Financial Freedom with Real Estate Investing: Recent Episodes
Michael Blank, Garrett Lynch
The Financial Freedom with Real Estate Investing podcast is about helping you achieve financial independence and control your time through apartment building investing. Michael Blank and Garrett Lynch interview experts in real estate, business, and investing. From learning how to invest in multifamily real estate to navigating entrepreneurship, you will learn the keys to success in your journey towards financial freedom. Previous guests include Grant Cardone, Robert Kiyosaki, Ken McElroy, Robert Helms, Brandon Turner, and Hal Elrod. Whether you're new to real estate investing or a seasoned investor, you'll enjoy stories from our expert guests as well as hear from people who quit their jobs and are living life on their own terms because of investing in multifamily real estate. Thanks for listening and leave a review for a chance to get a shout-out on the show.
In this episode, Michael Blank welcomes back Will Harvey, founder and managing partner of Harvey Capital, to explore his evolution from multifamily investor and mortgage professional into the private lending business. After leaving his W-2 job to pursue real estate full time, Will discovered that he enjoyed the finance side of investing far more than the operational side—and eventually built a private lending business focused on asset-backed loans. Will explains how the private lending model works, why he prefers lending against real estate rather than owning it, how he raises capital through a fund structure, and how he protects investor capital through conservative underwriting. The conversation also dives deep into how Will is using AI to transform everything from underwriting and Google Ads to lead generation and investor outreach, offering a fascinating look at how technology can dramatically increase the scale and efficiency of a real estate business.
Key Takeaways Private Lending Can Provide Real Estate Exposure Without Owning the Property * Will explains why he prefers lending against real estate rather than dealing with tenants, contractors, renovations, and property operations—and how lenders can earn attractive interest while maintaining a secured position. * Protecting Capital Starts With Conservative Underwriting * The goal isn't to take back properties when borrowers default. It's to structure loans with enough margin of safety that the investment remains protected even when something goes wrong. * Fund Structures Can Reduce Concentration Risk * Rather than putting all of an investor's money into a single loan, Will prefers a fund model that spreads capital across multiple loans and borrowers. * AI Is Transforming Real Estate Underwriting * Will uses Claude Code to analyze borrowers, verify their track records, review financial statements, research potential red flags, and produce detailed underwriting briefs—allowing his team to process significantly more volume. * AI Can Turn Marketing Data Into Actionable Insights * By feeding Google Ads reports into Claude, Will can quickly identify which campaigns, keywords, locations, and time periods are performing best, dramatically accelerating a process that previously took weeks of manual analysis. * AI Is Opening New Doors for Capital Raising* * Will is using AI to identify potential investors through public property records, including people who own real estate through self-directed retirement accounts, creating targeted lists that would have previously required significant man
Connect with Will Harvey* Website: Harvey Capital * Email: will@harvey-capital.com
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- Attorney - Swafford Law LLC
- Asset Manager - Cyndee Harding, High Caliber Multifamily
- CPA - James Bohan, Stonehan Accountancy
- Mentor - Deal Maker Mentoring
ResourcesConnect with Michael Blank
TheFreedomPodcast.com
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For full episode show notes visit: https://themichaelblank.com/podcasts/session538/
In this episode, Michael Blank reconnects with multifamily investor and capital raiser Lane Kawaoka to take a hard look at what has changed in commercial real estate since the market peak—and where the opportunities may be today. After investing in more than 10,000 multifamily units and returning more than $45 million to investors, Lane shares lessons from navigating both the boom years and the subsequent market correction. They discuss shifting investor sentiment, conservative underwriting, emerging and tertiary markets, diversification beyond multifamily, and why the quality of the operator matters more than ever. Lane also explains how building relationships outside of real estate has helped him discover opportunities in other asset classes and why today's market may reward investors who are willing to think differently while staying disciplined.
Key Takeaways The Investor Mindset Has Changed * The FOMO-driven investing environment of 2021–2022 has been replaced by more sophisticated investors focused on diversification, risk, and long-term wealth creation. * Conservative Underwriting Matters More Than Ever * Today's higher interest rates, elevated insurance and taxes, and limited cash flow leave little room for aggressive assumptions. Investors need to underwrite deals based on what they know—not what they hope will happen. * The Best Opportunities May Be in the "Boring" Markets * Markets that avoided the massive development and price run-ups of the Sun Belt may offer more stability and less competition as investors search for the next wave of opportunity. * The Operator Can Matter More Than the Asset Class * When investing outside your area of expertise, the key isn't becoming an expert in every industry—it's finding proven operators with strong track records, especially through difficult market cycles. * Diversification Doesn't Mean Abandoning Your Core Strategy * Investors can continue building expertise in multifamily while selectively exploring complementary asset classes, businesses, private equity, self-storage, or other opportunities. * Build Relationships Before You Need Them* * Expanding your network beyond traditional real estate circles can open doors to new operators, industries, and investment opportunities—but building that trust takes years, not weeks.
Connect with Lane Kawaoka The Wealth Elevator: https://thewealthelevator.com * Email: Lane@TheWealthElevator.com * For Deal Submissions:* Lane mentioned that he is open to reviewing deals from operators with more than $1 billion in assets.
Connect with our Deal Maker PartnersCheck out all Partners here
- Attorney - Swafford Law LLC
- Asset Manager - Cyndee Harding, High Caliber Multifamily
- CPA - James Bohan, Stonehan Accountancy
- Mentor - Deal Maker Mentoring
ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
Explore Michael’s Mentoring Program
Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session537/
In this episode, Michael Blank explores how artificial intelligence is transforming commercial real estate investing—and why investors who learn to use AI effectively will have a significant advantage over those who resist it. Michael breaks down practical ways to use AI agents across the entire investment process, from researching markets and finding brokers to analyzing deals, underwriting opportunities, raising capital, nurturing investor relationships, and creating marketing content. He also explains why understanding the fundamentals remains critical, since AI should function as a powerful junior analyst rather than replace human judgment. With examples using Claude, Claude Code, and AI-powered workflows, Michael shows how investors can automate repetitive tasks, save significant time, and build customized systems that become increasingly useful as they learn the investor's preferences and context.
Key Takeaways AI Is a Multiplier, Not a Replacement for Expertise * AI can dramatically accelerate your work, but you still need to understand the fundamentals well enough to identify errors and make sound investment decisions. * Automate the Tasks You Repeat * Look at the things you do daily, weekly, or monthly and identify opportunities to build AI agents that can handle repetitive work in the background. * AI Can Streamline the Entire Deal Flow Process * Agents can help research markets, identify brokers, draft personalized outreach, manage responses, organize deal pipelines, and process new information as it comes in. * AI Can Dramatically Speed Up Deal Analysis * Tools like Claude can extract information from offering memorandums and spreadsheets, reducing manual data entry and helping update underwriting as new documents arrive. Investors still need to review the output and understand the underlying analysis. * Capital Raising Can Become a Repeatable System * AI can help create investor packages, identify prospective investors, personalize outreach, coach conversations, manage investor pipelines, and consistently nurture relationships. * The Future Is AI With Context* * Michael explains how agents that maintain long-running context about an investor's business, goals, relationships, and preferences can move beyond simple prompts toward acting like an autonomous chief of staff.
Connect with our Deal Maker PartnersCheck out all Partners here
- Attorney - Swafford Law LLC
- Mentor - Deal Maker Mentoring
ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
Explore Michael’s Mentoring Program
Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session536/
In this episode, Michael Blank shares the seven-step blueprint that helped him achieve financial freedom through apartment investing—and how you can follow the same path. Reflecting on his own journey from flipping houses to buying multifamily properties, Michael reveals the misconceptions that kept him stuck for years and explains why apartment syndication offers a faster, more scalable path to wealth than single-family investing. He walks through the mindset shifts, systems, relationships, and daily habits required to close your first deal, build momentum, and ultimately create lasting financial freedom. Whether you're just getting started or feeling stuck on your investing journey, this episode provides a practical roadmap to help you take the next step with confidence.
Key Takeaways Single-Family Investing Isn't the Fastest Path to Financial Freedom * Michael explains why flipping houses and owning a handful of rentals delayed his progress, while apartment syndications offered the scale and cash flow needed to achieve financial freedom much faster. * A Strong "Why" Fuels Long-Term Success * Financial goals alone aren't enough. Defining a clear vision and connecting it to a deeper purpose helps you stay committed when challenges arise. * Your Environment Determines Your Growth * Building relationships with mentors, accountability partners, and a community of like-minded investors accelerates learning and creates access to deals, capital, and opportunities. * Consistency Beats Massive Action * Success comes from following a proven system and taking small, consistent actions every day—not from occasional bursts of motivation. * Your First Deal Changes Everything * Closing your first multifamily deal builds credibility, expands your network, and creates momentum that makes future deals significantly easier to secure. * Schedule Your Success* * Treat your investing activities like important meetings by blocking dedicated time on your calendar. Consistent execution over time is what ultimately leads to financial freedom.
Connect with our Deal Maker PartnersCheck out all Partners here
- Attorney - Swafford Law LLC
- Mentor - Deal Maker Mentoring
ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
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Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session535/
In this episode, Michael Blank sits down with investor and business strategist Dani Lynn Robison to explore how entrepreneurs can build wealth without sacrificing the life they're working so hard to create. After years of building businesses and investing in real estate, Dani shares why true financial freedom isn't just about accumulating assets—it's about creating alignment between your business, investments, and personal goals. She discusses the power of strategic partnerships, building scalable systems, protecting your time, and investing with intention so you can create lasting wealth while maintaining balance. Whether you're an active investor, business owner, or aspiring entrepreneur, this conversation offers practical insights on designing a business and investment strategy that supports the lifestyle you actually want.
Key Takeaways Financial Freedom Starts with Intentional Design * Building wealth isn't just about making more money—it's about creating a business and investment strategy that supports your ideal lifestyle. * Systems Create Scalability * Documented processes, automation, and the right team allow entrepreneurs to grow without becoming trapped in the day-to-day operations of their business. * Strategic Partnerships Accelerate Growth * Collaborating with people whose strengths complement your own creates opportunities that are difficult to achieve alone. * Protect Your Time Like Your Most Valuable Asset * Successful entrepreneurs focus on high-impact activities and delegate everything else to maximize both productivity and quality of life. * Diversification Builds Long-Term Stability * Expanding beyond a single business or investment creates multiple income streams and helps reduce overall risk. * Relationships Drive Long-Term Success* * Building trust, serving others, and maintaining authentic connections often leads to the best investment and business opportunities.
Connect with Dani Lynn Robison Website: https://freedomfamilyinvestments.com/ * LinkedIn: https://www.linkedin.com/in/danilynnrobinson/ * Instagram: https://www.instagram.com/danilynnrobison/ * Facebook: https://www.facebook.com/profile.php?id=61588981564517 * YouTube:* https://www.youtube.com/channel/UCZm2q57GvIfCE98SovUuoZw
Connect with our Deal Maker PartnersCheck out all Partners here
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ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
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Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session534/
In this episode, Michael Blank sits down with commercial real estate developer and AI expert Jake Heller to explore how artificial intelligence is transforming the way investors analyze deals, manage assets, and grow their businesses. As the founder of the AI for CRE Collective, Jay has tested hundreds of AI tools designed specifically for commercial real estate, helping investors cut through the hype and focus on practical applications that drive real results. Together, they discuss why AI should enhance—not replace—fundamental investing knowledge, how tools like Claude can dramatically improve productivity, and why the investors who embrace AI today will have a significant competitive advantage tomorrow.
Key Takeaways AI Is a Multiplier—Not a Replacement * The best investors use AI to enhance their existing knowledge and workflows, not replace sound judgment or real estate fundamentals. * Master the Fundamentals Before Relying on AI * Understanding underwriting, market analysis, and deal evaluation is essential, as AI is only as effective as the person guiding it. * Claude for Excel Is a Game-Changer * AI-powered spreadsheet tools can dramatically reduce the time it takes to analyze deals, build financial models, and automate repetitive tasks. * Measure AI by ROI, Not Hype * Before adopting any AI tool, determine whether it actually saves time, increases productivity, or helps generate more revenue. * AI Should Inform Decisions—Not Make Them * AI is excellent at modeling scenarios and analyzing data, but final investment decisions should always be made by experienced operators. * Early Adopters Will Gain a Competitive Edge* * Investors who learn to integrate AI into their daily workflows today will be significantly more productive than those who wait to adapt.
Connect with Jake Heller AI for CRE Collective: https://aiforcrecollective.com * Private AI for CRE Community: https://aiforcrecollective.com * LinkedIn: https://www.linkedin.com/in/jay-keller/ * AI for CRE Newsletter & Resources:* https://aiforcrecollective.com
Connect with our Deal Maker PartnersCheck out all Partners here
- Attorney - Swafford Law LLC
- Mentor - Deal Maker Mentoring
ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
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Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session533/
In this episode, Michael Blank breaks down one of the biggest mental roadblocks that keeps aspiring apartment investors from doing their first deal: raising capital. While most new investors gravitate toward finding deals because it feels safer, Michael explains why capital raising is the true catalyst for building a successful syndication business. He shares practical strategies for overcoming fear, leveraging experienced partners, having meaningful investor conversations before you have a deal, and building a repeatable system that attracts capital through trust and relationships. If you've ever believed you "can't raise money," this episode will challenge that mindset and give you a clear roadmap to getting started.
Key Takeaways Raising Capital Is a Learnable Skill * Many successful investors initially avoided capital raising, only to discover it was easier—and more rewarding—than they expected once they took action. * Start Building Investor Relationships Before You Have a Deal * Waiting until a property is under contract is too late. Educating investors and securing soft commitments ahead of time dramatically increases your chances of closing deals. * Your Team Can Replace Your Lack of Experience * If you don't have a track record, surround yourself with experienced operators, lenders, advisors, and property managers to build investor confidence. * Focus on Conversations, Not Sales Pitches * The best capital raisers educate, ask questions, and build trust rather than trying to convince people to invest immediately. * Raise Money One-on-One Before Scaling Online * Personal conversations help you refine your message, understand investor concerns, and build credibility before investing in online marketing. * Strategic Partnerships Accelerate Growth* * Partnering with experienced capital raisers and syndicators allows you to access larger investor networks and scale your business much faster.
Connect with our Deal Maker PartnersCheck out all Partners here
- Attorney - Swafford Law LLC
- Mentor - Deal Maker Mentoring
ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
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Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session532/
In this episode, Michael Blank welcomes back entrepreneur and alternative investment expert Patrick Grimes for a deep dive into building true wealth through diversification. After starting in multifamily real estate, Patrick expanded into asset classes like private credit, litigation finance, medical financing, and energy to create a more resilient investment portfolio. Together, they discuss why active investors should think beyond a single asset class, how partnering with experienced operators can accelerate success, and what it takes to evaluate alternative investments with institutional-level due diligence. Whether you're an active syndicator or a passive investor, this conversation offers valuable insights on reducing risk, creating multiple income streams, and building long-term financial freedom.
Key Takeaways Diversification Creates More Resilient Wealth * Relying on a single asset class can limit growth and increase risk. Adding non-correlated investments helps protect your portfolio through changing market cycles. * Partner with Experts Instead of Becoming One * Rather than mastering every asset class yourself, align with experienced operators who have decades of specialized expertise. * Alternative Investments Can Improve Risk-Adjusted Returns * Asset classes like litigation finance, medical financing, and private credit offer unique opportunities that often perform independently of traditional real estate and stock markets. * Due Diligence Is Your Biggest Competitive Advantage * Thoroughly vetting operators, track records, financials, and investment structures is critical before allocating capital to any opportunity. * Control Matters in Investment Partnerships * Structuring partnerships with greater transparency and oversight allows investors to better manage risk and protect their capital. * Your First Deal Opens the Door to Bigger Opportunities* * Whether through multifamily, self-storage, or another commercial asset class, getting into your first syndication creates momentum for long-term growth.
Connect with Patrick GrimesWebsite
Alternative Investing Mastery (webinars & educational platform)
YouTube
Alternative Investing Mastery Summit & Educational Resources
Connect with our Deal Maker PartnersCheck out all Partners here
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ResourcesConnect with Michael Blank
TheFreedomPodcast.com
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For full episode show notes visit: https://themichaelblank.com/podcasts/session531/
In this episode, Michael Blank sits down with Nicolas Lares, founder and CEO of Insur3Tech, to tackle one of the biggest challenges facing real estate investors today: skyrocketing insurance costs. Nicolas shares how his experience building innovative insurance solutions for Amazon's logistics network led him to create a group captive insurance model that gives real estate investors—from single-family landlords to large multifamily operators—more control over one of their fastest-growing expenses. They discuss why insurance premiums continue to rise, how captive insurance works, and why this alternative model can reduce costs, improve coverage, and even generate profit distributions for policyholders. If you're looking for practical ways to protect your portfolio and improve cash flow, this episode offers a fresh perspective on an often-overlooked wealth-building strategy.
Key Takeaways Traditional Insurance Is Becoming a Major Threat to Cash Flow * Rising premiums, reduced coverage, and increasing claims costs are making insurance one of the biggest challenges for real estate investors today. * Captive Insurance Gives Investors More Control * By joining a group captive, investors become part owners of the insurance company, allowing them to potentially lower costs while sharing in the company's profits. * Smaller Investors Can Now Access a Strategy Once Reserved for Institutions * Group captives make it possible for investors with just a few rental properties to benefit from a model that was traditionally only available to large portfolio owners. * Lower Claims Lead to Lower Long-Term Costs * Captive insurance aligns incentives by rewarding responsible owners who actively manage risk instead of encouraging unnecessary claims. * Strong Underwriting Protects the Entire Group * Careful member selection, property inspections, and ongoing risk management help create a healthier insurance pool and more predictable results. * Creative Solutions Can Strengthen Your Investing Business* * Exploring alternatives like captive insurance can help investors protect NOI, improve long-term profitability, and build more resilient real estate portfolios.
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- Attorney - Swafford Law LLC
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ResourcesConnect with Michael Blank
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Join the Deal Maker Mastermind
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Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session530/
In this episode, Michael Blank sits down with Dwight Dunton, founder of Bonaventure and a multifamily veteran with more than 25 years of experience managing nearly $3 billion in assets. From buying his first 378-unit apartment complex at age 25 to navigating the Great Financial Crisis, COVID, and today’s interest rate environment, Dwight shares the strategies that have helped him not only survive market downturns but thrive through them. The conversation explores why supply—not interest rates—is the biggest factor driving multifamily performance, how to structure debt and equity to withstand market volatility, and why “boring” markets often deliver the best long-term results. Dwight also breaks down creative tax strategies, including the lesser-known 721 exchange, and explains why preserving capital is the foundation of achieving financial freedom.
Key Takeaways Focus on Protecting Downside Risk First * Long-term success in real estate isn't about maximizing returns—it's about avoiding catastrophic losses and staying in the game through every market cycle. * Supply Matters More Than Interest Rates * While rising rates grab headlines, oversupply is often the real driver of declining rents and compressed NOI in multifamily markets. * Match Your Debt Strategy to Your Business Plan * Aligning asset type, financing structure, investor expectations, and hold periods reduces risk and creates more resilient investments. * "Boring" Markets Often Produce Better Returns * Markets with limited new supply and steady demand can outperform high-growth markets that attract excessive development. * Value-Add Creates Growth You Can Control * Investing in properties where you can improve operations and increase cash flow provides more stability than relying solely on market appreciation. * Tax Strategy Can Significantly Increase Wealth Creation* * Tools like 1031 exchanges, Delaware Statutory Trusts (DSTs), and 721 exchanges can help investors defer taxes, diversify holdings, and transition from active ownership to passive investing.
Connect with our Deal Maker PartnersCheck out all Partners here
- Attorney - Swafford Law LLC
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ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
Explore Michael’s Mentoring Program
Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session529/
In this episode, Michael Blank sits down with investor and capital raiser Robyn Thompson to explore the mindset, systems, and strategies behind raising capital for multifamily deals. After transitioning from residential real estate and fix-and-flips, Robyn realized that her true strength wasn't finding deals—it was building relationships and connecting investors with opportunities. She shares her journey from raising her first $400,000 to helping secure more than $3 million across multiple deals, revealing the lessons she learned about overcoming fear, building credibility, leveraging CRMs, and creating a repeatable capital-raising process. If you've ever felt intimidated by raising money or unsure whether you're a deal finder or a capital raiser, this episode provides a practical roadmap for taking action and building confidence.
Key Takeaways Your First Capital Raise Will Feel Uncomfortable—Do It Anyway * The hardest part of raising capital is starting the conversation. Confidence comes through repetition, and each conversation gets easier than the last. * Play to Your Strengths Instead of Doing Everything Yourself * Successful syndicators focus on their unique abilities, whether that's finding deals or raising capital, and partner with others who complement their skill sets. * Lead with Education, Not the Deal * Investors respond better when you focus on understanding their goals and educating them about their options instead of immediately pitching an opportunity. * Systems and CRMs Create a Scalable Capital-Raising Business * Organizing contacts, segmenting audiences, and consistently nurturing relationships through email, text, and social media turns capital raising into a repeatable process. * Trust and Credibility Matter More Than Perfect Pitch Decks * Investors want to work with someone who communicates clearly, understands their needs, and guides them confidently through the investment process. * Scarcity and Clear Next Steps Drive Action* * Asking for allocation amounts, scheduling follow-up conversations, and communicating limited availability can significantly improve investor commitment.
Connect with our Deal Maker PartnersCheck out all Partners here
- Attorney - Swafford Law LLC
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ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
Explore Michael’s Mentoring Program
Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session528/
In this episode, Michael Blank sits down with entrepreneur, investor, and syndicator Jennifer DeJesus to discuss what it takes to scale from running multiple businesses to building a sophisticated real estate investment platform. Starting with a career in corporate America, Jennifer transitioned into real estate, eventually building a vertically integrated ecosystem that included a brokerage, property management company, title company, construction business, and investment fund. She shares how she learned to raise capital, structure syndications, create operational systems, and step out of the day-to-day grind so she could focus on growth. The conversation dives into the power of partnerships, the importance of building the right team, and why syndication is one of the most effective vehicles for scaling wealth and creating financial freedom.
Key Takeaways Syndication Is the Ultimate Scaling Tool * Whether you're investing in real estate, acquiring businesses, or expanding into new asset classes, syndication allows you to leverage partnerships, capital, and expertise to grow faster. * Build Systems Before You Scale * Sustainable growth requires strong processes, clear accountability, and documented systems that allow the business to operate without constant owner involvement. * The Right People in the Right Seats Changes Everything * Scaling successfully depends on building a team with complementary strengths and ensuring every role is aligned with the company's vision and values. * Raising Capital Becomes Easier When You Solve Real Problems * Investors are more likely to invest when you're providing a clear solution to an existing need rather than simply pitching an opportunity. * Entrepreneurs Must Learn to Work on the Business, Not Just in It * Transitioning from operator to owner requires delegating responsibilities, trusting team members, and focusing on higher-value activities. * Business Acquisitions Can Accelerate Growth Dramatically* * Once a strong operational foundation is in place, acquiring complementary businesses can be one of the fastest ways to expand revenue and market presence.
Connect with our Deal Maker PartnersCheck out all Partners here
- Attorney - Swafford Law LLC
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ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
Explore Michael’s Mentoring Program
Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session527/
In this episode, Michael Blank sits down with asset management expert Cyndee Harding and her son Tyler to explore one of the most overlooked—but most critical—aspects of multifamily investing: asset management. While many investors focus on acquisitions and capital raising, Cyndee makes the case that true wealth is created through exceptional operations. She shares her proven framework for working with third-party property managers, implementing effective SOPs, tracking meaningful KPIs, and creating thriving resident communities that improve both tenant satisfaction and property performance. From leveraging AI to streamline operations to boosting renewals through community-building initiatives, this episode offers a fresh and practical perspective on how great asset management can dramatically increase investor returns while making a meaningful impact on residents’ lives.
Key Takeaways You Don’t Make Money When You Buy—You Make Money When You Operate Well * Strong underwriting is important, but executing the business plan through disciplined asset management is what ultimately drives returns. * The Best Asset Managers Partner Closely with Property Managers * Clear expectations, weekly accountability meetings, SOPs, and strong communication create alignment and improve property performance. * Community Building Improves the Bottom Line * Resident events, relationship-building, and creating a true sense of community can lead to higher renewals, lower delinquencies, and stronger occupancy rates. * Data Tells You What’s Happening—Questions Reveal Why * Metrics and KPIs are important, but successful asset managers dig deeper to understand the underlying causes behind vacancies, turnover, and operational challenges. * AI Is Becoming a Powerful Asset Management Tool * Automating reporting, identifying trends, and streamlining operational reviews allows asset managers to make faster, more informed decisions. * Return on Operations (ROO) Drives Return on Investment (ROI)* * Improving operational efficiency, communication, and resident experience creates long-term value that directly impacts investor returns.
Connect with our Deal Maker PartnersCheck out all Partners here
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ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
Explore Michael’s Mentoring Program
Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session526/
In this episode, Michael Blank sits down with marketing strategist and capital-raising expert Scott Corbett to break down what’s actually working in online capital raising today—and what’s no longer effective. With decades of experience in marketing, sales, and investor acquisition, Scott shares a practical roadmap for building trust, attracting the right investors, and scaling capital raises without relying on gimmicks or “easy button” tactics. They dive deep into investor psychology, content creation, AI-driven due diligence, paid traffic, organic marketing, and why understanding your avatar is the foundation of every successful capital-raising strategy. If you want to raise more capital in today’s tougher market environment, this episode delivers a masterclass in building authority, nurturing investor relationships, and creating a long-term marketing flywheel that actually works.
Key Takeaways You Must Know Your Investor Avatar Before Marketing Anything * Successful capital raising starts with understanding exactly who you’re speaking to—their fears, goals, pain points, and motivations. * Content Builds Trust Before Investors Ever Speak to You * Consistent videos, blogs, emails, and social content establish credibility and authority long before a prospective investor books a call. * Today’s Investors Care More About Risk Than Returns * In a post-2022 market, investors want to know how you protect capital and manage downside risk—not just projected IRRs. * AI Has Changed Investor Expectations * Investors are increasingly using AI tools like ChatGPT and Claude to evaluate sponsors and prepare sophisticated due diligence questions. * Organic Marketing Creates Long-Term Momentum * Building an email list, nurturing relationships, and consistently publishing valuable content creates a sustainable capital-raising flywheel over time. * Paid Traffic Only Works After the Foundation Is Built* * Facebook ads and paid campaigns can scale capital raising, but only after operators have strong messaging, content, systems, and investor trust already in place.
Connect with our Deal Maker PartnersCheck out all Partners here
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ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
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Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session525/
In this episode, Michael Blank sits down with veteran capital raiser Bronson Hill to unpack what’s really happening in today’s alternative investment landscape—and how investors should respond. After years of easy money, rapid appreciation, and aggressive multifamily growth, the market has shifted dramatically. Bronson shares candid lessons from raising over $55 million across multifamily, debt funds, oil & gas, mobile home parks, and private equity, while discussing the painful realities many operators and investors have faced over the last few years. Together, they explore market cycles, investor psychology, diversification, risk-adjusted returns, AI-driven due diligence, and why today’s challenging environment may actually create the best buying opportunities of the next decade. This is a masterclass in navigating uncertainty while staying focused on long-term financial freedom.
Key Takeaways The Best Investment Opportunities Often Appear During Fearful Markets * Historically, the strongest deals emerge when investors are hesitant, cautious, and sitting on the sidelines—not when everyone is rushing in. * Market Cycles Matter More Than Most Investors Realize * Understanding when to buy, hold, pause, or sell within an asset class is critical to long-term success and capital preservation. * Diversification Can Help Investors Weather Volatility * Exploring non-correlated assets like debt funds, precious metals, oil & gas, or private equity can create stability during turbulent market cycles. * Cash Flow Is King in Today’s Environment * Investors are prioritizing assets that generate immediate or near-term cash flow over speculative appreciation plays. * Great Operators Communicate During Difficult Times * Strong communication, transparency, and accountability matter even more than perfect track records when navigating challenging investments. * AI Is Becoming a Powerful Tool for Investor Due Diligence* * Investors can now use AI tools to analyze deals, uncover risks, generate questions, and align opportunities with their personal financial goals faster than ever before.
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In this episode, Michael Blank sits down with Lee Fjord, a real estate investor who has built an $80M+ portfolio and owns over 1,200 units—all starting from a single duplex. But the real focus of this conversation is capital raising in today’s shifting environment. As online funnels and paid ads become increasingly ineffective, Lee shares how he’s built a powerful, scalable system for raising capital locally through in-person events, curated meetups, and relationship-driven strategies. From hosting monthly property tours to creating a repeatable investor “flywheel,” Lee breaks down exactly how he’s raised nearly $2M from his network—and how you can do the same by prioritizing trust, consistency, and community.
Key Takeaways Local Capital Raising Is Back—and It Works * As online ads and webinars lose effectiveness, in-person events and local networking are proving to be far more reliable for building investor trust and raising capital. * Consistency Creates a Compounding “Flywheel” Effect * Hosting recurring monthly events builds familiarity, credibility, and momentum—turning casual attendees into long-term investors over time. * Start Small, Then Scale Strategically * Lee began with simple meetups and evolved them into curated experiences, proving you don’t need perfection—just consistency and iteration. * Curated Experiences Attract Higher-Quality Investors * Targeting accredited investors, asking the right questions, and filtering attendees helps ensure you’re building relationships with serious capital partners. * In-Person Connection Builds Trust Faster Than Funnels * Face-to-face interactions dramatically shorten the trust cycle compared to cold online leads, making it easier to convert relationships into investments. * Layered Engagement (Events + Webinars) Maximizes Reach* * Combining live events with ongoing touchpoints like webinars and follow-ups creates a powerful ecosystem for nurturing investor relationships.
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In this episode, Michael Blank sits down with seasoned investor and capital raiser Steeve Breton to unpack what it really takes to build—and protect—wealth in today’s multifamily market. With experience as a limited partner, general partner, and fund manager, Steeve brings a rare 360-degree perspective on investing. They dive into the realities of the past few challenging years, from interest rate shocks to overbuilt markets, and share hard-earned lessons on preserving capital, structuring deals, and adapting strategy in uncertain times. The conversation also explores opportunity zones, preferred equity, and how disciplined decision-making can be the difference between surviving and thriving on the path to financial freedom.
Key Takeaways A 360° Investor Perspective Is a Competitive Advantage * Understanding deals as an LP, GP, and capital raiser equips you to make smarter investment decisions and communicate more effectively with investors. * Market Cycles Expose Weak Assumptions * Rising interest rates and oversupply have revealed the importance of conservative underwriting and stress-testing deals before investing. * Preserving Capital Is More Important Than Chasing Returns * Experienced investors prioritize not losing money—especially in uncertain markets—over aggressive growth strategies. * Adaptability Is Critical in Tough Markets * From pausing distributions to restructuring deals and securing new financing, flexibility is essential to navigating downturns. * Preferred Equity and Opportunity Zones Offer Strategic Advantages * These lesser-discussed tools can provide downside protection and tax benefits when used correctly. * Strong Communication Builds Investor Trust* * Transparent, proactive communication during challenging times is key to maintaining long-term investor relationships.
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In this episode with Dana Samuelson, step outside the usual real estate conversation to explore the role of precious metals (specifically gold and silver) in today’s uncertain economic environment.
Why should real estate investors care about gold? Whether you’re a passive investor allocating capital or an active investor raising it, understanding alternative asset classes is critical. Precious metals have long played a role in preserving wealth, hedging against inflation, and providing liquidity during times of crisis—and today’s macro environment makes them especially relevant.
We break down the key drivers behind gold’s recent surge and volatility, including inflation, interest rates, central bank buying, geopolitical tensions, and the strength of the U.S. dollar. You’ll also hear how gold behaves differently from real estate and stocks—and why that matters when building a resilient portfolio.
Key Takeaways:* Gold can act as both an inflation hedge and a form of financial insurance * Market liquidity events can temporarily drag down all assets—including gold * Interest rates and the strength of the dollar play a major role in gold pricing * Diversification across asset classes is essential for long-term wealth preservation * Real estate and gold can complement each other when used strategically
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In this episode, Michael Blank sits down with Andrew Majd of Dew Wealth Management to break down what true wealth management actually looks like beyond just investing. From tax strategy and alternative investments to insurance, estate planning, and building the right professional team, Andrew outlines a comprehensive “Protect, Grow, Manage” framework that high-net-worth individuals can use as a checklist for building—and keeping—wealth. This episode is a must-listen for anyone looking to close the gaps in their financial strategy and take a more proactive, holistic approach to wealth.
Key Takeaways Wealth management goes beyond investing — it includes protection, tax strategy, estate planning, and team coordination. * Insurance and asset protection are often overlooked, yet they’re the fastest way to lose wealth if done incorrectly. * A proper estate plan (especially a revocable trust) is critical to avoid probate and protect your legacy. * High-net-worth investors should diversify beyond stocks and bonds into alternative assets like real estate, private credit, and more. * Proactive tax planning can save significant money, but most CPAs are reactive unless pushed or supported by a strategist. * Your financial professionals must work together* — lack of coordination creates costly gaps and inefficiencies.
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In this episode, Michael sits down with August Biniaz, co-founder and Chief Investment Officer of CPI Capital, to discuss why he believes multifamily is approaching a major recovery—and how investors can position themselves now. August shares his perspective on the current market cycle, the challenges of raising foreign capital into U.S. deals, and why he remains bullish on multifamily despite recent headwinds.
The conversation also explores why U.S. real estate remains so attractive compared to Canada, how to structure cross-border syndications, and why investors must stay disciplined and continue underwriting deals even in a difficult market.
Key Takeaways* August believes multifamily fundamentals remain strong because new construction has slowed dramatically while population growth continues. * Today’s biggest challenge is the “bid-ask spread”—sellers still want 2022 pricing while buyers need lower prices to make deals work. * Finding great deals is still a numbers game: the investors closing deals are underwriting far more properties than everyone else. * U.S. multifamily remains more attractive than Canadian real estate because of stronger cash flow, fewer regulations, and better long-term yields. * Cross-border investing requires the right legal and tax structure, especially when bringing Canadian capital into U.S. syndications. * Multifamily is still one of the best industries for entrepreneurs because even the largest operators control only a tiny share of the market.
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In this episode, Michael sits down with Bob Fraser, CFO and Chief Macro Strategist at Aspen Funds and author of Invest Like a Billionaire. Bob shares why billionaires invest very differently than most people—and why relying solely on stocks and bonds may be limiting your ability to build long-term wealth.
The conversation explores alternative investments like multifamily, private credit, industrial real estate, oil and gas, and private equity. Bob explains how to think through market cycles, why diversification across uncorrelated assets matters, and how investors can position themselves to benefit from long-term tailwinds instead of chasing the latest trend.
Key Takeaways* Billionaires don’t rely on a traditional 60/40 portfolio—they allocate heavily to alternative investments and uncorrelated assets. * There is always an asset class that is working, even when another is struggling, which is why diversification across market cycles matters. * Private credit can provide equity-like returns with lower risk by acting as the lender instead of the owner. * Investors should focus on long-term macro tailwinds like reshoring, industrial real estate, and energy demand rather than chasing short-term narratives. * Great operators are defined by how they perform during difficult market cycles, not just during boom years. * You don’t need to master every asset class yourself—joint ventures and partnerships can help you gain exposure to new opportunities.
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In this episode, Michael Blank answers a listener question about what happens when a deal doesn’t go as planned—specifically, how to handle loan restructuring in today’s challenging market. With rising interest rates and tighter lending conditions, many operators are facing refinancing pressure. Michael walks through practical strategies for working with lenders, protecting investors, and navigating difficult situations while maintaining credibility and long-term relationships.
Key Takeaways * Loan challenges are more common in today’s market, especially with floating-rate debt and expiring terms. * Proactive communication with lenders is critical — the earlier you engage, the more options you have. * Lenders don’t want to take your property — they are often willing to restructure if you bring a realistic plan. * Transparency with investors builds long-term trust, even when deals face difficulties. * Sometimes additional capital or modified terms are necessary to stabilize a deal. * How you handle tough situations defines your reputation far more than easy wins.
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In this episode, Michael Blank breaks down the two biggest myths that stop aspiring investors from getting started in apartment building investing. Many believe they need years of experience or their own capital to do a deal—but Michael explains why neither is true. By reframing these misconceptions and focusing on building the right team and skill set, you can fast-track your path to your first multifamily deal and start scaling much faster than you thought possible.
🔑 Key Takeaways * Myth #1: You need experience to get started — you can leverage a team and partners to “borrow” credibility and track record. * Myth #2: You need your own money — raising capital is a learnable skill and a core part of syndication. * Syndication is a team sport — success comes from assembling the right people, not doing everything yourself. * Taking action matters more than perfection — waiting until you feel “ready” delays progress unnecessarily. * You can specialize in one role (deal finder or capital raiser) instead of mastering everything upfront. * Breaking these two myths unlocks momentum, making your first deal far more achievable than most people think.
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In this solo episode, Michael Blank introduces a powerful strategy designed to help aspiring syndicators overcome the biggest obstacle in real estate: getting your first deal done. While most first deals take 6–12 months, Michael explains how you can dramatically accelerate your learning curve by running a “Live Sample Deal”—a simulated real-world acquisition that walks you through the entire process in just seven days.
By analyzing a real property, speaking with brokers, building your team, and even negotiating an offer, you gain the experience and confidence needed to pursue actual deals. This practical exercise helps eliminate fear, expand your comfort zone, and move you significantly closer to closing your first multifamily investment.
Key Takeaways The first deal changes everything — once you close a deal, brokers, investors, and opportunities start coming to you. * Most first deals take 6–12 months, but you can accelerate your learning through a simulated “Live Sample Deal.” * Confidence comes from action, not just education—walking through the full deal process builds real-world experience. * Simulating a deal removes fear, especially the fear of making offers or raising capital. * Running a sample deal can get you roughly 80% of the experience of doing a real transaction. * Expanding your comfort zone is key*—what once felt impossible (like a 50-unit deal) quickly becomes achievable after practicing the process.
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In this solo episode, Michael reflects on the biggest lessons he’s learned over the past 30 days—from the state of the multifamily market to the power of relationships, networking, and emerging technologies like AI. Drawing from recent conferences, conversations with industry leaders, and personal experiences, he shares key insights that could shape how investors approach the next phase of the market cycle.
Michael discusses why many experts believe multifamily is near the bottom of the cycle, why diversification beyond real estate matters, and how building community and meaningful relationships can dramatically impact both business success and personal fulfillment. He also shares why he believes artificial intelligence will fundamentally transform productivity and entrepreneurship in the years ahead.
Whether you're an active investor, aspiring syndicator, or simply looking for clarity in a shifting market, this episode delivers practical insights and mindset shifts that can help you navigate the next stage of your investing journey.
Key Takeaways* Why many industry experts believe the multifamily market may be at or near the bottom of the cycle * The role of interest rate stability and supply constraints in shaping the next phase of growth * Why absorption rates and concessions are becoming key indicators to watch in apartment markets * How diversification into other asset classes—and even operating businesses—can strengthen your portfolio * The unexpected opportunities that come from networking and getting out of your comfort zone * Why investing in your closest relationships may be the most important investment you make * How artificial intelligence is rapidly transforming productivity, analysis, and entrepreneurship * Why building community is becoming increasingly important in a world with declining online trust
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In this solo episode, Michael Blank shares the exact moment he pivoted from flipping houses and single-family rentals into multifamily investing—and why it became the single best financial decision of his life. He breaks down the math, the scalability, the risk profile, and the long-term wealth-building power of apartment syndications compared to other strategies like flips, short-term rentals, and pad splits. If you’re wondering how to truly scale real estate without burning out, this episode lays it out step by step.
Key Takeaways * Single-family investing doesn’t scale efficiently — replacing income requires dozens of properties and constant effort. * Multifamily syndications create multiple profit centers: acquisition fees, asset management fees, cash flow, and equity at sale. * You get paid when you buy in multifamily—something no other strategy offers at scale. * Professional property management makes multifamily more passive, allowing faster growth with less day-to-day involvement. * Risk is reduced through diversification — 100 tenants are safer than one. * Long-term housing shortages and declining new construction permits support strong multifamily fundamentals.
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In this episode, Michael Blank sits down with capital-raising expert Steve Libman to discuss what it really takes to attract investors in today’s challenging market. From building credibility and long-term trust to navigating objections and resetting expectations, Steve shares practical strategies for raising equity when fear and uncertainty are high. This conversation is a masterclass in relationships, resilience, and playing the long game in syndication.
Key Takeaways * Capital raising is a long-term relationship business, not a transactional one. * Investors are more cautious than ever, requiring transparency, conservative underwriting, and consistent communication. * Your track record is built during downturns, not bull markets. * Education reduces fear — the more investors understand market cycles, the more confident they become. * Follow-up and consistency matter more than charisma when building investor trust. * The operators who survive this cycle will emerge stronger, with deeper investor loyalty and credibility.
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In this data-driven episode, Michael Blank is joined by returning guest Neal Bawa, one of the most analytical minds in multifamily real estate. Neal breaks down why the market has failed to rebound as many expected, why 2026 may remain a “muddling” year, and how excess supply, construction costs, and policy decisions are reshaping rents and underwriting assumptions. This conversation offers a clear-eyed, numbers-based outlook on what investors should realistically expect over the next several years.
Key Takeaways The market is behaving rationally, not emotionally — despite abundant capital, investors remain cautious due to fundamentals, not fear. * Three consecutive years of oversupply broke historical patterns, causing Class B and C assets to feel pressure previously thought impossible. * Rent growth is slowly returning, with projections around ~1.5% in 2026 and normalization closer to 2.5% beyond that. * Many deals will never return to original pro formas, requiring investors to reset expectations and focus on survivability over returns. * Rising construction costs from labor shortages and tariffs are likely to suppress new development and benefit existing assets long term. * 2027–2029 may see meaningful upside*, as reduced supply finally meets sustained housing demand.
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In this candid and wide-ranging conversation, Michael Blank reconnects with Rod Khleif, multifamily investor, educator, and entrepreneur, to unpack what’s really happened in real estate over the past few years. Together, they discuss the current multifamily downturn, rising expenses, distressed assets, and why pain in the market often creates the greatest opportunities. The episode also explores alternative asset classes, operating businesses, syndication beyond apartments, and how investors can position themselves for what’s coming next.
Key Takeaways * Multifamily is going through a real reckoning, driven by rising interest rates, expenses, and maturing debt—not a broken asset class. * Separating the past from the future is critical — what happened over the last two years doesn’t define the next cycle. * Syndication is the transferable skill, applicable to real estate, senior housing, self-storage, and even operating businesses. * Distress creates opportunity, especially with forced sales, refinancing challenges, and upcoming loan maturities. * Partner selection matters more than ever — misaligned or weak partners can destroy otherwise solid deals. * Diversification across asset classes and strategies can create resilience during volatile market cycles.
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In this solo episode, Michael Blank breaks down what really happened in multifamily during 2025 and what investors should expect in 2026. He unpacks supply and demand trends, rent growth, interest rate expectations, and the affordability crisis shaping renter behavior. While the last few years have been challenging, Michael explains why 2026 is likely a year of stability that sets the stage for long-term growth—and why today’s risk-adjusted returns may be better than they’ve been in years.
Key Takeaways 2025 was a year of absorption, not growth — record demand was offset by an unprecedented wave of new supply, keeping rents flat to down. * New construction is falling sharply, with permits dropping and high interest rates making most projects uneconomical. * Affordability favors renting, as buying a home now costs significantly more than renting, supporting long-term rental demand. * 2026 consensus outlook is stability with modest rent growth, likely around 2%, setting up normalized growth in 2027 and beyond. * Interest rates are expected to be flat to slightly down, a meaningful shift from the uncertainty of the past three years. * Lower leverage and better pricing improve risk-adjusted returns*, making today’s environment healthier than the frothy market of 2021–2022
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In this episode, Michael sits down with Derrick Lind, a structural engineer with 25 years of experience who transitioned from single-family rentals into multifamily syndication. Derrick shares how his analytical mindset both helped—and initially held him back—as he navigated analysis paralysis, conservative underwriting, and fear of taking action. He also discusses how mentorship, networking, and ultimately writing a book (Real Estate Investing for Engineers) helped him break through and close larger deals with confidence.
Key Takeaways * Analytical strengths can become liabilities — engineers and professionals excel at analysis but often struggle to take action without perfect information. * Single-family rentals become inefficient at scale, leading many investors to multifamily for better operations, valuation control, and professional management. * You don’t need 100% certainty to move forward — real estate is forgiving, and most deals allow room to adjust after closing. * Mentorship and networks accelerate growth by providing experienced perspectives, deal flow, and partnership opportunities. * Being overly conservative can prevent deals entirely — it’s better to manage risk than avoid it altogether. * Authority builds credibility — writing a book positioned Derrick as a trusted expert and opened doors with investors and partners.
Check Out His BookReal Estate Investing for Engineers: Grow Passive Income with a Technical Mindset - By Derrick Lind
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In this episode, Michael Blank sits down with Hal Elrod, bestselling author of The Miracle Morning, to talk about habits, mindset, and resilience. Hal shares how a near-fatal car accident, cancer, and financial collapse reshaped his philosophy on success—and why personal development is the foundation of financial freedom. This conversation explores how investors can use intentional daily routines to build clarity, discipline, and long-term fulfillment both in business and in life.
Key Takeaways * Morning routines shape long-term success — how you start the day determines focus, energy, and results. * Adversity is neutral — meaning comes from the perspective you choose, not the circumstance itself. * Personal development is non-negotiable — investing in yourself accelerates every other area of life. * Small daily habits compound over time, creating massive long-term impact. * Success without fulfillment is failure — aligning goals with purpose matters more than achievement alone. * Consistency beats intensity — sustainable routines outperform short-lived motivation.
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In this solo episode, Michael Blank pulls back the curtain on why he’s expanding beyond multifamily real estate into business acquisitions and private equity. He breaks down how buying operating businesses can complement real estate investing, diversify investor portfolios, and create strong cash flow without day-to-day operations. Michael shares the exact framework, buy box, and risk-mitigation strategy he’s using as Nighthawk Equity cautiously enters this space—and why this move is about long-term stability, not abandoning multifamily.
Key Takeaways* Business acquisitions can provide strong cash flow and diversification alongside real estate investments. * Michael evaluates businesses using a simple three-bucket framework: talent, customers, and cash management. * The focus is on stable, recession-resistant businesses with experienced leadership already in place. * Conservative use of debt—and often seller financing—is key to managing downside risk. * Unlike multifamily, business acquisitions offer higher cash flow but fewer tax advantages. * This strategy is about complementing multifamily, not replacing it, with a long-term investment mindset.
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In this special and deeply personal episode, Michael sits down with his wife, Vivian Blank, to talk about life beyond real estate. From spending off-season time at Hilton Head to navigating marriage, goal-setting, communication, and long-term partnership, this conversation explores what it really takes to build a meaningful life together while pursuing ambitious goals. Whether you’re married, building a business, or thinking about long-term alignment with your partner, this episode offers honest insights and practical wisdom.
Key Takeaways Shared goal-setting strengthens relationships — regularly discussing goals creates accountability, clarity, and deeper connection. * You don’t need to work side-by-side to work together — support, communication, and alignment matter more than traditional roles. * Saying goals out loud increases follow-through — verbal commitment makes achievement more likely. * Communication is the foundation of conflict resolution — addressing issues early prevents resentment from building. * Intentional retreats create space for reflection — stepping away from daily routines helps couples reconnect and reset. * Strong partnerships require flexibility and humility* — marriage, like business, is an ongoing work in progress.
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Have you ever asked ChatGPT how to make $10K per month in real estate? I did—and the advice it gave me is the same advice most new investors follow. Buy a few rentals, flip some houses, maybe try BRRRR or short-term rentals. The problem? That advice doesn’t actually work for busy six-figure earners who want financial freedom without adding another full-time job.
In this episode, I break down why AI’s generic advice can actually hold you back, and why most single-family strategies will leave you stuck in the rat race far longer than you expect. I’ll walk you through a smarter way to use ChatGPT—one that tailors its recommendations to your income, your time constraints, and your financial freedom goals. And I’ll share how this real estate strategy finally allowed me, and hundreds of my students, to scale up and start generating mailbox money.
Key Takeaways1. ChatGPT’s Advice Won’t Get You to $10K/Month
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AI spits out the same top strategies everyone else does—rentals, flips, BRRRR—without any context for your time, income, or goals.
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Single-Family Is a Trap for Busy Professionals
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Flips and rentals feel like another full-time job and don’t scale to true financial freedom.
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Most investors realize too late that these strategies can’t replace a six-figure income.
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Better Prompts = Better Strategies
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Learn how to ask ChatGPT the right questions so its recommendations actually fit your lifestyle and timeline.
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Hint: You need prompts that factor in your job, experience level, and freedom goals.
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Multifamily Is the Scalable Solution
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With the right approach, you can learn the process, buy your first apartment building in as little as 6 months, and start generating mailbox money.
- One good deal can set you on the path to financial freedom.
Connect with our Deal Maker PartnersCheck out all Partners here
- Attorney - Swafford Law LLC
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Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session504/
In this episode, Michael sits down with Jay Bourgana, a turnaround expert and business builder who went from immigrant roots to overseeing $350M in real estate sales—and now focuses on acquiring and scaling profitable private businesses. Jay breaks down how buying established companies can accelerate wealth creation, how to structure acquisitions without becoming the day-to-day CEO, and why this strategy pairs naturally with syndication and real estate investing. If you’re curious about business acquisitions as a scalable, high-cash-flow complement to multifamily, this episode is for you.
Key Takeaways Buying established businesses can outperform real estate on cash flow, with acquisitions often priced at 2–4x EBITDA and significant upside on exit. * This strategy is not passive — business acquisitions are best suited for operators with experience, systems thinking, and the ability to build teams. * The goal isn’t to run the business forever: acquire, stabilize, install leadership, and step back from day-to-day operations. * Three systems drive every successful business: customer acquisition & retention, talent acquisition & retention, and financial visibility. * Debt can dramatically amplify returns when paired with strong cash flow, including SBA loans and seller financing. * Recurring-revenue businesses are ideal*, especially those with an install + maintenance model that creates predictable long-term income.
Connect with our Deal Maker PartnersCheck out all Partners here
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TheFreedomPodcast.com
Join the Deal Maker Mastermind
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Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
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For full episode show notes visit: https://themichaelblank.com/podcasts/session503/
In this episode, Michael Blank sits down with Brad Johnson, a 20-year real estate investor who has managed over $3B in assets and successfully transitioned from mobile home park operator to full-time asset allocator. Brad shares how he built his career one deal at a time, the moment he walked away from investment banking, and how he engineered a lifestyle that aligns with his values. This episode is packed with practical wisdom on career transitions, downside-risk investing, and creating long-term financial freedom.
Key Takeaways The power of compounding — Brad’s investing mindset started early, recognizing the value of long-term ownership. * Career clarity matters — He repeatedly redesigned his professional path when he realized certain roles didn’t fit the life he wanted. * Real estate as stability — Mobile home parks gave him consistent, low-risk, scalable returns and helped him transition out of burnout. * Know your strengths — Brad realized he’s an investor, not an operator, and pivoted from managing teams to allocating capital. * Diversification through operators — Today he partners with 15+ sponsors and private equity firms to spread risk and scale intelligently. * Lead with passion, not just money* — Brad highlights the importance of pursuing what energizes you and letting wealth compound over time.
Connect with our Deal Maker PartnersCheck out all Partners here
- Attorney - Swafford Law LLC
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ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
Explore Michael’s Mentoring Program
Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session502/
In this special mentor roundtable, Michael is joined by long-time advisors Brad Tacia and Jonathan Nichols to break down what’s happening in multifamily right now. They share the latest trends in deal flow, investor sentiment, capital raising, and student success—plus the strategies that are working best in today’s market. If you want a clear picture of the current landscape and how new investors are getting deals done, this episode is for you.
Key Takeaways Deal flow is improving as interest rates stabilize and lenders stop granting extensions, pushing more assets to market. * Investor sentiment is stronger than last year, and capital raising is easier with more certainty in the economy. * Consistency wins — analyzing deals, making offers, and staying resilient through near misses is the path to success. * Partnerships matter — deal finders and capital raisers together accelerate momentum and unlock bigger opportunities. * Sample deal packages allow students to raise capital before they have a deal under contract, solving the “chicken-and-egg” problem. * You don’t need years of experience* to get broker attention — consistency, communication, and a clear playbook build instant credibility.
Connect with our Deal Maker PartnersCheck out all Partners here
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ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
Explore Michael’s Mentoring Program
Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session501/
To celebrate 500 episodes of the Financial Freedom with Real Estate Podcast, Michael flips the script and answers your biggest questions. Listeners submitted their favorite episodes plus their most burning questions about scaling, quitting a W-2, raising capital, working with brokers, avoiding bad deals, parenting, mindset, and even… Michael’s net worth. This special episode is packed with hard-earned wisdom from a decade of podcasting and real-world investing experience.
Key Takeaways:
- Time is not the real barrier — priority is. With 5 focused hours a week, you can build a multimillion-dollar real estate business on the side.
- When to quit your W-2? It’s personal. Burn-the-boats works for some, but most people exit when acquisition fees and deal income create a meaningful financial runway.
- Comfort zone determines whether you buy a duplex or a 50-unit. Touring larger properties stretches your perceived limits instantly.
- Raising capital is easier than you think. Engineers, introverts, and first-timers routinely raise $500K–$750K within 60 days with the right playbook.
- You don’t need to raise all the money yourself. Capital raisers and deal finders are natural partners — leverage ecosystems and joint ventures.
- How to stand out to brokers: Build a team first, stop using newbie language, stay responsive, and meet them in person.
- Know when to walk away from a deal: Sometimes you should — sometimes you shouldn’t. Experienced mentors help you see the difference.
- Focus on passive income, not net worth. Financial freedom is when passive income exceeds living expenses.
- Most valuable life lesson for his kids: Live intentionally. Not defaulting into a career or life path.
- Success is less about outcomes and more about who you become. Mindset, peace, and character matter more than money.
Connect with our Deal Maker PartnersCheck out all Partners here
- Attorney - Swafford Law LLC
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ResourcesConnect with Michael Blank
TheFreedomPodcast.com
Join the Deal Maker Mastermind
Explore Michael’s Mentoring Program
Review the Podcast on Apple Podcasts
Get the Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session500/
What if you could build wealth through real estate… without paying taxes along the way? In this episode, Michael Blank welcomes Louis Rogers, founder of Capital Square and pioneer of the tenants-in-common model still widely referenced today. Lewis breaks down the simplicity of 1031 exchanges, why DSTs have replaced TICs, and how investors can eventually move into a REIT structure to enjoy completely passive investing — while still deferring taxes. If you want to learn how the wealthy use the tax code to accelerate their net worth, this episode is a must-listen.
Key Takeaways:
- 1031 exchanges are simpler than most people think — and typically cost about $1,000 using a qualified intermediary.
- The old tenants-in-common (TIC) structure is obsolete — DSTs are now the preferred option for 1031 investors.
- Investors can move from active ownership → DSTs → UPREIT, getting more passive over time.
- Tax deferral can continue for life — with a step-up in basis eliminating capital gains upon inheritance.
- The U.S. tax code is uniquely favorable to real estate — wealthy families use it strategically.
- Paying taxes is a choice: learn the rules and keep more of your money working for you.
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Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session499/
Did you know there’s more than $40 trillion sitting in U.S. retirement accounts — most of which could be invested in real estate? In this episode, Michael Blank chats with Karen Hall, Founder of uDirect IRA and author of The BiggerPockets Guide to Self-Directed IRA Investing, to break down the rules, tax implications, and best practices that allow investors to use their retirement funds to participate in real estate syndications. Whether you're a GP raising capital or an LP investing passively, this conversation will help you unlock one of the biggest capital sources in the world.
Key Takeaways:
- There is $40 trillion in retirement accounts — a huge capital pool most investors overlook.
- Self-directed IRAs can invest in syndications, rentals, notes, crypto, precious metals, and more.
- The IRS has prohibited transaction rules — keep investments arm’s length to avoid penalties.
- UBIT/UDFI taxes can apply when leverage is involved — tax advisors are essential.
- A solo 401(k) can reduce some debt-related tax exposure.
- Recent laws may allow employer 401(k)s to include alternative investment funds, opening the door wider.
- Always ask investors: “Do you have retirement funds?” — because most won’t think of it themselves.
Connect with MichaelFacebook
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Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session498/
In this episode, Michael talks with Jordan McNeely, a former nuclear engineer who realized his rotating 12-hour shift job was draining his energy and keeping him from family life. That sparked his pursuit of passive income and a scalable path to financial freedom through multifamily real estate.
Jordan dove into education, joined a mentoring program to master underwriting and capital raising, and committed 15 hours a week to learning and networking. In just a few months, he partnered with an experienced team on a 96-unit deal in Charlotte and raised over $700,000 from friends and family — despite never having raised money before.
Key Takeaways:
- Skip single-family and scale faster — multifamily penciled out and aligned with his limited time.
- Time freedom was the motivator — rotating day/night shifts took a toll on family, health, and presence.
- Mindset shift on raising capital — he stopped “pitching” and started asking about investor goals.
- One investor conversation per day → $700K raised in 2 months.
- Retirement funds unlocked big capital using self-directed IRAs.
- Partnerships shortcut experience — he leveraged a team already active in Charlotte.
- He made time a priority — 15 hours/week dedicated to education, networking, and raising capital.
Connect with MichaelFacebook
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Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session497/
Ever wonder what really goes on inside a syndication company? In this rare behind-the-scenes episode, Michael Blank and his Nighthawk Equity business partner, Drew Niffin, pull back the curtain on how they operate their private equity firm — the wins, the painful lessons, and how they’ve adapted during the toughest market the multifamily industry has seen in decades.
They share the full story of scaling from the early partnership days… to building a team… to navigating the last 2.5 years of interest rate spikes, stalled rent growth, and operational pressure. You’ll also get a candid look at what’s changing inside Nighthawk — including new investment opportunities being unlocked for passive investors.
This is the most transparent discussion they’ve ever recorded about what it really takes to run an investment company — and where multifamily investing is going next.
Key Takeaways:
- Success Takes a Team: Syndication is impossible to scale alone. Capital raising, operations, and acquisitions each demand full-time focus.
- Systems Create Stability: Implementing a business operating system like EOS transformed communication, accountability, and execution across the company.
- Hard Markets Build Strong Operators: The last 2.5 years forced better operations, tougher decisions, and stronger lender relationships.
- Debt Determines Destiny: Loan structure can make or break a deal — even if operations are strong.
- Operations Win: Leasing, renewal strategy, resident experience, and in-house oversight are now essential competitive edges.
- The Future Is More Than Multifamily: Nighthawk is expanding into real estate debt funds and boutique private equity (buying profitable small businesses).
- Investor-First Mission: Every system and decision centers on one outcome — delivering reliable performance to passive investors.
Connect with MichaelFacebook
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Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session496/
Andrew Reichert, CEO of Birgo Capital, went from buying his first duplex with no money down to owning 3,000+ units worth over $300 million. But his journey wasn’t all smooth sailing - Andrew reveals how building a 20-rental portfolio nearly bankrupted him, the “$10M idea” that changed everything, and the lessons he learned scaling his business.
Whether you’re stuck managing a handful of single-family rentals or trying to figure out how to break into larger deals, this conversation will help you shortcut years of trial and error.
Key TakeawaysWhy Small Rentals Won’t Set You Free
- How Andrew realized that $200/month per property wasn’t going to replace his income.
- The math that made him pivot away from single-family rentals.
From Duplexes to a $300M Portfolio
- Why raising capital was the turning point in his career.
- How starting with a fund instead of a single deal accelerated his growth.
The Hardest Lesson in Scaling a Company
- Why “the people who got you here won’t always get you there.”
- How to make tough calls without losing sight of your mission.
Finding Purpose Beyond Financial Freedom
- How Andrew’s Rhino Operating System helps people align their work with their purpose.
- Why clarity—not just cash flow—is the real key to building a fulfilling life.
Overcoming Comfort and Taking Action
- Why staying “comfortable” keeps most investors from scaling.
- Practical tips to create urgency and move from idea to execution.
Connect with AndrewLinkedIn
Birgo Capital
ROS Journey – The Rhino Operating System Book
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Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session495/
Economic pressure is shrinking returns and tightening capital—but there’s a smarter way forward. In this episode, Michael Blank reconnects with Richard Wilson, founder of the Family Office Club, to explore how multifamily operators can add new strategic layers—not abandon their base.
Richard explains why family offices are focusing less on projected returns and more on trust, positioning, and access. He breaks down how top operators are earning investor confidence, raising capital through debt and niche strategies, and using AI to scale their investor reach and event ecosystems. This isn’t about leaving multifamily—it’s about unlocking more sophisticated pathways to grow wealth and build influence.
Key TakeawaysRelationships outweigh returns
- Investors commit capital based on trust, not just numbers.
- Track records are only as strong as the operator’s transparency during tough times.
- Desperation repels capital—authenticity and long-term engagement are key.
Multifamily is a foundation
- Real estate experience builds credibility that opens doors to new asset classes.
- Diversification into storage, assisted living, or industrial doesn’t replace multifamily—it expands the investor's options.
- Many capital raisers evolve beyond single-operator deals by layering in flexibility and variety.
Great fund managers think like media companies
- Creating value-rich content builds investor confidence long before a deal shows up.
- Every touchpoint—grad parties, social media, one-on-one texts—is a chance to reinforce trust.
- Consistent communication and thoughtful follow-up outperform one-off pitches.
Family offices play a long game
- They don’t just invest in deals—they invest in people with generational vision.
- Credibility, track record, and staying power are non-negotiables.
- It often takes years of rapport-building before a single dollar is committed—but the result is deep, repeatable capital.
Connect with RichardWebsite
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Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session494/
In this special market outlook session, Michael Blank breaks down the current state of the multifamily investing landscape—and explains why Q4 2025 may present one of the best buying opportunities we've seen in over a decade.
Despite high interest rates and ongoing fear in the media, Michael shares why the smart money is moving back into multifamily real estate, and how passive and active investors alike can take advantage of this rare window.
He also makes a few big announcements—including a move into business acquisitions and real estate debt funds—designed to expand the wealth-building options available to his investor community.
If you're wondering whether to sit tight, double down, or make your first move—this is the clarity you're looking for.
Key TakeawaysMultifamily prices are still 20–40% below their 2022 peak
- Institutional buyers are actively acquiring distressed assets
- Market fear has created undervalued buying opportunities
- Valuations remain well below replacement cost
Rising leverage is pushing prices back up
- Loan proceeds are increasing from 65% to 75% LTV
- Lenders are re-entering the market with more aggressive terms
- Higher leverage means stronger returns with less equity required
Demand for rental housing remains strong
- Homeownership is 44% more expensive than renting
- The U.S. faces a multi-million-unit housing shortage
- New construction activity has slowed significantly
Risk-adjusted returns are stronger than in 2022
- Interest rates are stabilizing, lowering market uncertainty
- Deals now use fixed-rate debt and more conservative underwriting
- Investors are getting the same returns with significantly less risk
The Passive Income Calculator helps investors plan their freedom
- Allows modeling based on actual investment inputs
- Tracks projected growth in passive income and net worth
- No opt-in required—download and start planning immediately
New opportunities are coming from TMB
- Expansion into real estate debt funds and business acquisitions
- Targeting cash-flowing, recession-resistant businesses
- Designed to offer passive investors more options for building wealth
Connect with MichaelFacebook
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Access the #1 FREE Apartment Investing Course (Apartments 101)
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Explore Michael’s Mentoring Program
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Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session493/
Most people raising capital are doing it completely wrong. They focus on flashy decks, mass emails, and trying to “look big”—but investors can smell the inauthenticity from a mile away.
Jeremy Dyer took a different approach. He raised $50M in under 2 years by leading with trust, transparency, and one-on-one conversations—all while holding down a full-time tech sales job and raising four kids.
In this episode, Michael Blank uncovers the real strategies behind Jeremy’s rise from passive investor to powerhouse capital raiser. You’ll learn how he built a loyal investor base, scaled legally with fund-to-fund models, and is now buying deals at massive discounts while others sit on the sidelines. If you think capital raising is about money—it’s not. It’s about people.
Head over to https://thefreedompodcast.com/500 to submit for a chance to win free merch and be highlighted in episode 500!!!
Key TakeawaysWhy LP Experience Makes You a Better Syndicator
- Jeremy invested in over 40 syndications before ever raising a dollar.
- Seeing wins and losses helped him understand what real investors care about.
- He built empathy—and that changed everything.
Capital Raising is Human, Not Corporate
- His $50M didn’t come from ads—it came from deep personal conversations.
- Jeremy rebranded himself organically, one investor at a time.
- Sales background helped, but being authentic mattered more.
How to Stand Out in a Sea of Noise
- He personally checks in with 20 investors every week.
- Following up on personal details (like a kid’s birthday) beats “just checking in” emails.
- Raising capital is about trust—not timing.
The Right Way to Raise Capital for Others
- Jeremy uses fund-to-fund structures to stay compliant.
- He partners with operators without muddying incentives.
- Leveraging someone else’s backend frees him to focus on investors.
Why Now Is a Massive Buying Opportunity
- Jeremy’s acquiring deals at 30–40% below peak pricing.
- Distressed sellers and rising absorption = market bottom approaching.
- He’s not scared—he’s scaling.
Connect with Jeremyhttps://www.startingpointcapital.com/
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Access the #1 FREE Apartment Investing Course (Apartments 101)
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Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session492/
Think you need 10 years of house flipping before you can go big in real estate? In this episode, Michael Blank sits down with Kent Ritter—Founder of Hudson Investing and host of Ritter on Real Estate—who scaled from solo operator to managing 2,000+ units and leading his own in-house property management firm. He didn’t wait for permission. He didn’t grind for a decade. He built systems, teams, and a killer culture that made scale inevitable.
They unpack how he made the leap from flipping houses to running a real syndication business, and why skipping the “single-family hustle” may be the smartest move you can make. If you’re tired of thinking small, this episode will wake you up.
Key TakeawaysWhy Single-Family Strategies Keep You Stuck* Flipping and landlording create income—but not freedom. * Most "passive" single-family models are just high-paying jobs in disguise. * You don’t need 10 years of grinding to go multifamily—you need a mindset shift.
How to Build a Real Business (Not Just Do More Deals) Learn why Kent’s first plateau happened—and how he broke through it with the right partner. * Discover how he scaled from 7 to 30 team members overnight* by bringing property management in-house. * Building culture and hiring to core values was Kent’s unfair advantage—here’s how to do it right.
The Hidden Challenge of Raising Capital* Why your friends and family won’t take you seriously at first—and what to do instead. * The #1 perception you must change to consistently raise from private investors. * You don’t need to know everyone—you just need to earn trust and prove expertise.
Public-Private Partnerships: The Future of Development?* How Hudson Investing makes new construction deals pencil in 2025 and beyond. * Why cities are partnering with operators—and how that benefits your returns. * The real risk difference between building new vs. buying value-add.
Why the Midwest Is Still Winning* Kent breaks down why Midwest markets like Indianapolis and Fort Wayne are outperforming. * Supply constraints = stronger rent growth and less risk—here’s where to look. * Why Midwest deals may be boring… but boring works.
Connect with Kenthttps://www.kentritter.com
Ritter on Real Estate Podcast
Youtube
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Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session491/
Most people are playing the wrong money game—trading time for income, saving their way to retirement, and hoping it adds up by 65. In this episode, $300M multifamily investor Michael Blank shares the 10 money rules that helped him escape the rat race and build scalable, passive wealth through real estate. You’ll learn why flipping houses, single-family rentals, and even high-paying jobs won’t get you free—and what to focus on instead. If you’re serious about using multifamily to take control of your time and income, these rules will reset how you think about money forever.
Head over to https://thefreedompodcast.com/500 to submit for a chance to win free merch and be highlighted in episode 500!!!
Key TakeawaysMichael’s 10 Rules to Get Your Money Right, plus:
What’s Really Broken About Retirement (and How to Fix It)
- Why the "work till you're 65" model no longer works
- How to reframe freedom so it actually feels fulfilling
- What to focus on instead of sitting on a beach forever
The Math Behind Why You’re Still Stuck
- How traditional saving and investing keeps you locked in the rat race
- What most six-figure earners misunderstand about wealth
- A smarter way to create income that doesn’t depend on your time
How Most Real Estate Strategies Still Trap You
- Why flipping and single-family homes rarely lead to freedom
- The real reason those deals feel like progress—but aren’t
- The asset class that scales income and time
One Number That Changes Everything
- How to figure out the income you need to quit your job
- Why your “rat race number” is more powerful than your net worth
- How lowering it can make freedom come faster than you think
How to Build Wealth Without Using Your Own Money
- The one mindset shift that unlocks serious scale
- How first-time investors raise $500K+—even with no experience
- What kind of partnerships make it possible (and how to find them)
Connect with MichaelFacebook
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ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session490/
If you’re serious about building wealth through real estate, you can’t afford to ignore the tax side. In this episode, CPA and active investor Sean Graham breaks down how cost segregation and bonus depreciation can save you (and your investors) tens or even hundreds of thousands in taxes—without changing your investment strategy. We cover how to use cost seg the right way, why most CPAs are doing it wrong, and what high earners need to know about the latest tax bill that could bring back 100% bonus depreciation. Whether you're a GP looking to raise smarter or an LP trying to boost after-tax returns, this episode is non-negotiable.
Key TakeawaysWhat Cost Segregation Actually Does for You
- Reclassifies components of a property to accelerate depreciation over 5–15 years instead of 27.5 or 39.
- Allows investors to take massive deductions in year one—sometimes more than the cash they put into the deal.
- Creates phantom losses on K-1s that can offset other passive income or gains.
Bonus Depreciation: What It Is, and Why It Matters
- 100% bonus depreciation (introduced in 2017) allows investors to deduct qualifying property in year one.
- It's phased down since 2023 but may return under new legislation.
- Huge benefit for both LPs and GPs—particularly when paired with proper tax strategy.
Using Cost Seg to Raise Capital More Effectively
- Smart GPs use depreciation estimates during the raise to attract savvy investors.
- Many LPs care more about the tax benefits than the projected cash flow.
- For deals over $1M, cost seg should be factored into your underwriting and pitch.
The “Look-Back” Strategy for Missed Depreciation
- Allows owners to retroactively apply cost segregation—even years after purchase.
- No need to amend prior tax returns; benefits can be taken in the current year.
- Especially powerful when strategic timing aligns with real estate professional status.
Avoiding Common CPA Mistakes
- Many CPAs aren’t familiar with real estate—leading to missed deductions and bad advice.
- Make sure your tax pro understands real estate-specific strategies like bonus depreciation, short-term rental loopholes, and REPS.
- Ask the right questions: Do they know how to handle depreciation recapture? Real estate professional status? IRA investing?
How to Work with a Cost Segregation Firm the Right Way
- Involve a cost seg firm early—before closing—so you can plan ahead and market benefits to investors.
- Studies typically cost $5K–$10K, but often result in six-figure tax savings.
- Smaller properties can use a “condensed engineering study” for reduced fees without sacrificing IRS compliance.
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Most people don’t know this—but you can invest your IRA or 401(k) in real estate instead of leaving it trapped in mutual funds. In this episode, I’m joined by Damion Lupo, founder of eQRP, to explain exactly how to unlock your retirement savings and use them to invest in apartments, storage, and more. We walk through the process step-by-step, dispel common myths, and show you how to avoid one of the biggest tax traps most investors don’t even see coming: UBIT. Whether you’re a passive investor or a GP raising capital, this is a must-listen.
Key TakeawaysWhy Most Investors Don’t Know About This
- Financial advisors don’t promote these options because they lose fees when you take control.
- Most investors have old 401(k)s or IRAs they’ve forgotten about—but those funds are eligible for self-direction.
- Online platforms like Schwab and Fidelity won’t show you the option to invest in real estate—you have to know to ask.
How Self-Directed Accounts Actually Work
- Self-directed IRAs and solo 401(k)s give you full control—you can invest in real estate, crypto, gold, and more.
- The right setup gives you checkbook control and removes delays caused by custodians.
- Solo 401(k)s (like EQRPs) offer faster transactions, better flexibility, and fewer limitations than traditional IRAs.
The UBIT Tax Trap—and How to Avoid It
- Using leverage in real estate deals inside a self-directed IRA can trigger UBIT—up to 40% in surprise taxes.
- Solo 401(k)s are exempt from UBIT, even in leveraged deals.
- You can convert from an IRA to a solo 401(k) before the deal sells to avoid the tax completely.
Smart Strategies for Passive and Active Investors
- Passive investors can use these accounts to invest in syndications—earning tax-free or tax-deferred returns.
- Active investors (GPs) can raise more capital by educating others on how to invest through their retirement accounts.
- Damion’s team offers tools like books, webinars, and white-glove onboarding to help GPs guide investors through the process.
Rules, Limits, and Legacy Planning
- You can’t use these accounts to buy personal assets, rehab your own property, or benefit directly from the investment.
- You can borrow up to $50K from your solo 401(k) for any reason and pay yourself back—with interest you choose.
- Setting up retirement accounts for parents or family members can create powerful tax-free legacy wealth.
- Roth solo 401(k)s allow real estate investing with leverage and no taxes on gains—making them the most powerful tool in the tax code.
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In just a few years, Chad Schieler went from zero to over 700 units, ditching his high-paying W2 job to build a real syndication business from scratch. And he did it the hard way - solo, self-funded, and battle-tested.
In this episode, Michael Blank sits down with Chad to unpack the gritty, unfiltered truth behind the rise of Focus Capital. They dive deep into the growing pains of scaling fast - partnership failures, capital raising fears, management misfires, and what it really takes to build a machine that lasts.
If you think you’re ready to go full-time, this episode will either snap you out of it - or show you the way forward.
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Key TakeawaysFrom W2 to 700+ Units: Why Chad Walked Away
- Built a career in credit card processing—but hit a wall with taxes and purpose.
- Real estate started as a tax strategy and turned into a full-blown mission.
- Why chasing a deeper “why” made walking away from comfort worth it.
The Truth About Partnerships
- Chad’s first syndicated deal looked perfect—until it nearly fell apart.
- Why being $4K short led him to take control of the entire business model.
- How too many “chiefs” in asset management created chaos—and the fix.
Raising Capital When It Doesn’t Come Naturally
- Chad self-funded his first four deals—then hit a ceiling.
- The mental shift that helped him want to raise capital.
- How his best capital raiser came straight from his LP base.
Scaling a Real Business (Without Burning Out)
- The struggle of hiring when revenue is lumpy—and what worked for Focus Capital.
- Why Chad hires 12 months ahead of revenue (and how it paid off).
- The non-negotiables that protect his time and family life.
When Bigger is Actually Easier
- Why 100+ unit properties are less stressful than small ones.
- The mistake most investors make with property management on smaller deals.
- How Chad’s early inspection and financing mistakes shaped his future deals.
Connect with ChadVisit Focus Capital
chad@focuscapital.com
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This is one of the most tactical, eye-opening conversations we’ve had on market selection.
