Guys

Michael’s Mentoring Program

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Apartment Investor Network Facebook Group

Michael on Instagram

Direct download: ABI_160.mp3
Category:Commercial Real Estate -- posted at: 2:40pm EDT

The real world is not HGTV. If you are a high-earner looking to get into the real estate game, it is important to understand just how much work is involved in being an active investor. There is a lot of competition in the space, and good deals are hard to find. Add to that the complexities of managing a rental portfolio, for example, and the headache may seem like more than it’s worth. But why work harder than necessary to make less than you could? You can take advantage of all the benefits of commercial real estate investing as a passive investor, letting an expert handle the minutiae while you reap the rewards.

Paul Moore is the Founder and Managing Director at Wellings Capital, a commercial real estate investment firm that focuses on self-storage, mobile home parks, and multifamily property. Paul has 18 years of experience in real estate: He has flipped 50-plus homes and 25 high-end waterfront lots, appeared on HGTB’s House Hunters, rehabbed and managed rental properties, built new homes, and developed a subdivision. Paul is also the author of The Perfect Investment: Create Enduring Wealth from the Historic Shift to Multifamily Housing and cohost of the wealth-building podcast How to Lose Money.

Today, Paul joins me to discuss the advantages of commercial real estate over stocks, bonds and mutual funds. He shares the challenges of being an active investor, explaining why high-earning professionals might be happier as passive investors in commercial assets like apartment buildings, self-storage facilities, or mobile home parks. Paul also offers insight around the commercial value formula, describing how operators can force appreciation with simple strategies to increase a property’s income or compress its cap rate. Listen in to understand the extraordinary tax advantages of multifamily real estate and learn what makes commercial investing an attractive option for high-net-worth individuals looking for a consistent return and minimal risk profile.

Key Takeaways

The pros and cons of stocks, bonds + mutual funds

  • Long track record of growth, great liquidity
  • Highly unpredictable

The pros and cons of commercial real estate

  • Not at all liquid
  • Stability, predictability for long term

The challenges of being an active investor

  • Hard to find good deals + be profitable
  • Time consuming to run large SFH portfolio

The commercial value formula

  • Value = net operating income/cap rate
  • Increase income or compress cap rate to force appreciation

Simple things operators can do to increase income

  • Rental space for trailers, RVs + boats in mobile home park
  • Professional property management in apartment building

Simple things operators can do to compress the cap rate

  • Franchise group of self-storage facilities, find right buyer
  • Multifamily value-add from C+ to B and refinance

The tax advantages of commercial real estate investing

  • Accelerate depreciation via cost segregation study
  • Bonus depreciation (up to $1M) + QREP write-offs

Wellings Capital’s strategy moving forward

  • Expand to self-storage, mobile home parks via partnerships
  • Wellings brings equity and partner-operator finds deal

Connect with Paul

Wellings Capital

How to Lose Money Podcast

Paul on BiggerPockets

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

Resources

Deal Maker Live

The Real Estate Guys

Paul Moore on ABI EP058

10 AMAZING Tax Benefits for Real Estate Investors

Michael on HTLM EP019

Michael on HTLM EP132

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

Nighthawk Equity

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Apartment Investor Network Facebook Group

Michael on Instagram

Direct download: ABI_159_v2.mp3
Category:Commercial Real Estate -- posted at: 2:28pm EDT

Are you using your IRA to invest in a multifamily syndication? Then brace yourself for an unexpected tax bill when the asset sells. If, on the other hand, you’d prefer not to owe the IRS for Unrelated Business Income Tax (or UBIT), it’s time to consider a Qualified Retirement Plan (or QRP) that gives you more control over your money and makes it much easier to invest in real estate!

Damion Lupo is a real estate investor, serial entrepreneur, and high-profile financial consultant. He founded Total Control Financial in 2010 to help people achieve financial freedom. He is committed disrupting Wall Street and empowering Main Street with the tools and teachings of financial transformation. In the last 25 years, Damion has launched and owned 40-plus companies, including a venture capital firm, an insurance agency, and more than a dozen real estate investment and development operations. He is also the author of QRP Book: How to Get Checkbook Control of Your 401(k) & IRA Money Now.

Today, Damion joins me to explain why the current retirement system is broken and discuss the problem with using your IRA to invest in multifamily real estate. He walks us through the fundamentals of UBIT, describing how you can be blindsided by a BIG tax bill when an asset sells.  Damion also offers insight around the alternative to the IRA that is exempt from UBIT, the QRP. Listen in to understand the multiple benefits of the QRP as a retirement vehicle—and learn how to regain control of your retirement savings AND maximize your profits as a multifamily investor.

Key Takeaways

Why the retirement system is broken

  • Hand $ to someone else + hope for best
  • Better to create own wealth

The shortcomings of the 401(k)

  • No control over money, high fees
  • Limits around what invest in

The problems with the IRA

  • Hit with taxes if invest in syndications
  • Pay unlimited fees to custodians

The fundamentals of UBIT

  • 35% tax on profit from debt
  • Hit with UBIT when asset sells

How to avoid UBIT

  • Move asset into QRP (in-kind rollover)

The benefits of the QRP

  • Ability to control own money
  • Higher contribution limits (up to $50K)
  • Borrow up to $50K to invest in self
  • No custodian = much lower fees
  • No third party for paperwork

Short- vs. long-term real estate investments

  • Short-term investments need tax shelter like QRP
  • Don’t put long-term investments in retirement account

When it’s worth it to get a QRP

  • Cost between $1500—$6K (depends on # of employees, companies)
  • Makes sense even for $50K investment

Connect with Damion

Damion’s Website

QRP Book: How to Get Checkbook Control of Your 401(k) & IRA Money Now by Damion S. Lupo

Resources

The Real Estate Guys

Deal Maker Live

Hal Elrod

Damion Lupo on ABI EP079

Tom Wheelwright

Michael’s Mentoring Program

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Apartment Investor Network Facebook Group

Michael on Instagram

Direct download: ABI_158.mp3
Category:Commercial Real Estate -- posted at: 1:50pm EDT

So, you want to achieve financial freedom with real estate investing, but you’re a busy person with a demanding job and a lot of responsibility. You don’t have time to learn the ins and outs of putting together an advisory team, finding a good deal, or making decisions about the financing and management of a property. The fact is, you can STILL enjoy the benefits of real estate investing by becoming a passive investor in a multifamily syndication!

Doug Marshall is the founder and president of Marshall Commercial Funding, a firm dedicated to helping clients get the best possible financing for their rental properties. Doug has 36 years of experience as a mortgage broker, and he received his CCIM designation in 1999. His journey into passive investing began 10 years ago, and to date, he has invested in 11 properties—8 of which were apartment buildings. Doug is also the author of Mastering the Art of Commercial Real Estate Investing:  How to Build Wealth & Grow Passive Income from Your Rental Properties.

Today, Doug joins me to discuss how he achieved financial freedom through passive investing in commercial real estate. He describes the difference between an active and passive investor, sharing his goals as a passive investor and the characteristics of an ideal candidate for passive investing.  Doug also offers insight around his preference for multifamily over other asset classes and explains how to calculate the amount you need to invest for a particular cash-on-cash return. Listen in to understand the incredible tax benefits of real estate investing and get Doug’s take on the #1 thing passive investors should consider before handing their money over to a syndicator.

Key Takeaways

Doug’s path to financial freedom with passive investing

  • 20 years living paycheck to paycheck
  • Went into business for self as mortgage broker (3X income)
  • Partnered with client as passive investor

The difference between active and passive investing

  • Active investors make ALL decisions (team, management)
  • Passive investors decide WHO to trust to achieve returns

Why Doug prefers multifamily over other asset classes

  • Vacancies have less impact on returns
  • Low vacancy rates during recession (5-10%)

The advantages of multifamily real estate investing

  • Deferment of capital gains taxes
  • Generates cashflow
  • Opportunity to buy below market
  • Depreciation limits income taxes
  • Leverage properties to amplify return

Doug’s goals as a passive investor in multifamily

  • No hassle of day-to-day decision-making
  • Cashflow + upside appreciation
  • Financial freedom (family trip to Scotland)

The ideal candidate for passive real estate investing

  • Made good money over lifetime
  • Desire to generate passive income

How to calculate the right amount to invest for retirement

  • Living expenses minus social security benefits
  • Cover difference with cash-on-cash return

The cash-on-cash return Doug looks for in a property

  • 4-5% from start with value-add opportunity
  • Up to 8% once improvements made

The most important considerations for passive investors

  • WHO to invest with (vet syndicator for integrity)
  • WHAT asset class to invest in

Connect with Doug

Marshall Commercial Funding

Mastering the Art of Commercial Real Estate Investing: How to Successfully Build Wealth & Grow Passive Income from Your Rental Properties by Doug Marshall

Resources

Deal Maker Live

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Apartment Investor Network Facebook Group

Michael on Instagram

Direct download: ABI_157.mp3
Category:general -- posted at: 1:02pm EDT

The vast majority of real estate investors were blindsided by the crash in 2008. And with many economists warning that we’re headed toward another downturn, it is prudent to take off our rose-colored glasses and move forward with an eye to the broader economic picture. It is crucial for multifamily investors to study the markets, identify trends and consider the economy’s impact on our investments—and the people who rent from us.

Robert Helms is the founder and host of Real Estate Guys Radio, a media platform dedicated to helping investors stay focused, motivated and informed. He has a wealth of experience teaching Landlord Boot Camp for newbie residential investors as well as college-level real estate courses. Robert also spent 18 years working in a real estate brokerage where he became a top producer and refined his skills in marketing, negotiating and relationship management. Now, Robert is a professional real estate investor and developer with a portfolio that spans eight states and five countries.

