Financial Freedom with Real Estate Investing

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

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

Key Takeaways

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

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

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

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

[06:40] Jordan’s goal and his “why”

  • $5000/month passive rental income

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

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

[15:20] Jordan’s first deal.

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

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

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

[26:47] What’s next for Jordan

  • Actively looking for more and bigger deals

[36:00] The power of the first deal

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

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

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

Connect with Jordan

Phone: 806-570-0264

Email: Jordanmadewell@gmail.com

Web: madewell-construction.com

Resources Mentioned

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

richdad.com

biggerpockets.com

Old Capital Real Estate Investing Podcast

 


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

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

Key Takeaways

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 Connect with Brad

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

 Email:  bradtacia@gmail.com

 Resources Mentioned

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


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

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

Key Takeaways

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

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

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

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

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

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

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

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

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

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

[14:17] Lessons learnt from the recession.

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

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

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

[22:20] Park management and scalability.

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

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

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

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

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

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

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

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

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

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

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

Connect With Kevin

 Kevinbupp.com

Mobilehomeparkacademy.com

 Resources Mentioned

 TLO.com

Real Estate Investing For Cash Flow Podcast

The Mobile Home Park Investing Podcast


1