Tue, 25 July 2017
More money, more problems.
One of the major pain points for high net worth individuals involves taxes. Today’s guest was hit hard with a $497K bill in 2010, and that’s when he decided stop giving his money away to the IRS and start investing in multi-family properties!
David Zook is a wildly successful entrepreneur and experienced investor in the multi-family space who has syndicated over $50M worth of real estate in his career. His portfolio includes 3,000 apartment units in several states as well as Ambergris Caye, the largest resort in Belize. David has entered the ATM market as well, capitalizing on another investment that offers tax-advantage cashflow.
David is also a sought-after speaker and published author who has presented at venues such as the International Business Conference, The Jason Hartman Real Estate Mastermind, and The Cash Flow Wealth Summit. He credits his success to working with world-class teams, and today he discusses why it’s patriotic to take advantage of available tax breaks, the AHA moment that initiated his transition from passive investor to real estate syndicator, and how multi-family investing has evolved over time. Whether you’re a high net worth individual looking to reduce your tab with the IRS or a syndicator looking to raise money, this episode is for you. Listen in as David shares how he leverages paper loss and cost segregation to reduce his tax bill from $475K to nearly zero.
[5:43] Why it’s patriotic to take advantage of tax breaks
[7:27] The tax benefits associated with multi-family investing
[10:49] How to exercise cost segregation
[13:07] David’s advice around choosing syndicator (as a passive investor)
[15:08] How David transitioned from passive investor to syndicator
[18:02] David’s approach to passive investing
[20:24] How David raised money for his first deals as a syndicator
[24:51] How David structures a deal
[26:28] How multi-family investing has evolved
[29:52] David’s ATM investing opportunity
Connect with David
Direct download: MB_071_-_Why_its_Patriotic_to_NOT_Pay_Taxes__with_David_Zook.mp3
Category:Commercial Real Estate -- posted at: 2:16pm EDT
Tue, 25 July 2017
Real estate is no longer a local game, and smart apartment building investors have properties all over the country. The tricky part is finding a way to consolidate the data so that you can manage and analyze your portfolio all in one place. Is it possible to streamline the important property management processes when your investments are operated by different property managers using different software in different states? Today’s guest says, ‘Yes, you can,’ as she reveals how to remotely self-manage your real estate portfolio.
Dana Dunford is a real estate management specialist, licensed agent, and technology guru out of San Francisco. After earning her MBA from Harvard Business School in 2015, Dana co-founded Hemlane, a technology-enabled property management solution designed to support real estate investors in the remote management of their rentals. As CEO of the company, Dana understands that the best investments may not be in your backyard, and she is on a mission to provide investors with a single platform that consolidates and manages properties using intelligent software, virtual maintenance coordinators and local support.
Dana’s impressive resume includes positions at Apple, where she was a part of the worldwide financial planning and analysis team, and tech startup Nest, which was acquired by Google for $3.2 billion in 2014. Today she shares her expertise with the Apartment Building Investing audience, discussing the role of a property manager and the pros and cons of self-management. She covers the metrics you should be tracking as an owner, the benefits of property management software, and the processes that should be centralized across your portfolio. If you have between two and fifty properties, this is a must-listen interview that uncovers the tools available to help you remotely manage your investments.
[3:25] The costliest expense in the property management space
[4:39] How to avoid the expenses associated with turnover
[6:28] The pros and cons of self-management vs. hiring a property manager
[8:23] The role of a property manager
[10:17] Dana’s guidance around making property managers ‘offensive players’
[11:41] Dana’s advice about interacting with your property manager
[13:18] The benefits of property management software
[14:28] The metrics owners should be tracking
[16:17] The processes an owner should prioritize
[17:39] How to incentivize tenants to pay on time
[19:34] The processes Dana recommends centralizing across your portfolio
[21:15] How to consolidate your records
[24:45] The free tools Dana recommends for managing your portfolio
[25:59] The fundamentals of Hemlane software
Connect with Dana
Direct download: MB_070_-_How_to_Remotely_Self-Manage_Your_Real_Estate_Portfolio__With_Dana_Dunford.mp3
Category:Commercial Real Estate -- posted at: 1:59pm EDT
Tue, 18 July 2017
‘When others are fearful, be greedy. When others are greedy, be fearful.’ Today’s guest took Warren Buffet’s advice to heart, moving past her fear and reaching out to investors at the top of their game to ask for guidance as she shifted from single-family fix and flips to 300-plus unit multi-family properties. Her bigger-is-better philosophy has led to a love of investing in sizable unloved properties and performing a full-gut rehab to revitalize the property – and the community.
Kira Golden is the CEO of Direct Source Wealth, a real estate development company out of Denver that does direct deals and serves as a platform for new and experienced investors. By the time she was 18, Kira had holdings in both the real estate and stock market. After graduating Magna Cum Laude from George Washington University with a master’s in public administration, Kira worked as a financial advisor at Edward Jones until she was in a position to live off her investment income. She currently owns properties in Washington, Colorado, Arizona, Illinois, Ohio, Puerto Rico and France.
Kira is on a mission to bring high-quality deals to Main Street, providing clients with the financial freedom she has earned through investment in real estate. Today she shares how she financed her first deals, what prompted her shift from single- to multi-family properties, and why she reaches out to big name investors at the top of their game. Listen in to understand how to choose the right equity partners and why Kira recommends investing in apartments – the sooner the better!
[2:25] How Kira got her start in real estate investing
[5:13] How Kira financed her first deals
[9:14] Kira’s minimalist philosophy
[10:56] Kira’s shift from single- to multi-family investments
[15:07] Kira’s intent behind reaching out to potential partners
[16:56] Kira’s first 30-unit multi-family deal
[19:19] How Kira attracts investors
[23:12] What Kira learned from reaching out to sought-after investors
[27:34] The importance of alignment in selecting an equity partner
[30:47] How Kira would approach raising money for 30-unit deal without equity partner
[31:56] Kira’s 315-unit full gut rehab
[34:16] Why Kira wishes she had done multi-family sooner
[37:21] Kira’s advice for aspiring real estate investors
[39:15] What’s next for Kira and Direct Source Wealth
Connect with Kira
Direct download: MB_068_-_Why_Bigger_is_Better_With_Multifamily_Investing_-_With_Kara_Golden.mp3
Category:Commercial Real Estate -- posted at: 6:06pm EDT
Fri, 14 July 2017
The vast majority of women perform a number of unpaid jobs every day, from childcare to housekeeping to food preparation. There is simply no time to pick up another job! But today’s guest argues that there is a way for women to generate substantial income that doesn’t require a lot of time and energy – apartment building investing.
Whitney Nicely believes that every woman should control her own destiny by investing in real estate as soon and as much as possible. Born into a family of entrepreneurs, Whitney was inspired to invest in real estate as a creative outlet that would allow her the freedom to be her own boss. She flipped her first house in 2009, and has since grown her portfolio to include 17 residential houses, 19 apartment units and seven chunks of vacant land across east Tennessee.
Whitney’s philosophy is to take action first and figure it out as she goes. Her bold, ‘throw spaghetti at the wall’ strategy has proven successful, and now she teaches women how to invest in real estate with no money, no credit and no bank necessary. Listen in as she shares why she prefers apartments to single family homes, how she landed and financed her multi-family properties, and her advice around building a reputation as a local real estate authority. Learn why women need to start building a portfolio – today!
[2:27] How Whitney got her start in real estate
[5:38] Whitney’s experience with single family homes
[6:38] Why Whitney quit the family business to do real estate
[7:29] The advantages of apartments (vs. single family homes)
[12:30] How Whitney landed her three multi-family units
[15:58] The cashflow on Whitney’s current multi-family properties
[16:52] The other expenses associated with owning apartments
[17:51] What’s next for Whitney
[19:04] Whitney’s early real estate misstep
[21:50] Whitney’s philosophy around taking action
[24:27] How Whitney chooses people to do deals with
[25:45] What sets Whitney apart from other investors
[28:14] Why Whitney believes all women need a real estate portfolio
[30:03] How Whitney’s family reacted to her real estate investments
[32:34] Whitney’s advice for aspiring apartment building investors
Connect with Whitney
Whitney Buys Houses on Facebook
Direct download: MB_069_-_Why_Women_Need_a_Real_Estate_Portfolio__With_Whitney_Nicely.mp3
Category:Commercial Real Estate -- posted at: 1:23pm EDT
Fri, 16 June 2017
Most of us feel uncomfortable asking people for money, yet as apartment building investors we must raise capital to operate a successful business. Today’s guest argues that he doesn’t ask people for money, but offers opportunities to collaborate on projects that are a good fit for individual investors.
Victor Menasce is managing partner of US Real Estate Partners LP and author of the book Magnetic Capital: How to Raise All the Money You Need for ANY Worthy Venture. He spent the first 25 years of his career in high tech, achieving success as a microprocessor designer. But the frequent travel was a strain, and Victor realized that the days of building wealth in that industry were over. In search of a career that would have a meaningful impact, in an industry known for creating wealth, he started investing in real estate as a side hustle. His first projects involved medium-term executive rentals for parliamentary and embassy staff in Ottawa as well as local rent-to-own transactions. Victor then expanded to US markets and transitioned to real estate full-time.