Today, Robert joins me to share a high-level overview of The Real Estate Guys’ recent Summit at Sea. He explains why it’s critical for investors to keep an eye on the economy and offers insight into what market trends we should be looking out for.  Robert also discusses what he learned from the crash in 2008 and outlines his current concerns around sources of capital for multifamily investors. Listen in for a summary of the key takeaways from the Summit at Sea and find out how you can learn more from the expert faculty through The Future of Wealth and Money video series.

Key Takeaways

 

An overview of The Real Estate Guys’ Summit at Sea

  • Focus beyond real estate to broader scope economics
  • Bring together smart people to interact without agenda

Why it’s crucial for investors to keep an eye on the economy

  • Study markets to identify opportunity, trends
  • Examine how tenants might be affected

Robert’s insight on the current economic climate

  • Anticipate general slow down
  • Pay attention to interest rates, demographic shifts

What Robert learned from the crash in 2008

  • Surround self with people who understand economy
  • Investments float in sea of larger economic picture

The aspects of the economy investors should watch

  • Jobs, durability of income + housing demand
  • Major shifts in markets, technology, etc.

Robert’s insight around interest rates

  • Not expecting huge increase in interest rates
  • Concerned about sources of capital (government agencies)

The Real Estate Guys’ mission

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

What you can learn from The Future of Money and Wealth

  • Sense of what future looks like around money
  • Continue to acquire wealth in uncertain age

Robert’s top advice for real estate investors

  • Recognize larger economic realities
  • Be aware of other investing opportunities

Connect with Robert

The Real Estate Guys

The Real Estate Guys’ Events

Future of Money and Wealth Video

Resources

The Real Estate Guys’ Summit at Sea

2019 Summit at Sea Faculty

Peter Schiff

Dr. Doug Duncan’s Market Predictions

Crash Proof: How to Profit from the Coming Economic Collapse by Peter Schiff and John Downes

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

The Real Estate Guys’ Goal-Setting Retreat

Hal Elrod

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

Joe Quirk at The Seasteading Institute

Tom Hopkins

The Real Crash: America’s Coming Bankruptcy—How to Save Yourself and Your Country by Peter Schiff

Peak Prosperity

Deal Maker Live

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Apartment Investor Network Facebook Group

Michael on Instagram

Direct download: ABI_156.mp3
Category:Commercial Real Estate -- posted at: 12:41pm EDT

Real estate investors have a tendency to look down on paper assets, arguing that the stock market is an ill-advised place to keep your money. We talk about the volatility of stocks and avoid paper assets like the plague, assuming that there is no way to mitigate the associated risk. But what if investing in the stock market is not so different after all? What if we could apply real estate investing strategies to stocks and generate additional cashflow? What if we could leverage paper assets to complement a multifamily portfolio and even hedge against a decline in the real estate market?

Andy Tanner is the founder of The Cash Flow Academy, a platform designed to empower and inspire investors and entrepreneurs to generate their own income. An expert in the realm of paper assets, Andy has served as a Rich Dad Advisor for the last 11 years, and he is passionate about teaching in a way that is fun, simple and real. He is also the author of two must-have books, Stock Market Cash Flow and 401(k)aos.

Today, Andy joins me to share the parallels between real estate investing and the stock market, explaining how to achieve cashflow in stocks via puts and calls. He discusses the best way to manage risk as an investor on the exchange and describes how the rich are able to ‘predict the future’ and make decisions that make money. Andy also offers his predictions for the short- and long-term future of the stock market and walks us through the benefits of investing in buy-and-hold real estate. Listen in for Andy’s insight on leveraging paper assets to hedge against a decline in the real estate market and learn to apply multifamily investing strategies to stocks and generate even more passive income!

Key Takeaways

Why real estate investors should appreciate paper assets

  • ‘It’s not the asset class, it’s whether you’re educated’
  • Take real estate approach and apply to stock market

The parallels between the stock market and real estate

  • Fundamental analysis (cap rate = P/E ratio)
  • Look for undervalued property or stock

How to achieve cashflow through the stock market

  • Get paid to promise to buy if price declines (puts/calls)

The best way to manage risk in the stock market

  • Purchase contracts (insurance) that lock in ability to sell high

How to hedge against a decline in the real estate market

  • Buy puts on IYR (real estate fund) for pennies on dollar

How the rich go about predicting the future

  • Policy + demographics (i.e.: Medicare + baby boomers)
  • Pay attention to balance sheet and identify trends

Andy’s predictions around the future of the stock market

  • Okay for little while longer but Fed ‘out of bullets’
  • Pay more for stock than ever before from earnings standpoint

Why Andy recommends investing in real estate

  • 100% chance value of US dollar will continue to decline
  • Borrow, trade, trade back + return to short USD
  • Make money with natural inflation as rents go up

The multiple profit centers available in real estate

  • Cashflow and tax advantages
  • Appreciation of property + rent (via inflation)
  • Principle paid down, refi for stronger short position

Connect with Andy

The Cashflow Academy

Resources

Stock Market Cash Flow: Four Pillars of Investing for Thriving in Today’s Markets by Andy Tanner

401(k)aos by Andy Tanner

401(k)aos Free Download

Warren Buffet on Kraft Heinz

US Real Estate ETF (IYR)

S&P/Case-Shiller Price Index

Cash Covered Puts on YouTube

Michael’s Mentoring Program

Deal Maker Live

Invest with Michael

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

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Apartment Investor Network Facebook Group

Michael on Instagram

Direct download: ABI_155.mp3
Category:Commercial Real Estate -- posted at: 6:03pm EDT

Raising capital is crucial in making a real estate syndication happen. But how do you connect with high-net-worth individuals who are interested in multifamily? And then, how do you build trust with those prospective investors? One strategy is to create quality content and design a platform around those resources, attracting passive investors by giving them access to the information they need.

Annie Dickerson is the Cofounder and Managing Partner at Goodegg Investments, a firm dedicated to helping clients achieve financial freedom through passive investing in multifamily real estate. Goodegg has built a reputation for helping its investors gain access to great deals, connecting them with cashflowing real estate syndications. Annie’s strength lies in content creation, and the Goodegg platform features educational resources and a course for new investors, Passive Real Estate Investor Academy.

Today, Annie joins me to describe the freedom of being a full-time multifamily investor, explaining how she overcame her fears and gained the confidence to quit her 9-to-5. She discusses how she came to realize her strengths in raising capital and educating passive investors and offers insight into how she met her cofounder and established a partnership with Goodegg. Listen in to understand why Annie chose to focus on content creation and learn how developing educational resources has helped her connect with potential investors and accelerate her business!

Key Takeaways

Annie’s transition from full-time employee to full-time investor

  • Miserable at job but terrified to quit
  • Created chart (dangers, opportunities, strengths)

How Annie overcame her fear to become an entrepreneur

  • Act of writing down and organizing thoughts
  • Address + game plan for each ‘danger’

How Annie’s life is different now that she’s investing full-time

  • Freedom to pursue own mission + vision
  • Wake up every day and add value

What gave Annie the confidence to quit her job

  • Experience with house hacking and rentals on side
  • Completed Ultimate Guide program + potential deal

How Annie found her strength in raising capital

  • Agreed to raise $200K for partner met through networking
  • Fell in love with educating passive investors about deals

How Annie came to start Goodegg Investments with a partner

  • Connected with fellow working mom at conferences
  • Julie likes phone calls + meetings, Annie at content creation

Why Annie focused on building an educational platform

  • Strategy to reach target audience
  • Build trust with potential investors

How Annie’s content has served to accelerate her business

  • Afford investors independence to research on own
  • Address questions shared by many new investors

What’s next for Annie and Goodegg Investments

Annie’s advice for aspiring multifamily investors

  • Get crystal clear on target audience, create avatar
  • Attract more people to platform with unique POV

Connect with Annie

Goodegg Investments

Email annie@goodegginvestments.com

Resources

BiggerPockets

Annie’s Passive Investing Course

Paul Nagaoka on ABI EP153

Michael’s Course

Deal Maker Live

Invest with Michael

Michael’s Mentoring Program

Partner with Michael

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

Podcast Show Notes

Review the Podcast on iTunes

Michael on Facebook

Apartment Investor Network Facebook Group

Michael on Instagram

Direct download: ABI_154.mp3
Category:Commercial Real Estate -- posted at: 11:11am EDT

Too many of us get to the end of our lives and ask, “Why didn’t I follow my passion?” But what if you didn’t wait? What if you asked yourself the tough questions NOW? What if you put your energy and resources into the thing that really makes you come alive? What if you took a now-or-never approach to pursuing an intentional life?

Paul Nagaoka is Managing Partner at Syndicate, a commercial and multifamily real estate investing firm based in Kansas City. He draws on his background as a mortgage broker, realtor and investor to identify high-yield investment opportunities and manage risk through careful analysis and creative problem-solving. Prior to Syndicate, Paul ran his own solo real estate investing company, growing the team to 30 employees and subs with ownership in 350-plus units.

Today, Paul joins me to share his approach to living an intentional life. He discusses his hiatus from real estate, explaining how the passive income from investments allowed Paul to pursue an acting career and become a celebrity in Southeast Asia! He offers insight into why he needed a break from real estate and describes how he is running his business differently now. Paul also covers the value in developing an abundance mindset and finding opportunities that others miss. Listen in for Paul’s secrets to finding off-market properties—and get his advice on getting off the sidelines and engaging in an intentional life.