Market selection can make or break your deal before you ever sign a contract. And right now, it’s not just about job growth or population trends anymore. In this episode, Michael Blank is joined by Andrew Meyers, Director of Acquisitions at Nighthawk Equity, to reveal what actually matters when choosing a market—and why most investors are looking at the wrong data.
They break down the real drivers of rent growth, how to avoid buying in overheated metros, and what most people overlook that leads to underperforming deals. Plus, Andrew shares where Nighthawk is actively investing right now—and why.
Key TakeawaysWhy Absorption Is the New KPI
- It’s not just about growth—it’s about who’s filling those units.
- Learn why absorption is the single most overlooked factor in market due diligence.
- Discover how overbuilt markets tank B-class rents—and how to spot it before you buy.
The Hidden Danger in “Hot Markets”
- Everyone loved Phoenix, Austin, and Atlanta—until rent drops hit hard.
- Understand why too much supply—even in fast-growing cities—kills performance.
- Learn how to read between the lines of growth headlines to spot real risk.
How to Vet a Submarket Like a Pro
- Why Carroll County in Georgia is outperforming—but other Atlanta submarkets are crashing.
- Learn how zoning moratoriums, new construction trends, and crime rates quietly impact your bottom line.
- The exact reports and relationships you need to dig deeper than “market averages.”
Where Nighthawk Is Buying Right Now
- Atlanta remains the #1 market due to scale, broker relationships, and submarket knowledge.
- Huntsville, AL is rising fast thanks to job growth and lower institutional competition.
- Hear what tertiary markets are on Nighthawk’s radar—and why most operators overlook them.
Questions Every Passive Investor Should Ask
- Who’s actually on the ground executing the business plan—and what relationships do they have?
- How well does the operator know this specific submarket (not just the metro)?
- Are their underwriting assumptions conservative—or fantasy spreadsheets?
- Learn the red flags that reveal when a sponsor is guessing instead of grounded.
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If you’re trying to scale your real estate business and still asking “How do I do this?”, you’re already falling behind. In this episode, Dr. Benjamin Hardy, author of 10X Is Easier Than 2X and The Science of Scaling, explains why success in multifamily hinges on shifting from "how" to "who." Michael and Ben dig into why most investors get stuck on the wrong path, and how committing to a bold vision — even without knowing the entire roadmap — is the real starting point. This episode is a must-listen for six-figure earners stuck in the single-family grind, trying to leap into commercial real estate and financial freedom.
Key Takeaways1. Why Your 10-Year Plan Is Holding You Back
- Most investors set conservative goals based on their current capacity.
- A 10-year retirement plan with single-family homes isn't just slow — it’s likely broken.
- Reframe your goal: what would it take to become financially free in 12 months?
- When the timeframe compresses, the current strategy breaks — and that’s the point.
2. The "Who Not How" Principle for Real Estate Scaling
- Multifamily investing isn’t about doing more — it’s about doing different.
- Instead of figuring out every step, ask “Who already knows how to do this?”
- The right team — mentors, capital partners, deal finders — collapses the learning curve.
- Syndication is the ultimate “who not how” structure: it’s a team sport.
3. The Psychology of Commitment and Belief
- You won’t pursue what you don’t believe is possible.
- Small “micro-commitments” — like booking a strategy call or analyzing your first deal — build belief.
- Commit to the outcome (financial freedom), not the tactic (buying rentals).
- Reverse-engineering from your end goal leads to radically different decisions.
4. Letting Go of the Path That Got You Here
- Your current strategy won’t get you to your next level.
- If you're clinging to rentals, flips, or even a high-paying job — you're on the wrong path.
- Letting go feels like quitting — but it's often the gateway to real progress.
- Ask: “What’s the opportunity cost of staying stuck?”
5. Dr. Hardy’s Framework from The Science of Scaling
- Identify your "floor" — the level where you're currently stuck — and why it's limiting.
- The most successful entrepreneurs redesign their systems, teams, and mindsets to scale.
- Scaling isn’t just a process — it’s a mindset of focusing on fewer things, done better.
6. Multifamily as the Ideal Vehicle for Scaling
- Single-family strategies are too slow, too small, and too dependent on your time.
- Multifamily offers higher leverage, scalable income, and team-based execution.
- The joint venture nature of syndication makes scaling practical, even if you’re starting out.
- The ability to raise money or partner with operators creates fast pathways to GP status.
Connect with Dr. Benjamin HardyGet your free copy of the Science of Scaling audiobook
https://scaling.com/
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Small Bay Industrial (a.k.a. Flex Space) wasn’t on your radar—and for good reason.
But what if the most overlooked asset class in commercial real estate turned out to be one of the most profitable? In this episode, Cody Payne, SVP at Colliers, breaks down why Small Bay Flex Industrial is quietly exploding—and why more active and passive investors are taking notice. Cody shares how he transitioned from leasing to owning, how syndication plays a role in the space, and why this niche might outperform retail and office over the next decade. Whether you’re looking to diversify your portfolio or find a less management-intensive asset, this is an episode you don’t want to miss.
Key TakeawaysWhy Flex Industrial Is Heating Up* The asset class has evolved: from basic metal garages to glass-fronted multi-use spaces. * Demand is surging as small businesses, gyms, e-commerce, and retail users flood in. * Triple-net leases and low tenant improvement costs make this a capital-efficient play.
How to Add Real Value with Small Bay Assets* Simple cosmetic upgrades (like storefront glass) can attract higher-paying tenants. * Reconfiguring larger units into smaller ones can boost PSF rent. * Strategic side yards and outdoor storage add ancillary income.
Investor Returns: What to Expect* Typical stabilized deals offer 8–10% cash-on-cash returns with low capex. * Value-add plays or development deals can push IRRs significantly higher. * Cap rates range from 6–8%, depending on market and quality.
Management Made Simple* Triple-net leases reduce headaches—tenants handle their own maintenance. * Very few after-hours calls; most businesses operate during daytime hours. * Easy to find third-party managers who understand this asset class.
Syndication in Small Bay: A New Frontier* Cody’s early deals involved rolling his broker fee into equity—low-risk entry point. * Syndication works well, especially for stabilized assets or light value-add. * Investors like the stability, tenant diversity, and ease of management.
Navigating the Market: Deal Flow and Financing* Good deal flow in most metros if your buy box is realistic (e.g., 7–8% cap). * Financing is accessible: 25-year terms, 65% LTV, and ~6.25% interest. * Banks used to avoid this asset class—now they’re chasing it.
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What does it take to scale from a 38-unit syndication to 33,000 units across six states—and still never lose investor capital? Jeff Gleiberman of MG Properties breaks it down. In this episode, Jeff shares the core principles that helped his family-run firm grow into one of the top 50 apartment owners in the U.S. You'll hear how they’ve weathered multiple market cycles, why they’re buying newer assets right now, and how disciplined underwriting, fixed-rate debt, and vertical integration have become their unfair advantages. Whether you're raising capital, comparing asset classes, or trying to read the market—this episode is required listening.
Key TakeawaysFrom Family Syndication to Institutional Scale* Started with a single 38-unit deal and scaled to 33,000 units over 30+ years. * Built trust and momentum through word of mouth and disciplined execution. * Added institutional capital partners while staying grounded in syndication fundamentals. * Grew from a home office to over 1,000 employees with fully integrated operations.
How MG Navigates Market Cycles* Survived and thrived through the S&L crisis, dot-com bust, GFC, COVID, and today's rate shock. * Adapted strategy for each cycle—moving from value-add to core-plus when needed. * Buys below replacement cost today to minimize downside and maximize long-term upside. * Maintains focus on fixed-rate, long-term debt and low leverage to protect investor capital.
Why Vertical Integration is a Competitive Advantage* In-house property management, asset management, and construction management from day one. * Enables real-time decision-making, tighter expense control, and stronger performance in down markets. * Allowed the firm to pivot quickly during COVID and deliver consistent returns.
How to Attract Serious Capital (Without Chasing High IRRs)* Always invests 10–20% of their own capital into each deal—creating strong alignment. * Focuses on risk-adjusted returns, not marketing inflated projections. * Educates investors on cycles, deal structure, and realistic expectations to build long-term trust.
Current Strategy: Core-Plus Over Value-Add* Acquiring newer, well-located properties at 30–40% discounts to replacement cost. * Cash flow is lower today—but risk is also lower, and long-term upside is strong. * Value-add deals don’t pencil right now due to rent compression and renovation risk—but they will again.
The Discipline Behind $1.8B in Acquisitions (In a Down Market)* Maintains a consistent buy box and underwriting discipline—despite competition and volatility. * Relies on lender relationships, low-cost insurance, and scale advantages to stay competitive. * Sticks to one asset class—multifamily—and executes at a high level, deal after deal.
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If you think you need experience, deals, or wealthy connections to raise capital… think again. In this episode, Michael Blank walks through exactly how first-time investors are raising $500K to $1M in 60 days—even without a track record. You’ll learn how to shift your mindset, start conversations without being salesy, and build unstoppable momentum using the relationships you already have. This is the roadmap for raising money as a beginner.
Key TakeawaysWhy You Don’t Need Experience to Raise Capital
- Stock market investors are actively looking for alternatives—you just don’t know it yet.
- You’re providing value by giving them access to real estate they can’t buy on their own.
- It’s not about your experience—it’s about your ability to build trust and communicate.
How to Find People With Money (Hint: You Already Know Them)
- Start with your existing social circles—friends, coworkers, clubs, sports, and church.
- Use referrals to expand your network without ever running out of leads.
- Tap your old contacts with a simple, authentic re-engagement email.
What to Say (and NOT Say) to Potential Investors
- Don’t “pitch” people—just have intentional conversations about investing.
- Use curiosity to guide the discussion naturally toward real estate.
- Frame yourself as someone offering value, not asking for a favor.
Why One-on-One Works Better Than Social Media (at First)
- Most beginners fail online because they don’t know what their investor wants yet.
- You’ll build confidence, language, and momentum faster through real conversations.
- $1M+ raises are happening every day without a single post on social.
What to Do If You’re Not a Natural Capital Raiser
- Deal finders and capital raisers need each other—build partnerships to fill the gaps.
- Learn the fundamentals, then specialize based on your strengths.
- Being in the right community makes these partnerships effortless.
The Simple System That Helps Beginners Raise $500K–$1M Fast
- Our students go from zero experience to full commitments in under 60 days.
- The key is shifting your mindset and mastering a few proven scripts.
- You don’t need everyone to say yes—you just need to start.
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What should you really ask before wiring $100K into a multifamily deal? In this special episode, Michael sits down with Nighthawk’s Garrett Lynch and Drew Kniffin to run through 50 of the most important questions every passive investor should be asking—and every active investor should know how to answer.
From deal structure and cash flow mechanics to team accountability, tax strategy, and risk mitigation, this is your behind-the-scenes guide to how Nighthawk operates—and how to evaluate any syndicator with clarity and confidence. Whether you’re an LP looking to invest smarter or an aspiring operator trying to earn trust, this episode is required listening.
Key Takeaways50 Questions Every Passive Investor Should Ask (And Every Active Investor Must Answer), including: Nighthawk’s Track Record and Operating Philosophy* How Nighthawk got started, how many deals they’ve done, and what makes their model different * What happens when a deal doesn’t go to plan—and how the team responds * Who’s on the core team and how key decisions are made (especially in tough markets) * Why vertical integration and boots-on-the-ground operations give them an edge
Understanding Returns, Distributions & Deal Structure* What kind of returns to expect—and how preferred vs. total returns actually work * When investors get paid, what happens during a refinance, and how long deals are held * What happens if the property underperforms or market conditions shift * Why Nighthawk doesn’t do capital calls—and how they plan for uncertainty
Syndications vs. Other Investment Models* The difference between syndications, REITs, and funds * What LPs actually own, how deals are structured legally, and what kind of control (or not) they have * How profit splits and operator compensation align with investor outcomes * Minimum investment amounts and what the onboarding process looks like
The Passive Investing Mindset* The key mindset shift every new LP needs to make * Multifamily vs. flips, STRs, and self-storage—what makes multifamily the superior play * How to think about diversification across deals and sponsors * What to do if you’re nervous—or your spouse isn’t on board yet
Taxes, Depreciation & IRAs* How multifamily syndications deliver major tax benefits (even on paper) * What bonus depreciation is and how it offsets income * When to expect your K-1 and how IRA investing works (including UBIT considerations) * What happens tax-wise at refinance or sale—and how to defer gains via 1031s
How to Vet Deals and Sponsors Like a Pro* What to look for in underwriting: cap rates, expense ratios, rent growth assumptions * The importance of fixed-rate debt, cash reserves, and risk-adjusted returns * How to ask the right questions—even if you’re not an expert * Why the best investors don’t “return shop”—they evaluate the whole picture
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Eric Nelson thought buying one rental a year would lead to financial freedom. But after years of grinding, he realized he was just building another job. In this episode, Eric breaks down how he shifted from single-family rentals to a 1,000+ unit multifamily portfolio—and why mindset, mentorship, and the right partnerships made all the difference.
We dig into the painful lessons, the strategic pivots, and the exact steps that helped Eric quit his W-2, move his family to Spain, and build a business that supports his life. If you’re trying to scale—or stuck doing it all yourself—this is the episode you’ve been waiting for.
Key TakeawaysWhy “One Rental a Year” Doesn’t Work* Eric’s early plan: 10 houses in 10 years = early retirement * What actually happened: no scale, no freedom, no time * Why single-family rentals didn’t deliver the cash flow he expected
The Case for Multifamily Over Rentals How one vacancy kills cash flow in SFR—but barely moves the needle in MF * Why multifamily is less emotional, more predictable, and built for scale * The moment Eric realized apartments were actually less risky*
How Mentorship Accelerated His Success* What changed when Eric hired a coach—and why he says it was essential * Why every successful syndicator he knows did the same * The critical role of KP partners and advisory teams in getting your first deal done
Raising Capital as a Service, Not a Favor* How Eric overcame his fear of asking friends and family to invest * Why capital raising is about helping others—not begging for money * What he tells high-income earners unsure where to place their capital
Why Right Now Is a Great Time to Get In* Why fewer buyers and better pricing make today a rare opportunity * How Eric is buying deals in today’s market—and what’s changed since 2021 * What he tells LPs who are frozen by fear or waiting on the sidelines
From Hamster Wheel to Freedom in Spain* How Eric went from overworked engineer to living abroad with his family * What it actually looks like to build a business around your life * Why he’s focused on sustainable, strategic growth—not hyper-scaling
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In this episode, Michael Blank is joined by seasoned investor Paul Moore, founder of Wellings Capital, to unpack the journey from flipping houses and chasing every real estate strategy… to raising over $200 million in capital and building a fund-based business that finally delivered real wealth. Paul shares how a single moment with a mentor forced him to stop winging it and build a true capital-raising system.
They dive deep into how capital raisers can grow with or without a deal, the myths about passive income, and why commercial real estate is fundamentally different (and more powerful) than residential. This episode is a masterclass in focus, mindset shifts, and breaking through plateaus by specializing.
Key Takeaways:
- Passive Income Is a Lie—Until You Do This: Both Paul and Michael learned the hard way that flipping houses isn’t passive—and the real path to financial freedom is cash-flowing commercial assets.
- Focus Beats Hustle: Paul was stuck chasing inconsistent deals until he narrowed in on raising capital and built a repeatable system to attract investors.
- Raising Capital Is a Skill, Not a Gift: Whether you do it 1-on-1 or through content marketing, anyone can learn how to raise millions—if they follow a proven playbook.
- Why the "Old Boys Club" Ignores You: Breaking into commercial real estate requires more than desire—you need credibility, partners, and a real strategy to be taken seriously.
- Commercial Real Estate Is Based on Math, Not Hype: Unlike residential, you can force appreciation through net income. That means you have control over value.
- The Fund Manager Model: Paul explains how capital raisers can scale faster—and stay compliant—by launching their own funds and partnering with proven operators.
Connect with Paul Moore:
- Website: wellingscapital.com
- Resources: Free eBooks on multifamily, self-storage, and mobile home park investing → wellingscapital.com/resources
- Books: Author of The Perfect Investment, Storing Up Profits, and Warren Buffett’s Rules for Real Estate Investors
- Social Media: Find Paul on LinkedIn, YouTube, or search for Paul Moore Wellings Capital
- Philanthropy: Support his anti-human trafficking work at aimfree.org
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Forget what you’ve been told about retirement. In this episode, Michael Blank breaks down why chasing the dream of sitting on a beach at 65 is not just outdated—it’s dangerous. He unpacks the flawed math behind 401(k)s, FIRE, and single-family rentals, and lays out a smarter, faster path to freedom through multifamily syndications. If you're a high-income earner chasing control over your time, this episode will reframe how you think about “retirement” and show you how to buy your time back—on your terms.
Key TakeawaysRetirement Is Not the Goal—Freedom Is
- Traditional retirement means doing nothing, and that’s not fulfilling for most people.
- After a short break, high performers crave impact, purpose, and productivity.
- Financial freedom gives you options—to work, to rest, to choose how you live.
The Math of Retirement Doesn’t Work
- The 4% Rule requires you to save $3M+ for $10K/month in passive income—before inflation.
- With inflation, that number balloons to $7.3M to maintain your current lifestyle.
- Very few people are saving $2K–$15K/month for 10–30 years consistently.
Why the FIRE Movement Falls Short
- FIRE (Financial Independence, Retire Early) demands extreme frugality—up to 70% savings rates.
- It's built on sacrifice and still relies on fragile stock market assumptions.
- Once “retired,” most FIRE followers still live lean—without true freedom or fulfillment.
Why Rentals Are Better—But Still Not Enough
- Even buying one rental per year doesn’t get you to $10K/month cash flow fast.
- 50 rentals = $10K/month at $200/month per property—a huge operational burden.
- BRRRR and flips can help, but they’re still slow, time-intensive, and hard to scale.
Multifamily Syndications: The Fast Track to Freedom
- Acquisition fees from one deal can replace your income and give you a 12-month runway.
- Syndications have multiple profit centers: fees, cash flow, equity, and backend profits.
- With the right coaching, you can quit your job within 1–2 years—not 30.
Break the “DIY” Trap: Why Coaching Matters
- Most people try to figure it out alone and stay stuck for years.
- Multifamily syndications are a team sport—scale comes from partnerships, not hustle.
- Without a roadmap, you’ll hit a ceiling fast or never start at all.
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Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session478/
How do you scale to 350 multifamily units in a high-regulation, tenant-friendly market like Massachusetts—starting with a single house hack and a HELOC?
In this episode, Andrew Freed breaks down how he did exactly that. He shares how he transitioned from a high-paying W-2 to full-time real estate investor, why he leaned into a market most investors avoid, and how strategic partnerships and capital raising unlocked serious growth. You’ll learn what actually worked, what didn’t, and how Andrew built a business that now self-manages 250+ units—all without starting rich or flashy.
If you're serious about scaling and want a real-world blueprint from someone who's done it in a tough market, this one's worth your time.
Key TakeawaysTurning a W-2 Into a Real Estate Exit Plan
- Why Andrew stayed at his W-2 way longer than he needed to
- The mastermind moment that finally pushed him to quit
- How he 5X’d his income after going all-in
How to Go from One House Hack to Hundreds of Units
- The simple playbook he used to scale with zero previous experience
- Why he ditched the “one duplex a year” plan and went big
- How small, boring properties (2–30 units) became his superpower
Raising Capital Without Feeling Salesy or Sleazy
- How Andrew raised over $20M—even as an introvert
- The mindset shift that made all the difference
- What NOT to do when asking people to invest
Investing Where No One Else Wants To
- Why he’s buying in Massachusetts—and crushing it
- How Section 8 became a secret weapon
- His strategy for thriving in “landlord-unfriendly” markets
Partnering the Right Way (So You Don’t Get Burned)
- How to structure roles, control the money, and build trust
- Why partnerships skyrocketed his growth—and what to watch out for
- His “video game” approach to business (seriously)
Connect with Andrewhttps://freedommanagement.net/
Connect with MichaelFacebook
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ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session477/
In this episode of The Financial Freedom with Real Estate Investing podcast, Marcin Drozdz breaks down the exact playbook he used to raise over $100M for multifamily deals—even in challenging market conditions. He shares why multifamily remains the smartest path to financial freedom, how to raise capital without prior experience, and what new investors must focus on to close their first (or next) deal faster. If you want to scale with other people’s money and build lasting wealth, this episode gives you the blueprint.
Key TakeawaysHow Marcin Built a $100M+ Capital Raising Machine* Focused on relationships, trust, and long-term partnerships—not flashy sales pitches. * Built credibility without relying on a massive personal portfolio upfront. * Scaled by consistently delivering value to investors first.
Why Multifamily Beats Other Real Estate Strategies* Offers superior scalability compared to flips, single-family rentals, and STRs. * Combines cash flow, appreciation, and tax advantages into one asset. * Remains resilient through recessions and high-interest rate cycles.
How to Raise Capital Without a Track Record* You don’t need your own cash—you need the right frameworks for raising it. * Start building soft commitments from investors before your first deal. * How to position yourself confidently even as a newer operator.
Avoiding the Biggest Mistakes New Investors Make* Why waiting for the “perfect deal” or “perfect timing” is a recipe for failure. * The danger of trying to figure it out alone without mentorship or a proven system. * How successful investors create momentum by taking imperfect action.
Marcin’s Advice for Scaling a Real Estate Portfolio* Focus on building a strong personal brand and investor network early. * Surround yourself with experienced operators and communities that accelerate your learning. * Play the long game: Reputation and relationships compound faster than anything else.
Connect with MarcinDownload Marcin's "Unlimited Investor Leads" Book
Website
Connect with MichaelFacebook
YouTube
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ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session476/
In this powerful episode, Michael Blank sits down with Ben Reinberg, founder of Alliance CGC, to break down how he built a $500M+ commercial real estate portfolio—starting with a 95,000 sq. ft. industrial building at just 23 years old. Ben shares how he raised capital with no track record, the key mindset shifts that fueled his growth, and why personal development is the hidden engine behind building wealth.
You’ll also learn why commercial real estate—not single-family rentals—is the path most millionaires quietly use to generate generational wealth, and how to shift your focus (and comfort zone) to play a much bigger game.
Key Takeaways
- Study Wealth, Not Just Real Estate: Ben skipped the rental game by studying how wealthy people actually build wealth—with hard assets like commercial real estate.
- You Don’t Need to Know Everything—Just Build the Right Team: From asset management to SEC compliance, syndication is a team sport. You can go bigger by not going solo.
- Raising Capital Is Not About Sales—It’s About Value & Relationships: Ben started with no fear, built credibility through transparency and strong returns, and gave away the lion’s share of the deal early on to build trust.
- Personal Growth = Business Growth: Meditation, mentors, and emotional intelligence aren't optional—they're what allow you to lead, communicate better, and scale sustainably.
- Hard Assets Win Long-Term: Whether it's medical office, multifamily, or industrial, Ben believes investing in tangible assets is the key to recession-resistance and generational wealth.
Connect with Ben Reinberg
- Website: AllianceCGC.com – Learn about his company and accredited investment opportunities
- Personal Site: BenReinberg.com – Buy his book "Hard Assets for Hard Times", explore wealth-building courses, and watch his TV show Obsessed
- Instagram, YouTube, LinkedIn: Just search Ben Reinberg on your favorite platform
- Book: Hard Assets for Hard Times – A visual, actionable blueprint to start building your own real estate empire
Connect with MichaelFacebook
YouTube
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ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session475/
Rob Beardsley didn’t flip houses. He didn’t save up for years. Instead, he went straight from college to commercial real estate—and scaled to $750M in acquisitions in just seven years. In this episode, Rob breaks down how he used partnerships, mindset, and relentless focus to overcome limited capital, lack of experience, and a steep learning curve. You'll learn what it really takes to scale a multifamily business from zero, how to raise capital without a track record, and why operating in today’s market is the ultimate advantage. If you’re serious about building a business—not just doing deals—this is a can’t-miss episode.
Key TakeawaysFrom College Kid to $750M Operator
- Why Rob skipped flipping and went straight to syndications
- How growing up in a struggling real estate household shaped his long-term mindset
- What triggered his obsession with scaling—before he ever bought a deal
How to Raise Capital Without a Track Record
- Why being naïve can actually help early investors take action
- The moment Rob realized capital raising is sales and marketing
- How he overcame his fear of “selling” and built a system for trust and credibility
The Power of Partnerships in Multifamily
- Why going it alone almost never works—and what to do instead
- How Rob structured his first deals with more experienced partners
- The myth of “less equity” when you partner—and how the pie gets bigger
What Most Investors Get Wrong About Scaling
- The difference between doing deals and building a real business
- How Rob built Lone Star Capital from a two-man shop to a vertically integrated firm
- The right first hire if you want to get out of spreadsheets and grow
Lessons from $750M in Deals (and What Rob Would Do Differently)
- The #1 thing he wishes he knew before his first deal
- Why he avoids C-class properties despite their “better returns” on paper
- How less leverage and better locations create more stability—and scale
What It Takes to Succeed in Today’s Market
- Why flat or down markets are the ultimate test of operational excellence
- How Rob stayed active—even without new acquisitions—by doubling down on systems and team
- The creative strategies he uses to stay top-of-mind with investors between deals
Connect with Robhttps://lscre.com/
Connect with MichaelFacebook
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ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session474/
Think you need years of experience or loads of cash to invest in multifamily? Think again. In this solo episode, Michael Blank busts the two biggest myths that keep people from getting started in apartment syndications: lack of experience and lack of capital. He shares real-life strategies for building a winning team, raising money as a beginner, and scaling fast—even if you're starting from scratch.
Key Takeaways:
- Experience ≠ Access: Multifamily brokers care more about your team’s track record than yours.
- Build the Right Team: Partner with experienced operators, lenders, and property managers to gain instant credibility.
- Capital Raising Is a Learnable Skill: You don’t need your own money—just the ability to educate and connect with potential investors.
- Focus on “Who,” Not “How”: Don’t try to do everything. Find partners who fill your gaps.
- Anyone Can Start: With the right mindset and system, beginners have raised millions—even on their first deal
Connect with MichaelFacebook
YouTube
TikTok
ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session473/
If you think property management is just about collecting rent and fixing toilets, you're leaving serious money on the table.
In this episode, I’m sitting down with Robert Parmar to talk about how the best operators are using systems and tech to run their properties more profitably — and why poor management is the fastest way to kill your financial freedom.
Robert’s pulling back the curtain on the biggest mistakes property managers make (and what it’s really costing you), the secret sauce that separates good from great, and the practical systems you can use to finally step out of the day-to-day — without sacrificing profits.
Whether you're managing yourself or outsourcing it, if you want more cash flow, less stress, and more freedom, you can't afford to miss this one.
Key TakeawaysLeveraging Technology for Better Remote Management
- Why top property managers are heavily investing in tech tools and automation.
- How the right systems can reduce vacancy, boost cash flow, and create a "set-it-and-forget-it" ownership experience.
- Examples of technology Robert uses to deliver better tenant experiences and operational efficiencies.
Biggest Mistakes Property Managers Make
- The "set it and forget it" myth: why poor communication is the fastest way to lose owners and tenants.
- Overlooking preventative maintenance and its long-term cost.
- The importance of hiring based on cultural fit—not just experience.
What Makes a Great Property Manager Stand Out
- Proactive communication and transparent reporting as a key differentiator.
- Why having a true investor mindset (not just a service mindset) sets the best managers apart.
- The power of KPIs: which numbers your property manager must track to ensure you're hitting your investment targets.
Property Management Best Practices that Crush
- Structured onboarding processes for new properties to set expectations early.
- Regular financial and operational reviews (not just quarterly).
- Strategic tenant retention tactics that reduce turnover and boost lifetime value.
Connect with Robertrparmar@smfield.com
Connect with MichaelFacebook
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ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session471/
In this solo episode, Michael Blank shares the raw truth behind why he stopped flipping houses and made the game-changing leap into multifamily investing. He breaks down the exact moment that shift happened, how it transformed his life and finances, and why multifamily syndication is hands-down the fastest, safest, and most scalable path to financial freedom with real estate.
Key Takeaways:
- Flipping Wasn’t Freedom: Even successful flipping felt like another job with no scalability or passive income.
- Multifamily = Mailbox Money: One 12-unit deal opened Michael’s eyes to the power of passive income.
- Syndications Create Wealth Fast: With acquisition fees and cash flow, you can quit your job after just 1–2 deals.
- Multifamily Is Low Risk: Stronger tenant diversification and long-term demand make it more recession-proof than single family.
- You Don’t Need Experience or Cash: You can start by building a team and learning to raise capital.
Connect with MichaelFacebook
YouTube
TikTok
ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session470/
In this episode of the Financial Freedom with Real Estate Investing podcast, I sit down with two of our Deal Maker Mentoring students — Ryan Kindred and Russell Cannon — who broke free from the grind and did something most people only talk about: they bought a 240-unit self-storage facility and raised $1.9 million to do it.
Ryan and Russ didn’t grow up in real estate. They weren’t born entrepreneurs. But they took action, surrounded themselves with the right people, and now they’re building a portfolio that’s changing their lives forever.
Whether you're a high-income earner ready to pivot, or a burned-out investor trying to scale, this episode is packed with real talk, tactical steps, and one heck of a comeback story.
Key TakeawaysFrom the Corporate Grind to Full-Time Investors
- Ryan was managing $200M in power systems. Russ ran $100M+ construction projects. Both felt stuck.
- They knew their time wasn’t really theirs, and they were done trading hours for dollars.
- This is how they made the leap — while still working full-time — and never looked back.
Crushing Limiting Beliefs That Keep Most People on the Sidelines
- “I don’t have the money.” “I’ve never done this before.” “Who’s gonna invest with me?” Sound familiar?
- Ryan & Russ had every reason to stay in their comfort zone — but they didn’t.
- You’ll hear exactly what shifted their mindset and how you can do the same.
Behind the Scenes of Their $1.9M Raise on a 240-Unit Deal
- How they found this off-market self-storage opportunity
- Step-by-step of how they raised $1.9M in equity — without a big investor list
- The six-figure acquisition fee they earned and how they set themselves up for long-term cash flow
Why Mentorship and Community Made All the Difference
- The moment they realized they couldn’t do it alone
- How they leveraged our team, the community, and deal support to get across the finish line
- What actually moves the needle when you’re doing your first commercial deal
What’s Next: Scaling Up & Building a Real Estate Business
- Ryan and Russ aren’t stopping at one deal — they’re already teeing up the next
- Their 3-5 year vision: more deals, more cash flow, and total lifestyle freedom
- How they’re using this deal as a launchpad to financial freedom
Connect with Ryan and RussellLinkedIn - Ryan Kindred
LinkedIn - Russell Cannon
Sable Capital Website
Connect with MichaelFacebook
YouTube
TikTok
ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session472/
In this episode, Michael Blank and Garrett Lynch talk with Axel Ragnarsson, who scaled from self-funding small multifamily deals to building a 500+ unit portfolio and raising over $15 million in capital. Axel shares the turning point that forced him to move beyond his DIY approach, how he overcame mental blocks around partnering and raising money, and what it really takes to grow in today’s market. Whether you're early in your investing journey or looking to level up, Axel’s story offers powerful insights.
Key Takeaways:
- Self-Funding Has Limits: Axel built up to 70 units on his own, but liquidity challenges and stress forced him to rethink his approach and start partnering.
- Mindset is Everything: His biggest obstacle wasn’t skill—it was fear of raising capital and losing control. Overcoming that changed everything.
- Adapt or Miss Out: In today’s shifting market, underwriting must adjust constantly. Flat rents and rising interest rates mean conservative assumptions are critical.
- Scale with Purpose: You don’t have to grow endlessly. Axel is evaluating whether to stay put or expand into new markets—and why lifestyle alignment matters.
Connect with MichaelFacebook
YouTube
TikTok
ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session469/
In this special episode of the Financial Freedom with Real Estate Investing podcast, Michael Blank sits down with his mentors—Barry Flavin, Brad Tacia, Jonathan Nichols, Paula Nichols, and Philippe Schulligen—for a powerhouse discussion. These incredible mentors, who’ve helped countless students achieve their multifamily investing goals, share their wisdom, personal journeys, and actionable tips for getting started or scaling up in real estate. Whether you’re working on your first deal or growing your portfolio, this episode is packed with inspiration and strategies to guide you to financial freedom.
Key Takeaways:
- Current Market Outlook: Despite uncertain times, the mentors agree on being bullish about the multifamily market's long-term prospects. They emphasize ongoing housing demand and discuss factors like rent increases and occupancy rates that strengthen the sector.
- The Role of Brokers: Building strong relationships with brokers is crucial for consistent deal flow. The mentors share strategies for establishing these connections, highlighting the advantages of frequent communication and personal meetings.
- Student Success Stories: Real-world examples illustrate how students are finding and closing deals—often through creative financing solutions like seller financing. A common theme is the powerful combination of consistency and leveraging mentorship to make informed decisions.
- Capital Raising Strategies: Distinguishing between deal finders and capital raisers, the panel discusses tailoring approaches to suit different personalities and skill sets. They also underline the importance of using personal networks, social media, and educational content to attract investors.
- The Value of Mentorship: The mentors highlight the dual benefits of mentorship in keeping students on track and opening pathways for scaling more quickly. They stress the significance of being "all in" and actively engaging in the process to maximize the benefits of mentorship.
This episode is packed with actionable insights and real-life examples from the world of multifamily syndication. If you are looking to delve deeper into real estate investing and have access to expert guidance, consider exploring mentorship options on theMichaelBlanc.com/mentor.
Connect with Jonathan and Paula NicholsJonathan’s Mentor Bio
Paula’s Mentor Bio
Apogee Capital
Paula Instagram
Jonathan Instagram
Connect with Philippe SchulligenMentor Bio
Boost Capital Group
Philippe LinkedIn
Connect with MichaelFacebook
YouTube
TikTok
ResourcesAccess the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session468/
In this episode, Michael Blank delves into the art of raising capital for real estate, highlighting the importance of using other people's money to build a real estate empire. He discusses the common mistakes people make when raising capital and shares insights on overcoming these challenges.
Key Takeaways:
- Understanding Limiting Beliefs:
- Many aspiring real estate investors struggle with the idea of raising capital due to limiting beliefs, such as "I can't do it," "I don't know anyone with money," and fear of using sales tactics.
- Avoiding Common Mistakes:
- Going online for raising money without prior experience is a common mistake.
- Assuming the money will follow once you have a deal is misleading.
- Start raising capital before securing a deal by using a sample deal package.
- The Importance of Networking and Education:
- Real estate investors should educate themselves and others about the benefits of real estate investing.
- Networking and leaving a positive impression are crucial in building relationships with potential investors.
- Referrals and Expanding Your Network:
- Always ask for referrals to expand your network and potential investor base.
- Stay in touch with potential investors to nurture relationships.
- Leveraging IRA Money:
- Many people have significant funds in IRAs or 401(k)s. Educate potential investors on how they can invest their IRA money in real estate.
- Scaling by Raising Money Online:
- Once you've raised money one-on-one successfully, transition to online platforms to scale up.
- Building a strong online presence requires more than just a website; it involves creating valuable content and having a clear target audience.
- The Who, Not How Mentality:
- Emphasize finding partners who can help fill gaps, such as those who can raise funds while you focus on finding deals.
Connect with MichaelFacebook
YouTube
TikTok
ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session467/
In this episode of The Financial Freedom with Real Estate Investing podcast, Michael Blank sits down with Scott Todd, a Deal Maker who successfully transitioned into multifamily real estate. Scott shares how he closed his first deal, the key lessons he learned along the way, and how he overcame the fear and obstacles that stop many investors from taking action. If you’re on the fence about multifamily investing, this episode is packed with practical insights that will give you the confidence to move forward.
Key TakeawaysKey Takeaways How Scott Got Started in Real Estate * Transitioned from his previous career into real estate. * Discovered multifamily investing as the fastest way to financial freedom. * Started with no prior experience but took action to learn the process. * Lessons from His First Multifamily Deal * The biggest challenges he faced and how he overcame them. * How he structured his deal and raised capital as a first-time investor. * What he would do differently if starting over today. * Overcoming Fear and Taking Action * The mindset shift that helped him push past self-doubt. * How he took the leap despite not having a perfect plan. * Why waiting for the perfect time will only slow you down. * Finding the Right Support System * The importance of mentors and networking in real estate. * How joining a like-minded community accelerated his success. * Why trying to do everything alone is a costly mistake. * Scaling Beyond the First Deal* * How closing his first deal changed everything. * The next steps he’s taking to grow his portfolio. * Advice for new investors looking to get their first deal done.
Connect with ScottLinkedIn
Connect with MichaelFacebook
YouTube
TikTok
ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session466/
Welcome to another episode of Financial Freedom with Real Estate Investing! In this special episode, we bring you a deep dive into Nighthawk Equity with all the partners in the house – Garrett Lynch, Drew Kniffin, and our very own Michael Blank. It's been a while since the last team update, which was back in episode 414, where we discussed a deal that we didn't do.
This time, we're pulling back the curtain to share where Nighthawk started, the lessons learned, and what lies ahead in their journey to scale and face market challenges.
On this episode, Michael, Drew, and Garrett discuss everything from the origins of Nighthawk, the trials of joint ventures, the importance of asset management, to mastering the art of raising capital. Learn about their transition to focusing deeper into specific geographies and how they're adapting to today's market conditions.
Key Takeaways:
- A Glimpse into Nighthawk's Origin Story
- How Garrett joined through the Deal Desk with a challenging El Paso deal
- The evolution from joint ventures to focus and scale
- The Importance of Focus and Geography
- The shift from multiple markets to being deeply rooted in Atlanta
- Economies of scale and operational efficiency as major benefits
- Mastering Asset Management
- Why executing the business plan is crucial for financial success
- Enhancing procedures and systems for operational excellence
- Challenges and Innovations in Raising Capital
- Introduction of fund managers with Fund of Funds program
- Experimentation with paid Facebook advertising for scaling capital raise
- The Secret Sauce Behind Partnership Longevity
- Open communication and radical candor as key to sustained collaboration
- Defining roles and respecting decision-making processes
- Market Insights and Future Outlook
- Navigating current economic conditions
- Strategies to seize opportunities in the coming years
Join the Nighthawk team as they reflect on their past, share valuable insights into their operations, and look forward with anticipation to what’s next in real estate investing. If you're ready to take the next steps toward financial freedom, whether actively or passively, they're here to guide you.
Visit thefreedompodcast.com to discover resources customized for your journey. Whether you're looking to find deals as an operator or become a passive investor, this is your starting point.
Catch the energy of this episode, and as always, happy investing!
For more information on achieving financial freedom through real estate investing, visit thefreedompodcast.com.
Let's get you one step closer to financial independence!
Connect with MichaelFacebook
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ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session465/
Are you intrigued by the current state of the real estate market? Curious about how drastic changes over the past two years have impacted multifamily investing?
Join hosts Michael Blank and Garrett Lynch as they dissect the whirlwind shifts in the real estate market, akin to a 7 to 10 year cycle compressed into just two years. Today’s episode tackles the burning question: Is now the right time to dive into multifamily investing or should you hold off for a more stable market?
Michael and Garrett kick off the conversation by discussing the importance of adapting investment strategies in line with market cycles, underscoring that timing the market shouldn’t be the primary focus. They delve into how conservative underwriting can shield investors from making costly mistakes, especially in volatile conditions.
Listen in as the hosts explore what has changed dramatically over the past two years, including interest rates, loan terms, and the risk-adjusted returns that investors should be aware of. They also draw parallels to the 2008 financial crisis, offering insights on how the current environment might mirror opportunities seen in the past.
Key Takeaways
- Market Timing vs. Strategy Development
- The pitfalls of attempting to time the market
- Importance of a strategic approach based on market cycles
- Shifts in Risk-Adjusted Returns
- Historic low interest rates two years ago versus the current environment
- How increased interest rates and lowered leverage affect pricing
- Adapting Strategies as Operators
- The need for flexible underwriting and deal management
- Selling and holding decisions based on market conditions
- Multifamily Market Dynamics
- Impact of rapid rate hikes and leverage restrictions
- The forecast of cap rates and their implications for investors
- Strategies for Success
- Importance of conservative assumptions in current deals
- Leveraging past market experiences to predict future opportunities
In this episode, Michael and Garrett provide valuable insights for both passive investors and those looking to actively engage in multifamily real estate. They encourage listeners to assess their investment strategies, considering both the current environment and future market potential.
For more resources and to engage with the hosts on this topic, visit: thefreedompodcast.com. Tune in to explore whether now is the opportune moment for your next real estate investment!
Connect with MichaelFacebook
YouTube
TikTok
ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session464/
Are you eager to achieve financial freedom through real estate or other business opportunities? Curious about the different pathways to replace your income with passive investments?
In this episode of Podcasts, host Michael Blank shares his extensive experience with a variety of strategies to achieve financial independence, including real estate, franchises, digital marketing, and online trading. Having experimented with several avenues himself, Michael offers invaluable insights into what works, what doesn’t, and the pitfalls to avoid.
Listen in as Michael provides a thorough analysis of popular investment strategies, evaluating each through the lens of scalability, passivity, and risk. He shares personal anecdotes and lessons learned from flipping houses, managing rentals, delving into franchises, trading options, and exploring commercial strategies like self-storage and mobile home parks.
Key Takeaways:
- Flipping Houses: Exciting yet not easily scalable. Discover why flipping houses might be lucrative but not the best long-term solution for financial freedom.
- Rental Properties: Understand the challenges of managing a large portfolio of rentals and why it may not be as passive as it seems.
- Short-Term Rentals (Airbnb/VRBO): Once profitable, now saturated with increasing legislative risk. Learn about the changing dynamics of this market.
- Franchises and Business Purchases: The illusion of passive income—uncover the hidden risks and responsibilities associated with running a franchise or business.
- Online Trading: Thrilling but high-risk. Michael shares his experience with trading and the reality of achieving financial freedom in this realm.
- Commercial Real Estate Strategies: Explore scalable and recession-resistant options like self-storage and mobile home parks, along with their management challenges.
- Multifamily Syndications: Discover why multifamily remains Michael’s preferred strategy for building passive income and generational wealth.
Ready to embark on your journey to financial freedom? Visit thefreedompodcast.com to explore resources, including a free Masterclass, or schedule a call to discuss working with Michael’s team.
Remember, financial freedom is possible, and there is more to life than just working and paying bills. Build the life you desire by creating truly passive income through smart investing. Tune in to learn how!
Connect with MichaelFacebook
YouTube
TikTok
ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session463/
Welcome to another insightful episode of Financial Freedom with Real Estate Investing. If you're struggling to scale your real estate portfolio, this episode is packed with essential insights to guide you on your journey. Whether you've started with single-family homes or are contemplating jumping straight into multifamily investing, our guest Phil Moeller shares his transformative journey from corporate manager to thriving multifamily investor.
Phil Moeller, a seasoned real estate investor since 2011, has acquired and managed over 430 units across 40 transactions. In this episode, Phil joins our host, Michael Blank, to compare the strategic advantages of multifamily versus single-family investments, emphasizing why multifamily might be the smarter path to financial freedom. From overcoming limiting beliefs to navigating the transition phases, Phil shares the setbacks and strategies that informed his journey.
In this episode, Phil explains his beginnings in single-family homes, pivoting to multifamily, and the multiple factors that influenced his real estate success. He candidly talks about the importance of having meaningful conversations with your spouse about financial goals, raising capital, and shares his acronym for success: PEACE (Purpose, Education, Association, Courage, Example).
Key Takeaways:
Phil’s Entry into Real Estate:
- Sparked by the birth of his first child and the desire for his wife to work less.
- Began with single-family homes, leveraging the BRRR method.
Transition to Multifamily:
- Realized the challenges of scaling single-family investments.
- The pivotal decision when managing 25 single-family doors became overwhelming.
Importance of Spousal Conversations:
- Essential to align on goals and strategies for family and business.
Overcoming Limiting Beliefs:
- How Phil addressed his own doubts and misconceptions about multifamily investment.
PEACE – Phil's Philosophy for Success:
- Embrace Purpose, Education, Association, Courage, and be an Example for others.
Phil's First Multifamily Acquisition:
- Shift strategy by embracing partnerships and leveraging knowledge from experienced multifamily investors.
Raising Capital:
- Transition from self-funded deals to understanding the power of partnerships and investor relationships.
For those ready to take actionable steps towards achieving financial freedom through real estate, Phil emphasizes the importance of clarity, aligning your purpose with education, surrounding yourself with the right people, and taking courageous actions.
Connect with Phil on LinkedIn or via his website, www.moellere.com, and listen to his insights on real estate and business on the Moeller Real Estate and Business Podcast.
Be sure to tune in to this value-packed episode to understand how you, too, can bridge the gap from single-family to multifamily investing. For further resources or to connect with our community, visit thefreedompodcast.com. Whether you're new, aspiring to scale, or interested in passive investing, we're here to help you on your financial freedom journey.
Connect with MichaelFacebook
YouTube
TikTok
ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session462/
In this episode of the Financial Freedom with Real Estate Investing podcast, Michael Blank wraps up the powerful 4-part series on the “4 Pillars of Apartment Investing Success” – a framework to get your first or next deal under contract in as little as 6 to 18 months. Today’s focus is on the final pillar, Deal Capital. In the last three episodes, Michael discussed becoming Deal Ready, establishing Deal Flow, and mastering Deal Analysis. Now, he dives into the importance of Deal Capital, where you’ll learn how to raise the funds you need to act quickly when the right deal comes along.
If you’ve ever felt that raising capital is daunting or worried about making mistakes, Michael breaks down the proven methods that have helped his students raise millions in capital, purchase over 41,000 apartment units, and build wealth using Other People’s Money (OPM).
Key TakeawaysThe Basics of Deal Capital
- Securing capital is essential to closing multifamily deals, but many investors are unsure how to raise funds effectively, especially before they have a property under contract.
- Michael explains that raising capital doesn’t require you to have your own funds; you can leverage Other People’s Money (OPM) to build wealth.
- He shares strategies to begin conversations with investors early, so you’re ready to move quickly when a great deal comes your way.
Creating a “Sample Deal Package”
- The “Sample Deal Package” is a powerful tool that allows you to present an example of a typical deal to potential investors, even before you have a specific property identified.
- This package provides potential investors with a clear picture of the type of opportunities you’re looking for, showcasing your vision and approach.
- By educating investors rather than “selling” to them, the Sample Deal Package builds trust and interest, making them more likely to invest when you’re ready to close a deal.
How to Find Investors in Your Network
- Raising capital often starts with people you already know, so don’t overlook your network – talk to everyone about what you’re doing.
- Michael emphasizes that you’re not selling an investment; you’re educating your network about multifamily opportunities and solving a problem for them by offering passive income.
- Approach potential investors as partners in wealth-building, showing them how they can benefit from passive income through real estate.
Approaching Investor Conversations as Education, Not Sales
- Many investors are looking for passive income opportunities but may not know how multifamily real estate can work for them.
- Instead of a sales pitch, approach conversations as education – show them the potential of multifamily investing without pressuring them.
- When you position yourself as a resource, you create authentic relationships where investors feel comfortable asking questions and investing with confidence.
Success Stories Using the Deal Capital Approach
- Michael shares how many of his students have used this approach to successfully raise capital, purchasing over 41,000 apartment units valued at $1.5 billion.
- By focusing on education, strategic networking, and a clear investment approach, these students have been able to simplify the capital-raising process and close deals more easily.
- These stories demonstrate that with the right approach, raising capital becomes an achievable part of multifamily success, even for first-time investors.
Connect with MichaelFacebook
YouTube
TikTok
ResourcesAccess the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session461/
Are you ready to take your real estate investing to the next level? Do you feel stuck in single-family rentals, struggling to scale and create true financial freedom? If so, this episode is for you!
In this episode of Financial Freedom with Real Estate Investing, John R. Saunders III joins Michael Blank to share his journey from small real estate deals to large multifamily investments—and how you can do the same.
John reveals his proven strategies for scaling fast, raising capital, and making the mindset shifts necessary to play at a higher level. If you want to build a profitable real estate business and achieve financial independence, you don’t want to miss this!
Key TakeawaysWhy Single-Family Rentals Won’t Make You Financially Free The limitations of single-family investing * Why scaling with apartments is faster, easier, and more profitable* * The hidden challenges of managing a portfolio of small properties
How to Raise Capital (Even If You Don’t Have Money) How to leverage Other People’s Money (OPM) to fund deals * The exact steps John used to attract investors—even as a beginner * Why you don’t need to be rich* to start buying apartment buildings
The Mindset Shift You Need to Scale Up How to overcome fear and think bigger when investing in multifamily * The difference between a small investor vs. a multi-millionaire investor mindset * Why your network and mentors* play a huge role in your success
The Power of the First Deal How your first apartment deal will change everything * Why momentum is the key to building a thriving portfolio * How to position yourself as a credible investor* even if you’re just starting
Connect with MichaelFacebook
YouTube
TikTok
ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session460/
In this episode of the Financial Freedom with Real Estate Investing podcast, we’re diving into part 2 of our 4-part series on the “4 Pillars of Apartment Investing Success.” This series is all about getting you ready to close your first or next multifamily deal in 6 to 18 months. Last time, we covered Deal Ready. Today, we’re talking about Deal Flow – how to keep those quality deals coming in consistently.
Michael shares why just browsing online listings won’t cut it and how building strong relationships with brokers is the real key to accessing off-market deals that don’t go public. You’ll learn how to establish yourself as a serious investor so brokers send you the best deals first. If you’ve been struggling to find good deals, this episode is for you!
Key TakeawaysWhy Deal Flow is Critical
- To grow your multifamily portfolio, you need a constant stream of high-quality deals.
- Without deal flow, you’re missing out on opportunities and may feel stuck or frustrated.
The Power of Off-Market Deals
- Many of the best deals never get listed publicly – they’re shared directly with a broker’s trusted investors.
- Michael explains why brokers prefer to share properties off-market and how you can become one of their “go-to” buyers.
How to Build Relationships with Brokers
- To get these exclusive deals, you need to position yourself as a reliable, serious investor.
- Michael shares tips on building broker trust, like knowing your numbers and providing quick feedback on deals they send.
Stand Out by Adding Value and Being Responsive
- Brokers appreciate investors who are quick, accurate, and provide value.
- By responding promptly and showing brokers you’re serious, you’ll establish yourself as someone they can count on for future deals.
Connect with MichaelFacebook
YouTube
TikTok
ResourcesAccess the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session459/
Are you looking for an alternative real estate investment that offers low risk, high cash flow, and minimal management headaches? What if we told you that parking lots could be one of the most overlooked and profitable asset classes out there?
In this episode of Financial Freedom with Real Estate Investing, seasoned investor Kevin Bupp joins Michael Blank and Garrett Lynch to break down the unique benefits of investing in parking lots. With over $1 billion in real estate transactions, Kevin has mastered a variety of real estate asset classes, including mobile home parks and, more recently, parking lots.
If you're tired of the same old multifamily strategies and want to explore an alternative asset that can fast-track your financial freedom, this episode is packed with insights, strategies, and expert advice you won’t want to miss!
Key TakeawaysWhy Parking Lots Are an Untapped Investment Opportunity
- The low-maintenance, high-profit nature of parking lot investing
- How parking lots compare to multifamily, office spaces, and other real estate assets
- The cash flow potential of this overlooked niche
What to Look for When Evaluating Parking Lot Deals
- Key financial metrics to assess a parking lot investment
- The biggest red flags to watch out for before purchasing
- How to determine demand, profitability, and long-term potential
Lessons from the 2008 Recession: Kevin’s Approach to Recession-Proof Investing
- The biggest mistakes Kevin made during the market downturn
- How to adjust your strategy in a changing economy
- The best alternative asset classes for long-term wealth building
How to Get Started in Alternative Asset Investing
- Why most investors overlook parking lots (and why they shouldn’t)
- The best way to enter the market and start making deals
- How creative financing can help you scale your portfolio faster
Connect with Kevin BuppMB 054: Getting Started with Mobile Home Parks – With Kevin Bupp
MB281: How to Scale a Portfolio of Mobile Home Parks – With Kevin Bupp
Website
Youtube
Real Estate Investing for Cash Flow Podcast
Connect with MichaelFacebook
YouTube
TikTok
ResourcesTheFreedomPodcast.com
Access the #1 FREE Apartment Investing Course (Apartments 101)
Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Syndicated Deal Analyzer
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session458/
In this episode of the Financial Freedom with Real Estate Investing podcast, Michael Blank kicks off a brand-new 4-part series on the “4 Pillars of Apartment Investing Success.” This series will walk you through the essential steps to land your first multifamily deal in as little as 18 months. Today’s focus is on Pillar #1: Deal Ready.
Being “Deal Ready” is about more than just knowledge – it’s about building a team that gives you instant credibility with brokers and investors. Michael explains why having managers, lenders, and partners on your team is key to making serious progress. He shares practical steps to establish your team and look like a pro from day one. If you’re aiming to go beyond single-family properties and make a real impact in multifamily, start with this first step.
For full episode show notes visit: https://themichaelblank.com/podcasts/session457/
Are you intrigued by the possibilities of acquiring real estate without using your own money or getting traditional loans? Do you want to learn the art of creative financing to scale your real estate portfolio?
In this episode of "Financial Freedom with Real Estate Investing," we dive deep into creative financing with our expert guest, Chris Prefontaine. Chris is the founder of Smart Real Estate Coach, an author of four books on Amazon, and a Forbes Business Council member. He has over 33 years of experience in real estate and has mastered the art of buying and selling on terms. Chris breaks down three key creative financing strategies: seller financing, subject to existing financing, and lease purchases.
For full episode show notes visit: https://themichaelblank.com/podcasts/session456/
Do you want to master the art of market timing and unlock incredible opportunities in multifamily real estate? Are you interested in strategies that can help you achieve both financial independence and financial freedom through passive and active investing?
Hunter Thompson, the founder of RaisingCapital.com and Asym Capital, joins us on this episode of Financial Freedom with Real Estate Investing. With significant experience in capital raising and market analysis, Hunter has raised $85 million from private investors and has deep insights into market timing.
In this engaging conversation, Hunter shares his journey from diversification in multiple asset classes to hyper-specialization in Phoenix's multifamily market. He provides compelling reasons why now might be the perfect time to get involved in multifamily real estate, despite recent market challenges.
Listen in as Hunter discusses the key differences between financial independence and financial freedom, explains the current investment climate, and outlines conservative underwriting strategies for today's market.
For full episode show notes visit: https://themichaelblank.com/podcasts/session455/
In this episode, Michael Blank and Garrett Lynch dig into a simple but powerful idea: the Fund of Funds. This approach can change the game for fund managers looking to raise capital and invest in bigger real estate deals. They break down what a Fund of Funds actually is, how it works, and why it could be a great option for scaling up.
Michael and Garrett also talk about the experience they bring to the table at Nighthawk Equity—21 deals, 3,000 units, and over $350 million in assets—and what this experience means for anyone interested in multifamily investing. If you’re looking to understand the basics of a Fund of Funds, the support Nighthawk offers, and how the numbers shake out, this episode is packed with info you can actually use.
NighthawkEquity.com/fund
For full episode show notes visit: https://themichaelblank.com/podcasts/session454/
In this special New Year’s episode, Michael Blank shares the key to setting goals that actually work and making this year your most intentional, purpose-driven year yet. Tired of New Year’s resolutions that fade out by February? Michael introduces his 5 Steps to Clarity, a straightforward and proven system designed to help you set goals that stick and build a life you love. This episode goes beyond traditional goal-setting, focusing on creating a clear vision for your future, setting up daily actionable steps, and building accountability to keep you on track all year long.
Whether you’re aiming for financial freedom through real estate or looking to live a life more aligned with your values, this episode is about developing the clarity, consistency, and control you need to reach your biggest goals.
For full episode show notes visit: https://themichaelblank.com/podcasts/session453/
In today’s episode, Michael sits down with Brian Burke, CEO of Praxis Capital and author of The Hands-Off Investor. Brian shares why right now might be the perfect time to dive into multifamily investing - something he’s never said before - even with high interest rates. He takes us through his journey from single-family rentals to large multifamily deals and explains the mindset changes that helped him scale up. Whether you’re stuck with a few rentals or want to move into bigger deals, this episode gives you real steps to make it happen.
For full episode show notes visit: https://themichaelblank.com/podcasts/session452/
In this episode of Financial Freedom with Real Estate Investing, Michael Blank reflects on the major market trends, key insights, and lessons learned in 2023. With shifting interest rates, evolving multifamily strategies, and economic uncertainties, this year brought challenges and opportunities for real estate investors. Michael breaks it all down and shares actionable takeaways to prepare you for success in 2024. Whether you’re just starting out or scaling your portfolio, this episode will help you position yourself for the future.
For full episode show notes visit: https://themichaelblank.com/podcasts/session451/
In this special episode of the Financial Freedom with Real Estate Investing podcast, Michael Blank sits down with three of his top mentors—Jonathan Nichols, Paula Nichols, and Philippe Schulligen—for a powerhouse discussion. These incredible mentors, who’ve helped countless students achieve their multifamily investing goals, share their wisdom, personal journeys, and actionable tips for getting started or scaling up in real estate. Whether you’re working on your first deal or growing your portfolio, this episode is packed with inspiration and strategies to guide you to financial freedom.
For full episode show notes visit: https://themichaelblank.com/podcasts/session450/
Do you ever struggle to create meaningful connections with your investors? Are typical corporate gifts like branded mugs and hats falling flat?
Then this episode of "Podcasts" is exactly what you need to perfect your gifting game and turn your investors into raving fans.
In this episode, Michael Blank welcomes John Ruhlin, the gift-giving guru and author of "Giftology,” to share insights on how thoughtful and personalized corporate gifts can significantly foster investor loyalty and generate referrals for your business. John sits down with co-host Garrett Lynch to discuss the underlying principles of his gifting strategy and its profound impact on building long-term relationships.
John emphasizes the significance of personalized, thoughtful gifts—such as custom-engraved knives with wisdom quotes—that leave lasting impressions and generate deep emotional connections. He lays out his proven system for successful gifting, including timing, personalization, handwritten notes, and involving the recipient’s family.
John’s innovative approach goes beyond mere kindness; it’s a strategic reinforcement of relationships that can yield substantial financial returns. He suggests that businesses should allocate 5-15% of their net profits to gifting as an investment strategy, not an expense.
Listen in to hear how Michael, Garrett, and their team at Nighthawk Equity plan to integrate John's strategies, moving away from generic gifts toward more personalized gestures that nurture meaningful connections with high-net-worth individuals.
For full episode show notes visit: https://themichaelblank.com/podcasts/session449/
In today's episode of Financial Freedom with Real Estate, Michael Blank wraps up the Freedom Accelerator series by diving into the final step: joining the right network. Discover how connecting with the right people can be the ultimate game changer for your success in multifamily real estate.
Michael Blank, host of the show, explains why building a robust network is crucial for accessing deals, raising capital, and forming partnerships that drive faster and more substantial growth. Drawing from his experiences and those of successful investors like Kris Van de Verd, Michael shares actionable insights and examples that highlight the importance of networking.
Plus, get inspired by real-life success stories, like Andy Vaughn and Seth Robinson, illustrating how strategic partnerships within the right network can skyrocket your progress.
For full episode show notes visit: https://themichaelblank.com/podcasts/session448/
Are you looking to scale your real estate business quickly and effectively? Do you understand the critical role that support plays in achieving financial freedom with real estate?
Then this episode of Financial Freedom with Real Estate Investing is for you!
Michael Blank, host and real estate investment expert, presents part two of the Freedom Accelerator series—a special three-part series aimed at helping you leverage key elements to fast-track your real estate deals. In today's episode, Michael focuses on the importance of having the right support system when you want to scale your real estate business.
Michael kicks off by highlighting the success story of Masha Klapanova, who joined his program and closed her first multi-family deal—a 50-unit property in Florida—in just five and a half months. This achievement underscores the importance of having a solid support system in place.
For full episode show notes visit: https://themichaelblank.com/podcasts/session447/
Imagine accelerating your journey to financial freedom with multifamily real estate by just focusing on three key elements. What if you could skip common mistakes, maximize your efficiency, and quickly scale your real estate portfolio? This episode is the first in a special three-part series where Michael Blank explores what he calls the "Three Freedom Accelerators."
In this episode, Michael breaks down the first accelerator: following the right system. Drawing from both personal experience and lessons learned from helping hundreds of students, Michael dives deep into why having a proven system is crucial to achieving large-scale success in real estate—and fast.
Michael shares intimate stories from his own real estate journey, highlighting the pitfalls he encountered when he didn't follow a proven system, contrasting that with the marked success and ease when he finally did. He introduces the concept of the "Deal Maker Blueprint," a systematic approach to buying your first apartment building and scaling from there.
Whether you're just starting out or looking to scale your syndication business, Michael's insights into the vital role of the right system will arm you with the knowledge to avoid common mistakes and accelerate your journey towards financial freedom through multifamily real estate investing.
For full episode show notes visit: https://themichaelblank.com/podcasts/session446/
Are you intrigued by innovative approaches to real estate investing that also tackle affordable housing challenges? Imagine a model that doubles your rental income while reducing vacancies and enhancing tenant retention. If this piques your interest, you're going to love this episode!
Atticus LeBlanc, CEO of PadSplit, joins hosts Michael Blank and Garrett Lynch on "Financial Freedom with Real Estate Investing" to discuss a transformative shared housing model. PadSplit enhances rental income by renting properties by the room, making affordable housing accessible to more people. Atticus shares insights on how this model can be integrated into both single-family homes and multifamily properties, adapting to various housing types.
Listen in as we delve into how PadSplit addresses the unique needs of individuals earning less than $50,000 annually, how it navigates zoning and regulatory challenges, and the significant boosts it provides in terms of rental income.
For full episode show notes visit: https://themichaelblank.com/podcasts/session445/
Do you find yourself dreaming about achieving financial independence? Are you intrigued by the world of multifamily real estate but unsure where to start?
Then you're in the right place.
On this episode of Financial Freedom with Real Estate Investing, Michael Blank presents the Dealmaker Blueprint, a comprehensive system designed to help you secure your first multifamily deal and ultimately achieve financial freedom. Whether you're skeptical about multifamily investing or already considering taking the plunge, this episode is packed with insights you won't want to miss.
Michael Blank walks us through the seven-step Dealmaker Blueprint, beginning with clarifying your vision and surrounding yourself with the right people, through to acquiring the necessary skills and building a consistent deal pipeline. He emphasizes the importance of having the right mindset, believing that financial freedom is indeed achievable, and working within a proven framework to make it happen.
Listen in to understand how you can break into the multifamily investment space, avoid common pitfalls, and take substantial steps toward financial independence. Whether you're starting from scratch or looking to refine your approach, this episode is for you.
For full episode show notes visit: https://themichaelblank.com/podcasts/session444/
Are you a real estate investor concerned about asset protection and tax advantages? Do you want to ensure your investments are shielded from legal risks and pitfalls?
Then you’re in the right place! In this enlightening episode of Podcasts, we dive deep into the world of asset protection with experts Garrett Sutton and Ted Sutton.
Garrett Sutton, best-selling author of "Loopholes of Real Estate," and Ted Sutton, author of "The Five Tricks to Teach Your Kids About Money," join hosts Michael Blank and Garrett Lynch to discuss essential strategies for protecting your investments. Corporate Direct offers invaluable services, including free 15-minute consultations and comprehensive financial education available on Sunstream.com.
Listen as the Suttons share insights on the Corporate Transparency Act, corporate veil piercing, and proper LLC management. Plus, you’ll learn why Wyoming is a favorable state for setting up LLCs and how to effectively use charging order protections.
For full episode show notes visit: https://themichaelblank.com/podcasts/session443/
Are you aiming for financial independence through real estate investing? Do you want to unlock the ultimate tax advantages in your real estate ventures? This episode is your roadmap to mastering tax strategies and achieving financial success!
Join Michael and Garrett as they unravel the intricacies of proactive tax planning with expert CPA, Tim Gertz. Dive into valuable insights on how real estate investors can leverage tax advantages and make smarter investment decisions.
For full episode show notes visit: https://themichaelblank.com/podcasts/session442/
Are you ready to take the leap into real estate investing? Do you see the value of mentorship in navigating the complexities of the market?
Then you’ll be inspired by the remarkable journey of Frank Mwaisaka.
Frank Mwaisaka, an immigrant from Tanzania with an engineering background, shares his trailblazing journey of achieving financial freedom through real estate on this episode of Financial Freedom with Real Estate Investing. Initially skeptical about syndication and mentorship programs, Frank uncovered the power of these strategies with Michael Blank’s guidance and successfully closed his first deal for just $36 in Indianapolis, overcoming significant funding challenges along the way.
Join hosts Michael Blank and Garrett Lynch as Frank unfolds his transition from single-family homes to multifamily properties, emphasizing the role his mentorship program played in his success. With his short-term goal of spending quality time with family and a long-term vision to give back to communities in Tanzania, Frank’s story is a testament to the transformational impact of real estate investing.
Listen in to hear how Frank navigated his first deal, his plans to significantly impact education and infrastructure in Africa, and the powerful support system provided by his mentorship program.
For full episode show notes visit: https://themichaelblank.com/podcasts/session441/
Are you interested in learning how to leverage real estate to protect your investments from inflation? Or maybe you're inspired by success stories of overcoming incredible odds to achieve financial freedom?
Then this episode is for you. Diego Corzo, an undocumented immigrant, climbed the ranks to build a $20 million real estate business, and his journey is nothing short of inspiring.
Diego joins hosts Michael Blank and Garrett Lynch to discuss the impacts of inflation on real estate, the protective benefits of investing in real estate, and his rags-to-riches story that shows how determination and resourcefulness can lead to astounding success in the field.
On this episode of Podcasts, Diego shares his story from facing legal work and driving challenges in the U.S. to achieving financial independence at age 26. We delve into how he used masterminds and partnerships to scale his investments, transitioning from house hacking to a multimillion-dollar portfolio.
Listen in to learn about the balance of risk and conservatism in real estate investing, the importance of local market understanding, and leveraging opportunities during times of fear in the market. Diego also shares his insights on the value of masterminds and his perspective on maximizing returns on equity.
For full episode show notes visit: https://themichaelblank.com/podcasts/session440/
Impressed by the financial potential of real estate investing and seeking a path to financial freedom? Discover the keys to successful underwriting and multifamily investing on this episode of Podcasts.
Jonathan Nichols, co-founder of Apogee Capital, joins Michael Blank to share his journey from engineering to real estate investing and the invaluable lessons he's learned along the way. Tune in to hear Jonathan's expert insights on underwriting, deal structuring, and avoiding common pitfalls in real estate investments.
For full episode show notes visit: https://themichaelblank.com/podcasts/session439/
Are you looking to transition from single-family homes to more lucrative investments? Have you ever considered the high potential of hotel investments?
In this episode of Financial Freedom with Real Estate Investing, Micah Haworth joins Michael Blank to share his rapid journey from single-family houses to owning a hotel through syndication.
Micah, who transitioned to real estate investing after losing his job in the live event industry in 2020, has impressively built a $5.5 million portfolio in just 18 months. He walks us through his journey from a twelve-unit multifamily property to acquiring a 61-unit hotel, applying syndication principles to a different asset class.
Micah details the key steps in his success, including the importance of building a strong team, conducting thorough due diligence, and leveraging relationships for capital raises. He explains his conservative underwriting process, the impact of renovations on guest satisfaction, and the significance of having experienced partners.
Listen to gain insight into how Micah managed to meet and partner with seasoned investors, overcome the challenges of unpredictable weather in the hospitality market, and achieve his first profitable month. Plus, learn about the "Dealmaker Blueprint," a systematic approach for easy entry into multifamily and hotel investments, and how leveraging the right "who" rather than figuring out the "how" can accelerate your real estate success.
For full episode show notes visit: https://themichaelblank.com/podcasts/session438/
Join us as we dive deep into all things real estate and investment with Patrick Grimes, CEO of Invest on Main Street, an expert in finding unique investment opportunities and scaling marketing platforms.
In this episode of Financial Freedom with Real Estate Investing, hosts Garrett Lynch and Michael Blank sit down with Patrick Grimes to explore his multifaceted journey from high-tech professional to a thriving real estate investor. Patrick shares insights on building trust and credibility with investors through impactful storytelling, personal interactions, and strategic content creation.
Patrick explains how he transitioned from single-family homes to multifamily deals, emphasizing the importance of genuine connections over superficial marketing tactics like Facebook ads. He also delves into the complexities of today’s market, the surge in private debt, and the challenges of attracting the right investors.
Listen in to learn how Patrick scaled his marketing platform through webinars, podcasts, Forbes articles, and constant educational outreach, helping investors make better-informed decisions.
For full episode show notes visit: https://themichaelblank.com/podcasts/session437/
Are you ready to achieve financial freedom through real estate investing? Do you want to learn the secrets to building a successful team and leveraging relationships in multifamily real estate?
Join Michael Blank and Bibi Ofiri as they dive deep into the world of apartment building investing. Bibi Ofiri, a seasoned real estate investor who transitioned from house flipping burnout to multi-million dollar deals in multifamily real estate, shares her compelling journey and valuable insights in this power-packed episode.
In this episode, Bibi discusses the importance of market selection, creating relationships with property managers, brokers, lenders, and other team members. From her experiences in managing property and flipping homes to scaling up in multifamily acquisitions, Bibi underscores the crucial role of building a strong and knowledgeable team, conducting due diligence, and consistently nurturing broker relationships to unlock off-market deals.
Listen in as Bibi highlights her inspiring story from being an immigrant working in a cleaning company to an influential figure in multifamily real estate. Michael Blank and Bibi also touch upon essential tips for getting started in real estate investing, the significance of a solid financial model, and the journey towards financial independence through teamwork and education.
For full episode show notes visit: https://themichaelblank.com/podcasts/session436/
Are you a solo real estate investor looking to scale your business? Do you want to achieve financial freedom faster through multifamily investing?
The secret to success lies in building the right team.
Paula Nichols is the co-founder of Apogee Capital and a multifamily syndicator who has achieved financial freedom. Born and raised in Colombia, Paula moved to the US in 2006 to chase the American Dream.
After meeting her husband Jonathan in college, the couple got started in real estate. But they made the mistake of trying to do everything themselves, limiting their ability to scale.
On this episode of Financial Freedom with Real Estate Investing, Paula joins me to explain the importance of building a team to achieve greatness in multifamily.
She describes the key players you need to find and acquire apartment deals, from brokers and lawyers to lenders and property managers.
Listen in for insight on selecting the right partners for your multifamily team and learn how to leverage other people's skills and experience to accelerate your success in real estate.
For full episode show notes visit: https://themichaelblank.com/podcasts/session435/
Struggling to afford a home in today's market? You're not alone. Housing prices are soaring, and affordability is at a 40-year low.
Jason Hartman, a seasoned real estate investor and entrepreneur, joins host Michael Blank to discuss the current state of the housing market and what it means for real estate investors.
On this episode of Podcasts, Jason shares his insights on the supply and demand challenges driving up prices, the impact of rising interest rates, and the factors contributing to the housing affordability crisis.
Despite predictions of a market crash, Jason explains why housing prices continue to appreciate and debunks the idea that rising interest rates will lead to a significant drop in prices.
Jason also discusses the role of existing homeowners in controlling the housing stock and the impact of COVID-19 and government policies on the current market conditions.
Listen in to understand the dynamics at play in the housing market and learn how real estate investors can navigate this challenging environment to achieve financial freedom through apartment building investments.
For full episode show notes visit: https://themichaelblank.com/podcasts/session434/
Are you curious about the outlook for multifamily real estate investing in 2024? Do you want to know why now might be the best time to buy apartments?
Then tune in to this episode of Financial Freedom with Real Estate Investing, where hosts Michael Blank and Garrett Lynch sit down with special guest Joe Fairless from Ashcroft Capital and the Best Ever Real Estate Show.
As a successful real estate investor with a wealth of experience, Joe shares his insights on the current state of the market and the factors that make 2024 a potentially lucrative year for apartment investing.
In this episode, you'll learn about the impact of interest rates on real estate investment, the benefits of being a passive investor, and the risks associated with real estate investing and how to mitigate them.
Joe also discusses the current supply and demand dynamics in the apartment market, highlighting the window of opportunity for buyers to capitalize on favorable economics and the upcoming shift in the supply-demand balance.
Listen in to understand why focusing on A-class properties might be a smart move and how investors can take advantage of the opportunities in the multifamily market while others remain parked in money markets.
For full episode show notes visit: https://themichaelblank.com/podcasts/session433/
Have you ever faced immense adversity and come out the other side stronger and more focused? Do you dream of achieving financial independence through smart real estate investments?
Meet Damion Lupo, an inspiring entrepreneur who turned a catastrophic financial loss into a powerful journey of success and service. On this episode of Financial Freedom with Real Estate Investing, Damion shares his dramatic story of losing a $20 million net worth, becoming homeless, and then rising to create a company valued at $400 million. Host Michael Blank digs deep into Damion’s life story, from growing up in Alaska to taking bold steps in the business world.
In this episode, Damion talks about an ambitious venture to tackle the housing shortage in America—Frametech. With a vision to streamline and revolutionize construction processes, Frametech is set to establish up to 100 fully automated plants, significantly reducing construction waste and time. Michael and Damion explore how determination and resilience are key traits for finding success.
For full episode show notes visit: https://themichaelblank.com/podcasts/session432/
Are you stuck in a comfortable but unfulfilling job? Do you have a vision for financial freedom but struggle to take the first step?
Jens Nielsen, a certified high-performance coach and successful real estate investor, joins Garrett Lynch and Michael Blank to share his journey from a traditional W-2 job to owning over 2000 multifamily units. Jens and his wife started their real estate investing journey with $200,000 saved in a non-retirement account, taking actionable steps based on their newfound knowledge from books and podcasts.
In this episode, Jens emphasizes mindset as the primary stumbling block to achieving financial independence. He shares how connecting with a bigger vision and understanding the pain of the current situation can be powerful motivators for change. Jens also discusses the strategic importance of professional property management, the four pillars of apartment investing success, and the role of building strong broker relationships.
Listen in to hear Jens' personal experiences in overcoming fear, investing out of state, and scaling his portfolio to over 2000 units. Whether you are just starting or looking to scale your apartment investing business, this episode is packed with actionable insights and inspiration.
For full episode show notes visit: https://themichaelblank.com/podcasts/session431/
Are you interested in achieving financial independence through real estate investing? Do you want to learn how to leverage your sphere of influence to raise capital effectively?
In this episode of Podcasts, Michael Blank sits down with Jeremy LeMere to discuss successful strategies for raising capital, overcoming the fear of deal-making, and avoiding common mistakes in multifamily investing.
Jeremy LeMere, a seasoned mentor in apartment building investing, shares his insights from mentoring students over the past four years and emphasizes the importance of being "deal ready." This episode is a must-listen for anyone looking to accelerate their success in real estate investing through education, team-building, and practical knowledge.
Listen in as Michael Blank and Jeremy LeMere provide valuable tips on how to establish credibility with brokers, educate investors, and ensure your first deal leads to many more opportunities.
For full episode show notes visit: https://themichaelblank.com/podcasts/session430/
Are you feeling the burnout from managing properties on your own? Are you looking to scale up your real estate investments but need a like-minded team for support?