His current specialty involves building new apartments in an infill urban setting across multiple domestic and international markets. Leveraging the skills around raising capital he developed in the tech industry, Victor has become an expert in helping investors divert their money from high-risk equity markets into safe multi-family real estate assets. Today Victor details the five key elements of raising capital and explains why some people repel the very money they’re trying to raise. Listen and learn from a developer who has raised more than $300 million in his nine-year real estate career!
[7:01] Why Victor views real estate as a team sport
[7:47] The most difficult part of Victor’s transition from full-time job to real estate
[10:00] Why some repel money when they’re trying to raise it
[11:17] The first key element of raising capital – RELATIONSHIPS
[15:18] The second key element of raising capital – TRACK RECORD
[17:42] The third key element of raising capital – TRUST
[20:09] The fourth key element of raising capital – COMPELLING OPPORTUNITY
[25:40] The fifth key element of raising capital – ALIGN PROJECT GOALS WITH INVESTOR
[30:55] The biggest mistake entrepreneurs make
[33:28] How to invest like a billionaire, even if you’re not
[35:36] Victor’s advice for people hesitant to ask for money
Connect with Victor
Direct download: MB_067_-_The_5_Key_Elements_of_Raising_Capital_-_With_Victor_Menasce.mp3
Category:Commercial Real Estate -- posted at: 7:20pm EDT
Mon, 15 May 2017
As apartment building investors, we realize that off-market deals are the holy grail of our business. But we also know that you have to build relationships with industry insiders in order to access those deals on multifamily properties, and it can be difficult to cold call asset managers, hedge fund operators and associates at private equity firms. If only there was a social media platform that afforded access to a database of professionals and their contact information… Hey, wait a minute! That platform does exist, and today’s guest is here to share how you can use LinkedIn to find off-market properties and earn massive profits.
Jason Lucchesi is known in real estate as the #1 off-market property strategist. He got his start in the industry with Countrywide Home Loans in 2002, serving in the mortgage origination space. In his five years there, he worked his way from account executive to branch manager, but Jason had the good sense to jump ship at the end of 2007 and shift into full-time real estate investment. He has closed REOs, short sales, bulk packages, non-performing notes, and both residential and commercial off-market properties.
Today Jason shares the step-by-step process of connecting with real estate professionals, from initiating a dialogue on LinkedIn to closing the off-market deal. Listen and learn the ‘bank language’ you need to know to communicate with asset managers and land distressed assets for 20-30% of fair market value.
[3:01] The types of investments Jason pursues
[6:37] How Jason got into commercial investments
[8:36] Jason’s first multifamily deal
[10:47] How Jason employs LinkedIn to find off-market deals
[14:05] How Jason initiates contact with asset managers via LinkedIn
[18:18] The script Jason uses in dialogue with asset managers
[19:20] How Jason works with asset managers once connection is established
[24:14] The property information typically provided by asset managers
[27:00] The key strategy that has worked best for Jason
Connect with Jason
Right Flipping Now by Jason Lucchesi
Direct download: MB_066_-_Find_Off-Market_Multifamily_Deals_-_With_Jason_Lucchesi.mp3
Category:Commercial Real Estate -- posted at: 7:03pm EDT
Tue, 9 May 2017
Paul Moore had just gotten his real estate license when he wrote his first book, The Definitive Guide to Smith Mountain Lake Real Estate. Though he didn’t have a track record as an agent, the book made things happen for him, attracting people, money and listings. The work he put into researching the book established him as a professional and propelled his career forward in a big way.
We all have a story to tell, and most of us have considered writing a book to share that story. Being a published author pays huge dividends in terms of credibility, and it’s something you can use as leverage in making deals… Especially if you’re new to the world of investing in apartment buildings. But how in the world do you get started? And how do you carve out the time to sit down and write an entire book?
Nick Raithel is the creator of 7-Hour Book, a proven system that can give you clarity in terms of what you want to write about, assist you in developing an outline, and even partner with you in the writing itself if you don’t have the time to devote to the project. He is on a mission to help real estate investors get the recognition they deserve and attract new business and investment opportunities. Today Nick discusses how publishing a book aligns with the objectives of a real estate investor, the benefits of the ‘thud factor,’ and the components of a book launch. Listen in to learn the real-world results you could enjoy from being a published author!
[1:43] How publishing a book aligns with the objectives of a real estate investor
[4:34] The benefits of the ‘thud factor’
[5:40] The most common mistake made by aspiring writers
[7:38] The real-world results of publishing a book
[9:19] An example of the 7-Hour Book Process
[12:40] How to develop an idea for a book
[14:18] How 7-Hour Book is different from a ghostwriting service
[16:21] How to measure those results
[18:04] The elements of a book launch and the associated marketing
[19:51] How the Book Boost provides the ‘kick in the pants’ you need to get started
Connect with Nick
Mon, 8 May 2017
As apartment building investors, we understand that brokers control the vast majority of real estate deals – and we know that having a ‘in’ with brokers is the only way to score those elusive off-market deals. But if you are just getting started, how exactly do you build rapport with the brokers and partner to source off-market deals?
After graduating from the University of North Texas with a degree in finance, Michael Becker spent nearly ten years at Wells Fargo. During the last five years of his stint in commercial real estate banking, he focused exclusively on multi-family properties and became the number one loan producer for his division three years running. But Michael recognized that he was on the wrong side of every deal, and he made the switch to apartment building investment in June of 2014. In just three years, he has scaled the business, Strategic Property Investment (SPI) Advisory from zero to 4,300 units. Michael also hosts Old Capital, a podcast aimed at multifamily real estate investors.
Today Michael offers sage advice regarding how to cultivate a team, establish credibility and land your first deal. He also shares how to meet brokers face-to-face and establish relationships so that they will partner with you on off-market deals, as well as strategies for sourcing pocket listings. Listen and learn how to provide value to brokers so that you’re top-of-mind when deals come available.
[3:29] How Michael was able to scale from zero to 4,000 units in three years
[6:18] Why Michael feels so strongly about utilizing brokers to find deals
[7:45] Michael’s advice for newbies on how to build relationships with brokers
[9:10] How Michael scores the elusive pocket listing
[10:58] Michael’s tips for new investors to be taken seriously and land their first deal
[13:40] Michael’s recommendations for networking events
[16:29] How to maintain a solid working relationship with brokers
[19:00] How to source off-market deals
[25:48] Other ways to find off-market deals
Connect with Michael
Direct download: MB_064_-_The_Right_Way_to_Work_with_Brokers_to_Find_Off-Market_Deals__With_Michael_Becker.mp3
Category:Commercial Real Estate -- posted at: 6:51pm EDT
Tue, 2 May 2017
Society teaches us that hard work leads to a great life, so we build a career first and try to fit life into what is left over. But perhaps there is a better approach… What if we could design our lives first, and then fit business into what was left?
Steve Cook began his career in the restaurant business, but failed miserably. Success came with a move to real estate investing, and three years in he had $7M in assets. Flipping houses allowed him to accumulate a great deal of wealth, and his financial advisors were committed to helping him accrue even more. Steve was doing everything right, but he wondered when he would get to enjoy it. The business had become his life, and he was compromising everything that was important to him.
Committed to simplify his life and break free from lenders, Steve made radical changes. He stopped borrowing, downsized to reduce expenses, and pared down his work hours so that he could be the husband and father he wanted to be. In the book Lifeonaire, Steve Cook outlines his approach to the pursuit of an abundant life, and today he shares that philosophy with us. Listen in and learn how to shift your mindset, overcome cultural conditioning, and pursue the life you want right now!
[7:09] The message of Steve’s book, Lifeonaire
[8:24] Steve’s moment of realization
[13:02] How Steve’s life went from simple to complicated in a three-year span
[13:58] How Steve simplified his life
[20:35] The shift in Steve’s approach to real estate investment education
[21:46] How to reduce your working hours
[24:52] Steve’s guidance for living the life you want NOW
[26:17] The definition of ‘lifeonaire’ and how the term was conceived
[29:34] Why more people don’t subscribe to the lifeonaire philosophy
[31:05] The greatest challenge for aspiring lifeonaires
[32:35] How long it takes to become a lifeonaire
Connect with Steve
Lifeonaire by Steve Cook and Shaun McCloskey
Direct download: MB_063_-_Changing_Your_Financial_Life_as_a_Lifeonair_-_With_Steve_Cook.mp3
Category:Commercial Real Estate -- posted at: 4:54pm EDT
Fri, 28 April 2017
Perhaps you are hesitant to invest in real estate at the moment because of predictions of an imminent crash. But when is the ‘right time’ to invest? What if I told you that it is always a good time to invest, as long as you make intelligent choices?