Key Takeaways

Paul’s hiatus from real estate

  • Planned 6-month trip to Asia with family
  • Became popular actor, celebrity

Why Paul needed a break from real estate

  • 14 years in business, grew team of 35
  • Too much time on things he didn’t like

How Paul is running his business differently now

  • Focus on strengths (relationships, marketing)
  • Rely on partners to handle other duties

Paul’s insight around taking on partners

  • Must bring on others to truly scale
  • Okay with giving up equity to grow

Paul’s take on living an intentional life

  • Develop growth + abundance mindset
  • Put energy where passion + talents meet

What inspires people to act on their passions

  • Big enough WHY (now or never)
  • Make decision to do what’s in heart

What Paul is excited about moving forward

  • Goal of $35M in 2019
  • Find opportunities others miss

Examples of where Paul sees opportunity

  • Identify places to reduce expenses
  • Negotiate seller financing deals

How Paul finds off-market deals

  • Cold call off-market properties 3-4 hours/day
  • Access to CoStar through brokers on team

How to find off-market deals without a broker

  • Choose area, tag properties on Google Maps
  • Use property tax records to pull contact info
  • Drive to location, ask to talk to owner

Paul’s advice for aspiring multifamily investors

  • Invest in knowledge + ‘get your jersey dirty’
  • Analyze 10 deals/week, make 3 offers/month

Connect with Paul

Syndicate

How to Invest in Real Estate

Paul on YouTube

Resources

Deal Maker Live

Andrew Carnegie’s Concept of Vertical Integration

CoStar

Clemons Real Estate

Google Maps

ListSource

Cory Boatright & Sean Terry on ABI EP151

Invest with Michael

Michael’s Mentoring Program

Partner with Michael

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

Podcast Show Notes

Review the Podcast on iTunes

Michael on Facebook

Apartment Investor Network Facebook Group

Michael on Instagram

Direct download: ABI_153.mp3
Category:general -- posted at: 12:28pm EDT

In a perfect world, honest real estate investors would never have to deal with frivolous lawsuits. But we live in the real world where being sued is a very real possibility. So, how do you protect yourself so that an angry tenant cannot get to your personal assets? What kinds of insurance do you need to protect your real estate assets from an ‘outside attack’? And where should you set up a holding company to take advantage of the strongest possible asset protection laws?

Garrett Sutton is a corporate attorney, asset protection expert and bestselling author with 30-plus years of experience supporting entrepreneurs and real estate investors. He serves as Rich Dad Advisor and asset protection attorney for Robert Kiyosaki and founder of Corporate Direct, a firm dedicated to supporting clients in protecting their assets, maintaining their privacy and advancing their financial goals. He has sold more than 850,000 books, including the invaluable Loopholes of Real Estate and Start Your Own Corporation.

Today, Garrett joins me to explain the ins and outs of asset protection. He discusses how the LLC protects your personal assets, why it’s important to set up an LLC from Day One, and how insurance serves as your first line of defense. Garrett offers insight around entity structure, speaking to the value of setting up a Wyoming holding company with charging order protection. Listen in to understand the concept of equity stripping to further protect your real estate assets—and learn to avoid personal liability by following the four corporate formalities!

Key Takeaways

Why it’s important to set up an LLC from Day One

  • Too late once sued
  • Plaintiff can reach all personal assets

How the LLC protects you as an individual

  • Courts respect lease in name of LLC
  • Attorney will work to get name off suit

The role of insurance in providing asset protection

  • Serves as first line of defense
  • LLC provides second line of defense

Why Garrett recommends an umbrella policy

  • Extra coverage for home + auto
  • Protects against outside attack (i.e.: car wreck victim)

How to set up the best possible entity structure

  • LLC in state property located
  • Several LLCs under Wyoming holding company
  • WY = strongest asset protection laws, privacy

The value of a charging order protection

  • Doesn’t allow forced sale of assets
  • Victim must wait for distributions

The 4 corporate formalities

  1. Annual meeting w/ minutes
  2. Registered agent in state
  3. Separate tax return
  4. Separate bank account

The consequences of failing to follow corporate formalities

  • Personally liable in any suit
  • ‘Veil pierced’ 50% of time

How Corporate Direct can retroactively fix compliance issues

  • Operating agreement, minutes + membership certificates
  • Transfer ownership from individual to WY LLC

The concept of equity stripping

  • Leverage debt as form of asset protection
  • WY LLC provides credit, receives first deed of trust

How to notify your insurance company re: title transfer

  • Use grant deed, inform of transfer to LLC
  • Add LLC as additionally insured (avoid higher premium)

Connect with Garrett

Corporate Direct

Call (800) 600-1760

Resources

Loopholes of Real Estate by Garrett Sutton

Start Your Own Corporation by Garrett Sutton

Books by Garrett Sutton

Rich Dad

Michael’s Mentoring Program

Partner with Michael

Invest with Michael

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

Podcast Show Notes

Review the Podcast on iTunes

Michael on Facebook

Apartment Investor Network Facebook Group

Michael on Instagram

Direct download: ABI_152.mp3
Category:general -- posted at: 9:40pm EDT

In a climate where good deals are hard to find, off-market opportunities are key for multifamily investors. But how do you find property owners who might be willing to sell? And once you’ve tracked them down, how do you leverage marketing strategies to get their attention—and inspire them to pick up the phone and call YOU?

Cory Boatright and Sean Terry are experienced single-family wholesalers in the Oklahoma City and Phoenix markets, respectively. Together, the pair stumbled into a multifamily flip that proved challenging. And though they would never do it again, Cory and Sean earned a multiple six-figure profit on the deal. Now, they are pursuing multifamily buy-and-hold as a strategy through Investing Capital Group, a firm focused on finding off-market properties for its capital partners.

Today, Cory and Sean join me to explain how they got involved in a multifamily wholesale deal, discussing what they did right as well as the extreme adversity they faced in route to closing. They share their process for finding off-market deals, offering insight around the resources available for pulling lists of potential sellers and collecting their contact information. Listen in for advice on handling an influx of incoming calls and learn how Cory and Sean leverage unique marketing strategies to earn a 100% direct mail open rate!

Key Takeaways

Cory & Sean’s real estate resumes

  • Cory = wholesaler in OKC since 2013
  • Sean = 15 years as wholesaler in Phoenix

How Cory & Sean stumbled into a multifamily deal

  • Lead on property in AZ, tracked down owner
  • Property under contract direct to seller

What Cory & Sean did right in their multifamily flip

  • Built in extra time (60-day due diligence)
  • Built in extension for $50K

Cory & Sean’s approach to finding a buyer

  • Use ListSource to find potential buyers
  • Send marketing packet via FedEx (delivery notification)

The challenges Cory & Sean faced in route to closing

  • Buyer stalled to postpone nonrefundable date
  • Ramifications of failing to disclose reduction in price

Why the multifamily flip was successful despite the challenges

  • Multiple six-figure profit
  • Learned do’s and don’ts

Cory & Sean’s process for finding off-market deals

  • Pull data from ListSource to find sellers
  • Use Skip Trace Lists for contact info (20¢/record)
  • Cold call, direct mail and target on Facebook

How to handle the influx of incoming calls

  • Hire answering service like PATLive
  • Hire in-house or local staff (build relationships)

Why you can spend more on direct mail for multifamily

  • Fewer leads in particular area
  • Critical to get attention of decision-maker
  • FedEx with signature request = 100% open rate

Connect with Cory & Sean

Investing Capital Group

Real Estate Investing Profits Podcast

Resources

ListSource

Skip Trace Lists

PATLive

CoStar

Dan Kennedy

John Carlton

Michael’s Mentoring Program

Partner with Michael

Invest with Michael

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

Podcast Show Notes

Review the Podcast on iTunes

Michael on Facebook

Apartment Investor Network Facebook Group

Michael on Instagram

Direct download: ABI_151.mp3
Category:Commercial Real Estate -- posted at: 9:27pm EDT

Imagine having the financial security to do what you love, to pursue work that brings you joy—even if that work happens to be in an unpredictable industry. Mark Hentemann began his career in entertainment as a starving artist in New York City, often wondering how he would cover rent. Now, he leverages the cashflow from real estate investments to spend his days coming up with jokes in the writer’s room, without the stress of financial instability should his show get cancelled.

Mark Hentemann is a writer, voice actor and producer, working on shows like Family Guy, Bordertown and The Late Show with David Letterman. He is a two-time Primetime Emmy award-nominee for Outstanding Animated Program and Outstanding Comedy Series. In addition, Mark is an avid real estate investor, cofounding the multifamily investment company Quantum Capital, a firm focused on value-add assets in centrally located, growing neighborhoods of major metropolitan areas. To date, he has a portfolio of 185 units and earns $1M in passive income.

Today, Mark joins me to explain how a desire for financial security led him to invest in a duplex soon after his move to LA. He describes the moment when he finally understood the power of real estate and speaks to the advantages of house hacking as strategy to get started. Mark also shares his belief in economies of scale, discussing how he finds deals that make sense in Los Angeles. Listen in to understand why Mark is getting into syndication and learn how you can follow in his footsteps, leveraging multifamily real estate investment to pursue the work you love!

Key Takeaways

How Mark got involved in real estate

  • Starving artist in NYC, needed financial security
  • Move to LA, invest Family Guy income in duplex

Mark’s first real estate deal

  • Duplex ‘rough around edges’ in improving area
  • Listed at $380, won bidding war for $435K
  • Sold in 2005 after remodel for $1.27M

When Mark realized the power of real estate

  • Refi on duplex reduced interest from 7½% to 4¾%
  • Rent covered mortgage, insurance, taxes + utilities

The advantages of house hacking

  • Provides hedge against economic volatility
  • Add value to force appreciation

Mark’s belief in economies of scale

  • Realized benefit of larger multifamily properties
  • Found and purchased 6- and 14-unit buildings

How real estate impacts Mark’s quality of life

  • Takes financial strain out of equation
  • Write for fun (without stress of economic instability)

Mark’s perfect day

  • Write jokes and laugh during day
  • Network and look for properties

How Mark finds deals in the LA market

  • Chronic undersupply of B-class multifamily
  • Look for 40-year-old buildings in up-and-coming areas
  • Focus on low cost per ft2 (price comparable to land)

Mark’s experience with syndication

  • Motivated seller with 3 buildings ($10M deal)
  • Committed, then scrambled to find investors

Mark’s advice to aspiring multifamily investors

  • Take advantage of house hacking
  • Find 2- to 4-unit value-add in area on rise

Connect with Mark

Email markhentemann@me.com

Quantum Capital

Resources

Keith Weinhold on ABI EP034

Tyler Sheff on ABI EP072

Michael’s Mentoring Program

Invest with Michael

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

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_150.mp3
Category:Commercial Real Estate -- posted at: 8:38pm EDT

“I want to see the world. I want to experience life because I almost lost mine.”