You won't want to miss this episode of Podcasts, where we are joined by Sandy Bundurent and John Funderburk, two seasoned real estate investors who share their remarkable journeys and insights into scaling up in the industry.
For full episode show notes visit: https://themichaelblank.com/podcasts/session429/
Are you interested in unlocking your capital gains and maximizing your financial opportunities? Do you hope to grow your wealth without the constraints of traditional tax strategies?
Join hosts Michael Blank and Garrett Lynch in an enlightening discussion with Brett Swarts, a leading authority on capital gains tax deferral.
In this episode of Podcasts, Brett shares his innovative approach to deferring capital gains taxes, delving into the benefits and mechanisms of the Deferred Sales Trust (DST). Swarts, author of "Building a Capital Gains Tax Exit Plan" and an expert in the field, provides invaluable insights and practical advice to both passive and active investors looking to optimize their financial strategies.
For full episode show notes visit: https://themichaelblank.com/podcasts/session428/
Do you dream of achieving financial freedom through real estate? Are you eager to learn the secrets to raising capital for multifamily investments?
Then you won't want to miss this special episode with Barry Flavin—a multifamily syndicator and mentor with an impressive background in air traffic control and software sales.
Barry Flavin is a wealth of knowledge, having transitioned from owning single-family rentals to managing hundreds of apartment units and raising millions in capital. As a mentor for aspiring real estate investors, Barry is committed to sharing his expertise on achieving financial independence through apartment building investments.
On this episode of the Financial Freedom with Real Estate Investing podcast, Barry sits down with Garrett Lynch and Michael Blank to share his compelling journey into the multifamily space. Barry opens up about his origin story, his strategic transition from single-family rentals, and how he effectively collaborates with his partner to achieve substantial growth.
Listen in as Barry discusses his role in capital raising, the importance of building a strong team, and the operational efficiencies that set their business apart. If you’ve ever wondered how to break into apartment investing or how to raise capital like a pro, this episode is packed with actionable insights.
For full episode show notes visit: https://themichaelblank.com/podcasts/session427/
Do you wish you had more time to focus on what you do best? Are you struggling to manage all the aspects of your real estate business?
In this episode of the "Financial Freedom with Real Estate Investing" podcast, Michael Blank and Garrett Lynch co-host an enlightening conversation with David Homyak, an expert in hiring high-level virtual assistants (VAs) with over five years of experience. David shares how strategic delegation can transform your business operations, allowing you to spend more time in your "genius zone."
David Homyak is an expert in the field of virtual assistants, with a special focus on hiring experienced VAs for real estate businesses. He has developed a streamlined hiring process that minimizes the recruiter’s time and effort while maximizing the quality of hires. David’s company specializes in finding VAs with extensive backgrounds, particularly in real estate, ensuring that they can handle complex tasks with ease. His approach to integrating VAs into business operations helps entrepreneurs and business owners delegate efficiently and drive growth.
Access the free personality assessment tool and other resources for hiring virtual assistants at themichaelblank.com/va
Join the Investor Club https://nighthawkequity.com/invest-now/
Get the #1 Apartment Investing Course for FREE https://apartments101.co/
For full episode show notes visit: https://themichaelblank.com/podcasts/session426/
Are you curious about alternative investments and how to diversify your portfolio like the wealthy? Do you want to understand how successful investors allocate their assets across various investment opportunities?
In this episode of Financial Freedom with Real Estate Investing, I’m joined by Jim Dew, CEO of Dew Wealth Management. With 29 years of experience building virtual family offices and deep expertise in alternative investments, Jim offers insightful strategies on how millionaires and billionaires invest, helping you align your investment strategy with that of the supremely wealthy.
We'll cover a wide array of topics, from oil and gas investments to private debt and venture capital. Jim shares his views on the benefits and risks associated with each, including the importance of not letting tax benefits drive your investment decisions but considering the quality and longevity of the investment.
Listen in to learn how you can diversify your investment portfolio, understand the relative advantages of different asset types, and discover opportunities in real estate syndications through platforms like Nighthawkequity.com.
For full episode show notes visit: https://themichaelblank.com/podcasts/session425/
Are you ready to take your first steps towards financial independence through apartment building investing? Do you want to learn from the experiences of those who've journeyed before you?
Join us on this episode of Financial Freedom with Real Estate Investing, where we dive deep into the art of multifamily investing and achieving the ultimate goal: financial independence.
Our guest, Rich Hamilton, transitioned from a flourishing career as a mortgage broker to become a financially free real estate investor. Rich shares the pivotal moments that led to leaving his W-2 job and the strategies he used to build a successful real estate portfolio.
On this episode, Rich and I explore the dangers of complacency in any career and how it impedes growth and fulfillment. Rich opens up about his journey, discussing both the highs of achieving financial freedom and the complexities of not knowing what's next once financial goals are reached.
Listen in as we touch on Rich's experiences, from dealing with financial freedom post-exit to his tips on continuing personal and professional growth. You'll hear how Rich overcame his initial fears and challenges, emphasizing the roles of a support team, steady momentum, and a consistent drive towards future goals.
For full episode show notes visit: https://themichaelblank.com/podcasts/session424/
Are you looking for innovative strategies to capture and convert leads online for your real estate investments?
Todd Heitner, the mastermind behind Apartment Investor Pro, shares his two decades of experience in creating online presences for real estate investors, with a special focus on multifamily syndicators over the past decade.
Throughout this episode, Todd discusses the essential components of a robust online marketing platform—from having a professional website to leveraging social media and producing valuable content. He highlights the importance of strategic planning to capture and nurture leads, employing tools like lead magnets and automated email sequences to build trust with potential investors. Todd also sheds light on the role of AI in content creation and investor interaction, offering practical tips for using technology to enhance human touchpoints.
Whether you're a seasoned syndicator or just starting out, you’ll find Todd’s insights incredibly valuable for scaling your capital-raising efforts online. Don't miss this episode packed with actionable advice on establishing an effective and efficient online presence. Tune in now to learn how to boost your syndication business!
For full episode show notes visit: https://themichaelblank.com/podcasts/session423/
Do you love networking and meeting new people? Do you regularly spend time with high-net-worth individuals?
Then you are a good fit for the capital raiser role in a multifamily general partnership.
Christopher Price is the CEO of Red Fox Multifamily and Managing Member of Boost Capital Group. As both a passive and active investor, he has a portfolio of 1,200 units valued over $32.5M.
With more than 20 years of experience in medical device sales, Christopher combines his network of professional connections with an outgoing personality to crush it as a capital raiser on the Boost team.
On this episode of Financial Freedom with Real Estate Investing, Christopher joins me to explain how he got his start with single family rentals and what inspired his transition to multifamily.
Christopher describes his role as the capital raiser in a GP, discussing how he attracts and educates potential investors about real estate opportunities.
Listen in to understand Christopher’s journey from passive to active apartment investor and learn how he is leveraging LinkedIn to expand his network of prospective LPs.
For full episode show notes visit: https://themichaelblank.com/podcasts/session422/
There’s a saying in real estate that ‘you make money when you buy.’ And while that may be true for single family rentals and flips, apartment buildings are a little different.
In multifamily, you make money when you add value. When you execute your business plan. When you stick to your budget and achieve projected returns.
So, what does successful asset management look like in today’s market?
Jonathan and Paula Nichols are the cofounders of Apogee Capital, a multifamily syndication business that helps people invest in commercial real estate.
Jonathan and Paula began their investing journey in 2018, and by 2021, they had built a portfolio of 183 units worth $15.6M. The Nichols also serve as mentors with the Michael Blank program.
On this episode of Financial Freedom with Real Estate Investing, Jonathan and Paula join us from Deal Maker Live to share their top takeaways from the conference and explain why 2024 is a year of opportunity in multifamily.
Jonathan and Paula offer advice on raising capital in the current market and discuss why relationships are crucial in the team sport that is syndication.
Listen in for insight around the characteristics of successful mentoring students and find out what it takes to manage multifamily assets well in 2024.
For full episode show notes visit: https://themichaelblank.com/podcasts/session421/
Wish you could get a bigger real estate deal done faster?
Then you need the three freedom accelerators—the right system, the right support, and the right network.
Masha Kruskal and Ahuva Druin leveraged this formula to partner on a syndication in Live Oak Florida and fast-track their success as multifamily GPs.
Masha has 18 years of experience in residential and commercial real estate and international startups. Ahuva is a principal investor with expertise in value-add, buy-and-hold, and multifamily real estate.
They connected as students in the Michael Blank Mentoring Program and joined forces to take on their first big multifamily deal.
On this episode of Financial Freedom with Real Estate Investing, Masha and Ahuva join me to discuss what inspired their interest in multifamily and why they chose our mentoring program.
Masha and Ahuva describe their roles as capital raiser and deal finder, explaining how their complementary skills and commitment to the process helped them close a deal in just 30 days!
Listen in for advice on overcoming limiting beliefs through mentorship and learn how Masha and Ahuva used a proven system and the Michael Blank network to accelerate their path to financial freedom.
For full episode show notes visit: https://themichaelblank.com/podcasts/session420/
If you’re counting on a financial advisor to grow your wealth, it’s likely that MOST of your money is in the stock market.
But that’s not how ultra-high-net-worth individuals approach investing.
So, what if you diversified your portfolio to include more alternative investments?
Drew Kniffin is Partner and President at Nighthawk Equity, the multifamily investing arm of The Michael Blank Brands.
Drew has a corporate finance and real estate investing career that spans two decades, and he is passionate about helping high-net-worth entrepreneurs invest passively in apartments.
On this episode of Financial Freedom with Real Estate Investing, Drew joins me to debate the pros and cons of investing in the stock market versus real estate.
Drew makes the case for the stock market, explaining why you should stay engaged with Wall Street as part of a balanced portfolio.
Michael discusses why he’s cynical about stocks, describing how the volatility of the market can decimate your returns over time.
Listen in for insight on how HNWIs invest their money and learn how to optimize your portfolio, mitigate your risks, and grow your wealth with real estate!
For full episode show notes visit: https://themichaelblank.com/podcasts/session419/
Your attorney is a key player in helping you close on any real estate deal.
But the right commercial real estate attorney truly cares about you and your success. They are willing to educate you on aspects of the law you might not know and navigate problems that arise along the way.
Kyle Swafford is the founder of Swafford Law, a commercial real estate law firm that represents clients in syndications, tax considerations for investors, join ventures and commercial lending.
Kyle has a wealth of experience in tax law, commercial real estate law and securities compliance, working as an International Tax Consultant at Deloitte prior to building his own firm.
On this episode of Financial Freedom with Real Estate Investing, we’re sharing Kyle’s conversation with Garrett Lynch on real estate law at Deal Maker Live 2024.
Kyle explains what inspired his transition from tax law to real estate and how he streamlines the process of closing on a multifamily deal.
Listen in for Kyle’s insight on distress in the current commercial market and learn how a good attorney can help you avoid mistakes and get your next deal across the finish line!
For full episode show notes visit: https://themichaelblank.com/podcasts/session418/
To contact Kyle here are his details:
- Website: www.swaffordlawllc.com
- Email: kyle@swaffordlawllc.com
- Office: 404-532-9531
Is fear holding you back from investing in multifamily?
Even seasoned investors like us deal with fear. The difference is, we don’t let it stop us from moving forward.
But how do you expand your comfort zone? How do you feel the fear and take action anyway?
On this episode of Financial Freedom with Real Estate Investing, Garrett and I sit down to explain why now is the right time to invest in multifamily and ‘be greedy when others are fearful.’
We discuss how we pulled off a refinance on a variable rate property (in just 25 days!) and offer advice on how to never run out of leads for raising capital.
Listen in to understand why new investors don’t have to start with single family strategies and learn how to expand your comfort zone to achieve financial freedom with multifamily real estate!
For full episode show notes visit: https://themichaelblank.com/podcasts/session417/
Are you looking to build a business but don’t want to start from scratch? What if you could learn a proven system and receive support from someone who’s done it themselves?
Then you might be interested in an RV rental management franchise, a business that monetizes the RV boom and helps entrepreneurs build wealth with WHEEL estate!
Garr Russell is Founder and CEO of Fireside RV Rental, the Airbnb of RVs. Since its inception in 2015, Fireside has grown into a franchise with 40 locations across the country and hundreds of RVs under management.
A born entrepreneur, Garr has started, scaled and sold several companies. His genius lies in understanding systems, marketing, and forging the way for others.
On this episode of Financial Freedom with Real Estate Investing, Garr joins us to explain how renting out his own RV inspired him to build and scale Fireside.
Garr discusses how RV owners benefit from the Fireside business model and describes how franchisees learn his proven system and receive support from expert RV rental managers.
Listen in for Garr’s advice for aspiring entrepreneurs and learn how to launch, grow and manage a successful RV rental business with other people’s RVs—no prior experience required.
For full episode show notes visit: https://themichaelblank.com/podcasts/session416/
Good multifamily deals have been hard to find in recent years. And Alex Cartwright was struggling to compete with more experienced investors.
He was looking for a niche that would give him a unique advantage. That’s when he met a broker at a conference who suggested converting a hotel into apartments.
Alex thought it sounded like a pain in the you-know-what. But when he looked at the numbers, Alex realized that the problems were worth solving.
Today, Alex is Founder and Managing Partner at Vilicus Capital, a real estate investing firm that specializes in converting hotels into affordable multifamily housing.
Alex is also Associate Professor of Economics at Ferris State University, where he teaches classes on managerial economics, economic growth and international business.
On this episode of Financial Freedom with Real Estate Investing, Alex joins us to explain what inspired his interest in real estate as a tenured professor making six figures.
Alex shares his twist on the traditional multifamily strategy, describing how he finds hotels that can be purchased cheaply in growing markets and converts them into workforce housing.
Listen in for insight into Alex’s first deal as lead GP of a hotel conversion and learn how to find your niche as an investor to achieve financial freedom with real estate!
For full episode show notes visit: https://themichaelblank.com/podcasts/session415/
Here at Nighthawk Equity, we haven’t done a multifamily deal in 18 months.
So, we were excited to find what looked like an ideal opportunity in Atlanta. And two months ago, we got the deal under contract.
But after spending $15,000 in the due diligence process, we ultimately decided to walk away.
What went wrong?
On this episode of Financial Freedom with Real Estate Investing, I sit down with my partners at Nighthawk, Drew Kniffin and Garrett Lynch, to debrief on the deal we didn’t do.
We explain what we liked about the deal, describing what made it a textbook value-add opportunity and how we planned to renovate the units and upgrade several amenities in the community.
Listen in for insight into the issues we discovered in the due diligence process and learn how to stick to your investment criteria and protect your investors by walking away from a bad deal!
For full episode show notes visit: https://themichaelblank.com/podcasts/session414/
You don’t know what you don’t know. And if you’re doing your very first multifamily acquisition, every little thing that comes up can seem insurmountable.
But if you have the support of a mentor, they can talk you through those obstacles, prevent rookie mistakes, and alleviate your concerns as an aspiring investor.
Jeremy Lemere is a successful investor and operator of multifamily, commercial, and self-storage facilities in Northeast Wisconsin.
He is also a mentor with the Michael Blank program, and his investment portfolio of $15M is made up of personal investments, self-directed IRA funds, solo 401(k) funds and real estate syndications.
On this episode of Financial Freedom with Real Estate Investing, Jeremy joins guest host Marybeth Noonan to explain how being a student in our mentoring program helped him transition out of his W-2.
Jeremy describes how he stayed connected to our network through a mastermind and eventually joined the team as a mentor, sharing his strengths in understanding finance and capital markets.
Listen in for insight on playing in different asset classes for the best return and learn how a mentor can help you learn the business of being a real estate investor!
For full episode show notes visit: https://themichaelblank.com/podcasts/session413/
Do you feel stuck? Like you’re not making progress in life?
Until my early 30s, I drifted through life. It felt like unseen forces were holding me back. And then I had a breakthrough and started living an intentional life—filled with purpose and fulfillment.
What made the difference? What does it mean to live with intention? What disciplines helped me identify and pursue what really matters to me?
On this episode of Financial Freedom with Real Estate Investing, I’m sharing my five clarity practices for living an intentional life.
I discuss the My Perfect Day exercise that helped me start making mindful choices and walk you through my process for setting five-year, one-year and quarterly goals.
Listen in for insight on scheduling Monthly Clarity Days and Weekly Strategic Time to reflect on your progress and learn how a Daily Morning Routine can help you live a more purposeful, fulfilling life!
For full episode show notes visit: https://themichaelblank.com/podcasts/session412/
Would David Kamara have figured out how to invest in multifamily on his own?
Yes, but at a much slower pace.
Working with a mentor accelerated his success. And now, the student has become the teacher.
David is a seasoned investor and mentor with the Michael Blank program. With 15 years of experience in real estate, David owns 1,000-plus units across the Midwest, primarily in Michigan and Iowa.
David is also a successful management consultant and sought-after advisor to C-suite executives and private equity investors. And he is fluent in five languages!
On this episode of Financial Freedom with Real Estate Investing, David joins guest host Marybeth Noonan to share his early wins as a student in our mentoring program.
David describes a near-perfect deal he manages in Marquette, Michigan, and discusses how he problem-solved an unexpected situation where the property taxes on a pending deal tripled.
Listen in for insight on trusting your resourcefulness as an aspiring investor and learn how a mentor like David can fast track your success in multifamily investing.
For full episode show notes visit: https://themichaelblank.com/podcasts/session411/
Whether you're looking to close a business deal or just improve your everyday interactions, the art of negotiation is key to getting to a YES.
But what if you’re not a natural negotiator?
How do you build a relationship with the person on the other side of the table? Or learn to navigate difficult conversations?
On this episode of the Financial Freedom with Real Estate Investing, Garrett is back to explain how his experience selling Cutco knives helped him become an expert negotiator.
He describes how he prepares for a negotiation, discussing what it means to command the relationship and how to respond when emotions run high.
Listen in for Garrett’s tips on gaining leverage in a negotiation and learn how to secure the negotiator’s edge in a legal dispute, contract negotiation or real estate deal.
For full episode show notes visit: https://themichaelblank.com/podcasts/session410/
Reading Rich Dad Poor Dad inspired me to build generational wealth. But the first few cashflow businesses I tried didn’t produce the passive income I expected.
So, if you’re thinking about starting your real estate career with fix-and-flips or even a SFH portfolio, know that neither strategy leads to financial freedom.
But can you really skip single family investing and jump right into apartments?
On this episode of the podcast, I’m sharing my journey to financial freedom with real estate, explaining why I tried to earn passive income with restaurants first—and why that strategy didn’t work.
I discuss why it’s impossible to scale a single-family portfolio to achieve financial freedom and describe the light bulb moment when I pivoted to multifamily investing.
Listen in for insight on getting into multifamily without money or experience and learn how to skip SFH investing and start building wealth with apartments!
For full episode show notes visit: https://themichaelblank.com/podcasts/session409/
Whether you’re already involved in multifamily syndications, or you’re interested in getting into the space in 2024, it’s crucial to understand the market outlook.
Through Nighthawk Equity, we own a 2,000-unit portfolio worth $350M. And we’re always on the lookout for new deals.
That means we have insight into what’s happening in the market and what’s likely to happen in 2024.
So, what are our predictions for the next 12 months of multifamily real estate? How can you leverage this information to survive and thrive as an investor in 2024?
On this episode of Financial Freedom with Real Estate Investing, I’m sharing my top three headlines for the multifamily market outlook in 2024.
I discuss what’s behind the ongoing operator distress in apartments and describe how the fundamentals of multifamily remain strong despite the challenges.
Listen in to understand how economic headwinds are easing and learn how to take advantage of the incredible buying opportunities coming in 2024!
For full episode show notes visit: https://themichaelblank.com/podcasts/session408/
You want financial freedom, but it feels out of reach.
Because you’re living paycheck to paycheck. And struggling to pay down consumer debt.
So, how do you get from where you are now to building generational wealth?
On this episode of the podcast, I’m walking you through the steps to achieving financial freedom in 2024.
I explain how to get your financial house in order first, challenging you to track your current spending and build emergency savings over time.
Listen in to understand why apartment investing is the key to financial freedom and learn how to create enough wealth to quit your job in the next six to 18 months!
For full episode show notes visit: https://themichaelblank.com/podcasts/session407/
Losing is never fun, but it’s often valuable.
In fact, Garrett Lynch contends that down moments force us to pick ourselves up and close the gap between who we are and who we want to be.
In addition to being my podcast cohost, Garrett Lynch serves as Director of Acquisitions and Managing Member of our investing firm, Nighthawk Equity.
And his story is full of setbacks. Setbacks that pushed him to grow and take the next step in becoming a successful real estate investor.
On this episode of Financial Freedom with Real Estate Investing, Garrett goes solo to share his journey from troubled teen to millionaire multifamily entrepreneur.
Garrett explains how he developed his #1 skill set selling Cutco knives and describes how his experience as a VIP concierge at a nightclub led him to real estate.
Listen in to understand what Garrett learned from scaling a portfolio of class D properties and get his advice on finding happiness in the business of real estate investing.
For full episode show notes visit: https://themichaelblank.com/podcasts/session406/
It's a new year with exciting new possibilities. Which means many of us are setting goals for 2024.
But why is it that New Year's resolutions usually don't work? Why can't we seem to stick to them for more than a few weeks before we fall away?
And more importantly, what can we do about it?
On this episode of Financial Freedom with Real Estate Investing, I’m sharing the Living Fully Compass system I recommend to crush your goals in 2024.
I explain what causes most of us to fail to follow through on our goals and why it’s beneficial to share your vision with a small group of accountability partners.
Listen in for insight on eliminating deadlines when you can’t control all the variables and learn how to achieve your goals by committing to the activities that lead to the outcome you want—for as long it takes!
For full episode show notes visit: https://themichaelblank.com/podcasts/session405/
What are the three most recession-resistant asset classes in real estate?
Even in challenging economic times, multifamily, mobile home parks and self-storage perform quite well.
Sergio Altomare built a portfolio of small multifamily properties while working full-time in technology for the Federal Reserve.
But in 2018, Sergio was having a hard time getting deals to pencil. He anticipated a market correction and pivoted to self-storage.
Today, Sergio is Cofounder and CEO of Hearthfire Holdings, a real estate private equity and development firm that manages over $50M in self-storage assets.
On this episode of Financial Freedom with Real Estate Investing, Sergio joins Garrett and me to discuss the benefits of investing in self-storage.
Sergio describes the financing challenges he’s facing in his business right now and shares his outlook for the self-storage market moving into 2024.
Listen in for Sergio’s insight on using data to find deals and find out if self-storage is the right real estate investment for you!
For full episode show notes visit: https://themichaelblank.com/podcasts/session404/
Passive investors are fearful in the current market environment.
Many got burned by rising interest rates, and they’re skittish about putting more money into the real estate market right now.
But we know that there are big opportunities coming in 2024. And Warren Buffet encourages us to ‘be fearful when others are greedy and be greedy when others are fearful.’
So, how do you position a deal to investors who may have lost money in multifamily? Can you still raise capital at scale—even when it’s not a popular time to invest?
Bronson Hill is CEO of Bronson Equity, where he has raised over $20M for real estate ventures and served as GP for a portfolio valued at more than $150M.
An advocate for helping others achieve financial freedom through passive investing, Bronson educates aspiring investors through his podcast and new book, Fire Yourself: Replace Your Working Income with Passive Income in 3 Years or Less.
On this episode of Financial Freedom with Real Estate Investing, Bronson joins Garrett and me to explain how he raises money at scale through his online marketing platform.
Bronson shares the inspiration behind his book, Fire Yourself, and discusses the common mistakes passive investors make.
Listen in for Bronson’s insight on vetting deals in new asset classes and learn how to position a multifamily deal to investors and raise money in a challenging market environment.
For full episode show notes visit: https://themichaelblank.com/podcasts/session403/
Financial freedom opens you up to live a life of significance.
To pursue passions that may or may not generate any revenue. To do volunteer work or support causes you believe in.
For me, that cause is Uganda Counseling and Support Services or UCSS, a nonprofit dedicated to improving the quality of life in remote communities of Uganda.
On this episode of Financial Freedom with Real Estate Investing, Drew Kniffin joins me to discuss our involvement with UCSS, describing how I met its founder, Dr. Ronald Kaluya, and what differentiates the organization from other nonprofits.
Drew asks me why I trust Dr. Kaluya and his team, and I explain how UCSS measures the impact of donor dollars in the communities we serve.
Listen in to understand the vision for UCSS moving forward and learn how you can get involved by sponsoring a student or becoming a legacy partner in the ministry!
For full episode show notes visit: https://themichaelblank.com/podcasts/session402/
Most real estate investors being their journey while they’re working a W-2.
But many hesitate to step away from the perceived security of their regular job, even after they’ve replaced their living expenses.
Others achieve financial freedom, leave the rat race, and then feel lost because they don’t have a sense of purpose.
So, what is the best way to transition from a W-2 to full-time entrepreneurship?
In addition to being a distinguished psychiatrist and mother of four, Dr. Elaine Stageberg is Cofounder and CEO of Black Swan Real Estate.
Elaine is a sought-after national presenter and investment thought leader, and she owns and operates a multifamily portfolio of 1,300 units.
On this episode of Financial Freedom with Real Estate Investing, Elaine joins Garrett Lynch to share her transition from psychiatry and healthcare administration to full-time real estate investor.
Elaine offers advice on preparing to leave your W-2, challenging us to simultaneously work toward our objective freedom number and the more subjective inner freedom it takes to make the leap.
Listen in for Elaine’s insight on elevating yourself to the next level of success and learn how to connect with investors who are ahead of you on the journey to financial freedom with real estate!
For full episode show notes visit: https://themichaelblank.com/podcasts/session401/
What were the top AHA moments on Financial Freedom with Real Estate Investing in 2023?
As the year comes to an end, it’s time for a highlight reel of our most inspiring moments on the podcast in the last 12 months.
On this Best of 2023 episode, we revisit our conversation with Faisal Ensuan and Dr. Sheri Fluellan on why real estate syndicators need the right coach and reflect on Joseph Kimbrough’s advice around building relationships with high-net-worth investors.
We look back at Marc Rutzen’s insight on using AI for asset management, Chris Pomerleau’s guidance on overcoming imposter syndrome and Nicole Gauthier’s suggestions for connecting with a real estate investing mentor.
We also share wisdom from Rachel Richards on the value of financial independence, Ross Hamilton on successfully pivoting a real estate company, and Jon Jasniak on land flipping with no friction.
Listen in for Matt King’s advice on choosing a peer group that will help you level up and get free coaching from our top guests on Financial Freedom with Real Estate Investing in 2023!
For full episode show notes visit: https://themichaelblank.com/podcasts/session400/
There are risks associated with running short-term rentals, especially when your Airbnb units are in a multifamily building.
But Syed Lateef has found a way to scale a STR business in apartment buildings.
And the landlords don’t just ALLOW Syed to rent their units, they WELCOME it.
Syed stands out in the world of short-term rentals, currently managing a portfolio of 300 units with a dedicated team of 50-plus employees.
Syed’s business earns over $30,000 a day, allowing him to give back by providing clean water wells to communities in need.
On this episode of Financial Freedom with Real Estate Investing, Syed joins us to explain how he replaced his W-2 income with short-term rentals.
Syed discusses his rental arbitrage business model, describing what he does to mitigate the risks of renting multifamily units on Airbnb and how he helps landlords solve vacancy issues.
Listen in for insight into the risks of running a STR business and learn how Syed achieved financial freedom with Airbnbs in apartments.
For full episode show notes visit: https://themichaelblank.com/podcasts/session399/
I'm not really a big fan of flipping anything.
I flipped three dozen houses early in my real estate career. But couldn't figure out how to turn that into a financial freedom business.
That's why I switched to apartments. And I am convinced that apartments are the number one way to become financially free with real estate.
But Travis King found a way to earn passive income with land flipping.
How does that work?
On this episode of Financial Freedom with Real Estate Investing, Travis joins us to discuss how he finds and finances off-market vacant land deals.
Travis explains how he gets top dollar on land when he sells it, earning a nice return for investors and interest income for himself through seller financing.
Listen in for insight on raising outside money to land bigger deals and learn how long it takes to replace your W-2 income with land flipping!
For full episode show notes visit: https://themichaelblank.com/podcasts/session398/
Mark Khuri’s real estate business survived the crash of 2008.
And the lessons he learned through that experience can help us take advantage of similar circumstances in the current market.
But how do you find good deals in tough times? Can you reduce risk without reducing expected returns?
Mark is Cofounder of SMK Capital Management, a family-owned investment firm that focuses on providing diversified offerings and attractive returns via income-producing commercial real estate.
With 17 years of real estate investing experience, Mark has executed over $1 billion in deals in a variety of asset classes.
On this episode of Financial Freedom with Real Estate Investing, Mark joins us to discuss how he leveraged networking to make it through the Great Recession.
Mark describes his transition from sponsor and operator of a SFH portfolio to raising capital for mobile home parks, self-storage and large multifamily deals.
Listen in for insight around Mark’s process for vetting operators and learn what you should be looking for in a good deal right now!
For full episode show notes visit: https://themichaelblank.com/podcasts/session397/
Wherever you are in the process of building a company (real estate or otherwise), it’s important to consider your exit strategy.
Because even if you don’t plan on selling your business anytime soon, that pushes you to eliminate yourself from the day-to-day and move into what we call the owner’s box.
So, what does it look like to position your company to sell? And how do you benefit from building a business that runs without you?
Ross Hamilton is the former CEO of Connected Investor, the real estate technology platform he scaled and sold to Fortune 100 Company First American.
Today, he is planning a mountain biking trip to Peru and building Saving Homes, a nonprofit that is disrupting affordable housing.
On this episode of Financial Freedom with Real Estate Investing, Ross joins us to discuss how he positioned Connected Investor to sell and why First American was the right buyer at the right time.
Ross shares what he learned in ten years of scaling Connected Investor and walks us through his ‘lifeboat strategy’ for transitioning into the next chapter of your life.
Listen in to understand how Saving Homes is helping people leverage real estate to escape poverty and get Ross’ advice on architecting an exit strategy for your real estate investing business!
For full episode show notes visit: https://themichaelblank.com/podcasts/session396/
Is your corporate job making you miserable?
Are you tired of giving everything to your company for eight hours (or more) and being too exhausted to spend quality time with your family at the end of the day?
What if you could get rid of those golden handcuffs with real estate?
Brooke Ceballos-Pinero has not only achieved financial freedom through real estate, but she is also dedicated to empowering others on their path to prosperity.
After 20 years in corporate America, Brooke left her W-2 just two weeks ago and went all-in on herself, growing the Multifamily Momentum coaching program and Real Women in Real Estate book project.
On this episode of the podcast, Brooke describes her frustrations with corporate America and shares the game plan she used to leave her 9-to-5 for real estate.
Brooke discusses the societal messaging that keeps women from pursuing multifamily, explaining why she’s committed to inspiring people in marginalized communities to build wealth with real estate.
Listen in for Brooke’s advice on planning your own exit from the corporate world and get inspired to achieve financial freedom with real estate—no matter who you are or where you come from!
For full episode show notes visit: https://themichaelblank.com/podcasts/session395/
Robert Martinez has been a successful real estate investor for more than a decade. But he made headlines recently when MF1 Capital foreclosed on one of his Houston properties.
So, how did it happen? What factors contributed to Robert losing the first deal of his career?
Robert is the visionary syndicator behind Rockstar Capital, a multifamily investing firm with a portfolio of 21 apartment communities encompassing 3,762 rental units.
In 10 years, Robert has led the underwriting, acquisition and management of 30 multifamily properties, and he is the only two-time National Apartment Association Independent Rental Owner of the Year.
On this episode of Financial Freedom with Real Estate, Robert describes the perfect storm that led to his first foreclosure, discussing how the Fed rate hikes impacted his business.
Robert explains why hiring a third-party management company for help backfired and shares what he did to try and save the deal—and why it didn’t work.
Listen in to understand how Robert benefited from being transparent with investors and learn what he is doing to regain their trust before he expands the Rockstar portfolio.
For full episode show notes visit: https://themichaelblank.com/podcasts/session394/
Former Marine Joseph Kimbrough was a successful wholesaler, but the work was a constant grind.
Joseph realized that to achieve financial freedom, what he needed was equity. And he was already comfortable pitching investors on big-ticket wholesale deals
So, Joseph started building a fund, raising capital from high-net-worth individuals and investing that money in multifamily deals run by the best operators in the business.
Today, Joseph is Founder and Fund Manager at Apex Real Estate Investments, a privately held equity investment company that invests in multifamily in the Southeast US.
To date, Joseph has built a portfolio of 592 doors worth $150M, and he is also a TEDx Speaker and esteemed member of the Forbes Real Estate Council.
On this episode of Financial Freedom with Real Estate, Joseph shares his ‘dream team’ approach to investing with top syndicators and describes the challenges he faced raising capital early on.
Joseph explains what he learned in the Marines that applies to real estate and offers advice on connecting with high-net-worth investors—both in person and online.
Listen in to understand how Joseph is inspired by his trips to East Africa and learn how real estate can give YOU the location and time freedom to travel abroad!
For full episode show notes visit: https://themichaelblank.com/podcasts/session393/
Mario Rapaj has been in our mentoring program for nine months now, but he hasn’t closed his first deal.
And he’s frustrated.
So, what’s holding Mario back?
Is he doing the right activities? Does he have any limiting beliefs? What can he do to get unstuck and finally become a GP?
Mario is Founder of Tex-Alb Real Estate Investment Group, a syndication business headquartered in Dallas, Texas. He has an LP portfolio of 375 multifamily units and owns several single-family properties.
Mario is driven to improve the quality of life in the communities where he invests and help passive investors build generational wealth.
On this Business Boost coaching session, Mario shares his challenges in finding deals that fit his criteria and getting investors to commit in the current market.
I ask Mario what he’s doing to raise capital, offering advice around how to get more investor leads and connect with partners who specialize in raising money.
Listen in for insight on finding a mentor to support your investing journey and learn how to stay the course and take consistent daily action to achieve financial freedom with real estate!
For full episode show notes visit: https://themichaelblank.com/podcasts/session392/
Ed Hermsen’s first multifamily deal fell in his lap, and he got it done fast.
But because that initial success came somewhat easy, Ed hadn’t taken the time to work on his mindset.
He didn’t have a morning routine. He hadn’t practiced writing down his goals. And no one was holding him accountable to take the next steps.
That’s why it took Ed a full two years to buy his second apartment building!
Ed is a former mortgage banker turned full-time real estate investor with a portfolio of four multifamily properties and two RV parks.
He is also the creator of Campground Ventures, a YouTube channel designed to educate investors on the ins and outs of RV parks.
On this episode of Financial Freedom with Real Estate, Ed explains why he’s the exception to the Law of the First Deal and describes what he did to get back into multifamily investing.
Ed opens up about why he’s self-funded all his deals so far, and we challenge him to overcome his fears around real estate syndications.
Listen in for Ed’s insight on the benefits of investing in RV parks and learn why you need MINDSET plus ACTION to grow your portfolio and achieve financial freedom with real estate!
For full episode show notes visit: https://themichaelblank.com/podcasts/session391/
Andrew Elio is a 22-year-old recent college graduate, but he already knows that he doesn’t want to work for someone else the rest of his life.
That’s what motivated him to join our Deal Maker Certification program a month ago. At the same time, he started working a full-time job.
How is Andrew juggling both responsibilities? What’s he struggling with? What progress has he made so far?
And what’s the most important thing Andrew can do to accelerate his success?
On this edition of Business Boost with Michael Blank, Andrew shares his anxiety around talking to brokers, and we discuss the role of practice in building confidence.
Andrew describes how he got into the habit of taking consistent action every day, and I discuss the benefits of networking with the Deal Maker Mastermind community.
Listen in as I address Andrew’s questions about what a loan covers (and what it doesn’t) and offer advice on finding an experienced mentor to fast-track his journey to financial freedom!
For full episode show notes visit: https://themichaelblank.com/podcasts/session390/
Sudhir Jarajapu took the first steps on his multifamily investing journey and invested in our mentoring program.
But then he got off track.
In fact, it took Sudhir nine months to work through the first 90 days of the program!
So, what got in the way? And what did Sudhir do to get back in the game?
Welcome to the first of our Business Boost with Michael Blank series on Financial Freedom with Real Estate Investing, where I do a live coaching session with a new syndicator!
On this episode of the podcast, Sudhir explains what inspired his interest in multifamily investing and why he chose to pursue mentoring with the Michael Blank organization.
Sudhir describes how he struggled to make time for the mentoring program at first and shares how both his mentor and his family eventually held him accountable to take action.
Listen in as I ask Sudhir what he needs support with right now, and we design an action plan to help him achieve financial freedom with real estate!
For full episode show notes visit: https://themichaelblank.com/podcasts/session389/
It took Chris Pomerleau four years to realize he didn’t have to replace toilets himself and another four years to realize he didn’t have to do his own books.
That’s when Chris went from simply doing deals to building a real estate business.
So, why does it take most investors so long to scale? And what can YOU do to achieve financial freedom much faster?
Chris is Cofounder of LeavenWealth Capital, a real estate investment firm out of Omaha, Nebraska, with 2,700 multifamily units totaling $211M in assets under management.
Chris also serves as Cofounder and VP of Investment Strategy at Rayven, a Reg A investment business committed to fighting climate change by way of net-zero apartment buildings.
On this episode of Financial Freedom with Real Estate Investing, Chris joins me to discuss how he got his start using the BRRRR method with SFHs—until he realized it wasn’t scalable.
Chris explains how he grew his real estate business, describing how he made the shift from borrowing money to raising equity and why having conversations with investors outside his circle was scary at first.
Listen in to understand Chris’ 50/50 approach to real estate partnerships and learn how to think about hiring not as an expense, but as an investment in your multifamily business!
For full episode show notes visit: https://themichaelblank.com/podcasts/session388/
Are you surrounding yourself with people who will get you to the next level?
Five years ago, a group of seasoned multifamily investors got together and established a Mastermind to support each other as we scale our real estate businesses.
And I’m proud to be part of that group with Matt Faircloth, who’s been in real estate full-time since 2005
Matt serves as Owner of DeRosa Group, a multifamily investing firm with a portfolio of 1,800-plus units and $150 million in assets under management.
Matt is also the author of the Amazon bestseller Raising Private Capital: Build Your Real Estate Investing Empire with Other People’s Money.
On this episode of Financial Freedom with Real Estate Investing, Matt and I discuss the opportunities we see coming in the multifamily market.
Matt describes the properties in his portfolio that are doing well versus the properties that are struggling, and we brainstorm strategies for dealing with rising insurance rates for multifamily.
Listen in as Matt shares his vision for scaling DeRosa Group and learn about the personal disciplines that contribute to his success!
For full episode show notes visit: https://themichaelblank.com/podcasts/session387/
Chad Schieler saw himself as the numbers guy, so he let partners handle the task of raising money for his first big real estate syndication.
But his team was short. At closing, they had $1M of a $1.4M raise, and Chad had to take out a bridge loan to cover the rest.
That experience inspired Chad to overcome his limiting beliefs around raising money and take his syndication business to the next level.
Today, he is Founder and Principal at Focused Capital, a multifamily firm that helps busy professionals generate passive income and create wealth through real estate investing.
After 17 years running a successful credit card processing service business, Chad became a full-time real estate investor. He is a GP on 139 units and LP on 900-plus!
On this episode of Financial Freedom with Real Estate Investing, Chad explains what he struggled with early in his real estate career, describing his fears of asking for money and the flaw in his underwriting formula.
Chad discusses how investing in a mentor gave him the confidence to take on bigger multifamily deals and shares his approach to building a team as he scales.
Listen in for Chad’s advice on fast-tracking your path to financial freedom and learn how to overcome your limiting beliefs around raising capital and start sharing the opportunity to invest in real estate!
For full episode show notes visit: https://themichaelblank.com/podcasts/session386/
Does your business feel like a black hole?
Are you feeding it all your time, energy and money? But it just keeps sucking away?
Too many business owners get to the end of their career and don’t have much to show for it, selling for next to nothing or simply letting the business fade away.
But what if you could leverage your business profits to build personal wealth?
Todd Polke is an international educator and trainer in the realm of wealth creation and building strategic investment portfolios.
Todd is dedicated to the mission of helping as many people as possible break free from the default and ‘live a life unlimited by income.’
On this episode of Financial Freedom with Real Estate Investing, Todd explains the idea behind his Profits to Portfolio system and how it helps business owners grow their personal wealth.
Todd shares how Australia’s real estate market compares to the US, offering advice on how to navigate the current downturn and prepare to capitalize on opportunities coming down the pike.
Listen in for Todd’s insight on avoiding emotional investment decisions and learn how to leverage a diversified portfolio to build personal wealth—and a lasting legacy.
For full episode show notes visit: https://themichaelblank.com/podcasts/session385/
We all go through challenging life experiences, be it the loss of a loved one, a serious illness, or painful divorce.
And the last thing we need in those circumstances is to worry about money.
But what is the best way to build the kind of passive income you need to make it through tough times without stressing about finances?
Rachel Richards is the creator of Money Honey, a financial education platform that helps young women manage their money effectively and achieve financial freedom.
Rachel achieved her own financial independence at the age of 27 with a portfolio of 38 rental units, and she is the bestselling author of Money Honeyand Passive Income, Aggressive Retirement.
On this episode of Financial Freedom with Real Estate Investing, Rachel explains how she and her then-husband leveraged real estate to reach a passive income goal of $10,000 a month in just three years.
Rachel shares her definition of financial independence and describes how it gave her the opportunity to escape to Italy and heal from a painful divorce.
Listen in for Rachel’s insight on rebuilding after a challenging life experience and learn how real estate can give you the financial independence to pursue what you love!
For full episode show notes visit: https://themichaelblank.com/podcasts/session384/
Asset management can be a real challenge for multifamily operators, especially if you’re managing properties from a distance.
If a site is not working, how do you figure out what’s wrong? Is it the staff? Are rents too high? Do you have too many work orders?
The good news is, new AI tools can give GPs transparency around what’s going on—helping us set pricing, manage expenses and optimize the performance of our real estate assets.
Marc Rutzen is Cofounder and CEO of HelloData.ai, a game-changing platform that is using data science to transform the world of proptech.
On this episode of Financial Freedom with Real Estate Investing, Marc joins us to explain why the HelloData team decided to take on asset management.
Marc discusses the weaknesses of traditional revenue management software, describing how HelloData leverages AI to address those problems.
Listen in for Marc’s insight on the potential dangers of AI and learn how HelloData can help you analyze numbers effectively, evaluate your operations and optimize your real estate portfolio!
For full episode show notes visit: https://themichaelblank.com/podcasts/session383/
A multifamily operator in Houston recently lost 3,200 units to foreclosure.
Is that a sign of calamity to come? Or can we learn from their mistakes and ask better questions before we invest in our next syndication?
On this episode of Financial Freedom with Real Estate Investing, I walk you through nine important questions to ask before you invest in your next multifamily syndication.
I explain why not-so-good operators (what I like to call NSGOs) are struggling in the current multifamily market and how to differentiate an NSGO from a capable one.
Listen in to understand why it’s a mistake to sit on the sidelines until the real estate market changes and learn how to find great deals right now for pennies on the dollar!
For full episode show notes visit: https://themichaelblank.com/podcasts/session382/
Caleb Johnson’s mother had just had surgery and was living off savings while she recovered.
But after three months, she wasn’t healed and had to make an impossible decision: Return to work in excruciating pain or prolong retirement by several years.
Inspired to help his mother financially and achieve financial freedom himself, Caleb started investing in real estate at the age of 18.
Today, he is the 25-year-old Founder of Red Sea Capital Group, and Caleb has a $9 million real estate portfolio of 117 units.
On this episode of Financial Freedom with Real Estate Investing, Caleb joins us to explain how he started his real estate journey with a house hack and then partnered to invest in bigger multifamily deals.
Caleb discusses why it was harder to raise money than he thought and challenges newbie investors to have an experienced partner verify our underwriting early on.
Listen in for Caleb’s insight on persevering through roadblocks and learn where to find partners with the capital and knowhow to help you get a deal done—regardless of your age!
For full episode show notes visit: https://themichaelblank.com/podcasts/session381/
So, you’ve got some money set aside to jumpstart your real estate career. What should you invest in?
An apartment building? Mobile home park? Something else?
The answer is no. Don't do any of those things. If you have money to invest, the first thing you should invest in YOURSELF.
John Manfredy has over 30 years of real estate experience as an architect where he was responsible for design, project management and construction supervision for projects budgeted over $500 million.
But when John was laid off during COVID, he transitioned to multifamily investing and development, and today, he serves as Principal at Manifest Multifamily Group.
On this episode of Financial Freedom with Real Estate Investing, John joins us to explain how our mentoring program helped him transition from a W-2 to real estate quickly and avoid mistakes ‘with a lot of zeros behind them.’
John describes how he raised $1.7 million in three days, challenging us to share opportunities with potential investors months in advance and build a team with skills complementary to our own.
Listen in to understand the benefit of sticking with old deals and learn how John reached his real estate goals faster by investing in himself!
For full episode show notes visit: https://themichaelblank.com/podcasts/session380/
Scaling up a multifamily investing business starts with scaling up your capital raise.
And one key strategy for expanding your investor network is to get referrals from friends and family who already invest with you.
But how do you encourage your investors to talk about their experiences? How do you leverage referrals to build momentum in raising money for real estate deals?
Dan Reilly and Greg Danielson are Managing Partners at Measured Capital, a private equity firm that sponsors value-add multifamily investment projects.
Dan and Greg both walked away from lucrative careers for real estate, and since becoming partners in 2022, they have built a portfolio of 500-plus units.
On this episode of Financial Freedom with Real Estate Investing, Dan and Greg join us to explain how they overcame limiting beliefs around talking to brokers and scaling up quickly to build a successful multifamily business.
Dan and Greg discuss their decision to invest in Des Moines and Jacksonville, describing how they’re gaining traction in those markets and dealing with deal flow challenges.
Listen in for Dan and Greg’s approach to raising money from their network and get strategic advice on how to land referrals for investors from friends and family.
For full episode show notes visit: https://themichaelblank.com/podcasts/session379/
You say you want financial freedom. You want to build wealth and have money for extraordinary experiences.
But if you’re doing what everyone else does, if you’re trying to save your way to wealthy, you’re never going to get results.
So, what do you do if the path you’re on doesn’t lead to the outcomes you want?
PJ Ghadimi is a self-made millionaire who’s taken the world of entrepreneurship by storm. He transitioned out of a lucrative but limited career in banking to build several successful businesses, including Exotic Car Hacks and Watch Trading Academy.
Today, PJ is at the forefront of entrepreneurial education, helping aspiring business owners start their own venture and then grow to the next level of success.
On this episode of Financial Freedom with Real Estate Investing, PJ joins us to share his journey from corporate finance to entrepreneurship and explain how he continues to scale his income exponentially.
PJ offers advice on reinventing yourself in order to level up, challenging you to get better at your craft every day and focus on the person you need to become to achieve your financial goals.
Listen in to understand the connection between financial freedom and fulfilling life experiences and get PJ’s practical tips for aligning your financial plan with what you say you want.
For full episode show notes visit: https://themichaelblank.com/podcasts/session378/
The recent foreclosure on 3,200 units in Houston has investors nervous about putting their money in multifamily.
But does that default mean we should all be sitting on the sidelines?
John Casmon argues that investing in apartments is a business, just like any other. And if we avoid the red flags in the Houston deal, we can (and should) continue business as usual.
John is Head of Acquisitions and Investor Relations at Casmon Capital Group, a multifamily investing firm committed to helping busy professionals achieve financial freedom.
John has invested in over $100 million worth of apartments, and he is passionate about consulting with active multifamily investors to help them start or grow their business.
On this episode of Financial Freedom with Real Estate Investing, John joins us to discuss what mistakes the Houston operators made and how to protect yourself from a similar fate.
John explains how he got started with 2- to 4-unit multifamily properties and shares the breakthrough that gave him the confidence to raise money for bigger deals.
Listen in for John’s insight on overcoming low market sentiment and learn why you should still be analyzing deals and looking for opportunities in apartments right now!
For full episode show notes visit: https://themichaelblank.com/podcasts/session377/
You are the average of the five people you spend the most time with.
But what if you don’t want the same life as your current sphere of influence? How do you connect with successful people who will help you level up?
Matt King is CEO of GoBundance, a high-level mastermind group for high-achieving men and women who choose to lead epic lives.
On this episode of Financial Freedom with Real Estate Investing, we revisit Matt’s talk at Deal Maker Live 2023 on the importance of building a powerful sphere of influence.
Matt explains how to leverage the power of our subconscious mind, challenging us to create a five-year vision for our life and choose a peer group that holds us accountable to our goals.
Listen in for Matt’s insight on auditing your current sphere of influence and learn how to deliver value to the people you want in your tribe!
For full episode show notes visit: https://themichaelblank.com/podcasts/session376/
Who is better at raising capital, extroverts or introverts?
You might think extroverts have the advantage when it comes to raising money for real estate deals. But the truth is, introverts can be just as good at sourcing funds.
The secret is to embrace your unique personality and approach networking with investors in a way that leverages your strengths.
Mandy McAllister serves as Managing Member at Good Fortune Capital and CEO of GoBundance Women. Camilla Jeffs is Founder and CEO of Steady Stream Investments and Host of the Quiet Wealth podcast.
On this episode of Financial Freedom with Real Estate Investing, we revisit Mandy and Camilla’s talk at Deal Maker Live 2023 around raising capital based on the strengths of your personality.
Mandy describes what makes her good at raising capital as an extrovert, and Camilla explains how being an introvert helps her build strong one-on-one relationships with LPs.
Listen in for Mandy and Camilla’s top ten tips for networking with investors and learn how to tailor these capital raising techniques to fit your distinct personality!
For full episode show notes visit: https://themichaelblank.com/podcasts/session375/
Those of us with analytical minds tend to be fairly risk averse.
But entrepreneurship requires that we move forward with incomplete information.
So, what can we do to overcome that fear of the unknown and get into our first real estate deal? How do we develop the confidence to figure things out as we go along?
Nicole Gauthier is Founder of Wicked Holdings, a real estate investment community focused on social change and community empowerment.
Nicole was an accountant in the oil and gas industry before transitioning to real estate, and she has a heart for helping busy professionals build generational wealth through multifamily syndications.
On this episode of Financial Freedom with Real Estate Investing, Nicole joins us to discuss how the mantra ‘progress over perfection’ helps her overcome the uncertainty of investing in real estate.
Nicole describes how her education and experience as an LP gave her the confidence to become a multifamily operator and explains how to develop transformational relationships with investors.
Listen in for Nicole’s advice on approaching a potential mentor and learn how to overcome analysis paralysis and take the calculated risks necessary to get into your first real estate deal!
For full episode show notes visit: https://themichaelblank.com/podcasts/session374/
What is the best real estate investing strategy for 2023?
Should you try wholesaling? Or invest in Airbnbs? How about fix-and-flips? Turnkey rentals? Or maybe a multifamily syndication?
On this episode of Financial Freedom with Real Estate Investing, Garrett takes on the role of moderator, and we sit down with some big hitters in the industry to debate the pros and cons of each approach.
Kyle Stanley of The Fearless Investor explains why he likes short-term rentals and Hayato Hori of RocketOffr shares the benefits of wholesaling.
I describe the advantages of apartment building investing, Chris Clothier of REI Nation discusses why he prefers turnkeys, and Henry Washington of BiggerPockets explores the opportunities in fix-and-flips in 2023.
Listen in for insight on the risks and challenges associated with each kind of real estate investing and learn which strategy is the quickest path to financial freedom!
For full episode show notes visit: https://themichaelblank.com/podcasts/session373/
Are you interested in multifamily investing but overwhelmed by the prospect of buying an entire apartment building?
What if you could dip your toe in the water with accessory dwelling units or ADUs?
The ADU strategy involves either converting a SFH into multiple units or building standalone, detached units on a single family lot.
After several years of building ADUs for clients and friends, Derek Sherrell decided to leverage those skills into developing projects that would help him gain financial independence.
Two decades later, Derek is the real estate investor behind That ADU Guy. His platform teaches the strategy to help others earn passive income and address the affordable housing crisis at the same time.
On this episode of Financial Freedom with Real Estate Investing, Derek joins me to discuss the different categories of accessory dwelling units you might consider, convertible ADUs versus standalone, detached units.
Derek walks us through the process for getting permission to build accessory dwelling units, explaining why everyone should consider building an ADU at their primary residence and how to get financing for such a project.
Listen in for Derek’s insight on the profitability of building accessory dwelling units and find out if ADUs are the right steppingstone into YOUR multifamily investing career!
For full episode show notes visit: https://themichaelblank.com/podcasts/session372/
Most aspiring real estate investors struggle with fear.
But the ones who become successful GPs work through their fears with practice.
Mai Duong is Harvard-educated CPA with 25 years of experience in corporate finance and accounting.
She is also on the Executive Team at Sunbelt Equity Group, where she has amassed a portfolio of more than 1,500 multifamily units.
On this episode of Financial Freedom with Real Estate Investing, Mai joins me to explain what she learned as an LP that helped her become a successful active investor.
Mai describes how she dealt with fears around talking to brokers and raising capital with preparation, challenging us to practice underwriting lots of deals and asking questions in a ‘throwaway market.’
Listen in to understand how Mai’s team is finding deals right now and learn how to adjust your underwriting to overcome your fears and invest with confidence!
For full episode show notes visit: https://themichaelblank.com/podcasts/session371/
There are so many ways to invest in real estate. And when you’re first learning about the options, it can get overwhelming.
But the most successful investors niche down to a single strategy, perfect their processes and rinse, repeat to scale.
Kyle Stanley, for example, focuses on short-term rentals, and he has created systems in his business that allow him to work just one or two hours a week!
Kyle is the creator of The Fearless Investor, a platform that helps people learn about the real estate investing game.
He tried several investing strategies before niching down to Airbnb, and nine months in, he was grossing over $25,000 a month!
On this episode of Financial Freedom with Real Estate Investing, Kyle joins Garrett to explain how the short-term rental arbitrage and cohosting models work for aspiring investors who don’t own property themselves.
Kyle shares the mission behind his brand, The Fearless Investor, and challenges aspiring investors to conquer our fears through action.
Listen in for Kyle’s advice on uncovering your real estate investing niche and find out if the short-term rental model is right for you!
For full episode show notes visit: https://themichaelblank.com/podcasts/session370/
How do you make money flipping land?
What are the pros and cons of investing in land deals as opposed to other kinds of real estate?
Jon Jasniak started flipping land in 2016 when he was 23 years’ old and working as an engineer. After 18 months of doing both, he quit his job to go into the land game full time.
In the last seven years, Jon has done 700 deals across 7,000 acres and built an eight-figure land business. And in early 2023, he bought an entire town in West Texas!
On this episode of Financial Freedom with Real Estate Investing, Jon joins Garrett to explain how he buys land under value, leveraging seller financing or private money to get into deals.
Jon discusses how he reduces friction in his business by subdividing land and selling it to average people without a title company, marketing on sites like Facebook Marketplace and Lands of America.
Listen in for Jon’s experience buying Cornudas, Texas, and learn how he is adding value to the town and making money in the process!
For full episode show notes visit: https://themichaelblank.com/podcasts/session369/
In multifamily real estate, we look for opportunities in a given market and then build relationships with the bankers, brokers, and boots on the ground we need to make a deal work.
But what if the business opportunity you identify is in Asia or Latin America? How do you overcome the language barrier and put together the team you need to build a successful company in a foreign country?
Cole Shepherd is Founder and Partner at Legacy Group, an alternative investment firm based in Colombia that focuses on high-quality LATAM businesses that produce outsized returns for investors.
He's an expert in emerging markets and understanding the capital movements of high-net-worth investors.
On this episode of Financial Freedom with Real Estate Investing, Cole joins Garrett to discuss his background in international business and what he learned from working in the ‘professional leagues of capitalism’ overseas.
Cole explains what inspired him to build Legacy Group in Medellin, describing how he started with real estate flips and expanded into commodities, growing Green Coffee Company into Colombia's largest coffee producer.
Listen in for insight on learning the language and culture the place you want to do business and find out how to invest in Green Coffee Company or one of Cole’s other innovative projects at Legacy Group!
For full episode show notes visit: https://themichaelblank.com/podcasts/session368/
Maxwell Nee was drinking an Old Fashioned at a swanky bar in Chicago when he came to appreciate the significant price difference between Macallan 18 and Macallan 12 whisky.
Because it had aged an additional six years, Macallan 18 cost 500% more!
That’s when the lightbulb went off. And Maxwell started looking into wine and whisky as an alternative investment.
Today, Maxwell is Managing Partner at OENO Wine and Whisky Fund, a recession-proof investment fund that leverages the intrinsic value creation in the maturity of fine wine and whisky to earn double-digit returns for investors.
On this episode of Financial Freedom with Real Estate Investing, Maxwell joins Garrett to explain what he looks for in a wine or whisky investment deal and how the assets are aged in a warehouse under the best conditions.
Maxwell shares his strategy for maximizing returns for OENO investors and describes the parallels between investing in wine and whisky and value-add real estate.
Listen in to understand the risks associated with wine and whisky as an alternative investment and find out if investing in Maxwell’s fund is right for you!
For full episode show notes visit: https://themichaelblank.com/podcasts/session367/
Historically, oil and gas operators only give investors the cashflow from wells and keep the land value for themselves.
But King Operating Corporation does things differently, structuring their deals very much like a multifamily syndication.
So, what are the benefits of investing in oil and gas with King Operating? Why is Nighthawk Equity partnering with King to raise money for an energy fund?
Eric Rice is Chief Growth Officer for King Operating, where he oversees investor communications and studies the macro-economic environment and its impact on energy.
On this episode of Financial Freedom with Real Estate Investing, Eric joins Garrett Lynch and Drew Kniffin to explain how his team finds the right locations to drill and why they pick up deals that are overlooked by other operators.
Eric walks us through the tax benefits of investing in energy and describes why investing with King Operating is safer than other oil and gas investments.
Listen in for insight on the returns you might expect from investing in Eric’s fund and learn why NOW is the right time to put your money in an oil and gas portfolio like King Operating.
For full episode show notes visit: https://themichaelblank.com/podcasts/session366/
Are entrepreneurs born or made?
If you ask Chris Naugle, they are created. But to become a successful entrepreneur, you must be willing to take risks. And you can’t conform to someone else’s failed reality.
As a former pro snowboarder, Chris is good at leaping into the unknown. He applied that risk tolerance to business, building 19 companies in 29 years.
Today, Chris is known as America’s #1 Money Mentor. He runs The Money School, hosts Risky Builders on HGTV, and manages tens of millions of dollars in assets in financial services and real estate transactions.
On this episode of Financial Freedom with Real Estate Investing, Chris joins Garrett to explain how he became an entrepreneur at the age of 16 in spite of other people’s opinions.
Chris describes how he navigated challenging times, surviving the dotcom bust, the Great Recession and losing it all in 2014 when the banks said no to a loan and froze his lines of credit.
Listen in for insight into the infinite banking process that turned Chris’ life around and helped him build enough wealth to ‘be the bank’ and invest tens of millions in real estate deals!
For full episode show notes visit: https://themichaelblank.com/podcasts/session365/
Smart investors diversify their portfolios.
And while multifamily real estate is our favorite asset class, we love learning about other alternatives to the stock market.
Artem Milinchuk suggests investing in farmland, an asset class that does well in times of inflation and appreciates over time.
Artem is Founder and Head of Strategy at FarmTogether, a platform that makes it easy for anyone to invest in farmland.
He has 14 years of finance experience in food, agriculture and farmland, serving as CFO at Full Harvest Technologies before building FarmTogether five years ago.
On this episode of Financial Freedom with Real Estate Investing, Artem joins Garrett to explain how FarmTogether syndicates capital online for farmland deals.
Artem discusses why farmland is a relatively safe long-term investment, who manages FarmTogether’s farms and what kind of return his investors can expect on row versus permanent crops.
Listen in for Artem’s insight on the tax benefits of investing in farmland and learn how to leverage the FarmTogether platform to diversify your portfolio with sustainable farmland.
For full episode show notes visit: https://themichaelblank.com/podcasts/session364/
Is your financial advisor really looking out for you?
Many investors question whether their FA has their best interests at heart. But seeking out alternative investments on your own can be scary, especially if the stock market is all you’ve ever known.
So, what can you do to learn more about alternative investments like self-storage, cryptocurrency, ATMs or real estate? And can you achieve financial freedom in just a few years as a passive investor?
Spencer Hilligoss is a former technology executive with a 13-year track record building high performing teams across five companies. He and his wife, Jennifer, achieved financial freedom through passive investing in multifamily and other alternative asset classes.
Today, Spencer serves as Cofounder and CEO of Madison Investing, a platform that helps busy professionals generate passive income through vetted real estate investments.
On this episode of Financial Freedom with Real Estate Investing, Spencer joins Garrett and me to explain how he educated himself around alternative investments like mobile home parks, data centers and multifamily syndications.
Spencer discusses the framework he and Jennifer created to make good investment decisions, describing what they look for in a deal and how they vet an operator.
Listen in for Spencer’s insight on breaking into a new asset class and find out where he sees opportunities for investors in 2023 and beyond!
For full episode show notes visit: https://themichaelblank.com/podcasts/session363/
When I first started raising money for real estate syndications, I had lunch with a prospective investor who was interested but didn’t have the $50,000 minimum it took to get in on the deal.
But then I asked, ‘Do you have an IRA or anything?’ And it turned out he had $500,000 sitting in his retirement account. $500,000 he could use to buy real estate.
So, how do we educate potential investors about the opportunity to invest through a retirement account? What steps can passive investors take to shift money from a 401(k) or IRA into real estate?
Henry Yoshida, CFP, is the Founder and CEO of Rocket Dollar, a web platform that lets people invest tax advantaged retirement monies into private alternative investments.
On this episode of Financial Freedom with Real Estate Investing, Henry joins Garrett and me to explain what alternative investments you can and cannot invest in using 401(k) or IRA money.
Henry walks us through the process of moving retirement money into a self-directed account and describes the differences between traditional custodians and self-directed capable custodians like Rocket Dollar.
Listen in to understand the pros and cons of investing with an IRA versus cash and learn how Rocket Dollar accelerates the process of investing in stock market alternatives like multifamily syndications!
For full episode show notes visit: https://themichaelblank.com/podcasts/session362/
You have all the skills you need to become a successful multifamily investor. But without the right mindset, you’re unlikely to achieve financial freedom.
So, what can aspiring investors do to overcome the limiting beliefs and bad habits that are holding them back?
Faisal Ensaun has coached more than 2,000 entrepreneurs, CEOs, executives and athletes, guiding them to connect with their vision and potential.
Dr. Sheri Fluellen is a psychologist and coach who works exclusively with real estate investors, helping them maximize their life contribution through real estate investing.
Together, Faisal and Sheri are the creators of the Coaching Mastery Community, where they teach other coaches to develop their coaching ability and business practice.
On this episode of Financial Freedom with Real Estate Investing, Faisal and Sheri join Garrett and me to discuss the mindset issues that keep newbie investors stuck, describing how a lack of vision prevents us from achieving our goals.
Sheri offers advice on vetting a coach to find the right one for you, and Faisal explains why you need a someone who’s battled on their own path to success.
Listen in to understand how a coach’s support extends beyond real estate and learn how a high-performance coach can help YOU become a successful investor with an awesome life!
For full episode show notes visit: https://themichaelblank.com/podcasts/session361/
Most of us get into real estate investing because we want to quit our jobs. But Burnie Lund is different.
Though he’s already achieved financial freedom, Burnie has no intention of leaving his ministry work. In fact, he got into multifamily so he could give more to the missions he believes in.
Burnie is a pastor and multifamily real estate investor with a portfolio of 105 units. He focuses on the ‘common man’ as his target market, allowing people to invest as little as $5,000 in his deals.
Burnie is also a former mentoring student of ours and served as the subject of our deal analysis at Deal Maker Bootcamp 2023.
On this episode of Financial Freedom with Real Estate Investing, Burnie joins Garrett and me to explain how a desire to give back fueled his interest in real estate and why he invested in the support of a mentor early on.
Burnie discusses the role his faith plays in running his business and describes how he pitches passive investors by appealing to their sense of stewardship and desire to do good in the world.
Listen in to understand how relationships win real estate deals and get Burnie’s advice on committing and then taking consistent action every day to amplify your impact with real estate!
For full episode show notes visit: https://themichaelblank.com/podcasts/session360/
The name Grant Cardone is synonymous with scale. Each new venture he launches quickly grows 10X bigger than anyone else in the business.
So, what drives that desire to push the boundaries of what’s possible? How might you apply the same principles to scale your real estate syndication business?
Jarrod Glandt is President of Grant Cardone Enterprises, where he has served as Grant’s right-hand man for the last 12 years and helped grow company revenues from $2M in annual sales to well over nine figures.
Jarrod is also Cohost of Young Hustlers, a podcast that offers its millennial audience tips on sales, marketing, money and entrepreneurship.
On this episode of Financial Freedom with Real Estate Investing, Jarrod joins Garrett Lynch and me to give us a look under the hood at Grant Cardone Enterprises.
Jarrod discusses the benefit of building a brand before you raise capital for real estate deals and describes how to apply Cardone Capital’s marketing tactics to your syndication business.
Listen in for insight on creating a culture of accountability on your multifamily team and learn how to leverage what Jarrod calls ‘divine discontentment’ to do the next big thing in your business!
For full episode show notes visit: https://themichaelblank.com/podcasts/session359/
Words hide red flags in a real estate deal. But numbers are the source of truth.
So, what numbers should you be looking at when you evaluate a multifamily deal?
Jason Baik is Managing Principal at Compounding Capital Group and Founder of The Underwriting Lab, a platform that helps aspiring multifamily investors learn a data-driven approach to apartment investing.
An ex-VP of Data Science, Jason left his six-figure corporate career to become a full-time investor before he owned a single property! Two years later, he has built a portfolio of 350 apartment units and seven single family homes.
On this episode of Financial Freedom with Real Estate Investing, Jason joins me to explain how the data pointed him to real estate as the best vehicle for generational wealth and why he transitioned to multifamily investing early on.
Jason discusses how he connected with his business partner at Compounding Capital, describing what makes their partnership work and how they’re adjusting their underwriting right now.
Listen in for insight on how Jason used the Syndicated Deal Analyzer to launch his multifamily career and learn how understanding the numbers helps you analyze risk and make the right decisions for your investing journey!
For full episode show notes visit: https://themichaelblank.com/podcasts/session358/
When Dan Hanford got into multifamily syndications in 2018, he raised $4M. By 2022, he had scaled his capital raise to $294M.
What’s his secret? How did Dan grow his investor database to nearly 1,700 and his portfolio to 4,000+ doors in just five years?
Dan is Managing Partner of PassiveInvesting.com, a real estate investing firm with $1.2B in assets under management based in the Carolinas.
Dan’s syndication company began with a focus on multifamily but has expanded include self-storage, carwashes and hotels.
On this episode of Financial Freedom with Real Estate Investing, Dan sits down with Garrett and me to explain how he worked his way up from passive investor to co-GP to lead syndicator.
Dan discusses how he finds new investors with an online authority platform and grows his team along with his real estate portfolio.
Listen in to understand why Dan is diversifying across asset classes and learn how to scale your capital raise, your team and your portfolio value in just a few short years!
For full episode show notes visit: https://themichaelblank.com/podcasts/session357/
When you’re raising capital for a real estate deal, it’s tempting to pitch potential investors right away.
But if you try to sell a high-net-worth individual before you’ve established trust, your chances of conversion are slim to none.
So, how do you make meaningful connections with HNWIs and build trust in a way that makes them want to invest with you?
Brad Blazar is the creator of Capital School, one of the fastest growing communities for entrepreneurs, business owners and CEOs learning to attract, raise and close high-net-worth investors.
Having raised well over $2 billion for his own businesses, Brad is a sought-after speaker on the subject of raising capital and author of Winning at the Capital Game: Using Other People’s Money to Build Wealth.
On this episode of Financial Freedom with Real Estate Investing, Brad joins me to explain what works in building relationships with high-net-worth individuals, walking us through the steps he takes to establish trust prior to a pitch.
Brad discusses how to stay in contact with potential investors while you’re waiting for a live deal and describes what he’s doing to raise capital in an uncertain economic environment.
Listen in for insight around raising private equity money for real estate deals and learn Brad’s genius strategies for connecting with potential investors—at traditional networking events or a nearby Starbucks!
For full episode show notes visit: https://themichaelblank.com/podcasts/session356/
As with most things, the economy goes through different seasons. And prior to the pandemic, it was red-hot summer in the real estate market.
COVID caused a quick Arctic freeze, but things warmed up again and multifamily prices peaked in March 2022.
Then we skipped fall and landed right in winter.
And while it’s hard to predict how long this season might last, there are things we can do to endure the cold and put ourselves in a position to thrive in the coming spring.
Drew Kniffin serves as Partner at Nighthawk Equity where he manages all aspects of our $300M portfolio, including acquisitions, asset management and raising capital.
Prior to joining Nighthawk, Drew enjoyed a successful career in corporate finance and grew a portfolio of 400 of his own residential units.
On this episode of Financial Freedom with Real Estate Investing, Drew sits down with Garrett and me to discuss the economic trends we’re monitoring closely at Nighthawk and how the team has adjusted to the changing multifamily market.
We explain how rising interest rates are squeezing your average operator and why we expect a flood of opportunities to buy in the next 12 to 18 months.
Listen in to understand why apartments are an excellent investment in an economic winter and get our multifamily market outlook for 2023!
For full episode show notes visit: https://themichaelblank.com/podcasts/session355/
Matthew Amabile had been out of college for a year. He was making decent money at his sales job, but not enough to afford his own place. And he was tired of sleeping on his cousin’s couch.
That’s when Matt started looking into real estate and analyzing deals. Three years later, he’s a 25-year-old millionaire. And he quit his 9-to-5 to travel the world.
So, what gave Matt the confidence to buy his first property? Or build trust with potential investors?
On this episode of Financial Freedom with Real Estate Investing, Matt joins me to explain how he leveraged an FHA loan and a little resourcefulness to house hack his first four-unit building.
Matt describes how his view of networking has changed over time, discussing how he connected with a partner to buy his second and third deals.
Listen in for insight around the tool that gave Matt the confidence to talk to owners and investors and find out why you don’t need money or experience to be successful—as long as you know how to analyze deals!
For full episode show notes visit: https://themichaelblank.com/podcasts/session354/
Are you treating insurance like a commodity?
We made that same mistake early in our syndication journey. But now we look for the best combination of value and quality we can get.
Matthew Sutika is Chief Insurance Officer at Obie, a company working to provide a simple, affordable and transparent insurance experience for landlords and investors.
Matt is an award-winning entrepreneur and business owner in the multifamily and habitational insurance sector. He also invests in real estate and early-stage insurance and tech startups.
On this episode of Financial Freedom with Real Estate Investing, Matt joins me to explore the false beliefs investors have about insurance and explain what coverage decisions to look at with your insurance broker after close.
Matt offers advice on getting insurance costs right in your underwriting, sharing his list of GOTCHAS that drive up premiums for multifamily.
Listen in for Matt’s insight on managing rising insurance costs and find out if Obie Insurance is the right fit for you and your syndication business!
For full episode show notes visit: https://themichaelblank.com/podcasts/session353/
Did you know that there are many parallels between investing in oil and gas and real estate syndications?
Grant Norwood is CEO of Norwood Energy Corp, an oil and gas exploration company out of Southlake, Texas.
Grant’s specialty is recognizing opportunity hotspots in undiscovered areas of the country where his team can operate significantly below the costs of oil giants like Exxon or Chevron.
On this episode of Financial Freedom with Real Estate Investing, Grant joins Garrett to discuss the two kinds of deals Norwood Energy does, investing in new wells or distressed assets.
Grant shares what he does to find off-market deals on wells and walks us through the tax advantages of investing in oil and gas assets.
Listen in for Grant’s insight on financing oil and gas deals and learn the similarities between investing in energy and multifamily syndications.
For full episode show notes visit: https://themichaelblank.com/podcasts/session352/
Mindfulness matters. The more self-aware you become, the better your relationships and the more fulfillment you get out of life.
That’s why I take an entire week off at the end of every year, not to eat bonbons, but to reflect on the past 12 months, celebrate my wins and plan for the future.
On this episode of Financial Freedom with Real Estate Investing, I’m sharing my process for evaluating 2022 and looking ahead to 2023.
I discuss what we achieved at the Michael Blank Brands and Nighthawk Equity in 2022 and explain our goals for the coming year, challenging you to set aims in each of the same 7 areas of your personal and professional life.
Listen in for insight into the multifamily market outlook and get my advice for investors on where to look for opportunities in 2023!
For full episode show notes visit: https://themichaelblank.com/podcasts/session351/
Every week, we bring you conversations with elite investors and entrepreneurs, in hopes that you’ll learn from their experiences to accelerate your success.
On this Best of 2022 edition of Financial Freedom with Real Estate Investing, we reflect on some of our favorite episodes and share the top insights from this year’s interviews with inspiring real estate entrepreneurs.
We revisit Dan Brisse’s story of transitioning from professional snowboarder to full-time real estate investor and Jilliene Helman’s mission to democratize real estate investing.
Lee Prosenjak inspires us to live our purpose, Veena Jetti explains how to raise capital at scale, and Sterling Griffin shares creative ways to add value to high-profile people as you build a network.
Listen in to understand how Alvin ‘Hope’ Johnson is innovating in affordable housing and learn to fast-track your success with advice from ten of our top guests of 2022!
For full episode show notes visit: https://themichaelblank.com/podcasts/session350/
There's a lot of pundits who say that entrepreneurship is about the hustle and grind. We’re supposed to work harder and harder and sacrifice our lives for the sake of the business.
But Mike Michalowicz argues that entrepreneurship is not about doing the job. It’s about creating jobs.
So, how do you remove yourself from the day-to-day operation of your business? Can you get to a point where your syndication firm runs itself?
Mike Michalowicz is a well-known keynote speaker and bestselling author on a mission to eradicate entrepreneurial poverty.
Mike has built four multimillion-dollar companies and exited two. But he has also launched ten failed businesses and lost his fortune twice.
And it is those struggles that inspired Mike to serve other entrepreneurs through books like Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making MachineandClockwork: Design Your Business to Run Itself.
On this episode of Financial Freedom with Real Estate Investing, Mike joins Garrett and me to discuss the premise of Profit First, describing how to prioritize profit by treating it like a business expense.
Mike challenges us to overcome superhero syndrome and take on the role of supervisionary in our business, building a team to handle the day-to-day while we think strategically about growing the company.
Listen in for Mike’s surprising advice on planning a four-week vacation that forces you to put systems in place and empower your people to run the business without you!
For full episode show notes visit: https://themichaelblank.com/podcasts/session349/
How does a schoolteacher overcome her limiting beliefs to become a full-time syndicator?
For Julie Holly, community was key in helping her shift from anxious single-family landlord to self-assured multifamily GP.
Julie is Founder of Three Keys Investments, a multifamily firm committed to helping investors build passive income and legacy wealth. She also serves as Host of The Conscious Investor Podcast.