Jason Hartman is the president of Platinum Properties Investor Network, a firm specializing in financial planning for real estate investors, and Hartman Media, a production company through which he hosts 20 podcasts that address business, investments and living well. A self-made multimillionaire and serial entrepreneur, Jason has founded 21 companies and initiated several thousand real estate transactions.
Jason obtained his real estate license his freshman year of college and worked part-time for Century 21, learning about the investment side of the industry and developing his own portfolio. He eventually came to purchase and expand his own traditional real estate firm, and negotiated its sale to Coldwell Banker. In anticipation of that check, Jason sought investment advice from Wall Street – and uncovered a need for a financial planning firm-specific to real estate investors. So he created it himself! He is passionate about educating and assisting investors in acquiring pragmatic investments nationwide. Today Jason explains why the media characterization of ‘housing’ is an oversimplification and outlines the different types of markets. Listen and learn how diversification can offer a solid ROI despite market volatility.
[4:12] The volatile nature of cyclical real estate markets
[6:00] Jason’s take on Wall Street financial planners
[6:53] What Jason learned in researching different real estate markets around the US
[8:56] Why Jason founded a financial planning firm for real estate investors
[11:22] The misleading nature of media coverage of ‘real estate’ or ‘housing’
[12:54] The differences among linear, cyclical and hybrid markets
[16:04] Jason’s advice to investors with much equity who live in cyclical markets
[18:30] Why Jason cautions investors against cheap properties
Connect with Jason
Direct download: MB_062_-_Is_Now_the_Right_Time_to_Invest_in_Real_Estate_-With_Jason_Hartman.mp3
Category:Commercial Real Estate -- posted at: 12:17pm EDT
Sun, 23 April 2017
You can lead a horse to water, but you can’t make him drink. Or can you?
You likely know exactly what you need to do to succeed in the world of apartment building investment, but perhaps you aren’t making forward progress toward your aspirations. Today’s guest explores the psychology of what holds us back and offers actionable techniques to help you take control of your life! Rob Dial is a performance coach and speaker who has inspired tens of thousands of people – from college students to NFL superstars – to develop a clear purpose and then establish the habits that lead to success. He believes that leaders are not born, but groomed, and he is committed to teaching others how to become the best version of themselves.
Rob’s forte is understanding the human brain and how to hack it to get past the fears and limiting beliefs that are holding you back. Through his work with MWFMotivation, he seeks to help you dig deep and discover what you were put on earth to do. Today he describes the design of the human brain and explains how to employ that understanding to get clear on the ‘pain’ you are running from as well as the ‘pleasure’ you are working toward. Get ready to be inspired as Rob coaches you to shift your mindset and truly show up in the world.
[6:38] Rob’s spin on the ‘lead a horse to water’ analogy
[9:10] How our brains work
[10:07] Why people don’t take action – despite knowing what they need to do
[10:27] How to shift your focus to the ‘why’ behind your goal
[16:34] How to motivate yourself to take massive action (when life is not that bad)
[18:48] Why you must dig deeper than money as a source of motivation
[20:10] How a focus on the ‘pleasure’ you are moving toward keeps you driven
[25:18] How to identify and explore your personal ‘pleasure’ and ‘pain’
[30:43] Why Rob invested in a coach at age 20, despite the expense
[37:25] Rob’s best advice to motivate action
Connect with Rob
Direct download: MB_061_-_Why_We_Dont_Take_Action_And_What_to_Do_About_It__With_Rob_Dial.mp3
Category:Commercial Real Estate -- posted at: 12:34pm EDT
Fri, 14 April 2017
What goes up must come down, and a number of experts predict an economic recession in the not-so-distant future. What are the current economic trends you need to understand? What would a recession mean for the real estate market? And how can y ou protect yourself from a potential crash?
I recently returned from the Real Estate Guys 15th Annual Summit at Sea, where I had the opportunity to meet several big players in the real estate industry and experience three key ‘aha moments’ surrounding the power of networking, the unsustainable economic trends initiated by our political system, and the spiritual aspect of being an investor.
The Summit at Sea was life-altering for me, and I am eager to share my new insight. Listen in as I examine the current economic landscape and how existing trends may affect the real estate industry down the road. Learn what steps you can take to not only survive a would-be crash, but thrive and prosper despite it.
[1:56] The value of networking via conferences, etc.
[3:55] The significance of understanding the political landscape
[4:50] Unsustainable global trends
[5:07] The fallout from the Federal Reserve bailout in 2008
[5:42] Exponential trends in growth of debt
[6:35] How to respond to this bleak macroeconomic overview
[8:34] Doug Duncan’s favorable perspective of the real estate market
[10:00] Robert Kiyosaki’s approach to the four quadrants
[11:43] The mindsets associated with each of the four quadrants
Second Chance for Your Money, Your Life and Our World by Robert Kiyosaki
Prosper: How to Prepare for the Future and Create a World Worth Inheriting by Chris Martenson and Adam Taggart
The Creature from Jekyll Island: A Second Look at the Federal Reserve by G. Edward Griffin
Direct download: MB_060_-_How_to_Survive_and_Thrive_the_Next_Crash.mp3
Category:Commercial Real Estate -- posted at: 6:29pm EDT
Tue, 4 April 2017
Obtaining funding can be one of the more difficult aspects of real estate investing. How do you go about finding the right lender? My guest today is making the process quicker and easier by marrying technology and real estate to create an online marketplace where investors and lenders can connect.
Ross Hamilton is the CEO of connectedinvestors.com, the world’s largest network of real estate investors. He began investing in real estate at the age of 19, and soon realized that the more connections he had in the real estate investing world, the more lucrative business could be. He leveraged his understanding of technology to create what he calls “LinkedIn for real estate investors” and became wildly successful during the property value upswing. Ross then had the foresight to diversify prior to the crash, and even thrived during the crash by investing in real estate in military towns.
Ross continues to grow his portfolio as well as his network of real estate investors, as he seeks to change the way money flows through the industry. Listen in as he explains how the Connected Investors platform pairs lenders with investors, how to spot a fake lender, and how technology will continue to affect the future of financing via crowdfunding portals and social networks.
[3:22] The key to success in real estate
[3:38] The evolution of funding real estate investments
[6:54] How the Connected Investors platform connects investors with lenders
[8:35] The success of CiX
[10:10] The types of debt supplied by CiX
[12:43] How CiX helps investors with the equity component of funding
[14:54] The prevalence of scammers posing as lenders
[18:21] How to qualify lenders and identify scammers
[20:02 ] The future of financing
[22:43] Ross’s advice for investors struggling to find funding
Connect with Ross
Direct download: MB_059_-_The_Future_of_Real_Estate_Financing_-_With_Ross_Hamilton.mp3
Category:Commercial Real Estate -- posted at: 9:18pm EDT
Wed, 15 February 2017
When someone decides to invest in an asset, they are essentially investing in a prediction of the future. All investments carry this element of risk, but there are some assets that are much riskier than others. Paul Moore, believes that he has found the perfect investment that offers relatively low risk with high rewards. It may not come as a shock to listeners that this investment is multifamily investing!
Listen in to find out how Paul became a real estate investor, and how the “recipe” for the perfect Investment is allowing him to support charitable causes throughout the world!
[04:26] Paul’s first experience with multifamily investing
[06:47] Investments to last a lifetime
[09:54] The changing trends in American home ownership
[11:52] The 3 drivers behind low home ownership
[16:33] Multifamily investing return vs. risk
[20:45] The recipe for the perfect investment
[29:02] Giving back through investing
Connect with Paul
Podcast: How to Lose Money
Direct download: MB_058_-_Outlook_Makes_Multifamily_the_Best_Real_Estate_Investment_-_With_Paul_Moore.mp3
Category:Commercial Real Estate -- posted at: 12:11pm EDT
Fri, 3 February 2017
Finding the right business partner can be as important as finding the right investment opportunity. A great partner can bring time, money, expertise, and often prove vital to achieving your first MF deal.
Someone who knows all about first deals and partnerships is Joe Fairless, my guest on this week’s show. When I first spoke to Joe on the podcast, back in episode 10, he had just finished closing on a phenomenal 168 unit apartment building for his very first deal. Now, 2 years later, Joe has used the momentum of the first deal to propel himself headfirst into the world of real estate investing, with some incredible results.
Listen as Joe tells us what he’s been up to since we last spoke, including focusing his strengths, utilizing partnerships, and massively growing his real estate portfolio since that vital first deal.
[2:52] What Joe has done since his first deal
[3:36] How Joe achieved such rapid growth
[5:46] Joe’s key strengths
[9:59] Smart partnering
[16:50] Using co-sponsors
[21:14] Joe’s tips for partnerships
[21:45 ] The risks of partnerships
[27:05] Joe’s goals for 2017
Connect with Joe
Email: Info@joefairless.com (Email Joe for free money raising spreadsheet tool)
Previous podcast episode with Joe: themichaelblank.com/session10/
Direct download: MB_057__3_Ways_to_Partner_To_Achieve_Massive_Success_in_MF_Investing__With_Joe_Fairless.mp3
Category:Commercial Real Estate -- posted at: 1:30pm EDT
Sat, 28 January 2017
If you’ve listened to the show before, you’ve probably heard me talk about the power of the first deal. Your first multifamily deal will be the smallest, the longest, and the hardest deal you will ever have to make. However, the power of the first deal is that the second and third, which follow in rapid succession, are almost automatic.