What if something happened and you could no longer work? How would you and your family survive? AJ Osborne found himself in that precarious position 18 months ago, but because he had sustainable passive income from real estate investing, he was able to focus on healing and continue to support his family as he recovered. Real estate saved his financial life.

AJ had been leading a busy life, running his state’s largest brokerage firm as well as a real estate company when he fell ill with a disease called Guillain-Barré. It left AJ completely paralyzed and comatose, and he spent several months on life support. Since then, he has had to relearn how to walk, use his arms and communicate. Fortunately, his 1M ft2 self-storage portfolio allowed AJ to focus on healing while his passive income continued to grow. The experience inspired him to create Cash Flow 2 Freedom, a platform where AJ teaches others how to generate cashflow and achieve financial freedom.

Today, AJ joins me to share the story of his battle with Guillon-Barré, explaining how the experience changed his priorities and how the passive income from his real estate portfolio sustained his family through the ordeal. He discusses what motivated him to pursue real estate investing in the first place and shares his approach to buying and managing self-storage facilities. Listen in for AJ’s insight on the difference between being rich and wealthy—and learn how to leverage real estate investing to achieve the kind of financial freedom that can save your life!

Key Takeaways

AJ’s devastating health crisis

  • Paralyzed and comatose, months on life support
  • Guillain-Barré syndrome rendered helpless

How the experience changed AJ

  • Changes outlook on what’s important
  • Reprioritize life (family moves to top)

What became most important to AJ

  • Time with children
  • Basic functions (e.g.: walk on own)

How AJ’s real estate portfolio facilitated his recovery

  • Bought family time and freedom
  • Paid bills while he focused on getting better

What might have happened without real estate

  • Disability income was 25% of previous salary
  • Would have had to downsize, wife take job

How AJ got into commercial real estate

  • Frustrated by fluctuation in consulting business
  • Needed strategy to compound returns

AJ’s distinction between rich and wealthy

  • Wealthy own assets and revenue coming in
  • Rich have high income but owned by source

AJ’s approach to investing in self-storage

  • Business rather than real estate asset
  • Turn around by dialing up value and income

How AJ turned around a state-owned facility

  • Bought at auction for $3.8M
  • Eliminated 30% of tenants by doubling price
  • Sold products, focused on customer service
  • Doubled income in 6 months, worth $9M

How AJ manages his self-storage facilities

  • Hire and train rock star management team
  • Built out policies and procedures over time

The differences among small, medium and large facilities

  • Expenses similar regardless of size
  • Sweet spot between 60K and 150K ft2

What inspired AJ to start Cash Flow 2 Freedom

  • Real estate saved family’s financial life
  • Help others gain freedom with passive income

AJ’s advice for aspiring real estate investors

  • Learn from mistakes
  • Get to state of financial freedom on own

Connect with AJ

Cash Flow 2 Freedom

Resources

Michael’s Mentoring Program

Invest with Michael

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

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_149.mp3
Category:Commercial Real Estate -- posted at: 12:05pm EDT

As a multifamily syndicator, one of your most important responsibilities lies in building long-term trust with investors. And when you are dealing with a handful of high-net-worth individuals, it is fairly easy to keep track of who has committed to a deal, signed the appropriate documents and wired their money. As you scale your real estate business, however, it becomes increasingly challenging to communicate consistently and manage larger and larger numbers of investors. But it can be done by automating your workflow process.

Josiah Mann is the founder and CEO of Investor Deal Room, a modern, white-label investor management platform that supports real estate syndicators in raising capital and streamlining their back office through automation. Businesses using the Investor Deal Room software have raised over $40M in private capital and represent nearly $500M in assets under management.

Today, Josiah joins me to walk us through the process of onboarding multifamily investors. He explains how to build your database by way of content marketing and create a lead magnet that addresses investor pain points. Josiah describes the step-by-step process of tracking leads through closing and shares best practices for communicating with investors via quarterly reports and individual statements. Listen in to understand the value of automating investor relations as you scale your business and learn how Investor Deal Room can help you build long-term trust with investors!

Key Takeaways

Josiah’s insight on marketing to investors

  • Contact form on website + email newsletter
  • Content marketing w/ CTA to build database

How to design free resources for investors

  • Think from their perspective
  • Poll to find out pain points

The process of tracking investors through closing

  1. Investor marketing packet (e.g.: webinar, email)
  2. Create spreadsheet to track leads, commitments
  3. Subscription documents + wiring instructions
  4. Send confirmation letter once money in escrow

The best practices for syndicators AFTER closing

  • Processes in place for consistent communication
  • Quarterly reports with property updates
  • Statements for individual investors

How Investor Deal Room automates investor relations

  • Investor management solution to update basic info
  • Raise capital through portal for each new offering
  • One-click branded welcome letters + statements

How Investor Deal Room addresses joint venture partners

  • Dashboard for money raiser to manage their investors
  • Cobranding on site (investor sees both logos)

Connect with Josiah

Investor Deal Room

Resources

MailChimp

Investment Tracker Spreadsheet

DocuSign

Michael’s Mentoring Program

Invest with Michael

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

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_148.mp3
Category:Commercial Real Estate -- posted at: 12:12am EDT

As a financial planner, Jason Harris helped clients prepare for retirement. At the same time, he was building a real estate portfolio to replace his W-2 income. And last Thursday, he retired from financial planning (in his early 30’s!) to pursue investing full-time. What did that journey look like? What strategies did Jason and his wife, Carrie, use to generate passive income with multifamily?

Jason and Carrie started investing in real estate in 2010. Nine years later, they have a portfolio of 75-plus units and the couple is building a consulting business known as Creative Gains. With his background in financial planning, Jason offers clients a unique perspective on diversifying their portfolio with real estate. Jason and Carrie also run a successful property management company.

Today, Jason joins me to discuss his last day of work as a financial planner and explain how his friends and family reacted to his decision to pursue real estate full-time. Jason walks us through his journey to financial independence, from the FHA loan he used to buy his first fourplex to the creative strategies he and his wife leveraged to build their portfolio. Listen in for Jason’s unique insight on making real estate investing a part of your retirement plan and get his advice around making the leap from a W-2 job to full-time investor!

Key Takeaways

Jason’s last day of work as a financial planner

  • Surreal, scary and exciting
  • Confusion around what to do with time

What’s next for Jason

  • Sharing ideas with others (consulting, book)
  • Maintain property management company

How Jason’s friends and family reacted to his transition

  • Mixed reactions (e.g.: ‘too young to leave good career’)
  • Few colleagues understand assets outside securities

Jason’s journey to financial freedom

  • Started exploring real estate in 2010
  • Bought fourplex with FHA loan
  • Cashflow for down payment on next property

Why Jason and his wife chose not to expand their lifestyle

  • Dad laid off twice in teen years
  • ‘Sacrifice today for better tomorrow’

The fundamentals of FHA loans

  • Must own/occupy property to get financing
  • 4% down to live there, 28% otherwise

The creative strategies Jason used to build his portfolio

  • Wife got license, use commission as down payment
  • Hard money loan for value-add opportunity (BRRRR)
  • Partner on larger deals
  • Seller financing
  • Portfolio loans

Jason’s advice for transitioning from W-2 to full-time investor

  • Know your numbers (passive income net of all expenses)
  • Consider ability to qualify for loans without W-2 income

How Jason might have accelerated his timeline

  • Think bigger (stayed within 20-unit range)
  • Restricted from syndication by license as financial planner

Jason’s insights for passive investors

  • Diversify with ROTH IRA, 401(k) + real estate portfolio
  • Considerable tax benefits associated with multifamily

Connect with Jason

Creative Gains

Email creativegainsllc@gmail.com

Call (801) 362-0784

Resources

Keith Weinhold on ABI EP034

Tyler Sheff on ABI EP072

Invest with Michael

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

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_147.mp3
Category:Commercial Real Estate -- posted at: 12:05am EDT

As multifamily syndicators, we are focused on finding quality deals and raising money. But securing the financing you need can make or break a real estate deal and reaching out to your lender early in the process will save you a great deal of time—and keep you on track to close as planned. So, what do you need to know about multifamily financing?

John Brickson serves as Director at Old Capital, a Dallas firm that specializes in arranging financing for commercial real estate investors across the country. John’s team focuses on $1M to $30M loans on multifamily properties, and in 2017, Old Capital closed more than $750M in loans. John’s market insight and established lender and equity relationships afford his clients a tailored, best-in-class financing solution.

Today, John joins me to offer insight on interest rates in 2019. He explains the difference between working with directly with a lender versus using an intermediary and describes why it’s safer to invest in properties that qualify for Fannie Mae or Freddie Mac. John also shares advice around financing smaller deals and covers the pros and cons of taking out a bridge loan. Listen in to understand the most common mistakes investors make when it comes to financing multifamily deals and learn why you should get your lender involved early in the process!