Julie began her career as a schoolteacher with a portfolio of single-family homes before transitioning to syndications. Today, she’s a passive investor in 300 doors, she's partnered in 68 units and GP for another 120.
On this episode of Financial Freedom with Real Estate Investing, Julie joins me to explain how Arnold Schwarzenegger launched her investing career and what she did to overcome the WHAT IF mindset that held her back early on.
Julie discusses why now is the right time to get into multifamily investing and describes how she is adjusting her underwriting to protect her LPs.
Listen in for Julie’s insight on building confidence through community and get inspired to invest in yourself as you take the next step in YOUR real estate investing journey!
For full episode show notes visit: https://themichaelblank.com/podcasts/session348/
Building a platform is an important part of raising money at scale. But you need more than a website to demonstrate your credibility with potential investors.
Becoming an author gives you authority. It allows you to share your investing thesis with many, many prospects and generate leads as well as referrals.
But what does the process of writing a book look like? And why would you publish yet another real estate book when there are already so many others on the market?
Chandler Bolt is Founder and CEO of Self-Publishing School, a platform that has helped 7,000 entrepreneurs publish books in the last 7 years.
Chandler also serves as host of the Self-Publishing School Podcast and author of six bestselling books. His latest release is called Published: The Proven Path from Blank Page to 100,000 Copies Sold.
On this episode of Financial Freedom with Real Estate Investing, Chandler joins Garrett and me to explain what writing a good book does for your business and how to use a book to build your email list.
Chandler walks us through the eight milestones in the process of writing a quality book and shares his best practices for finishing a rough draft in just 30 days!
Listen in for Chandler’s insight on having a successful book launch and learn how to write a bestseller that attracts potential investors to your real estate syndication business.
For full episode show notes visit: https://themichaelblank.com/podcasts/session347/
How do you become a full-time investor who owns more than 1,000 doors by the age of 27?
According to Adrian Salazar, the secret is having the guts to go out and be different.
Adrian started wholesaling SFHs as a freshman in college and closed on his first apartment building as a sophomore. Today, he is Managing Member at Two Ten Management, and he controls $8.8M in multifamily assets.
On this episode of the podcast, Adrian joins Garrett and me to explain how the sales skills he developed early on help him succeed as a young real estate entrepreneur.
Adrian shares the wholesaling strategies he uses to find off-market deals and describes his approach to building rapport with owners.
Listen in for Adrian’s advice on putting yourself in the right rooms and learn to take action on YOUR real estate investing goals—no matter how young or old you are!
For full episode show notes visit: https://themichaelblank.com/podcasts/session345/
Running a business is never just about the business. Being a successful entrepreneur means finding balance between your personal and professional life.
But if you want your relationship to work, you need a partner who energizes you. Someone who helps you become the best version of yourself.
So, how does a real estate investor build a fulfilling family life? How do you successfully navigate marriage, parenthood and business?
On this episode of Financial Freedom with Real Estate Investing, Garrett sits down with me and my wife Vivian to find out what makes our 25-year marriage work.
Vivian and I explain why we struggled with working on the business together and how we set boundaries around work and family time.
Listen in to understand why we decided to homeschool our kids and learn how we set goals as a family to live intentionally, in alignment with our values!
For full episode show notes visit: https://themichaelblank.com/podcasts/session345/
One of the beautiful things about investing in real estate is its tax benefits. And the 1031 exchange is a common strategy we use to avoid paying capital gains.
But most of us haven’t studied IRC Section 1031 enough to know ALL the ways we can use the tax code to reinvest our real estate profits—rather than handing them over to Uncle Sam.
Dave Foster is the 1031 exchange expert, qualified intermediary and tax strategist behind The 1031 Investor, a platform that helps investors build and preserve real estate wealth.
Dave has supported thousands of investors in achieving financial freedom by maximizing their reinvestment opportunities.
On this episode of Financial Freedom with Real Estate Investing, Dave joins Garrett to discuss the rules for doing a 1031 exchange in a syndication and describe what to look for in a qualified intermediary or QI.
Dave shares his top strategies for buying time in a like-kind exchange and walks us through the tax benefits of converting an investment property into your primary residence.
Listen in to understand the common mistakes investors make in a 1031 exchange and learn how to make the most of the tax code and accelerate your path to financial freedom with real estate!
For full episode show notes visit: https://themichaelblank.com/podcasts/session344/
Owning class D properties in neighborhoods plagued by gang violence, prostitution and drug abuse is not easy.
But it does give an owner-operator the street smarts to keep themselves, their employees and properties safe. And it makes for some pretty crazy stories!
On this episode of Financial Freedom with Real Estate Investing, Garrett follows up on his previous solo episode with more stories from his experience as an investor in Chicago’s most dangerous neighborhoods.
Garrett discusses what he did to prevent theft at vacant multifamily properties and describes how firing a maintenance worker nearly caused a gang war at one of his buildings.
Listen in for the story of how Garrett’s maintenance team caught a killer and find out what it’s like to collect rent at night not too far from Chicago’s infamous O Block.
For full episode show notes visit: https://themichaelblank.com/podcasts/session343/
All CPAs are not created equal. And if you’re working with an accountant who doesn’t understand real estate tax strategy, you may be leaving tens of thousands of dollars on the table. Thomas Castelli, CPA, CFP, is Partner at https://www.therealestatecpa.com/ (Hall CPA), an entrepreneurial accounting firm that helps real estate investors minimize tax and maximize profit. Out of college, Thomas landed a ‘dream job’ at a traditional accounting firm but soon realized he wasn’t on the path to the lifestyle he wanted. To achieve financial freedom, he built a portfolio of passive investments in apartment buildings before participating in his first deal as an active partner. On this episode of Financial Freedom with Real Estate Investing, Thomas joins Garrett and me to discuss why he chose to put his money in multifamily over other investments. Thomas offers a high-level overview of how the taxation of real estate works, explaining who benefits from bonus depreciation and why we can report a loss despite earning substantial cashflow. Listen in for Thomas’ top strategies for deferring capital gains and find out why tax planning is so important for real estate investors! For full episode show notes visit: https://themichaelblank.com/podcasts/session343/ (https://themichaelblank.com/podcasts/session343/)
In the spring of 2020, store shelves were empty. And supply chain issues have disrupted businesses of all kinds ever since—including real estate. But what, exactly, is causing these problems in the supply chain? And when will things get back to normal? Jeff Davis is both a supply chain expert and real estate investor, serving as a senior sales executive for a Fortune 100 global logistics firm and Managing Partner at Bridgestone Holdings, where he has built a portfolio of 952 units. On this episode of Financial Freedom with Real Estate Investing, Jeff joins Garrett and me to explain what is causing our ongoing supply chain issues and why things haven’t normalized since the pandemic. Jeff discusses how rising interest rates impact the supply chain and shares his take on when construction costs might return to pre-COVID levels. Listen in for Jeff’s insight on underwriting deals in the current economic environment and learn how to navigate supply chain concerns as a multifamily investor. For full episode show notes visit: https://themichaelblank.com/podcasts/session342/ (https://themichaelblank.com/podcasts/session342/)
When you’re a new real estate syndicator with a smaller network, you can keep track of investors with a spreadsheet and work through the process of raising money manually. But as you grow your investor database, it becomes more and more tedious to do things this way. The good news is, you can leverage investor management software to automate the process of drafting legal documents and wiring money, saving yourself and your investors a lot of time and trouble. So, how do you choose an investor portal that’s the right fit for you and your syndication business? Perry Zheng is Founder and CEO of https://themichaelblank.com/cashflow/ (Cash Flow Portal), a real estate syndication platform that helps syndicators streamline the process of raising equity, automate operations and attract more investors. Perry began his career as a software engineer, taking on roles at Twitter, Amazon and Lyft. He has also acted as lead sponsor on three apartment syndications, raising $20M to build a portfolio of 850 units. On this episode of Financial Freedom with Real Estate Investing, Perry joins Garrett and me to explain how his frustrations with the process of raising capital inspired the creation of Cash Flow Portal. Perry discusses how GPs and LPs alike benefit from using an investor management platform and describes what differentiates Cash Flow Portal from other syndication software on the market. Listen in for Perry’s insight on vetting investor management software and find out if Cash Flow Portal is the right long-term partner for you! For full episode show notes visit: https://themichaelblank.com/podcasts/session340/ (https://themichaelblank.com/podcasts/session340/)
We all have obstacles in our environment. Obstacles that make it challenging for us to become the real estate entrepreneur we want to be. But too many of us use those obstacles as an excuse. We let what’s in our way stop us from executing on our dreams. https://www.mrjaymorrison.com/ (Jay Morrison), on the other hand, didn’t let obstacles hold him back. And despite growing up in poverty and being a three-time felon, Jay became become a successful real estate investor, TV personality and social activist. Today, Jay serves as Founder and CEO of Jay Morrison Real Estate Partners and Jay Morrison Academy. He has also appeared as a real estate expert on NBC’s Open House New York and the Today Show. On this episode of Financial Freedom with Real Estate Investing, Jay joins Garrett and me to share his journey from drug dealer to real estate entrepreneur, explaining how he made the decision to change his life and what makes him a successful investor. Jay describes his mission to bridge the generational wealth gap and discusses how he set up a fund to promote investing in underserved communities. Listen in for Jay’s insight on taking responsibility for yourself and get inspired to execute on YOUR vision to create wealth and make a positive impact on the world! For full episode show notes visit: https://themichaelblank.com/podcasts/session339/ (https://themichaelblank.com/podcasts/session339/)
No matter what asset class you want to invest in, creativity is key—especially if you don’t have a rich uncle to help you get started! You just have to stop asking yourself, ‘Can I do this?’ And start asking yourself, ‘How can I do this?’ Christian Osgood left his sales job with CoStar Group to become a full-time investor at age 29. And in the last 18 months, he leveraged creative financing to build a portfolio of 95 units. Today, he is Cofounder of https://themultifamilystrategy.com/ (Multifamily Strategy), a platform that helps others achieve financial freedom with real estate and take back control of their lives. On this episode of Financial Freedom with Real Estate Investing, Christian joins Garrett and me to discuss his top creative strategies for buying property, challenging us to think beyond price when we negotiate a deal. Christian walks us through the fundamentals of seller financing, explaining how he introduces himself to property owners and why he focuses on understanding their goals to build a strong relationship. Listen in for Christian’s insight on using Google Maps to ‘drive for dollars’ and learn his formula for finding creative ways to close a real estate deal. For full episode show notes visit: https://themichaelblank.com/podcasts/session338/ (https://themichaelblank.com/podcasts/session338/)
When I got started in multifamily, I was much too hands-off with property managers. Yes, I reviewed the numbers, but otherwise, I stayed away and simply let them manage everything. Then I realized that experienced syndicators are much more actively involved with their property management companies, and we started to build more collaborative relationships. So, where is the sweet spot between too hands-off and too involved? What does a healthy relationship between property managers and ownership groups look like? Nathan Ridgeway is Regional Vice President at https://www.firstcommunities.com/ (First Communities), one of the nation’s most successful property management companies. Founded in 1978, FCM has managed over 200K units in 100K communities, growing their market reach to include Washington DC, Dallas, Austin, Houston, Atlanta, Charlotte and Nashville. On this episode of Financial Freedom with Real Estate Investing, Nathan joins Garrett and me to discuss the relationship between property management companies and ownership groups. Nathan explains what differentiates FCM from other property management companies, describing his team’s approach to building a deep bench in a given market and managing expectations with ownership groups. Listen in for Nathan's advice on vetting a property manager and learn how to strike the right balance between trusting your management team and verifying their performance. For full episode show notes visit: https://themichaelblank.com/podcasts/session337/ (https://themichaelblank.com/podcasts/session337/)
Think you need an Ivy League education or 20 years of experience on Wall Street to set up a fund? Think again! Once you've done a handful of syndications, you can easily launch a fund of your own and simplify the process of raising money for multiple real estate deals. Bridger Pennington is Cofounder and CEO of Fund Launch, an education platform that helps aspiring fund managers launch, build and scale a fund. Fund Launch has served more than 20K students with its hundreds of videos and dozens of downloadable assets. Bridger also serves as Founder of Black Bridge Holdings, where he established multiple funds and facilitated more than 326 transactions across a variety of industries. On this episode of Financial Freedom with Real Estate Investing, Bridger joins Garrett and me to discuss what differentiates a real estate syndication from a fund, describing when it's appropriate to start raising capital through a fund and how the process changes. Bridger walks us through the pros and cons of raising money with a fund, explaining how it allows you to scale your business faster and close on a good deal more quickly. Listen in for Bridger's insight on generating excitement around investing in a fund and find out how to launch a fund of your own and raise a huge pool of capital from investors for real estate deals! For full episode show notes visit: http://www.themichaelblank.com/session336/ (http://www.themichaelblank.com/session336/)
Investor relations is not about selling a deal. It’s about getting to know individual investors and solving their problems. But what does that look like in practice? How do you connect with potential LPs and educate them around the benefits of investing in multifamily syndications? Travis Watts is Director of Investor Education at Ashcroft Capital. He got his start in real estate in 2009, investing in single family and short-term rentals. Travis became a passive investor with Ashcroft several years ago and was so impressed with their performance that he offered to join the Investor Relations Team in 2019. On this episode of Financial Freedom with Real Estate Investing, Travis joins Garrett and me to explain why he transitioned from active investing in single family to passive investing in syndications. Travis describes how he attracts new investors at Ashcroft and walks us through the pros and cons of raising capital through a fund. Listen in for Travis’ best practices for taking care of investors and learn how to serve your LPs and solve their problems to grow your syndication business. For full episode show notes visit: http://www.themichaelblank.com/session335/ (http://www.themichaelblank.com/session335/)
Proximity is power. But how do you get in front of successful people when you're struggling yourself?
Sterling Griffin was homeless when he made the decision to surround himself with the people he wanted to become. Then he found creative ways to add value so they'd want to be friends.
And in just two years, Sterling went from living in his Honda Accord to making $1.68M.
Today, Sterling serves as Founder of Life Changer Academy and Sterling Capital, a real estate firm that provides high-net-worth individuals with access to tax-advantaged investments.
On this episode of Financial Freedom with Real Estate Investing, Sterling joins cohost Garrett Lynch to share his journey to becoming a millionaire, explaining how he borrowed money and sold his car to invest in a mentor and why he's committed to inspiring others to see more for themselves too.
Sterling describes his transition from fitness trainer to business coach to real estate investor, discussing his decision to focus on triple net lease investing and the tax advantages of accelerated depreciation.
Listen in for Sterling's insight on finding the right people to learn from and learn creative ways to add value to high-profile people who will help you grow to the next level of success!
For full episode show notes visit:
http://www.themichaelblank.com/session334/
The lack of affordable housing is a big problem in the US. And most developers shy away from these projects because it’s hard to make money.
But Alvin ‘Hope’ Johnson is not most developers. He’s found a way to innovate in the affordable housing space and ‘do good while doing good.’
Alvin is President of the Hope Housing Foundation, a nonprofit positioned to be one of the country’s most effective affordable workforce housing organizations.
He also serves as CEO of Multifamily Monopoly, an education platform for real estate developers interested in the process of multifamily development and ownership.
On this episode of Financial Freedom with Real Estate Investing, Alvin joins Garrett and me to discuss his journey from painting houses to $225M multifamily entrepreneur and describe the tenacity it took to find a mentor in the space.
Alvin shares his successes in affordable housing so far, explaining how he’s turning neighborhoods around, building sustainable workforce housing developments, and making a profit in the process.
Listen in for Alvin’s insight on pursuing a mission-driven business and learn how to leverage innovation to make money building naturally occurring affordable housing.
For full episode show notes visit:
http://www.themichaelblank.com/session333/
As real estate investors, we spend years building up generational wealth. But a single lawsuit can tear it all down.
So, how do we put the right asset protection measures in place?
Garrett Sutton is the corporate attorney and asset protection expert behind Corporate Direct, a firm that helps entrepreneurs and investors protect their assets, maintain their privacy and achieve their financial goals.
Garrett is also one of Robert Kiyosaki’s Rich Dad Advisors and the bestselling author of several books, including his new release, Veil Not Fail: Protecting Your Personal Assets from Business Attacks.
On this episode of Financial Freedom with Real Estate Investing, Garrett joins cohost Garrett Lynch and me to explain why asset protection is crucial for real estate investors at all levels.
Garrett discusses why an LLC is the best way for syndicators and apartment owners to structure a business and walks us through the most common mistakes people make when it comes to asset protection.
Listen in for Garrett’s advice on what insurance you need as a real estate investor and learn what steps you can take to protect both your personal assets and property from lawsuits.
For full episode show notes visit:
http://www.themichaelblank.com/session332/
For 20 years, Adam Mitchell has been dreaming of a multifamily portfolio. But without the confidence or the know-how to invest in apartments, he started with single family.
A decade ago, Adam joined forces with his friend Lance Doty, and they became the Home Buying Guys, scaling a successful single family investing business that runs on autopilot.
But in 2021, Adam took action on his vision of moving into the multifamily space and invited Lance to join him in the transition. They became the Apartment Buying Guys, and within 35 days, they had 225 units under contract.
In just 10 months, Adam and Lance have raised over $2M and acquired 731 units. Both have achieved financial freedom, and they are well on their way to the goal of 1,000 doors in five years.
On this episode of Financial Freedom with Real Estate Investing, Adam and Lance join Garrett and me to explain why it took them so long to make the move to multifamily and how they overcame their lack of experience to break into the space.
Adam and Lance discuss the value of hiring a mentor, describing how they might have accelerated their journey by getting support sooner and why they’re focusing on scale from Day One.
Listen in for insight on what makes Lance and Adam’s partnership work and learn how to make the leap from single family to apartment building investing—and achieve financial freedom in three years or less!
For full episode show notes visit:
http://www.themichaelblank.com/session331/
When we started investing in multifamily, we relied on property managers to handle construction.
As the business grew, we hired GCs to run construction projects with little oversight on our part. And got very mixed results.
That’s when we realized that if we wanted to scale our multifamily portfolio, we needed an in-house team. But how do you build a construction arm for your real estate business?
Jorge Abreu is Cofounder and CEO of Elevate Commercial Investment Group, a multifamily firm based in Dallas, Texas, and Founder of JNT Construction, the in-house construction arm of Elevate CIG.
With 15 years of experience in real estate, Jorge has acquired a portfolio of nearly 7,000 units worth more than $500M.
On this episode of Financial Freedom with Real Estate Investing, Jorge explains why he started his own construction company and how JNT gives Elevate a competitive advantage.
Jorge walks us through the process he used to build an in-house construction business, describing what he looks for in a project manager and how he leverages software to hold the team accountable.
Listen in for Jorge’s insight on the importance of construction contracts and learn how an in-house construction team can help YOU scale your syndication business!
For full episode show notes visit:
http://www.themichaelblank.com/session330/
Not everyone who wants to be a real estate investor sticks with it long enough to be successful. But if you apply a sales mindset to multifamily investing, you will be able to take the initial rejection and keep pushing.
Because as Eric Chadderdon says, ‘The only time you lose in this business is if you quit.’
Eric is Managing Partner at Gibby’s Capital Investments, a boutique firm that helps investors diversify their portfolios with commercial real estate. He got into multifamily in December of 2020 and has amassed a portfolio of 724 units in just 18 months!
Prior to founding Gibby’s, Eric spent 12 years in the sales industry, and he leverages the skills he learned there to build relationships in the multifamily space.
On this episode of Financial Freedom with Real Estate Investing, Eric joins Garrett and me to explain why he quit his W-2 job after his first multifamily deal and explore how the skills he learned in sales translate to real estate.
Eric discusses what he did to build relational capital in the real estate space, challenging us to put ourselves in the right rooms and add value any way we can—without asking for compensation.
Listen in for Eric’s insight on underwriting in an uncertain market environment and learn how a sales mindset can help YOU scale a multifamily portfolio and quit your 9-to-5 with real estate!
For full episode show notes visit:
http://www.themichaelblank.com/session329/
According to the mainstream media, the sky is falling in the real estate market.
But is that entirely true?
While no one can predict exactly what will happen in the global economy or how it might impact real estate, Robert Helms is a student of the markets. And he can tell us how to prepare for the change that’s coming our way.
Robert is Founder and Host of the top-rated Real Estate Guys Radio Show. He has 18 years of experience working in a real estate brokerage with his dad, Bob ‘the Godfather of Real Estate’ Helms, and has been involved in development projects worth more than $300M.
On this episode of Financial Freedom with Real Estate Investing, we're sharing the replay of Robert’s talk at Deal Maker Live, where he explains why the mainstream media doesn’t get the real estate markets right and why investors like us need to pay attention anyway.
Robert walks us through a SWOT analysis of the real estate market, describing the current opportunities and threats to multifamily investors.
Listen in for Robert’s insight around the purchasing power of the US dollar and learn how apartment building investors like YOU can prepare for a fundamental change to the economy and thrive regardless of the circumstances!
For full episode show notes visit:
http://www.themichaelblank.com/session328/
There aren't a lot of women in the real estate investing business, in part because there are so few female role models.
But if you can see it, you can be it.
So, we brought together a panel of powerhouse women entrepreneurs this past June at Deal Maker Live to share their experiences and encourage other aspiring investors, men and women alike.
Our panelists included Savannah Arroyo, Founder and CEO of Networth Nurse, Julie Holly, Founder of Three Keys Investments and Host of The Conscious Investor Podcast, Veena Jetti, Founding Partner at Vive Funds, and Liz Faircloth, Cofounder of the DeRosa Group and Cocreator of The Real Estate InvestHER Community.
On this episode of Financial Freedom with Real Estate Investing, we're sharing the replay of the Women in Real Estate panel discussion from Deal Maker Live, exploring some of the biggest obstacles Savannah, Julie, Holly and Liz faced as entrepreneurs and what they did to overcome those challenges and become successful multifamily investors.
Our panelists discuss how to create work-life balance as a woman in real estate, offering advice around creating a support system and getting on the same page with your partner.
Listen in for insight into the surprising skills you need to be an effective entrepreneur and get Savannah, Julie, Holly and Liz’s advice on the mindset you need to build a thriving real estate investing business!
For full episode show notes visit:
http://www.themichaelblank.com/session327/
Real estate investing is a critical part of a diversified portfolio. And while most Americans have easy access to stocks and bonds, most don't know where to go to find private real estate deals.
That’s what inspired Founder and CEO Jilliene Helman to create Realty Mogul, a crowdfunding platform committed to democratizing real estate.
Jilliene’s background in banking exposed her to brokers, real estate lenders and trust officers, giving her a 360-degree view of wealth management—and a comprehensive understanding of the real estate market.
On this episode of Financial Freedom with Real Estate Investing, Jilliene joins Garrett and me to discuss the challenges she faced early on in building Realty Mogul and describe what inspired her to persevere through 103 coffee meetings before she found a backer!
Jilliene explains how the Realty Mogul marketplace differs from traditional syndication and explores the pros and cons of investing in individual deals versus real estate investment trusts (REITs) on the site.
Listen in for Jilliene’s thoughtful outlook on the current real estate market and get her advice for investing in the right opportunities during an economic downturn.
For full episode show notes visit:
http://www.themichaelblank.com/session326/
What does the future of real estate look like?
If you ask Ryan Pineda, the future of real estate is digital. And he sees the potential to build multiple billion-dollar businesses that solve many of the problems we face—on the blockchain.
Ryan began his real estate career in 2010, and since then, he’s flipped hundreds of single-family homes, purchased hundreds of rentals and founded six multimillion-dollar businesses in the space.
In 2020, he went all-in on social media and amassed 1.5M followers teaching people how to build wealth and achieve financial freedom. Ryan is also working on a new NFT project called Tykes, a community for the pioneers of digital real estate.
On this episode of Financial Freedom with Real Estate Investing, Ryan joins Garrett Lynch to discuss his SOP for starting a new business and describe what makes his real estate companies so resilient.
Ryan shares the worst-case scenario thinking that helps him identify single points of failure and explains how removing yourself from day-to-day operations and cross-training your people mitigates risk.
Listen in for insight into the issues the blockchain can solve for real estate investors and learn how to be part of Ryan’s new NFT project and digital real estate mastermind!
For full episode show notes visit:
http://www.themichaelblank.com/session325/
Growing a successful real estate business means growing a solid team. But many entrepreneur-investors struggle with hiring and don’t spend enough time developing key leadership skills.
So, what makes for a successful leader in the multifamily business? How do you decide what to delegate, communicate the vision for your business and help the people on your team excel?
Known as the CEO Whisperer, Cameron Herold is Founder of the COO Alliance and Second in Command Podcast, a coaching practice and training platform that helps C-suite leaders double their revenue in three years or less.
Cameron is well-known for engineering 1-800-GOT-JUNK?’s growth from $2M to $106M in revenue in just six years as COO. He is also the bestselling author of Vivid Vision: A Remarkable Tool for Aligning Your Business Around a Shared Vision of the Future.
On this episode of Financial Freedom with Real Estate Investing, Cameron joins cohost Garrett Lynch and me to explain what makes a successful leader, describing how a vivid vision helps leaders focus on the right opportunities and communicate with their team.
Cameron shares the activity inventory he uses to help leaders learn to delegate, challenging us to offload anything that’s outside our genius and free up our time for revenue-generating activities.
Listen in for Cameron’s insight on creating personal development plans for the individuals on your investing team and learn his FOCUS x FAITH x EFFORT formula for success!
For full episode show notes visit: http://www.themichaelblank.com/session324/
Are you struggling to do your first real estate deal? Is there an aspect of the multifamily business that’s taking a long time to master on your own?
What if you stopped asking HOW and started asking WHO? Who is already good at this? And can they teach me?
Sam Kwak is one half of the real estate duo and YouTube sensation known as The Kwak Brothers. Based in Chicago, Sam and his brother Daniel hold a portfolio worth just over $4.5M.
Beyond investing in multifamily, Sam leverages his background in marketing and technology to help property managers automate their business.
On this episode of Financial Freedom with Real Estate Investing, Sam joins host Garrett Lynch to explain how volunteering to work for free with a local investor served as a shortcut to his success.
Sam describes how he leverages an online platform to raise money for real estate deals, discussing why the focus of his content has changed and how hiring a high-level consultant grew his YouTube channel from 108K to 260K subscribers in just four months.
Listen in for Sam’s insight on navigating challenges in a business partnership and learn how to accelerate your real estate career by investing in a mentor or coach—and then applying that knowledge to get further, faster!
For full episode show notes visit: http://www.themichaelblank.com/session323/
When was the last time you reviewed your due diligence process?
Too many real estate investors are so eager to do a deal that they cut corners on due diligence and hope for the best. But a robust due diligence checklist is essential to your success.
Jake Harris uses his superpower of methodically sorting through data to make real-world decisions on real estate, and his private equity firm has acquired more than $200M in assets in the last five years alone.
Jake is extremely detail-oriented in conducting due diligence, and he shares that expertise in his new book, Catching Knives: A Guide to Investing in Distressed Commercial Real Estate.
On this episode of Financial Freedom with Real Estate Investing, Jake joins cohost Garrett Lynch and me to discuss how he hit rock bottom during the recession and describe his transition from single family flips to commercial real estate.
Jake explores how to use deep knowledge of a given real estate market to your advantage and explains how due diligence can uncover significant downside risk in a commercial deal.
Listen in for Jake’s no-stone-unturned approach to due diligence and learn how to decide when a deal is worth the risk—and when to walk away.
For full episode show notes visit: http://www.themichaelblank.com/session322/
Most new multifamily investors focus on deal flow. We know that capital flow is important, but we figure we can rely on friends and family to fund our first few deals. But eventually, the money runs out. So, if you want to scale a real estate business, you’ve got to grow your sphere of potential investors. And the easiest way to do that is through an online thought leadership platform.
Brian Wagers raised capital for his first 361 units simply by talking to people one-on-one. And then he realized that to achieve scale, he needed to pay more attention to marketing.
Brian is Founder of Wagers Capital, a real estate investing firm with $4.1M in multifamily assets. To date, Brian has built a portfolio of 447 units in his home state of Arkansas and another 125 in Texas.
On this episode of Financial Freedom with Real Estate Investing, Brian joins cohost Garrett Lynch and me to share the steps he took to get into multifamily and explain how live events helped him see the possibilities of growing a multimillion-dollar portfolio.
Brian walks us through the steps he took to build an online thought leadership platform, describing how his social media presence and podcast appearances attract new investors to Wagers Capital.
Listen in to understand how Brian leveraged my Platform Builders Workshop to build out his marketing systems and learn how to scale YOUR syndication business by focusing on deal flow and capital flow at the same time!
For full episode show notes visit: http://www.themichaelblank.com/session321/
Why would a real estate investor want to share content on social media?
Yes, we can build relationships with other investors and raise capital without Instagram or YouTube. But social platforms help us maintain those real-life connections and make tens of thousands of others!
So, how can we use social media to crush it in real estate?
Lili Thompson was playing with the Harlem Globetrotters when COVID hit. Stuck at home with nothing to do, Lili learned about wholesaling and decided to try it—and document the process on social media.
Today, Lili is one of the rising stars in the real estate space, and she has 148K subscribers on YouTube.
On this episode of Financial Freedom with Real Estate Investing, Lili joins cohost Garrett Lynch and me to discuss how she benefits from sharing her real estate journey on YouTube, describing the connections she’s made with other beginners and experienced investors alike.
Lili offers insight into how she built an audience on social media and explains why it’s important to produce content consistently.
Listen in to understand why Lili is shifting into the multifamily space (using my Syndicated Deal Analyzer) and take the first steps to creating a thought leadership platform of your own, no matter where you are in your real estate journey!
For full episode show notes visit: http://www.themichaelblank.com/session320/
What’s stopping you from doing your first multifamily deal? Whatever your perceived weakness may be, you can overcome it and achieve the same kind of success in commercial real estate that you’ve had in other areas of your life. English is Jonathan Wei’s second language and he’s a quiet, introverted guy. And yet, he’s raised millions of dollars for real estate syndication deals. What’s his secret?
Jonathan serves as Cofounder and CEO of Greystone Capital Group, a commercial real estate firm that focuses on multifamily and self-storage assets. He left a successful career as a CPA to become a full-time investor, quitting his job in February 2022.
On this episode of Financial Freedom with Real Estate Investing, Jonathan joins cohost Garrett Lynch and me to share his fears around raising capital, explaining how he got comfortable talking to brokers and investors with the help of a mentor.
Jonathan discusses how the connections he made at Deal Maker Live led to JV partnerships that helped him build a portfolio of 500 multifamily units and another 500 in self-storage.
Listen in for Jonathan’s insight on overcoming limiting beliefs by leveraging prior personal and professional successes—and applying the same work ethic to real estate!
For full episode show notes visit: http://www.themichaelblank.com/session319/
Before you invest with a multifamily operator, it’s important to understand their track record. To know that they’ve got experience overcoming obstacles and making a deal work. Prior to joining our team at Nighthawk Equity, podcast cohost Garrett Lynch owned and operated a class D real estate portfolio on the south side of Chicago. And learned how to solve problems on a life-or-death level in the process.
On this episode of Financial Freedom with Real Estate Investing, Garrett is flying solo, discussing how he acquired 300 properties in six months and describing some of the challenges he faced managing assets in crime-ridden neighborhoods.
Garrett shares his experience owning and operating a 381-unit, class D apartment building in Memphis, walking us through the steps he took to end gang violence onsite and increase occupancy to 90%.
Listen in for Garrett’s insight around the pros and cons of investing in class D properties and find out what he learned about problem-solving in a high-stakes situation that he brings to the team at Nighthawk!
For full episode show notes visit: http://www.themichaelblank.com/session318/
A 2017 Forbes headline reads, ‘Median Wealth of Black and Latino Families Could Hit Zero by the Middle of the Century.’
That hit home for Puerto Rican-born Duamel Vellon. And he’s made it his mission to raise awareness in his community, making multifamily investors out of his friends and peers.
Duamel Vellon is Cofounder of Ten15 Capital, a multifamily investment firm with assets in Florida, Georgia and the Carolinas. A former engineer in the theme park industry, Duamel quit his job in December of 2021 to be a full-time investor, and he currently manages a 203-unit portfolio.
On this episode of Financial Freedom with Real Estate Investing, Duamel joins cohost Garrett Lynch and me to share the ‘chess versus checkers’ mindset that helped him transition from flipping to multifamily.
Duamel describes his grassroots approach to raising capital, discussing how he grows his network and educates potential investors before he has a live deal.
Listen in for insight on Duamel’s mission to serve the Black and Latino communities and learn his uncommon strategy for ensuring regular deal flow.
For full episode show notes visit: http://www.themichaelblank.com/session317/
If you finance a multifamily syndication through Fannie Mae or Freddie Mac, you’re securing non-recourse debt with a fixed interest rate. But if you want to exit anytime sooner than the loan expiration date, you're going to pay a BIG penalty on the back end.
So, how might we leverage credit unions to avoid these big-ticket prepayment penalties? Are there other benefits to financing real estate deals through a credit union? What’s the downside?
Mark Ritter is CEO of Member Business Financial Services or MBFS, a business lending credit service organization owned by credit unions for credit unions and their members. An expert in credit unions and business lending, Mark is dedicated to helping commercial real estate investors secure the financing they need.
On this episode of Financial Freedom with Real Estate Investing, Mark joins cohost Garrett Lynch and me to explore the pros and cons of financing multifamily through a credit union versus traditional loans.
Mark describes the credit union philosophy of people helping people, discussing how real estate investors benefit from having a personal relationship with our lender.
Listen in for Mark’s advice on how to approach a credit union for a loan and learn about the flexible terms and low cost of capital available if you finance your next deal through an organization like MBFS!
For full episode show notes visit: http://www.themichaelblank.com/session316/
A career as a professional athlete is exciting, and if you’re among the best, you can make a lot of money in a short amount of time. But what do you do when your career is over?
Dan Brisse was a professional snowboarder for over a decade, participating in the X Games four times and winning gold twice. But he noticed that older pros were suffering as their careers wound down, struggling financially and in their personal lives.
And that inspired Dan to make his money work for him with multifamily real estate.
Today, Dan is the cofounder of Granite Towers Equity Group, cohost of the Keeping It Real Estate Podcast and coauthor of 4 Steps to Successful Passive Investing. He and his partner, Mike, are GPs in 1,414 units worth $74M across five states, and he owns another 589 units as a passive investor.
On this episode of Financial Freedom with Real Estate Investing, Dan joins cohost Garrett Lynch and me to discuss his transition from snowboarding to real estate and describe the steps he took to become a multifamily investor.
Dan explains how his investing strategy has evolved over time, encouraging us to seek out a high-level mentor early on and avoid shiny object syndrome.
Listen in for insight around the values alignment that makes Dan and Mike’s partnership work and learn how to make the leap from YOUR current career to full-time real estate investing.
For full episode show notes visit: http://www.themichaelblank.com/session315/
Why do you do what you do? Articulating the WHY behind your work gives it meaning. And makes for a richer, more fulfilling life.
But how do you uncover your purpose and then apply it each day?
Lee Prosenjak is a serial entrepreneur and executive coach at LynchPyn. He's worked with thousands of entrepreneurs in 30-plus countries, cultivating cohesive work groups and facilitating conversations that truly matter.
An artist at heart, Lee is also the Cofounder of Cherry Creek Dance, former Igniter at Simon Sinek Consulting and current real estate investor on a mission to help others discover their own inspiration, love and greatness.
On this episode of Financial Freedom with Real Estate Investing, Lee joins host Garrett Lynch to discuss his WHY and describe how clarity of purpose leads to better decision-making.
Lee explores the relationship between purpose and identity, sharing the experience that inspired him to play BIGGER and expand his influence beyond Cherry Creek Dance.
Listen in for Lee’s insight around being open to new opportunities and find out how he is living his purpose as the owner of a boutique hotel in the Bahamas!
For full episode show notes visit: http://www.themichaelblank.com/session314/
Imagine earning cash-on-cash returns as high as 50%!
Inspired by sophisticated real estate investors in her network, Steffany Boldrini moved her money out of tech startups and into commercial properties three years ago.
And while she’s faced a lot of challenges along the way, Steffany reached financial freedom in less than two years.
So, what is Steffany’s approach to investing in real estate? And what does she do to earn such big-time returns?
Steffany moved from Brazil to Silicon Valley 20 years ago and enjoyed a successful career in tech sales before shifting her focus to commercial real estate. As Principal at Monte Carlo Real Estate Investments, she has built a portfolio across three asset classes, achieving 36% cash-on-cash returns.
Steffany is also the host of Commercial Real Estate Investing from A-Z, a podcast about investing in retail, office, industrial and self-storage properties.
On this episode of Financial Freedom with Real Estate Investing, Steffany joins host Garrett Lynch to discuss her transition from angel investing to real estate, describing why she likes the risk profile of commercial properties over tech startups.
Steffany shares her approach to building a commercial real estate portfolio, explaining the pros and cons of investing in car washes, self-storage and short-term rentals.
Listen in to understand how Steffany leverages technology in her real estate business and get ideas for adding value to force appreciation—in any commercial asset class.
For full episode show notes visit: http://www.themichaelblank.com/session313/
When you work a traditional job, your ability to feed your family can be taken away from you at any moment. And your worth is determined by your employer.
But what if YOU can determine your own worth? What if you can earn enough passive income from real estate to walk away from your J-O-B and be your own boss?
Dustin Heiner is the creator of Master Passive Income, a platform and podcast where he shares insights on investing in real estate rental properties.
Getting laid off from his 9-to-5 inspired Dustin to pursue investing, and by 2016, Dustin had built a portfolio of 30 properties and quit his job in IT, becoming what he calls 'successfully unemployed.'
On this episode of Financial Freedom with Real Estate Investing, Dustin joins Garrett Lynch and me to discuss what he loves about passive income and share some of the mistakes he made with his first few investments.
Dustin explains why it's important to build your business first, challenging you to look for markets with good inventory and put a team in place BEFORE you buy properties.
Listen in for Dustin's insight on leveraging real estate to leave a legacy and find out how a mentor can support YOU in becoming successfully unemployed—like Dustin!
For full episode show notes visit: http://www.themichaelblank.com/session312/
Are you confused by cryptocurrency, the blockchain or NFTs? As real estate investors, we’re all about wealth creation and owning physical assets as a hedge against inflation. But what about digital assets?
Is it worth investing in cryptocurrencies like Bitcoin? What is blockchain technology all about? And how can it change the world for the better?
Matthew Diemer is a small business entrepreneur and host of the Decrypt Daily Podcast. Prior to Decrypt Daily, he founded Crypto 101 and held the titles of COO and GM in the global hospitality industry. Matthew is also a Democrat running for Congress in Northeast Ohio dedicated to supporting entrepreneurship, promoting tech innovation and reviving manufacturing in the US.
On this episode of Financial Freedom with Real Estate Investing, Matthew joins host Garrett Lynch and me to discuss the benefits of blockchain technology, describing what makes crypto a good investment vehicle and why Bitcoin is a strong hedge against inflation.
Matthew explains how crypto allows us to control our own wealth and what we can do to keep our digital currency outside government control.
Listen in for Matthew’s insight into buying digital real estate and learn how the blockchain can be used to create wealth by tokenizing properties.
For full episode show notes visit: http://www.themichaelblank.com/session311/
Most entrepreneurs believe that we are the secret sauce in our business. We think that no one else can bake the cupcakes or design the websites or analyze the real estate deals quite the way we do. But if you’re busy building the product, who’s building the business? This is what Curtis Morley calls the entrepreneur’s paradox: In order to scale, you've got to shift your passion from working IN the business to working ON the business. Curtis is the five-time entrepreneur, mentor and thought leader behind The Entrepreneur’s Paradox, a platform dedicated to helping startup companies achieve next-level growth. Curtis has been named Entrepreneur of the Year and made the Inc. 5000 list six times. He is also the bestselling author of The Entrepreneur’s Paradox: How to Overcome the 16 Pitfalls Along the Startup Journey.
On this episode of Financial Freedom with Real Estate Investing, Curtis joins host Garrett Lynch to explain the entrepreneur’s paradox, challenging us to shift from the role of product manager to business leader and achieve the next level of growth.
Curtis shares his concept of counterfeit emotions, describing how to turn fear into power with a simple shift from WHAT IF to WHAT IS thinking.
Listen in for Curtis’ four-step success formula for entrepreneurs and learn how to make the mindset shift you need to scale YOUR real estate syndication business.
Key Takeaways How Curtis defines the entrepreneur’s paradox
- What got you into business prevents you from succeeding
- ‘If you’re building the product, who’s building the business?’
The first steps to becoming a business leader
- Make decision to replace yourself as product manager
- Identify and document your processes, teach to others
Curtis’ 3 summits you can climb as an entrepreneur
- Lifestyle business
- Buy or be bought
- IPO
Curtis’ 4-step success formula for entrepreneurs
- How much
- By when
- For what
- And why
Curtis’ advice for deciding what’s next after an exit
- Stay committed to your WHY
- Must have purpose, make contribution
Curtis’ concept of counterfeit emotions
- Every authentic emotion has counterfeit (e.g.: faith vs. fear)
- Authentic emotions connect, while counterfeit disconnect
How to transform your FEAR into POWER
- Change WHAT IF into WHAT IS
- Brings you back to present and creates energy
How Curtis uncovered the idea of counterfeit emotions
- Pain = gift to help us grow, suffering steeped in blame/shame
- Surrender to pain and turn it into something positive
Connect with Curtis Morley The Entrepreneur’s Paradox
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Financial Freedom with Real Estate Investing by Michael Blank
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Podcast Show Notes
In aerospace engineering, ‘escape velocity’ is the amount of power a rocket needs to break free of the Earth’s gravitational field. And if you ask Jonathan and Paula Nichols, launching a real estate syndication business is no different.
It takes a tremendous amount of effort up front to do your first deal. You have to commit to the outcome and do whatever it takes to persevere through setbacks and disappointment. But once you’ve picked up momentum and closed on your first apartment building, the next deals follow in quick, almost automatic succession.
Jonathan and Paula are the cofounders of Apogee Capital, a multifamily firm dedicated to helping investors reach their financial potential. The Nichols closed on three deals in the last year, raising $2.7M as they built a portfolio of 200 units, and Jonathan quit his job as an aerospace engineer six weeks ago to pursue real estate full time.
On this episode of Financial Freedom with Real Estate Investing, Jonathan and Paula join cohost Garrett Lynch and me to discuss the sacrifices they made to make time for real estate while they both worked full-time corporate jobs.
Jonathan and Paula walk us through the steps they took to get started in multifamily syndication, describing how they got on the same page as a couple and started networking with potential partners.
Listen in for insight on reframing a lost deal as a learning opportunity and learn how to stay the course in tough times and keep taking action—until YOUR investing business takes off!
Key Takeaways How Jonathan and Paula got into real estate
- Rich Dad... inspired to lease first home, buy fourplex
- Realized multifamily was only way to scale
How real estate evolved into a business for the Nichols
- Started as way to diversify investments
- Saw unlimited possibilities once they gained traction
How Jonathan and Paula got on the same page
- Both wanted to build legacy
- Saw real estate as potential family business
The steps Jonathan and Paula took to get started investing
- Dreaming about financial freedom
- Getting educated (mentorship program)
- Networking to shift mindset
- Taking consistent action to build confidence
How Jonathan and Paula made time for real estate
- Say no to fun activities on nights and weekends
- Make sacrifices to reach ‘escape velocity’
Jonathan and Paula’s first multifamily deal
- Co-GPs on 100-unit deal in Tulsa, Oklahoma
- Brought in as boots on ground in market
How Jonathan and Paula met their partners
- Develop relationship through networking events
- Brought them deal that didn’t work out
Jonathan and Paula’s big setback 5 months ago
- Actual financial records didn’t match originals
- Discouraging but consider it learning opportunity
How Jonathan and Paula raised $700K for their first deal
- Saw value in being flexible enough to learn new skills
- Leveraged relationships from W-2 jobs, real estate
What’s ahead for Jonathan and Paula in the next 2 years
- Actively looking for new deals, talking to investors
- Executing on business plan of existing deals
Jonathan and Paula’s plan to scale
- Network with potential partners
- Outsource and automate parts of business
- Increase capacity to do larger deals
Jonathan and Paula’s advice for aspiring investors
- Take consistent action on daily basis
- Don’t get discouraged in tough times
- Dream BIG and don’t limit yourself
Connect with Jonathan & Paula Nichols Apogee Capital
Jonathan on LinkedIn
Resources Get Tickets for Deal Maker Live
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Join the Nighthawk Equity Investor Club
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Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
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Dream Big: Know What You Want, Why You Want It, and What You’re Going to Do About It by Bob Goff
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Podcast Show Notes
Multifamily real estate is a big game. And if you want to scale quickly, you can’t do it alone.
That’s how Patrick Grimes went from 0 to 1,200-plus units in under two years.
He partnered with a senior operator to go further faster, leveraging his partner’s expertise to build a $250M portfolio in a very short time.
But how did he get an experienced investor to invite him into a deal?
Patrick is the Founder and CEO of Invest on Main Street and contributor to the #1 Amazon bestseller Persistence, Pivots and Game Changers: Turning Challenges Into Opportunities. Patrick also runs Protomation Systems, a consulting business that contracts with machine design firms to conceptualize, design and build custom manufacturing automation and robotic systems.
On this episode of Financial Freedom with Real Estate Investing, Patrick joins cohost Garrett Lynch and me to explain how he brought value to an experienced operator to get into his first multifamily deal.
Patrick shares his experience with the Law of the First Deal, describing how his role on the team shifted as his portfolio grew.
Listen in for Patrick’s insight on mitigating the risks of multifamily investing and find out why partnering up is the best way to scale your business and get on the fast track to financial freedom!
Key Takeaways How Patrick got into real estate investing
- First employer suggested keeping money in real estate
- Looking for investment vehicle other than stock market
How Patrick’s investing strategy changed after 2008
- Focus shifted to legacy and improving quality of life
- Scale with multifamily, partner to accelerate growth
How Patrick got his wife involved in real estate investing
- Invited to do Michael’s Ultimate Guide... course
- Now she creates passive investor educational content
The steps Patrick took to get his first multifamily deal
- Underwrite and bring live deals to senior operator
- Network and build relationships with brokers
How Patrick justifies the risk associated with multifamily
- Right team in place and experienced partners
- Low-leveraged debt in less volatile markets
Patrick’s pivot away from deal finder into other roles
- Drawn into existing deal by senior operator
- Add value through due diligence, operations, etc.
Patrick’s experience with the Law of the First Deal
- Started raising capital through engineering network
- 2nd and 3rd deals in quick succession (KP on $200M)
Why Patrick chose the 506(c) option
- Used to accredited investors, $100K minimums
- Allows him to market deals online
The biggest challenge Patrick is facing as he scales
- Get name out there as real estate investor
- Demo thought leadership on podcasts and in writing
Patrick’s advice for aspiring multifamily investors
- Partner up to accelerate your growth
- Find where your skills fit and bring value
Connect with Patrick Grimes Invest on Main Street
Patrick on Forbes
Schedule a Call with Patrick
Resources Get Tickets for Deal Maker Live
Buy Michael’s Ultimate Guide to Apartment Building Investing
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Access Michael’s Free Resources in the Freedom Vault
Review the Podcast on iTunes
Financial Freedom with Real Estate Investing by Michael Blank
Persistence, Pivots and Game Changers: Turning Challenges into Opportunities by Patrick Grimes et al.
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Podcast Show Notes
Real estate has always had tax advantages, but in recent years, the deal got even sweeter for multifamily investors.
So, how do we write off depreciation? What is a cost segregation study and how can it save us even more?
Heidi Henderson serves as Executive Vice President at Engineered Tax Services, the nation’s leading tax credit and incentives firm. As an experienced tax consultant and real estate investor herself, Heidi specializes in the application of tax efficiencies to multifamily investments.
On this episode of the podcast, Heidi joins cohost Garrett Lynch and me to share the unique tax advantages of real estate and explain why the US government incentivizes multifamily investors.
Heidi describes how to take advantage of BONUS depreciation (provided for by the 2017 Tax Cuts and Jobs Act) by conducting a detailed cost segregation analysis.
Listen in for Heidi’s insight on determining the ROI of a cost seg study and find out how YOU can save tens of thousands of dollars with the magic of accelerated depreciation!
Key Takeaways The unique tax advantages of real estate
- Depreciate value of real estate over 27½ years
- Bonus depreciation through ‘cost seg’ analysis
Why the government incentivizes real estate investors
- Consumerism drives economy
- Encourages improvements to infrastructure
What depreciation is and how it works
- Deducting cost of asset over its ‘useful life’
- Reduces taxable income for investor
Why you should claim bonus depreciation right away
- Must be done year property is purchased
- Inventory breakdown helps plan renovations
How to take advantage of accelerated depreciation
- Conduct cost segregation study
- Itemize deductions (e.g.: carpet, windows, etc.)
What to look for in a company that does cost seg
- Can vary from 2 to 150 pages
- Ask for copy of redacted study to compare
How to determine your ROI on a cost seg analysis
- Based on taxable income, percentage of tax paid
- Subtract cost of analysis
The limitations on taxable income for passive investors
- Depreciation offsets real estate income only
- Does not offset income from W-2 job
Why we should cash in on bonus depreciation now
- TCJA passed 100% bonus depreciation
- Drops to 80% in 2023, 60% in 2024
Connect with Heidi Henderson Engineered Tax Services
Heidi on LinkedIn
Email hhenderson@engineeredtaxservices.com
Call (801) 564-4464
Resources Get Tickets for Deal Maker Live
Learn More About Michael’s Mentoring Program
Download Michael’s Free Report—What's the Best Investment: The Stock Market or Real Estate?
Join the Nighthawk Equity Investor Club
Access Michael’s Free Resources in the Freedom Vault
Review the Podcast on iTunes
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Podcast Show Notes
When you’re doing your first multifamily deal, scaling the business is the last thing on your mind. But if you don’t think about scale early on and come up with a plan, you’ll be fighting fires as you grow.
So, how do you create a vision for what your syndication business will look like in the future and then proactively put systems in place that allow you to scale up with ease?
Veena Jetti is the Founding Partner of Vive Funds, a unique multifamily firm that specializes in curating conservative opportunities for real estate investors. Veena has built a portfolio of 3,000-plus units worth $600M, and she shares her expertise as a frequent speaker, panelist and guest on various media outlets.
On this episode of Financial Freedom with Real Estate Investing, Veena joins cohost Garrett Lynch and me to explain how raising capital at a high level allows her to scale and describe how every decision is made with the investor in mind.
Veena shares her success with investor retention and referrals, discussing why she offers investors the option to put their money in a fund or invest in direct offerings.
Listen in for insight on how Veena uses her time as partner at a big-time investment firm and get her advice on creating workflows that make it easy to scale your multifamily syndication business!
Key Takeaways What inspired Veena’s interest in scaling a real estate business
- Mom was successful investor, taught solid work ethic
- Enjoys bigger safety net than immigrant parents
How Veena and her sister/business partner use their time
- Strategy re: acquisitions, capital and legal structure
- Continue to take investor-facing calls
Why Veena’s had success raising capital at a high level
- All decisions made with investor in mind
- High investor retention rate and referrals
Why Veena offers investors a fund OR direct offering option
- Fund satisfies demand for diversification, set + forget
- Surprised to find that some investors want to do both
How Veena raises $30M in 42 days
- Raise money when don’t have deal on table
- $100K minimum for individual deals
Veena’s experience with institutional investors
- Build relationships with family funds
- Have Plan B in case drop out last minute
What Veena is doing to enhance the way she raises capital
- Rebrand with investor in mind
- Add technology to make process smoother
Veena’s biggest challenges right now
- Letting go of taking investor calls
- Implementing new tech at pace she wants
Veena’s advice to her younger self
- Invest in systems and processes out of gate
- Consider scale from first deal
How Veena thinks about deal flow
- Wants to do more but very competitive right now
- Prefers 1 or 2 great deals over 6 okay deals
How Veena’s definition of success has changed over time
- Used to be based on net worth and income
- Now focused on setting example for kids
Connect with Veena Jetti Vive Funds
Vive Funds on Facebook
Vive Funds on Instagram
Veena on Twitter
Veena on TikTok
Resources Get Tickets for Deal Maker Live
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Access Michael’s Free Resources in the Freedom Vault
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Financial Freedom with Real Estate Investing by Michael Blank
The Art of the Deal by Donald J. Trump
Grant Cardone
Brian Burke
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Podcast Show Notes
At the age of 18, Alex Mandaro is the youngest mentoring student we’ve ever had at the Michael Blank organization. So, we’re doing a grand experiment and asking Alex to document his journey! In a reality-style series broadcast through our social media channels, Alex will share a behind-the-scenes look at the life and times of a new syndicator.
On this episode of Financial Freedom with Real Estate Investing, Alex joins me to explain what inspired his interest in multifamily and why he believes he’ll be successful.
He discusses why he used his college money to invest in mentoring, describing how he is getting the most out of our program and learning from the mistakes of others.
Listen in for insight on following Alex’s journey with us to find out if you really can be a successful syndicator without experience or cash of your own!
Key Takeaways What inspired Alex’s interest in real estate
- Always wanted to have business, likes people
- Read Financial Freedom with Real Estate Investing
What makes Alex believe he can be successful
- Less baggage at age 18
- Raised to believe he can do anything he wants
Why Alex chose real estate over college
- Not sure what major he wanted to pursue
- Can still meet new people and live on his own
How Alex’s friends and family reacted to his decision
- Other friends not going to college
- Parents very supportive
The first steps Alex is taking to pursue multifamily
- Devote time to learning and networking
- Look for partner to ‘get bigger deal done faster’
Why Alex invested in our mentoring program
- Wants someone to push him
- Make fewer mistakes
Alex’s personal WHY statement
- Lead others to freedom
- Positively impact others
How Alex is getting the most out of mentorship
- Plan next steps each week
- Go into conversations with investors prepared
How Alex thinks about getting through bad days
- Purpose keeps pushing forward
- Consistency is what matters
Why Alex agreed to document his journey with us
- Help teach and inspire others
- Holds him accountable
Alex’s concerns with sharing his journey on social
- Pressure to do deal in certain time frame
- Doesn’t want to let people down
Connect with Alex Mandaro Follow Alex’s Journey on Instagram
Follow Alex’s Journey on TikTok
Follow Alex’s Journey on YouTube
Resources Access Michael’s Free Resources in the Freedom Vault
Learn More About Michael’s Mentoring Program
Review the Podcast on iTunes
Financial Freedom with Real Estate Investing by Michael Blank
Rich Dad Poor Dad by Robert T. Kiyosaki
Grant Cardone on Financial Freedom with Real Estate Investing EP188
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Podcast Show Notes
Using renewable energy to power a multifamily property is not just for environmentalists anymore.
As the political environment shifts, going green doesn’t just make the world a better place. It’s also highly profitable.
John Matheson is Managing Member and Sustainable Building Consultant at J. Healy Development, where he has developed an expertise in helping multifamily operators increase profits through renewable energy and ecofriendly building methods.
He also serves as Cofounder and CEO of Leverage Finance Software, a platform that supports property investors in making smarter and more informed lender financing decisions.
On this episode of Financial Freedom with Real Estate Investing, John joins cohost Garrett Lynch and me to explain how he adds value to a property with rooftop or on-the-ground solar power.
He describes the benefits of partnering with a solar developer and discusses the financial incentives associated with installing renewable energy across a multifamily portfolio.
Listen in for insight on planning for panel maintenance and learn how to add a revenue stream to your multifamily business in 6 to 18 months with solar energy!
Key Takeaways How John creates inventory as a permitting specialist
- Build relationships in individual municipalities
- Build to rent or flip permits to big developers
How John adds value to a property with solar power
- Lease rooftop or land to solar developer
- Supply power to building, sell residual to grid
How renewable energy credits or RECs work
- Tenants pay less per kilowatt hour for energy
- State pays multifamily operator as incentive
The benefits of partnering with a solar developer
- Federal tax credit of 26% to 30% for installation
- Take advantage of renewable energy lenders
What factors to consider as you plan to install solar
- Build in cost of panel maintenance
- Must remove panels to renovate roof
The timeline for installing rooftop or ground solar
- Smaller system, faster it goes
- 6 to 18 months to cashflow
How renewable energy attracts tenants
- Mention sustainability in marketing
- Certain kind of tenant will pay more
Connect with John Matheson Healy Development
Leverage Finance Software
Resources Access Michael’s Free Resources in the Freedom Vault
Be a Part of Michael’s Deal Maker’s Mastermind
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
Review the Podcast on iTunes
Financial Freedom with Real Estate Investing by Michael Blank
Federal Solar Tax Credit
Build Back Better
eConserve Multifamily Water Conservation Solutions
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Podcast Show Notes
Can you be successful in real estate investing and successful at a demanding job at the same time?
Andrew Schutsky serves as the CIO of a $700M medical technology company. He also happens to be the founder of multifamily syndication firm Redline Equity and host of The Crushing Cashflow Podcast.
Andrew has 14 years of real estate rental experience but didn’t enter the multifamily space until last year. Since then, he has built a portfolio of 1100 units!
On this episode of Financial Freedom with Real Estate Investing, Andrew joins cohost Garrett Lynch and me to explain how he built a real estate business while working an executive level W-2 job.
He describes how he networked into his first deal and offers advice on finding a partner who complements your strengths.
Listen in for insight on the strategy of time budgeting and find out how Andrew is making time for his family, his full-time job and financial freedom.
Key Takeaways What inspired Andrew’s interest in real estate
- Want to make best use of money
- Realized could replace income later
Andrew’s shift to multifamily
- Came across blog of local syndicator
- Networked into first deal
Andrew’s advice on finding a partner
- Share criteria, e.g.: 50- to 125-unit deals
- Align objectives and values
How Andrew balances real estate with his W-2
- Devote 15 to 20 hours/week
- Work in 5 to 7AM window
Andrew’s strategy of time budgeting
- Decide how to spend time, audit often
- Break down to align with goals
How Andrew makes time for his family
- Sacred window from 7 to 9PM
- Wife holds accountable if off track
Andrew’s morning routine
- Read 20 pages or listen to podcast
- Meditation or 15-minute workout
How Andrew stays on track to reach his goals
- Join/create accountability groups
- Post goals and track progress
How Andrew thinks about his W-2 job
- Can't control what will happen
- Option to exit in 2 years
What financial freedom means to Andrew
- Cover expenses with passive income
- Spend 40 on family and passions
Andrew’s advice to aspiring investors
- Find fun in chaos
- Be ruthless in how invest time
- Focus on your strengths
Connect with Andrew Schutsky Redline Equity
Redline Equity on LinkedIn
Redline Equity on Facebook
The Crushing Cashflow Podcast
Crushing Cashflow on LinkedIn
Crushing Cashflow on Facebook
Andrew on LinkedIn
Email andrew@investwithredline.com
Resources Access Michael’s Free Resources in the Freedom Vault
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on iTunes [Text CONTEST to 66866]
Financial Freedom with Real Estate Investing by Michael Blank
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Podcast Show Notes
It’s a common misconception in multifamily investing that you have to start small. But Chris Roberts looked beyond his first deal to envision a multimillion-dollar real estate business. He accelerated his success by thinking BIG from the beginning, acquiring nearly 1,000 units worth $69M in just three years. So, what’s the secret to scaling fast the way Chris did? Chris is the Founder and CEO of Sterling Rhino Capital, where he specializes in commercial debt, managing financials and investor relations. A full-time entrepreneur and investor since 2007, Chris started his real estate career by renovating, flipping and renting dozens of single-family properties. But after attending one of our events, Chris shifted his focus to helping people create cashflow by investing in larger apartment buildings of 100 units or more.
On this episode of Financial Freedom with Real Estate Investing, Chris joins cohost Garrett Lynch and me to share the process he used to scale quickly and achieve financial freedom. He explains why finding the right partner was key in growing Sterling Rhino and describes his team's make-it-personal approach to finding deals and raising money. Listen in for Chris’ insight on investing in mentorship and find out what it takes to build a BIG real estate investing business—in very little time.
Key Takeaways What inspired Chris to invest in multifamily real estate
- Motivated by money at first
- Passive cashflow = freedom
The mindset shift that propelled Chris into action
- Realized one person’s decision could change future
- Would much rather control own destiny
The process Chris used to scale quickly
- Take massive action
- Invest in tools, mentors for support
Chris’ transition from sales and marketing to multifamily
- Already people person, love business planning
- Had to overcome fears and bring on team
How Chris and his business partner divide roles
- Paul excels at numbers, analytics and systems
- Chris focuses on investor relations
Chris’ approach to deal flow and raising money
- Set yourself apart by ‘making it personal’
- Create frictionless process of doing business
What Chris is doing to handle scaling quickly
- Software to manage assets and team
- Grow team
Chris’ advice on how to scale fast in multifamily
- Don’t be afraid to partner
- Join programs for tools, guidance and networking
Connect with Chris Roberts Sterling Rhino Capital
Sterling Rhino on YouTube
Sterling Rhino on Facebook
Sterling Rhino on LinkedIn
Charging Forward Podcast
Resources Get Tickets for Deal Maker Bootcamp
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Register for the Deal Maker Certification Program
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Review the Podcast on iTunes [Text CONTEST to 66866]
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Apartment Investor Network Facebook Group
Podcast Show Notes
In a culture with an aversion to failure, learning something new is scary. So, what is the best way to build new skills? How much information do you need before you start doing? And how do you keep moving forward when it gets hard?
Real Estate Investor and Developer Jerome Maldonado got his start in direct sales and built a six-figure network marketing business in his mid-20’s. He leveraged those skills in team building and sales mastery to pivot into real estate and construction. Today, Jerome runs an eight-figure empire, and he is currently focused on land development and multifamily investing.
On this episode of Financial Freedom with Real Estate Investing, Jerome joins cohost Garrett Lynch and me to share his blueprint for getting into a new business and offer advice on how to stick with something when it gets hard. He explains how he developed such a strong work ethic, describing how he built a successful construction business and what inspired his pivot to buying land. Listen in for insight on minimizing risk as a land developer and learn Jerome’s secret to developing new skills as an entrepreneur and real estate investor!
Key Takeaways How Jerome developed a strong work ethic
- Parents set example growing up
- Learned from competitive sports
What skills most contribute to Jerome’s success
- Consistency
- Stay focused through difficult times
Jerome’s advice on sticking with something
- Have faith in what you’re doing
- Press yourself in multiple ways
How Jerome built a successful construction business
- Helped brother-in-law take over crew
- Leveraged sales experience to win big bids
What inspired Jerome’s pivot to buying land
- Met developer at construction site
- Not afraid to ask questions about business
Jerome’s blueprint for getting into a new business
- Take time to get educate yourself
- Be a DOER (but be methodical)
Jerome’s reduce-the-risk approach to land development
- Work through entitlements during due diligence
- Ready to start immediately once land acquired
How to learn more about land development
- Surround yourself with right people
- Inundate yourself with material
- Give up equity to veteran partner on first deal
Connect with Jerome Maldonado Jerome’s Website
Jerome on Twitter
Jerome on Instagram
Jerome on Facebook
Jerome on YouTube
Resources Get Tickets for Deal Maker Bootcamp
Download Michael’s Special Report—What's the Best Investment: The Stock Market or Real Estate?
Review the Podcast on iTunes [Text CONTEST to 66866]
Access Michael’s Free Resources at the Freedom Vault
Learn More About Michael’s Mentoring Program
Financial Freedom with Real Estate Investing by Michael Blank
Tai Lopez
Grant Cardone on Financial Freedom with Real Estate Investing EP188
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Podcast Show Notes
We had some inspiring guests on the podcast in 2021, all with their own particular interest or expertise around achieving financial freedom. But the one thing they all have in common is the powerful combination of hard work and passion it takes to achieve next-level success.
So, what were some of the highlights from our interviews this past year? What are my top takeaways from the entrepreneurs and real estate investors who appeared on the show?
On this episode, I’m sharing the Best of 2021 on Financial Freedom with Real Estate Investing, beginning with Jordan Harbinger’s insight on building relationships BEFORE you need them and Brandon Turner’s simple approach to developing your personal brand.
We revisit John Lee Dumas’ dynamic formula for becoming a person of value, Joe Fairless’ perspective on raising capital through a fund and Chad Williams’ thoughts on applying Navy SEAL principles to your multifamily business.
Listen in as we look back at Liz Faircloth’s commitment to building the Real Estate InvestHER community, Jenny Gou’s experience of leaving her high-paying corporate job for real estate, and Ronan McMahon’s understanding of opportunities to invest internationally!
Key Takeaways Jordan Harbinger’s proactive approach to networking
- ‘Dig the well before you’re thirsty’
- Don’t wait until you need something to reach out
Brandon Turner’s insight on building a personal brand
- Consider how people already think about you
- Lean into what you’re good at (simplicity is key)
John Lee Dumas’ take on what it takes to be successful
- Hard work + passion wins every time
- We develop passion for things we’re good at
Liz Faircloth's passion for the Real Estate InvestHER community
- Support women investors, provide role models
- Thrive better in marriage to have own business
Joe Fairless’ insight on raising capital through a fund
- Con = miss out on ‘lightning in a bottle’
- Pro = spread out capital raise over time
Chad Williams’ take on applying SEAL principles to multifamily
- Control emotions regardless of circumstances
- Take on role of servant leader
Jenny Gou’s experience of quitting her job for real estate
- Inspired by desire to prioritize time with family
- Left corporate job, grew to 800 units in 10 months
Ronan McMahon’s insight on investing internationally
- Big buying moment always happening somewhere
- Identify places with significant upside potential
Resources Register for Michael’s Deal Maker Bootcamp
Access Michael’s Deal Maker Certification
Join the Deal Maker Mastermind
Learn More About Michael’s Mentoring Program
Get Your Tickets for Deal Maker Live
Download Free Resources from The Freedom Vault
Review the Podcast on iTunes [Text ‘contest’ to 66866]
Financial Freedom with Real Estate Investing by Michael Blank
Dig Your Well Before You’re Thirsty: The Only Networking Book You’ll Ever Need by Harvey Mackay
GoBundance
BiggerPockets
Dave Meyer’s Data Deli on Instagram
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
One of the best things you can do for yourself at the end of each year is take time to reflect on what you’ve learned and achieved. Celebrate your wins and apply the lessons learned as you plan for the year to come.
On this solo episode of Financial Freedom with Real Estate Investing, I reflect on 2021 through the lens of our core values here at the Michael Blank brands, sharing what I’ve learned about making intentional decisions based on what’s really important to you.
I discuss some of the milestones we’ve achieved in the last year, celebrating the launch of our Deal Maker Certification program and the three deals we closed through our investing arm, Nighthawk Equity.
Listen in for insight into the market outlook for multifamily in 2022 and find out what we’ve got planned for the new year—and how YOU can be part of our mission to help 1,000 families achieve financial freedom in the next five years!
Key Takeaways The benefit of examining your core values
- Focus on what’s important and make decisions accordingly
- Align with right partners, team members and community
Our core values here at The Michael Blank brands
- Do what you say
- Do your best
- Make a difference
- Get stuff done
The Michael Blank brands milestones for 2021
- Onboard several new team members
- Host Deal Maker Live (first in-person event since COVID)
- 1,000 reviews of book on Amazon
- Launch Deal Maker Certification
- Mentoring students close 1 deal/ week
- Consolidate free resources at The Freedom Vault
Our podcast milestones in 2021
- Rebrand to better reflect mission
- Surpassed 3M downloads
- Notable guests (Jordan Harbinger, David Meltzer, etc.)
Nighthawk Equity milestones for 2021
- Closed 3 deals totaling 491 units, $90M
- Built social media presence on LinkedIn and Instagram
- Completed value-add renovations at 3 properties
My top lessons learned in 2021
- Know core values and be intentional
- Surround self with quality partners
The Michael Blank brands plan for 2022
- Help 1,000 families become financially free in next 5 years
- Build out Deal Maker Journey programs
- Expand team and introduce new faces/voices
Why we believe multifamily will continue to do well in 2022
- Millennials prefer to rent rather than own
- Opportunities to increase value of assets
Why multifamily prices are likely go up in 2022
- Growing inflation and higher incomes
- Ongoing low interest rates, demand for affordable housing
My advice on creating an intentional plan for 2022
- Reflect on what worked and what didn’t in last year
- Write vivid vision and plan goals accordingly
- Get clear on what financial freedom means to you
Resources Get Your Tickets for Deal Maker Live
Access Michael’s Deal Maker Certification
Learn More About Michael’s Mentoring Program
Download Free Resources from The Freedom Vault
Join the Nighthawk Equity Investor Club
Register for Michael’s Deal Maker Bootcamp
Join the Deal Maker Mastermind
Review the Podcast on iTunes
Uganda Counseling and Support Services
Syndicated Deal Analyzer
The Core Value Equation: A Framework to Drive Results, Create Limitless Scale and Win the War for Talent by Darius Mirshahzadeh
Core Values on Financial Freedom with Real Estate Investing EP292
Navy SEAL Chad Williams
Financial Freedom with Real Estate Investing by Michael Blank
Nighthawk Equity on LinkedIn
Nighthawk Equity on Instagram
RIch Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (by 8AM) by Hal Elrod
Vivid Vision: A Remarkable Tool for Aligning Your Business Around a Shared Vision of the Future by Cameron Herold
Five Minute Journal App
The State of Multifamily on Financial Freedom with Real Estate Investing EP283
Consumer Price Index
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
The more truth you put to any problem, the easier it is to solve. So, if you want to quit your W-2 job, start by doing the math. Because once you know how much you need to cover your living expenses, it’s just a matter of building your multifamily portfolio step by step until you achieve financial freedom.
Mandy McAllister is Managing Member of Good Fortune Capital and Cofounder of the Aspiring Women Achieving More community. After years of chasing a commission, Mandy retired from her 9-to-5 in medical device sales to pursue multifamily investing full time. Today, she’s on a mission to help others define their own path to financial freedom.
On this episode of Financial Freedom with Real Estate Investing, Mandy joins cohost Garrett Lynch and me to share her take on the different levels of financial freedom, describing how she calculated her freedom number—and achieved it 12 months later. She explains why she started small, working her way up to large multifamily properties acquired in joint venture partnerships. Listen in for Mandy's insight on securing debt to match your business plan and learn how to leverage multifamily investing to break free of YOUR golden handcuffs and live a life by design!
Key Takeaways When Mandy started thinking about quitting her job
- Bought fourplex when son was born as college fund
- Saw potential to retire on cashflow with more deals
Mandy’s take on the different levels of financial freedom
- Cover minimum living expenses
- Cover current living expenses
- Replace income
- Replace income plus buffer
How Mandy financed her multifamily deals
- Use equity in other properties for deals < 20 units
- Took on partners in JV structures for > 50 units
How to decide whether to start small or go big right away
- Depends on individual goals
- Advantages to going larger
What Mandy looks for in a multifamily deal
- B class asset with quality long-term debt
- Size agnostic (less competition for 50-unit deals)
What Mandy looks for in a joint venture partnership
- Someone on same page who you can trust
- Important to have different strengths
Why Mandy sees long-term debt as the ultimate flexibility
- 15-year loan on recent 53-unit acquisition
- Terms allow for 3 potential exit strategies
What Mandy is doing to ensure consistent deal flow
- Network with young, hungry investors at Meetup
- Potential JVs look for deals that fit her criteria
Where Mandy is looking to invest right now
- Strong growth markets in Midwest
- Drive there and back before dinner
How COVID influenced Mandy’s decision to quit her job
- Did 4 transaction in 3 months with extra time
- Brought in double W-2 income
What Mandy is looking forward to moving forward
- Impact as many lives as possible
- Help others remove golden handcuffs
Connect with Mandy McAllister Mandy’s Website
Good Fortune Capital
Aspiring Women Achieving More
Mandy on Instagram
Mandy on Facebook
Mandy on YouTube
Mandy on LinkedIn
Resources Get Tickets for Deal Maker Bootcamp
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Rocket Fuel: The One Essential Combination That Will Get You More of What You Want from Your Business by Gino Wickman and Mark C. Winters
Mint
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Podcast Show Notes
What will make you happy? Yes, money gives us the freedom to retire early and spend our days on a beach somewhere. But it doesn't take long to realize that a fulfilling life requires purpose and meaning. That the end goal is not success but significance.
Bestselling author and Top 100 Business Coach David Meltzer is the cofounder of Sports 1 Marketing and former CEO of Leigh Steinberg Sports & Entertainment, the agency that inspired the film Jerry Maguire. David is also the executive producer of the television series 2 Minute Drill and Office Hours and host of The Playbook Podcast. His life’s mission is to empower one billion people to be happy.
On this episode of Financial Freedom with Real Estate Investing, David joins cohost Garrett Lynch and me to explain what he learned from his biggest failure, describing the abundance mindset he used to bounce back from losing $100M. He shares his daily habits for achieving success and fulfillment, challenging us to adopt an attitude of gratitude and prioritize what really matters. Listen in for David's insight on reframing failure and learn to engage in the consistent, persistent pursuit of YOUR greatest potential!
Key Takeaways What David learned from losing $100M and going bankrupt
- When you appreciate what you have, it grows
- More than enough of everything for everyone
David’s quest to empower over 1B people with happiness
- Teach gratitude, forgiveness and accountability
- Help people prioritize and apply their WHY
David’s daily habits for achieving next-level success
- Take daily inventory of what you want
- Know your what, who and how
- Know your now (priorities, non-negotiables)
- Clear any interference between you & God
Why David builds his calendar around 5-minute coaching
- Leads to productivity, accessibility and gratitude
- Prioritize discussion around what really matters
How David’s definition of success has changed over time
- Used to be defined by bank account
- Now consistent, persistent pursuit of potential
Connect with David Meltzer David’s Website
Email david@dmeltzer.com
The Playbook Podcast
Resources Review the Podcast on Apple [Text CONTEST to 66866]
Learn More About Michael’s Mentoring Program
Get Tickets for Deal Maker Bootcamp
Join Michael’s Deal Maker Certification Program
Uganda Counseling and Support Services
Financial Freedom with Real Estate Investing by Michael Blank
2 Minute Drill
Office Hours with David Meltzer
Game-Time Decision Making: High-Scoring Business Strategies from the Biggest Name in Sports by David Meltzer
Connected to Goodness: Manifest Everything You Desire in Business and Life by David Meltzer with Harrison Lebowitz
Bob Proctor
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Podcast Show Notes
How do you get brokers to take you seriously if you’re brand new to multifamily? Savannah Arroyo and her husband Lupe talked to 50 brokers before they found one who was willing to work with them. But that relationship led to three deals in nine months, allowing Savannah to quit her full-time job as an RN!
Savannah is the Founder of Networth Nurse, a platform designed to help healthcare professionals stop living paycheck to paycheck. Through the Networth Nurse blog and YouTube channel, she educates and empowers her colleagues around personal finance and multifamily investing. Savannah and her husband Lupe leveraged the Michael Blank Mentoring Program to accelerate their success, partnering with other students in our network to close three syndications and replace her income as a nurse in under a year.