Jordan Madewell, my guest on this week's show, knows all about the power of the first deal. Closing on his first multifamily, a 23-unit complex, with his business partner in 2016, Jordan is on the fast-track to completing his next two deals, which he hopes will help him reach his 2017 goal of 100 units. I can’t wait to see how he gets on in the next 12 months, but in the meantime, let’s listen as Jordan talks about his drive, how he got started in real estate, and most importantly, how he nailed that all-important first deal.
[02:53] Jordan’s start in real estate investing
[04:05] The moment Jordan realized that he needed to be investing in multifamily
[06:40] Jordan’s goal and his “why”
[14:23] How Jordan built a network of investors
[15:20] Jordan’s first deal.
[16:30] Raising the money for the first deal
[26:47] What’s next for Jordan
[36:00] The power of the first deal
[45:28] Jordan’s advice for new real estate investors
Connect with Jordan
The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges
Direct download: MB_056_-_Do_Whatever_It_Takes_To_Do_Your_First_Multifamily_Deal_-_With_Jordan_Madewell.mp3
Category:Commercial Real Estate -- posted at: 5:07pm EDT
Mon, 16 January 2017
Five years ago Brad Tacia was just a regular guy, working a 70 hour week as an engineer to support his family. In 2011 he began to invest in real estate. After making the switch from single family to multifamily investing, Brad managed to replace his income in just 2 years.In this episode I talk to Brad about the amazing progress he has made over the last 2 years, investigating the reasoning and
In this episode I talk to Brad about the amazing progress he has made over the last 2 years, investigating the reasoning and mindset behind his life-changing actions, as well as the habits he has developed to achieve his goals. From his first multifamily deal, to the syndication of a second complex, the results of Brad’s determination and decision-making can serve to inspire anyone interested in multifamily real estate investing.
[03:05] Brad’s backstory: from 9 - 5 to real estate.
[04:56] The thought processes behind real estate investing.
[07:23] Thinking about replacing income with real estate.
[9:09] ‘The idea was to buy one house per year’.
[11:45] Making the move to multifamily investing.
[14:14] Brad’s first multifamily deal.
[19:50 ] A change in comfort zone and a shift in goals.
[25:25] The ability to make deals directly impacts the scalability of the business.
[26:04] Brad’s motivation for doing what he does
[27:21 ] Why Brad keeps doing new deals even though he’s met his financial goals
[35:35] Real estate investing alongside a full-time job.
[36:25] Changing your habits and finding your why.
[42:26] What Brad would tell his younger self.
Connect with Brad
Cell Phone: 248-881-4570 (call or text)
The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges
Direct download: MB_055_-_How_I_Replaced_My_Income_With_Multifamily_in_2_Years_-_With_Brad_Tacia.mp3
Category:Commercial Real Estate -- posted at: 10:35pm EDT
Mon, 16 January 2017
Kevin Bupp is an entrepreneur, philanthropist, and real estate expert. Since 2010 Kevin has been focussing his attention on the mobile home park market, the results of which he has happily agreed to share with me today. Throughout his entrepreneurial journey, Kevin has always returned to real estate, a market he calls ‘one of the easiest ways to create true wealth’. Now that he has made the leap to mobile home parks, his only wish is that he had done it sooner!
Listen now to hear my chat with Kevin, including; how he dealt with the economic recession, his chance move to mobile home park investing, and most importantly his best and transferable techniques to close those important deals.
[03:17] Kevin's real estate journey.
[4:48] The recession and a two-year hiatus.
[05:51] ‘The biggest small project I ever worked on’.
[10:07] Raising money for his first deal.
[11:47] Why Kevin decided to go back into real estate
[14:17] Lessons learnt from the recession.
[19:17] So what’s so great about mobile home parks?
[22:20] Park management and scalability.
[24:53] Where Kevin finds his on-site managers.
[26:25] Finding new deals in the mobile home park market.
[30:07] Techniques and tips for finding owner information.
[37:40] What would Kevin tell his younger self?
[41:25] What Kevin is most excited about right now
Connect With Kevin
Direct download: MB_054_-_Getting_Started_with_Mobile_Home_Parks_-_With_Kevin_Bupp.mp3
Category:Commercial Real Estate -- posted at: 12:07pm EDT
Tue, 27 December 2016
Bobby Casey, an entrepreneur, and world traveler who now specializes in helping people protect their assets and live off the grid. He’s managing director of Global Wealth Protection, which provide asset protection strategies to shield your wealth from frivolous litigation and create "sleep at night" insurance.
His company can properly structure your offshore company, trusts, foundations and provide bank account introductions to more than a dozen banks around the world. In addition, they can help you move your IRA funds offshore.
We truly live in a world gone mad. Lawsuits are easy to file, the rewards can be enormous, and there’s no down side to losing a lawsuit.
Story of house flip.
Bobby describes how to structure the entities so that it’s hard for attorneys to figure out what you own. By using advanced techniques, like irrevocable trusts, it’s actually possible to not own anything, so even if you do get sued, there’s nothing to attach the judgment to.
Listen to this episode and implement Bobby’s techniques NOW before you lose it all.
[3:39] Bobby’s Backstory
[4:32] His thoughts on living like a nomad
[7:26] His life before he became a digital nomad
[9:47] His thoughts on real estate investing
[13:16] Mistakes investors often make
[17:21] His advice to prevent poor structuring of deals
[21:50] Irrevocable trust and its beneficiaries
[26:20] Federal Lawsuits
[29:26] Another mistake and what’s it like to file a lawsuit in the US
[34:20] Bobby’s advice on implementing asset security
[37:37] Bobby’s “aha” moment
Connect with Bobby Casey:
Sun, 18 December 2016
Gino Barbaro is passionate about multifamily investing, and he believes it’s about the strength of your WHY that determines your success. You must DECIDE you want to change your life, and if you do, you have no choice but to take massive action.
That’s what he did several years ago. Gino was in the restaurant business for 22 years, and he was burned out. He decided he needed to change his life, and he chose real estate to do it.
In this episode, he chronicles his amazing journey from pizza guy to full time multifamily investor. Despite setbacks, a bad partnership and an all consuming day job at the restaurant, he and his partner Jake did their first deal, a 25-unit in Knoxville TN. Today they own nearly 700 units and the sky’s the limit.
Together with Jake, he created Jake and Gino.com, a real estate educational company that offers coaching and training in real estate investing. He is the best selling author of the book “Wheelbarrow Profits”.
Listen and be inspired by Gino’s story. Decide and Your Real Estate Success Will Follow.
About Gino Barbaro
Gino Barbaro is an investor, business owner and entrepreneur. He has been investing in real estate for 15 years and has grown his multifamily portfolio to 674 units in 3 years. He has teamed up with Jake Stenziano to create Jake and Gino.com, a real estate educational company that offers coaching and training in real estate investing. He is the best-selling author of “Wheelbarrow Profits”. Visit Wheelbarrow Profits Tutorial, an educational product focused on multifamily investing. Gino is a graduate of IPEC (Institute for Professional Excellence in Coaching) and is a Certified Professional Coach. He is also the author of the best-selling cookbook "Family Food and the Friars". He currently resides in New York with his beautiful wife Julia and their six children Gabriella, Michael, Sofia, Veronica, Cecilia and Laura. To learn more about Gino visit his website Jake & Gino or Gino Barbaro
[2:19] Gino’s background in the restaurant industry
[3:54] The two types of motivation
[5:00]- Gino’s rough start in real estate investing
[7:18] Why there’s no such thing as a mistake
[8:41] Why Gino decided to invest in apartments
[12:44] The benefits of a partnership
[14:15] Gino’s and Jake’s first deal
[19:45] Why it’s a good idea to self-manage your first deal
[24:23] Why you should explain your offer to the seller
[28:12] What’s next for Gino
[29:29] Gino’s lightbulb moment
[35:00] Gino’s advice to a new investor
[37:23] Why people want things but don’t act
[43:18] Favorite books
Connect with Jeno:
Direct download: MB_052-_Decide_and_Your_Real_Estate_Success_Will_Follow_-_With_Gino_Barbaro.mp3
Category:Commercial Real Estate -- posted at: 9:10pm EDT
Sun, 20 November 2016
Vinney “Smile” Chopra shares his amazing journey from arriving to this country from India with $7 in his pocket to building a $70M multifamily real estate empire. In this episode, we focus in particular on how he started his multifamily investing career and how he eventually raised $1.1M to do his first two deals.