Key Takeaways

John’s insight on interest rates

  • Movement in last quarter of 2018
  • Lock in long-term, fixed rate financing

The difference between direct lenders and intermediaries

  • Direct lender = work with bank to arrange loan on own
  • Intermediary = broker (save time, keep closing on track)

John’s take on the best properties for multifamily investors

  • 5-units and above
  • Stabilized and cashflowing (qualify for Fannie/Freddie)
  • Target loan size $1.5M

John’s advice around financing smaller deals

  • Finance acquisition + rehab with bank loan
  • Increase value of property to >$1M
  • Do cash-out refi within 12 to 24 months

The purpose of a bridge loan

  • Finance acquisition when property not stabilized
  • Sell or cash-out refi with Fannie/Freddie once stabilized

The current terms for bridge loans

  1. Banks: <$5M = 75% LTV, 5.5% (full personal guarantee)
  2. Debt funds: $5-$10M + 80%, 5.5%

The risk associated with bridge loans

  • Shorter term, reach maturity in 2 to 3 years
  • Could be in recession, few lending options for refinancing

The best candidates for bridge loans

  • Investors with significant experience
  • Investors with significant net worth or cash

How lenders handle loan proceeds earmarked for rehab

  • Submit draw request (proof of work complete)
  • Lender pays contractors directly

The most common multifamily financing mistakes

  • Choose yield-maintenance prepay over step-down
  • Fail to think about exit
  • Overlook agency financing options
  • Wait until LOI accepted before reach out to lender

Connect with John

Old Capital

Call (913) 638-8871

Email jbrickson@oldcapitallending.com

Resources

Michael Becker on ABI EP064

Old Capital Podcast

Michael’s Mentoring Program

Real Estate Guys Goal Setting Retreat

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

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_146.mp3
Category:Commercial Real Estate -- posted at: 7:42pm EDT

When you hunt, the prey runs away. But when you fish, you simply put a lure in the water and let the fish come to you. Tim Bratz likens raising private money to fishing: You provide value through education and intentional conversation—and then wait for the investors to come to you.

Tim is the owner of CLE Turnkey, a real estate investment firm focused on apartment buildings, vacation rentals and other commercial properties in Ohio, South Carolina, Georgia, Florida and Texas. His current portfolio consists of 2K units with a value of over $100M. Tim also offers coaching and mentoring through Commercial Empire.

Today, Tim joins me to explain how working as a commercial broker sparked his interest in investing and share the story of buying his first property—with a credit card! He discusses his transition from flipping, wholesaling and single-family rentals to multifamily buy-and-holds as well as his mindset shift around hiring a team. Listen in to understand the current opportunity around raising capital for multifamily and learn Tim’s approach to luring passive investors rather than chasing them.

Key Takeaways

How Tim got interested in real estate investing

  • Worked as commercial agent in NYC
  • Ran numbers on landlord’s profit

How Tim bought his first duplex on a credit card

  • Asked for $100K credit limit, received $15K
  • Flipped property in 75 days for $13K profit

Tim’s transition to multifamily buy-and-hold

  • Connected with investors ($1M to work with)
  • Found 8-unit building in C-class area
  • Apartments scalable, financing easier
  • Portfolio of 2,000 units in 42 months

Why raising capital is the best use of your time

  • Finance commands all other industries
  • ‘Control the money, control the deal’

Tim’s mindset shift around building a team

  • Hesitant to hire assistant for $35K/year
  • Revenue increase from $100K to $400K/year

The activities Tim outsourced first

  • Dry cleaning, car wash, post office, etc.
  • Marketing and inspections

Tim’s first six-figure hires

  • COO, CLO = engines that run business
  • $48K salary + profit share based on role

The current opportunity around raising money

  • Uncertainty in market, volatility
  • Shift from stocks to hard assets

Why multifamily is the safest investment

  • More control than stock market
  • Limited risk in B, C+ properties
  • Invest for cashflow vs. speculation

Tim’s approach to potential passive investors

  • Educate around opportunities (e.g.: self-directed IRA)
  • Fish rather than hunt, intentional conversations

What investors are looking for

  • Collateral and ROI
  • Credibility, fortitude

Connect with Tim

Tim on Facebook

CLE Turnkey

Commercial Empire

Resources

Invest with Michael

The Ultimate Guide to Buying Apartment Buildings with Private Money

Michael’s Mentoring Program

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

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_145.mp3
Category:Commercial Real Estate -- posted at: 3:25pm EDT

So, you’re on the phone with a real estate broker or a potential investor. Chances are, they’re Googling you to see if you’re the real deal. If they don’t find a website, it’s unlikely they’ll take you seriously. And if they find a poorly designed site, that’s even worse! A quality website affords you instant credibility as a syndicator. But is there an easy way to build a good one without investing a lot of time or money in the process?

Todd Heitner is the founder of Apartment Investor Pro and Done Deal Websites. He supports real estate investors in building professional-quality websites. Todd’s service includes beautiful design, well-written content and quick setup, giving you the credibility and systems you need to connect with brokers and investors at a fraction of the cost.

Today, Todd joins me to explain how a professional website affords syndicators instant credibility. He walks us through the features of a quality website, from domain name to design to content to maintenance. Listen in for Todd’s insight on the value of automation in building relationships with investors and learn how Apartment Investor Pro can help you set up a website in just one day!

Key Takeaways

How a website provides credibility

  • Expectation for all businesses
  • Professional site builds trust

The elements of a quality website

  • Domain name to match business
  • Good web hosting service
  • Design (overall look and feel of site)
  • Appropriate plugins
  • Consistent content
  • Up-to-date maintenance

The value of website automation

  • Saves time (e.g.: connection to CRM)
  • Consistency of experience (i.e.: email sequence)
  • Stay top-of-mind with investors

The features of Apartment Investor Pro

  • Professional look and feel
  • Allows for customization
  • Includes all but domain name
  • Forms to capture investor info

Connect with Todd

Apartment Investor Pro

Resources

WordPress

WP Engine

Fiverr

The Divi Builder

MailChimp

Constant Contact

AWeber

ActiveCampaign

Michael’s Mentoring Program

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

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_144.mp3
Category:Commercial Real Estate -- posted at: 5:08pm EDT

Who are you? Is your identity tied up in money? Another person? What you do for a living? If so, you are treading on dangerous ground, as these externalities can go away at any time. So, how do you define your WHY and create a culture in alignment with your core values? How do you awaken to your true purpose and potential? How do you live a life of significance and build a legacy you can be proud of?

Keith Elias is a former NFL running back who played for the New York Giants and Indianapolis Colts from 1994 through 1999. He earned All-American honors playing college ball at Princeton, where he established school, conference, and national records. Today, he supports NFL players in making the transition to retirement, helping them awaken to their purpose and navigate life after football.

Keith joins me on the podcast today to share his experience as an NFL player and his realization that there was more to life than football. He discusses why people struggle with life transitions, describing the risk in tying your identity to external things and the significance of defining your WHY. Keith offers advice around defining your core values and then using them as a guide in the decision-making process. Listen in for Keith’s insight on building a legacy and learn how to live a life of significance—starting right now!

Key Takeaways

Keith’s experience as an NFL player

  • ‘Accelerated life’
  • Popularity, money

Keith’s realization around life beyond football

  • Lack of spiritual purpose
  • Began search for something deeper

Why people struggle with life transitions

  • Identity tied to external things (i.e.: money, other person)
  • Don’t know purpose beyond job title

The importance of defining your WHY

  • No one immune from storm
  • Purpose provides foundation

Keith’s advice around defining your identity

  • Ask why you were created
  • Align culture with core values

Keith’s mission to awaken people to their truth

  • Ask big questions (spirituality)
  • Realize ‘life is bigger than me’

How to incorporate your values in everyday life

  • Define priorities, values (e.g.: truth, compassion)
  • Use to inform decision-making

Keith’s insight on building a legacy

  • Springs from identity, significance
  • Ask ‘Who can I help right now?’

Connect with Keith

Email keithelias@verizon.net

Resources

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

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

Real Estate Guys Create Your Future 2019 Goal Setting Retreat

The Financial Freedom Summit

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

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_143.mp3
Category:general -- posted at: 7:55pm EDT

Is 2019 the year you finally get on the road to financial freedom with multifamily real estate? If that’s your goal, there are a few simple things you can do to totally crush it this year.

Today on the podcast, I’m sharing my top 3 tips for achieving success in 2019. I start with goal-setting, explaining how to get clear on what you want to achieve and narrow down your objectives to no more than 5 measurable aims with specified time frames.

I go on to discuss making time to work toward your goals, describing the strategies I use to batch like activities and schedule intentional blocks to advance my top priorities for that week. Listen in for insight on taking tiny action and learn how to track, recognize and celebrate the small WINS that put you on the road to financial freedom with multifamily real estate!

Key Takeaways

Tip #1—Get clear on your goals

  • Identify 1 to 3 things that make others easier
  • Define daily, weekly, 90-day and yearly goals
  • State in present tense with time frame

Tip #2—Make time

  • Schedule intentional blocks to work on goals
  • Batch similar activities
  • Establish morning routine
  • Focus on WHY = prioritize time

Tip #3—Take tiny action

  • Focus on next 3 things, track progress
  • Recognize and celebrate small WINS
  • Activity over outcome in beginning

The value of a strong support system

  • Accountability partners
  • Accelerate timeline

Resources

Michael’s Mentorship Program

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

Google Keep

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

Apartment Investors Network Facebook Group

Michael on Facebook

Michael on Instagram

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

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_142.mp3
Category:Commercial Real Estate -- posted at: 8:49pm EDT

In a perfect world, we could syndicate a multifamily property and then sit back and wait for the checks to roll in. But in the real world, we must oversee the apartment buildings we’ve purchased and make sure they perform according to plan. What all is involved in asset management? What is the best way to communicate with investors? And how does your property manager’s competence impact the amount of work that falls to you?