On this episode of Financial Freedom with Real Estate Investing, Savannah joins cohost Garrett Lynch and me to explain how she got that first broker to take her seriously. She describes how she and Lupe created a five-year game plan for their real estate business and then put in the reps, taking daily action to realize that vision. Listen in to understand the benefits of investing in your multifamily education and learn how Savannah is scaling her portfolio through partnerships and the Networth Nurse platform.
Key Takeaways The freedom of choice real estate gives Savannah
- Still works as RN when she wants
- Very involved in children’s lives
What inspired Savannah and her husband to pursue real estate
- Way to invest that puts money in pockets now
- Strategy to grow wealth, earn passive income
How Savannah and Lupe came up with a real estate game plan
- Set vision for 5 years out and worked backward
- Got educated and invested in coaching
How Savannah got started with single family rentals
- Lender told about $100K of equity in home
- Used debt to buy income-producing assets
Why Savannah transitioned from SFH rentals to multifamily
- Realized scale necessary to achieve vision
- Healthcare operations skill set translates to apartments
How Savannah pursued real estate while working full time
- Work on real estate from 8 to 12pm every day
- Built-in accountability partner in husband
How Savannah overcame limiting beliefs around raising money
- Trusted with leadership role at work
- Mitigate risk with research and underwriting
How to get brokers to take you seriously as a new investor
- Be specific about what you’re looking for
- Provide feedback on deals within 48 hours
Savannah’s first multifamily deal
- $1M 12-unit in Oregon financed through credit union
- Struggled to raise $350K from friends and family
Why Savannah decided to invest in coaching
- Leverage mentor’s experience to avoid mistakes
- Momentum to get into first deal much quicker
What Savannah is doing to scale the business
- Partner with other investors to raise capital
- Build online platform with Networth Nurse
How Savannah and her husband share responsibilities
- Husband does acquisitions and asset management
- Savannah raises capital and does marketing
Savannah’s advice for aspiring multifamily investors
- Reach out to someone doing what you want
- Research and get educated with podcasts, networking
Connect with Savannah Arroyo Networth Nurse
Networth Nurse on YouTube
Networth Nurse on Instagram
Networth Nurse on LinkedIn
Networth Nurse on Facebook
Resources Get Tickets for Deal Maker Bootcamp
Learn More About Michael’s Mentoring Program
Register for Deal Maker Live
Join Michael’s Deal Maker Certification Program
Financial Freedom with Real Estate Investing by Michael Blank
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible to Probable to Inevitable by Hal Elrod
BiggerPockets
Dave Ramsey
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Podcast Show Notes
John Lee Dumas spent the first 32 years of his life chasing the almighty dollar—with little success. But when he took Albert Einstein’s advice and decided to become a man of value, that’s when JLD got a taste of success.
JLD is the host of the award-winning podcast Entrepreneurs on Fire, which has racked up over 100M listens and 3K five-star reviews since its launch in 2012. Through EOF, he has interviewed more than 3K of the world’s most successful entrepreneurs, delivering the inspiration and strategies listeners need to FIRE UP their own entrepreneurial journey. JLD is also the author of The Common Path to Uncommon Success: A Roadmap to Financial Freedom and Fulfillment.
On this episode of Financial Freedom with Real Estate Investing, JLD joins cohost Garrett Lynch and me to discuss his early struggle to succeed and explain how he approaches the podcast as a way to provide value. He reflects on the powerful combination between hard work and passion, sharing the lessons he’s learned from elite entrepreneurs around productivity, discipline and focusing on one path to success. Listen in for JLD’s method of deciding which opportunities to pursue (investment and otherwise) and find out how achieving financial freedom can help YOU bring big-time value to the world.
Key Takeaways Why JLD struggled to succeed prior to EOF
- Dealt with PTSD after tour in Iraq
- Chase success vs. provide value
JLD’s short career in commercial real estate
- Commit to one year as junior broker
- Felt no excitement for closing deals
JLD’s approach to starting the podcast
- Think long-term and be patient
- 18-month window to earn revenue
Why hard work isn’t enough to succeed
- Hard work + passion win every time
- Grow to love things you’re good at
Why financial freedom is important to JLD
- Utility of money brings joy
- Lack causes anxiety and overwhelm
The key themes in The Common Path...
- Steps to make more than you spend
- Become #1 solution to real problem
What JLD is investing in right now
- Cryptocurrency and NFTs
- Angel invest in startups
JLD’s top takeaways from 3K interviews
- Focus on producing right content
- Discipline to execute on plan
- Focus on one course to success
How JLD picks what opportunities to pursue
- If it’s not a hell yes, it’s a no
- Miss great opportunities if plate full
How JLD decides what to invest in
- Research and find mentors in space
- Believe in value company brings
Connect with John Lee Dumas Entrepreneurs on Fire
The Common Path to Uncommon Success: A Roadmap to Financial Freedom and Fulfillment by John Lee Dumas
Resources Get Tickets for Deal Maker Bootcamp
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Financial Freedom with Real Estate Investing by Michael Blank
Rich Dad Poor Dad by Robert T. Kiyosaki
Hell Yeah or No: What’s Worth Doing by Derek Sivers
CryptoDads
Mutant Punks
Mutant Cats
HEAD DAO
NFTs on Fire Podcast
Michael Hyatt’s Desire Zone
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Podcast Show Notes
Robert Kiyosaki’s Cone of Learning illustrates that while we only remember 10% of what we read after two weeks, we recall a full 90% of what we say and do. And that’s why aspiring investors who work through a simulation of their first deal are so much more confident than those who don’t practice the process beforehand.
But what does it look like to simulate your first multifamily deal? Where can you go to rehearse the steps in the Deal Maker Blueprint and gain the confidence to follow through?
On this episode of Financial Freedom with Real Estate Investing, Nighthawk Equity President Drew Kniffin joins me to discuss our upcoming Deal Maker Bootcamp in Orlando this January and explain how the workshop simulates the process of finding and closing on your first multifamily deal.
We explore the benefits of simulating your first deal and following a proven process, challenging you to master the critical skill of analyzing deals quickly and accurately.
Listen in for insight on the three kinds of people you need in your real estate network (and where to find them) and learn our top strategies for simulating your first apartment deal and building confidence while you practice in a safe environment.
Key Takeaways Robert Kiyosaki’s Cone of Learning
- Remember 10% of what we read
- Remember 50% of what we see and hear
- Remember 90% of what we say and do
The benefits of simulating your first deal
- Builds confidence
- Know what to expect if LOI accepted
How to simulate your first multifamily deal
- Practice in throw away market
- Visit larger properties
- Build sample deal package
The 3 kinds of people you should network with
- Peer group (Deal Maker’s Mastermind)
- Mentors who’ve done what you want
- Partners with complementary skills
Why we recommend following a proven process
- Don’t have figure out next step on own
- Avoid expensive mistakes
The benefit of being able to analyze deals
- Need for negotiating and making offers
- Confidence to talk to brokers/investors
Connect with Drew Kniffin Nighthawk Equity
Drew on Twitter
Drew on LinkedIn
Resources Register for Michael’s Deal Maker Bootcamp
Learn More About Michael’s Mentoring Program
Join Michael’s Deal Maker’s Mastermind
Learn More About Deal Maker Live
Get Michael’s Blueprint to Your First Multifamily Deal
Access Michael’s Syndicated Deal Analyzer
Join the Nighthawk Equity Investor Club
Financial Freedom with Real Estate Investing by Michael Blank
Robert Kiyosaki’s Cone of Learning
Sample Deal Package
The Deal Maker Certification on MB EP262
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Imagine having the ability to raise $100M for syndication deals in less than 18 months on your favorite social media platform! The fact is, you can take advantage of Facebook, Instagram and even TikTok to reach accredited investors and build connection until they trust you with their money. But how do you create a personal brand and grow an audience online?
Brandon Turner is a real estate investor, entrepreneur, speaker and host of the BiggerPockets Podcast. He serves as Founder and Managing Partner at Open Door Capital, a firm that focuses on value-add multifamily properties and mobile home parks. Brandon is also the coauthor of the recently released two-volume series The Multifamily Millionaire.
On this episode of Financial Freedom with Real Estate Investing, Brandon joins cohost Garrett Lynch and me to discuss his recent shift to large multifamily projects, explaining how his platform allows him to raise tens of millions in days on Instagram. He shares his passion for mobile home parks, challenging aspiring investors to ‘follow our fire’ and surround ourselves with the people doing what we want. Listen in for Brandon’s insight on building a personal brand and learn to leverage the power of a platform to scale your syndication business!
Key Takeaways What inspired Brandon’s shift to large multifamily
- Got in room with investors doing bigger projects
- Realized not aligned with what could be doing
Why Brandon is fired up about mobile home parks
- Wanted to be at bottom of market in recession
- Love challenge of hard things (passion = suffering)
Brandon’s pivot to large multifamily syndications
- Bring ability to raise capital to JV partnerships
- 3 deals worth more than 20 mobile home parks
Why Brandon likes building his platform on Instagram
- Good for getting people to know, like and trust you
- People choose to invest based on how you live
How Brandon would build a following if he had to start over
- Use Instagram reels/TikTok to reach lots of people
- Build connection on Instagram, funnel to email list
Why Brandon is building his email and text lists
- Instagram can’t take away addresses or phone #s
- Reach out to accredited investors (high open rate)
Brandon’s insight on building a personal brand
- How other people feel when think about you
- Lean into what people say, e.g.: @thedatadeli
The pros and cons of investing in small multifamily
- Less cash required and easier to manage
- Can only get so big, more competition on deals
The pros and cons of investing in large multifamily
- More risk, must be good at business
- Can scale quickly and buy $1B in short time
Brandon’s advice to aspiring multifamily investors
- Option 1—learn with small projects and scale up
- Option 2—bypass with help of mentor/partner
- Follow your fire
Connect with Brandon Turner Brandon on Instagram
Brandon on TikTok
Brandon on BiggerPockets
The Multifamily Millionaire, Volume I by Brandon Turner and Brian Murray
The Multifamily Millionaire, Volume II by Brandon Turner and Brian Murray
Resources Find Out More About Michael’s Platform Builders Masterclass
Get Tickets for Deal Maker Bootcamp
Join the Nighthawk Equity Investor Club
Download Michael’s Free Report—What's the Best Investment: The Stock Market or Real Estate?
Register for Deal Maker Live
Learn More About Michael’s Mentoring Program
Financial Freedom with Real Estate Investing by Michael Blank
Brandon Turner on Financial Freedom with Real Estate Investing EP221
BPCON
Brian Murray on LinkedIn
Slybroadcast
Dave Meyer on Instagram
Joe Fairless
Grant Cardone
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Podcast Show Notes
Multifamily investing is a team sport. And choosing the right partners and team members is critical. But how do you go about determining who is a good fit for your organization and who isn’t?
On this solo episode of Financial Freedom with Real Estate Investing, I discuss the importance of figuring out what you stand for and then using those core values to make decisions in your investing business.
I walk you through the process of determining your core values, explaining how to choose your themes and translate them into easy-to-memorize headers.
Listen in for insight around our core values here at the Michael Blank organization and learn how to get clear on your own values and use them to find the right partners and team members for your investing business!
Key Takeaways The importance of identifying your core values
- Find quality partners and hire team
- Use to make important decisions
Our core values here at The Michael Blank brands
- Make a difference
- Do what you say
- Do your best
- Get stuff done
How to identify core values in your organization
- Themes
- Header
- Descriptive
The themes we chose at The Michael Blank brands
- Integrity
- Excellence & Accountability
- Teamwork & Contribution
- Efficiency & Hard Work
How to translate your themes into headers
- Sticky, user-friendly words and phrases
- Easily memorized and recalled by team
How to expand your headers into descriptives
- Describe what core value means
- Clarify in 4 to 8 detailed sentences
Resources Radical Candor: Be a Kick-Ass Boss without Losing Your Humanity by Kim Scott
Who: The A Method for Hiring by Geoff Smart and Randy Street
The Core Value Equation: A Framework to Drive Results, Create Limitless Scale and Win the War for Talent by Darius Mirshahzadeh
Register for Michael’s Deal Maker Bootcamp
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Financial Freedom with Real Estate Investing by Michael Blank
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
While most of us resist setbacks and struggles, both are crucial to our growth. In fact, the most successful investors are those who respond to failure with resilience. Who pick themselves up, dust themselves off and take the next step of uncomfortable action toward their dreams.
Rob Rowsell embodies that kind of human will. In 1999, he was a homeless crack addict living on the streets. Then, he stumbled into a rehab center, and through sheer grit, Rob turned his life around. Today, he is a real estate investor, motivational speaker, multiple business owner and bestselling author of Addicted to Life: How I Went from Homeless to Extraordinary Success and Happiness in a Short Period of Time.
On this episode of Financial Freedom with Real Estate Investing, Rob joins cohost Garrett Lynch and me to share his journey from homeless addict to successful multifamily investor. He explains why so many aspiring investors don’t succeed, challenging us to develop a strong WHY and leverage visualization to reach our goals. Listen in for Rob’s insight on cultivating the mindset you need to take action, grow through the challenges and achieve financial freedom as a multifamily investor!
Key Takeaways Rob’s struggle with addiction
- Hooked on meth and crack cocaine
- Homeless and unemployable
What inspired Rob’s decision to change
- Realized on path to death or prison
- Pain to stay same > pain to change
How Rob got back into society
- Choose new people, places and things
- Willing to take uncomfortable action
Why aspiring investors don’t take action
- Biggest hurdle = previous successes
- Lack big enough WHY
How Rob uses visualization to reach his goals
- Write out as if already accomplished
- Read over to instill yearning, belief
The traits of a successful entrepreneur
- Build momentum via stacked action
- Willing to act despite uncertainty
- Grow through catastrophic failure
How Rob used knowledge to build momentum
- Ziglar taught potential to succeed
- Saved to buy Carleton Sheets course
How Rob got into real estate
- Bought auto repair shops no $ down
- Used hard money for first few SFHs
How Rob grew a 1K-unit multifamily portfolio
- Start with SFH buy-and-hold strategy
- Flip SFHs into small multifamily
- Reinvest profits in larger multifamily
Connect with Rob Rowsell Addicted to Life
Resources Get Tickets for Deal Maker Bootcamp
Access Michael’s Syndicated Deal Analyzer
Download Michael’s Deal Maker Blueprint
Learn More About Michael’s Mentoring Program
Addicted to Life: How I Went from Homeless to Extraordinary Success and Happiness in a Short Period of Time by Rob Rowsell
See You at the Top by Zig Ziglar
Carleton Sheets
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Podcast Show Notes
While single-family real estate is an individual sport, multifamily investing usually involves partners. But finding someone you trust to work with on a multi-million-dollar apartment deal can be challenging, especially for an introvert. So, how do you overcome limiting beliefs around partnering to become a successful multifamily investor?
Camilla Jeffs is the Founder and CEO of Steady Stream Investments, a firm focused on providing investment opportunities in large multifamily and senior housing communities. Also known as the Introverted Investor, she has served as the GP for four deals in nine months, built a portfolio of 250 units and quit her W-2 job! Camilla has 19 years of experience in real estate, and she is passionate about educating passive investors around the opportunity to achieve financial freedom through multifamily.
On this episode of the Financial Freedom with Real Estate Investing, Camilla joins cohost Garrett Lynch and me to share why it took her 15 years to transition from DIY single-family investor to multifamily GP. She describes the limiting beliefs she carried around partnering with others and explains how she excels at raising capital—despite being an introvert. Listen in for Camilla’s insight on investing for a financial, social and environmental return and learn why networking is key in multifamily syndication.
Key Takeaways Camilla’s experience of quitting her W-2 job
- Excited to spend days doing what she loves
- Loves flexibility and freedom in schedule
How Camilla got into real estate investing
- House hacking out of necessity to start
- Build portfolio of SFH + small multifamily
What inspired Camilla’s shift to large multifamily
- Tired after 15 years of DIY management
- Spending 4 to 5 hours/day on 15 units
Why it took Camilla so long to try multifamily
- Limiting beliefs about partnering
- Didn’t network with other investors
Why Camilla took on the role of capital raiser
- Teacher at heart (despite introversion)
- Help people achieve time freedom
The mindset shift that made Camilla successful
- Little success with ‘I need your money’
- Changed pitch to present opportunity
How Camilla thinks about choosing an operator
- Find through mentoring groups, meetups
- Different skills but same vision/values
Camilla’s concept of the Investing Trifecta
- Financial return
- Social return
- Environmental return
Connect with Camilla Jeffs The Introverted Investor
Camilla on Instagram
Camilla on LinkedIn
Camilla on YouTube
Camilla on TikTok
Resources Join the Nighthawk Equity Investor Club
Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
Learn More About Michael’s Mentoring Program
Financial Freedom with Real Estate Investing by Michael Blank
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Podcast Show Notes
You may have heard the idea that only 20% of what we do in business produces 80% of the results. And it follows that if you identify the right 20% and focus on that, you can scale a syndication business fast. But what does that look like in practice? How do you apply the 80/20 rule to make decisions around how to spend your time?
Endorsed by Forbes and Inc. Magazine, Perry Marshall is one of the most expensive business strategists in the world and the creator of the world’s largest science research challenge, the $10M Evolution 2.0 Prize. Perry’s reinvention of the Pareto Principle is published in the Harvard Business Review, and he is the author of eight books, including 80/20 Sales and Marketing and Memos from the Head Office.
On this episode of the Financial Freedom with Real Estate Investing, Perry joins cohost Garrett Lynch and me to explain the concept of the Pareto Principle and discuss how it applies to real estate syndication. He describes how we can leverage the 80/20 pattern to scale an investing business, challenging us to focus 50% of our attention on the right 1% of our investments. Listen in for Perry’s advice on identifying and marketing to the right investors and learn how YOU can use the 80/20 rule to prioritize your time as a multifamily syndicator!
Key Takeaways The concept of the 80/20 principle
- Originated by Italian economist Vilfredo Pareto
- Identified 20% of people have 80% of wealth
Perry's realization re: the fractal nature of 80/20
- Pattern of 80/20 inside every 80/20
- 1% of customers make 50% of purchases
How a syndication businesses can scale using 80/20
- 1% of investments produce 50% of profits
- Focus half of attention on right 1%
How to identify the 20% of investors to focus on
- Make prospects DO something to qualify lead
- Focus marketing on 20%, then repeat process
Perry’s insight around the 20/120 rule of business
- 20% of activity makes 120% of revenue
- Bottom 20% takes you backward
The message in Perry’s book Memos from the Head Office
- Tap into spirituality and faith for decision-making
- Listen to insight from God to resolve conflict
Connect with Perry Marshall Perry’s Website
Sell 80/20
Resources Register for Michael’s Platform Builders Masterclass
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Financial Freedom with Real Estate Investing by Michael Blank
80/20 Sales and Marketing: The Definitive Guide to Working Less and Making More by Perry Marshall
‘80/20 Is a Fractal Law of Nature’ in Harvard Business Review
John Paul Mendocha
Memos from the Head Office: Channeling the Muse in Business and in Life by Perry Marshall and John Fancher
Ultimate Guide to Google Ads by Perry Marshall, Mike Rhodes and Bryan Todd
Ultimate Guide to Facebook Advertising by Perry Marshall, Keith Krance and Thomas Meloche
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Podcast Show Notes
Most people wait until they need something to start networking. But it’s a real challenge to talk people into helping you when they haven’t heard from you in years. On the other hand, if you make networking a priority and ‘dig the well before you’re thirsty,’ those connections become true friends who fight for you when you need it.
Jordan Harbinger is the host of iTunes Top 100 ranked The Jordan Harbinger Show, a podcast where he interviews the world’s top performers, including legendary actors and musicians, intelligence operatives, professional athletes, iconic writers and other visionary change-makers. Jordan is best known for creating one of the leading self-development programs in the world, with a special emphasis on social capital and relationship building.
On this episode of Financial Freedom with Real Estate Investing, Jordan joins cohost Garrett Lynch and me to share his proactive approach to networking, explaining why it’s crucial to build relationships before you need them. He offers insight on making connections with A-listers and other high-net-worth individuals, challenging us to provide value and be ‘politely persistent’ for as long as it takes. Listen in for Jordan’s advice on starting over after the breakup of a business partnership and find out why relationships are the best insurance policy money can’t buy.
Key Takeaways How to find the right level of fearlessness and curiosity
- Can’t throw caution to wind without strategy
- 'Nobody ever went broke selling when up 10%’
Jordan’s transition from law to entrepreneurship
- Firm losing clients when market tanked in ‘08
- Money saved from Wall Street gave runway
- Went all-in on weekly radio show (side hustle)
Jordan’s proactive approach to networking
- Build relationships before you need them
- Leverage system to keep people top of mind
How Jordan builds relationships with A-listers
- Be politely persistent and follow up for years
- Make it worth their time to work with you
How Jordan provides value to celebrities
- Make publicist’s job easy, introduce network
- 'Everybody needs something’
How Jordan started over after a business breakup
- Took team along (strong relationships)
- ‘Best revenge is to live well’
What lessons Jordan learned from starting over
- Gut check re: who you work with
- Recognize people grow at different rates
- Double down on networking
Connect with Jordan Harbinger The Jordan Harbinger Show
Jordan’s Networking Course
Resources Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Superhuman
Dig Your Well Before You’re Thirsty: The Only Networking Book You’ll Ever Need by Harvey Mackay
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Podcast Show Notes
If I could go back in time, I’d return to 2010 and take advantage of the big buying moment in real estate at the time. But Ronan McMahon argues that if you set your sights beyond the States, there are circumstances like that at play somewhere in the world right now—if you’re willing to invest in international markets.
Ronan is a contributing editor at International Living and founder of Real Estate Trend Alert, a newsletter where he explores investment opportunities from all over the world. Ronan spends six months of the year on the road, looking for the best real estate investments around the globe. He is also the author of Profit Principle: An Insider’s Guide to Doubling Your Money in Real Estate Overseas.
On this episode of the Financial Freedom with Real Estate Investing, Ronan joins cohost Garrett Lynch and me to explain why investors should consider diversifying with international real estate. He offers insight on the international markets he likes right now, describing how to invest in the path of progress and choose projects with significant upside potential. Listen in for Ronan’s advice on partnering with trusted operators in other countries and learn how his team connects investors with opportunities overseas.
Key Takeaways How Ronan got into international real estate investing
- Invested in home country of Ireland until values too high
- Invited to travel, identify projects for International Living
Why investors should consider international real estate
- Big buying moments always happening somewhere
- Less competition with other investors vs. US
Ronan’s advice on shortening your learning curve
- Find trusted partner on ground with local knowledge
- Start with market one step from home beat (e.g.: Cabo)
Ronan’s insight on securing financing in international markets
- 'Forget it’ (come with capital)
- Choose projects with incredibly high returns
The international markets Ronan likes right now
- Algarve region of Portugal
- Tulum and Cabo San Lucas, Mexico
- Panama City
How Ronan’s business model is set up
- Partner with developers for access to first 100 units
- Members purchase individual condos at discount
Ronan’s advice on navigating the legal system in other countries
- Partner with locals in business for multiple generations
- Little recourse in handshake countries with weak courts
How Ronan’s team navigates regulatory issues outside the US
- Avoid by connecting developers with individual buyers
- Mindful of liability around holding title in Mexico
Connect with Ronan McMahon Real Estate Trend Alert
Ronan at International Living
Resources Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Access Michael’s Blueprint to Your First Multifamily Deal Training
International Living
What Is the Fideicomiso?
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Podcast Show Notes
You might think it would be easy for a well-known flipper to transition to multifamily. But the truth is, a successful career in single-family does NOT translate to the world of apartment building investing.
So, how do you make the leap from single-family rentals and flips to multifamily investor?
J Scott serves as Partner at Bar Down Investments, a multifamily investing firm with a portfolio of 1,000 units. J got his start in single-family real estate and built a reputation in the flipping business, rehabbing 500 properties and authoring four bestselling books in the BiggerPockets library. And then 18 months ago, J made the transition to multifamily investing.
On this episode of the podcast, J joins cohost Garrett Lynch and me to share what inspired his move into multifamily and explain why flipping houses is not the path to financial freedom. He opens up about lacking credibility in the multifamily space, offering insight on how to get brokers to trust you if you’re new to the game. Listen in to understand the 3 things you need to get investors to work with you and learn how to build a reputation in the multifamily space—with or without prior real estate experience!
Key Takeaways How J got into the real estate space
- Work long hours as corporate engineer in tech space
- Shift to real estate in 2008 to 'put family first'
What inspired J’s transition to multifamily
- Burned out on flips and single-family rentals
- Had cash to invest but didn’t trust anyone else
Why flipping houses is not the path to financial freedom
- Transactional (trade time for money)
- Need passive income stream
Why it took J so long to make the shift to multifamily
- Ego (reputation as ‘flip guy’)
- No credibility in multifamily space
What J did to compensate for his lack of credibility
- Admit had to start over, build new relationships
- Find mentor and add value
How to get brokers to trust you if you’re new to multifamily
- Partner with someone who has track record
- Prove serious by underwriting and giving feedback
J’s advice for investors considering a shift to multifamily
- Build marketing machine for 6 months first
- Multifamily scales much better
The benefit of having single-family experience
- Learn mechanics of deal with less money at risk
- Skills of acquisitions, underwriting, raising money
The 3 things you need to get an investor to work with you
- Build relationship so they LIKE and TRUST you
- Make them NEED you (e.g.: retirement plan)
How to differentiate yourself from bigger operators
- Do what you’re good at, educate new investors
- Tap into personal network
Connect with J Scott J’s Website
Bar Down Investments
Resources Join the Nighthawk Equity Investor Club
Learn More About Michael’s Mentoring Program
Access Michael’s Blueprint to Your First Multifamily Deal Training
Financial Freedom with Real Estate Investing by Michael Blank
Books by J Scott
Rich Dad Poor Dad by Robert T. Kiyosaki
Ashley Wilson
How to Win Friends & Influence People by Dale Carnegie
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Podcast Show Notes
The most successful people are also the most purposeful. They create a vision for the future and take steps to get a little better every day.
They take the time to ask: Is my life working for me? If not, how would I like it to look different?
David Osborn is the principal owner of the sixth largest real estate company in the US with 4,500-plus agents and $11B in annual sales. David also runs a real estate investing private equity firm and operates 35 other profitable real estate related businesses in the US and Canada. He is well-known for being one of the cofounders of GoBundance, a community of healthy, wealthy, generous men who choose to lead EPIC lives.
On this episode of Financial Freedom with Real Estate Investing, David joins cohost Garrett Lynch and me to explain his tagline, ‘Who you become on your journey is far more important than what you achieve.’ He offers insight on the value of connecting with the right people and growing into the best version of yourself. Listen in to understand why David’s definition of wealth involves more than just money and find out how the most successful people get clear on where they’re going and walk in purpose.
Key Takeaways How David became a real estate investor
- Got start as agent, opened KW franchises in TX, NM
- All-in on investing in 2011 but ran out of own capital
- Mission to meet wealthy people and raise money
- Establish fund to invest in single family rentals
What investments David is bullish on right now
- Dwelling spaces and rentals (single and multifamily)
- Real estate in Sunbelt states with fewer regulations
Why who you become is more important than what you achieve
- Controlling every decision makes you the bottleneck
- Leadership means delegating trust (world gets bigger)
- External world = reflection of who you are as human
The areas of his life David is working on right now
- More present with wife and children
- Working with coach on conscious leadership
- Meditate on regular basis
- Health including workouts
- Learning (40 books/year and podcasts)
How David thinks about finding work-life balance
- Worked 12-hour days to achieve financial freedom
- Work smarter now, better relationships at home
David’s well-rounded definition of wealth
- More than just money and financial freedom
- Being good human, finding ways to contribute
- Having adventures and being well-learned
Why it’s crucial to surround yourself with the right people
- Genius of humans = sharing and connectivity
- Find peers who push and inspire you to get better
The GoBundance origin story
- Accountability partners with Pat Hiban, Tim Rhode
- Invite others to join in bucket-list adventures
- Growth comes from authenticity and transparency
David’s top lessons learned as an entrepreneur
- Know where you’re going (purposeful vision for life)
- Invest in marriage and make time for kids
Connect with David Osborn David’s Website
David on Instagram
GoBundance
Resources Be a Part of Michael’s Deal Maker Mastermind
Join the Nighthawk Equity Investor Club
Entrepreneurs’ Organization
TIGER 21
Conscious Loving: The Journey to Co-Commitment by Gay & Kathlyn Hendricks
The 15 Commitments of Conscious Leadership: A New Paradigm for Sustainable Success by Jim Dethmer, Diana Chapman & Kaley Klemp
The Almanack of Naval Ravikant: A Guide to Wealth and Happiness by Eric Jorgenson
Huberman Lab Podcast
Wealth Can’t Wait: Avoid the 7 Wealth Traps, Implement the 7 Business Pillars, and Complete a Life Audit Today! by David Osborn & Paul Morris
Diego Corzo
The Family Board Meeting: You Have 18 Summers to Create Lasting Connection with Your Children by Jim Sheils
Lifespan: Why We Age—and Why We Don’t Have To by David A. Sinclair
Black Belt of the Mind by Fred Grosse
Pat Hiban
Tim Rhode
Scott Harrison of Charity Water
Gary Keller
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
Richard Branson
Tribe of Millionaires: What If One Choice Could Change Everything? by David Osborn & Pat Hiban
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Podcast Show Notes
Even if you choose the right property, the wrong debt can wreck a multifamily deal. So, what can we do to manage shifts in the real estate market? How do we structure deals in a way that mitigates risk?
Andrew Cushman serves as Principal at Vantage Point Acquisitions, a private equity firm focused on acquiring and repositioning multifamily properties throughout the Southeast US. He left his 9-to-5 as a chemical engineer for real estate in 2007 and built a lucrative house flipping business before finding multifamily in 2011. Since then, Andrew has successfully syndicated more than 2,100 units and launched The Multifamily Accelerator, a mastermind for active and experienced real estate investors.
On this episode of Financial Freedom with Real Estate Investing, Andrew joins cohost Garrett Lynch and me to explain why he is confident about buying multifamily right now and share what he is doing to maintain deal flow. He offers insight on underwriting to account for a spike in interest rates or a shift in rent growth and shares his secret for finding off-market deals. Listen in as Andrew describes what kind of inflation is good for apartment investors and learn how to structure agency or bridge debt to best manage risk.
Key Takeaways Why Andrew is confident about buying multifamily right now
- Large, sophisticated groups making offers on small properties
- Right types of inflation benefit multifamily in particular
The kind of inflation that’s good for multifamily real estate
- Labor, cost of building and properties all on rise
- Interest rates stay low while incomes increase
Why Andrew used 12-year, fixed-rate debt on a recent deal
- Buyer can assume debt in 6 years if interest rates up
- Property value likely up if interest rates still low
- Option to hold for 6 more years if market in trouble
Andrew’s top strategies for structuring bridge debt
- Don’t take maximum leverage, negotiate lower interest rate
- 5-year loan affords options while 1-year loan does not
How to mitigate the risk of a spike in interest rates
- Debt structure with options for exit
- Conservative rent growth assumptions
- Modify exit cap rate (+ 10 basis points for every year held)
What Andrew is doing to find multifamily deals right now
- Leverage long-term broker relationships
- Direct outreach to owners in select markets
- Driving for dollars
Andrew’s tips for reaching out to owners directly
- Ask under what circumstances would consider selling
- Be careful not to hurt existing broker relationships
What Andrew is doing to maintain deal flow
- Add team member to increase number of leads
- Consider expanding into new markets
Andrew’s strategy for bidding on listed multifamily deals
- Never win best and final on price (try creative terms)
- Stay involved to stay top-of-mind with brokers
How Andrew thinks about rent increases in his underwriting
- Current level of rent increases not sustainable
- Underwrite to current rents or well below forecast increases
- Buy where renovated rent <25% of median income
Connect with Andrew Cushman Vantage Point Acquisitions
Vantage Point on YouTube
Vantage Point on Facebook
Vantage Point on Instagram
Vantage Point on LinkedIn
Resources Explore Michael’s Deal Maker Certification Training
Access Michael’s Platform Builders Masterclass
Learn About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Kevin Bupp on Financial Freedom with Real Estate Investing EP281
Reonomy
Brandon Turner at Open Door Capital
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Is now really a good time to get started in multifamily?
COVID put real estate on a bit of a roller coaster ride. The market cooled for a bit but then came back even hotter!
So, is it too hot now? What should we be thinking about as we decide whether to invest now or wait until later?
On this solo episode of Financial Freedom with Real Estate Investing, I explain why there will never be a PERFECT time to get into multifamily and discuss how we adjust our tactics with ups and down in the market.
I offer insight on why real estate prices are going up right now and describe what soaring construction costs, ongoing demand for affordable housing and rising inflation means for multifamily.
Listen in to understand the relationship between rising rents and property values—and find out why investing in REAL assets is the best thing you can do right now!
Key Takeaways My insight on why now is the right time to get into multifamily
- There will never be a PERFECT time to get started
- If fundamentals are strong, stick with strategy but adjust tactics
- Don’t ask, ‘Should I get started?’ but ‘How can I get started?’
Why real estate prices are going up right now
- Low interest rates
- Increased demand
- Rising inflation
The impact of soaring construction costs
- Median price of house up from $286K to $326K
- Affordable housing shortage worse than ever
What the current inflationary environment means for multifamily
- Rising incomes and rents (in growing markets)
- Increasing NOI means value of building goes up
The case for investing in multifamily
- Ongoing high demand and limited supply
- Rising incomes + inflation = higher rents
- High rents + low interest rates = higher prices
Why it’s a good idea to invest in real assets right now
- Potential devaluation of dollar
- Hold things with intrinsic value
Resources Explore Michael’s Deal Maker Certification Training
Learn More About Michael’s Mentoring Program
Register for Michael’s Platform Builders Masterclass
Join the Nighthawk Equity Investor Club
Get Michael’s Blueprint to Your First Multifamily Deal
‘Construction Costs Are Skyrocketing—Should You Build a House?’ in Forbes
‘The Housing Shortage Is Worse Than Ever—And Will Take a Decade of Record Construction to Fix, Reports Say’ in Forbes
‘Skyrocketing Steel, Lumber Costs Threaten to Slow Construction Jobs’ in Construction Dive
‘Soaring Lumber Prices Add $36,000 to the Cost of a New Home and a Fierce Land Grab Is Only Making It Worse’ on CNBC
‘The Housing Boom Could Be Losing Steam’ on CNN Business
‘Online Searches About Relocations Soar; Lack of Homes for Sale Driving Interest’ in The Washington Post
‘The Housing Shortage—Special Report’ in REALTOR Magazine
‘Once-in-a-Generation Response Needed to Address Housing Supply Crisis’ on the National Association of REALTORS Website
‘Apartment Rents Reach New High in June’ in GlobeSt
‘More Americans Are Leaving Cities, But Don’t Call It an Urban Exodus’ in Bloomberg
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Most people see adversity as a bad thing and avoid it at all costs. But what if setbacks are simply part of the journey to success? What if we can convert adversity into rocket fuel and use it to propel us to the next level?
Mike ‘C-Roc’ Ciorrocco is the CEO of People Building, Inc. and Cofounder of the emerging tech company Blooprinted. He was named one of the Top Business Leaders to Follow in 2020 by Yahoo Finance and was #1 on their list of Top Mortgage Professionals the same year. Mike is also the host of What Are You Made Of? and the bestselling author of Rocket Fuel: Convert Setbacks, Become Unstoppable.
On this episode of Financial Freedom with Real Estate Investing, Mike joins cohost Garrett Lynch and me to explain why adversity is a good thing, describing how he converts setbacks into rocket fuel to become unstoppable. He walks us through the 3 C’s for achieving any big goal, challenging us to get clear on what we want and commit to taking consistent action. Listen in to find out how Mike got into business with Grant Cardone and learn his approach to reframing adversity as your best teacher.
Key Takeaways The rocket fuel that makes Mike unstoppable
- 'Dirty fuel’ of difficult childhood
- Future dreams to pull forward
How Mike lifted himself out of a negative environment
- Mom encouraged to be leader
- Never bought other’s BS to justify failures
Mike’s 3 C’s for realizing you’re not stuck
- Clarity
- Commitment
- Consistency
The importance of your peer group
- Bad things happen with wrong associates
- Surround self with people aligned with mission
Why people have a hard time committing to a goal
- Say it’s hard, try to make self right
- Program self to best-case scenario
Why Mike encourages people to tell their story
- Journey to success often invisible
- Adversity = part of process
The 3 reasons people don’t share their story
- Don’t think people care
- Embarrassed by story
- Underestimate power to impact others
Why adversity is ultimately a good thing
- Helps course correct when getting off track
- Teaches how to get where going
Mike’s approach to bouncing back from a big setback
- SWOT analysis of worst-case scenario
- Don’t worry what other people think
How Mike got into business with Grant Cardone
- Read 10X Rule, got immersed in his content
- Connect with Grant’s team to share successes
- Ask to write forward for Rocket Fuel
- Work together to launch 10X Incubator
What Mike wants to be remembered for
- Make people feel unstoppable
- Elevate others to achieve potential
Connect with Mike Ciorrocco Mike on Clubhouse
Mike on Instagram
Mike on LinkedIn
What Are You Made Of? Podcast
Blooprinted
Resources Access Michael’s Blueprint to Your First Multifamily Deal Training
Learn About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Rocket Fuel: Convert Setbacks, Become Unstoppable by Mike Ciorrocco
Grant Cardone
10X Incubator
The 10X Rule: The Only Difference Between Success and Failure by Grant Cardone
Grant Cardone Sales Training University
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life by Hal Elrod
Vivid Vision: A Remarkable Tool for Aligning Your Business Around a Shared Vision of the Future by Cameron Herold
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Scale is crucial to achieving financial freedom with real estate. And while multifamily is the fastest way to achieve scale, there are other commercial asset classes that will get you there, provided you understand the challenges and how to overcome them. Kevin Bupp is living the dream with mobile home parks, and he’s well-versed what it takes to grow a portfolio in this niche market.
Kevin is the CEO of Sunrise Capital Investors, a firm that helps investors build legacy wealth through commercial real estate investing. Kevin and his team focus on mobile home parks and parking assets, market segments with less competition than other asset classes. He has been a real estate investor since he was 19 years old, and he has specialized in mobile home parks for the last 10 years. Kevin is also the host of the Real Estate Investing for Cashflow Podcast.
On this episode of Financial Freedom with Real Estate Investing, Kevin joins cohost Garrett Lynch and me to discuss the pros and cons of investing in mobile home parks. He explains why he made the commitment to self-manage his portfolio and shares best practices for building your own property management company. Listen in to understand the process of finding mobile home park deals and learn how Kevin built and scaled a successful mobile home park investing business!
Key Takeaways What Kevin loves about mobile home parks
- Very high cash-on-cash returns
- Mom-and-pop owners = upside potential
- Very low tenant turnover rate
The challenges of mobile home park investing
- Difficult to scale (focus on large lots)
- Must make commitment to self-manage
How to build a property management company
- Add value to established group
- Hire from top down, not bottom up
Kevin’s advice on scaling a mobile home portfolio
- Grow efficiently, do only good deals
- Focus on quality of life
Kevin’s first hires for a property management team
- Invest in director of property management
- Experienced administrative assistant
What a mobile home park value-add deal looks like
- Aesthetic improvements (e.g.: road repair)
- Renovate park-owned units
- Install new homes on vacant lots
- Individual submeters on each lot
Why Kevin prefers selling mobile homes to renting
- Little to no profit on renters
- Average stay for owners = 9 years
Kevin’s debt strategy for mobile home parks
- Fannie and Freddie loans
- Community banks or CMBS lenders
How Kevin finds mobile home park deals
- Cold call and direct mail prospects
- Relationships with brokers
How Kevin gets property owner contact info
- Secretary of state site for LLC members
- Skip trace software
Why Kevin is getting into parking assets
- Cashflow, nice return on investment
- Positive future potential
Connect with Kevin Bupp Kevin’s Website
Sunrise Capital Investors
Real Estate Investing for Cashflow Podcast
Resources Podcast Show Notes
Access Michael’s Blueprint to Your First Multifamily Deal Training
Learn About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Kevin Bupp on Financial Freedom with Real Estate Investing EP054
TLOxp
LexisNexis
CoStar
Reonomy
Hunter Thompson on Financial Freedom with Real Estate Investing EP087
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Investing out of your area is a challenge. And investing WAY out of your area, like in a different country, adds another layer of complexity to doing a deal. But as long as you’re willing to make a decision and start moving forward, there’s nothing you can’t figure out along the way.
Edna Keep is a real estate investment coach and author of Multiple Ways to Wealth: Creating Your Prosperous Lifestyle. Edna spent 15 years as a financial advisor before she was introduced to real estate, and today, her team owns a portfolio of 800 doors worth $65M in both the US and Canada.
On this episode of Financial Freedom with Real Estate Investing, Edna joins cohost Garrett Lynch and me to share the ins and outs of investing out of area and explain the differences between the US and Canadian markets. She describes the challenges of being a foreign investor, offering insight into what she looks for in a market and how she builds a power team on the ground around a deal. Listen in for Edna’s advice on making a decision and then making it work for you—even if you don’t have all the answers about how a deal will work!
Key Takeaways What inspired Edna’s interest in real estate
- Worked as financial advisor for 15 years
- Clients pull money for real estate deals
How Edna pitches seller financing deals
- Focus on property owners looking to retire
- Keep income stream, avoid taxable event
How Edna finds sellers that are planning to retire
- Real estate investment networks
- Referrals based on reputation
Edna’s transition to larger multifamily properties
- Raise investor capital for Memphis deal
- Paid cash ($21,600 per door)
Why Edna prefers real estate over mutual funds
- Mutual funds subject to market cycles
- Real estate offers consistency
Why Edna is investing in US real estate markets
- Hot urban markets, high prices in Canada
- Challenging to get financing in Canada
The logistics of investing in a foreign market
- Find deal, build power team on ground
- Canadian corporation owns US LLC
What Edna looks for in a real estate market
- Focus on workforce housing
- Look for growing community
Why it’s okay to not have all the answers
- Multiple exit strategies available
- Work with partners
Edna’s advice for aspiring investors
- Make a decision, then make it work
- Don’t put all eggs in one basket
Connect with Edna Keep Edna’s Website
Email edna@ednakeep.com
Resources Learn More About Michael’s Mentoring Program
Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
Join the Nighthawk Equity Investor Club
Financial Freedom with Real Estate Investing by Michael Blank
Robert Kiyosaki
National Real Estate Investors Association
Canada Mortgage and Housing Corporation
Multifamily Networking from Anywhere in the World on FFWREI EP260
Canadian Real Estate Investment Trusts
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
All entrepreneurial activities are not created equal. Running a service-based business is an active pursuit. You’re managing employees, making sales and then following through with high quality work. But in real estate, once you do the initial legwork, the money comes in automatically with very little effort on your part.
Pete Schnepp is the successful entrepreneur behind Envision Painting and Roof Coatings, Bug Science Pest Control and PRS Properties. Pete got serious about building a real estate portfolio in 2017, and today, his rental income covers his family’s living expenses, and he is financially free.
On this episode of the podcast, Pete joins cohost Garrett Lynch and me to discuss what sets real estate apart from other kinds of entrepreneurship. Pete walks us through the steps he took to build a portfolio of properties and explains why his family continues to live below their means despite having achieved financial freedom. Listen in for Pete’s advice on revisiting your goals every day and find out how he is building generational wealth with real estate!
Key Takeaways What inspired Pete’s interest in real estate
- Realized people with money involved in real estate
- Needed Plan B to protect family financially
The steps Pete took to build his portfolio
- Listened to podcasts and books while driving
- Lived below means to save up
- Made offers on 10 properties in single weekend
How Pete achieved financial freedom
- $10K/month rental income covers living expenses
- Goal to hit $20K/month by 2023
Pete’s insight on living below your means
- Pay self salary as business owner and live on that
- Maintain modest lifestyle even now
How Pete and his wife got on the same page
- She supports his big dreams
- Prioritize time with family over expensive things
Pete’s future goals when it comes to real estate
- Use to create generational wealth
- Hold existing properties for passive income
How real estate differs from Pete’s other small businesses
- Painting and pest control = active
- Real estate = passive and easier to scale
Pete’s advice for aspiring real estate investors
- Get clear on 5-year goal
- Focus on goal daily
Connect with Pete Schnepp Pete on LinkedIn
Pete on Facebook
Resources Register for Michael’s Platform Builders Masterclass
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
Think and Grow Rich by Napoleon Hill
BiggerPockets Real Estate Podcast
Entrepreneurs’ Organization
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
GoBundance
The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley and William D. Danko
CASHFLOW Board Game
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
The vast majority of multifamily syndicators don’t stop with one property. And with each new deal, we start the stressful process of raising money all over again. But it doesn’t have to be that way! So, how does it work to raise capital for multiple deals through a fund?
Joe Fairless is the Cofounder and Partner at Ashcroft Capital, a multifamily firm that invests in 200-plus-unit value-add deals. The Ashcroft team has a portfolio of 38 properties, and in February of 2021, they pivoted from raising money for individual deals to raising capital through funds.
On this episode of Financial Freedom with Real Estate Investing, Joe joins me (and the attendees of Deal Maker Live) to discuss the pros and cons of raising money through a fund. He explains the benefit of being able to spread out your capital raise over time, bring on investors whenever they’re ready, and comingle money among deals. Listen in for insight on how Ashcroft structures its funds and find out if YOU’RE ready to start raising money for multifamily through a fund!
Key Takeaways How Joe achieves work-life integration
- Systems, people in place to run business when away
- Blurred lines between personal/professional life
How Ashcroft Capital structures its funds
- Class A — 10% preferred return, virtually no upside
- Class B — 7% pref with 70/30 split on upside
The downside of raising money for funds
- LP gets average of all deals (miss out on lightning in bottle)
- GP misses out on investors who prefer individual deals
Joe’s take on the advantages of raising money for funds
- Don’t have to land on specific equity amount for each deal
- Spread out capital raise over time
- Bring investors on whenever ready
- Creates consistency for investors (GP can comingle money)
When you should consider raising money through a fund
- Acquired 5 multifamily deals
- At least 2 exits under belt
The pros and cons of using Rule 506(c)
- Can advertise deal publicly but accredited investors only
- Don’t have to document preexisting relationship
Why Joe’s fund raises money for both class A and B properties
- 20% of investors class A, 80% of investors class B
- Class A shares upside over 10% for less risk
Connect with Joe Fairless Ashcroft Capital
Resources Learn About Michael’s Mentoring Program
Access the Recordings from Deal Maker Live
Join the Nighthawk Equity Investor Club
Tony Robbins on Work-Life Integration
Rule 506(c)
Rule 506(b)
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
In the short term, multifamily investors can have success simply playing the appreciation game. But if you want to build a multifamily portfolio that survives and thrives for the long term, you have to make operations a priority.
Ashley Wilson is the cofounder of Bar Down Investments and the bestselling author of The Only Woman in the Room: Knowledge and Inspiration from 20 Women Real Estate Investors. Ashley has been involved in $60M-plus in real estate transactions in the last 12 years, and she leads asset and construction management for her own multifamily investments.
On this episode of Financial Freedom with Real Estate Investing, Ashley joins cohost Garrett Lynch and me to explain why it’s essential for syndicators to focus on operations. Ashley shares her take on the lack of women in real estate, offering advice on how to increase the number of women investors and influencers in the space. Listen in for Ashley’s insight on the #1 skill you need to be a successful investor and find out how to marry asset and construction management to maximize the value of YOUR multifamily portfolio!
Key Takeaways What lights Ashley up about multifamily real estate
- Finding best way to maximize value of property
- Operations (how tenants think, market shifts, etc.)
How Ashley’s real estate strategy has evolved over time
- Hands-off house hacking, STRs while working full-time
- Shift to high-end flips after retired from pharmaceuticals
- Desire to work smarter not harder led to multifamily
Why multifamily is the holy grail for Ashley’s needs
- Obvious tax advantages, hedge against inflation
- Market demand (need due to housing shortage)
Why syndicators need to focus on operations
- Can’t succeed long-term by way of appreciation alone
- Learn through management of difficult properties
- 100% collections on all properties throughout COVID
The benefit of marrying asset and construction management
- Exploit market demands, minimize loss-to-lease
- Build up right tenants = easier to operate long term
What inspired Ashley to write The Only Woman in the Room
- Just 14 women out of 450 investors at MidAtlantic Summit
- Highlight stories, provide role models for next generation
Ashley’s take on the lack of women in the real estate business
- Women not encouraged to pursue STEM fields until now
- Math and finance necessary foundation for investing
Why determination is the #1 skill of a successful investor
- Overrides fear of asking questions and taking risks
- Seek out knowledge, push through self-doubt
How to increase the number of women investors and influencers
- Provide opportunities to speak at events based on merit
- Best way to be introduced = have someone introduce you
Ashley’s advice to aspiring women real estate investors
- Start building relationships (net worth = network)
- Exploit free platforms to learn fundamentals
Connect with Ashley Wilson Bar Down Investments
Ashley on Instagram
Ashley on BiggerPockets
Resources Access the Recordings from Deal Maker Live
Register for Michael’s Platform Builders Masterclass
Join the Nighthawk Equity Investor Club
The Only Woman in the Room: Knowledge and Inspiration from 20 Women Real Estate Investors compiled by Ashley Wilson
MidAtlantic Summit
The Real Estate InvestHER Community
Investor Girl Britt
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
So, you want to go for bigger deals, but your current network is pretty much tapped out. Maybe you struggled to raise $500K for your last deal, and you’d like to add a zero for the next one. How do you attract new investors and scale your capital raise?
Jonathan Barr is the Cofounder and Principal at JB2 Investments, a real estate investment firm specializing in 70-plus-unit value-add projects in high cashflow, landlord-friendly markets. Jonathan began his real estate career in 2009, facilitating the acquisition of 400 residential flips in the LA market that generated $22M in profit for his family’s business.
On this episode of Financial Freedom with Real Estate Investing, Jonathan joins me to explain what inspired him to invest outside the LA market, sharing the mental blocks he had to overcome to buy properties in the Midwest. Jonathan walks us through his first multifamily deal in Oklahoma City, discussing why he had a hard time raising money for it and how he built an online platform to solve that problem. Listen in for Jonathan’s insight on using Twitter to attract new investors and learn how to scale YOUR ability to raise capital through content creation!
Key Takeaways How Jonathan got involved in real estate
- Grew up in real estate family in LA
- Join flip, development business
The pros and cons of working in a family business
- Feel ultimate support and trust
- Hierarchy of parent-child relationship
What Jonathan learned in SFH acquisitions that translates to multifamily
- Conduct due diligence, use checklists to mitigate mistakes
- Discuss deals with team and bounce ideas
What inspired Jonathan to invest outside the LA market
- Buy-and-hold duplexes in LA only making 3% in equity
- Potential to triple cashflow by moving money to KC
Jonathan’s mental block around investing out of the LA market
- Unable to drive to properties and manage himself
- Hard to feel comfortable delegating responsibility
Why Jonathan made the shift to multifamily
- Margins on flips low, always chasing next deal
- Apartment buildings much more tax efficient
Why Jonathan joined our mentoring program last year
- Left family business in January 2020
- Used to having parents as mentors
Jonathan’s first multifamily deal
- Closed on 72-unit property in OKC in September
- Cut expenses by 25%, beating projections by 30%
Why Jonathan had a hard time raising money for his first deal
- First deal in OKC market (no track record there)
- Uncertainty of pandemic
How Jonathan built an online platform to raise capital
- Offer free eBook to build email list
- Post content daily on Twitter
Jonathan’s take on why content creation is so important
- Gives potential investors insight into business
- Shows thoughtful and thorough, builds trust
Jonathan’s insight on how to create content
- Get ideas from questions you get, other podcasts
- Block off time to write multiple posts at once
Jonathan’s advice for syndicators who are tapped out on capital
- Post video or blog every week
- Focus energy on single social platform
Connect with Jonathan Barr JB2 Investments
JB2 on Facebook
Jonathan on Twitter
Jonathan on LinkedIn
Resources Register for Michael’s Platform Builders Masterclass
Learn More About Michael’s Mentoring Program
Enter the Financial Freedom Podcast Launch Contest
The Tax Stack Strategy: The Magic of Paying Less Tax Using Real Estate by Jonathan Barr
Upwork
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
In nearly 300 episodes of the Apartment Building Investing podcast, I’ve talked to big names in real estate like Robert Kiyosaki, Brandon Turner and Grant Cardone. I’ve also had conversations with countless men and women you may not have heard of who achieved financial freedom through multifamily syndications.
And now, Apartment Building Investing is coming to an end. But only because we’re celebrating a new beginning and rebranding the show as Financial Freedom with Real Estate!
On this episode, I explain how Financial Freedom with Real Estate more accurately reflects our mission here at The Michael Blank Organization. I explain what makes investing in apartments better than single family homes, sharing examples of people we’ve empowered to quit their jobs and live a life of purpose through multifamily investing. Listen in for insight on the benefits of our Deal Maker Certification training and find out how to WIN the course in our Financial Freedom Podcast Launch Contest!
Key Takeaways Why we’re renaming the podcast Financial Freedom with Real Estate
- Accurately communicates mission of organization
- Reach more people thinking about investing
Why apartments are superior to investing in single family homes
- Performs better in down markets
- More consistent returns
- Pay self acquisition fees as syndicator
- Secure non-recourse debt
- Control value of property
- Achieve financial freedom in 2 years
How financial freedom empowers people to live a life of purpose
- Realize you’re here for something bigger than yourself
- Sets you up to make impact, become difference-maker
What you learn from our Deal Maker Certification training
- Proven system to achieve financial freedom with multifamily
- Process for doing first deal, quitting job and scaling portfolio
Resources Enter to Win the Financial Freedom Podcast Launch Contest
Financial Freedom with Real Estate Investing by Michael Blank
Explore Michael’s Deal Maker Certification Training
Learn More About Michael’s Mentoring Program
Financial Freedom Hall of Fame
Rich Dad Poor Dad by Robert T. Kiyosaki
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Multifamily investors know the advantages of scale. But when it comes to residential assisted living or RAL, bigger isn’t always better. The big-box model often leads to poor healthcare outcomes, treating residents not as individuals but part of a process. So, how can investors scale senior living facilities without compromising care?
Loe Hornbuckle is CEO of Sage Oak Assisted Living and Memory Care and Cofounder of GoodHorn Capital, a real estate investment firm focused on recession-resistant asset classes including build-to-rent and senior living. Loe has a heart for improving the residential assisted living experience, providing residents with both the quality care associated with small RAL facilities and the advantages of scale.
On this episode of Apartment Building Investing, Loe joins cohost Garrett Lynch and me to share his unique, hybrid approach to building assisted living and memory care facilities. Loe explains how his father’s bad experience in hospice inspired his interest in RAL and offers insight on applying his strategy to multifamily deals. Listen in to understand how Loe is solving the scaling problems of residential assisted living and find out if the business of caretaking is right for YOU.
Key Takeaways Loe’s approach to building assisted living and memory care facilities
- Unique physical plant and operations (boutique experience)
- Campus of 10 buildings with 16 residents in each
How Loe is solving the scaling problems of residential assisted living
- Campus of care homes can use third-party management
- Much easier to appraise and finance through bank
What Loe’s campus of care homes looks like
- 5 or 6 homes (9K ft2) + 2-story sales and admin office
- Homes have four quadrants and commons area
What inspired Loe’s interest in assisted living as an asset class
- Dad had really bad experience in hospice care
- Presentation and podcast on converting real estate to RAL
How an investor can get into the business of caretaking
- Invest as LP with operator you believe in
- Hire team with medical background
How Loe thinks about processes and systems in RAL
- Works only up to point to establish baseline
- Hire for heart and talent, get out of way
The critical hires for a residential assisted living facility
- Executive director and head of clinical team
- Look for integrator or visionary
How to apply Loe’s RAL strategy to multifamily investing
- Analyze deal if converted to age-restricted community
- Additional tool for competing on deals
Loe’s advice on getting started with residential assisted living
- Must have heart for business and strong WHY
- Determine core competencies of team, hire for gaps
Connect with Loe Hornbuckle Loe on LinkedIn
GoodHorn Capital
Resources Register for Deal Maker Live
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Adversity is not optional. Whether you’re a Navy SEAL or a multifamily investor, you’re going to face difficult circumstances. And while you don’t have control over what happens, you DO control how you respond. Are you going to let adversity knock you down? Or will you rise to the occasion?
Chad Williams the bestselling author of SEAL of God, a memoir of his grueling journey through Naval Ops training and onto the war-torn streets of Iraq. Chad is also a sought-after international speaker, drawing on his experience as Navy SEAL to share lessons around teamwork, integrity, mental toughness and overcoming adversity, and he is set to deliver the keynote address at Deal Maker Live next week in Dallas.
On this episode of Apartment Building Investing, Chad joins cohost Drew Kniffin and me to explain how the principles he mastered as a SEAL apply to multifamily investing, challenging us to be servant leaders and stay calm in the face of adversity. Chad offers advice on staying the course in difficult times, describing how a strong WHY made him one of only 13 SEAL trainees to graduate (in a class of 173). Listen in for Chad’s insight on the choice you have to let adversity be a weight or a wing and learn to be resilient regardless of the challenges life brings your way!
Key Takeaways The story of Chad’s final operation in Iraq
- Hunt men who make suicide vests and roadside bombs
- Work side by side with Iraqi Special Operations Forces
- ISOF led final initiative but ambushed during operation
What it looks like to be a servant leader
- Foster environment of loyalty, trust and sense of family
- Esteem needs of others as greater than your own
Chad’s advice on how to respond to adversity
- Find ways to rise to occasion (choose wing vs. weight)
- Calmness is contagious, true leader controls emotions
The challenge of completing the training to become a SEAL
- 173 in Chad’s class but only 13 made it to graduation
- Hell week = 4 hours of sleep in 5½ days, run 200 miles
How to stay the course and endure through challenging times
- WHY bigger than just you, e.g.: faith, family or friends
- What would you write inside your hat?
Connect with Chad Williams Navy SEAL Chad Williams
SEAL of God by Chad Williams
SEAL of God on Instagram
Resources Register for Deal Maker Live
Sign Up for Chad’s Deal Maker Live Adventure
Access Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
Join the Nighthawk Equity Investor Club
Learn More About Michael’s Mentoring Program
Download Michael’s Free eBook: The Secret to Raising Money for Your First Apartment Building
Scott Helvenston
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Asset management may not be as sexy as raising money or chasing deals. But it’s the aspect of multifamily investing that makes a deal successful—or not. So, what’s involved in the operation of an apartment building? And how can an asset manager work with their property management team to solve problems together?
Kyle Mitchell is the cofounder of Asset Management Mastery, a platform designed to help multifamily investors become best-in-class operators. Kyle owns and operates a portfolio of 400 units worth $400M in Tucson and Phoenix, Arizona. He is also the coauthor of Best in Class: How to Manage Your Multifamily Asset, Avoid Mistakes and Build Wealth Through Real Estate and serves as a mentor with The Michael Blank organization.
On this episode of Apartment Building Investing, Kyle joins cohost Garrett Lynch and me to discuss the role of a multifamily asset manager, explaining how he conducts monthly secret shopper audits and what KPIs he tracks on a regular basis. Kyle describes what attracted him to the asset management side of the business, discussing how he partners with the property management team to get the best out of a property. Listen in for Kyle’s hands-on approach to renovation management and find out how he is navigating material and labor shortages in the aftermath of the pandemic.
Key Takeaways The role of a multifamily asset manager
- Hold property management company accountable
- Partner with PM team to get best out of property
What attracted Kyle to asset management
- Background in operations at golf courses
- Identified gap in that side of multifamily business
Why Kyle moved into the market where he invests
- Easier to build relationships as boots on ground
- Opportunity to grow portfolio
How Kyle conducts a monthly secret shopper audit
- 80-point system (send scorecard to PM team)
- Different phone #, email address and question
What key performance indicators Kyle tracks
- Marketing metrics (# of leads, conversion ratio)
- Lease trade-outs, rental and RUBS comps
How Kyle handles multifamily renovation management
- Property management company has in-house team
- Track tasks on Trello goal to finish in 21 days
How to navigate the current material and labor shortages
- Order in bulk and secure storage on site
- Build deep roster of vendors
What Kyle does when a property manager isn’t performing
- Direct line to owner of PM company
- Weekly call to discuss cause of issues
How to be proactive when it comes to asset management
- Partner or team member with ops experience
- Reach out to peers in multifamily industry
Connect with Kyle Mitchell Asset Management Mastery
Asset Management Summit
Asset Management Mastery Podcast
Passive Income Through Multifamily Real Estate Podcast
Best in Class: How to Manage Your Multifamily Asset, Avoid Mistakes and Build Wealth Through Real Estate by Kyle Mitchell and Gary Lipsky
Resources Register for Deal Maker Live
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Download Michael’s Free eBook: The Secret to Raising Money for Your First Apartment Building
Kyle Mitchell on Apartment Building Investing EP172
Neal Bawa’s LASAL Revenue Management System
Conservice: The Utility Experts
Trello
DiSC Assessment
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
What does a multifamily investor look like? If you grew up in a working-class family that didn’t talk about money, let alone investing, you may have a hard time seeing yourself as a successful syndicator. But you don’t have to be a Wall Street guy to build a multifamily real estate business. You can raise millions of dollars for deals no matter where you come from… But you’ve got to BELIEVE you can.
Timothy Lyons is a 15-year veteran of the New York City Fire Department and Principal and Managing Partner at Cityside Capital. He invested in his first 3-family property at the end of 2019, and today, he has been involved in 5 syndications worth over $100M. Tim is also a contributor to Bringing Value, Solving Problems and Leaving a Legacy, a collection of powerful stories of transformation from thought leaders, entrepreneurs and real estate investors.
On this episode of Apartment Building Investing, Tim joins cohost Garrett Lynch and me to discuss the power of belief, explaining how he overcame imposter syndrome to build a portfolio of 720-plus units in 12 months. Tim shares why he was skeptical about investing in a coach and how he realized the value of aligning with a network of people who are successful at what you want to do. Listen in for Tim’s amazing story of going all-in on multifamily at the start of the pandemic and learn to push through YOUR limiting beliefs and achieve financial freedom with real estate!
Key Takeaways Why Tim got into real estate investing
- Working 90 hours/week as firefighter and ER nurse
- Missing out on time with wife and 3 kids
Tim’s first 3-family property
- Financed with own money for proof of concept
- Rehabbed units, achieved cashflow soon after
The next steps Tim took to go bigger, faster
- Invest in education and mentoring
- Learn as much as possible about money, taxes
How Tim overcame his resistance to investing in a coach
- Talked to students in different programs
- Realized value of aligning with network
The timeline around Tim’s multifamily education
- Separated from family (first 7 weeks of pandemic)
- Crush through material in coaching program
How Tim realized the power of multifamily syndication
- Invited to join coach’s deal, follow process
- Raised $200K from personal network
How Tim overcame limiting beliefs re: raising money
- Identity shift to see self as investor
- Share power of investing with network
How Tim is raising $2.5M for his fifth syndication
- Talk about what he’s doing with everyone
- Build online thought leadership platform
Tim’s advice for aspiring multifamily investors
- Education = antidote to fear
- Surround self with right people and take action
What Tim did to overcome imposter syndrome
- Develop willingness to fail forward
- Connect with fantastic coaches
Connect with Timothy Lyons Cityside Capital
Bringing Value, Solving Problems and Leaving a Legacy by Tim Lyons et al.
Resources Invest in Michael’s Deal Maker Certification Training
Register for Deal Maker Live
Learn More About Michael’s Mentoring Program
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate Investing—Even Without Experience or Cash by Michael Blank
Download Michael’s Free eBook: The Secret to Raising Money for Your First Apartment Building
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
Jim Rohn
Zig Ziglar
BiggerPockets
ActiveCampaign
Real Estate Guys Radio
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
It’s easy to talk yourself out of your first multifamily deal. Working through obstacle after obstacle alone wears on a first-time syndicator, and you feel like giving up. But if you partner with another investor, you don’t want to let each other down. And you push through adversity, showing up with a kind of tenacity you may not have had on your own.
Gary Van Bortel and John Bilinski are the syndication team behind ROC Capital Group, a multifamily investment firm out of Rochester, New York. Gary and John have 30 years of investing experience between them, building individual portfolios of single family and small multifamily properties before partnering on their first apartment syndication in 2020, a $1M raise for 48-unit deal in Syracuse. Gary and John are also the organizers of the Upstate Commercial Apartment Investors Meetup.
On this episode of Apartment Building Investing, Gary and John join cohost Garrett Lynch and me to explain why they decided to work together, describing how a partnership motivates you to keep moving forward—even when a deal gets hairy. Gary and John discuss how they connected with potential investors through a local Meetup and share how they got investors to commit to their first deal. Listen in for insight on pushing through when things don’t go according to plan (I’m looking at you, COVID) and learn to leverage a strong partnership to work through obstacles together.
Key Takeaways How Gary got into real estate
- Bought duplex as first house
- Potential for living cost-free
How John got into real estate
- Looking for passive income
- Renovate and rent homes
What inspired Gary and John’s shift to multifamily
- Learn about syndication on podcast
- Ability to scale fast resonated with both
Why Gary and John decided to partner
- Bring complementary strengths to table
- Harder to talk self out of deal, give up
How Gary and John primed investors
- Formed local multifamily Meetup group
- Presentations on aspects of syndication
How Gary and John found their first deal
- Deal for large portfolio through broker
- Buyer willing to sell individual property
What made Gary and John’s first deal a challenge
- Owner being indicted
- Hard to get title insurance
Gary and John’s journey to raising $1M
- Nervous at closing, far from goal
- Met with potential investors 1:1
How Gary and John got investors on board
- Own skin in game but not taking return
- Willing to show property despite risk
The obstacles Gary and John faced with COVID
- Property manager unable to go onsite
- Asbestos issue meant displacing tenants
Gary and John’s advice for aspiring syndicators
- Build community of potential investors
- Get educated on logistics, partner up
Connect with Gary Van Bortel & John Bilinski ROC Capital Group
Upstate Commercial Apartment Investor Group Meetup
Email gary@roccapitalgroup.com
Email john@roccapitalgroup.com
Resources Register for Deal Maker Live
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate Investing—Even Without Experience or Cash by Michael Blank
Download Michael’s Free eBook: The Secret to Raising Money for Your First Apartment Building
REIA
Meetup
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
COVID decimated the hotel industry, bringing property values down significantly. And savvy multifamily investors are buying distressed hotels on the cheap and converting them into apartment buildings. But what are the pros and cons of this strategy?
Serge Shukhat serves as Principal at Zona Capital, LLC, a real estate investment firm that specializes in acquiring value-add multifamily and mobile home park assets. Serge spent 13 years as a corporate warrior before leaving his W-2 in 2012 with the cashflow from 70 single family rentals. Then he shifted his focus to multifamily and now owns a portfolio of more than 1,000 units. And in the last two years, Serge has developed an innovative strategy for repositioning hotels as multifamily properties.
On this episode of Apartment Building Investing, Serge joins cohost Garrett Lynch and me to share his approach to converting hotels into apartment buildings. Serge explains why he operates the units as Airbnbs to start and leases them up gradually and describes the challenges of running this kind of hybrid property. Listen in for Serge’s insight on the barriers to entry for repositioning hotels and learn how YOU can benefit from acting on this unconventional multifamily play!
Key Takeaways How Serge got involved in real estate
- Searching for way out of corporate job
- Started buying single family during recession
How Serge analyzes price per door
- What other investors are buying at
- Rebuild cost in market
What inspired Serge to reposition hotels as multifamily
- Hotels cheaper than multifamily properties
- No competition on deals
Serge’s first hotel-to-apartment conversion
- 70-unit with kitchens, easy market for permitting
- Bought with re-trade due to COVID at 15% off
Serge’s Airbnb bridge strategy
- Operate units as STRs to start, lease up slowly
- Provides immediate cashflow
What makes Serge’s STR bridge strategy work
- On-site team manages Airbnb units
- Property operates at maximum efficiency
The challenges of hotel-to-multifamily conversions
- Permitting and zoning
- Takes property manager outside comfort zone
Why Serge is conflicted about shifting to full multifamily
- Cashflow of Airbnb units = 3X long-term lease
- STR-multifamily hybrid makes exit harder
Connect with Serge Shukhat Serge on BiggerPockets
Serge on LinkedIn
Resources Register for Deal Maker Live
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Download Michael’s Free eBook: The Secret to Raising Money for Your First Apartment Building
Garrett on The Real Estate Syndication Show with Whitney Sewell
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
I used to dismiss mindset as the key to success. But I’ve since come to understand that until you get your head straight, you won’t take action. So, what mindset shifts do you need to make to become a successful multifamily investor?
On this solo episode of Apartment Building Investing, I walk you through the 6 seismic shifts it takes to quit your job with real estate, challenging you to clear on WHY you want financial freedom and develop a strong belief in yourself and the system you’re following.
I explain why you have to accept that you don’t know everything and take consistent action over time to see results. Listen in for insight on playing the long game and learn the benefits of partnering with others to scale a successful syndication business!
Key Takeaways Seismic Shift #1—Clarity
- Get clear on what you want, why you want it
- Develop through morning routine
Seismic Shift #2—Belief
- Believe in yourself, higher power and system
- Build through affirmations and visualization
Seismic Shift #3—Surrender
- Give up portion of ego to be COACHABLE
- Network with advisor or hire mentor
Seismic Shift #4—Consistency
- Tiny action every day yields results
- Analyze deals + meet investors = first deal
Seismic Shift #5—Play the long game
- Don’t look for instant gratification
- Seek permanent change and leave legacy
Seismic Shift #6—Be open to working with others
- Partner on single deal for limited downside
- Scale faster, focus on what YOU like to do
Resources Register for Deal Maker Live
Access Michael’s Free Blueprint to Your First Multifamily Deal Training
Learn More About Michael’s Mentoring Program
Watch the Replay of Michael’s Platform Builders Masterclass
Rich Dad Poor Dad by Robert T. Kiyosaki
The Miracle Morning: The Not-So Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
Grant Cardone on The School of Greatness EP497
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
After interviewing 100 of the top real estate investors, Steven Pesavento realized that mindset really is the foundation of investing success. So, how do the most successful investors and entrepreneurs think differently? And how can you apply these same principles to your investing efforts and achieve real-world success?
Steven is the President and Trusted Advisor at VonFinch Capital, a real estate firm out of Denver, Colorado, that focuses on curating hassle-free passive investments. He flipped 200 houses in three years before transitioning to multifamily in 2020. Steven is also the host of The Investor Mindset Podcast and the author of Principles of Success: Lessons from Top Real Estate Investors.
On this episode of Apartment Building Investing, Steven joins cohost Garrett Lynch and me to share his five success principles of top real estate investors and explain why mindset is so important to investing success. Steven describes what inspired his shift from flipping houses to multifamily and what steps he took to make the transition to commercial real estate. Listen in for Steven’s insight on what it looks like to have your mindset tested and learn to apply his success principles in the real world of real estate investing!
Key Takeaways What inspired Steven’s shift from flipping to multifamily
- Unable to scale (even with high volume)
- Benefits of securing long-term debt
What steps Steven took to transition to commercial real estate
- Find successful investors to learn from or partner with
- Study different asset classes and determine best fi
Why Steven decided multifamily was the right asset class
- Similarities between residential and multifamily
- Alignment with values makes it easier to focus
- Ideal clients asking for longer-term investments
- Historically most stable asset class in real estate
Why mindset is important to investing success
- Thoughts lead to actions which generate results
- Must believe it’s possible to succeed
Steven’s 5 success principles of top real estate investors
- View challenges as opportunities
- Ultra-focused on doing 1 thing really well
- Super-clear on what they want
- Know their purpose
- Work with great mentors and coaches
How to apply the 5 success principles in real-world investing
- Recognize that mindset = code your mind runs on
- Sit down with pen and paper to get clear on goals
- Check in on consistent basis to replace old beliefs
Steven’s experience with having his mindset tested
- First multifamily deal under contract (March 2020)
- Litigious LP asked for $800K more just before close
- Money wrapped up in deal, still under contract
Connect with Steven Pesavento The Investor Mindset
The Investor Mindset Podcast
Investor Mindset on Facebook
Steven on Facebook
Steven on LinkedIn
Steven on Instagram
Steven on Twitter
Resources Join the Nighthawk Equity Investor Club
Register for Deal Maker Live
Learn More About Michael’s Mentoring Program
Download Michael’s Free eBook: The Secret to Raising Money for Your First Apartment Building
Principles of Success: Lessons from Top Real Estate Investors by Steven Pesavento
VonFinch Capital
Never Split the Difference: Negotiating as If Your Life Depended On It by Chris Voss and Tahl Raz
Joe Fairless
Michael on The Investor Mindset Podcast EP075
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss by Ken McElroy
Start with Why: How Great Leaders Inspire Everyone to Take Action by Simon Sinek
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
A lifestyle investor doesn’t trade time for money. They buy cashflowing assets that replace their W-2 income and go on to build a life around what matters most—focusing on their family, their passions and their purpose.
So, what steps can YOU take to become a financially independent lifestyle investor?
Justin Donald is the Founder of The Lifestyle Investor, a platform designed to help people use low-risk, cashflow investing to enjoy a life of passive income NOW. He leveraged real estate to grow his net worth to eight figures in less than two years, and he shares the blueprint in The Lifestyle Investor: The 10 Commandments of Cashflow Investing for Passive Income and Financial Freedom. Justin also serves as the host of the Lifestyle Investor Podcast.
On this episode of Apartment Building Investing, Justin joins cohost Garrett Lynch and me to discuss the steps he took to replace his lifestyle income and create a life of his own design. Justin explains how he got his start investing in mobile home parks and walks us through his first three commandments for investing in income-producing assets. Listen in for insight on Justin’s mission to help investors buy our time back, achieve financial freedom and pursue a purposeful, inspiring life!
Key Takeaways What Justin covers in The Lifestyle Investor
- 10 criteria for how he invests for cashflow
- Buy time with income-producing assets
The steps to becoming a lifestyle investor
- Connect with other people on similar path
- Find mentors who’ve done what you want
How Justin defines a lifestyle investor
- Leverage assets that produce cashflow
- Create intentional life of own design
How Justin got into real estate investing
- Replace income with mobile home parks
- Diversify with other kinds of investments
Justin’s first 3 commandments of lifestyle investing
- Lifestyle first (create freedom vision)
- Reduce risk
- Find invisible deals
What investors learn in Justin’s mastermind
- Evaluate deals, advice from community
- Access to deal flow and tax strategy
The danger of herd mentality investing
- Listen to people with proven track record
- Do your own due diligence
Justin’s advice on finding income amplifiers
- Don’ be afraid to negotiate different terms
- Way deal shows up not how has to end
How long it took Justin to achieve financial freedom
- 2 years to cover family’s basic expenses
- 3 years to cover lifestyle income ($12K/mo)
What Justin wants his legacy to be
- Help people live life desire TODAY
- Show plan for how to get there
Connect with Justin Donald The Lifestyle Investor
Lifestyle Investor Podcast
The Lifestyle Investor: The 10 Commandments of Cashflow Investing for Passive Income and Financial Freedom by Justin Donald
Lifestyle Investor Mastermind
Lifestyle Investor Coaching
Resources Register for Deal Maker Live
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Robert Kiyosaki
Tony Robbins
Love Justice International
Michael on Lifestyle Investor EP028
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
The beauty of multifamily investing is that you don’t do it alone. If you’re just getting started, you can bring a deal to an experienced operator. And once you’ve built a network of your own, you can flip the script and cosponsor deals with up-and-coming syndicators, leveraging your relationships to raise money for deals and scale your business faster!