After having graduated from George Washington University, Vinney became a mechanical engineer. He was fascinated by sales and marketing and sold encyclopedias and bibles door-to-door. For several decades, he was a professional fundraiser for non-profit organizations. He started investing in single family houses in the mid-eighties, but in 2007 he became passionate about multifamily investing. Since then, he’s done $125M worth of real estate transactions and currently controls over 1,400 units.
Vinney’s middle name is “Smile” because that what he did a lot during our interview. Here are the topics we cover on the podcast:
[7:30] Vinney’s start in real estate investing
[12:47] Vinny’s preferred method of learning
[13:31] Why positive thinking is so important if you want to achieve your goals
[18:13] Why Vinney decided to stop investing in single family housing
[20:33] Why Vinney recommends finding a partner
[26:17] Why you should talk to a syndication attorney before raising money
[28:00] Vinney’s very first deal
[32:14] How Vinney raised money for his first deal
[38:55] How one happy investor can lead to 30 more
Connect with Vinney
Phone: 925-766-3518 (call or text)
Vinney’s course on syndication: realestateu.tv
Direct download: MB_051-From_7_In_His_Pocket_to_1400_Units_with_Vinney_Smile_Chopra-2.mp3
Category:Commercial Real Estate -- posted at: 12:51pm EDT
Mon, 14 November 2016
Learning how to find and analyze multi-family deals is important, but if you can’t afford to fund it yourself, you need a strategy for raising money! Doing what everyone else is doing to raise money is less and less effective, and that’s why I’ve invited Richard Wilson on the podcast to talk about raising money. Richard’s business isn’t just about raising money for real-estate, but we can adopt many of the strategies that Richard talks about to raise money for our multi-family deals!
About Richard Wilson:
Richard Wilson helps $100M+ net worth families create and manage their single family offices and currently manages 14 clients including mandates with three billionaire families. Richard is also the founder of the Family Office Club, the largest membership-based family office association. Richard hosts the "The Family Office Podcast", and he is the author of the #1 bestselling book in the family office industry, The Single Family Office: Creating, Operating, and Managing the Investments of a Single Family Office. He is a sought-after speaker and has spoken at over 150 conferences in 17 countries. Richard currently resides on the island of Key Biscayne, Florida with his wife and two daughters.
Enjoy the interview!
[1:54] Definition of a Single-Family Office: Private company that manages investments and trusts for a single person or family.
[9:27] Richard’s experience raising money
[9:56] Richard’s strategies for raising money
[13:02] There are experts in your niche that don’t compete with you but have enormous credibility. Find ways of efficiently connecting them to each other, (like through a podcast), and you will get Triple ROI:
[15:39] Richards advice on raising money from private investors.
[20:45]- When you layer communities, you create good luck.
[23:44] What Richard would do if he had only 500 bucks and a laptop (EO Fire Podcast question)
[29:03] Special offer:
Family Office Podcast: Real Estate Investments, Co-Investing, Capital Raising, and Private Equity Business Strategies: https://itunes.apple.com/us/podcast/family-office-podcast-real/id849850253?mt=2
Direct download: MB_050-Raising_Money_from_Family_Offices__With_Richard_Wilson-2.mp3
Category:Commercial Real Estate -- posted at: 1:47pm EDT
Sat, 5 November 2016
In this episode, Mark Walker shares with us how he replaced his income from a high-tech job with passive income from multifamily properties. Like so many people I’ve talked with, Mark started with single family investing before realizing that multifamily investing would allow him to achieve his dream of financial freedom.
His path was not always easy but one day in Mark “decided” that he was going to achieve financial freedom and from that moment on he worked towards escaping the rat race. In my experience, once you truly decide to do something you can’t stop yourself from taking action! So decide already!
Mark has some great advice and he’s even got a free PFD that you can download entitled “10 "Not So Obvious" Ways to Boost Your Multifamily Property NOI.” You can download it here
[1:15] Mark’s Backstory
[3:38] The day Mark “decided” to achieve financial freedom
[5:16] Why Mark started investing in condo’s and townhomes
[6:05] Marks Hiatus from real estate investing
[9:10] Why Mark decided to shift strategy and start investing in multifamily
[13:04] Why Mark decided to do bigger multifamily deals
[14;13] Marks mental struggle transitioning from a W2 employee to a full-time real estate investor.
[17:4] What Mark would do differently if he could do it over:
[20:11] Why a very successful investor would be willing to partner with a noobie
[23:10] Marks advice for a new investor
Mark's gift to listeners: 10 "Not So Obvious" Ways to Boost Your Multifamily Property NOI
Direct download: MB_049-_How_I_Replaced_My_Income_With_Apartment_Buildings__With_Mark_Walker-2.mp3
Category:general -- posted at: 12:16pm EDT
Sun, 30 October 2016
For many of these episodes, I bring on someone who is already very successful in multi-family investing and I will continue doing so because there is a lot to learn from these people! However, I also really enjoy talking with relatively new investors about their first deal since that first deal is always the hardest, and it’s the most important step you can take towards achieving your financial goals.
This week, I welcome to the show Ed Hermson. In this episode, you will find out how Ed was able to close his first 22-unit apartment building deal just 3 months after getting started, and how long it will take for Ed to achieve his goal of $10,000 per month in passive income!
[2:26] Ed’s backstory
[6:22] Why Ed decided to stop investing in single family housing
[7:36] Why Ed decided that Multifamily was a good fit
[9:36] What stops people, (including Ed), from getting that first deal done
[10:43] How Ed overcame his monetary limitations
[12:12] Why Ed decided to focus on smaller markets
[18:21] How Ed found his first big deal
[23:21] Why paying for an appraisal on an apartment complex is usually a waste of money
[24:29] Ed’s advice on building an investment team
[25:34] How you can find the time for multi-family investing while working full-time
[36:53] Ed’s advice to new investors
[38:19] Why you should focus on building relationships with bankers and property managers (instead of just realtors)
Connect with Ed Hermsen
Direct download: MB_048-_How_I_Closed_My_First_22-Unit_Apartment_Deal_in_3_Months_With_Ed_Hermsen-2.mp3
Category:general -- posted at: 5:36pm EDT
Mon, 10 October 2016
This week’s guest is Bill Manassero. Bill is truly one of the world’s good guys. He’s has done a lot in his life and most recently he spent 11 years as a missionary to orphans, abandoned and at-risk children in Haiti.
At the age of 60, Bill realized that he was closing in on the age of retirement and he wasn't financially ready for it! Other than a little money in an IRA account and social security benefits Bill didn't have a method of generating income. Being a Walmart greeter didn't appeal to him so he started looking for ways to generate passive income. After throwing out a few ideas, Bill chose real estate and he decided to go big. Bill’s goal is to control 1000 doors in 6 years. He’s 3 years in and is well on his way!
Since finding some success in real estate Bill has decided to help others who like him are getting close to retirement and need to generate income. Bill started The Old Dawgs Network which began as a blog and is now also supported by a podcast!
In this episode, Bill shares his inspiring story as well as the "why" behind his goal. Bill has a very strong “why” and we discuss what that is for him and why it's so important you find your "why". I hope you all enjoy this episode as much as I did!
[8:41] Why Bill chose multifamily investing to generate income
[12:50] Why Bill decided to focus on multi-family over single family real estate investing
[15:09] Factors Bill considered when assessing his first big deal
[19:28] How Bill used the inspection process on his fist “big deal” to get a better price
[27:01] The importance of identifying your “why”
[31:13] How Bill broke down his big goal into manageable steps
[32:40] The importance of remembering that real estate investing is about more than just money
[34:23] Why Bill decided to move into his apartment building
[37:48] The inspiration behind “The Old Dawgs Network”
Connect with Bill Manassero:
Direct download: MB_047-_Make_Your_First_Million_with_Real_Estate_-_Then_Change_the_World-2.mp3
Category:general -- posted at: 8:43pm EDT
Mon, 3 October 2016
In Gary Keller’s book “The One Thing” he asks the following question; What's the ONE thing you can do such that by doing it everything else will be easier or unnecessary? In this podcast I pretty much talk about one thing, that’s getting your FIRST deal. No matter the size, after you’ve done your first deal, the subsequent deals will be much, much easier.
[8:20] Most of the time our biggest regret is not doing more, sooner.
[8:50] Strategies for finding your first deal
[23:20] Brooks second deal
[27:21] The only thing stopping you from taking the first step is yourself
[30:20] Take your biggest, scariest task and do that FIRST
Connect with Brooks:
Phone: (301) 465-9047
Direct download: MB_046-_How_Can_a_UPS_Driver_Quit_His_Job_With_Small_Apartment_Buildings-2.mp3
Category:general -- posted at: 1:50pm EDT
Wed, 28 September 2016
In this episode, I’m joined by Kathy Fettke, CEO and Co-Founder of the Real Wealth Network and host of The Real Wealth Show podcast. She is a frequent contributor to national news including CNN, CNBC, NPR, FOX News, CBS MarketWatch and the Wall Street Journal. Kathy is a lot of fun to talk with, and her story is both educational and inspiring. She has a ton of real estate experience in both single family and multifamily investing and has experienced some incredible highs and lows in her personal and professional life.