Drew Kniffin is the President of Nighthawk Equity, a firm committed to helping real estate investors achieve financial freedom through practical education and high-quality multifamily investment opportunities. Drew became an ‘accidental landlord’ in 2008 when he was unable to sell his condo and rented it instead. But it wasn’t until 2015 that Drew shifted his focus to small apartment buildings. Eight months and three deals later, he was able to quit his job and pursue real estate full-time. Now, Drew helps manage a 1K-unit portfolio through Nighthawk, and he also serves as a mentor with The Michael Blank organization.

Today, Drew joins me to share his definition of asset management and explain the syndicator’s role in finding problems to solve during the acquisition process. He describes the significance of a good property manager, discussing how to gauge if a property manager is the right fit, what you should expect from a property manager, and how replace a property manager if necessary. Drew also covers reporting, offering insight around the level of detail to expect from your property manager as well as the key performance indicators a syndicator should monitor. Listen in for Drew’s advice on communicating with investors and learn what aspects of asset management can be outsourced as you scale!

Key Takeaways

Drew’s definition of asset management

  • What you do once bought property
  • Make sure performs according to plan

What to look for in the acquisition process

  • Capable, competent property manager
  • Problems that can be solved

How to find a good property manager

  • Ask for stabilized profit and loss projections
  • Learn how report, communicate with owners

What makes for a great property manager

  • Execute on marketing property, managing to budget
  • Less than 10 minutes/month to review financials

The reasonable expectations for a property manager

  • Online listings, ads competent
  • Changes made first time asked
  • Interested in communicating

The fundamentals of reporting

  • Consult with bookkeeper, accountant re: details
  • Know investors, report to desired level of detail

How to determine if a property manager is not the right fit

  • Micromanaging on smaller level as time goes on
  • Change after 2 months if ‘managing the manager’

The key performance indicators to monitor

  1. Net occupancy
  2. Punch list items
  3. Actual vs. budget

How to keep a property manager honest

  • Require plan to deliver on budget
  • Quarterly audits

Drew’s advice on replacing a property manager

  • Transition in middle of month
  • Know what files need to transfer (e.g.: rent rolls, leases)
  • Don’t use 30-day earn-out, bring in new team on Day 1

The fundamentals of investor relations

  • Deliver ongoing communication (monthly report)
  • Provide high-level qualitative and financial summary

How to communicate with investors when things go wrong

  • Build long-term trust by delivering bad news
  • Be honest but have plan and follow up

The value in uniformity of reporting as you scale

  • Standardization affords control
  • Software streamlines format, provides investor portal

How syndicators should spend their time

  1. Raising money
  2. Finding deals
  3. Operations/systems

The asset management tasks that VAs can do

  • Keep investor information current
  • End-of-month reporting

Connect with Drew

Nighthawk Equity

Drew at Michael Blank Mentorship

Resources

Drew Kniffin on ABI EP027

The Financial Freedom Summit

The Michael Blank Deal Desk

Google Sheets

Upwork

Jing

Loom

Invest with Michael

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

Michael’s Website

Michael’s Live Training Webinars

Michael’s Coaching Program

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_141.mp3
Category:general -- posted at: 6:42pm EDT

If you follow the advice of a traditional financial planner, you are likely counting on a 401(k) and investments in the stock market to sustain you through retirement. Yet those vehicles are both subject to market volatility and assume that the tax rate will remain the same for the foreseeable future. Rebecca Walser is NOT your traditional financial advisor, and she has designed a better strategy for building long-term wealth—a strategy that includes investing in multifamily real estate.

Rebecca is a tax attorney, wealth strategist, Certified Financial Planner, and one of Investopedia’s 2018 Top 100 Most Influential Financial Advisors. She has combined her expertise in law and finance to design a unique approach to building and sustaining wealth that conventional advisors won’t consider. Rebecca has been featured in Bloomberg Business, The Boston Globe, and The Miami Herald, among many other media outlets, and she is the author of the groundbreaking book, Wealth Unbroken: Growing Wealth Uninterrupted by Market Crashes, Taxes, and Even Death.

Today, Rebecca joins me to explain why the 401(k) is a big mistake (unless your employer matches funds) and share her insight around deferring taxes until retirement. She covers the best alternatives to the 401(k), the greatest threats to building wealth, and the non-traditional asset classes that aren’t subject to market volatility. Listen in for Rebecca’s take on why traditional financial advisors don’t recommend real estate investments and learn the three key takeaways from her bestseller, Wealth Unbroken.

Key Takeaways

What sets Rebecca apart from other financial advisors

  • Ten years of experience in finance industry
  • Advanced degree in tax law

Why Rebecca considers the 401(k) a big mistake

  • Hasn’t changed since inception in 1981
  • Boomers retiring + likely tax increase

The danger in deferring taxes until retirement

  • Assumes you will earn less, tax rate stays same
  • Taxes currently at lowest rate since 1930’s

Rebecca’s top alternatives to the 401(k)

  • Roth IRA
  • Cash value life insurance

The greatest threats to building wealth

  • Market volatility (correction coming)
  • Reported returns don’t account for lows

Rebecca’s best strategies to avoid market volatility

  • Real estate
  • Short-term CDs
  • Bonds (held to maturity)

Why traditional financial advisors avoid real estate

  • Don’t have control or feel equipped
  • Don’t bother with strategies outside norm

The key takeaways from Wealth Unbroken

  1. Can’t afford lows of 100% market-based portfolio
  2. Convert 401(k) to Roth NOW while taxes ‘on sale’
  3. Leverage non-traditional asset classes (non-negotiable #)

Connect with Rebecca

Walser Wealth

Resources

Wealth Unbroken: Growing Wealth Uninterrupted by Market Crashes, Taxes, and Even Death by Rebecca Walser

Patrick Donohoe on ABI EP128

Heads I Win, Tails You Lose: A Financial Strategy to Reignite the American Dream by Patrick H. Donohoe

Invest with Michael

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

Michael’s Website

Michael’s Live Training Webinars

Michael’s Coaching Program

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_140.mp3
Category:Commercial Real Estate -- posted at: 6:40pm EDT

Let’s say you have a single-family rental that makes you $100 a month. What if you took advantage of a 1031 exchange to purchase a 5-unit building that generates a dramatically higher monthly income of $1K? When Michael Zuber realized the potential cashflow of multifamily investing and the lack of competition in the market for small apartment buildings, his mindset shifted. He went from seeing real estate as a smart place to keep his money to an opportunity to achieve financial independence.

Michael is a full-time real estate investor who specializes in 5- to 20-unit apartment buildings. After 15 years of real estate investing, Michael quit his W-2 job to start One Rental at a Time, a company focused on helping busy professionals begin their own journey to financial freedom. Michael’s goal is to help 1K people learn the fundamentals of real estate investing through his educational platform. He is also the author of the book, 15 Year Journey to Financial Freedom Via One Rental at a Time

Today, Michael joins me to explain how losing six figures in the stock market led him to real estate investing and describe his initial strategy to buy and hold several single-family homes. He discusses his realization around the cashflow potential of small multifamily properties, sharing how he leveraged the 1031 exchange to transition from eight to 80 units in 18 months—right before the crash in 2008. Michael also offers insight around his strategy during the crash, how he is preparing for the likely market correction, and how he might have accelerated his journey to financial freedom. Listen in to understand how Michael opened his mind to multifamily and learn how he can help you through his new platform, One Rental at a Time.

Key Takeaways

How Michael got into real estate

  • Lost six figures in stock market in 48 hours
  • Year of research, bought first house

Michael’s initial real estate plan

  • Wanted security didn’t have w/ W-2 job
  • Buy and hold (while working full-time)

How Michael financed his first deals

  • Put own money down on first three houses
  • Refinanced for capital to buy more
  • Acquired seven houses + duplex

Michael’s transition to multifamily

  • Cashflow potential of small multifamily
  • 1031 all eight houses prior to crash
  • From eight to 80 units in 18 months

The details of Michael’s first multifamily deal

  • Looking for deals on local MLS, Loopnet
  • Found 5-unit through agent relationship

Michael’s mindset shift

  • Assumed multifamily above skill set
  • Little competition in 5- to 20-unit range

Michael’s strategy during the crash

  • Bought everything that made sense
  • Structure of deal most important
  • Solve problems for owners, banks

Why Michael waited to quit his job

  • Ego, identity wrapped up in job
  • Need something to commit to

Michael’s One Rental at a Time YouTube Channel

  • Educate busy professionals on investing
  • Allows to do good and track outcomes

How Michael could have accelerated the process

  • Identify underserved market sooner
  • Raise private money much earlier

How Michael is preparing for the market correction

  • Continue to play in affordable housing
  • Raising cash, selling weaker properties

Michael’s advice for aspiring multifamily investors

  • Get four rentals (two-year timeline)
  • Finance first on own or with partner
  • Track record to raise money for next deal

Connect with Michael

One Rental at a Time on YouTube

Resources

15 Year Journey to Financial Freedom Via One Rental at a Time by Michael Zuber

Loopnet

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

Michael’s Website

Michael’s Live Training Webinars

Michael’s Coaching Program

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_139.mp3
Category:general -- posted at: 5:34pm EDT

While syndication is the most popular way to raise money to fund a multifamily deal, it is not the only option. A resourceful real estate investor can leverage a number of other creative possibilities. Jake Stenziano and Gino Barbaro have built an impressive portfolio without syndicating a single deal, but now they are adding the strategy to their repertoire. What drove them to add ‘investor relations’ to their skill set? In what situation might a different approach, like owner financing, be appropriate? What are the pros and cons of syndication?

