Financial Freedom with Real Estate Investing
MB 039: Don't Think You Can Do Your First Apartment  Deal (Then Listen To This)

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

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

 

Key Takeaways:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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

 

Key Takeaways

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

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

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

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

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

[14:24] Pros and cons of Multifamily investing

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

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

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

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

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

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

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

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

 

Mentioned in this interview:

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

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


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