In this interview, she tells us about her husband coming home with the news that he’s been diagnosed with cancer with only six months to live and how she turned to real estate to pay the bills. She also tells us about a 92-unit apartment deal that looked oh so perfect, before turning into a nightmare. Kathy has been through and accomplished a lot and lucky for us she's more than willing to share what she's learned!
[7:27] The worst real estate markets right now
[9:14] Metrics to look for in a market
[8:30] Some of the best real estate markets right now
[16:21] The insurance clause you NEED to be aware of when your property is vacant
[17:48] The one thing you ALWAYS do right before closing on a property
[22:38] When something goes wrong, communicate more with investors! NOT LESS!
[24:58] - Trust your gut.
[26:24] What to look for in a Syndicator/Sponsor
[34:28] Get your advice from people who have already done what you want to do
[41:51] There is no “happy ending”. We are here to grow
Connect with Kathy Fettke
Realwealthnetwork.com | FREE to join
Direct download: MB_045-_Living_Life_to_the_Fullest_as_a_Real_Estate_Entrepreneur-2.mp3
Category:general -- posted at: 12:54pm EDT
Fri, 19 August 2016
The multi-family market is hot right now making it harder to find good deals. Finding a way to charge above market rents is one strategy that allows us to buy properties at market and still get the returns we are looking for.
[7:31] Alternative ways to use the platform
[10:15] Where the short term rental strategy can work
[11:42] Scalability of this strategy
[13:46] Regulatory Uncertainty
[15:36] Pro AirBnB cities
[19:22] Nav’s advice to real estate investors evaluating this strategy:
Blog Post: THE RISE OF THE PROFESSIONAL AIRBNB INVESTOR- https://www.realtyshares.com/blog/the-rise-of-the-professional-airbnb-investor/
Connect with Nav
Direct download: MB_044-_The_Rise_of_the_AirBnB_Multifamily_Investor-2.mp3
Category:general -- posted at: 12:39pm EDT
Mon, 1 August 2016
Ever wonder what SEC regulations apply to apartment building syndications? There is a lot to this subject and while it’s not crucial that you know everything, nor should you try, it is important that you have a basic understand of what’s involved and what to look out for.
This week I’m joined by SEC Attorney Steven Rinaldi who has been handling private offerings of securities for over 26 years. Steven is extremely knowledgeable and competent, and this episode is packed full of useful info!
[2:25] Definition and example of a syndication
[13:12] Advantages of Delaware LLC’s
[17:38] What makes an investor an “Accredited Investor”
[19:18] What qualifies as a “Prior Relationship”
[21:10] How to go about advertising to accredited investors
[21:52] The difference between advertising and networking
[22:37] The importance of doing a PPM
[26:43]- Time and cost of drafting an Operation Agreement and PPM
[29:10] The basics of crowdfunding
Connect with Steven Rinaldi
Phone number: 240-481-2706
Direct download: MB_043-_Interview_with_SEC_Attorney_Steven_Rinaldi-2.mp3
Category:Commercial Real Estate -- posted at: 7:32pm EDT
Wed, 27 July 2016
In the previous episode titled, "How to Expand Your Mind To Go BIG with Multifamily Investing," I make the argument that Bigger is Better. I stand by that, so please listen to that episode before you listen to this one! However, if you go through the exercises laid out in that episode and still don’t feel comfortable with going big, I have a Plan B: duplexes
Why Duplexes Are the Perfect Way To Get Started With Multifamily Investing
[3:22] Reason # 1: There's more of them and they're easier to find
[4:39] Reason # 2: You need less money
[5:01] Reason # 3: They're easier to analyze
[7:05] Vision setting is important but don’t let your vision stop you from achieving your goals
[8:08] 90 day plan to buying your first duplex
[8:51] Week 1: Educate yourself
[9:35] Week 2: Determine investing area
[10:27] Week 3: Analyze 5 deals
[17:58] Week 4: Start raising money
[19:04] The Last two months
Direct download: MB_042-_How_To_Do_Your_FIRST_Apartment_Building_Deal_in_the_NEXT_90_days-2.mp3
Category:general -- posted at: 4:14pm EDT
Mon, 11 July 2016
It’s just me on this episode and I want to talk with you guys about mindset. Expanding your mind is something help you achieve your goals in the fastest way possible. Staying within your comfort zone can do the opposite.
In this podcast I outline 5 Reasons why bigger is better with apartment building investing and then give you 3 practical ways to expand your comfort zone, so you can do more/bigger deals.
[0:30] We limit ourselves based on what we believe is possible.
[3:14] Buying an apartment building twice as big really doesn’t add that much work.
5 Reasons Why Bigger is Better with Apartment Building Investing
[4:18] Reason # 1: A Much Better Buying Experience
[4:55] Reason # 2: Economies of Scale.
[5:25] Reason # 3: Less closing costs as a percentage of the deal
[5:55] Reason # 4: Better financing
[6:40] Reason # 5: Bigger Profits for less work
3 Practical Ways to Expand Your Comfort Zone (So You Can Do More Deals!)
[10:31] Tip # 1: It all starts with visualization
[12:01] Tip # 2: Create a sample deal package.
[13:43] Tip # 3: Visit properties that are outside of your comfort zone
Mentioned in this Podcast:
Book: The Miracle Morning
Movie: The Secret
Direct download: MB_041-_How_to_Expand_Your_Mind_To_Go_BIG_with_Multifamily_Investing-2.mp3
Category:Commercial Real Estate -- posted at: 1:39pm EDT
Sat, 2 July 2016
I’m doing something a bit different with this episode and I think you are going to really enjoy it. While I realize that the name of this podcast is “Apartment Building Investing” it’s good for us to expand our minds and see what else is out there.
Today I’m joined by Jefferson Lilly to talk about mobile home park investing!
Jefferson Lilly is a self-made millionaire mobile home park investment expert, educator, and industry consultant. Prior to co-founding Park Street Partners in 2013, Mr. Lilly spent seven years investing his own capital acquiring and operating his own mobile home parks. Before becoming an investor full-time, Jefferson spent nine years in sales leadership roles with several venture-backed startups in Silicon Valley. Jefferson has been featured in The New York Times, Bloomberg Magazine, and on the 'Real Money' television show. He holds a B.A. from the University of Pennsylvania and an MBA from the Wharton School of Business.
[6:58] In the mobile home business, you want to own the land, not the homes. “Be in the real estate business. Not the wheelestate business.”
[8:08] Owning the land only, cuts out the vast majority of repair and maintenance that you are responsible for.
[8:53] What to look for when investing in mobile home parks.
[13:19] What to look for in an onsite mobile home park manager:
[20:22] People tend to treat the park and their homes with more respect the father north you go (in the U.S.).
[22:16] When starting out, be hands on for the first 6 months. After that, think about outsourcing tasks.
[25:05] Income streams from Mobile home parks:
[26:13] Common financing options for mobile home parks:
[30:44] Primary ways to find deals:
[34:09] Why mobile home parks can offer great upside:
[38:38] Ways to invest in mobile home parks:
How to Connect with Jefferson
Podcast: Mobile Home Park Investors
Direct download: MB_040-_All_About_Mobile_Home_Park_Investing_-_With_Jefferson_Lilly-2.mp3
Category:Commercial Real Estate -- posted at: 1:45pm EDT
Sun, 26 June 2016
This episode is a bit different than the norm because I am the one being interviewed! JP Moses with realestatemogul.com interviews me about apartment building investing and raising money.
I talk a bit about my journey, the struggles I’ve had and why many people dismiss apartment building investing as a wealth creating strategy for themselves. We discuss the myths and realities of getting started with apartment building investing and how to overcome the initial roadblocks.
[4:02] Success is riddled with mistakes and failures
[6:02] You have to be willing to operate in an environment where you can’t control everything and be at peace with that.
[11:59] Key components that make a deal worth doing.
[13:24] Why there is less speculation in commercial real estate than in single family investing.
[13:56] Very few great deals are going to be in your backyard.
[14:10] The best way to find deals in through relationships with brokers.
[16:35] Loopnet.com is useful in finding brokers to start relationships with.
[20:14] People dismiss apartment building investing for these 3 reasons:
[21:40] Flipping houses or investing in single family doesn’t give you credit when it comes to investing in multifamily dwelling.
[22:25] If a broker is asking you qualifying questions they’ve already classified you as a newbie.
[27:00] Even in stable apartment building investments you need to be interacting with your property manager on a consistent basis so you don’t lose touch.
[31:45] The right way to introduce yourself to a broker.
[34:55] Putting together a sample deal for potential investors.
[45:37] How to make money on deals you can’t pull the trigger on yourself.
[48:29] Don’t spend money in the due diligence process until you are 98% sure you are going to get the deal done.
[53:04] Invest in your education. Everything else can be achieved with hustle.