Jake and Gino are the co-founders of Jake & Gino, LLC, an educational platform that leverages their expertise in multifamily real estate to help others attain financial freedom by way of apartment building investing. A few short years ago, Jake and Gino were a pizza guy and a drug rep; today, they own 900-plus multifamily units. They share their creative approach on the Wheelbarrow Profits Podcast, and they are the co-authors of the Amazon bestseller, Wheelbarrow Profits: How to Create Passive Income, Build Wealth, and Take Control of Your Destiny Through Multifamily Real Estate Investing.

Today, Jake and Gino join me to explain how they were able to build a portfolio without syndication, discussing the benefits of using community bankers and partnering with high-net-worth individuals. They share the case study of a 281-unit owner-financing deal and describe how good broker relationships can reveal creative financing opportunities. Jake and Gino also address the differences between community bank and agency debt and the value in understanding the story behind every deal. Listen in for insight around why Jake and Gino are adding syndication to their list of options and learn the advantages—and the drawbacks—of syndicating a multifamily deal!

Key Takeaways

The advantage of using community bankers

  • Build in rehab budget
  • Much less cash down (15-20%)

How to address the down payment

  • Partner with high-net-worth individual
  • Do day-to-day operations for equity

Jake & Gino’s owner-financed 281-unit deal

  • No money in, walk away with $150K
  • Facilitated by track record

The right conditions for owner financing

  • Understand seller’s motivation
  • Every deal has own story

Why Jake & Gino are syndicating now

  • Vision to scale requires capital injection
  • Comfortable speaking to investors

The disadvantages of syndication

  • Less equity (10% vs. 30%)
  • More work on front-end
  • Meet projections vs. ‘do right thing’
  • Investors expect liquidity event in year five

The difference between community bank and agency debt

  • ‘Ease of doing business’ with community bank
  • Community bank requires personal guarantee
  • Agency debt = nonrecourse, low interest rates

What surprised Jake & Gino about syndication

  • Timeline once LOI signed
  • Can’t accept $ until docs in place

How Jake & Gino raised money so quickly

  • Position as experts in space
  • Live events (e.g.: investor dinner, meetup)

What’s next for Jake & Gino

  • Continue to look for big deals
  • Grow education platform (book in 2019)

Connect with Jake & Gino

Jake & Gino’s Website

Wheelbarrow Profits Podcast

Jake & Gino on Facebook

Jake & Gino on Instagram

Email gino@jakeandgino.com

Resources

Wheelbarrow Profits: How to Create Passive Income, Build Wealth, and Take Control of Your Destiny Through Multifamily Real Estate Investing by Jake Stenziano and Gino Barbaro

Gino on Apartment Building Investing EP052

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

Michael’s Website

Michael’s Live Training Webinars

Podcast Show Notes

Review the Podcast on iTunes

Partner with Michael

Direct download: ABI_138.mp3
Category:Commercial Real Estate -- posted at: 4:35pm EDT

“When you chase money, money runs. When you’re focused on mission, you attract money.”

To reach the highest levels of success in real estate, it’s important to have your mind—and heart—in the right place. If your WHY is about more than just you, if your mission has meaning, business will come to you. So, what’s driving you?

Kent Clothier is the founder and CEO of Real Estate Worldwide, a real estate software and education platform that offers aspiring investors a curriculum of proven systems and technology as well as national data on real estate cash buyers and private lenders. A serial entrepreneur and digital marketing expert, he also owns and operates the multimillion-dollar brands Real Market Experts, 1-800-SELL-NOW FREE, Find Cash Buyers NOW and Find Private Lenders NOW.

Today, Kent joins me to explain how his definition of success has shifted from a focus on money to a focus on impact. He offers insight on designing a meaningful mission and going all-in to reach your goals—without sacrificing your quality of life. Kent describes how he has created a life of balance, sharing the massive lessons learned from losing everything after 13 years of running his first business. Listen in for Kent’s advice on becoming a student of scale and learn the value of people, processes and technology in building a fulfilling real estate business that complements your personal life!

Key Takeaways

Kent’s background in real estate

  • Started as wholesaler in 2002
  • Turnkey operation (completed 5K flips to date)
  • Runs software, education business (50K students)

How Kent’s definition of success has changed

  • Money was driving factor 10 years ago
  • Massive windfall as shift in focus to mission

What inspired Kent to focus on mission

  • Uncle/mentor passed away at 61
  • Standing for something attracts people

Kent’s insight on the necessity of going all-in

  • Capable of much when back against wall
  • Success connected to meaningful mission

Kent’s take on the difference between failure and success

  • NEVER about how much you know
  • Failing is inevitable but doesn’t define you
  • ‘I will simply never quit’

How Kent connects with his WHY every day

  • Will somebody say I mattered?
  • ‘This is where my competition will quit’

How Kent creates a life of balance

  • High quality of life (e.g.: dream house on ocean)
  • Monthly vacation, walk daughters to school
  • In business of ‘creating moments’

Kent’s massive lesson around balance

  • Sacrificed family, personal life in first business
  • Walked away from company out of arrogance
  • Tried to pirate employees, customers
  • Got sued and lost everything
  • Got serious about systems with new business

Kent’s advice around scaling your business

  • Good people, systems around you
  • Document processes as build team
  • ‘Elegance in simplicity’

Kent’s Big Hairy Audacious Goal

  • Launch new business (Cribs)
  • Go toe-to-toe with Opendoor

Connect with Kent

Kent’s Website

Kent on Facebook

Kent on Instagram

Resources

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

Damion Lupo on Apartment Building Investing EP079

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

Michael’s Live Training Webinars

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_137_v2.mp3
Category:Commercial Real Estate -- posted at: 5:11pm EDT

Once upon a time, Michael Beeman was struggling. He had a blended family of seven kids, and his corporate salary of $60K was not making ends meet. Michael started a side business splitting firewood, and he was bringing in an additional $15K—but he wanted to do more than just survive. Michael wanted his family to thrive. So, he started listening to multifamily podcasts and real estate audiobooks while he was cutting and delivering firewood.

By May of 2017, Michael had saved up $12K. His best friend and his mom contributed $20K each, and with $52K, he started looking for his first deal. Today, Michael has a 64-unit portfolio, and he is about to close on a 61-unit deal. The best part? Michael recently put in his two weeks’ notice so that he can pursue real estate investing full-time.

On this episode of Apartment Building Investing, Michael sits down with me to share the details of his current 61-unit deal, discussing the value of building broker relationships for introductions to pocket listings. He explains how he began his investing career just 18 months ago and his plans to quit his corporate job at the end of the year. Michael describes how enthusiasm for multifamily investing along with creativity and perseverance helped him find his first deal and overcome the challenges he’s faced along the way. Listen in for insight on building a real estate team with the right talents and attitude and learn how Michael’s ‘never quit’ philosophy took him from splitting firewood to get by to full-time real estate investor in under two years!

Key Takeaways

Michael’s current 61-unit deal

  • Pocket listing through broker
  • $50K away from $500K raise

Michael’s real estate journey

  • Married 5 years ago (7 kids)
  • Side business splitting firewood
  • Listen to podcasts, audio books
  • Start with $52K 18 months ago

How Michael found his first deal

  • Share enthusiasm for investing
  • Friend knew of 6-unit building
  • Paid $60K (100% financing)
  • Put in another $40K

Michael’s insight on the value of creativity

  • No money to acquire 5-unit deal
  • Borrowed from family at 10% interest
  • Must be willing to take risks

Michael’s setback in hiring the wrong contractor

  • Turn large house into triplex
  • Unqualified, ask for more money
  • Wife identified competent crew member
  • Established long-term relationship

How Michael built a talented team

  • Started holding company with contractor
  • Property management company with investor
  • Look for right talents and attitude

How Michael overcame obstacles

  • ‘American Dream’
  • Just don’t quit

Michael’s take on quitting his corporate job

  • Continue to work hard but on own terms
  • Spend more time with wife and kids

Connect with Michael

Michael on LinkedIn

Michael on Facebook

Email michaelbeeman@beemanandsons.com

Call (217) 508-8185

Resources

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

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

Direct download: ABI_136.mp3
Category:general -- posted at: 9:31pm EDT

So, you want to scale your multifamily business. What are your options? One strategy involves leading your own real estate investing meetup. But how do you get a significant number of people to attend that first meeting? Are there hacks to help you become popular FAST? And how do you follow up with the group when the time comes to raise money for a new opportunity?

Adam Adams is a syndicator with BlueSpruce Holdings, a multifamily real estate investment firm focused on purchasing apartment buildings in emerging markets. He repositioned his first apartment community as a property manager in 2007 and went on to purchase his first multifamily property the same year. Adam has managed a number of single-family fix and flips, and today, he holds 100-plus multifamily rental doors. He is also the host of the Creative Real Estate Podcast and the organizer of Colorado’s most active real estate meetup group.

Today, Adam joins me to discuss the recession’s impact on his multifamily career and his return to real estate in 2015. Adam walks us through his transition from single family remote fix and flips to apartment buildings, offering advice to aspiring multifamily investors around aligning with an experienced operator and ‘wearing one hat.’ Listen in for insight on the benefits of leading your own real estate meetup group and learn how Adam has leveraged meetups to raise $4.4M and become a community leader in the space!