Philippe Schulligen is the Founder of Five Five Five Ventures, a firm dedicated to helping professionals navigate multifamily real estate investments. Philippe is the co-owner of 1,450 multifamily units worth $70M, and he has raised $22M in capital from investors. Philippe spent 20 years in corporate aviation before quitting his 9-to-5 for real estate, and he also serves as a mentor for The Michael Blank organization.
On this episode of Apartment Building Investing, Philippe joins cohost Garrett Lynch and me to explain how he got his start in multifamily by partnering with an experienced operator. Philippe describes how building relationships with a network allowed him to scale faster and shift from finding deals to becoming a cosponsor and capital raiser. Listen in as Philippe gets real about what he learned when an equity partner bailed on a big deal at the last minute and find out how to start building YOUR multifamily network with the help of a mentor like Philippe!
Key Takeaways How Philippe got into real estate
- Looking for additional stream of income
- Started with single family turnkeys
Why Philippe pivoted to multifamily
- Vacancies big problem with small portfolio
- Hard to scale single family business
Philippe’s approach to multifamily investing
- Partner with experienced operator
- Get educated through Deal Maker Blueprint
Philippe’s first 2 multifamily deals
- 80-unit in Memphis, found on LoopNet
- Broker call re: 168-unit on day of close
What surprised Philippe most about multifamily
- Networking led to cosponsoring deals
- Relationships allow you to scale faster
What gave Philippe the confidence to make his first offer
- Act AS IF Nighthawk had already said YES
- Understood quality of deal bringing to table
Philippe’s advice on becoming a successful cosponsor
- Offer to help other operators with due diligence
- Support by sharing network of investors
How Philippe identifies potential JV partners
- Ask what working on and if need any help
- Prerequisite = senior partner in common
What Philippe learned from a big deal that fell through
- Always have backup plan
- Don’t be first in network to try equity partner
What inspired Philippe to become a mentor
- Corporate aviation industry suffered in COVID
- Happy to share experience with others
Connect with Philippe Schulligen Five Five Five Ventures
Email philippe@555ventures.com
Philippe on The Michael Blank Mentorship Team
Resources Register for Deal Maker Live
Learn More About Michael’s Mentoring Program
Purchase Michael’s Syndicated Deal Analyzer
Access Michael’s Deal Maker Certification Training
Partner with Michael Through the Deal Desk
Download Michael’s Free eBook The Secret to Raising Money to Buy Your First Apartment Building
Join the Nighthawk Equity Investor Club
BiggerPockets
Gino Wickman on Apartment Building Investing EP243
Entrepreneurial Leap: Do You Have What It Takes to Become an Entrepreneur? by Gino Wickman
Traction: Get a Grip on Your Business by Gino Wickman
Rocket Fuel: The One Essential Combination That Will Get You More of What You Want from Your Business by Gino Wickman
LoopNet
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
You take that promotion at work because you want to provide better for your family. But then you’re working MORE hours and seeing even LESS of the people you love. So, what if you could stop trading time for money?
What if you didn’t have to decide between realizing big dreams for your family and spending quality time with them?
Lee Yoder is the Founder and Managing Partner of Threefold Real Estate Investing, a multifamily investing firm based in Lebanon, Ohio. Lee was working as a physical therapist when he started investing in real estate, and by December of 2020, he quit his job as a physical therapist to be a full-time investor. Lee also hosts the Threefold Real Estate Investing Podcast, a show that focuses on leveraging multifamily investing to enjoy a stronger relationship with your family and a better walk with Christ.
On this episode of Apartment Building Investing, Lee joins cohost Garrett Lynch and me to explain how his faith and family inspired him to pursue real estate. He describes how he gained confidence by analyzing hundreds of deals and attracted the help of a mentor to guide him through his first multifamily closing. Listen in for Lee’s take on why the Law of the First Deal works and learn how he is enjoying the flexibility to work when and where he wants as a full-time investor!
Key Takeaways What inspired Lee to pursue real estate
- Time freedom to be more present at home
- Coworker offered copy of Rich Dad…
Why Lee took a 30% pay cut to make time for real estate
- Faith and family are top priorities
- Long-term plan to bring in passive income
How Lee talked his wife into ‘the real estate thing’
- Time + believable behavior = trust
- Forced him to slow down, think through choices
How Lee shifted into the multifamily space
- Join local REIA to connect with investors
- Learn to underwrite in Apartment Focus Group
How Lee attracted the support of a mentor
- Coachable and willing to do the work
- Lead with value to get foot in door
How Lee landed his first multifamily deal
- Practice underwriting to gain confidence
- Submitted offer on deal on LoopNet
Lee’s approach to his first multifamily deal
- Jump and build parachute on way down
- Lean on mentor to make it less dangerous
How Lee raised money for his first few multifamily deals
- JV with friends and family on 16-, 8- and 10-unit
- 45-unit deal = first syndication
How Lee led a syndication without a track record
- Reputation of integrity, success in flipping
- Network with local investors in REIA
Lee’s take on why the Law of the First Deal works
- Personal confidence in team, lending process
- Brokers take you seriously
How Lee decided when to quit his full-time job
- Replace W-2 income with rental income
- Equity from sale of first 2 deals afforded runway
Lee’s top lesson learned in real estate
- Build occupied units into rehab budget
- Consider deferred maintenance costs
How Lee’s life is different now
- Mid-week morning coffee date with wife
- Flexibility to work where, when he wants
Connect with Lee Yoder Threefold Real Estate Investing
Threefold Real Estate Investing Podcast
Lee’s Free eBook: 5 Steps to Passive Income for the Full-Time Dad
Email info@threefoldrei.com
Resources Register for Deal Maker Live
Learn More About Michael’s Mentoring Program
Access Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
Join the Nighthawk Equity Investor Club
Purchase Michael’s Syndicated Deal Analyzer
Rich Dad Poor Dad by Robert T. Kiyosaki
REIA
LoopNet
BiggerPockets
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
It’s overwhelming to think through how many doors you need to quit your job with real estate. But what if I told you that all you really have to do is get one multifamily deal under your belt?
Over and over again, I’ve observed that once an investor closes on their first deal, they achieve financial freedom very quickly—and with little effort. So, how does that work?
On this episode of Apartment Building Investing, I explain the curious Law of the First Deal, describing how your first deal triggers opportunities for second and third deals in rapid, automatic succession. I share my idea of a Time Freedom Clock, discussing the typical timeline for quitting your job with multifamily. Listen in to understand why the Law of the First Deal works and learn how our new Deal Maker Certification gets you ‘deal ready’ in just 90 days!
Key Takeaways The phenomenon around the Law of the First Deal
- 1st deal hardest to get and takes average of 12 months
- 2nd and 3rd deals follow in rapid, automatic succession
The idea around my Time to Freedom Clock
- Starts when you DECIDE to get started with multifamily
- 2 to 3 years away from quitting job with real estate
Why the Law of the First Deal works
- Start attracting brokers
- Become money magnet
- Expand comfort zone
How our new Deal Maker Certification gets you ‘deal ready’
- Learn to find deals, raise money and build team
- 90 days of daily tasks put new skills into action
- Provides support with Deal Maker Mastermind
Resources Financial Freedom with Real Estate Investing by Michael Blank
Explore Michael’s Deal Maker Certification Training
Download Michael’s Deal Maker Blueprint
Join the Deal Maker’s Mastermind
Learn More About Michael’s Mentoring Program
First Deal Stories
Financial Freedom Stories
The Deal Maker Certification on Apartment Building Investing EP262
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
What if you could run a successful multifamily syndication business with other people’s money? And what if you could do it with no prior experience and achieve financial freedom in one to three years?
Here at the Michael Blank organization, we’ve helped 130-plus new investors do their first deal, using a step-by-step process we call the Deal Maker Blueprint.
On this solo episode of Apartment Building Investing, I walk you through the 8-step system to achieve financial freedom with multifamily syndications, explaining why it’s crucial to map your vision and connect with a network of likeminded peers early in your journey.
I describe how to get the skill set you need to speak to brokers and investors (in just 30 days!) and then work the system, analyzing deals and building your pipeline until you close your first deal. Listen in for insight on scaling a syndication business and learn how financial freedom leads to a life of significance!
Key Takeaways How I respond to the common objections re: multifamily
- You don’t need real estate experience
- You don’t need any of your own money
- Just focus on getting your first deal
The Deal Maker Blueprint Step #1—Map Your Vision
- Calculate your freedom number
- Develop AM routine (affirmations, visualization)
The Deal Maker Blueprint Step #2—Get Connected
- Join support network, e.g.: mastermind
- Recruit advisor to hold you accountable
The Deal Maker Blueprint Step #3—Get the Skills
- Clarify size and location of first deal
- Analyze 5 deals and create sample deal package
- Recruit lender and property manager to team
The Deal Maker Blueprint Step #4—Work the System
- Analyze deals
- Talk to potential investors
The Deal Maker Blueprint Step #5—Build Your Pipeline
- Stay committed to activity vs. outcome
- Stick with it as long as it takes
The Deal Maker Blueprint Step #6—Close the Deal
- Submit LOI and negotiate offer
- Due diligence, secure financing and raise money
The Deal Maker Blueprint Step #7—Grow and Scale
- Law of First Deal attracts more deals, investors
- Build platform to market syndication business
The Deal Maker Blueprint Step #8—Make a Difference
- Financial freedom unlocks your true purpose
- Life of significance = help other people
Resources Download Michael’s Deal Maker Blueprint
Join the Deal Maker’s Mastermind
Learn More About Michael’s Mentoring Program
Explore Michael’s Deal Maker Certification Training
Watch the Replay of Michael’s Platform Builders Masterclass
Financial Freedom with Real Estate Investing by Michael Blank
REIA
Mint
Financial Peace University
Affirmations on Apartment Building Investing EP247
The Miracle Morning: The Not-So Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
The (6-Minute) Miracle Morning
Syndicated Deal Analyzer
Building a Platform on Apartment Building Investing EP237
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
If you can see it, you can be it. And as more female multifamily investors speak up about what they are doing, it gives other women permission to pursue real estate too. To that end, Elizabeth Faircloth is creating a community where women investors can get support the way they need it.
Elizabeth is the Cofounder of the DeRosa Group, a multifamily investing firm on a mission to transform lives through real estate. She and her husband Matt manage a portfolio of 1,000 units worth $60M up and down the east coast. Liz is also the Co-creator of The Real Estate InvestHER, a community that empowers women real estate investors to live a financially free and balanced life.
On this episode of Apartment Building Investing, Liz joins cohost Garrett Lynch and me to offer advice for couples on aligning their goals early on. She explains how to delineate roles in a real estate business partnership and why building community is so important. Listen in for Liz’s insight on increasing the number of women investors and learn how she features female role models through The Real Estate InvestHER platform.
Key Takeaways How Liz got into real estate
- Read Rich Dad… and introduced husband to idea
- Invested in first duplex together 15 years ago
Liz’s advice for couples on aligning your goals
- Have conversations about what you value
- Attend personal growth weekends together
How to delineate roles in a business partnership
- Consider individual skills and experience
- Factor in passion and personality
Why it didn’t work the first time Liz left her W-2 for real estate
- Market crashed and didn’t delineate roles correctly
- Too many different strategies (lack of focus)
What inspired The Real Estate InvestHER community
- Partnership with Andresa on deals, mastermind
- Create safe space to support other women
How Liz scaled her community to 40 Meetup groups
- Use Dan Hanford model, Meetup Pro account
- Partner set up portal with agendas and scripts
Why building community is so important to Liz
- Research on women (longevity, financial literacy)
- Passion around empowering women to invest
Liz’s insight on the small number of women investors
- Societal conditioning to fly under radar
- Must highlight journeys, lift each other up
Liz’s role with the DeRosa Group
- Assemble team, lead STR acquisitions
- Oversee investor relations
Liz’s advice for aspiring multifamily investors
- No overnight success, takes time and energy
- Stay the course and don’t give up
Connect with Elizabeth Faircloth DeRosa Group
DeRosa Group on YouTube
The Real Estate InvestHER
The Real Estate InvestHER Podcast
The Real Estate InvestHER Community on Facebook
Resources Learn More About Deal Maker Live
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
The Only Woman in the Room: Knowledge and Inspiration from 20 Women Real Estate Investors compiled by Ashley L. Wilson
Elizabeth on BiggerPockets EP203
REIA
Rich Dad Poor Dad by Robert T. Kiyosaki
CASHFLOW Game
Awaken the Giant Within: How to Take Immediate Control of Your Mental, Emotional, Physical and Financial Destiny by Tony Robbins
Landmark Forum
Andresa Guidelli
Dan Hanford
Meetup Pro
Matt Faircloth on BiggerPockets
NMHC
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
So, you want to be a multifamily investor, but… You’ve never done a deal before. You don’t feel comfortable approaching potential partners. The pandemic has shut down all of the usual networking events. And you live six time zones ahead of the market where you’d like to invest.
But what if all of these challenges are really just opportunities to grow?
Suzy Sevier and Michael Barnhart are the husband-and-wife team behind Adventurous Real Estate Investors, a multifamily firm dedicated to helping avid travelers and adventure seekers create passive income and time freedom through apartment building investing. Suzy and Michael got interested in real estate during the lockdown, and in nine months, they have attended 10 virtual events, booked 600 networking calls, put together an experienced team and built a portfolio of 88 units—without leaving their home in the UK!
On this episode of Apartment Building Investing, Suzy and Michael join cohost Garrett Lynch and me to share their genius system for turning virtual events into networking opportunities and following up with the people they meet. They explain why they built a thought leadership platform right away and describe what kind of educational content they create. Listen in for insight on how Suzy and Michael turn roadblocks into opportunities, making the best of the situation they’re in to make their dream of financial freedom a reality!
Key Takeaways How Suzy & Michael got interested in real estate
- Read Multiple Streams of Income during lockdown
- Took advantage of time off to network
How to turn virtual events into networking opportunities
- Take screenshot and follow up on LinkedIn
- Hop on calls and track potential partners
How Suzy & Michael found virtual real estate events
- Ask contacts about upcoming or favorite events
- Intentional search through social media
Suzy & Michael’s system for following up with contacts
- Ask about goals, send personalized follow-up email
- Guide to online thought leadership platform
What kind of educational content Suzy & Michael create
- Blog on mindset, market trends and investing
- Promote on social and send monthly email
When Suzy & Michael found the time for investing
- Work until 6pm UK time and then start networking
- 20+ calls/week = 600 calls in last 9 months
The team of 6 Suzy & Michael created from networking
- Partner to serve as boots on the ground in US
- Capital raiser, KP and experienced syndicator
How Suzy & Michael got past their fears of networking
- Remember that everyone starts in same place
- Ask to host meetings for W-2 job as practice
What it’s like for Suzy & Michael to work together
- Stepped on each other’s toes at first
- Things improved after clearly defining roles
Why Suzy & Michael focused on content right away
- Didn’t have deal, must prove selves different way
- Mimic successful investors they aspire to be
Suzy & Michael’s advice for aspiring multifamily investors
- Clearly define goals, get 1% better every day
- Devote time to ALL aspects of business
Connect with Suzy Sevier & Michael Barnhart Adventurous Real Estate Investors
Michael & Suzy’s Free Checklist
Resources Partner with Michael Through the Deal Desk
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Explore Michael’s Platform Builders Framework
Learn More About Deal Maker Live
Multiple Streams of Income: How to Generate a Lifetime of Unlimited Wealth! by Robert G. Allen
BiggerPockets
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
When you have a high-paying corporate job, it can be tough to walk away. But if time freedom is a priority for you, and you’re willing to take action, you absolutely CAN break out of the rat race and replace your W-2 income with multifamily real estate.
Jenny Gou and Steven Louie are the Cofounders of Vertical Street Ventures, a multifamily investment firm dedicated to helping people achieve financial freedom through passive investing in real estate. Steve is an experienced multifamily investor with a portfolio of 2,500-plus units, and he recently quit his corporate job to focus on real estate full time. Jenny left the rat race early in 2020 with a portfolio of single-family homes, and since then, she has gone from zero to 800 multifamily units.
On this episode of Apartment Building Investing, Jenny and Steve join me to discuss how they broke out of corporate America, describing the mindset of action and focus on family that drove their decision to walk away. They explain how their respective backgrounds in sales benefit their real estate business, sharing how it gives them a competitive edge in sourcing opportunities. Listen in for insight on the different roles on a multifamily team and learn how to achieve scale by partnering with other investors.
Key Takeaways How Steve & Jenny met and became partners
- Steve met Jenny’s husband at local meetup
- Similar values, shared background in sales
What made Steve a good mentor for Jenny
- Track record of success in multifamily
- Allowed to sit in on meetings
Why Steve agreed to partner with Jenny
- Needed support on operations side
- Respects Jenny’s ability to assess people
What appeals to Jenny about multifamily operations
- Learn by doing to accelerate growth
- Used to leading teams, managing projects
How Jenny benefits from being a full-time investor
- Opportunity to learn quickly
- Able to blow past goals
The roles on a multifamily real estate team
- Acquisitions or business development
- Asset management (execute business plan)
- Underwriting
- Investor relations
Why Steve & Jenny decided to partner NOW
- Quit rat race to prioritize family
- Scale portfolio to replace income
What inspired Steve to leave a good corporate gig
- Mindset of action, right mentors
- Tax advantages of real estate
How a sales background helps multifamily investors
- Understand importance of relationships
- Competitive edge in sourcing opportunities
What Steve & Jenny would tell their younger selves
- House hack rather than buy first house
- Don’t have to be landlord to be investor
Connect with Steven Louie & Jenny Gou Vertical Street Ventures
Steven on LinkedIn
Jenny on LinkedIn
Resources Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Explore Michael’s Platform Builders Framework
Feedspot’s Top 40 Apartment Investing Podcasts
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
CASHFLOW Quadrant: Rich Dad’s Guide to Financial Freedom by Robert T. Kiyosaki
CBRE
ABI Multifamily
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Without the high-net-worth individuals who put money in our deals, we wouldn’t have a syndication business. And yet, most of us are terrible at showing our appreciation to the passive investors we work with. When a deal goes through, we send them a mug or hat with our logo on it and call it a day. But does that reflect what the relationship is actually worth to us? Is there a better way to do gifting?
John Ruhlin is the Cofounder of Giftology Group, a strategic gifting consultancy that helps sales leaders, business owners and executives unlock loyalty and turn clients into raving fans. He founded Giftology Group in college to market Cutco Cutlery as a high-end corporate gift to companies of all sizes, and today, John is the #1 distributor in Cutco’s 60-year history. John is also a sought-after keynote speaker and author of Giftology: The Art and Science of Using Gifts to Cut Through the Noise, Increase Referrals, and Strengthen Retention.
On this episode of Apartment Building Investing, John joins cohost Garrett Lynch to explain how he came to dominate the Cutco leaderboard using gifting to build relationships. He introduces us to the giftology system, describing how he leverages generosity to turn his best clients into salespeople and raving fans. Listen in for John’s insight on how much to allocate for gift-giving and learn how YOU can get a 10X return by investing in the people who make your business profitable.
Key Takeaways How John came to dominate the Cutco leaderboard
- Learned relationship-building from mentor Paul
- Sent gifts to land meetings with big-time CEOs
John’s insight on the value of relationship-building
- Make decisions emotionally, justify with logic
- Gifting = mechanism for generating emotion
John’s concept of a return on relationship
- Initial $7K investment in gift to Cameron Herold
- $25K over 10 years = 50X return on relationship
The key ingredients of John’s giftology system
- Include handwritten note, name family members
- Personalize gift and be intentional about timing
What makes John’s giftology system work
- Generates like, trust and keeps top-of-mind
- People crave human-to-human relationship
How much a business should allocate toward gift-giving
- Reinvest 5% to 15% of net profits in relationships
- Invest in people already work with at some level
Why giftology requires a long-term commitment
- Genuine generosity vs. manipulation tactic
- Turn best clients into salespeople
John’s top examples of the benefits of giftology
- Invited to appear on Gary Vaynerchuk show
- 107% increase in referrals for John Bowen
Connect with John Ruhlin Giftology Group
Download the Giftology System
Email john@giftologygroup.com
Resources Join the Nighthawk Equity Investor Club
Learn More About Michael’s Mentoring Program
Giftology: The Art and Science of Using Gifts to Cut Through the Noise, Increase Referrals, and Strengthen Retention by John Ruhlin
Entrepreneurs’ Organization
Jab, Jab, Jab, Right Hook: How to Tell Your Story in a Noisy Social World by Gary Vaynerchuk
John on Marketing for the Now with Gary Vaynerchuk
Artifact Mug
The 5 Love Languages
Young Presidents’ Organization
Vistage
Books by Don Yaeger
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
There’s a lot of pressure on high school grads to go to college. Without a degree, the story goes, we can’t earn good money. But Cody Davis realized he didn’t need earned income if he could make passive income with real estate. And he didn’t let little things like being 19 years old and having no money or experience get in his way.
Cody is a broker with Blackwell Real Estate in Tacoma, Washington, and multifamily investor with a portfolio of 24 units. And he just turned 21. Cody dropped out of college to get his real estate license just two years ago, and since then, he’s closed on two 12-unit deals—without using any of his own money!
On this episode of Apartment Building Investing, Cody joins me to explain how he overcame the pressure to go to college and what inspired his mentor to take Cody on. He shares his unique approach to cold calling, discussing why sellers take him seriously despite his youth and how he’s building the skill of raising money. Listen in to understand how Cody used seller financing to do his first two deals and find out how he achieved financial freedom before he was old enough to buy a drink.
Key Takeaways How Cody got interested in real estate
- Family friend gifted Rich Dad Poor Dad
- Make good money without college
How Cody overcame the pressure to fit in with friends
- Don’t need degree if earning passive income
- Partying = unnecessary distraction
How Cody found a mentor in Robert Slattery
- DM re: real estate post on Facebook
- All-in and willing to work for free
What Cody would have done without a mentor
- Plan to house hack duplex
- Work multiple jobs to qualify for loan
Why Cody is willing to broker deals for others
- Didn’t qualify with banks early on (cash poor)
- Learn from investors and their peer group
How Cody overcame the fear of cold calling
- Predict worst-case scenarios
- Gets easier with repetition
Cody’s first $1.1M 12-unit seller financing deal
- Raise 10% down and partner with mentor
- 30-year mortgage with no balloon
Why sellers take Cody seriously despite his age
- Phone conversation before meet in person
- Age irrelevant if know how to negotiate
Cody’s second $680K 12-unit seller financing deal
- Value-add opportunity (off-market)
- Promissory note for $120K down
- $2K/month cashflow from day one
Cody’s experience with the Law of the First Deal
- Earned credibility with investors
- Build skill to raise equity for others in office
How sellers benefit from seller financing
- Splits up tax liability over number of years
- Income without headache of management
Cody’s advice for aspiring multifamily investors
- Get good at numbers, learn Excel
- Show how deal is win-win for everyone
Connect with Cody Davis Cody on Instagram
Email cody@blackwellre.com
Resources Join the Nighthawk Equity Investor Club
Learn More About Michael’s Mentoring Program
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
CASHFLOW Board Game
The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Timothy Ferriss
Be Obsessed or Be Average by Grant Cardone
Robert Slattery at Blackwell Real Estate
BiggerPockets Podcast
Gino Wickman on Apartment Building Investing EP243
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
When your WHY is big enough, you find a way. It doesn’t matter that you’re brand new to real estate investing. It doesn’t matter that you don’t have a college degree. And it doesn’t matter that you don’t have any money.
Sadhana Sabharwal is the real estate investor and coach behind Single Mom Millionaire and The No Money Down Academy training course. Sadhana was a recently-divorced, single mother of three boys when she got into real estate, and in four years, she built a portfolio of 46 doors. Sadhana’s focus is on buying, renovating and holding properties for positive cashflow, and she specializes in creative financing strategies that leverage other people’s money to buy real estate.
On this episode of Apartment Building Investing, Sadhana joins cohost Garrett Lynch and me to explain how a painful divorce inspired her real estate investing journey. She shares her approach to creative financing, describing how she funds deals with seller financing and why networking was so valuable in helping her learn the business. Listen in for insight on finding your WHY and learn how Sadhana’s positive mindset influences her success!
Key Takeaways How Sadhana’s real estate investing journey began
- Husband left her for another woman
- Needed way to support three boys
How Sadhana got interested in real estate investing
- Work as law clerk, introduced to investor
- Invited to join small real estate club
How Sadhana funded her first deals with no money
- Open line of credit against house
- Home Depot card for renovations
Sadhana’s initial plan for real estate investing
- Find ways to buy without using own money
- Renovate, refinance and repeat process
How Sadhana overcame being female and a minority
- Joint venture with experienced investor
- Build trust with consistent networking
Sadhana’s advice on getting started with real estate
- Make use of free resources (Google, YouTube)
- Invest in real estate investing courses
- Ask questions at networking events
Sadhana’s favorite creative financing techniques
- BRRRR strategy
- Seller financing
How Sadhana got over the fear of asking for help
- Remember your WHY
- No choice but to figure it out
What needs to happen to have more women investors
- Give themselves more credit
- Role models and strong WHY
The top lessons Sadhana learned from her divorce
- Don’t make your life miserable making his hell
- Being happy and grateful is your choice
Connect with Sadhana Sabharwal Single Mom Millionaire
The No Money Down Academy
Resources Join the Nighthawk Equity Investor Club
What’s the Best Investment: The Stock Market or Real Estate?
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
As a passive investors, we understand the importance of building a diverse portfolio. And while multifamily is the best investment on the planet, it doesn’t hurt to explore our options, especially when BIG opportunities present themselves. So, what are the opportunities in oil right now? And how do we choose a project that is likely to succeed?
Bob Burr is the driving force behind Burrite, an investment firm that focuses on the acquisition and consolidation of oil and gas properties. A 47-year veteran of oil and energy finance, Bob is dedicated to helping the industry bounce back from the COVID crisis by providing the bridge capital necessary to weather the current economic storm. Bob is currently raising money for the BR Dome property, a project that involves recompleting 247 existing wells with room for 200 more.
On this episode of Apartment Building Investing, Bob joins cohost Garrett Lynch and me to explain how he set himself up for buying opportunities when oil prices dropped and share the tax advantages of investing in oil. He walks us through the parallels between multifamily and oil, discussing the importance of putting together an experienced team that can identify and operate value-add projects. Listen in for Bob’s insight on why a passive investor should consider adding oil to their portfolio (even in the Biden era) and find out how YOU can get Bob’s Q&A video by shooting an email to admin@burrite.com.
Key Takeaways Bob’s extensive background in the oil business
- Started with brother in 1973
- Funding projects through syndication
How Bob set himself up for buying opportunities in COVID
- People leave business as price of oil went negative
- Buy cashflowing wells and wait for cycle to go up
Bob’s BR Dome project in Houston
- 247 existing wells with room for 200 more
- Note offering with interest rate of 10% to 18%
What Bob does to attract and maintain a strong team
- Take care of people in loving business culture
- Make it rule to thank team every day
The lessons Bob has learned through many market cycles
- Maintain integrity in relationship with partners
- Weather storm, make $ when cycle comes back
Bob’s insight on buying undervalued assets
- Pick cashflowing wells not being run efficiently
- Reduce lifting cost to $3.50/barrel
How it works to invest in an oil project
- Operator leases mineral rights from landowner
- Operator and investors get 75% of net revenue
Why Bob is optimistic about oil in the Biden administration
- Shutdown of fracking doesn’t impact his business
- Still make good money at oil price of $25/barrel
The parallels between investing in oil and real estate
- Make money by adding value with good operator
- Tax advantages (write-off up to 90% passive loss)
Why a passive investor should add oil to their portfolio
- 65% shot at making well from good prospect
- BR Dome = 90% shot (cherry pick best spots)
How to learn more about investing in Bob’s oil projects
- Email admin@burrite.com
- Request Q&A video
Connect with Bob Burr Burrite
Email admin@burrite.com for a link to Bob’s Q&A Video
Resources Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Bob’s BR Dome Project
Brad Simmons at Burrite
Justin Burr at Burrite
Dale Carnegie
Ed Hirs at Burrite
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
In real estate school, they teach you that the money is made when you buy. But that just isn’t true for apartment buildings. Yes, you have to buy right. But in the multifamily space, the money is made in the execution of your plan to increase revenue and reduce expenses. And the asset manager is responsible for making sure that happens.
Daniel Simpson serves as Asset Manager at Nighthawk Equity, the investing arm of The Michael Blank organization. He has nearly 30 years of experience in multifamily, residential and commercial property management, developing an expertise in strategic business forecasting, budget allocation, complex data analysis and property financials. Daniel has an impressive track record of acquiring, renovating and repositioning C-class value-add properties in as little as 18 months.
On this episode of Apartment Building Investing, Daniel joins me to share his hands-on approach to asset management, describing what he does on his monthly site visits and how he helps property managers optimize revenue and reduce expenses. He walks us through the metrics he uses to identify property management issues and explains why all problems come down to people. Listen in for Daniel’s insight on the limited role property managers should play in construction projects and learn when you should consider hiring a full-time asset manager!
Key Takeaways Daniel’s insight on the fundamentals of asset management
- Ensure investors’ goals met, returns on target
- Provide guidance to property managers
How often Daniel meets with property managers
- Speak with regional manager once/week minimum
- Unannounced visit to site managers once/month
When to take a hands-on approach with property managers
- High turnover rate
- Higher than normal vacancy rate
- Lack of success in leasing units
- Collection issues
- Move-outs not entered timely
Daniel’s take on why all problems come down to people
- Tenants rent from STAFF vs. apartment itself
- Asset manager’s job = find breakdown in system
What metrics Daniel watches closely as an asset manager
- Consistency in NOI
- Occupancy (physical and economic)
- Delinquency
- Live PNL
- Closing ratio
How to identify problems with property management
- Look at comps and communicate that with staff
- Secret shops to evaluate leasing staff’s performance
Daniel’s process for optimizing a multifamily business
- Start with maximizing revenue (add $5 to $10/unit)
- Minimize expenses next, reevaluate contracts
How Daniel thinks about managing expenses
- Ask questions about potential overspending
- Audit line items to keep property managers honest
What Daniel does on his monthly site visits to a property
- Walk vacant units, talk with property manager
- Visit with leasing agents and maintenance staff
- Verify that move-in files match what’s in system
Why property managers should not handle construction
- Distraction from filling units and collecting rent
- Better to hire GC or specialist (local or in-house)
The role a property manager should play in construction
- Go to early meetings, input on scope and timeline
- Hand GC keys needed to carry out project
What an average syndicator can do if they can’t afford a GC
- Use construction manager (part of management co)
- Build 5% in budget for specialist to oversee project
When it’s time to hire an asset manager for your business
- Depends on skill set of investors in joint venture
- As soon as you can afford it
Connect with Daniel Simpson Nighthawk Equity
Email daniel@nighthawkequity.com
Resources Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
CLASS Leasing
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Yes, work ethic and taking action are key in becoming a successful real estate investor. But mindset is even more important. Before you can start working toward the life you want, you have to conquer middleclass thinking. You have to stop following the money and start making money follow YOU.
Keith Weinhold is the real estate educator, entrepreneur and investor behind Get Rich Education, a platform designed to help people achieve financial freedom through real estate investing. An active member of the Forbes Real Estate Council, Keith is known for his expertise around buy-and-hold real estate, and he transacts 100-plus properties per year. Keith is also a bestselling author and host of the wildly popular Get Rich Education Podcast, a show with more than 3M downloads in 188 countries.
On this episode of Apartment Building Investing, Keith joins cohost Garrett Lynch and I to explain why mindset is crucial in becoming a successful real estate investor, describing how to overcome middleclass thinking and make other people’s money work for you. He weighs in on why delayed gratification is overrated, challenging us to cultivate an abundance mentality and start living the life we want right now. Listen in for Keith’s insight on the ‘shadow demand’ in the housing market and learn why inflation is a good thing for YOU as a multifamily investor.
Key Takeaways Why mindset is crucial in becoming a successful real estate investor
- Don’t live below means but EXPAND means
- Make outsized decisions to live outsized life
What inspired Keith to move to Alaska and invest in real estate
- Go after what you want or you’ll never have it
- Rather than following money, make money follow you
Why so many people settle and never take action to invest
- Peer group reinforces doing safe thing
- ‘To change yourself, change your five’
The first steps to improving your quality of life with real estate
- Get honest about what you really want
- Live beneath means vs. live well
The problem Keith sees with middle class thinking
- Work for money and have little left to invest
- Make money work for you (vs. other people’s money)
How real estate makes other people’s money work for you
- Tenant’s money for income
- Bank’s money for leverage
- Government money at scale
Why more people aren’t investing in real estate over Wall Street
- Best product but worst marketing
- Lack of financial education
Keith’s mission through the Get Rich Education platform
- Financial freedom through real estate
- Live better and give better (abundance mindset)
Why Keith thinks delayed gratification is overrated
- Subpar quality of life until old enough to retire
- 401(k) = life deferral plan
Why the property is the 4th most important thing in investing
- Decide what want real estate to do for you FIRST
- Carefully consider market and team of professionals
Keith’s short-term outlook on the real estate market
- Strict criteria to qualify for eviction moratoriums
- 95%+ rent collections
Keith’s insight on shadow demand in the real estate market
- More household formation as economy recovers
- Demand increase with population growth, immigration
The 3 ways inflation is good for real estate investors
- Price inflation
- Debt debasement
- Cashflow enhancement
Connect with Keith Weinhold Get Rich Education
Get Rich Education Podcast
Resources Learn More About Michael’s Mentoring Program
Keith on Apartment Building Investing EP034
Rich Dad
Jim Rohn
Ted Benna on Get Rich Education EP197
Pew Research Statistics on Young Adults Living with Parents
US Bureau of Labor Statistics Consumer Price Index
Keith’s Inflation Triple Crown Video
Keith’s Free eBook 7 Money Myths That Are Killing Your Wealth Potential
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Raising capital is at the heart of multifamily syndication. But how do you build relationships with prospective investors and make them feel comfortable enough to trust you with their hard-earned money?
David Meilan is the Director of Investor Relations at Nighthawk Equity, the investing arm of The Michael Blank organization. He has worked in the multifamily space since 2018, raising over $100M in investor capital for a range of commercial syndications. David excels at maintaining relationships with investors, and he is committed to helping people achieve financial freedom through passive investing in multifamily real estate.
On this episode of Apartment Building Investing, David joins me to discuss the importance of building relationships with investors and explain what he is doing to turn prospects into raving fans of Nighthawk Equity. He walks us through the steps of raising capital for a deal, describing how we make the process easy for investors and stay in communication after close. Listen in for David’s insight on producing content for potential investors and learn how to leverage strong investor relations to raise money for YOUR next multifamily deal!
Key Takeaways How to turn prospective investors into raving fans
- Provide great multifamily investment opportunities
- Communicate early and often, be responsive
- Build trust with educational content (guide through process)
Why it’s important to build a relationship with investors
- One-on-one call to get to know investors and build trust
- Tailor opportunities to investor profile and preferences
How David tracks his conversations with investors
- Keep notes during call re: what investor is looking for
- Document on spreadsheet and in ActiveCampaign
David’s insight on the process of producing content for investors
- Ultimate goal of helping investors on financial journey
- Batch videos based on FAQs, outsource production
How Nighthawk goes above and beyond on investor relations
- Communicate re: upcoming opportunities
- Inform how property is performing (update webinars)
What Nighthawk is doing to recognize strategic investors
- Build out investor club tiers
- Reward those who put large amounts of capital in deal
What a Nighthawk Equity capital raise campaign looks like
- Email investors with preliminary info re: opportunity
- Webinar to talk about deal in depth (2 weeks later)
- Fill out paperwork, e.g.: PPM and company agreement
- Receive funding instructions and follow through
How Nighthawk Equity streamlines the investing process
- Managed through online investor portal
- Automates workflow (easy for investors + syndicator)
How David maintains investor relations once a deal closes
- 3 monthly follow-up investor update webinars
- Monthly email update for duration of investment
- Respond to investor questions within 24 hours
David’s advice for syndicators around raising capital
- Provide investors with sense of comfort
- Set self apart by making them feel safe
Connect with David Meilan Nighthawk Equity
David on LinkedIn
Resources Join the Nighthawk Equity Investor Club
Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
Register for Michael’s Platform Builders Training
Learn More About Michael’s Mentoring Program
ActiveCampaign
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
They say that your network is your net worth. And Pat Hiban has proven this to be true over and over again. Making connections through networking and mastermind groups, he has established multiple business partnerships and created more than 30 passive income streams! So, how can we leverage what Pat has learned about building relationships to reach the next level of success in our own lives?
Pat is the Cofounder of GoBundance, a business mastermind for healthy, wealthy, generous men who want to lead EPIC lives. A former top-performing real estate agent, Pat was the #1 RE/MAX agent in the world in 2004 and earned the same honor with Keller Williams in 2006, selling more than 4,000 homes worth over one billion dollars in the course of his career. Pat is also the former host of the Real Estate Rockstars Podcast and the author of 6 Steps to 7 Figures and Tribe of Millionaires.
On this episode of Apartment Building Investing, Pat joins cohost Garrett Lynch and I to discuss what inspired his initial goal to become a millionaire and share the key lessons from 6 Steps to 7 Figures. He explains how his definition of success has evolved to focus on relationships and describes the power of joining a mastermind community. Listen in for Pat’s insight around building on your successes and learn how networking with other high-performing entrepreneurs can take YOUR business to the next level!
Key Takeaways What inspired Pat to become a millionaire
- Boost to self-esteem
- More money = less stress
How Pat’s definition of success has changed
- Ego-driven to make money from 21 to 35
- Relationships + time most valuable now
Pat’s key lesson from 6 Steps to 7 Figures
- Build on successes (not from ground up)
- Go deep in one area rather than wide
The key to Pat’s ongoing success
- Naïve enough to keep moving forward
- Believe in self and be coachable
Pat’s insight around the value of relationships
- 30+ opportunities from mastermind
- One relationship away from next level
The idea of horizontal income
- Things that pay you sideways
- Multifamily, businesses, etc.
What Pat is investing in right now
- Cryptocurrency (Bitcoin and Ethereum)
- VC funds and private companies
- Single- and multifamily real estate
Connect with Pat Hiban Tribe of Millionaires
GoBundance
Pat on LinkedIn
Resources 6 Steps to 7 Figures: A Real Estate Professional’s Guide to Building Wealth and Creating Your Own Destiny by Pat Hiban
Tribe of Millionaires: What If One Choice Could Change Everything? by David Osborn and Pat Hiban
Real Estate Rockstars Podcast
David Osborn
Tim Rhode
We Study Billionaires
Real Vision Podcast
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
We’ve always said that multifamily is recession-proof, and 2020 gave us a chance to prove it. While the stock market and other asset classes suffered in the pandemic, apartment buildings continue to provide steady cashflow and a safe place to keep our money growing for the long term. So, what can syndicators do to get this message to more people and build a successful real estate investing business?
On this episode, I’m sharing the Best of 2020 on the Apartment Building Investing Podcast, beginning with last year’s biggest news—the Coronavirus pandemic. We revisit Drew Kniffin’s thoughts on the risk COVID poses for passive investors, Drew Whitson’s take on why multifamily is still the strongest asset class in real estate, and Russell Gray’s insight on how to protect your wealth in a crisis.
We look back at my conversations with Pat Flynn and Amy Porterfield on marketing to investors online and my interview with Gino Wickman around what it takes to be a successful entrepreneur. Listen in for master deal maker Garrett Lynch’s insight on choosing the right market and get inspired by BiggerPockets VP Brandon Turner’s approach to achieving BIG things with tiny action.
Key Takeaways How COVID is likely to impact passive investors in multifamily
- Unless already run poorly, virus won’t bankrupt property
- Much better option than stock market (30% paper loss)
Why multifamily is still the strongest asset class in real estate
- Performs well through economic disruption
- Office buildings, retail and medical suffered in COVID
What makes real estate a solid investment (even in a crisis)
- Fits criteria of being both REAL and ESSENTIAL
- Governments support housing, energy and healthcare
What to look for in a multifamily real estate market
- Resources available to operate and steady dealflow
- Population, job and overall economic growth
Who should consider building a thought leadership platform
- EVERYONE can build personal brand online
- Place to announce, connect and prove authority
Why an email list is more valuable than social media followers
- Algorithms change, you don’t own social platforms
- Email list = YOUR asset for growing relationships
How to choose the right lead magnet for your audience
- IRRESISTIBLE piece of free content (trade for email addy)
- What avatar needs to believe to do business with you
The eight critical mistakes most entrepreneurs make
- Not having vision
- Hiring wrong people
- Not spending time with your people
- Not knowing who customer is
- Not charging enough
- Not staying true to your core (shiny object syndrome)
- Not knowing your numbers
- Not crystalizing roles and responsibilities
The eight disciplines for increasing your chances of success
- Clarify vision
- Decide if you’re ‘partner person’
- Bigger problem = more success
- Get feedback early and often
- First plan will not be final plan
- Work hard (really hard)
- Take criticism with grain of salt
- See it every night
The two kinds of ‘partner people’ in entrepreneurship
- Equal partners
- Give equity but maintain controlling interest
Why it’s crucial to have a clear vision for your business
- Know where you want to be and take next tiny step
- Ask what’s cool and write as if you’re already there
Connect with Drew Kniffin Drew at Nighthawk Equity
Drew on LinkedIn
Connect with Drew Whitson Drew at the Michael Blank Mentoring Program
Drew on LinkedIn
Connect with Russell Gray The Real Estate Guys
Russell on LinkedIn
Connect with Garrett Lynch Garrett at Nighthawk Equity
Garrett on LinkedIn
Connect with Pat Flynn Pat’s Website
Pat at Smart Passive Income
Connect with Amy Porterfield Amy’s Website
Marketing Made Easy Podcast
Connect with Gino Wickman Entrepreneurial Leap
Entrepreneurial Leap: Do You Have What It Takes to Become an Entrepreneur? by Gino Wickman
Connect with Brandon Turner Open Door Capital
BiggerPockets Podcast
The Book on Rental Property Investing: How to Create Wealth with Intelligent Buy and Hold Real Estate Investing by Brandon Turner
Resources Drew Kniffin on Apartment Building Investing EP208
Drew Whitson on Apartment Building Investing EP228
Russell Gray on Apartment Building Investing EP226
Garrett Lynch on Apartment Building Investing EP231
Pat Flynn on Apartment Building Investing EP210
Amy Porterfield on Apartment Building Investing EP212
Gino Wickman on Apartment Building Investing EP243
Brandon Turner on Apartment Building Investing EP221
Bryce Stewart on BiggerPockets Podcast EP276
Vivid Vision: A Remarkable Tool for Aligning Your Business Around a Shared Vision of the Future by Cameron Herold
Find Out More About Deal Maker Live
Learn More About Michael’s Mentoring Program
Register for Michael’s Platform Builders Workshop
What’s the Best Investment: The Stock Market or Real Estate?
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Email digital@themichaelblank.com
The most successful real estate investors find creative ways to increase their NOI either by adding amenities for residents or reducing expenses. But there is a new opportunity for property owners that you may not be aware of. What if you could earn more money by leasing out a portion of your building for a 5G cell phone tower?
Hugh Odom is the Founder and President of Vertical Consultants, a telecom consulting firm that has advised major corporations such as Walmart, McDonald’s and Disney, as well as government institutions like the Department of Veterans Affairs, the New York Housing Authority and the United States Postal Service. Hugh served as an attorney for AT&T for 11-plus years, and today, he leverages his expertise in the telecom industry to help real estate investors earn additional income through cell tower leases.
On this episode of Apartment Building Investing, Hugh joins cohost Garrett Lynch and I to explain why the cell tower industry is like oil 100 years ago, discussing what is driving the need for more cell towers and how lucrative a cell tower lease can be for investors. Hugh shares the do’s and don’ts of negotiating a cell tower lease, describing how it differs from a real estate transaction and what Hugh’s team does to help property owners with the process. Listen in to understand why cell tower investing is a safe bet for the long term and learn how YOU can take advantage of the opportunity to be a cell tower landlord!
Key Takeaways Why the cell tower industry is like oil 100 years ago
- Long-term agreements to lease land from property owners
- Cell companies reach out if property in right location
What is driving the need for more cell towers
- 5G technology requires additional infrastructure
- Densification makes service faster, more instantaneous
- From 400K to 1.5M cell sites by 2025
The do’s and don’ts of negotiating a cell tower lease
- Don’t treat as real estate transaction (e.g.: market rate)
- Do determine value provider will get from space
How lucrative a cell tower lease agreement can be for investors
- Typically increases value of property by $1M
- Renegotiate contract as provider’s revenue from site goes up
How Vertical Consultants helps property owners
- Level playing field (understand value you’re offering)
- Source leases for large commercial property owners
How to take advantage of this opportunity in cell towers
- Buy properties with existing towers or rights to cell towers
- Bring experts in to renegotiate lease
How 5G towers differ visually from traditional cell towers
- Traditional tower = 150 feet tall, up to 5K ft2
- Traditional rooftop antenna up to 500 ft2
- 5G tower = 50 ft2 with small antenna box
The opportunity to become an operator of cell towers
- Pay property owners in dead spots for right to lease
- Buy for long-term cashflow or flip
Why cell tower investing is a safe bet for the long term
- Similar to highway system (infrastructure, not technology)
- Change out equipment as tech improves
Who Hugh serves through Vertical Consultants
- Property owners with existing agreements
- Owners who’ve been approached by cell company
- Hotels, self-storage and shopping center developers
Connect with Hugh Odom Vertical Consultants
Resources Join the Nighthawk Equity Investor Club
Learn More About Michael’s Mentoring Program
American Tower
Crown Castle
SBA Communications
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
So, you’ve done a multifamily deal or two, and your friends and family are maxed out in the money department. You’re ready to take on bigger and bigger deals, but you’re struggling to raise capital. What is the best way to grow your investor base?
Dr. Jeff Anzalone is a full-time practicing periodontist and the creator of Debt-Free Doctor, a platform designed to help doctors and other high-income professionals generate passive income from real estate so they can STOP trading time for money. Jeff started his blog to share how he paid off $300K in student loan debt. But once he was debt-free, Jeff shifted his focus to investing and acquiring streams of passive income through multifamily syndications. Today, he is raising millions in days for real estate deals.
On this episode of Apartment Building Investing, Jeff joins cohost Patricia Sweeney and I to discuss how the Debt-Free Doctor has evolved, explaining how he creates content consistently and what he does to promote the platform and grow his investor base. Jeff walks us through the benefit of joining his Passive Investors Circle, describing how he gives doctors and other overworked professionals options for earning passive income. Listen in to understand how serving his audience inspires Jeff to keep going and learn how he raised $2.7M in five days for his latest multifamily deal!
Key Takeaways What inspired Jeff’s interest in real estate investing
- Wrist injury on ski trip inspired interest in passive income
- Successful people had real estate, 3 to 9 income streams
Jeff’s first experience with real estate investing
- Discovered crowdfunding with Realty Shares
- Relied on website and lost $50K
How Jeff’s website has evolved over the years
- Began as diary on getting out of student loan debt
- Now educates high-income earners on real estate
How Jeff got into raising capital for real estate syndications
- Sponsor reached out because of blog and podcasts
- Started Passive Investor Circle (raised $2.7M for deal)
Who Jeff serves through Debt-Free Doctor
- Doctors, other high-income earners (accredited investors)
- Overworked professionals looking for options
What Jeff has done to grow his list
- Site for physicians shared articles and boosted traffic
- Capture addresses with Passive Investor Circle
The benefit of joining Jeff’s Passive Investor Circle
- Free Passive Income Guide and series of emails
- Learn about deals Jeff invests in, set up time to talk
How Jeff comes up with content ideas for his blog
- Topics he reads/hears about online and on podcasts
- Keyword research for subjects that will rank
How Jeff produces content consistently
- Write between patients
- Inspired by being able to serve, change lives
What’s next for Jeff and his real estate platform
- Start podcast, speak at in-person events
- Create own event or write book
Jeff’s advice for syndicators struggling to raise capital
- Determine the ONE thing (grow investor base)
- Delegate or don’t do anything that doesn’t do that
Jeff’s advice for aspiring platform builders
- Invest in marketing platform, calculate ROI
- Don’t reinvent wheel
Connect with Jeff Anzalone Debt-Free Doctor
Jeff’s Passive Investors Circle
Jeff’s Free Passive Income Guide
Resources Register for Michael’s Platform Builders Incubator
Join the Nighthawk Equity Investor Club
Learn More About Michael’s Mentoring Program
Realty Shares
Dave Ramsey
FinCon
The Blog Millionaire
The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results by Gary Keller and Jay Papasan
Robert Kiyosaki
Grant Cardone
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Affirmations are a powerful tool in reaching our goals. They remind us why we do what we do, what we plan to achieve and the kind of person we want to become along the way.
So, what does it look like to create an affirmation specific to real estate investing? An affirmation that will keep you on track all year long and make success inevitable?
On this episode of Apartment Building Investing, I discuss the value of using affirmations to achieve financial freedom through multifamily real estate. I walk you through the process of constructing an affirmation the right way, describing the activities you can commit to as an aspiring syndicator and challenging you focus on those activities (rather than the outcome). Listen in for insight on taking tiny action toward your goals every day and learn how to build an affirmation that guarantees your success as a real estate investor!
Key Takeaways Why you should use affirmations to achieve your goals
- Creates clarity
- Establishes your WHY
- Commit to activity
How to construct an affirmation the right way
- Commit to unwavering faith and extraordinary effort
- Articulate WHY you’re working toward that goal
- Set level of commitment with daily activities
- Speak out enlightened entitlement (worthy of miracles)
The two activities aspiring syndicators can commit to
- Analyzing deals
- Talk with potential investors
Why you can’t get emotionally attached to the results
- Give up when don’t achieve in certain time frame
- Outcome = inevitable if do activity long enough
The secret to success in real estate investing
- Commit to activity
- Take tiny action every day
Resources Download Michael’s Affirmation for Multifamily Investors
Learn More About Michael’s Mentoring Program
Year in Review on Apartment Building Investing EP244
The Miracle Equation: The Two Decisions that Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
Michael’s 10-Minute Offer Technique
Michael’s 10-Minute Offer eBook
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
No question, the hospitality industry is among the hardest hit by COVID-19. And yet, Josh McCallen is thriving. The distressed Renault Winery Resort he bought in December 2018 is sold out for 2021, and revenues are up 200% from last year. So, why is Josh doing well while others are struggling? Are there opportunities for investors in the hospitality space right now? And what can we multifamily syndicators learn from Josh’s others-focused approach to business?
Josh is the hospitality investment expert behind Accountable Equity, a firm specializing in resort value-add and turnaround projects, and VIVÂMEE Hospitality, the management company that operates those assets. In the past two decades, Josh has led over $100M in luxury residential and hospitality construction projects, growing the revenue of the resorts he manages by 10X in less than six years and increasing the appraised value of those properties by 70%.
On this episode of Apartment Building Investing, Josh joins cohost Garrett Lynch and I to share his journey as an entrepreneur and discuss how helping flippers during the boom evolved into the work he does now. He explains how his company’s focus on resorts (not hotels) has helped them thrive despite the pandemic, describing how his team’s expertise in sales drives the kind of distressed assets they buy. Listen in for insight on the opportunities available to investors in the hospitality space right now and learn how a service-based, ministry model helps Josh serve both his guests and investors well.
Key Takeaways How Josh got his start as an entrepreneur
- Sold cotton candy to classmates in grade school
- Paper boy at 12 (collect pay from customers)
When Josh got into real estate
- Bought duplex with wife in late 1990’s
- Started helping flippers in 2006
What Josh does in real estate today
- Runs hospitality development company
- Acquire distressed resorts for rehab + repositioning
What differentiates VIVÂMEE as a management company
- Start with core values (dignity of every person)
- Loyalty and recurring business model
Why Josh is doing well despite the pandemic
- Focus on resorts (multiple revenue streams)
- Sell experience, i.e.: wedding at winery
- Earn revenue now for 2021 and 2022 reservations
- Room revenue = trailing indicator
What Josh looks for in a property
- High volume of inbound calls for weddings
- Older/tired owner losing money, just breaking even
What makes Josh a good operator
- Experience of taking over for management collapse
- Treat hospitality as ministry, make guests feel loved
How Josh’s others-focused model extends to his investors
- Treat investors as guests
- Apply hospitality to fundraising
How Josh structures a resort deal
- Charge asset management fee
- Zero split until investors fully repaid + preferences
- 50/50 split moving forward
Connect with Josh McCallen Accountable Equity
Capital Hacking Podcast
Resources Join the Nighthawk Equity Investor Club
Learn More About Michael’s Mentoring Program
VIVÂMEE Hospitality
Rich Dad Poor Dad by Robert T. Kiyosaki
Renault Winery Resort
Renault on Instagram
The Real Estate Guys
Cashflow Ninja
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
As syndicators, we’d love to work with 1031 exchange investors more often. But the rules make it really, really difficult! It means taking on co-owners (rather than passive investors) and big bucks in legal fees. What if there was an EASIER way to work with 1031 exchange investors? A way that allows them to invest passively in syndication deals, defer their taxes and earn a stable return?
Paul Moore is Managing Partner at Wellings Capital, a firm dedicated to helping high earners and high net worth individuals protect and grow their wealth through commercial real estate investing. A two-time Michigan Entrepreneur of the Year finalist, Paul has founded multiple investment and development companies and co-managed a successful multifamily development. He is the cohost of The Art of Investing and How to Lose Money and a regular contributor to both Fox Business and BiggerPockets.
On this episode of Apartment Building Investing, Paul joins cohost Drew Whitson and I to discuss the disadvantages of the 1031 exchange and explain what makes the strategy incompatible with syndications. He introduces us to the Delaware Statutory Trust (or DST), describing how it solves the problems associated with bringing in 1031 exchange investors and allows them to invest passively in multifamily deals. Listen in for Paul’s insight on what kind of investor is attracted to the DST and learn how YOU can use it to defer taxes and earn a long-term, stable return!
Key Takeaways The disadvantages of the 1031 exchange for investors
- Deadlines pressure to overpay/buy wrong asset
- Difficult to find cash match, total price match
- Requires co-ownership vs. passive investment
Why 1031 exchanges are incompatible with syndications
- Tenancy in common agreement to keep control
- High legal fees, syndicator doesn’t control capital
The fundamentals of the Delaware Statutory Trust
- Management group acquires asset
- Sells fractional shares to investors
The benefits of investing in a DST
- Allows for passive investment
- Match any amount of money
- No debt in name
- Extremely stabilized asset
The disadvantages of investing in a DST
- Communicate with broker vs. syndicator
- Broker gets high commission (6% to 9%)
- Limited upside, very little appreciation
How Paul’s DST addresses the usual disadvantages
- Invest direct = talk to syndicator
- Don’t pay up-front commission
- 10% to 12% projected returns
How Paul is compensated as the operator of the DST
- Property management fees
- Acquisition and liquidation fees
- Scrape (keep returns above 6%)
What kind of investors are attracted to the DST
- 1031 exchange investors
- Capital gains, passive depreciation recapture
The limitations of the Delaware Statutory Trust
- High legal fees for operators to set up
- Limited upside (structured to be stable)
- Illiquidity = can’t cash out early
- Accredited investors only
Connect with Paul Moore Wellings Capital
Paul on BiggerPockets
Resources Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Starker v. United States
Inland Investments
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Despite the chaos and uncertainty of 2020, we have a lot to be grateful for here at The Michael Blank organization. We have helped 113 people do 128 deals for a total value of $321M. And 22 of our mentees have quit their jobs, thanks to the financial freedom that comes with multifamily real estate investing.
On this episode of Apartment Building Investing, I take the time to reflect on 2020, looking back on our key accomplishments in The Michael Blank organization and sharing our top lessons learned over the past 12 months. I discuss our theme for 2021 and explain what steps we’re taking to better serve our followers and turn them into raving fans. Listen in for insight on the multifamily market outlook for 2021 and learn how YOU can use our resources to achieve financial freedom and help us make a positive impact in the world!
Key Takeaways Our key accomplishments for 2020 in The Michael Blank organization
- Right team in place, key hires in marketing and tech
- Pivot to take Deal Maker Live virtual
- Hit 10K subscribers on YouTube channel
- Launch Platform Builders program
- High-profile guests on podcast (Pat Flynn, Amy Porterfield)
- Raise $20M for 2 deals in last 4 months
- Full-time asset manager, director of investor relations
Our top 3 lessons learned in 2020
- Team is EVERYTHING
- Stick to your underwriting
- Be grateful every day for everything
Our plans for 2021 in The Michael Blank organization
- Serve existing followers better and reach more deal makers
- Update The Ultimate Guide to Apartment Investing
- Host Deal Maker Live on livestream and in person
- Launch new podcast around platform building
- Rollout Nighthawk Investor Club to connect better
The disconnect between the headlines and our market experience
- Real estate = local business (gateway cities vs. Sun Belt)
- Rents flat but not decreasing in our target markets
- People move south + west with freedom of remote work
My predictions around the market outlook for 2021
- No radical changes to real estate tax law
- Unemployment benefits will cover rent collection issues
- Fed will keep interest rates low and flat
- Continued demand for affordable multifamily housing
- Drop in value of US dollar (real estate = inflation hedge)
- Unprecedented buying opportunities in next 12 months
How you can help us make a positive impact in the world
- Sponsor student through UCSS nonprofit
- $25/month covers education and healthcare
Resources Join the Nighthawk Equity Investor Club
Get Michael’s Ultimate Guide to Apartment Investing
Learn More About Michael’s Mentoring Program
Sponsor a Student with Uganda Counseling & Support Services
Get Your Priorities Straight on Apartment Building Investing EP230
Deal Maker Live
Platform Builders
Pat Flynn on Apartment Building Investing EP210
Amy Porterfield on Apartment Building Investing EP212
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Do you have what it takes to be an entrepreneur? If you’re in the early stages of building a multifamily syndication business, Gino Wickman wants to leverage his 30 years of experience to help you determine what kind of enterprise is right for you and accelerate your path to success.
Gino is the creator of the Entrepreneurial Operating System, the practical method for helping businesses achieve greatness used by 100K companies worldwide. He is also the bestselling author of Traction: Get a Grip on Your Business and Rocket Fuel: The One Essential Combination That Will Get You More of What You Want from Your Business, among many other groundbreaking books on entrepreneurship. Today, Gino is devoting his time and energy to Entrepreneurial Leap, a new book and online platform designed to help entrepreneurs-in-the-making find clarity and create a customized roadmap for their startup.
On this episode of Apartment Building Investing, Gino joins cohost Garrett Lynch and I to share the experience that inspired his work with entrepreneurs, explaining how he defines ‘true entrepreneurship’ and what characteristics successful business owners share. He walks us through the most common mistakes entrepreneurs make, offering advice on knowing what you want, hiring the right people and firing the wrong ones. Listen in for insight on whether or not you’re a ‘partner person’ and get Gino’s eight tips for increasing your chances of success as an aspiring entrepreneur.
Key Takeaways What inspired Gino’s work with entrepreneurs
- Turned around struggling family business at 25
- Discovered knack for helping entrepreneurs
What makes EOS such a successful system
- Simple and time tested on 50 clients over 5 years
- Frees entrepreneur to take business to next level
Why Gino wrote his new book Entrepreneurial Leap
- Help aspiring entrepreneurs build better startup
- Teach what he needed most at start of journey
How Gino defines true entrepreneurship
- Build business with lots of people (vs. freelance)
- Only 4% of population has what it takes
The 6 essential traits of a true entrepreneur
- Visionary
- Passionate
- Problem-solver
- Driven
- Risk-taker
- Responsible
The 8 critical mistakes entrepreneurs make
- Not having vision
- Hiring wrong people
- Not spending time with people
- Not knowing customer
- Not charging enough
- Not staying true to core
- Not knowing numbers
- Not crystalizing roles/responsibilities
Gino’s advice on hiring the right people
- Hire based on core values + skill set
- Be slow to hire, quick to fire
The 8 disciplines for increasing your chances of success
- Clarify vision
- Decide if ‘partner person’
- Bigger problem = more success
- Get feedback early and often
- First plan will not be final plan
- Work hard (really hard)
- Take criticism with grain of salt
- See it every night
Gino’s insight on the two types of ‘partner people’
- Equal partners
- Give equity but maintain controlling interest
Connect with Gino Wickman Entrepreneurial Leap
Entrepreneurial Leap: Do You Have What It Takes to Become an Entrepreneur? by Gino Wickman
Resources Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Garrett at Nighthawk Equity
Traction: Get a Grip on Your Business by Gino Wickman
Entrepreneurial Operating System for Business
Rocket Fuel: The One Essential Combination That Will Get You More of What You Want from Your Business by Gino Wickman
Entrepreneurial Leap: Do You Have What It Takes to Become an Entrepreneur? by Gino Wickman
Entrepreneurs’ Organization
Gino’s Entrepreneur Assessment
Books by Napoleon Hill
Books by Dale Carnegie
Books by Jim Collins
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
What is the key to scaling a real estate investing business? Growing your investor database? Raising more and more capital for deals? Putting together and training a capable team? Yes, all of those things are absolutely necessary. And they all require that you build out systems. Systems that allow the business to run on its own.
Jorge Abreu is the Cofounder and CEO of Elevate Commercial Investment Group, a Dallas real estate firm focused on the acquisition of value-add multifamily assets. In his 15-year career, Jorge has flipped 200-plus houses, wholesaled another 100 properties and done $8M in ground-up construction. Since his introduction to multifamily four years ago, Jorge has built a portfolio of 1,700 units worth $125M.
On this episode of Apartment Building Investing, Jorge joins cohost Garrett Lynch and I to share the challenges of scaling a single family investing business and discuss what inspired his transition to apartment buildings. He weighs in on the value of networking (online and in-person) to forge new partnerships and build a solid team. Listen in for insight on building systems to grow your business and learn why Jorge recommends skipping single family and getting right into multifamily investing!
Key Takeaways What inspired Jorge’s interest in real estate
- Research of successful individuals
- Entrepreneurial role models in family
The challenges of scaling a single family business
- Difficult to find reliable contractor for flips
- Creating systems to delegate work
How Jorge started over in Dallas after 2008
- Network every day, go to every event
- Build team and find partnerships
The value of finding a good partnership
- Division of roles affords time freedom
- One partner as visionary, one as executor
The benefits of multifamily investing
- Build generational wealth
- Branch out into other companies
How Jorge attracts and retains team members
- Make sure everyone happy
- Check in re: expectations
When to bring property management in house
- Implement own systems (control)
- More appropriate with scale
Why Jorge runs his own construction company
- Helped scale single family business
- Confident taking on any heavy lift
Jorge’s insight on raising capital for multifamily
- Invest passively to get feel for business
- Market to build database of investors
What Jorge does to market his syndications
- Build platform, daily posts on social
- Funnel with email marketing follow up
How Jorge manages his investor lists
- Speak to new investors asap
- Strategic messaging to match goals
What’s next for Jorge and the Elevate team
- Explore new partnerships
- Fine tune system for evaluating deals
What Jorge would tell his younger self
- Build out systems early on
- Go straight to large multifamily
Connect with Jorge Abreu Elevate Commercial Investment Group
Email jorge@elevatecig.com
Resources Join the Nighthawk Equity Investor Club
Learn More About Michael’s Mentoring Program
Garrett at Nighthawk Equity
National Real Estate Investors Association
Traction: Get a Grip on Your Business by Gino Wickman
ActiveCampaign
Deal Maker Live
The Deal Maker’s Mastermind
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
What is the best way to approach the conversation with potential multifamily investors? How do you communicate the benefits of investing in apartment buildings over other asset classes and assure them that their money is safe with you—even if you’re new to the space?
David Kamara is the Founder and Managing Director of Cape Sierra Capital, a multifamily syndication firm out of Ann Arbor, Michigan. He has 15 years of investing experience in the real estate space, getting his start with a portfolio of residential single family and duplex units before transitioning to apartment buildings and townhome communities. Today, David owns 200-plus units and serves as a mentor on the Michael Blank team.
On this episode of Apartment Building Investing, David joins cohost Drew Whitson and I to explain how he coaches his mentoring students to approach the conversation with potential investors, describing how multifamily isn’t subject to the same risks as single family rentals. He weighs in on what helps aspiring syndicators believe in their ability to succeed, exploring how knowledge helps us visualize what’s possible but action is key in making it real. Listen in for David’s insight on getting your priorities straight and learn how underwriting to cashflow makes multifamily a good investment no matter what’s going on in the world.
Key Takeaways What David’s been up to since his last appearance
- Find competitive deals with good return for investors
- Develop personal cashflow formula (free eBook)
- Share knowledge through platform, mentoring
What helps aspiring multifamily investors believe it’s possible
- Knowledge (i.e.: understanding of loans, taxes)
- Personality open to learning new things
How COVID changed the way David talks to investors
- Proactive in reaching out to investors
- Open about potential for no distributions
How COVID has impacted David’s underwriting
- Assume minimal rent increases for next 3 years
- Take on longer, fixed-rate debt (HUD loans)
- Prepare investors for longer hold periods
David’s advice around market timing
- Don’t worry about things can’t control
- Plan for same cap rate at sale, focus on cashflow
- Choose markets with job diversity
How David coaches his students on talking to investors
- Explain cash-on-cash return and appreciation
- In control of both factors with multifamily
Why David invested in the Platform Builder Incubator
- Eventually run out of investors as business scales
- Attract high-income earners, serve more people
- Accelerate growth (program tailored to syndicators)
David’s plan to produce content consistently
- Write blogs on common questions
- Considering podcast as medium
David’s advice for aspiring multifamily syndicators
- You have to start (buy something)
- Prioritize what’s important in life
- Hustle to find deals
Connect with David Kamara Cape Sierra Capital
David’s Free eBook: Personal Cashflow Formula
Resources Learn More About Michael’s Mentoring Program
Register for Michael’s Platform Builder Incubator
Join the Nighthawk Equity Investor Club
David Karmara on Apartment Building Investing EP182
HUD Loans
HubSpot
Michael’s Health Crisis on Apartment Building Investing EP230
LoopNet
Realtor.com
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
A lot of would-be multifamily syndicators get stuck, sometimes out of fear and sometimes because they want to plan every step of the process before they dive in. But that’s not how entrepreneurship works! In fact, the most successful real estate investors are the ones who are willing to put themselves out there and learn by doing—taking consistent, imperfect action.
Matt Brawner is Managing Partner at Minnesota Capital Management and Northwoods Servicing, a real estate investing firm and property management company based in Coon Rapids, Minnesota. Matt and his partners have achieved considerable success turning their $5K investments into a portfolio worth more than $20M, but his greatest passion is teaching. To that end, Matt now serves as a mentor with the Michael Blank organization.
On this episode of Apartment Building Investing, Matt joins cohost Drew Whitson and I to explain how he got into real estate, discussing how he formed a successful partnership with five other investors and what inspired their transition from townhomes to multifamily properties. He introduces us to the idea of setting up debt funds to raise capital and shares the pros and cons of having your own property management company. Listen in for Matt’s insight on scaling a multifamily business and learn how YOU can get unstuck and get into ACTION to become a successful real estate syndicator!
Key Takeaways What inspired Matt to become a mentor
- Career = function of faith
- Help others achieve time freedom
How Matt got into real estate
- Realized no influence on stock market
- Local opportunity to rent townhomes
What makes for a good partnership
- Communicate well (100% honesty)
- Equal share of financial burden
Matt’s transition from townhomes to multifamily
- Local operator had deal but needed capital
- Matt’s team had money to invest
Why Matt’s team had set up debt funds
- Needed capital to scale business
- Attracts investors who want certainty
Matt’s top lessons learned in real estate investing
- Get into multifamily much sooner
- All properties not created equal
The benefits of having a property management company
- Own more of value chain
- Insight into local deals
Matt’s advice on property management for new investors
- Use third party when getting started
- Allows to scale quicker, more efficiently
The traits of a successful multifamily syndicator
- Willing to learn by doing
- Willing to wade into unknown
Matt’s insight on underwriting post-COVID
- Focus on forced appreciation
- Add value to drive incremental revenue
What aspiring investors get stuck on
- Fear
- Desire to plan out everything in advance
The challenges Matt faces in scaling his business
- Find landlord-friendly markets
- Intentional networking to find deals
Connect with Matt Brawner Matt on LinkedIn
Email matt@nwsproperties.com
Resources Learn More About Michael’s Mentoring Program
Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
Traction: Get a Grip on Your Business by Gino Wickman
National Multifamily Housing Council
GigaFi
Corey Peterson
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
So, you’ve got some experience in single family rentals. And you KNOW that multifamily investing would help you achieve financial freedom on an accelerated timeline. But you just don’t BELIEVE that you can do it. What can you do to overcome that hurdle and develop the confidence to take on your first deal?
Jeremy LeMere is the Principal at Star Capital Management Group, an equity real estate investment firm based in DePere, Wisconsin. He began his investing career over a decade ago, rehabbing single family and duplex properties. Since then, he has grown his personal portfolio to include multifamily, self-storage and commercial assets. Jeremy recently quit his corporate engineering job to pursue real estate full time, and he also serves as a mentor with the Michael Blank organization.
On this episode of Apartment Building Investing, Jeremy joins me to explain how seeing his net worth drop during the Great Recession inspired his interest in real estate. He walks us through his early investments in single family homes and duplexes, discussing why he made the shift to multifamily to replace his W-2 income much faster. Listen in for Jeremy’s insight on raising capital with an online platform and learn how YOU can leverage mentorship to overcome limiting beliefs and invest in your first multifamily deal!
Key Takeaways What inspired Jeremy’s interest in real estate
- Committed to saving and investing as much as possible
- Net worth cut in half, 401(k) collapsed in recession
Jeremy’s initial real estate investing strategy
- Bought and operated duplexes in local area
- Denied loan on third property
- Build portfolio of SFH with BRRRR method
How Jeremy funded his investments without bank loans
- Liquidate stocks, use 401(k) and savings
- Work with credit union
- Start flipping SFH and reinvesting profit
What inspired Jeremy’s shift to multifamily
- Passed over for promotion at corporate job
- Changed goal from replace income at 55 to 45
How Jeremy got started with multifamily
- Join Michael Blank mentoring program
- Develop can-be-done mindset
The timeline on Jeremy’s first multifamily deal
- Started mentoring program in January 2018
- Identified asset with value to unlock by March
- Acquired few months later (at asking price)
- Took from 82% to 98% occupancy in 3 months
The opportunities Jeremy identified in his first deal
- Value-add and increase rents as units turn
- Address vacancy gap (comps 100% occupancy)
Jeremy’s approach to quitting his corporate job
- Gradually empower team to take over duties
- Last day of work = non-event
How Jeremy’s life is different as a full-time investor
- Free up time to enjoy lake house with family
- Able to help others as career coach, mentor
Jeremy’s decision to add self-storage to his portfolio
- Local opportunity for 2 sites with 300 units
- Closed on 7/3, increase in occupancy already
How Jeremy raised money for the self-storage opportunity
- Needed $500K (2/3 from outside investors)
- Partner on funding side of wholesaling, flips
Why Jeremy is building a platform to raise capital
- Weakness in self-promotion and marketing
- Use automation to attract new investors
What Jeremy is working on right now
- Look for next big syndication deal
- Build out platform with content
Connect with Jeremy LeMere Star Capital Management Group
Resources Learn More About Michael’s Mentoring Program
Register for Michael’s Platform Builders Incubator
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probably, to Inevitable by Hal Elrod
The 4-Hour Work Week: Escape 9-5, Live Anywhere, and Join the New Rich by Timothy Ferriss
REIA
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
How do you land your first syndication deal without a track record in multifamily? Well, it all starts with networking. Networking with brokers. Networking with potential investors. Networking with other multifamily operators. And if you can get plugged a real estate investing community, you can leverage the knowledge and experience of investors who’ve been where you want to go and fast-track your success!
Barry Flavin is a mentor with the Michael Blank organization and Managing Partner at New Mission Capital, a multifamily investment firm out of Detroit, Michigan. He got his start in real estate eight years ago, building a portfolio of 30 single family rentals before making the shift to multifamily. Barry has a background in software sales and spent six years working as an air traffic controller before discovering real estate, and today, he owns 387 units, leveraging his expertise in investor relations to grow the business.
On this episode of Apartment Building Investing, Barry joins cohost Drew Whitson and I to explain how an air traffic controller ends up in real estate, walking us through his transition from building a portfolio of single family rentals to raising capital for large multifamily deals. He discusses the advantages of focusing his investments in a single market, describing how he found his partner, Josh, and what they do to secure consistent deal flow. Listen in for Barry’s insight on avoiding expensive mistakes with 1:1 mentoring and find out how YOU can accelerate your success through the Michael Blank community.
Key Takeaways What inspired Barry’s interest real estate
- Looking to supplement government pension
- Desire to travel in retirement
Barry’s initial real estate investing strategy
- Fix up and sell personal residences
- BRRRR method (build SFH rental portfolio)
How Josh funded his early real estate investments
- Start with own cash, retirement accounts
- Borrow from private lenders and refinance properties
How Barry and Josh structure their partnership
- Josh finds and underwrites deals + operates portfolio
- Barry’s focus on investor relationships, raising capital
How Barry raised $2.8M for his first 144-unit deal
- Lot of phone calls, emails, coffees and dinners
- Scrambling after few weeks but fell into place
Barry’s advice on making a capital raise less stressful
- Touchpoints 1, 2 and 3 while still looking for deal
- Show potential investors sample deal package
How Barry benefits from focusing on the Detroit market
- Knowledge of best neighborhoods to invest
- Track record + broker relationships = deal flow
Barry’s advice for aspiring investors without a track record
- Network with brokers and investors
- Add value to partner (borrow their reputation)
The #1 thing new syndicators need to do to be successful
- Deep dive into online content to learn language
- Get plugged into community
Barry’s insight on having in-house property management
- Can outsource in beginning, interview for best fit
- Consider in-house team as business scales
How Barry thinks about adding to his team
- Weakness around building funnel for new investors
- May hire admin to streamline marketing strategy
Barry’s take on goal setting for multifamily
- Don’t have set number of units
- Consistently do GOOD deals (minimum of 2/year)
Barry’s advice to his younger self
- Learn to use money as tool much sooner
- Accelerate real estate with 1:1 coaching program
Barry’s advice for aspiring multifamily investors
- Be coachable and follow through
- Don’t get stuck in analysis paralysis
- Learn from every deal (even if don’t go through)
- Don’t listen to naysayers
Connect with Barry Flavin New Mission Capital
Email barry@newmissioncapital.com
Barry on LinkedIn
Resources Learn More About Michael’s Mentoring Program
Syndicated Deal Analyzer
CDC Moratorium on Evictions
Josh Sterling on Apartment Building Investing EP091
Sample Deal Package
Josh Gozlan on Apartment Building Investing EP078
Deal Maker’s Mastermind
Garrett Lynch on Apartment Building Investing EP231
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Wish you could attract an audience of engaged, eager investors like we do at Nighthawk Equity? Have you thought about building a thought leadership platform but rejected the idea because you’re not a writer or a techie? Or because you don’t like the way you look or sound on camera? Are you ready to get over those false beliefs and scale your capital raise in a matter of months?