Direct download: MB_039-_Dont_Think_You_Can_Do_Your_First_Apartment__Deal_Then_Listen_To_This-2.mp3
Category:Commercial Real Estate -- posted at: 2:02pm EDT
Wed, 1 June 2016
There are many advantages to investing in multifamily over single family rentals and this week I’m joined by a guy that has invested a lot in both.
Rod Khleif has been a real estate investor for the past 25 years has owned over 2000 apartments and homes. Rod shares his fascination real estate investing journey and how he built a HUGE single family house investing business which kicked his butt during the recession. Rod gives us the pros and cons of Single Family Vs Multifamily investing and discusses why he thinks a correction is coming and why multifamily’s are the best investment right now.
But ask Rod what he is most proud of, and he will tell you about his work as a community philanthropist. Over the past 14 years, Rod’s work has benefitted more than 40,000 underprivileged community children.
Rod has a new book, coming soon, on the topic of multifamily investing and listeners of this podcast can get it for FREE by texting “Rod” to 41411. Rod hosts a new and already popular podcast called the Lifetime Cashflow Podcast.
[3:58] Single-family rentals either are rented or they are not. With multifamily dwellings, you can typically cover your expenses, even with a vacancy.
[6:03] Learn a business, and confidence and the ability to influence people will follow.
[7:30] Always be learning. Regardless of how much you know, there is always something to learn.
[10:28] To be good at investing, you need to learn to love it.
[10:47] Learn to find positives in negative situations
[14:24] Pros and cons of Multifamily investing
[18:08] The beautiful thing about multifamily is it’s valued based on the net operating income NOT comps.
[19:34] By improving net operating income you can exponentially raise the value of an apartment building.
[21:53] Financing on large deals can be easier to secure, with better terms.
[25:01] It’s easier to scale multifamily investing than single family.
[27:12] You can become finically free with ONE transaction in multifamily. It generally takes dozens of single family deals to accomplish the same thing.
[30:16] If you’re willing to do what others don’t do, you will be a success.
[37:09] The importance of visualizing your goals.
[39:47] Know the “why” behind your goals.
Mentioned in this interview:
The best way to connect with Rod is via email at email@example.com
Direct download: MB_038_-_Why_Multifamily_Investing_is_better_than_Single_Family_Rentals_-_With_Rod_Khleif-2.mp3
Category:Commercial Real Estate -- posted at: 11:26am EDT
Tue, 17 May 2016
About 98% of the people that come to me are not aware that they can invest in real estate from their RIA or 401k. Investing with your IRA or 401k brings enormous tax advantages, and therefore growth advantages, but there is quite a bit you need to know before you get started.
This episode is part 2 of my interview with Attorney, Accountant, and Real Estate Investor John Hyre. In this episode, John covers a few advantages and disadvantages of various retirement investing plans and the pitfalls of prohibited transactions which can easily blow up your IRA and cost you 50%-60% of the account value.
John has a course on this topic that I have reviewed on my website: http://www.themichaelblank.com/ira. For a limited time, John is offering this course and the live conference footage (discussed in this episode) for only $1,197 (Regular Pricing: $2,391).
[3:42] An IRA is the biggest loophole out there. The best way to deal with income is to make it not taxable to begin with.
[10:59] Roth IRA VS a traditional IRA
[11:33] It’s much better to be taxed on the seed now then the crop later.
[12:02] Self-directed 401K’s are superior to traditional IRA
[12:15] The value/importance Health Saving Accounts (HSA) and Coverdell Education Savings Accounts (CESA) are often underestimated.
[14:30] Why you should set up an HSA TODAY
[15:39]- why 401K’s are “infinitely superior” to IRA’s. Penalties for prohibited transactions are MUCH worse for an IRA.
[19:45] The power of tax-free investing.
[26:26] Prohibited transitions in IRAs- what makes them so scary. Don’t just be conservative, be Paranoid.
[33:32] Statue of limitations on prohibited transactions (NEW)
Mentioned in this interview:
IRA Investing: Review of the Tax Litigators Guide to Tax-Free IRA, HSA & CESA Wealth by John Hyre- Special Limited Time Offer: Buy the course + live conference for just $1,197 (Regular Pricing: $2,391)
Purchase here: http://www.themichaelblank.com/ira
Connect with John
Direct download: MB_037-_Building_Real_Wealth_with_your_IRA_With_John_Hyre-2.mp3
Category:Commercial Real Estate -- posted at: 2:24pm EDT
Thu, 12 May 2016
Bookkeeping is often an overlooked, underappreciated part of business for new investors. However, if you don’t understand your books and your business entity you are probably losing a lot of money, and not just during tax time.
John Hyre is an Attorney, accountant and real estate investor, (in that order according to him), and he was kind enough to join me on the podcast to talk about choosing and maintaining a business entity and the importance of keeping your books the right way. John even has a class on both topics, and the two can be purchased together here for just $499: www.themichaelblank.com/hyer
The information packed into this episode can save you a lot of pain, suffering and money.
[3:10] Biggest mistake that business owners make is the failure to document. If you can’t prove it, you can’t claim it.
[4:35] Use Quickbooks instead of Quicken. Reason; Real estate investing is a balance sheet intensive business and Quickbooks is better suited for that than Quicken.
[5:45] Doing your books the right way saves you money on the front and back end. It lowers your overall tax bill and saves your accountant time, and therefore you money.
[6:07] The books tell you how the business is doing. If you’re not keeping them correctly, you probably don’t know how your business is actually doing.
[6:42] You can delegate bookkeeping, but you need to know about what goes into the books and what you should see to know that whoever is doing it, is doing them correctly.
[9:03] The best insurance against an IRS audit is the bookkeeping and record keeping.
[10:01] Pay your kids to do work for you like scanning receipts. It’s a tax write-off and the money stays in the family. (More on this later in the episode).
[12:03] An LCC is like life insurance. You want it if you need it, but you want to keep the probability of needing it as low as possible.
[13:50] You can avoid a lot of lawsuits by being nice to people.
[14:41] Entities are like children; Fun and easy to make but a lot of work once you got one.
[15:00] The #1 way to destroy an entity is to co-mingle money.
[16:40] Generally the best entity to use for apartment building investing is an LLC
[20:08] Once you involve someone who you are not married to as a partner, you will want a lawyer to write a customized operating agreement. Don’t use a template.
[27:28] If you want a court to treat your LLC like a business, you need to treat it like a business.
[28:18] Rules & guidelines for paying your kids.
[46:32] Trust law is much more complicated than entity law.
Mentioned in this episode:
Entity Selection Course, Bookkeeping course: www.themichaelblank.com/hyer
-purchase for 299 each or 499 together
Connect with John
Direct download: MB_036-_How_to_Pay_Less_Taxes_With_John_Hyre-2.mp3
Category:Commercial Real Estate -- posted at: 3:28pm EDT
Wed, 11 May 2016
It’s never too early to get started.
Connect with John
Direct download: MB_035-Just_Do_It_And_Figure_It_Out_Later__With_John_Cohen-2.mp3
Category:Commercial Real Estate -- posted at: 4:52pm EDT
Wed, 4 May 2016
“Dream big but start small.” Today, it doesn’t take much to get started in real estate investing and in this episode you will find out just how little it takes to get into your first multi-family unit.
I invited Keith on the show to discuss how he got into multifamily investing by moving into his first home he ever bought: a 4-plex. Over the years, Keith has added to his portfolio and is now a full-time investor.
Keith is the Founder of Get Rich Education to teach others about the life-altering power of investing, especially through real estate. He hosts of one of America’s top investing shows - Get Rich Education - with thousands of listeners in over 160 world nations. He’s heard everywhere from iTunes to iHeartRadio, and regularly hosts Kiyosaki Rich Dad Advisors as guests.
[3:19] You CAN move to a location that you dream of living in instead of moving wherever there’s a job.
[9:00] Sometimes we need to “unlearn” before we can learn
[10:40] How Kieth Got started with an FHA loan (it’s still available TODAY)
[16:55] Forget about compounding, the key is Leverage
[22:09] What to look for to make sure you “buy right”
[25:50] How to find the best listings
[29:16] What to look for in a property manager. What to look for in the “Interview process.”
[32:57] ROTI- “Return on Time Invested” is a metric you need to think about when it comes to self-managing your properties.
[35:32] Advise from Keith. If he could do it all over again, what would he do differently?
[38:57] How to think about debt: Outsourcing to tenants.
Mentioned in this interview:
Mentioned in this interview:
1] Rich Dad Poor Dad: Rich Dad Poor Dad- by Robert Kiyosaki
2] Loopholes of Real Estate- by Garrett Sutton
Online resources: www.16personalities.com
Connect with Keith:
Keiths Podcast: Get Rich Education - https://itunes.apple.com/us/podcast/get-rich-education-keith-weinhold/id927263663?mt=2
Direct download: MB_034-_Do_THIS_to_Get_Into_Your_First_Multifamily_Deal_-_With_Keith_Weinhold-2.mp3
Category:Commercial Real Estate -- posted at: 1:34pm EDT
Thu, 31 March 2016
Michael gets a lot of interest from all of you international investors who want to invest in the U.S. but there are a lot of questions that need to be answered before you can close that first deal. Like, what do I need to set up? Can I invest in apt buildings and if so, how? What are the tax considerations?