Key Takeaways

Adam’s background in real estate

  • Dad multifamily, storage unit investor
  • Worked as property manager in college
  • Bought triplex in 2008 but hit by crash
  • Return to real estate investing in 2015

The recession’s impact on Adam

  • Less and less work for handyman company
  • Tenant-employees couldn’t pay rent
  • Deed in lieu on triplex property

Adam’s return to real estate investing

  • Live online auction (tax deeds)
  • Fix and flip remotely

Why Adam transitioned to multifamily

  • Competition at tax deed auctions
  • Single family ‘like a paycheck’

Adam’s path to multifamily

  • Bought five-plex (owner financing)
  • Two-, four- and five-plex first
  • Syndication of larger properties

The major surprises of syndication

  • Utility deposit, pre-paid insurance
  • $40-$100K in cost up front

Adam’s approach to building credibility

  • Start with smaller property (16-plex)
  • Qualify for loan on own, raise $300K

Adam’s advice for aspiring multifamily investors

  • ‘Wear one hat’ (e.g.: find deals, raise money)
  • Go in passively yourself

Why Adam created a real estate meetup

  • New to city, desire to build network
  • Lunch group to draw active investors
  • Opportunity to position as leader

How Adam has benefitted from the meetup

  • $4.4M raised through group
  • Put on map as community leader

Adam’s hacks for creating a successful meetup

  • Ask other popular group leaders to speak
  • Message active followers with invitation

The format of Adam’s meetup

  • Network and guest speaker
  • Attendees purchase lunch

Adam’s follow-up mechanism for raising money

  • Constant Contact email with new deal
  • Call those who watch webinar
  • PPM and deal package if interested

Adam’s insight on scaling your business

  • Offer more value in space
  • Podcast, meetup or share on social

Connect with Adam

Real Blue Spruce

The Creative Real Estate Podcast

Denver Apartment Network

Real Estate Lunch Club

Text MEETUP to 555 888

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

Constant Contact

Trello

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

The Michael Blank Coaching Program

The Ultimate Guide to Buying Apartment Buildings with Private Money

The Michael Blank Deal Desk

Invest with Michael

Podcast Show Notes

Direct download: ABI_135.mp3
Category:Commercial Real Estate -- posted at: 9:27pm EDT

Do you struggle to remember names at networking events? Do you rely on notes when introducing a speaker or giving a presentation? Do you invest in conferences—and promptly forget what you learned? It’s not that you have a ‘bad memory.’ You simply haven’t learned the simple techniques that would allow you to improve your recall, enhance your relationships, and ultimately grow your business!

Ron White is one of the top authorities on memory in the world. He won the USA Memory Championship in 2009 and 2010, and his YouTube Channel, Brain Athlete Ron White, is number 1 among memory experts. Ron speaks to audiences of all sizes all over the world, from Singapore to Ireland to Zimbabwe. He has appeared on Good Morning America, Martha Stewart Living Radio, and the Dr. Oz Show, among many other media outlets.

Today, Ron joins me to explain how he became the two-time National Memory Champion, memorizing a deck of cards and a 167-digit number in record time! He describes the Afghanistan Memory Wall event in which he honors the 2,300 service men and women who died in the war and offers insight around the benefits of a good memory in improving your business and your life. Listen in for Ron’s advice on improving your recall and learn his system of visualization to quickly memorize a list of words!

Key Takeaways

How Ron became the two-time National Memory Champion

  • Compete in series of 7 events
  • Memorize deck of cards in 1:27
  • 167-digit number in 5 minutes

Ron’s Afghanistan Memory Wall event

  • Honors 2,300 who died in war
  • Write out rank, name from memory
  • 10-hour process

The benefits of a good memory

  • Impacts work, relationships
  • Improve business/life
  • Give speech without notes
  • Remember what read, learn

Ron’s advice around improving your memory

  • Focus = most important
  • Nutrition and exercise

Ron’s system for memorization

  • Think in pictures (visualize)
  • Store in place to retrieve later

Connect with Ron

Ron’s Free PDF

Ron’s Website

Ron on YouTube

Resources

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

Deal Maker LIVE

Review the Podcast on iTunes

Direct download: ABI_131_v3.mp3
Category:Commercial Real Estate -- posted at: 3:17pm EDT

When you know, you know.

Once Kyle Collins fell in love with multifamily as an asset class, he didn’t waste any time. In 9 months, he went from zero to 112 units and quit his job to pursue real estate investing full time.

Kyle is the Principal at Beechwood Holdings, a multifamily acquisition firm focused on stabilized, income-producing properties. Prior to founding Beechwood, he served as a sales rep for Martech Medical and the Director of Business Development for his family’s business, Five Rivers Conservation Group. Kyle earned a bachelor’s in finance from Georgia Southern and an MBA from Emory University.

Today, Kyle sits down with me to discuss his transition to full-time real estate investor, sharing the challenges he faced finding deals early on. He explains how to build a network of brokers and potential investors as well as what questions to ask to be taken seriously. Kyle also offers advice on leveraging an experienced property manager, raising capital and investing in your own deal. Listen in for insight around setting realistic expectations and learn how to divide your time among raising money, prospecting deals and running the operations of your portfolio!

Key Takeaways

Kyle’s background and education

  • Medical device sales
  • MBA from Emory
  • Raise capital for family business

Kyle’s transition to real estate

  • Familiar with network of potential investors
  • Experience with syndicated land transactions

The challenges Kyle faced early on

  • Finding deals, getting in front of brokers
  • Courage and trust in ability to underwrite

Kyle’s advice around building a network

  • Leverage personal network for introductions
  • Call brokers to look at deals

Kyle’s advice on being taken seriously

  • Educate self before pursuing leads
  • Build multifamily skill set (50+ deals)
  • Learn to speak the language

The questions to ask when you see a property

  • Realistic rent bump on planned renovations
  • Why rents lower than rest of market

How Kyle leveraged his property management firm

  • Brought on early in negotiations, underwriting
  • Objective opinion of realistic cost projections

Kyle’s guidance around raising capital

  • Ask potential investors to lunch, coffee
  • Explain what you’re doing but don’t push
  • Put in substantial amount of own money

The importance of being excited about a deal

  • Approach each deal with skeptical lens
  • Confident in pitch, personal investment
  • Under-promise and overdeliver

How to reconcile desire with prudence

  • Invest in own deal
  • Err on conservative side

Kyle’s first 112-unit deal

  • Broker introduced to off-market deal
  • Unnamed property, rents $150 below market
  • $3K per door on renovations
  • Already hit year-two rent assumptions

The value of a quality property manager

  • Help set realistic expectations
  • Handle renovations

What’s next for Kyle

  • Another deal by end of year (1K units by 2020)
  • Raise capital, prospect deals + run operations

Kyle’s insight on the level of effort necessary

  • Look at deals daily, practice underwriting
  • Network to meet brokers and investors
  • Put together marketing materials

Kyle’s top tips for aspiring multifamily investors

  • Need to believe in self through highs and lows
  • Do one thing each day to further your cause

Connect with Kyle

Beechwood Holdings

Email kcollins@beechwoodholdings.com

Kyle on LinkedIn

Resources

LoopNet

Syndicated Deal Analyzer

Apartments.com

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

The Michael Blank Coaching Program

Review the Podcast on iTunes

Direct download: ABI_134.mp3
Category:Commercial Real Estate -- posted at: 1:12pm EDT

If you ask people at the end of their lives to reflect on their regrets, no one ever mentions money or work. Instead, their focus tends toward the relationships they neglected. So, when Ken McElroy realized he only had one shot at having a great rapport with his kids, he got serious about designing a life of balance that allows him to grow a successful real estate business AND be fully present with his family. 

Ken has 20-plus years of experience in real estate investment analysis, property management, acquisitions and property development. Ken serves as an advisor to Robert Kiyosaki of The Rich Dad Company, and he is the author of the bestselling books The ABCs of Real Estate Investing, The ABCs of Property Management, and The Sleeping Giant. An advocate for entrepreneurs and real estate investors, Ken makes regular media appearances and speaks at top industry events all over the world. He is also the host of Entrepreneur magazine’s Real Estate Radio program.

Today, Ken joins me to share his insight around work-life balance, explaining why he takes time away to work ON the business and connect with his family. He describes how his definition of success has changed over time and how the decision to prioritize relationships translates to his business. Listen in to understand Ken’s take on limiting beliefs and learn how he approaches life with a commitment to being self-aware and fully present.

Key Takeaways

Why Ken spends 3 months in Idaho every summer

  • Think clearer, bring back new ideas
  • Time to work ON business

Ken’s insight on work-life balance

  • Up at 5am to work for 4 hours
  • Fully present with kids rest of day
  • ‘Space allows’

Ken’s transition from employment to entrepreneurship

  • Hard leap to rely on self
  • First job in property management
  • Start with one rental as side project

Ken’s goals around financial freedom

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

How Ken’s definition of success has changed over time

  • From ‘job’ to ‘good job I really enjoy’
  • Focus on money in 30’s (millionaire)
  • Now relationships with family, kids

Ken’s decision to focus on family and relationships

  • Sought mentor for support (Charlie Dunlap)
  • Money, work not on list of top regrets

How Ken’s shift in priorities translates to his business

  • Create better environment for employees
  • Seminars dedicated to personal growth

Why Ken sees BE as the most important aspect of Be-Do-Have

  • Work on inside, outside changes
  • Focus on people changed company

Ken’s take on limiting beliefs

  • Where come from shapes belief system
  • Value in considering other’s opinions

How to work through limiting beliefs

  • Awareness is key
  • Present as ‘observer’

What gets Ken out of bed in the morning

  • Sense of purpose
  • Desire to contribute

Ken’s view of spirituality

  • Likes ‘no rules’
  • Just about love

Connect with Ken

Ken’s Website

Resources

Win a Signed Copy of Ken’s Book

The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss by Ken McElroy

Books by Ken McElroy

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

Awareness by Anthony DeMello

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

The Power of Now: A Guide to Spiritual Enlightenment by Eckhart Tolle

Warriors Heart

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

Deal Maker LIVE

Review the Podcast on iTunes

Direct download: ABI_133.mp3
Category:general -- posted at: 2:04pm EDT