Patricia Sweeney is the Marketing Automation Consultant behind Ideally Media Group, a firm that helps entrepreneurs and business owners implement content marketing systems to attract more of the right clients and significantly increase their revenue. With 10-plus years of experience in online marketing, Patricia has been the secret weapon behind some of the biggest names in the digital marketing space. She is also part of the Michael Blank team, working hands-on with the students in our Platform Builders program.
On this episode of Apartment Building Investing, Patricia joins me to discuss the limiting beliefs that stop syndicators from building an online thought leadership platform. She explains why you DO have time and why you CAN justify the investment, describing how our students are attracting new investors—sometimes even before the program is over! Listen in for Patricia’s insight on avoiding the biggest mistakes syndicators make in building a platform and learn how YOU can scale your capital raise through our Platform Builder Incubator.
Key Takeaways The advantages we have around platform building in 2020
- EASY to get message to many through social media
- Tech never more powerful or easier to use
- Outsource tasks to highly qualified global VAs
What limiting beliefs stop syndicators from building a platform
- I’m not a techie or a writer
- I don’t have the time
- I can save money by doing it myself
- I can’t justify the investment
Why you DO have time to build a thought leadership platform
- Delegate/automate production and distribution
- Don’t have to become digital marketing expert
Why you aren’t really saving money by doing it yourself
- Time = precious resource, better spent finding deals
- Focus on what drives business forward (raise capital)
Why you CAN justify the investment in building a platform
- Leverage content marketing to attract more investors
- Reinvest 20% of revenue and SCALE UP capital raise
The biggest mistakes syndicators make in building a platform
- Thinking you only need a website
- Not having a lead magnet
- Not communicating with your list
- Trying to do everything at once
- Striving for perfection
My advice on avoiding overwhelm in building a platform
- Build core platform as foundation
- Layer on one lead gen program at a time
Connect with Patricia Sweeney Ideally Media
Resources Register for Michael’s Live Webinar on 10/28
Register for Michael’s Platform Builder Incubator
Join the Nighthawk Equity Investor Club
Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
What Is a Platform & Why Should You Build One? on ABI EP235
Upwork
Fiverr
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Time is precious. Are you spending your days doing what you love with the people you love? What if multifamily real estate could help you do just that? What if you could achieve financial freedom fast—regardless of your current financial situation?
Megan Lamke is Managing Partner at Megan Lamke Real Estate, a firm that helps driven women turn their grit into true financial growth. She built a network of real estate investors working for Wells Fargo Home Mortgage, and once she and her husband, Darik, had paid off their personal debt ($535K in under 5 years!), they started investing passively in multifamily syndications. Megan quit her corporate job to pursue active investing full-time in April of 2019, and today, the Lamkes have a portfolio of 1,491 units valued at $344M.
On this episode of Apartment Building Investing, Megan joins me to explain why she took a W-2 job after college (despite wanting to become a real estate entrepreneur) and what she and Darik did to live below their means and pay off their debt so fast. She describes what she did to find a good operator as a passive investor and how she leveraged her sales and marketing background to transition to active investing. Listen in for Megan’s insight on how to raise capital at scale with a platform and learn how YOU can achieve financial freedom and spend time doing what you love!
Key Takeaways When Megan started thinking about real estate
- Parents struggled financially, read Rich Dad Poor Dad at age 10
- Entrepreneurship and business clubs in high school and college
Why Megan took a W-2 job after college
- Needed to pay off student loan debt before leave Rat Race
- Learned sales skills, got to work with real estate investors
What Megan and her husband did to live below their means
- Sold luxury cars, bought cars for cash
- House hacked 6BR (rented to rugby teammates)
- Side hustle as sales and marketing consultant
How Megan and her husband got on the same page financially
- Financial literacy class as part of premarital counseling
- Set goal to pay off debt, achieve financial freedom
How Megan’s strategy shifted once she was out of debt
- Sold 6BR house to invest passively in multifamily syndications
- Goal to replace corporate salary as quickly as possible
Megan’s advice on finding a good multifamily operator
- Look at track record, online reviews, lawsuits and marketing efforts
- Ask questions re: where properties located, how managed, etc.
What Megan’s last day of work was like
- Surreal (like leaving the Matrix)
- Culmination of goal that started in fifth grade
How Megan’s life is different now that she’s a full-time investor
- Control own time (decide when to work)
- Spend more time with daughter, volunteering
What active investing looks like for Megan
- Use SDA to underwrite 10 deals/day (300 in 2019)
- Leverage background in sales and marketing to build out platform
What Megan has done to scale her capital raise efforts
- Done-for-you tech stack to automate lead gen, booking calls
- 30 to 37 calls with prospective investors every week
What Megan is doing to attract prospective investors to her platform
- Create content (social media, videos, blog and weekly webinar)
- Sponsor real estate events, promote lead magnet on podcasts
How Megan describes her ideal investor
- Successful career woman age 40-55, primary breadwinner
- Gritty and knows how to get stuff done
How the automation works to turn interested prospects into investors
- Receive automated email with free download
- Follow up with drip marketing campaign to encourage call
How much capital Megan has raised through her online platform
- $18M raise to close on $49M apartment building
- In process of closing on $18M 503(c)
How raising capital looks different now that Megan has a platform
- Don’t have to call each investor, track follow-up manually
- One centralized management tool that automatically follows up
Connect with Megan Lamke Megan Lamke Real Estate
Megan’s No-Nonsense Women’s Guide to Investing
Megan on Facebook
Megan on Instagram
Megan on LinkedIn
Resources Register for Michael’s Platform Builder Incubator
Join the Nighthawk Equity Investor Club
Rich Dad Poor Dad by Robert T. Kiyosaki
Business Professionals of America
DECA
Dave Ramsey
Robert Kiyosaki
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even without Experience or Cash by Michael Blank
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
Michael’s Syndicated Deal Analyzer
Trello
Investor Deal Room
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
What is the secret to growing a multimillion-dollar multifamily syndication business? The strategy that has worked for my team, allowing us to raise MILLIONS in just a few days, starts with building an online thought leadership platform.
On this episode of Apartment Building Investing, I’m walking you through the three pillars of platform building for multifamily syndicators. I explain WHO should consider building a platform and WHY it’s so valuable, describing how it helps us find more investors, do more deals and scale the business.
I discuss how to attract your ideal investor and then serve them with valuable content, ultimately turning your audience into raving fans who want to invest with you. Listen in for insight on reinvesting a portion of your revenue to grow a multimillion-dollar syndication business and learn how a thought leadership platform can help you 10X your capital raise in just 18 to 24 months!
Key Takeaways Who should consider building a platform to raise money for syndications
- You’ve raised at least $500K but need more investors
- You’re looking to 10X your capital raise capacity
- You want to raise millions quickly and effortlessly
What a platform allows you to do as a multifamily syndicator
- Automatically attract ideal investors
- Do more deals, create more revenue
- Reinvest in platform to attract more investors
- Educate audience on real estate syndications
The 3 pillars of platform building for multifamily syndicators
- Attract right audience
- Develop raving fans
- Scale your business
Pillar #1: Attracting the Right Audience
- Identify ideal client avatar (investor)
- Capture leads with free lead magnet
Pillar #2: Developing Raving Fans
- SERVE with content + LEAD to action
- Promote message to grow email list
Pillar #3: Scaling Your Business
- Make compelling offer that generates revenue
- Reinvest portion of revenue (continue growth)
The ROI on building a platform to raise money for syndications
- For every 32 leads, one ends up investing $70K
- Each new investor generates $2,100 in acquisition fees
- Reinvesting 25% will 10X capital raise in 18-24 months
Resources Register for Michael’s Platform Builder Incubator
Join the Nighthawk Equity Investor Club
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Yes, an education in business or finance is a good foundation for a real estate investor. But spending time with an experienced syndicator and watching a deal happen firsthand is more valuable than any degree. So, how do you find a mentor and convince them you’re worth their time?
Josh Gorokhovsky is the Managing Principal at Telos Properties, a real estate investing firm that focuses on 2- to 4-unit new construction, build-to-rent projects in Los Angeles. After graduating from USC in 2015, he interned for LA Properties under company principal Scott Rosenfeld. Since founding Telos in 2017, Josh has placed more than $7M in equity for investors and managed $20M worth of real estate transactions.
On this episode of Apartment Building Investing, Josh joins cohost Drew Whitson and I to explain how he broke into real estate at the age of 21, describing the persistence it took to get an informal internship with his mentor. He gets real about the 900 hours he dedicated to finding his first deal and why he niched down to the new construction, build-to-rent model. Listen in to understand what gave Josh the confidence to go solo at 23 and get his advice on working for free early on to build the network and experience you need to succeed!
Key Takeaways How Josh got into real estate
- Inspired by Kiyosaki’s Rich Dad Poor Dad
- Introduced to mentor by family friend
Josh’s initial strategy for breaking into the industry
- Find someone doing what he wanted to do
- Put in time to understand fundamentals
How Josh’s sales background prepared him for real estate
- Learn to deal with rejection, build backbone
- Build routines and systems to follow up
How Josh got in the door with his mentor
- Persistence (call regularly to ask for internship)
- Dedication to finding deal after 9-to-5
Josh’s transition from tech sales to real estate
- Spent year working for hard money lender
- Cushion of income while learning real estate
What gave Josh the confidence to go solo
- Moved back in with parents
- Mentor willing to teach
Josh’s first deal
- Lead from mailer dropped in neighborhood
- Piece of equity in single family rehab project
Josh’s first solo deal
- Ground-up duplex development (less risky)
- Family friend was first private investor
How Josh has scaled up his business
- Use leverage of previous project to go to next
- Continue cold calling, reaching out to agents
What Josh is working on today
- 8 development projects in the works
- 6 units under management
How Josh navigated the times when he was down on himself
- Positive self-talk, innate belief in self
- Encouragement of mentor
Josh’s advice for aspiring real estate investors
- Get ‘master’s degree’ with mentor
- Get taste of everything, then determine niche
- Provide value to everyone you work with
Connect with Josh Gorokhovsky Telos Properties
Telos on Facebook
Telos on Instagram
Josh on Instagram
Josh on LinkedIn
Email josh@telosproperties.com
Resources Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Rich Dad Poor Dad by Robert T. Kiyosaki
Gary Vaynerchuk
David Goggins
Cutco Sales Training
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Trading time for money has a ceiling. There are only so many hours in the day, and eventually, we run out. And those of us who work 80 hours a week (or more!) to make ends meet simply can’t be a good partner or parent. So, what can we do to get out of this broken system and achieve financial freedom?
Dave Seymour is the Cofounder and CEO of Freedom Venture Management, a results-driven investing firm that focuses on multifamily and commercial real estate. After 16 years as a Boston firefighter and paramedic, Dave discovered real estate and quickly became one of the nation’s top investors. His passion for the business and propensity to tell it like it is landed Dave his own real estate reality series on A&E, and he has also appeared on CBS, ABC and CNBC, among many other national media outlets.
On this episode of Apartment Building Investing, Dave joins me to explain how he went from working 120 hours a week as a firefighter and paramedic to starring in Flipping Boston on A&E. He describes how real estate saved his financial life and weighs in on what multifamily assets his team is buying now to generate cashflow right away. Listen in for Dave’s insight on building a platform by being yourself and learn to replace fear with faith and say YES to the opportunities that come your way!
Key Takeaways How Dave got his own show on A&E
- Separate self from pack
- Amplify what’s special about you
What Dave was doing before real estate
- 16 years as firefighter + paramedic
- Spending money didn’t have
What inspired Dave to pursue financial freedom
- Working 120 hours/week
- Couldn’t be good husband or dad
How Dave got into real estate
- Heard about seminar on radio
- Invested $27K in classes
What Dave is good at
- Knowing what real emergency is
- Assess landscape + execute
How Dave makes up for his weaknesses
- Recognize what’s not core competency
- Hire exceptional fund managers
How Dave built a platform for raising money
- Authenticity (no BS)
- Search for other’s needs and serve
Dave’s biggest challenges right now
- Getting qualified funds
- Marketing to right audience
- Meet-and-greets during COVID
What assets Dave’s team is buying
- Multifamily on Florida Gulf Coast
- Focus on 40- to 140-unit properties
What’s next for Dave and Freedom Venture
- Build infrastructure for $250M Fund 2
- Direct lending to other investors
Dave’s definition of success
- Physical, mental and spiritual wellbeing
- Family and faith (to replace fear)
Connect with Dave Seymour Freedom Venture Investments
Freedom Venture on Facebook
Dave on Twitter
Dave on Instagram
Dave on LinkedIn
Resources Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Flipping Boston
Three Feet from Gold: Turn Your Obstacles into Opportunities by Sharon L. Lechter and Greg S. Reid
Daymond John
Tony Robbins
Tunnel to Towers Foundation
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
The Untethered Soul: A Journey Beyond Yourself by Michael A. Singer
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
The F.I.R.E. movement challenges us to achieve financial independence and retire early by saving and investing aggressively. And by aggressively, I mean anywhere between 50% and 70% of your income. Rajneesh Jha was following the F.I.R.E. method, putting his money in Wall Street investments—until he realized he could fast-track his timeline with multifamily real estate!
Raj spent 20 years working as an engineer for Fortune 500 companies. An avid student of the stock market and personal finance, he started investing in safe, low-cost mutual funds with the goal of achieving financial freedom in about 10 years. Then he discovered real estate and shifted his strategy, building a portfolio of small multifamily properties. Earlier this year, he quit his 9-to-5 to build Big League Capital, a multifamily syndication firm that helps other investors turbocharge their journey with real estate.
On this episode of Apartment Building Investing, Raj joins me to explain how shifting from F.I.R.E. to multifamily accelerated his journey to financial freedom. He offers his take on the stock market as an investment class, describing how the returns pale in comparison to real estate. Listen in for insight around transitioning from landlording to syndication and find out how Raj’s life has changed since he quit his corporate job!
Key Takeaways How Raj’s journey to financial freedom began
- Stumbled on F.I.R.E. movement 7 years ago
- Invest in low-cost, diversified mutual funds
What the F.I.R.E. method teaches
- Save substantial amount of income (up to 70%)
- Save more, arrive at financial nirvana faster
How Raj was able to save a lot of money with F.I.R.E.
- No drastic changes to lifestyle
- More conscious + intentional about spending
What Raj was trying to accomplish through F.I.R.E.
- Protect family from vagaries of corporate life
- Get to place where work becomes optional
Raj’s take on the stock market as an investment class
- Can get burned if chase trends
- Prosper with disciplined, consistent strategy
- Pales in comparison to returns on real estate
How Raj discovered the world of real estate investing
- Came across BRRRR method with Paula Pant
- Learned about scale from Matt Faircloth
How Raj differs from the average stock market investor
- Passionate about personal finance
- Extensive reading and education
Raj’s first real estate investment
- Bought triplex in Summer of 2017
- Made fair share of mistakes but believed in vision
How Raj’s long-term plan shifted once he found real estate
- 4% safe withdrawal rate vs. 12% cash-on-cash return
- Accelerate journey by 3X with multifamily investing
How Raj’s life is different after quitting his job
- Time to relax and plan next chapter
- Work on my schedule, do things that matter to me
What’s next for Raj and his investing partners
- Looking for 60- to 120-unit value-add property
- Psyched to go from landlording to syndication
What Raj would do differently if he could go back
- Start sooner and be bolder
- See mistakes as rite of passage
Raj’s advice for achieving financial freedom
- Get clear on what you really want
- Skip stock market, go right into multifamily
- Have faith and take prudent risks
- Don’t let lack of funds/experience hold you back
- Spend time on real estate education
Connect with Rajneesh Jha The Big League Capital
Email raj@bigleague-capital.com
Call (267) 551-0529
Resources Learn More About Michael’s Mentoring Program
Access Michael’s Ultimate Guide to Buying Apartment Buildings with Private Money
Join the Nighthawk Equity Investor Club
Register for Michael’s Free Master Class: How to Do Your First Apartment Deal
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even without Experience or Cash by Michael Blank
Financial Independence Retire Early Movement
BRRRR Method
Jim Rohn
Paula Pant
Matt Faircloth
Robert Kiyosaki
Brandon Turner on BiggerPockets
BiggerPockets on YouTube
Think and Grow Rich by Napoleon Hill
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
2020 has been a tough year for finding deals—even for us. In fact, the Nighthawk Equity team is currently in the process of closing on our first and only deal of the year (so far). But that’s not for lack of trying! So, what are we looking for in a deal right now? How have we changed our underwriting criteria in the age of COVID? And how do we recover from the disappointment of losing a deal?
Garrett Lynch is the Director of Acquisitions at Nighthawk Equity, the investing arm of the Michael Blank organization. Garrett has been in the multifamily space since 2011, cofounding a firm that grew from zero to 3,400 units before successfully exiting that venture. Since taking on his role with us at Nighthawk in 2018, Garrett has built a portfolio that includes at 218-unit property in Little Rock, Arkansas a 276-unit in Huntsville, Alabama, and a 130-unit deal in Atlanta, Georgia.
On this episode of Apartment Building Investing, Garrett joins me to explain how his strategy for finding multifamily deals has evolved over the years and what we look for in a deal at Nighthawk Equity. He describes what he does to build rapport with brokers and stay in touch, sharing how strong broker relationships helped us land our current deal in Atlanta. Listen in for Garrett’s insight on recovering from the disappointment of losing a deal and learn how to adjust your underwriting to find good multifamily deals in the COVID era.
Key Takeaways How Garrett’s strategy for finding deals has evolved over the years
- Look for best price per door in D class neighborhoods early on
- More granular on underwriting today, focus on B and C class
How we dialed in our criteria for deals at Nighthawk Equity
- Look at capacity on equity raise and debt structure
- Gradual progression on size of deals
- Choose value-add properties in certain markets
The benefits of collocating deals in just a few markets
- Share resources (e.g.: staff)
- Hit several properties in one trip
How we select markets at Nighthawk Equity
- Resources available to operate and steady dealflow
- Population, job and overall economic growth
How Garrett builds rapport with brokers
- Stand out by responding whether like deal or not
- Meet in person and check in regularly, share successes
How Garrett recovers from the disappointment of losing a deal
- Channel hurt into next quest
- Commit to process
How we landed our current deal in Atlanta
- Follow up with broker re: deal another investor won
- Unobstructed shot when that deal fell apart
Garrett’s system for staying in touch with brokers
- Put regular check-ins on calendar (target markets of interest)
- Come with thoughtful questions re: specific deals
- Reach out when land deal in their market to build demand
How we have adjusted our underwriting at Nighthawk in the COVID era
- Tailor underwriting around few available debt products
- Set natural market appreciation at ZERO for Year 1
- Create cushion of 0.5% on reversionary cap rate
- Cash reserves minimum of 10% of total spent on deal
- Research tenant demographic to ensure cashflow from Day 1
Connect with Garrett Lynch Garrett at Nighthawk Equity
Resources Learn More About Michael’s Mentoring Program
Submit a Deal to the Michael Blank Deal Desk
Access Michael’s Syndicated Deal Analyzer
Join the Nighthawk Equity Investor Club
LoopNet
CREXi
National Multi Housing Council
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
If you knew you only had six months to live, what would you do differently? Who would you spend time with? Who would you reconcile with? How would you spend your days?
On this episode of Apartment Building Investing, I’m describing the health crisis that landed me in the ER at the end of July. I explain how the experience forced me to rethink my priorities and reaffirmed my mission to help people to achieve financial freedom through multifamily investing!
Listen in for insight on how to get clarity in your life and take on the challenge to get your affairs in order and start living your best life NOW.
Key Takeaways My recent experience with a health crisis
- Heart attack on July 28, 2020
- 100% blockage in main artery
How the health emergency forced me to rethink my priorities
- Value health and family above all else
- Affirmed mission (financial freedom with multifamily)
My advice on getting your affairs in order NOW
- Set up revocable trust and life insurance
- Structure entities so controlled by trust
- Document where to find important info
Two powerful exercises for getting clarity in your life
- 6 months to live
- Perfect Day
Resources Deal Maker Live
Dave Ramsey
Michael’s First Deal Maker Award Recipients
Michael’s Financial Freedom Hall of Fame
Garrett Sutton
Brandon Turner
The Miracle Morning: The 6 Habits That Will Transform Your Life Before 8AM by Hal Elrod
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
We’re told that our goals have to be time-bound. That we have to give ourselves a deadline if we want to achieve. The problem with that is too many of us quit three feet from gold, as the saying goes. But how do you stay committed when a year has gone by and you still don’t have your first multifamily deal?
David Acosta was a mentoring student in The Michael Blank Investor Incubator. With no money and no background in investing, David leveraged his mentor, Drew Kniffin, and our Deal Maker’s Mastermind investor network to partner on his first venture, a 220-unit deal orchestrated by Ben Risser’s team. Six months later, David closed on a 48-unit deal in Lexington, KY, this time serving as lead syndicator!
On this episode of Apartment Building Investing, David joins me to discuss how he did his first multifamily deal—without any money or previous real estate experience. He explains how having a mentor helped him build confidence and stay committed when his first deal took a few months longer than expected. Listen in for David’s insight on partnering with others to earn credibility and learn why it’s crucial to commit to the outcome you want, not the timeline.
Key Takeaways What prompted David’s interest in multifamily investing
- Background in restaurants, wanted to control time
- Real estate investing research led to TMB course
What made David think he could skip SFH investing
- Mentor to look over shoulder through process
- Took course to get educated + build confidence
Why David felt having a mentor was the right choice for him
- No background in real estate (shorten timeline)
- Invest in education to be taken seriously
David’s frustration with missing his 12-month goal
- Deflating to fall short, temptation to walk away
- Mentor encouraged to commit to goal vs. timeline
How David finally found his first deal
- Connect with others in Deal Maker Mastermind
- Partner as GP with another investor’s team
How the Law of the First Deal worked for David
- Competitive advantage in closing second deal
- Had confidence to serve as lead syndicator
What’s next for David as a real estate investor
- Build out team, efficiencies in processes
- Scale and grow business from there
David’s advice for aspiring multifamily investors
- Develop persistence to commit to outcome
- Get educated and consider hiring mentor
- Join an ecosystem, JV to build track record
Connect with David Acosta Acosta Capital
David on LinkedIn
David on Instagram
Resources Purchase the Replay of Deal Maker Live
Learn More About Michael’s Mentoring Program
Check Out Michael’s First Deal Maker Profiles
Explore Michael’s Products & Programs
Connect with Other Investors in the Deal Maker’s Mastermind
Ed Hermsen on Apartment Building Investing EP225
Drew Kniffin at Nighthawk Equity
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
Ben Risser on Apartment Building Investing EP102
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Despite the disruption of COVID-19, multifamily investors are still doing deals. The question is, HOW? What’s working right now to get deals done? What isn’t? What are real people doing to find success in today’s market environment?
On this episode of Apartment Building Investing, I’m handing the mic over to Drew Whitson to moderate a discussion with our mentoring team, Todd Dexheimer, Brad Tacia, Phil Capron and Matt Brawner, on what’s working now to get deals done. We explain how our mentoring students are leveraging the COVID pause to build relationships and how the balance of power has shifted among syndicator, buyer and broker in recent months.
We go on to explore the benefit of a strong relationship with your property manager and how underwriting has changed in light of the pandemic. Listen in for insight into what makes multifamily the strongest asset class in real estate and learn the ONE thing our most successful students are doing right now to get deals done.
Key Takeaways What Matt’s most successful students have done in 2020
- Leverage pause in market (Seinfeld time)
- Use time to build relationships with brokers
What Phil’s students are doing to acquire multifamily properties
- Worry about ‘making it to next meal’
- Figure out how to become viable buyer
Todd’s advice on how to talk to investors right now
- Continue to educate and keep investors informed
- Overcommunicate to build relationships
How Brad is coaching his students around underwriting
- Network with mortgage broker re: what’s changed
- Modify SDAs to ensure accurate underwriting
How running a property management firm informs Matt’s underwriting
- Understanding of street rent and how units operate over time
- Haven’t cut back on rents but less aggressive with rent bumps
How underwriting has changed in light of the COVID pandemic
- Build in more time for rent growth
- Consider changes in rental laws by market
What makes multifamily the strongest asset class in real estate
- Performs well through economic disruption
- Lockdown led to desire for nicer apartment
The one thing our most successful students are doing right now
- Willing to make mistakes by doing
- Get out there and build relationships
- Analyze deals (still numbers game)
- Willing to partner to gain experience
- Take consistent action every day
Connect with Drew, Todd, Brad, Phil & Matt Drew Whitson
Todd Dexheimer
Brad Tacia
Phil Capron
Matt Brawner
Resources Learn More About Michael’s Mentoring Program
Purchase the Replay of Deal Maker Live
Pillars of Wealth Creation Podcast
Garrett Lynch
CoStar
Rentometer
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Our world is in upheaval. Between COVID-19 and the current riots, nothing feels normal. And this has a lot of investors asking, is now the right time to pursue multifamily?
On this episode of Apartment Building Investing, I’m sharing my keynote address from Deal Maker Live 2020 on the current state of multifamily. I describe how multifamily is weathering the storm, explaining why it’s actually EASIER to raise money right now and why now IS the right time to invest in apartment buildings.
Listen in for insight around how to adjust your underwriting in the current economic environment and get my advice on what you SHOULD be doing right now to achieve financial freedom!
Key Takeaways How multifamily is performing right now
- Similar to 2008, deep quiet under storm
- Collections surprisingly consistent
Why it’s easier to raise money in the current economic environment
- Investors frustrated with volatility of stock market
- Opening to discuss multifamily as alternative
When it’s the best time to invest in multifamily
- Never going to be perfect time
- Start working toward financial freedom NOW
How investors should adjust their tactics right now
- Be smart about underwriting (↑ reserves, ↓ rent growth)
- Avoid hard deposit, incorporate financing contingencies
What multifamily investors SHOULD be doing right now
- Stay calm and stay the course
- Remember your WHY
- Keep momentum going
Resources Purchase the Replay of Deal Maker Live
Learn More About Michael’s Mentoring Program
Join Michael’s Deal Maker’s Mastermind
Join the Nighthawk Equity Investor Club
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
The black swan event financial pundits predicted has arrived in the form of the Coronavirus pandemic. But how, exactly, will the crisis play out in the markets? What does it mean for us as real estate investors? And what can we do to understand the changing reality, protect our wealth, and even capitalize on hidden opportunities?
Russell Gray is the cohost of The Real Estate Guys Radio Show, a podcast and platform dedicated to helping investors stay focused, motivated and informed. A financial strategist with 30-plus years of experience in business, investing, mortgage lending and financial services, Russell provides unique and practical insights that support entrepreneurial investors in growing and protecting their wealth through real estate and real asset investing. He is also the coauthor of Equity Happens: Building Lifelong Wealth with Real Estate.
On this episode of Apartment Building Investing, Russell joins me to share his take on the bigger story behind the pandemic, explaining how the government bailout will impact the value of the US dollar and its status as the world’s reserve currency. He walks us through the real estate strategies he likes right now, describing the benefit of investments that qualify as both REAL and ESSENTIAL. Listen in for Russel’s insight on protecting your wealth in a crisis and learn what YOU can do to adapt to the circumstances and thrive through a challenging time!
Key Takeaways Russell’s take on the biggest story behind the Coronavirus
- Debt crisis on horizon (more vulnerable now than 2008)
- Potential for currency crisis as Fed continues to print $
Russell’s insight around the indicators that the dollar is weak
- Dollar exhibits weakness against other currencies
- All currencies exhibit weakness against precious metals
The consequences of the government’s Coronavirus bailout
- High risk of inflation
- Devaluation of dollar
How to protect your wealth from inflation, deflation and stagflation
- Store in alternate form of liquidity like gold to preserve value
- Invest in real assets (i.e.: real estate in resilient market)
Why now is a good time to be a real estate investor
- Printing money favors debtor
- Real estate = ultimate vehicle to short dollar
The right and wrong way to measure your net worth
- Assets – liability = wrong way
- Liquidity + positive cashflow = right way
What real estate strategies Russel likes right now
- Things that are REAL and ESSENTIAL
- Residential, energy, healthcare and distribution
Russell’s advice for investors taking a wait-and-see approach
- Don’t wait for someone else to find best deals before you
- Look for real estate (real asset) in resilient markets
Connect with Russell Gray The Real Estate Guys
Email crisis@realestateguysradio.com for the Crisis Investing Webinar
Email silverseries@realestateguysradio.com for the Silver Series
Email preciousequity@realestateguysradio.com for the Precious Equity Tutorial
Resources Purchase the Replay of Deal Maker Live
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Peter Schiff
Robert Kiyosaki
Reuters Article on the Dollar Index
Ken McElroy
Equity Happens: Building Lifelong Wealth with Real Estate by Robert Helms and Russell Gray
FRED Index on the Purchasing Power of the Consumer Dollar
Jim Rohn
Chris Martenson at Peak Prosperity
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
According to the Law of the First Deal, a multifamily investor who buys their first apartment building will do their second and third deals in rapid succession, achieving financial freedom in just a year or two. But there is an exception to every rule, and Ed Hermsen is the ONE investor I know who did his first deal—and then life got in the way. So, what can he teach us about keeping momentum and staying committed to our multifamily goals?
Ed grew a portfolio of single-family rentals while working as a mortgage loan officer in Fort Collins, Colorado. Five years ago, he started studying multifamily and eventually partnered with a close friend on a 22-unit deal in Pensacola, Florida. After revisiting his goal to retire by 50, Ed realized he needed to recommit to multifamily, and in the last two years, he has leveraged the partnership model to build a portfolio of 210 units and quit his job with real estate!
On this episode of Apartment Building Investing, Ed joins me to describe how a 9-to-5 in mortgage banking inspired his real estate investing career and share his secrets to successful multifamily investing with partners. He discusses what made him the sole exception to the Law of the First Deal, explaining why there’s a four-year gap between his first and second deal and what finally inspired him to get back in the game. Listen in for Ed’s insight on the value of accountability and learn what YOU can do to stay committed to your multifamily goals.
Key Takeaways How Ed got into real estate
- Work in mortgage banking exposed to wealth-building potential
- Bought SFH rental every year to build portfolio of 10
What inspired Ed to pursue financial freedom with multifamily
- Never off clock, have to take calls (even on vacation)
- Rely on real estate agents + economy for livelihood
Ed’s first multifamily deal
- Friend found 22-unit in Pensacola, FL in 2015
- Bought for $740K, valued at $1.5M now
- No distributions first year (units in bad shape)
- Challenge to manage vendors from afar
Ed’s second multifamily deal
- Purchased 88-unit in Wyoming with 3 partners
- Lead from attorney handling family dispute
- Great loan from local bank, refinancing now
How Ed found his partners
- Kids go to school together
- Clients from mortgage business
Ed’s insight on building successful partnerships
- Accountability and clear division of labor
- Invest in attorney to do operating agreement
What made Ed the exception to the Law of the First Deal
- Went back to buying fourplexes
- Fell back into 9-to-5 routine
Ed’s advice around staying committed to your multifamily goals
- Write down goals and revisit every morning
- Build in accountability with mentor or coach
Ed’s latest multifamily deal
- Bought 100-unit deal in Tulsa, OK with 2 partners
- Establish relationships with local bank and realtor
- Must follow housing authority rules
What’s next for Ed
- Put 22-unit on market
- Look for deals in Oklahoma
- Learn more about syndications
Ed’s advice for aspiring multifamily investors
- Build good team
- Get educated on markets
- Get first deal done
Connect with Ed Hermsen Email edhermsen14114@gmail.com
Resources Purchase the Replay of Deal Maker Live
Learn More About Michael’s Mentoring Program
Fellowship of Christian Athletes
Hal Elrod
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
The Ultimate Guide to Buying Apartment Buildings with Private Money
Syndicated Deal Analyzer
BiggerPockets
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probably, to Inevitable by Hal Elrod
LoopNet
CREXi
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Investing in the financial markets is stressful, especially in a crisis. And even if you happen to be brilliant at options trading, $100K in the equity market will still only buy $100K in assets. On the other hand, investing $100K in multifamily will buy you a $500K asset—and earn you five times the return. Not to mention the fact that it’s essentially recession-proof!
Bruce Fraser is the Managing Partner at Elkhorn Capital Partners, a private equity firm that focuses on multifamily residential real estate in economically insulated submarkets. Prior to Elkhorn, Bruce ran a lucrative hedge fund, successfully navigating the financial crisis before his research led him to multifamily. In a few short years, Bruce has built a portfolio of 1,600 units, and he currently serves as a member of the Forbes Real Estate Council.
On this episode of Apartment Building Investing, Bruce joins me to explain what makes multifamily a better investment than the financial markets, especially through the COVID-19 crisis. He tells us about his first multifamily deal (as one of my early coaching students!), discussing the challenges he faced early on and describing how the Law of the First Deal impacted his real estate career. Listen in for Bruce’s insight on the advantage of choosing a niche in distressed assets and learn his aggressive but realistic approach to scaling a multifamily business.
Key Takeaways What makes multifamily a better investment than the financial markets
- S&P 500 = 2.5% average annual return over last 20 years
- Multiplier effect ($100K buys $500K asset, earn $100K vs. $20K)
Bruce’s first multifamily deal as one of my early coaching students
- 134-unit property in Fort Worth
- $5.7M acquisition (raise $2.1M)
- Sold 14 months later for $7.9M
Bruce’s experience with the Law of the First Deal
- Second deal under contract when first closed
- Acquire 3 to 4 per year ever since
Why Bruce chose a niche in distressed situations
- More control over occupancy growth than rent growth
- Create much more substantive equity in short period
Why Bruce sought out coaching early on
- Overcome uncertainty
- Understand deal structure
Bruce’s approach to scaling a multifamily business
- Manage time wisely (leverage third-party property manager)
- Be aggressive but realistic
Bruce’s experience through the COVID crisis
- Investors ready to buy and deals available
- Biggest challenge = lending environment
Bruce’s goals over the next three years
- Double portfolio to 2K to 3K units
- Centralized position in handful of markets
Why multifamily is the best investment through the pandemic
- Tax efficient distributions
- Demand for apartments remains high
- Protects against inflation
Connect with Bruce Fraser Elkhorn Capital Partners
Email bruce@elkhornpartners.com
Resources Goldman Sachs Economic Outlooks
Purchase the Replay of Deal Maker Live
Join the Nighthawk Equity Investor Club
Learn More About Michael’s Mentoring Program
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
There are tons of books out there that teach you how to invest in real estate syndications with other people’s money. But what if you’re the ‘other people’? What resource teaches you how to evaluate opportunities and pick the right sponsor to trust with your money?
Brian Burke is the President and CEO of Praxis Capital, a private equity investment firm that focuses on repositioning multifamily properties. An expert real estate syndicator and investor, he has acquired 3,000 multifamily units and 700 single family rentals in his 30-year career. Brian is also the author of the new book, The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications.
On this episode of Apartment Building Investing, Brian joins me to explain why passive investors need to look beyond returns when comparing syndication opportunities. He discusses why the sponsor is a more important consideration than the market or the deal itself, sharing the cautionary tale of an investor who lost her life savings to an unethical syndicator. Listen in for Brian’s insight on the benefit of investing in a non-correlated asset like real estate and learn what questions to ask as you evaluate different investing opportunities.
Key Takeaways The cautionary tale Brian included in The Hands-Off Investor
- Grocery clerk sold fourplexes to invest in TIC syndication
- Sponsor ran off with money and she lost life savings
The three indicators used to measure the performance of a real estate investment
- IRR
- Cash-on-cash return
- Equity multiple
Why passive investors must look beyond returns when comparing opportunities
- Sponsor can manipulate what forecasted cashflows will be
- Look at what’s behind numbers to determine if reasonable
Why the sponsor is more important than the market or the deal itself
- Bad sponsor can ruin good investment in great market
- Take time to determine moral character, track record
What secrets sponsors don’t want passive investors to know
- Hidden asset management fees
- Treatment of bad debt
- How distributions made
The pros and cons of being a passive investor in multifamily syndications
- Professional edge (make more money working with expert)
- Give up control, can’t exit if don’t like what’s happening
The benefit of investing in non-correlated assets like real estate
- Drop in stock market unlikely to impact real estate
- Reduces any single point of failure in portfolio
Brian’s advice for skeptical investors looking at multifamily real estate
- Look at where world’s wealth made
- Minimize risk with balanced portfolio
Connect with Brian Burke Praxis Capital
Praxis Capital on LinkedIn
Praxis Capital on Facebook
Praxis Capital on Twitter
Praxis Capital on Instagram
Resources The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications by Brian Burke
Brian on Apartment Building Investing EP005
Purchase the Replay of Deal Maker Live
Join the Nighthawk Equity Investor Club
Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
In the world of startups, entrepreneurs take a lean approach early on with an eye to grow quickly. Ellie Perlman applied these principles to real estate, building and scaling a syndication business in a few short years. So, how do you shift from being a syndicator to managing a syndication business?
Ellie is the Founder and CEO of Blue Lake Capital, a real estate investing firm that specializes in value-add multifamily acquisition and management. She also leads REady2Scale, a mentoring program for aspiring multifamily syndicators, and hosts the REady2Scale Podcast. Ellie began her career as a commercial real estate lawyer and later transitioned to the role of property manager, overseeing properties worth more than $100M. She earned her MBA from the MIT Sloan School of Management.
On this episode of Apartment Building Investing, Ellie joins me to explain how growing up poor in Israel gave her the drive to succeed and share her journey from cleaning synagogues to earning an MBA from MIT. She discusses the decision to start her own real estate business, describing how multifamily syndication fulfilled her vision to both scale quickly and earn passive income. Listen in for Ellie’s insight on the magic of scaling a startup and get her advice on how to grow YOUR real estate business—even if you don’t have a budget!
Key Takeaways How Ellie developed the drive to succeed
- Cleaned synagogues as poor child in Israel to help family
- Sent to youth village at 15, wanted better for own kids
What inspired Ellie to go to law school
- Married at 18, working 3 jobs to provide for husband
- Saw education as ticket out of ‘survival mode’
How Ellie developed an interest in real estate
- Exposed to deals in international real estate department of law firm
- Transitioned to property management to understand business side
What brought Ellie to the United States
- Pursue MBA at MIT to learn how to start companies
- Aunt had moved to US and achieved success
Ellie’s decision to go into business for herself
- Desire to fulfill potential as self-made woman
- Scarier NOT to try than to try and fail
Ellie’s insight on the power of believing in yourself
- Causes to act in way that sets up for success
- Changes other’s perception of who you are
Ellie’s big vision for building a real estate company
- Reverse engineer plan based on net worth goal at age 50
- Multifamily met requirements for scale, passive income
What Ellie would tell her younger self
- Don’t listen to doubters + keep going
- People project their own fear on you
How Ellie thinks about potential discrimination in real estate
- Focus on what CAN change and improve self
- Not productive to get stuck in victim mode
Why Ellie started a training program and podcast
- Build relationships with potential investors
- Learn something new to implement in business
- Rewarding to see other people succeed
Why Ellie is an advocate for scaling your business
- Burn out when try to do all on own
- Magic in scaling to grow + grow quickly
Ellie’s advice for building and scaling a syndication business
- Map out business want to create and define roles
- Choose area of focus, partner or outsource rest
How to build a syndication business on a small budget
- Hire intern through Handshake
- Pay small stipend or offer equity
Connect with Ellie Perlman Ellie’s Website
Email ellie@ellieperlman.com
REady2Scale Podcast
REady2Scale Mentoring Program
Blue Lake Capital
Resources Register for Michael’s Free Masterclass: How to Do Your First Apartment Deal
Register for Deal Maker Live
Join the Nighthawk Equity Investor Club
BiggerPockets
Upwork
Handshake
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Doing something monumental like moving your family across the ocean to Hawaii or buying a 100-unit apartment complex may feel overwhelming. But Brandon Turner has done both of those things, and he contends that any process is easy IF you break it down into a series of tiny actions that take five minutes or less.
Brandon is the Founder of Open Door Capital, Vice President of BiggerPockets and Cohost of The BiggerPockets Podcast. He owns more than 500 rental units totaling $20M and has dozens of rehabs under his belt. Brandon’s work has been featured in Forbes, Entrepreneur and Money Magazine, and he is the author of several books, including The Book on Rental Property Investing and How to Invest in Real Estate.
On this episode of the podcast, Brandon joins me to share his assessment of the impact of COVID-19 on real estate investing, explaining how we should adjust our underwriting in light of the pandemic. He walks us through his favorite investing strategies right now, describing the opportunities he sees in real estate over the next 10 years. Listen in to understand the marketing techniques Brandon uses to raise LOTS of money online and get his advice on developing a clear VISION of where you want to be—and taking tiny action each day to get there!
Key Takeaways Brandon’s assessment of the impact of COVID
- Depends on whether second round of virus triggers another shutdown
- 85% confident pandemic will be interesting memory in 6 months
How real estate investors should adjust their behavior right now
- Less optimistic in underwriting (don’t count on raising rents in Year 1)
- Good time to revisit fundamentals, be more conservative
The opportunities Brandon sees over the long term
- Migration to South as more and more people reach retirement age
- Invest in mobile home parks, senior living and low-income multifamily
How this economic crisis differs from the last recession
- Last downturn CAUSED by shady practices in real estate
- Less impact on real estate this time (except vacation rentals)
Brandon’s favorite real estate strategies right now
- House hacking good for new investors
- Rehab or value-add (BRRRR method)
- Mobile home parks
Brandon’s insight around COVID’s impact on low-income earners
- Still paying rent at mobile home parks
- Government won’t allow economy to fail
BiggerPockets’ most successful marketing strategies
- Build trust and credibility with content (blog, podcast)
- Make money as software company, not education
How Brandon uses content marketing in his investing business
- Build trust and credibility at scale with content
- Leverage video to raise money, send thank you letters
- Focus on growing Instagram audience (125K followers)
How Brandon architects his life around his family and business
- Develop clear vision of success, know where want to be
- Keep asking, ‘What’s the next little tiny step?’
Connect with Brandon Turner Open Door Capital
Brandon on BiggerPockets
Brandon on Instagram
Resources Join Michael’s Investor Incubator Mentoring Program
Register for Michael’s Free Masterclass: How to Do Your First Apartment Deal
Register for Deal Maker Live
Join the Nighthawk Equity Investor Club
Syndicated Deal Analyzer
Joe Fairless
Loom Video Messaging
The Book on Rental Property Investing by Brandon Turner
Bryce Stewart on BiggerPockets Podcast EP276
Vivid Vision by Cameron Herold
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
You may have heard the prediction that unemployment in the US could reach 30%, and that does sound scary. But what do those numbers really mean? And how would that worst-case scenario impact collections? What should we be concerned about as investors in affordable housing?
Damian Bergamaschi is the cofounder of Damris Capital, a money management firm that leverages data analysis to help its investors achieve financial freedom sooner. Damian leads Damris’ optimization research for all investment models and algorithms and serves as the portfolio manager of the firm’s real estate acquisitions.
On this episode of Apartment Building Investing, Damian joins me to explain how his obsession with data led to investments in commercial real estate. He discusses why affordable housing has been insulated from COVID-19, breaking down what the unemployment rate really means and how government subsidies have had a positive impact in the space. Listen in as Damian calculates projected collections in a worst-case scenario and find out why he is bullish on affordable housing as a reliable long-term investment.
Key Takeaways The Damris Capital origin story
- Idea to organize data, info from white papers
- Test different asset classes by numbers
How Damian’s research led him to affordable housing
- Devaluation of dollar = consistent long-term trend
- Residential real estate most tax efficient way to invest indirectly in inflation
- Add framework of Inflation Harvesting (layer on debt)
What we don’t understand about the unemployment rate
- Many people have income despite being unemployed (e.g.: retirement, disability, etc.)
- At 30% unemployment, 60% would still have income vs. 80% in normal circumstances
Why affordable housing is insulated from COVID-19
- Government safety nets (stimulus checks, unemployment benefits)
- More likely to pay for housing than discretionary expenses
- Even in worst-case scenario, 70% collections projected
The adverse short-term impact COVID may have on affordable housing
- Reductions for prepayment
- Slightly lower collections
- Credit card processing for online payments
- Won’t raise rents for 12 to 18 months
Damian’s promising long-term outlook for affordable housing
- Opportunity to raise rents at accelerated rate in 18 to 24 months
- Consistent supply and demand in residential real estate
- As cap rates contract, value of properties will expand
The cyclical nature of delinquencies and being paid up
- Most caught up after tax return
- Most delinquent after holidays
Why multifamily investors need to be thinking about September
- Unemployment will start to hit caps (safety net goes away)
- Renters may owe on taxes, not realizing UEB taxable
Connect with Damian Bergamaschi Damris Capital
Resources Join Michael’s Investor Incubator Mentoring Program
Register for Deal Maker Live
Join the Nighthawk Equity Investor Club
Damian’s Blog Post on Unemployment
Damian’s Blog Post on Mobile Home Park Investing
Damian’s Blog on Mobile Home Park Investing Performance Post-COVID
Inflation Harvesting
The Case-Shiller Home Price Index
US Bureau of Labor Statistics
Subprime Auto Loan Delinquency Statistics
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
No one knows exactly what will happen in the multifamily real estate market as the Coronavirus pandemic continues to unfold. But the heavy-hitters who have been in the game for a long time can predict, with relative certainty, which markets will thrive, when we’ll see new deal flow, and what the capital markets will look like over the next 12 months.
Michael Becker is a Principal at SPI Advisory and Senior Director of Mortgage Origination at Old Capital Lending. A 15-year veteran of commercial real estate banking, Michael has originated and managed portfolios in all the major asset classes. In the six years since he started investing in multifamily, Michael has acquired 10K units and currently manages a portfolio of 6K doors. He also serves as the Cohost of the Old Capital Podcast.
On this episode of Apartment Building Investing, Michael joins me to discuss the post-COVID new normal in multifamily real estate. He explains how the pandemic is impacting his business and offers insight around what the recovery might look like—and what that means for us as multifamily investors. Listen in for Michael’s predictions on multifamily capital markets and deal flow in the next twelve months and learn what you can do to be ready when the market turns!
Key Takeaways How Michael’s career has evolved over the last several years
- From 1K to 10K units in Dallas-Fort Worth and Austin
- Start in workforce housing then sold old, bought new
How Michael was able to scale so quickly
- Access to capital (JV with HNWI, shift to syndication)
- Leverage technology for efficiency in raising equity
The biggest challenges Michael faced as he built SPI Advisory
- Raise money + find deals while managing portfolio
- Stay organized as scale (e.g.: send 1,200 K-1 forms)
Why Michael’s uses a third-party property management team
- Geographically concentrated in certain area
- No interest in accounting, HR or construction
How the pandemic is impacting Michael’s business
- 5% delinquency on rents (4X normal rate)
- Leasing only down by 15%
Michael’s predictions around the post-COVID recovery
- Multifamily product used more than ever
- Rent softening (how much depends on market)
- Supply will constrict, new construction unlikely
- Increase rental pool as people lose homes
- Accelerating economic migration to Sun Belt
Michael’s predictions around post-COVID multifamily deal flow
- Few deals in Q3, trickle in Q4
- Steady stream of distressed deals starting in 2021
What the capital markets will look like for the next 12 months
- No hard money, financial contingencies available
- Challenging to get Fannie/Freddie loans
- No bridge loans, personal guarantees required
What work Michael is doing on the acquisitions side right now
- Active participant but don’t expect to buy until Q4
- Aware of real-time data, ready when market turns
Where Michael sees his company going in the next five years
- 10K units, continue transition to newer assets
- Team runs day-to-day so Michael can travel
Connect with Michael Becker Old Capital Real Estate Investing Podcast
SPI Advisory
Resources Join Michael’s Mentoring Program
Register for Deal Maker Live
Join the Nighthawk Equity Investor Club
Michael Becker on ABI EP064
The Real Estate Guys Summit at Sea
Ken McElroy
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Those of us who enjoy success in the real estate business are typically introduced to a model, an investor operating at a scale we never considered, who gives us an idea for what’s possible and a vision for the future. And if we’re smart, we can learn from their mistakes and leverage their knowledge and experience as a springboard, affording us a more direct path to our own financial freedom.
Jacob Blackett is the Founder and CEO of Holdfolio, a platform that connects investors with high-yield investments in the real estate industry, and Syndication Pro, a software company that helps syndicators raise capital and manage investors online. Jacob got his start doing fix-and-flips as a 19-year-old sophomore in college, and today, he has placed over $50M into income-producing real estate, building a portfolio of 600+ units (as the lead sponsor) and a network of 3K registered investors.
On this episode of Apartment Building Investing, Jacob joins me to explain how an infomercial inspired his interest in real estate and share his journey from fix-and-flips to wholesaling to SFH rentals to multifamily. He walks us through the steps he took to scale his real estate business, describing why it’s beneficial to have an in-house property management team and how the technology he built to raise capital online became Syndication Pro. Listen in to understand how Jacob overcame losing $40K on his first deal and learn how to avoid his mistakes by joint venturing with an experienced team early on!
Key Takeaways What attracted Jacob to the real estate space
- Free fix-and-flip seminar (sophomore in college)
- Up to $80K for single flip vs. CPA starting salary
Jacob’s experience with his first fix-and-flip
- Picked up deal on MLS with grandma’s capital
- Didn’t go as planned, ended up losing $40K
Why Jacob pivoted from flipping to SFH rentals
- Very transactional, no tax benefits
- Growing portfolio = monthly income stream
Jacob’s first AHA moment around scaling his business
- Create partnerships with investors
- Build portfolio of 150 SFH rentals quickly
What inspired Jacob’s transition to multifamily
- All rentals in one place with staff onsite
- Banks/lenders prefer multifamily
Jacob’s first multifamily deal
- 46-unit with fire damage at 50% occupancy
- Leveraged investor network for capital
What surprised Jacob most about multifamily
- Breath of fresh air (power of all in one place)
- Had to learn a lot about asset management
Jacob’s background working in property management
- Met investor through wholesale deal
- Managed all his acquisitions within 2 years
The benefits of using in-house property management
- Generates revenue once reach 500+ units
- Control and consistency in best practices
Jacob’s first steps for scaling his real estate business
- Implement use of Propertyware software
- Hire talented leasing agent and COO
How Jacob scaled his capital raising efforts
- Crowdfunding sites caught eye early on
- Built website to raise money online
How Jacob bounced back from losing $40K
- Resolve to fix mistakes
- Determined to pay grandma back
Jacob’s advice to his 19-year-old self
- JV on first flips to hedge risk
- Job at multifamily private equity company
Jacob’s advice for aspiring multifamily investors
- Get on experienced team, see where you fit
- Think creatively, don’t be afraid to take job
Connect with Jacob Blackett Syndication Pro
Email jacob@syndicationpro.com
Resources Join Michael’s Mentoring Program
Register for Deal Maker Live
Access Michael’s Syndicated Deal Analyzer
Enroll in Michael’s Deal Maker Mastermind
Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
Join the Nighthawk Equity Investor Club
Propertyware
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Some real estate investments are riskier than others, especially in an economic downturn. Class A multifamily developers, for example, are likely to lose their tenant base in a recession. So, what can developers do to forecast what the world will look like at the end of a build cycle and make decisions accordingly? And what can we ALL learn from this approach that will help us prosper through multiple market cycles?
Scott Choppin is the Founder of Urban Pacific, a real estate development company out of Long Beach, California. With 35-plus years of experience in the business, Scott has led the development of nearly 1,700 units throughout the Western United States. He is also responsible for a recent innovation known as Urban Town House, a middle-income, multigenerational housing product that serves urban families in California. Scott’s work has been featured in Forbes, The Los Angeles Times and Builder Magazine, among many other media publications.
On this episode of Apartment Building Investing, Scott joins me to explain how he got his start working for a large development firm, describing the wide range of skills and knowledge he picked up before striking out on his own. He discusses how he leveraged joint venture partnerships in the early days of Urban Pacific, what the company is doing to mitigate risk in a recession, and why he is optimistic about the current circumstances. Listen in for Scott’s insight on transitioning from a W-2 to real estate development and find out what YOU can do to survive and thrive in an economic downturn.
Key Takeaways How Scott got into real estate development
- Family background in industry
- Work for large firm to learn on job
Why Scott chose another firm over the family business
- No coddling
- Gain broadest, deepest experience
What Scott learned in working for a big developer
- Fill in broad framework of knowledge
- Exposure to every aspect of business
How Scott transitioned into entrepreneurship
- Build network of capital contacts
- Joint venture with other developers
The structure of Scott’s early joint venture partnerships
- Let me manage day-to-day operations of deal
- Defer to senior partner as guarantor
Scott’s advice for shifting out of a salaried position
- Save 2 to 3 years of monthly income in cash
- Build developer fees into deal (overhead coverage)
The challenges around doing development as a side hustle
- Best to learn by working in industry
- Even small, local deal requires daily oversight
What kinds of deals Urban Pacific has done
- Urban infill, residential development
- From duplex to 453-unit multifamily
How Scott thinks about mitigating risk in a recession
- Watch market signals to avoid oversupply
- Focus on workforce housing for stable tenant base
Why Scott is optimistic about the current circumstances
- Accelerated leasing velocity + rents holding
- Lower costs for construction and land
- Greater availability of labor from shutdown
Connect with Scott Choppin Urban Pacific
Scott on LinkedIn
Resources Join Michael’s Mentoring Program
Register for Deal Maker Live
Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
Join the Nighthawk Equity Investor Club
‘6 Ways to Build a Career in the Real Estate Development Business’ by Scott Choppin
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
How do you become a successful multifamily syndicator when you’re not old enough to order a beer? What does it take to overcome objections around being too young and too inexperienced—and raise more than half a million dollars in capital for your very first deal? What’s it like to achieve financial freedom before you turn 21?
Kyle Marcotte is an entrepreneur and multifamily real estate investor with a 119-unit portfolio valued at $5.5M. He was a pre-med student and Division I soccer player at UC Davis when Kyle learned about the potential to generate passive income with real estate. At the age of 20, he raised $600K and closed on his first deal in just four months. Now, Kyle is on a mission to help others become financially free with multifamily investing—regardless of age or experience.
On this episode of Apartment Building Investing, Kyle joins me to explain why he burned the boats and quit college to pursue real estate full time. He discusses how he got brokers and investors to take him seriously despite his lack of experience, sharing what gave him the confidence to keep moving forward through hundreds of no’s—until he finally got a YES. Listen in to understand why Kyle went for such a BIG first deal (a joint venture on 107 units!) and learn what he is doing now to build a personal brand and scale his multifamily syndication business.
Key Takeaways What inspired Kyle to get into real estate
- Read Rich Dad Poor Dad, got educated about passive income
- Quit college to devote energy to multifamily
How Kyle realized he had the personality of an entrepreneur
- Never able to accept being told what to do
- Always trying to figure out best way
What financial freedom means to Kyle
- Cover expenses with cashflow, residual income
- Control over what day looks like
How Kyle got investors to take him seriously at the age of 20
- Own inexperience but sell on grit
- Deal pitch deck with multiple scenarios in story form
The specifics of Kyle’s first joint venture deal
- 107-unit in Louisville (value-add play)
- Raised $600K of $1M for $4.5M purchase price
Why Kyle kept going after hearing hundreds of no’s
- Burned boats and had no other option
- Commit to outcome, eventually someone says YES
Why Kyle went after such a large first deal
- Need 75 units to achieve economies of scale
- Acquisition harder but affords more control of time long-term
The nature of Kyle’s first joint venture partnership
- Partner focused on underwriting
- Kyle worked on raising capital
How things changed for Kyle after his first deal
- Silenced critics, feeling of peace and ease
- Credibility with investors who see as phenom
What Kyle is doing to build his investor base
- Serve as guest on podcast circuit
- Show up consistently on social media
How gave Kyle the confidence to keep moving forward
- Relationship with higher power for guidance
- Voice inside stronger than outside resistance
Connect with Kyle Marcotte Kyle’s Website
Own Your Time with Kyle Marcotte
Kyle on LinkedIn
Kyle on Facebook
Kyle on Instagram
Resources Register for Deal Maker Live
Join Michael’s Deal Maker Mastermind
Join the Nighthawk Equity Investor Club
Join Michael’s Mentoring Program
Michael’s Ultimate Guide to Buying Apartments with Private Money
Rich Dad Poor Dad by Robert T. Kiyosaki
Financial Freedom Summit
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probably, to Inevitable by Hal Elrod
Divi
Mailchimp
ActiveCampaign
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Why are there so few women in multifamily syndication? According to a 2019 study conducted by Merrill Lynch, 61% of women polled cited a lack of knowledge about real estate investing. And the fact that it’s a male-dominated industry is also a contributing factor. So, how do we get more women interested in learning about multifamily—and the financial independence that comes with it?
Kaylee McMahon is the Founder of The Apartment Queen, a platform dedicated to ending abuse and codependent relationships by helping women create wealth with real estate investing. A staple of the Dallas real estate scene, Kaylee has purchased $2M in real estate as Key Principal and currently serves as General Partner in 730 units in Texas and Arizona totaling more than $23M in assets under management. She is also the host of #1 Leading Ladies, a podcast about what it’s really like to be a female entrepreneur.
On this episode, Kaylee joins me to share her path from real estate agent to multifamily investor, discussing how the childhood abuse she suffered gave her the GRIT to keep going when things get tough. She offers her take on how a lack of knowledge around a male-dominated industry keeps a lot of women out of the multifamily game, describing her mission to help people, especially women, achieve the total independence she enjoys. Listen in for Kaylee’s insight on reversing the beliefs that hold you back and get her advice on how to get started with apartment building investing!
Key Takeaways Kaylee’s path to multifamily real estate
- Got start as agent, apartment locator
- Move on to house flips + SFH rentals
- Got into apartments ‘to add zero’
What makes Kaylee a good entrepreneur
- Autonomous (make decisions on own)
- Fast learner, good with people
Why Kaylee made the transition from agent to investor
- All-in on decision to achieve financial freedom
- Not afraid of losing it all, could always bartend
Kaylee’s take on the idea of failure
- Take lessons learned with you to next venture
- Pivot as necessary (e.g.: rent flip vs. sell)
Why Kaylee deals with fear better than others
- Abuse in childhood built tremendous amount of GRIT
- Driven by WHY to help others create independence
Kaylee’s experience with multifamily syndication
- Did first 2 deals on own with help of mentor
- Started partnering with others (raising capital)
- General Partner in 730 units to date
Kaylee’s take on why there are so few women in multifamily
- Lack of knowledge, limiting beliefs
- Male-dominated industry (Good Old Boys Club)
Kaylee’s advice for aspiring multifamily investors
- Learn underwriting, how to vet sponsors and market
- Invest passively but ride along with GP to learn
Connect with Kaylee McMahon The Apartment Queen
The Apartment Queen on Instagram
The Apartment Queen on Facebook
Kaylee on Facebook
#1 Leading Ladies Podcast
Email admin@theapartmentqueen.com
Resources Deal Maker Live
What’s the Best Investment: The Stock Market or Real Estate?
Join the Nighthawk Equity Investor Club
Merrill Lynch 2019 Wealth Decisions Study
Rich Dad Poor Dad by Robert T. Kiyosaki
Scaling Up: How a Few Companies Make It … and Why the Rest Don’t by Verne Harnish
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
No good comes from making decisions out of panic or fear. So, what can multifamily syndicators do to navigate the next couple of months and cover the bills—even if our tenants can’t (or won’t) pay the rent on time? How can we reassure our investors that their money is safe and leverage the available safeguards to make it through the Coronavirus shutdown?
Jason Pero is the multifamily investor and syndicator behind Pero Real Estate, one of the leading real estate firms in Erie, Pennsylvania. Jason and his wife bought their first duplex in 2001 and continued to invest in small multifamily properties while he worked full-time in medical device sales. By 2012, Jason had built a 300-unit portfolio and was able to leave his 9-to-5 to pursue real estate full-time. He started syndicating deals in 2018, and today, Jason owns and self-manages 1K units in Erie County.
On this episode of the podcast, Jason joins me to discuss why he waited so long to get into syndication and why he self-manages his own portfolio. Jason explains how he is navigating the COVID-19 crisis, sharing the safeguards he has in place to get through the next few months and describing his approach to the situation as both a property manager and syndicator. Listen in for Jason’s insight on the buying opportunities coming on the market right now and find out why this is a good time to invest in yourself!
Key Takeaways What inspired Jason to get into real estate
- Internship with financial planning company
- School teachers worth $5M (passive income from real estate)
Why it took Jason so long to take action on syndication
- Limiting belief around loss of control
- Realized could still call shots and serve more people
How the Coronavirus crisis elevates Jason’s mission
- Watched stock market investors’ net worth plummet by 40%
- Real estate provides predictable long-term investment
The safeguards that are helping Jason navigate COVID-19
- Withhold distributions to see how next months play out
- Can still pay bills with 30% economic vacancy
- Go to forbearance only as last resort
Jason’s take on the impact of the Coronavirus as a syndicator
- Lenders still bullish, agency debt still in play
- Social distancing poses challenges to due diligence
Jason’s approach to the Coronavirus as a property manager
- Extend olive branch to good tenants
- Waive late fees, work out payment plan
The buying opportunities coming available right now
- Sellers more flexible with due diligence
- Willing to consider financing contingencies
What makes Jason successful in a rural area
- Greater metro area of Erie = 350K people
- Large influx of outside $ (Buffalo, Cleveland and Pittsburgh)
- Decision to self-manage properties
Why Jason self-manages his own portfolio
- Didn’t know any different in beginning
- Track record through economic upheaval reassures investors
Jason’s advice on navigating a difficult time
- Don’t freak out, look at situation from practical standpoint
- Research options (e.g.: SBA programs)
- Communicate with investors + don’t run out of cash
Jason’s advice for aspiring multifamily investors
- Find mentor or coach who’s been where want to go
- Keep learning and stay humble
Connect with Jason Pero Pero Real Estate
Jason on Calendly
Jason on LinkedIn
Jason on Facebook
Email jasonpero@yahoo.com
Resources Register for Deal Maker Live
Join Michael’s Deal Maker Mastermind
Read Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
Join the Nighthawk Equity Investor Club
Join Michael’s Mentoring Program
Rich Dad Poor Dad by Robert T. Kiyosaki
The Millionaire Next Door by Thomas J. Stanley and William D. Danko
SBA Programs for Coronavirus Relief
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
What are you doing to keep your mindset right during the Coronavirus shutdown? Are you making the most of the extra time at home? Taking advantage of the opportunity to invest in yourself and learn something new? Taking care of yourself, your family, your team, your investors and your tenants?
Vinney Chopra is a sought-after multifamily real estate expert with 12 years of experience and 28 successful syndications under his belt. To date, Vinney and his team of 67 control and self-manage a portfolio of 4,100 units worth $330M. He is also the bestselling author of Apartment Syndication Made Easy and the host of two podcasts, Syndication Made Easy and the Mr. Smiles Motivation Talk Show. Vinney came to the US 43 years ago with just $7 in his pocket, and he credits his success to the power of positive thinking.
On this episode of Apartment Building Investing, Vinney joins me to discuss how his team is dealing with the short-term impact of COVID-19 and what they are doing to support tenants in his properties. Vinny compares his experience in 2008 to the present circumstances, discussing why multifamily is the best business to be in during a recession and sharing his prediction for a V-shaped recovery. Listen in for Vinney’s insight on cultivating a positive outlook and taking care of your physical and mental health through the current crisis.
Key Takeaways How Vinny’s team is dealing with the short-term impact of COVID-19
- Community managers + leasing agents helping people remotely
- Keep mind right, remember that this will pass
How Vinny’s experience in 2008 compares to the current situation
- Little money or experience in 2008, start with just 14 units
- 4,100-unit portfolio today (cash rich and optimistic)
What Vinny’s team is doing to support the tenants in his properties
- Talk to banks, utility companies and authorities for reprieve
- Look for creative ways to help tenants (e.g.: prorate rent)
- Educate residents on available government programs
Vinny’s take on how the stock market drop will impact multifamily
- Properties currently on market will decrease in value
- Lending tough right now, look to individual investors
How a V-shaped recovery is likely to play out
- Short-term cashflow problem resolved in next few months
- Temporary dip in NOI, use cash reserves to get through
How Vinny thinks about buying opportunities in multifamily
- Change in seller behavior likely to shake loose good deals
- Investors who lost $ in stock market looking for better asset
What Vinny is doing to keep his mindset right
- Dress up for day and do morning routine as before
- Make best of time with family, virtual meetups with friends
- Focus on spirituality, mental and physical health
What’s most important to Vinny right now
- Health of family, team and fellow citizens
- Giving back to people in need
Vinny’s advice on making the most of the extra time we have
- Hone in on skills
- Build investor list
How Vinny cultivates a positive outlook
- Feed mind with positivity, make lemonade out of lemons
- God gives us trying times to grow our inner strength
Connect with Vinney Chopra Vinney’s Website
Vinney on Facebook
Apartment Syndication Made Easy by Vinney Chopra
Syndication Made Easy Podcast
Mr. Smiles Motivation Talk Show
Text LEARN to 474747
Resources Register for Deal Maker Live
Read Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
Join Michael’s Deal Maker Mastermind
Join the Nighthawk Equity Investor Club
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
So, you understand the power of digital marketing to help you scale your multifamily syndication business. The question is, where do you start? What are the first steps to building an email list and attracting investors online?
Amy Porterfield is the award-winning digital marketing expert behind Online Marketing Made Easy and the creator of the Digital Course Academy. After seven years serving as the Director of Content Development for Tony Robbins, Amy became an entrepreneur herself and built a multimillion-dollar business teaching other people how to grow their own platform online. An authority in the realm of social media marketing, growing an email list and promoting and selling courses online, Amy is also the coauthor of Facebook Marketing All-in-One for Dummies.
On this episode of Apartment Building Investing, Amy joins me to explain why you need to build an email list, even if you have a strong social media following. She shares the simple steps you can take to attract investors with content and capture their email addresses with the right lead magnet. Listen in for Amy’s insight on using Facebook advertising to grow your audience and learn how to leverage digital marketing to scale your syndication business!
Key Takeaways How Amy got into online marketing
- Started career in corporate marketing (Harley Davidson, Tony Robbins)
- Became own boss 11 years ago teaching how to grow online business
The mistakes Amy made early on as an online entrepreneur
- Didn’t have expertise in niche
- Didn’t have email list
How Amy decided what to create and who to serve
- Got clear on expertise (social media, Facebook marketing)
- Created very specific client avatar
Why an email list is better than social media followers
- Algorithms change, you don’t own social platforms
- You own email list + can use to build relationships
How to start building an email list from scratch
- Create content on consistent basis
- Create irresistible lead magnet (freebie in exchange for email)
How to choose your lead magnet
- Must serve as INVISIBLE BRIDGE for audience
- What avatar needs to know, understand or believe
How to get people to sign up for your email list
- Use content upgrade strategy (if you loved…)
- Make CTA on social posts, bios, podcasts and blogs
What to do if you don’t consider yourself a writer
- Commit to one medium (e.g.: podcast or video)
- Don’t try to be perfect, just show up consistently
The benefits of podcasting as a medium
- Easier than writing or video, keep attention longer
- Podcast platforms promote content for you
Amy’s advice on Facebook advertising
- Keep it simple, start with boosting post
- Upload email list to target ‘lookalike audience’
- Do it yourself before you hire someone else
Amy’s top tips for online marketing
- Start with mindset (i.e.: set small goal of 250 on list)
- Simplicity is your friend
Connect with Amy Porterfield Amy’s Website
Amy’s Free Masterclass: How to Start and Grow an Email List (Without the Stress, Tech Confusion, or Crazy Overwhelm
Marketing Made Easy Podcast
Resources Watch the Replay of Michael’s Platform Builder Framework Webinar
Schedule a Call to Learn More About Michael’s Platform Builder Workshop
Facebook Marketing All-in-One for Dummies by Amy Porterfield, Phyllis Khare and Andrea Vahl
ActiveCampaign
Nighthawk Equity
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
What’s the #1 mistake syndicators make in building an online platform? Many put the cart before the horse and promote their business BEFORE the site is ready. They don’t provide a compelling reason to GO to their platform, and they have no way of capturing a visitor’s information once they get there. So, what can you do to score a lead’s email address and grow a substantial list of potential investors?
Monick Halm is the creator of Real Estate Investor Goddesses, a platform designed to help 1M women achieve financial freedom through real estate investing. To date, she has built an audience of more than 10K potential multifamily investors! Monique has 14 years of experience as an investor, syndicator and developer, building wealth through apartment buildings, mobile home parks, vacation rentals and ground-up development. Together with her husband and community of investors, she owns 1,300-plus units across 5 states.
On this episode of the podcast, Monick joins me to explain what keeps women on the sidelines of multifamily investing and how she is getting more women involved through Real Estate Investor Goddesses. She shares her process for raising money for a deal through the platform, discussing why it’s crucial to capture each visitor’s email address and what she does to drive traffic to the site. Listen in for Monick’s insight on getting educated on multifamily during this unique moment in time and learn what she did to build a list of 10K in a very short period!
Key Takeaways Monick’s background in the multifamily space
- Started syndicating in 2016 (focus on multifamily)
- Mission to help women achieve financial freedom
What keeps women from getting involved in real estate
- Don’t even know it’s a possibility
- Don’t know what steps to take
- Afraid to get cheated, lose money
How to get more women involved in real estate investing
- Provide education to collapse timelines
- See people who look like them in success stories
- Overcome limiting beliefs of what wealth means
What inspired Monick to build the REI Goddesses platform
- Got idea at Real Estate Guys event
- Already coaching women around money
- Mission + name came as divine download
Who Monick attracts through her platform
- Passive investors + aspiring syndicators
- Majority are busy professional women
The process of raising money for deals with a platform
- Promote on podcasts, Facebook ads
- Provide value to list (e.g.: emails, webinars, etc.)
- Share heart to help and serve
How Monick went about building REI Goddesses
- Start with Facebook group, added podcast and book
- Facebook ads to build list (500 to 10K in single year)
Why it’s crucial to capture a site visitor’s email address
- Valuable connection you control
- Provide freebie (i.e.: Real Estate Success Blueprint)
How Monick justifies a significant investment in paid traffic
- Spends $3K to $5K per month for Facebook ads
- Single program sale covers cost of acquisition
- Build relationships for life, not just one transaction
Monick’s approach to marketing her platform
- Choose one or two paths to start
- Hire experts (more than pay for selves)
Monick’s advice on navigating the Coronavirus crisis
- Get educated now to spot opportunities later
- Take advantage when others running scared
Connect with Monick Halm Real Estate Investor Goddesses
REI Goddesses on Instagram
REI Goddesses on Facebook
REI Goddesses on Twitter
REI Goddesses Podcast
Resources Deal Maker Live
Michael’s Platform Builder Workshop
Real Estate Investor Goddess Handbook by Monick Paul Halm
Pat Flynn on ABI EP210
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
So, you want to connect with potential investors online. But how do you go about building a thought leadership platform? What kind of content should you create? And how do you best serve your audience so that they are ready to invest when a deal comes up?
Pat Flynn is the creator of Smart Passive Income, the premiere learning and development platform for online entrepreneurs. He got into online marketing out of necessity in 2008 when he was laid off from his dream job as an architect. Since then, Pat has built several successful online businesses and impacted millions of people around the world. He credits his success to serving others first, and then building systems to lean into that service even more.
On this episode of Apartment Building Investing, Pat joins me to explain how he got into the online marketing space and why he thinks EVERYONE should build a thought leadership platform. He offers insight into the power of podcasting, sharing how YOU can start a podcast of your own for under $100. Listen in for Pat’s insight on what to consider as you create an online platform and get his top tips for producing consistent content that serves your audience!
Key Takeaways How Pat got into the online marketing space
- Let go from dream job as architect in 2008 with no Plan B
- Inspired by podcast to build website on LEED exam
- Published study guide, made nearly $8K in single month
- Started Smart Passive Income to help others start businesses
Pat’s response to the Why Me? objection
- Don’t have to be expert, just few steps ahead of audience
- Show up as person and connect to build superfans
How Pat defines smart passive income
- Not get rich quick, have to put in work
- Mechanisms in place to pay back later
The business model for an online venture
- Pick target market, research needs
- Create platform to demo authority
- Monetize (sponsorships, ads, products, affiliate marketing or pledge)
Why Pat thinks EVERYONE should build a platform online
- Place to connect (nobody’s like you)
- Build relationships and authority
What to consider in building a platform
- Choose 1 format to start (e.g.: blog, podcast, YouTube channel)
- Commit to producing content consistently
Pat’s tips for producing regular content
- Planning session every quarter
- Focus on questions people ask
What Pat loves about podcasting
- Ease of creation (after initial setup)
- Build amazing relationships with listeners
- Evergreen content
How to start a podcast
- Decide on topic and how helps people
- Establish name, artwork and branding
- Get mic + hosting service (<$100)
The biggest mistakes new podcasters make
- Launch with single episode (at least 3)
- Try to fit in specific time vs. range
- Don’t publish regularly
- Edit every breath or ‘um’
Pat’s top advice for aspiring platform builders
- Consider what you’re missing out on by NOT doing it
- Get started with intention of helping 1 real person
Connect with Pat Flynn Pat’s Top Resources
Pat’s Website
Smart Passive Income
Resources Deal Maker Live
Michael’s Free Platform Builder Webinar
Rich Dad Poor Dad by Robert T. Kiyosaki
Traffic & Conversion Summit
Internet Business Mastery
Superfans: The Easy Way to Stand Out, Grow Your Tribe, and Build a Successful Business by Pat Flynn
Patreon
SwitchPod DSLR Tripod
WordPress
Squarespace
Wix
Gary Vaynerchuk
Tim Ferriss
Pencils of Promise
The Joe Rogan Experience
Ask Pat
Apple Podcasts
Google Podcasts
Spotify Podcasts
Stitcher Radio
Pat’s YouTube Tutorial on How to Start a Podcast
Samson Q2U Mic
GarageBand
Adobe Audition
Audacity
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Imagine being able to raise millions of dollars for a syndication deal in just a few days, with very little effort on your part. If you build it right, an online platform allows you to do just that, scaling your capital raise business by 10X in just 12 to 18 months!
Kate Buck is the Director of Marketing for us here at The Michael Blank organization. With nearly 15 years of experience in social media management and content production, Kate has worked with some of the top names in the digital marketing space and led strategic social media campaigns for global corporations, films, entrepreneurs and nonprofits.
On this episode, Kate turns the tables to ask me some questions about building an online platform to raise capital for multifamily syndications. We discuss what it takes to build an effective digital marketing platform and why you DON’T have to be a writer or a tech genius to do it. Listen in for the 4 things your platform needs before you try any of the more advanced marketing strategies (like paid advertising) and learn how I leveraged our online platform to raise $8M in 3 days!