In this episode, Michael is joined by Reed Goossens, who answers those questions and more!
Reed is from Australia and moved to the US 4 years ago. He's a civil engineer by trade but wanted to get out of the rat race and started to invest in multifamily properties in the U.S. But he faced all kinds of difficulties investing here as a foreigner but finally figured it out. Now he's looking for apartment building deals all over the U.S. He hosts a podcast called " Investing In The U.S. - An Aussie's Guide to U.S. Real Estate" where he teaches people how to invest in the U.S. from abroad.
Connect with Reed:
Email: reed@ rsnpropertygroup.com
Direct download: MB_033_-_The_Definitive_Guide_to_Investing_in_the_U.S._From_Abroad_With_Reed_Goossens-2.mp3
Category:Commercial Real Estate -- posted at: 5:09pm EDT
Thu, 17 March 2016
Michael welcomes to the podcast Nav Athwal, the founder and CEO of RealtyShares. RealtyShares is one of the oldest and largest companies out there in the relatively new and exciting market of real estate crowdfunding.
Nav has drawn from his diverse and impressive background to build RealityShares into a market leader. Nav was once worked an electrical engineer, then for a raw land developer and then became a land-use attorney before starting RealtyShares from his living room! It’s not in his living room anymore. RealtyShares has now raised almost 150 million with a diverse set of operators located in over 60 markets!
Most of us are pretty aware of the basics of crowdfunding and the advantages it creates in the marketplace. So instead of painting in broad strokes, Michael and Nav get into the nuts and bolts of RealtyShares and what that means to you, the listener. In this show they cover the following:
RealtyShares Website: www.realtyshares.com
RealtyShares contact info:
Nav Athwal contact info:
Direct download: MB_032-_Everything_You_Need_to_Know_About_Crowdfunding.mp3
Category:Commercial Real Estate -- posted at: 4:44pm EDT
Tue, 15 March 2016
Thu, 18 February 2016
This episode is all about doing due diligence on commercial real estate.
Due Diligence is rarely talked about because it takes back seat to sexier topics like raising money and finding, analyzing and negotiating deals.
But I have found that more investors make mistakes during the due diligence than any other part of the process.
To help us with due diligence I have on the show today Brian Hennessey.
Brian has been in the commercial real estate industry for 31 years as: a commercial broker for 22 years; a Senior Vice President of Acquisitions and Dispositions for 6 years for a major investor, and ran his own real estate syndication/asset management company for 3 years. He has represented a number of Fortune 500 Tenants including Bank of America, The Walt Disney Company and Baxter Healthcare.
With over 9 million square feet of sale transactions, many painful, but valuable lessons were learned and a wealth of experience was accumulated.
He is the author of the book “The Due Diligence Handbook for Commercial Real Estate Investments”, a top selling
He's going to share with us the Top 10 Mistakes people make when doing due diligence on commercial real estate.
So it's important to pay attention to what Brian has to say.
Here are the complete show notes and transcript:
Thu, 18 February 2016
I heard of two deals recently that ended up going south after the lender apparently did not come through with the loan. Upon closer inspection, though, it was ignorance by the sponsor about how the lender would underwrite the deal, i.e. how they would value the asset and determine the LTV, for example. Or what they require of the sponsor. Or that they require (gasp!) a capital reserve at closing.
All of these materially alter the deal and need to be understood upfront.
To avoid these mistakes, it's imperative that you "interview" your commercial mortgage brokers so that you understand how they underwrite deals and they will require of you. Then you can incorporate those assumptions into your financial model (i.e. the SDA) and you won't be taken by surprise a few weeks before closing.
In my course "The Ultimate Guide to Buying Apartment Buildings with Private" I have a list of 10 questions to ask your commercial mortgage brokers. What I wanted to do in this episode is actually interview a broker and ask them the 10 questions.
That way, you know the questions to ask and you'll also get an idea of what answers you can expect.
To help us with this exercise, I have on the call Ira Zlotowitz, founder and president of Eastern Union Funding and Shai Romirowsky, VP at Eastern Union Funding.
Here are the complete show notes and transcript:
Tue, 26 January 2016
Tue, 19 January 2016
Direct download: MB_028_10_Practical_Tips_To_Achieve_Your_Goals_This_Year.mp3
Category:general -- posted at: 2:42pm EDT
Fri, 11 December 2015
Wed, 9 December 2015
Wed, 9 December 2015
Tue, 1 December 2015
Wed, 18 November 2015
Mon, 16 November 2015
Wed, 23 September 2015
Thu, 10 September 2015
Mon, 16 February 2015
Fri, 6 February 2015
Tue, 2 December 2014
Thu, 20 November 2014
Mon, 10 November 2014
Listen in as national speaker and educator John Bowens teaches how to use your investors' IRA accounts to invest in your multifamily apartment deals. Learn what to do and what not to do and how to explain it in simple terms so that your investors say YES to investing in your deals!
Fri, 24 October 2014
Michael Becker doesn't think small! He describes how he overcame his fear and went from 9 to 1,000 units in just 12 months using other people's money. Find out why he uses only Fannie Mae debt and how a single partnership propelled him into orbit.
Mon, 22 September 2014
Mon, 15 September 2014
Tue, 5 August 2014
Join me as I chat with Chris Winterhalter about his fascinating journey from wholesaling houses to his first apartment building which almost cost him his shirt! Now he owns 100 units within a mile of that building and has his sites on 500 units.
Mon, 4 August 2014
http://www.TheMichaelBlank/session13: In part 2 of this series, Dan Miller of Fundrise describes in detail how to raise capital for your next commercial real estate deal using equity crowdfunding.
Mon, 4 August 2014
http://www.TheMichaelBlank/session12: In part 1 Dan Miller of Fundrise gives us an overview of how equity crowdfunding works and why it's great for commercial real estate. We also talk about what it's like to invest in a crowdfunding project.
Mon, 4 August 2014
MB 011: Learn from Your Mistakes To Become a Successful Commercial Real Estate Investor - With Spencer Cullor
http://www.TheMichaelBlank.com/session11: In this episode I talk with Spencer Cullor who chronicles how he got started with commercial real estate investing. After educating himself, he got into his first commercial real estate deal which didn't pan out the way he imagined. He stuck with it, licked his wounds, and learned from his experiences and got into apartment buildings, and he's never looked back.
Thu, 10 July 2014
In this episode I interview real estate investor Joe Fairless as he describes his journey from just a few rental properties to his first apartment building deal, a whopping 168-unit property -- what an awesome story I know you'll enjoy and learn tons from!
Mon, 2 June 2014
Join me as I talk with Kaveh Shirazi about how he launched his commercial real estate investing career right out of college and on someone else's dime. So we much we can learn from this young investor!
Wed, 28 May 2014
In this episode I jam with aspiring commercial real estate investor Scott Isley as we discuss techniques for raising money and structuring the deal.
Fri, 23 May 2014
In this episode I cover how to go about getting your first deal in an area you've never been in. We'll talk about cold-calling brokers, building trust, analyzing deals, scheduling the first trip to the area, conducting the meetings, and follow-up.
Sun, 18 May 2014
I'm excited to be able to welcome Tommy Bateman to the show this week. Tommy started his career with a single town house in SE Washington DC that he bought with the help of his grandmother. His focus as been to find problem properties and add value in a short period of time, using the equity he creates to purchase more real estate. Today he owns apartment buildings, rentals, a property management company, and he loves development projects.
Fri, 2 May 2014
Brian Burke started flipping houses on the side while still employed full time. Over the years, he's not only built the house flipping business but amassed several hundred apartment building units. Let's listen to his story.
Thu, 1 May 2014
Having trouble finding good apartment building deals? In this episode we'll talk about the SINGLE best way to find deals. We'll also talk about how to look for deals and build your team outside your own area. Get out your pen and paper and let’s get started!
Fri, 4 April 2014
In this episode, my good friend Jonathan Mickles asks me a 101 questions about analyzing apartment building investing deals, and how to do so as quickly as possible. We talk about investment criteria, returns, the 50% rule, how to value commercial real estate, and how to determine the most you should pay for an apartment building.
Direct download: MB003.mp3
Category: -- posted at: 11:20am EDT
Tue, 25 March 2014
Direct download: MB_002.mp3
Category: -- posted at: 8:34pm EDT
Tue, 25 March 2014
Hi everyone, and welcome to my first Podcast!
You can download the podcast to your computer or listen to it here on the blog. It'll also be available on iTunes soon.
In this first episode, I introduce myself and talk about some of my entrepreneurial ventures that have led me to today. I also talk about what you can expect in future podcasts, which I hope to put out every 2-4 weeks.
Items Mentioned in This Session:
Direct download: MB001.mp3
Category: -- posted at: 8:33pm EDT