Key Takeaways Kate’s extensive background in digital marketing
- Work with pioneers in online marketing space
- Expert in social media and content production
How I learned the value of online marketing to raise capital
- Struggled to raise money for deal 18 months ago
- Realized not engaging list beyond lead capture
- Started producing weekly content for audience
- Able to raise $8M in 3 days for recent deal
Why syndicators need to create an online platform
- Scale capital raising business (10X in 12-18 months)
- Impact and serve more people, grow influence
The function of an online platform for syndicators
- Attracts certain kind of person/investor
- Capture information (e.g.: email address)
- Serve audience with educational material
- Lead audience to some transformation
The biggest mistakes syndicators make in creating a platform
- No way to capture lead on website
- No follow-up to make leads deal ready
- Overwhelmed by process, do nothing
- Think every element must be perfect
Why ANYONE can build an online platform to raise capital
- Can create original content without being writer
- Never been easier to use technology
- Easy to outsource content production
The 4 things your platform needs before you try advanced strategies
- Method of capturing leads
- Series of automations to welcome and indoctrinate
- System for onboarding to investor club
- Infrastructure + commitment to produce regular content
Some advanced marketing strategies for promoting your platform
- Promote lead magnet at Meetup, on podcasts
- Shout out lead magnet on YouTube channel
- Suggest next best action (e.g.: book + companion course)
- Paid traffic through Facebook
The business case for building an online platform to raise capital
- Invest at least 20% of acquisition fee in marketing machine
- Convert industry standard 1 investor for every 32 leads
- Earn about $2,100 for average investment of $70K each
Connect with Kate Buck Kate’s Website
Kate on LinkedIn
Kate on Twitter
Kate on Facebook
Resources Deal Maker Live
Sign Up for Michael’s Live Webinar—April 15 at 8pm EST
Michael’s Spreadsheet & Blog Post on Building a Platform
Temi
Financial Freedom with Real Estate Investing by Michael Blank
Join the Nighthawk Equity Investor Club
Joe Fairless
Dan Handford
Neal Bawa
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Beyond the risks it poses to our health, the Coronavirus is causing chaos in our economic system as well. Businesses have closed their doors and many Americans have lost their jobs or had their hours cut. And the stock market is on its way down. But what does it all mean for us as multifamily investors? Is the sky falling? Or are there things we can do to protect ourselves and serve our tenants in this challenging time?
On this episode of Apartment Building Investing, I’m sitting down with an expert panel of multifamily operators that includes Drew Kniffin, Brian Burke, John Cohen, Reed Goossens, Andrew Cushman and Ellie Perlman to discuss what we are doing to protect our investments and our investors through the Coronavirus pandemic. We share our strategies for income preservation and expense reduction, explaining how we are supporting tenants through the crisis and what programs we are leveraging to keep our employees on payroll.
We go on to address how COVID-19 is likely to impact passive investors and offer insight on what they can do to take advantage of the shift to a buyer’s market. Finally, we explore the short-, medium- and long-term implications of the economic fallout from the Coronavirus and describe the incredible wealth-building opportunity available to savvy real estate investors in the months to come. Listen in to understand what defines a good deal in the current environment and learn how to use this time to prepare for the next up cycle!
Key Takeaways What Andrew is doing as an owner to protect his investments
- Put together resources for tenants
- Negotiate with service providers to cut costs
- Apply for Paycheck Protection Program
- Flexible with tenants, reward early payment
- No increase in rent on lease renewals
How John’s team is navigating the Coronavirus crisis
- Reach out to tenants with message ‘here for you’
- Focus on tenant retention, mitigating expenses
Ellie’s insight on tenants who can’t pay vs. tenants who won’t
- CARES Act prohibits evection whether lost job or not
- Depends on prior relationship with tenants, location
The additional things Ellie’s team is doing to navigate COVID-19
- Offer furnished model units to traveling nurses
- Security deposits to pay rent, replace with insurance
The additional things Brian’s team is doing to navigate COVID-19
- Refer tenants to Project Porchlight financial counseling
- Postpone rent or amortize over next several months
- $50 grocery gift card if reach out to explain situation
Brian’s insight into the Paycheck Protection Program
- SBA loan to cover 2.5X payroll if keep employees
- May not apply to third-party property manager
Reed’s perspective on the Coronavirus crisis
- Keep hysteria manageable, get good info to tenants
- Share maintenance tech across portfolio
How Drew and Brian think about the risk for passive investors
- Money safe if deal well-capitalized + plenty of reserves
- Most sponsors halt distributions next quarterly cycle
- Little/no rent growth and reduced occupancy for awhile
John’s insight on how the crisis will change lender behavior
- Vet sponsors harder moving forward
- Require 12-plus months of reserves
The overnight shift from a seller’s market to a buyer’s market
- Must assess risk of unknown (focus on #s, not emotion)
- Buyers ask for discount based on current financials
What passive investors should do in the short-term
- More opportunity to invest in quality deals
- Conduct proper due diligence on operator
Our predictions around what to expect in the short term
- All feel pain as transaction velocity grinds to halt
- Be proactive, lenders willing to work with us
Our predictions around what to expect in the medium term
- Take time for income and job growth to recover
- Wealth building opportunity if not too anxious
Our predictions around what to expect in the long term
- Look back and laugh in years to come
- Grow and get stronger from weathering storm
How to stress test acquisitions in this new environment
- Over-raise for operations and capital expenditures
- Reduces IRR but money on hand for rainy day events
Why it’s hard to underwrite deals right now
- No good info on change in economic vacancy rates
- Year-on-year rental growth will take massive hit
How student housing may be affected by the Coronavirus crisis
- Protected if parent guarantee in leases, semester vs. year
- Consider reaching out to hospitals to provide extra beds
How the stock market crash will affect our ability to raise capital
- Some investors not as liquid due to stock market losses
- Those with capital to deploy may prefer real estate
What the average investor should be doing right now
- Get educated and line up investors
- Start underwriting deals, develop parameters
- Choose markets likely to come back quickly
- Don’t get too excited but be ready for up cycle
The moratorium on evictions due to COVID-19
- Local governments not processing evictions at this time
- Forbearance requires not evict anyone over term of loan
The potential growth of secondary and tertiary markets
- Less dense = safer than tight, urban environments
- Also depends on economic makeup of area
What defines a good deal in this environment
- 60- to 90-day due diligence
- No hard money down, financing contingency
- Mitigate risk with conservative underwriting
- Retrade with integrity if value goes south
The 5 steps for making a successful shift to entrepreneurship
- Singular focus
- Measurable action plan
- Proper time management
- Understanding of finances
- Accountability
Connect with the Expert Panel Drew Kniffin
Brian Burke
John Cohen
Reed Goossens
Andrew Cushman
Ellie Perlman
Resources Deal Maker Live
Deal Maker Mastermind
Michael’s Products & Programs
Michael’s Mentoring Program
Nighthawk Equity
The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications by Brian Burke
CARES Act
Paycheck Protection Program
Project Porchlight
Josh Thomas
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Are you working a W-2 job that leaves you depleted? Even if you love what you do, it’s likely that the stress of the commute on top of the work itself means you have little left to give to your family at the end of the day, never mind making a significant impact on the world at large. Krista Wilper was tired of being too tired to engage with her husband and sons, so she leveraged multifamily investing to quit her corporate job. And she credits her success to a daily effort to keep her mind in the right place.
Krista is the creator of Synergy Invested LLC, a real estate education and investing platform based in Golden, Colorado. She retired from her executive position at an adult beverage company at the age of 38, walking away from a six-figure income to pursue real estate full time. Now, Krista and her husband own $2.2M in single and multifamily investments, and she is on a mission to help others achieve financial freedom and get control of their time and energy through real estate investing.
On this episode of Apartment Building Investing, Krista joins me to explain why she quit a job she loved to pursue real estate, sharing the series of conversations she had with her husband and what she loves most about not working a 9-to-5. She discusses why she took action when so many others don’t and explores why there are so few women in the world of multifamily. Listen in for Krista’s insight on the value of hiring a coach, getting the right support system in place, and training your mind for multifamily investing!
Key Takeaways Why Krista made the decision to quit a job she loved
- Stress around being both mom AND executive
- No energy to discipline son caused tension with husband
What the conversation with Krista’s husband was like
- Planned on retiring in 5 years, counted on her income
- Doubted that she could get him out with real estate
Why Krista took action when so many others don’t
- Ability to push outside comfort zone + manage fear
- Surrounded self with encouraging people
- Kept returning to numbers when emotions came up
- Daily effort to keep mind in right place
- Something bigger than self to keep on track
What Krista loves most about not working a 9-to-5
- Energy to juggle responsibilities as mom
- Time to focus on helping other people
Krista’s primary real estate investing goals
- Double net income
- Allow husband to retire in 3 to 5 years
The first steps Krista took to reach her investing goals
- Hired a coach (helped think BIG)
- Eliminated naysayers from circle
Krista’s insight on overcoming both internal and external challenges
- Find something bigger than yourself to chase
- Train your mind (stop comparing, listening to excuses)
- Understand your relationship with money + limiting beliefs
- Take action even when you don’t know what you’re doing
- Hire coaching
- Come back to numbers
Krista’s take on why there aren’t more women in investing
- Brains operate differently (spaghetti vs. waffles)
- Ego in thought leader communication = turnoff for women
Krista’s advice for aspiring multifamily investors
- Get coach
- Get mind right
- Get support group in place (includes partner and team)
- GO
Connect with Krista Wilper Krista on LinkedIn
Synergy Invested on Instagram
Synergy Invested on Facebook
Resources You Are a Badass at Making Money: Master the Mindset of Wealth by Jen Sincero
The Real Estate Guys
Michael’s Mentoring Program
Deal Maker Live
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Once you’ve exhausted your sphere of influence, where can you go to raise capital for multifamily deals? You might be surprised to learn that LinkedIn is one of the best places to connect with high-net-worth individuals (HNWI) and introduce them to the benefits of apartment building investing.
Yakov Smart is the creator of LinkedIn Lead Enterprises, a platform designed to help business owners find clients on LinkedIn. An internationally recognized LinkedIn expert, Yakov teaches top CEOs, bestselling authors and real estate syndicators how to transform their LinkedIn profiles into priceless, relationship-building assets. Yakov is also the author of Disrupting LinkedIn: The Definitive Guide to Generating Leads, Receiving Referrals and Attracting High-End Clients Through Marketing on LinkedIn.
On this episode of Apartment Building Investing, Yakov joins me to explain why LinkedIn is the best social platform for finding investors and raising capital for multifamily. He shares the biggest mistakes syndicators make on LinkedIn and walks us through his SPOT formula for finding leads through the professional networking platform. Listen in for Yakov’s insight on the tools available for building lists and learn how YOU can connect with the right people, send the right message, and scale your marketing efforts with LinkedIn.
Key Takeaways Yakov’s take on the availability of capital for real estate
- HNWI not on traditional social media channels
- Use LinkedIn to find + educate right people
Why LinkedIn is the best platform for finding investors
- Average household income = $115K
- Use to expand professionally and build wealth
- 40M direct decision-makers, 100M influencers
Why LinkedIn works well for raising capital
- More interactive since bought by Microsoft
- Make connections and learn on own time
How Yakov discovered LinkedIn as a lead source
- Used to generate new business (software sales)
- Market to hard-to-reach individuals
The biggest mistakes people make on LinkedIn
- Being unintentional
- Profile not up-to-date, all about you
- Pitch everyone with same message
- Focus too much on content creation
Yakov’s SPOT formula for finding leads on LinkedIn
- Start with your list
- Position self as authority
- Optimize for what THEY want
- Transition relationship offline
The four ways to build lists on LinkedIn
- Free search
- Search by groups
- Sales navigator search
- Paid traffic
How to scale your marketing efforts on LinkedIn
- Use AI to automate custom follow-up
- Respond manually only when raise hand
How to convert investors from stocks to real estate
- Use information-based marketing
- Build LinkedIn groups
Connect with Yakov Smart LinkedIn Lead Enterprises
Yakov on LinkedIn
Resources Michael & Yakov’s LinkedIn Webinar
Disrupting LinkedIn: The Definitive Guide to Generating Leads, Receiving Referrals and Attracting High-End Clients Through Marketing on LinkedIn by Yakov Savitskiy
Yakov’s Irresistible Profile Cheat Sheet
Meet Edgar
Michael’s Platform Builder Framework Webinar
What’s the Better Investment: The Stock Market or Real Estate?
Nighthawk Equity
Michael’s Investor Incubator
Deal Maker Live
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
What is your true, God-given calling in this life? Most of us are limited by time and money, so we don’t even dare to dream about fulfilling our purpose. But what if multifamily investing could give you the freedom to pursue your calling? To live a life of significance? And to make a real impact in the world?
Ellis Hammond is the founder of Kingdom Capitalists, the #1 mastermind for Christian real estate entrepreneurs. In 2018, when Ellis was serving as a full-time college pastor, he and his wife invested in a $600K duplex in San Diego. Nine months later, he added a 144-unit multifamily property in Memphis to his portfolio. Today, he manages a network of investors seeking passive income opportunities across the US with the goal of increasing their income and impact.
On this episode of Apartment Building Investing, Ellis joins me to discuss what inspired him to get involved in real estate, sharing his AHA moment around the relationship between capital and impact. He opens up about the limiting beliefs he struggled with early on, describing the mindset shift that helped him get comfortable asking investors for very large sums of money. Listen in for Ellis’ insight on the power of community in real estate investing and learn how multifamily can give YOU the freedom to pursue your true calling.
Key Takeaways What inspired Ellis to get involved in real estate
- Running Christian nonprofit in San Diego
- Team member struggling to buy groceries
The Christian community’s limiting mindset around money
- Seen as root of all evil
- Ministry needs capital to create greatest impact
How Ellis’ approach to real estate investing evolved
- Bought and renovated $600K duplex in San Diego
- Introduced to syndication (leverage money raising skills)
The limiting beliefs Ellis struggled with early on
- Thinking had to be millionaire to do multifamily
- Scared to go big, ask for 10X sums of money
Ellis’ concept of creating margin in your life
- Real estate gives freedom of time or money
- Use to fulfill God’s calling on your life
What allowed Ellis to quit his job to pursue multifamily
- Support of wife and team in ministry
- Realized okay to pursue different calling
What Ellis is passionate about right now
- Launch mastermind for Christian investors
- Increase income + impact to change world
Why Ellis loves the community of real estate investing
- Don’t have to love everything about process
- Accelerate goals with just ONE connection
Ellis’ advice for aspiring multifamily investors
- Figure out + leverage your superpower
- Don’t have to do it alone
Connect with Ellis Hammond Kingdom Capitalists
Ellis’ Website
Ellis on LinkedIn
Email ellis@kingdomcapitalists.co
Resources Rich Dad Poor Dad by Robert T. Kiyosaki
Uganda Counseling and Support Services
Deal Maker Live
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
If you’re looking to scale your efforts at raising capital with an online platform, you may be curious what you can and cannot do to market your business. What exemptions do you need to file in order to legally advertise a multifamily offering? How do you build the ‘preexisting and substantive’ relationship with investors the SEC requires for the 506(b) when you’re connecting online?
Gene Trowbridge is the managing partner of Trowbridge Sidoti LLP, a California law firm that specializes in real estate syndications and crowdfunding. Gene has extensive experience in commercial real estate investment, and in the last six years, his firm has authorized securities offering documents for more than $1.5B of equity raised. He is also the author of It’s a Whole New Business, the definitive book on securities for multifamily investors.
On this episode of Apartment Building Investing, Gene joins me to discuss the two methods for legally advertising a real estate syndication (online or otherwise), the Reg A and 506(c). He explains why the 506(b) is more popular than the 506(c) and offers advice on proving a preexisting and substantive relationship with investors per the rules of the 506(b). Listen in for Gene’s insight on doing a 1031 Exchange in a syndication and learn how to leverage the tenant in common agreement to bring on new investors.
Key Takeaways The two ways to legally advertise a real estate syndication
- Regulation A+
- Regulation D 506(c)
What syndicators need to know about the Reg A
- Costs $50K to $100K and takes 4 to 6 months
- Works for syndicators with huge social network
Why more investors don’t do a 506(c)
- Most sophisticated sponsors have enough investors
- Requires third-party verification of accredited investors
The SEC rules around the 506(b)
- Not allowed to advertise offering
- Must show substantive + preexisting relationship
What it means to have a substantive + preexisting relationship
- More than just collecting email address
- More interactions = easier to prove
Gene’s advice on proving a preexisting relationship
- Develop record-keeping system to track interactions
- Use introductory questionnaire (sign and date)
How to work with an investor with 1031 Exchange money
- Cannot invest in LLC (must be deed to deed)
- Make them tenant in common in new ownership structure
What to do when some of your LPs want their money from a sale
- Interview investors prior to sale re: potential for 1031
- Open two separate escrow accounts (one for holdouts)
How to bring on new investors in a 1031 Exchange project
- Operating agreement may allow for new investors in LLC
- Two separate LLCs as tenants in common (= partnership)
Connect with Gene Trowbridge Trowbridge Sidoti LLP
It’s a Whole New Business by Gene Trowbridge, Esq. CCIM
Resources Regulation A
Regulation D
No Action Letters
1031 Exchange
Gene’s TIC (Tenant In Common) Epidemic Webinar
Opportunity Zones
How to Raise Millions in Days with the Platform Builder Framework
Deal Maker Live
What’s the Best Investment: The Stock Market or Real Estate?
Nighthawk Equity
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Imagine earning as much as $10K in cashflow distributions from your investment in a multifamily property in a given year—yet claiming a taxable LOSS! You CAN mitigate (and in many cases even eliminate) taxable income for years with the MAGIC of bonus depreciation. But you do need to do a cost segregation analysis to claim it.
Terry Judge is the Founder and CEO of CORE Solutions Group, one of the nation’s leading cost recovery consulting firms specializing in engineering-based cost segregation studies. He is committed to educating multifamily investors on how to maximize cashflow and take full advantage of the ever-changing tax code. Terry has 14 years of experience in the cost seg space, yielding more than $1B in net tax savings for CORE clients.
On this episode of Apartment Building Investing, Terry joins me to discuss the benefits of doing a cost segregation analysis, explaining how it accelerates depreciation and mitigates the investor’s taxable income. He describes how changes to the 2017 tax code in made it useful for even small multifamily buildings to leverage a cost seg study and walks us through the advantages of taking bonus depreciation in Year 1 (versus spreading it out over the hold period). Listen in for Terry’s insight around the best exit strategies for avoiding a big tax bill and learn about the additional tax breaks you can earn with energy-saving renovations.
Key Takeaways How Terry got into cost segregation analysis
- Work in energy space, introduced to idea by accountant
- Noticed gap between government, CPA and investor
The benefits of doing a cost segregation analysis
- Way to accelerate depreciation (from 27½ to 5 years)
- Take advantage of time value of money
- Mitigate taxable income, 20-year carry forward
What a cost segregation analysis looks like
- Breaks property down into component parts
- Apply depreciation schedule one by one
How the 2017 Tax Cuts and Jobs Act changed cost seg
- Smaller properties qualify ($500K)
- Take bonus depreciation in Year 1
The process of working with Terry’s team at CORE
- Send purchase price/date and address
- Kickoff call to go over benefit analysis
How much it costs to get a cost segregation analysis
- Varies by location, requirements
- 15:1 return on investment
How to avoid a big tax bill when you sell a property
- Hold 3+ years to leverage time value of $
- Impact lessened as value of assets reduced
- Buy new property same year to offset gain
Why Terry advises taking bonus depreciation in Year 1
- Can opt to spread out over hold period
- Investors carry forward losses if can’t use
The Energy Efficient Commercial Buildings Deduction
- Incentivizes energy saving renovations
- Includes lighting, HVAC and building envelope
- Up to $180K in additional depreciation
Connect with Terry Judge Core Solutions
The Cost Seg Guy No-Cost Benefit Analysis
Resources Tax Cuts and Jobs Act of 2017
IRC 179D
Deal Maker Live
What’s the Best Investment: The Stock Market or Real Estate?
Nighthawk Equity
Michael’s Mentoring Program
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Two years ago, Will Harvey thought that only people with millions of dollars could own apartment buildings. And then he started listening to podcasts and reaching out to other entrepreneurs and real estate investors. Their stories broke the ceiling on what he thought was possible, and by the end of 2019, Will was able to quit his W-2 job and pursue multifamily full time.
At just 26 years of age, Will is the Vice President of CEO Capital Partners, a real estate acquisition firm focused on multifamily. A veteran of the residential mortgage business, Will earned National Rookie of the Year honors in 2017 and operated in the top 5% at one of the largest retail lenders in the US. Now, he controls over $1.5M of real estate in Northern Virginia. Will is also the cohost of Wealth Junkies, a podcast dedicated to sharing the stories of successful entrepreneurs and liberating 1,000 people from the rat race.
On this episode of the podcast, Will joins me to talk about how being hell bent on getting OUT of his W-2 job led him to real estate investing. We discuss how Will leveraged multifamily podcasts to turn his car into a mobile university, how he found his joint venture partners, and what steps he took to quit his 9-to-5 at the end of 2019. Listen in for Will’s insight on building the Wealth Junkies platform and get his advice on surrounding yourself with people who’ve done what you want to do.
Key Takeaways How Will got into real estate investing
- Looking for way out of mortgage business
- Started with house hacking SFHs
How Will got educated around multifamily
- Listening to podcasts (car = mobile university)
- Reach out to dad’s friends in real estate
Will’s initial multifamily strategy
- Wanted to invest locally in Winchester
- Realized pond too small to find good deals
Will’s insight on the value in joint venturing
- Accelerates progress to work together
- Play to strength in building relationships
Will’s first deal through CEO Capital Partners
- Raise capital for experienced operator (cosponsor)
- Afforded team credibility with brokers
The steps Will took to quit his job
- Lived well below means
- Refi one property, increased rent on SFHs
- Passive investment in multifamily
Will’s take on what building a platform does for you
- Position self as thought leader
- Create funnel to capture info
- Raise capital beyond local investor network
What Will would tell his younger self
- Think BIGGER
- Change I can’t to How can I _______?
Why Will recommends listening to podcasts
- Accelerates learning
- Break ceiling of what thought possible
Will’s vision of the next five years
- Expenses covered
- Continue to grow + scale
Will’s advice for aspiring multifamily investors
- Seek advice from qualified people
Connect with Will Harvey Wealth Junkies
Email will@wealthjunkies.com
CEO Capital Partners
Resources Deal Maker Live
Bigger Pockets Real Estate Podcast
Corey Peterson
CoStar
LoopNet
The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results by Gary Keller with Jay Papasan
Rich Dad Poor Dad by Robert T. Kiyosaki
Trump: The Art of the Deal by Donald J. Trump with Tony Schwartz
Syndicated Deal Analyzer
Michael’s Platform Builder Framework
Nighthawk Equity
Michael’s Mentoring Program
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
What excuse are you using to explain why you haven’t gotten started with multifamily? Too young? Too old? No money? No experience? No time? What if those limiting beliefs are nothing more than a story you’re telling yourself to justify a lack of action? What if you could overcome those beliefs TODAY and take the first steps toward financial freedom?
Rod Khleif is a multifamily investor, business consultant and high-performance coach with a passion for giving back. He serves as the host of the iTunes top-ranked podcast Lifetime Cash Flow Through Real Estate Investing and author of How to Create Lifetime Cash Flow Through Multifamily Properties, a must-read for aspiring investors. Rod has built several successful multimillion-dollar businesses, and he is known as one of America’s top real estate investment and business development trainers.
On this episode of Apartment Building Investing, Rod joins me to offer insight on what’s really behind the limiting beliefs that keep us from getting started in multifamily and share his responses to some of the most common excuses aspiring investors give. We discuss the burning desire and positive expectation that successful investors have in common, and Rod explains how he deals with setbacks and challenges. Listen in for Rod’s take on the top habits of highly successful people and learn to leverage gratitude to succeed in multifamily real estate!
Key Takeaways Rod’s insight on what’s behind limiting beliefs
- Stories we tell ourselves (circuit breakers)
- Justify lack of action
Rod’s response to ‘I don’t have time right now’
- Not important enough to you
- Priorities vs. time management
Rod’s response to ‘the market is too hot’
- Must really want it, be willing to hustle
- 500 doors under contract in 3 states
Rod’s response to ‘I don’t have any experience’
- Now = BEST time to learn multifamily
- Market correction will bring opportunity
Why it’s crucial to celebrate progress
- Recognize growth as person
- More important than goals
What successful people have in common
- Burning desire
- Positive expectation
How to deal with the inevitable setbacks
- Exercise to mitigate stress
- Focus on what you want
- Surround self with right people
The habits of highly successful people
- Take first step
- Commit to outcome
- Play to strengths
- Passion & influence
- Peer group
- Tenacity/grit
Rod’s advice for aspiring multifamily investors
- Gratitude = most important emotion
- Remember why love life every day
Connect with Rod Khleif Rod’s Website
The Lifetime Cash Flow Through Real Estate Podcast
Rod on Facebook
Rod’s Multifamily Bootcamp
Text PARTNERSHIP to 41411 for Rod’s Partnership Questions
Text THINKING to 41411 for Rod’s Gratitude Prompts
Text ROD to 41411 for Rod’s Due Diligence Checklist
Resources Deal Maker Live
Rod Khleif on ABI EP038
Rod Khleif on ABI EP088
Books by Napoleon Hill
The Secret
Hal Elrod on ABI EP165
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
The 5 Love Languages: The Secret to Love That Lasts by Gary Chapman
The Slight Edge: Turning Simple Disciplines into Massive Success and Happiness by Jeff Olson and John David Mann
Three Feet from Gold: Turn Your Obstacles into Opportunities by Sharon L. Lechter and Greg S. Reid
Tony Robbins
Michael’s Mentoring Program
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
What do the most successful among us have in common? The biggest of the big-name real estate investors and influencers I’ve had the pleasure to interview on this podcast share one thing—a mission beyond money. Yes, financial freedom is important. But without purpose, what’s the point?
On this episode, I’m celebrating our 200th show with a highlight reel of the best Apartment Building Investing podcasts from the past year. We look back at my interview with Rich Dad Advisor Ken McElroy as he shares how his thinking has evolved around financial freedom and what it means to be successful, and return to my conversation with Robert Helms of The Real Estate Guys around his mission to both educate and inspire action.
We revisit legendary entrepreneur and investor Robert Kiyosaki’s insight on spiritual discipline and bestselling author Hal Elrod’s take on the REAL purpose of setting goals. Listen in for marketing icon Kyle Wilson’s advice on building a platform and get inspired by billion-dollar investor and influencer Grant Cardon’s definition of true wealth.
Key Takeaways What financial freedom means to Ken McElroy
- Initial goal to be own boss, cover expenses
- Scale business as expenses increase
How Ken McElroy’s definition of success changed over the years
- From ‘job’ to ‘good job I really enjoy’
- Shifted to focus on money, being millionaire
- Now involves relationships with family + kids
What gets Ken McElroy out of bed in the morning
- Sense of purpose
- Desire to contribute
The Real Estate Guys’ mission
- Put education to work via effective action
- Create community + collapse time frames
The secret to Robert Helms’ success
- Recognize economic reality beyond real estate
- Understand other investing opportunities
How Robert Kiyosaki learned spiritual discipline
- Marines focus on mission to bring fellow man home
- Business world only mission to make money
- Boundary of life + death gets in touch with God
Robert Kiyosaki’s take on the three kinds of money
- Gold + silver = God’s money
- Government money = fake
- People’s money (e.g.: Bitcoin)
Hal Elrod’s insight on the REAL purpose of setting goals
- Develop qualities + characteristics of goal-achiever
- Growth on journey more important than hitting target
Hal Elrod’s take on why traditional affirmations don’t work
- Taught to lie to ourselves, use passive language
- Affirmation must be paired with action
Kyle Wilsons’ insight on the principles of marketing
- Provide great product, customer service
- Be consistent + relational
Kyle Wilson’s must-haves for a website
- Mystique
- Taglines
- Social proof
- Creative opt-in
What gets Grant Cardone out of bed in the morning
- Build legacy for family, church + community
- Produce something of value = live forever
Grant Cardone’s definition of wealth
- Money, time, love, health, fun and PURPOSE
- Keep learning to contribute on another level
Resources Enter to Win a Free Copy of Michael’s Book
Michael’s Ultimate Guide to Apartment Building Investing
Ken McElroy on ABI EP133
Robert Helms on ABI EP156
Robert Kiyosaki on ABI EP160
Hal Elrod on ABI EP165
Kyle Wilson on ABI EP184
Grant Cardone on ABI EP188
Warriors Heart
Jim Rohn
Zig Ziglar
Chris Widener
Ron White
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
With more buyers than product on the market, finding good real estate deals can be difficult—especially for newbies. But it’s not impossible. So, what can aspiring multifamily investors do to get a deal under contract?
Drew Whitson, Josh Sterling, Andrew Kuhn and Phil Capron are mentors for The Michael Blank Investor Incubator, Josh Thomas handles our mentoring program strategy calls, and Drew Kniffin and Garrett Lynch serve as President and Director of Acquisitions, respectively, at Nighthawk Equity, the investing arm of The Michael Blank organization. All seven are full-time multifamily investors themselves with a background in working with new real estate investors.
On this episode of Apartment Building Investing, I’m sharing the panel discussion we had last year at Deal Maker Live around what’s working now to get deals under contract. We discuss the greatest fears facing new multifamily investors and explain how we coach our mentoring students to get brokers to take them seriously. Listen in for insight on building your investor list to raise money for deals and learn how to leverage joint venturing to get into multifamily real estate.
Key Takeaways The biggest fears facing new multifamily investors
- Self-confidence (work on inner game first)
- Won’t be able to raise money
- Won’t be taken seriously
How to get brokers to take you seriously
- Analyze deals on broker sites
- Be specific re: your criteria
- Send feedback within 48 hours
- Travel to meet face-to-face
The hierarchy of quality in multifamily deals
- Direct off-market from seller (rare)
- Broker first look
- Broker’s website
- LoopNet
Our mentoring team’s advice on raising money
- Build investor list around existing contacts
- Have conversations BEFORE need capital
- Give talk on multifamily at Meetups
- Leverage partnering or joint venturing
Connect with Michael’s Mentoring Team The Michael Blank Investor Incubator
Deal Maker Live
Resources Syndicated Deal Analyzer
Nighthawk Equity
The Michael Blank Deal Desk
Anthony Metzger on ABI EP196
LoopNet
David Kamara on ABI EP182
Meetup
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Is fear stopping you from doing your first multifamily real estate deal? If you’re not the type of person to simply jump ship from the relative safety (and health insurance) that comes with a W-2 job, but you know you can’t spend the rest of your life on the hamster wheel, then NOW is the time to activate what Craig Schumacher, MAI, calls ‘calculated courage.’
Craig Schumacher, MAI is the Managing Member at IRV Capital LLC, a real estate investment firm that focuses on multifamily and student apartments. Craig spent 25 years working as a commercial appraiser and valuation specialist. Four years ago, he decided to stop helping other people make a fortune in real estate and build a portfolio of his own. Craig closed on his first syndication deal in January, bringing him to a total of 89-units (with another 28 under contract).
On this episode of Apartment Building Investing, Craig joins me to explain how he recently quit his job as an appraiser to pursue multifamily investing full time. He describes the AHA moment that inspired him to take action in 2016 and walks us through the key lessons learned from his difficult first deal. Listen in to understand what Craig would tell his younger self about getting started in real estate investing and learn what he is doing now to scale his multifamily portfolio!
Key Takeaways Craig’s transition from appraising real estate to investing
- Biggest hurdle = solving health insurance issue
- Took time to enact plan but never been happier
What inspired Craig to make a change
- Shocking self-assessment at age 45
- Not in position to put kids through college + retire
How Craig got started with real estate investing
- Bought 5 condos + 2 duplexes (university housing)
- Gain experience as landlord, bank relationships
Craig’s rocky transition to multifamily
- Sold university rental portfolio to buy 28-unit
- $20K out of pocket for foundation issues
- Challenges around self-managing property
Craig’s key lessons learned from his first deal
- Deeper level of due diligence re: leak disclaimer
- Include nearby complexes in evaluation
Craig’s highly successful second multifamily deal
- 29 units next to Illinois State University
- Convert to student housing ($17K to $25K/month)
- Cash-out refi to return 100% of investor cash
Why sellers and brokers took Craig seriously
- Some credibility from SFH portfolio
- Decades of experience as appraiser
What Craig would do differently in retrospect
- Push past fear to take big shot sooner
- Cultivate ‘calculated courage’
How Craig made time for multifamily
- Dedicate every free moment to investing
- 14-hour days for 4 years, supportive spouse
How Craig overcame his fears around raising capital
- Start with friends, family and friends of friends
- Gets easier every time as share enthusiasm
Craig’s plan for scaling his multifamily portfolio
- Expand network via podcasts, conferences
- Build platform by sharing content online
Craig’s advice for aspiring multifamily investors
- Partner with experienced investor
- Add action to make ideas real
Connect with Craig Schumacher, MAI IRV Capital
Craig on LinkedIn
Resources Rich Dad Poor Dad by Robert T. Kiyosaki
CoStar
Real Estate Guys Create Your Future Goal Setting Retreat
What’s the Best Investment: The Stock Market or Real Estate?
Join the Nighthawk Equity Investor Club
Michael’s Mentoring Program
Partner with Michael
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Think you need to be a Lone Wolf on your first multifamily deal? Brian Briscoe was looking at 6- and 8-unit multifamily deals until he realized he could go bigger, faster if he had help. And he was right. Brian joined the Michael Blank network, and 11 months later, he had joint ventured on a 55-unit deal and had another 33 under contract! His team is looking to add another 500 units to their portfolio in 2020.
Today, Brian is the Director of Operations at Four Oaks Capital, a multifamily investment firm specializing in the acquisition, repositioning and rebranding of apartment buildings via a private equity fund structure. Since joining forces in June of 2019, his team of four has acquired 88 units and has another 80 under contract. Brian also serves as the Western Hemisphere Affairs Officer for the United States Marine Corps.
On this episode of Apartment Building Investing, Brian joins me to explain how he found his current partners through our network and discuss how they did three deals in 15 short months! He shares how Four Oaks Capital found its first deal and what they did to overcome a major hurdle (with help from an experienced mentor) just nine days before closing. Listen in for insight into how Brian and his partners have defined their individual roles in the company and learn how YOU can leverage joint venturing to accelerate your multifamily success.
Key Takeaways What inspired Brian’s interest in multifamily
- Read Keller’s book when deployed in Middle East
- Started consuming multifamily podcasts + books
- Became part of Michael Blank network
The timeline around Brian’s first three deals
- 11 months to close on 55-unit
- Closed on 33-unit last week
- 80-unit under contract now
How Brian built credibility with brokers
- Trip to South Carolina to meet face-to-face
- Persistent follow-up (action + communication)
Four Oaks Capital’s first 55-unit deal in Spartanburg, SC
- Two properties in good condition but dated
- Downtown units well below market rent
The snag Brian’s team faced in closing their first deal
- Rates on loans went from 3.9% to 5.1% (lost $600K in proceeds)
- Bump equity from 75% to 90% to compensate investors
The role mentors played in Brian’s first deal
- Guidance prior to putting in offer
- Offered idea to move needle on investor returns
Four Oak’s Capital’s second deal
- Result of follow-up with broker met on trip to SC
- 33-unit diamond in the rough at unbeatable price
- Plan to double value via $400K in renovations
Brian’s insight around The Law of the First Deal
- Brokers call with off-market deals
- Three deals in 15 months
How Brian’s partners defined their individual roles
- Acquisitions, asset management and raise money
- Fluid based on current needs
Four Oaks Capital’s plans to scale
- Constrained by how much money can raise
- Build platform (YouTube, social and podcast)
- Attend and start own Meetups
What facilitated Brian’s mindset shift
- Conversations with investors in network
- Finite amount of time to replace income
Brian’s advice for aspiring multifamily investors
- Learn game + get really good at it
- Take action and don’t stop
- Find people to support you
Connect with Brian Briscoe Four Oaks Capital
Email brianbriscoe@fouroakscapital.com
Resources Deal Maker Mastermind
Rich Dad Poor Dad by Robert T. Kiyosaki
The Millionaire Real Estate Investor by Gary Keller, Dave Jenks and Jay Papasan
Joe Fairless Podcast
Rod Khleif Podcast
Deal Maker Live
Michael’s Mentoring Program
Michael’s Platform Building Webinar
Join the Nighthawk Equity Investor Club
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
So, you don’t have real estate investing experience. And you don’t have any money of your own to invest. What if I told you that in two short years, you could be closing on your first deal of 200-plus units? That you could be fielding calls from brokers at Marcus & Millichap? That you could be building your own multifamily brand?
Anthony Metzger spent 10 years in the wine industry, working as a sommelier and winemaker in the US and Europe before setting his sights on multifamily real estate. After his brother introduced him to The Ultimate Guide to Apartment Building Investing at the end of 2017, Anthony got busy underwriting deals and reaching out to brokers. Two short years later (in a joint venture with Nighthawk Equity), Anthony has closed on his first deal, a 218-unit multifamily property in Little Rock, Arkansas.
On this episode of Apartment Building Investing, Anthony joins me to share what inspired his interest in multifamily and walk us through the experience of doing his first deal. He explains how learning the language of real estate gave him credibility with brokers and how consistent practice analyzing deals and talking to brokers built his confidence. Listen in to understand how the Nighthawk Equity team supported Anthony in the buyer’s interview and learn how to align yourself with a lead sponsor to do YOUR first multifamily deal.
Key Takeaways What inspired Anthony’s interest in multifamily
- Listening to Grant Cardone and Robert Kiyosaki
- Always been entrepreneur, hungry for project
Anthony’s initial real estate goal
- Partner with Nighthawk Equity to do first deal
- Didn’t want to raise money until experienced
How things changed for Anthony once his first deal closed
- Taking calls from Marcus & Millichap
- Brokers approach with off-market deals
How Anthony got brokers to take him seriously
- Learned language of investing from Ultimate Guide
- Genuine in building relationships with brokers
Anthony’s advice on demonstrating confidence with brokers
- Prepare with script based on underwriting
- Practice on ‘throw away market’
Anthony’s interaction with the broker on his first deal
- Several calls to discuss deal + ask questions
- Spitball ballpark number, asked to draft LOI
The ideal time to bring on a joint venture partner
- After verbal agreement but before signed LOI
- Support in buyer’s interview, include JV terms
What to expect from a buyer’s interview
- Seller talks to everyone who made offers
- Choose person most likely to close deal
Anthony’s approach to aligning with a lead sponsor
- Build relationship at events, bring deals
- Respect time by adding value (inside track)
What’s next for Anthony
- Do second deal
- Build own multifamily brand
Anthony’s advice for aspiring multifamily investors
- Learn to underwrite + practice making offers
- Network to build relationship with sponsor
Connect with Anthony Metzger Email anthony.metzger@yahoo.com
Resources Michael’s Free First Deal Training
Anthony’s Wine Documentary: The Pink Grape
Grant Cardone
Robert Kiyosaki
Michael’s Ultimate Guide to Apartment Building Investing
Michael’s Syndicated Deal Analyzer
Michael’s Deal Desk
Nighthawk Equity
Michael’s Deal Maker Mastermind
Deal Maker Live
Michael’s Mentoring Program
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Most of us dream of retirement because we’ll FINALLY have the time freedom to do things that interest us and spend time with the people we love. But what if you didn’t have to wait until you turned 65 to live that dream? What if you could retire early? Better yet, what if you could retire in the next few years? Passive investing in multifamily syndications helped Travis Watts do just that, and you could be next!
Travis is an experienced passive investor and Director of Investor Relations at Ashcroft Capital, a national multifamily investment firm with more than $820M in assets under management. Prior to pursuing real estate full-time, Travis worked a grueling job in the oil industry, spending 14-hour days outside in extreme weather while saving money to invest in single-family rentals and apartment building syndications.
On this episode of Apartment Building Investing, Travis joins me to discuss the time freedom he enjoys now as a passive investor in multifamily real estate. He explains how he saved the money to invest via extreme budgeting and what made SFH investing unsustainable. Listen in for Travis’ insight around where to find a good syndication team and learn how YOU can follow in his footsteps and quit your W-2 with passive investing!
Key Takeaways Travis’ path to full-time passive investing
- Demanding job in oil industry
- Laid off in oil downturn but already financially independent
How Travis’ life is different now
- Unhappy as W-2 employee, everyday struggle
- Now pursues things interested in (personal growth)
How Travis saved money to invest
- Brought up with conservative parents, extreme budgeters
- Didn’t change lifestyle as income grew from $20K to six figures
How Travis invested his money before multifamily
- Pulled money from stock market after Rich Dad’s Prophecy
- House hacking strategy (first-time home buyer tax credit)
- Sought high-paying job to continue buying SFH
- Buy-and-hold, fix-and-flip as well as vacation rentals
What inspired Travis’ transition to multifamily
- SFH strategies had become job on top of W-2
- Single-family not scalable, sustainable or passive
The FIRE movement 4% rule
- Passive income goal x 25 = amount to invest
- EX: 30K x 25 = $750K investment
What kind of income you can generate as a passive investor
- 7% to 10% cashflow
- Equity upside upon sale or refinance
Travis’ insight on the tax benefits of multifamily
- Use bonus depreciation for tax-free distributions
- Capital gains upon sale (usually offset by gains)
The beauty of the infinite return model
- Refinance after 5 years to return most of capital
- Continue to earn returns, no money in deal
Travis’ top investing AHA moments
- Multifamily scalable, sustainable AND truly passive
- Reading Tax-Free Wealth by Tom Wheelwright
Travis’ advice for aspiring passive investors
- Start with WHY
- Create a budget (know where money going)
How to vet a syndication team
- Ensure strategy aligns with personal philosophy
- Track record, markets you believe in
Where to find a good syndication team
- Go to seminars and local meetups for networking
- Start with world-of-mouth referral, follow up with due diligence
Connect with Travis Watts Ashcroft Capital
Email travis@ashcroftcapital.com
Travis on LinkedIn
Travis on Facebook
Resources Spencer Hilligoss on ABI EP186
Jan Larson on ABI EP181
Ryan McKenna on ABI EP174
Rich Dad’s Prophecy: Why the Biggest Stock Market Crash in History Is Still Coming … And How You Can Prepare Yourself and Profit from It! by Robert T. Kiyosaki
The FIRE Movement
Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes by Tom Wheelwright
Work with Tom Wheelwright
Join the Nighthawk Equity Investor Club
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
It’s that time of year again. Time to set goals for the year ahead and start working toward your dream of financial freedom. But what’s the best way to set goals and commit to following through? How do you avoid overwhelm and keep going no matter what?
On this episode of Apartment Building Investing, I am sharing my top 6 tips for setting goals you CAN and WILL achieve in 2020. I explain why it’s crucial to find your WHY and state your goals clearly—over multiple time frames.
I go on to reveal my secret to avoiding overwhelm, describing the value of consistency in working toward financial freedom. Listen in for advice around leveraging practice to develop confidence and learn to commit to doing your first multifamily deal, no matter how long it takes!
Key Takeaways Tip #1—Develop your WHY
- Affords clarity, moment of decision
- Less about you = more powerful
Tip #2—State your goals clearly over multiple time frames
- Create yearly, 90-day, monthly, weekly and daily goals
- Short-term goals align with big targets (e.g.: analyze 20 deals)
Tip #3—Always do the next 3 things
- Best way to avoid overwhelm, keep moving forward
- Consistent with progress (i.e.: finish book, choose property manager)
Tip #4—Focus on the activity, NOT the outcome
- Analyze every deal and talk to everyone early on
- Knowledge + practice = CONFIDENCE
Tip #5—Be consistent
- Support network to keep on track (peers + expert)
- Recognize and celebrate milestones
Tip #6—Commit to the outcome, not a timeline
- Set deadlines for short-term goals under your control
- Keep going no matter how long it takes, no other option
Resources Tony Robbins
Grant Cardone on the Lewis Howes Podcast
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
Deal Maker Live
Syndicated Deal Analyzer
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results by Gary Keller
Michael’s Mentorship Program
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Should you self-manage your multifamily portfolio? Or is it better to outsource to a third-party? If you do choose to outsource, what should you look for in a property management team?
Tony LeBlanc is the author of The Doorpreneur: Property Management Beyond the Rent Roll, a book that redefines the potential of property management businesses. Tony grew up inside the industry, watching his mother manage the building where he was raised. Ten years ago, he started his own property management company, and today, it is one of the largest on Canada’s East Coast and supports seven subsidiary businesses from landscaping to commercial cleaning to a real estate brokerage.
On this episode of Apartment Building Investing, Tony joins me to explain how he developed The Doorpreneur Way and what it meant for his property management company in terms of productivity and profit. He offers insight around how to hire a third-party property manager, what the ideal investor-property manager relationship looks like, and why it can be difficult to manage to a pro forma. Listen in for Tony’s innovative ideas for driving additional revenue and learn when it makes sense to self-manage your portfolio and when to outsource the job.
Key Takeaways Tony’s extensive experience in property management
- Mom was resident manager, VP of management company
- Started own company 10 years ago (3 locations, 2K doors)
What inspired Tony to write The Doorpreneur Way
- Building out other companies created new level of respect
- Help others make business more productive + profitable
Tony’s advice on hiring a third-party property manager
- Investors need hands-on experience to develop empathy
- Learn enough to ‘manage the managers’
The ideal relationship between property managers and investors
- Get to know each other up front
- Engage minimum of once a month to review financials
Tony’s approach to working with sophisticated investors
- Weekly call to discuss vacancies, major maintenance issues
- Monthly financial call to review budget vs. actuals
What makes it difficult for property managers to stay on budget
- Lack systems + processes for managing to pro forma
- Pressure to please tenants, don’t look at expenses
- Failure to include staff in financial discussions
Tony’s Doorpreneur Model
- Determine where subbing out most work
- Market research in new area
- Cut teeth on own properties
- Open door to general public
Tony’s best practices for property managers
- Proactive communication with investors
- Proper accounting + due diligence
- Educate owners on new trends, tech
Innovative ways to increase revenue and reduce expenses
- Transition from coin machine to card-based laundry
- Offer internet service for units
- Smart apartment technology
Tony’s insight around personal development practices
- Develop self-awareness with meditation, journaling
- Self-reflection allows us to better serve others
Connect with Tony LeBlanc Doorpreneur
Doorpreneur on Facebook
Doorpreneur on Instagram
Resources The Doorpreneur: Property Management Beyond the Rent Roll by Tony LeBlanc
Save Water Co
The Leader Who Had No Title by Robin Sharma
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Sponsor
The Investor Incubator Mentorship Program
Are limiting beliefs stopping you from becoming a multifamily investor? When Sterling White got his start in real estate, he was crashing in a friend’s den. He had no money in the bank and zero credit. But Sterling DID have a willingness to learn, and he understood that the best way to approach a potential mentor was to provide value.
Today, Sterling is a seasoned real estate investor and philanthropist based in Indianapolis. He got his start in 2009, building a portfolio of 150 SFH before transitioning to multifamily in 2017. To date, Sterling owns a total of 587 single- and multifamily units, and he is a frequent contributor to BiggerPockets. He also serves as the host of The Real Estate Experience podcast and author of From Zero to 400 Units: How I Found Another Path & Discovered Freedom Through Real Estate.
On this episode of Apartment Building Investing, Sterling joins me to explain how he got his start in real estate, working for a mentor (for free!) to find SFH buy-and-hold deals. He discusses his transition to multifamily, sharing his bold approach to finding off-market deals and the resources he uses to get in touch with property owners. Listen in for Sterling’s insight on providing value to attract investors and learn how to overcome the limiting beliefs that are keeping you from achieving financial freedom with multifamily investing!
Key Takeaways Sterling’s journey to real estate investing
- Grew up in Section 8 housing with single mom
- Natural entrepreneur, figure things out on own
- Work for free with mentor to build SFH portfolio
- Shift to multifamily in 2017 (587 units total)
How Sterling developed an interest in real estate
- Work construction for college roommate’s dad
- Liked seeing transformation of distressed asset
- Learned that most successful owned portfolio
How Sterling provided value to his mentor early on
- Hustle to find SFH deals
- Assist with digital marketing
Sterling’s first SFH investing deal
- $25K property + $25K in renovations (financed by mentor)
- Responsible for everything else associated with transaction
What inspired Sterling’s transition to multifamily
- Economies of scale (multiple doors at one location)
- Ability to control own destiny, influence value
Sterling’s first multifamily investing deal
- 46-unit seller financing deal ($200K down on $900K)
- Brought on SFH investors to raise $ for renovations
How Sterling hustles to find new deals
- Approach owner directly, pitch on cold call
- Strategic follow up (e.g.: birthday card)
Sterling’s resources for finding owner contact info
- CoStar, Reonomy and ListSource
- Skip trace or directory of business filing
Sterling’s advice on marketing to attract investors
- Connect through BiggerPockets
- Appearances on podcasts
The evolution of how Sterling raises money for deals
- Friends and family through fund for SFH
- Preferred return to start with multifamily
- Now straight equity (85% to LPs, 15% to GPs)
The limiting beliefs that hold aspiring investors back
- Need large amount of own capital
- Fear of failure OR success
Sterling’s insight on the value of time
- Pay someone to do low-value activities
- Willing to spend extra to save time
Connect with Sterling White Sterling on BiggerPockets
Resources Earl Nightingale
Rich Dad Poor Dad by Robert T. Kiyosaki
LoopNet
CoStar
Reonomy
ListSource
BeenVerified
TruePeopleSearch
LexisNexis
Fiverr
Upwork
BiggerPockets
The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Timothy Ferriss
Grant Cardone on Lewis Howes’ Podcast
Michael’s Free Webinar: How to Do Your First Apartment Deal (Without Experience or Using Your Own Money)
Michael’s Mentorship Program
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
If you want to raise money, I mean REALLY raise money, you need a thought leadership platform. Yes, at the beginning of your career, you will onboard passive investors one at a time. But once you’ve exhausted your network and you’re ready to scale, you’ll need to leverage online marketing techniques to expand your investor base and raise millions for multifamily deals—on a very short timeline.
Josh Cantwell is the CEO of Strategic Real Estate Coach, a program dedicated to giving real estate investors and agents the most advanced training in the business. Josh is the top real estate investor in his community, buying and selling more than 600 properties since 2003, and he regularly partners with other investors to close deals all over the US. He is also the author of The Flip System: Your Real Estate Investing Playbook to Create Financial Freedom and Peace of Mind and the CEO of Freeland Ventures Private Equity and Direct Real Estate Lending, helping investors get funding both residential and multifamily deals.
On this episode of Apartment Building Investing, Josh joins me to explain how his experience with pancreatic cancer changed his personal and professional life, sharing the strategies he uses to be more purposeful with his time and put his family first. He discusses why he chose capital raising for multifamily over syndicating deals and describes his process for raising millions of dollars—in just a few hours. Listen in for Josh’s advice to aspiring capital raisers and learn his four steps to building an online platform that attracts multifamily investors.
Key Takeaways How Josh’s bout with pancreatic cancer changed his life
- Focus on being family man first
- Invest in things that pay in perpetuity
The strategies Josh uses to be purposeful about his time
- Mornings for strategic thinking
- Activities that give energy in afternoon (e.g.: investor calls)
Josh’s multiple business ventures
- Private + hard money lender for residential real estate
- Raise capital for multifamily via crowdfunding platform
- Joint venture to raise capital for multifamily
The limiting beliefs that kept Josh away from multifamily
- Not educated, smart enough
- Surgery forced out of comfort zone
Why Josh chose raising capital over syndicating deals
- Background in raising money (funding = freedom)
- Joint venture with experienced investors
How Josh raises millions of dollars for multifamily in hours
- Share potential deals in discovery interviews
- Create scarcity in webinar (e.g.: 400 invites, 12 spots)
Josh’s tips for creating an online platform to raise capital
- Start with an irresistible offer
- Identify your investor avatar
- Be strategic about networking
- Reach out with regular content
Josh’s advice for aspiring capital raisers
- Put yourself in second position
- Raising money not a ‘forever business’
- Stay in front of potential investors
- Educate without asking for money
- People will test with small investments
Connect with Josh Cantwell Strategic Real Estate Coach
The Flip System by Josh Cantwell
Josh on Facebook
Resources Michael’s Free Masterclass
Dr. Oz’s ‘The Power of a Nap’
Jack Petrick on ABI EP123
National Real Estate Investors Association
Michael’s Platform Page
Michael’s Free eBook
Nighthawk Equity
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
When Phil Capron went through special ops training for the US military, he noticed that the recruits who made it to the end weren’t necessarily the strongest or the fastest or the smartest. So, what differentiated the 20 who succeeded from the thousands vying for the job? They simply refused to quit. And Phil believes that the same principle applies to making it in multifamily investing.
Phil is a former Special Warfare Combatant Craft Crewman in the US Navy and current full-time multifamily real estate investor. To date, he owns a 245-unit portfolio worth $15M in Coastal Virginia and shares his understanding of the space as a Senior Mentor with the Michael Blank Organization. Phil specializes in revitalizing distressed and underperforming assets to ensure profitability for his team and change neighborhoods for the better. He is also the author of the new release Your VA Loan: And How it Can Make You a Millionaire.
On this episode of Apartment Building Investing, Phil joins me to explain how taking advantage of a VA loan sparked his initial interest in real estate. He walks us through his transition from working in a brokerage and flipping houses to full-time multifamily investing, sharing his advice around when to quit a W-2 job for real estate. Listen in for Phil’s insight into what differentiates his successful mentoring students from those who don’t progress and learn how the grit he developed in military special ops training informs his investing career.
Key Takeaways How Phil got started in real estate
- Enlisted in US Navy at age 24
- Bought 4BR SFH with VA loan
- Friends rented rooms (live for free)
- Real estate license, flip houses
What inspired Phil’s transition to multifamily
- Trying to sell 13-unit for commission
- Buyer turned down owner financing
- Phil bought himself, rent checks roll in
- Proved economy of scale concept
When Phil started investing full-time
- 18 months into multifamily
- Established 200-unit portfolio
Phil’s advice on when to quit your job
- Make decision and write down plan
- Save up 9 months of living expenses
Phil’s take on why people don’t take action
- Perceive quality of life as good enough
- Fear of success leads to self-sabotage
How Phil spends his days as a full-time investor
- Look for deals + manage portfolio
- Work with students on their deals
- Surf, skydive and travel
Phil’s insight on why your story matters
- Experience with bank (decision based on team)
- Get gritty about not giving up
Connect with Phil Capron Phil’s Website
Phil’s Podcast
Phil on Facebook
Resources Your VA Loan: And How It Can Make You a Millionaire by Phil Capron
VA Home Loans
BiggerPockets
FHA Loans
Tyler Sheff
Drew Whitson
Financial Freedom Summit
Michael’s Mentorship Program
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Real estate investing conferences are one of the few places where there is no line to the women’s restroom. And while that may be a relief to the female entrepreneurs in attendance, it can also be very discouraging. Why are there so few women playing in the multifamily space? And what can we do to encourage more women to become entrepreneurs and investors?
Olenka Cullinan is the Business Coach behind #iStartFirst, a platform dedicated to inspiring women to achieve their full potential. Through her online bootcamps, #iStartFirst Bossbabes Summit and national speaking engagements, Olenka empowers women to up-level their mindset, overcome their fears and build successful careers.
On this episode, Olenka joins me to explain why there are so few female entrepreneurs and what she is doing about it through #iStartFirst. She speaks to the limiting beliefs many women share and describes how the female mind works differently when it comes to making deals. Listen in for Olenka’s insight around the power of mentorship to help you start or scale your business and learn why you don’t necessarily have to be in the limelight to be a leader!
Key Takeaways Olenka’s entrepreneurial journey
- Move to US from Russia at 21 with $450
- Struck by lack of women in venture mentorship program
Olenka’s advice to her younger self
- Get mentors early
- Bring in people to share vision
The story behind #iStartFirst
- Inspired to fix lack of women entrepreneurs
- Listen to people serve for next iteration
Why there are so few female entrepreneurs
- Women shy to make moves, hold back ideas
- Socialized to supportive role as wife + mother
Olenka’s insight around building your brand
- It’s about messenger, not message
- Selfish NOT to share
The limiting beliefs many women share
- Imposter syndrome
- Feel like not enough
How women differ from men in making deals
- Long-term commitment once decision made
- ‘Everybody wins’ community mentality
The idea behind #iStartFirst
- Can’t view men as financial plan
- Must start saving ourselves
Olenka’s take on women in supporting roles
- Don’t have to be in limelight to be leader
- Affirmations lead to breakthrough
Olenka’s idea client
- Women who want to start/scale business
- Up-level mindset to grow in career
What women learn at Olenka’s bootcamp
- ‘I can do anything’
- Balance personal + professional life
Olenka’s concept of an Alpha Woman
- Try to be like men
- Get into drive zone, lose feminine side
Olenka’s advice to aspiring female entrepreneurs
- Already have everything needed inside you
- 90 seconds of fear will elevate to next level
Connect with Olenka Cullinan Olenka’s Website
iStartFirst
Resources Stop Preparing Start Doing eBook
Rising Tycoons
Olenka’s TEDx Talk
Tony Robbins
John Maxwell
Robert Kiyosaki
Passionistas: Tips, Tales and Tweetables from Women Pursuing Their Dreams by Olenka Cullinan et al.
Purpose, Passion & Profit by Olenka Cullinan et al.
Michael’s Mentorship Program
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Do you have your money right? Or are you handing it over to Wall Street and hoping for the best? What if I told you that the secret to true wealth is to STOP saving your money and START using it to invest in real assets—like multifamily real estate!
Grant Cardone is the CEO of Cardone Capital, a multifamily real estate investment firm with more than $1.36B in assets under management. He is also an international speaker and bestselling author, well-known for creating the 10X Movement and 10X Growth Conference. Grant was named the #1 marketer to watch by Forbes, and he is a widely respected entrepreneur who owns and operates seven privately held companies.
On this episode, Grant joins me to share what he’s investing in now, discussing what kind of returns he expects on multifamily deals. He walks us through a day in the life of Grant Cardone, sharing his secret to work-life balance, his definition of true wealth, and his thoughts on the importance of spirituality. Listen in to understand what is driving Grant to build a legacy and learn how his Reg A fund serves non-accredited investors.
Key Takeaways What Grant’s investing in right now
- $473M portfolio in 5 properties, 2K+ units
- Well-located and institutional quality
- Deals with competition (list of buyers)
Why Grant avoids value-add multifamily deals
- Lack of salary growth in America
- ‘Value-add story will hit limits’
The returns Grant expects from multifamily investments
- 5 to 6% cashflow, 15% IRR
- $40M down becomes $135M in 30 years
Why Grant started a Reg A fund with $5K minimums
- Moral issue to support ‘little guy’
- Not true that < sophisticated, more trouble
A day in the life of Grant Cardone
- Time for gym, self-improvement
- Shut down work at 6pm for dinner
Grant’s secret to work-life balance
- Don’t invest in anything with potential to lose
- No worry more important than high returns
How Grant’s approach to money has changed
- Used to scrounge, act like miser
- Now use money to make life easy
What drives Grant to keep growing
- Legacy for family, change community
- Produce something of value = live forever
Grant’s insight on taking it to the next level
- From $90M deal to $900M
- Good friends will challenge
Grant’s definition of wealth
- Money, time, love, health and purpose
- Continuous learning = expansive
The role of spirituality in Grant’s life
- Spirit comes before and after body
- Best ideas come from beyond mind
Grant’s advice for ABI listeners
- Get your money right (use, don’t save)
- Invest in real estate with someone you trust
Connect with Grant Cardone Grant’s Website
Cardone Capital
Resources Cardone University
10X Growth Conference
Grant on Lewis Howes’ Podcast in 2017
The 10X Rule: The Only Difference Between Success and Failure by Grant Cardone
The Millionaire Booklet: How to Get Super Rich by Grant Cardone
Robert Kiyosaki on Apartment Building Investing EP160
The Real Estate Guys
What’s the Best Investment: The Stock Market or Real Estate?
Nighthawk Equity
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Raising capital for multifamily real estate deals strikes fear in the heart of many an aspiring syndicator. But what if you didn’t have to chase leads? What if you could ATTRACT high-net-worth individuals and bring in investments of $100K (or more!) with a single phone call? It IS possible, provided you commit to consistent content creation and position yourself as a thought leader in the space.
Hunter Thompson is the Managing Principal at Asym Capital, a real estate investment firm that helps clients build a diverse portfolio around low-risk cashflow production. With nearly 10 years of experience in fund management, Hunter is a prolific writer on the finance of commercial real estate and the host of Cash Flow Connections. His new book, Raising Capital for Real Estate, teaches aspiring operators the art of establishing credibility, attracting investors and funding deals at scale.
On this episode of Apartment Building Investing, Hunter joins me to share his experience raising capital for real estate deals and building a thought leadership platform to attract passive investors. He explains how to get started with content creation, what to do if you’re not a great writer, and why content is crucial if you want to scale. Listen in for Hunter’s insight on picking a niche that fits with who you are—and learn his process for building an infrastructure that attracts and nurtures high-net-worth investors.
Key Takeaways Hunter’s journey to multifamily investing
- Stock market volatility motivated to try real estate
- Raise capital for opportunities across asset classes
What Hunter looks for in a joint venture partner
- Best-in-class operators with $100M under management
- Systems in place but haven’t built out investor relations
Hunter’s experience of writing Raising Capital for Real Estate
- Wrote in < 3 months, editing process takes much longer
- Outlines process of creating platform to attract investors
Hunter’s advice on how to get started with content creation
- Brainstorm list of 100 potential articles and rate top 10
- Identify and mimic industry leaders for topic ideas
What to do if you’re not necessarily a great writer
- Practice regularly, build up to 1K words per hour
- Ask friend to interview you and transcribe with Rev
How to develop a commitment to consistent content creation
- Start small and schedule 1 post every 2 weeks
- Consider blocking off time to batch content
Hunter’s take on why content is important
- Scalable way to attract + nurture new leads
- Build credibility, close with single phone call
How to define the kind of investor you want to attract
- Biproduct of being yourself
- Don’t try to appeal to everyone
Hunter’s process of building a thought leadership platform
- Started with writing articles in 2013
- Add podcast in 2016, book this year
Hunter’s advice for starting your own real estate platform
- Pick a niche (okay to pivot later)
- Use free content to get leads into infrastructure
Connect with Hunter Thompson Raising Capital for Real Estate
Cash Flow Connections Real Estate Podcast
Intelligent Investors Real Estate Conference
Email info@raisingcapitalforrealestate.com
Resources Hunter on ABI EP087
Raising Money Summit
Pitch Anything: An Innovative Method for Presenting, Persuading, and Winning the Deal by Oren Klaff
Best Ever Apartment Syndication Book: A Four-Part System for Raising Money and Buying Apartments by Joe Fairless and Theo Hicks
Rev
Corey Peterson
Jeremy Roll on Cash Flow Connections EP001
Investor Mindset Podcast
What’s the Best Investment: The Stock Market or Real Estate?
Nighthawk Equity
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
W-2 jobs give us a sense of security. But what happens if you lose your job or can’t work due to illness or injury? Spencer Hilligoss wanted to play financial defense and build enough passive income to keep the lights on for his family should something unexpected happen. And though real estate gets a bad rap for being a risky investment, Spencer discovered that multifamily is actually very predictable. In fact, it’s the best kind of boring!
Spencer has 13 years of experience in tech startups, building high-performing teams across five companies—three of which valued at more than $1B. He currently serves as the Senior Director of Professional Development for LendingHome, the largest residential flip lender in the country. Spencer is also the Cofounder and Principal at Madison Investing, a real estate education platform dedicated to helping busy professionals build passive income, and a contributing writer and member of Forbes Real Estate Council.
On this episode, Spencer joins me to explain how the ‘dark decade’ he endured as a young man inspired him to pursue passive income through real estate. He shares his approach to financial planning, describing how he and his wife set goals and analyze deals together. Listen in for Spencer’s insight around the benefits of passive investing in multifamily over SFH strategies and learn exactly what he looks for in a sponsor, a market and a deal.
Key Takeaways What’s keeping Spencer at his W-2 job
- Take care of team at work
- Don’t want to pull ripcord too soon
How Spencer got into real estate
- Dad was top-performing real estate broker
- Brother’s death + parent’s divorce led to bankruptcy
- Pursue real estate to play defense financially
The Silicon Valley wealth playbook
- Join early stage tech startup for equity
- Work 16-hour days
- Pray for liquidity event
- Save for retirement (can’t access)
Spencer’s path to multifamily investing
- Tech startup lends to real estate investors
- Get educated and compare strategies
- Built SFH portfolio of 7 (not passive)
How passive investing in multifamily differs from SFH
- Analyze deal and build relationships up front
- Double money in 5 years, don’t lift finger to manage
Spencer’s approach to financial planning
- Based on being great parent, giving back
- Work toward $8K/month passive income
What Spencer looks for in a sponsor
- Track record (trustworthiness, grit, etc.)
- Approach
- Team
- Communication
Spencer’s advice for new syndicators
- Leverage partnerships and coaching
- Borrow credibility from experienced investors
What Spencer looks for in a market
- Strong job growth
- Employers = counterweight to correction
What Spencer looks for in a deal
- Specific plan to add value
- Firsthand photos/videos beyond pro forma
What’s next for Spencer
- More active to accelerate timeline
- Scale impact through educational platform
Connect with Spencer Hilligoss Madison Investing
Email spencer@madisoninvesting.co
Spencer on LinkedIn
Resources Rich Dad Poor Dad: What the Rich Teach Their Kids About Money—That the Poor and Middle Class Do Not by Robert T. Kiyosaki
City-Data
Department of Numbers
What’s the Best Investment: The Stock Market or Real Estate?
Nighthawk Equity
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Technology has succeeded in disrupting several industries. Think about what Uber has done to the taxi business. Or how Airbnb has changed hotels. These innovations work because they create a frictionless experience for consumers. So, how might #proptech disrupt multifamily? And how can apartment investors leverage technology to better the resident experience and compete in the market of the future?
Patrick Antrim is the Founder and CEO of Multifamily Leadership, a thought leadership platform that researches the best in innovation and leadership in the multifamily space. He has 18 years of experience managing the portfolios of some of America’s most influential real estate entrepreneurs and business titans, including Forbes billionaire George Argyros. Patrick is also the host of the Multifamily Leadership Podcast and the creator of the Multifamily Leadership Summit.
On this episode, Patrick joins me to share his take on shifting renter expectations and explain why investors of the future need to understand technology. He describes how we can use tech to improve the tenant experience and why class B and C operators shouldn’t dismiss tech as a luxury amenity. Listen in for Patrick’s insight around current trends in multifamily and learn how his organization is exploring the intersection among technology, leadership and resident journey.
Key Takeaways How Patrick got into the asset management space
- Retire from playing for New York Yankees
- Apprentice to former Mariners owner (5K multifamily units)
- Grew relationships with HNWI to manage $1.2B portfolio
Patrick’s take on shifting renter expectations
- Look at multifamily as consumer category
- Unique opportunity for operators to add value
Why investors of the future need to understand technology
- Lift on revenue (e.g.: $55/month for smart home)
- Compete with luxury developments
- Future valuations based on tech in buildings
- Save up to $100K/year on expenses
How we can use tech to improve the tenant experience
- AI voice assistant to answer calls
- Upgrade leasing journey (i.e.: digital applications)
- Smart appliances, IoT devices in units
Patrick’s insight on tech in class B and C properties
- Consumers quick to adopt tech (e.g.: Wi-Fi)
- Impact operational inefficiencies like keys, work orders
- Eliminate need for leasing agent at small properties
Why property management companies are slow to adopt tech
- Investors already winning, don’t have to think ahead
Patrick’s thoughts on current trends in multifamily
- Talent as last competitive advantage
- Resident experience drives returns
- Discussion around affordable housing
Patrick’s mission with Multifamily Leadership
- Collision of tech, leadership and resident journey
- Design co. to attract talent, residents + investors
Patrick’s advice for aspiring multifamily operators
- Focus on creating value long term
- Make sure incentives aligned
Connect with Patrick Antrim Multifamily Leadership
Multifamily Leadership Podcast
Patrick on LinkedIn
Resources Michael’s Mentorship Program
George Argyros
John Saunders
LeaseHawk
SmartRent
PointCentral
Vivint Smart Home
Urbandoor
STRATIS IoT
BIM Technology
Shadow Summit
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
So, you’re getting into the business of multifamily real estate. Like it or not, you’re also getting into the business of marketing and promotions. But how do you build a platform online and attract the capital you need to grow?
Kyle Wilson is a marketing icon in the personal development space, promoting the likes of Og Mandino, Les Brown, and Robin Sharma, just to name a few. For 18 years, he served as Jim Rohn’s business partner, taking Jim from 20 speaking events per year at $4K each to 110 events at $25K—and creating Jim Rohn International along the way. Today, Kyle does high-end coaching and consulting and hosts the Kyle Wilson Inner Circle Mastermind. He has helped more than 200 thought leaders become published authors with multiple bestselling books.
On this episode, Kyle joins me to explain how he got into the personal development space and reflect on the top lessons he learned from working with legends like Jim Rohn, Zig Ziglar and Brian Tracy. He shares his best marketing principles for building a brand, discussing how tactics have changed over time but principles haven’t. Kyle walks us through an exercise for finding your secret sauce and describes the 4 things that he looks for on a website. Listen in for Kyle’s insight around building a platform and learn how to promote yourself as a multifamily real estate investor!
Key Takeaways How Kyle got into the personal development space
- Moved to Dallas at age 26, attended seminar
- Offered job making cold calls + selling tickets
- Started own venture and partnered with Jim Rohn
The top takeaways Kyle learned from Jim Rohn
- Key to better future is YOU
- Success is predictable
- Be a student, not a follower
- How can I bring value?
Kyle’s marketing principles for building a brand
- Connect the dots
- Tactics change but principles don’t
- Great product
- Customer service
- Consistent
- Relational
- Be strategic (one thing knocks down ALL dominoes)
- Leverage ‘the wheel’
How marketing tactics have changed over time
- From commodity products to free content
- Start with social media + build email list
What Kyle wants to see on a website
- Mystique
- Taglines
- Social proof
- Creative opt in
Kyle’s favorite lessons from his newsletter
- It takes time to build something great
- Pay the price now
- Never do good deal with bad guy
- Prime time is big time
Why Kyle came out of retirement
- Unhappy, open to personal development
- Connect talented people with right audience
How to find your own secret sauce
- What am I good at?
- What do I enjoy?
- What are my successes?
- How do others see me?
- What am I FOR?
- What am I AGAINST?
The challenge around putting yourself out there
- Tendency to diminish own story
- How much influence do you want to have?
Connect with Kyle Wilson Kyle’s Website
Inner Circle Mastermind
Kyle’s Book Program
Resources Michael’s Free Webinar: How to Do Your First Apartment Deal (Without Experience or Using Your Own Money)
Uganda Counseling and Support Services
Jim Rohn
Zig Ziglar
Brian Tracy
Mark Victor Hansen
Darren Hardy
Og Mandino
John Maxwell
SUCCESS Store
Chris Widener
Ron White
Earl Nightingale
Tony Robbins
Les Brown
Passionistas: Tips, Tales and Tweetables from Women Pursuing Their Dreams by Erika De La Cruz et al.
The Real Estate Guys
Seth Mosley
Phil Collen
John Assaraf
Resilience: Turning Your Setback into a Comeback by Kyle Wilson, Lisa Haisha, Keith Elias, Ron White, Nick Bradley, Chris Widener, Steve Fitzhugh, Nathan Ogden & Michael Blank
Chicken Soup for the Entrepreneur’s Soul: Advice & Inspiration for Fulfilling Dreams by Jack Canfield, Mark Victor Hansen & Dahlynn McKowen
Newy Scruggs
Hal Elrod
Deal Maker Live
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Most of us would really like to live a life of purpose. Problem is, working a traditional W-2 job can take all the good out of you. We come home exhausted and have little bandwidth left for our families, so the idea of serving others seems totally out of reach. But what kind of impact could you make if your living expenses were covered? What if you had the time freedom to pursue a meaningful life? What if multifamily real estate investing could get you there in three years?
Drew Whitson is a full-time real estate investor with a portfolio of 1,000-plus units in five states. He also happens to run The Michael Blank Investor Incubator, serving as a mentor and coach to help aspiring multifamily investors do their first apartment building deal. Drew spent 16 years working in corporate finance before leaving his W-2 job at a boutique investment banking firm in early 2018 to focus exclusively on his real estate career.
On this episode, Drew joins me to explain how achieving financial freedom has given him the opportunity to pursue a meaningful life. He describes how getting laid off twice in a single year inspired him to control his own destiny by way of multifamily syndication. Drew walks us through his first few apartment building deals and discusses why buying a 32-unit property was so much easier than a fourplex! Listen in for Drew’s insight around raising money BEFORE you have a deal under contract, getting brokers to take you seriously as a newbie, and joint venturing with partners who share your vision for the future.
Key Takeaways How financial freedom changed Drew’s life
- Opportunity to pursue meaningful things
- Impact world through service to others
The capacity to live a meaningful life AND work full-time
- Must be extraordinarily intentional
- Options open up once expenses covered
What inspired Drew to build an identity beyond his W-2
- Laid off twice in single year
- Sense of determination to control own destiny
Drew’s real estate experience prior to quitting his job
- Bought multiple SFH when market down
- Built portfolio of 400 multifamily units
What drew Drew to multifamily investing
- Only asset can buy with other people’s money
- Appreciation, resilience, tax benefits and scale
Drew’s first multifamily real estate deals
- Bought fourplex with partner through Wells Fargo
- 32-unit with small commercial lender much easier
Drew’s experience of raising money for the first time
- Terrified of losing friends/family money
- Learned that money follows good deals
How to raise money WITHOUT a deal under contract
- Put together sample deal package
- Soft commitments from potential investors
How to get brokers and investors to take you seriously
- Build great team to help execute
- Be specific about what you want
- Use right language
- No substitute for action
How long it takes Drew’s students to get competent
- 30 days to get comfortable with language
- 90 days for market analysis, team and tools
The power of joint venturing in multifamily
- Engaged community keeps you motivated
- Play to strengths + scale portfolio together
Drew’s advice for aspiring multifamily syndicators
- Find likeminded people at Meetup groups
- Get educated through books and podcasts
- Commit to vision and take ACTION
Connect with Drew Whitson The Michael Blank Investor Incubator
Resources Dave Ramsey’s Financial Peace University
Drew Kniffin
Nighthawk Equity
David Kamara on ABI EP182
Meetup.com
Deal Maker Live
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Real estate investors come in many different shapes and sizes. Some young, some older. Some with financial resources, others without. But the one thing they ALL have in common is hustle. They balance learning with DOING, taking action to achieve their dreams of financial freedom through multifamily.
David Kamara was working a demanding job in management consulting, traveling as much as 48 weeks a year. In an effort to spend more time with his family, David enlisted the help of a mentor to fast-track his real estate career and closed on his first 40-unit multifamily deal in October of 2018. Within a year, David had replaced his income, and today, he has a portfolio of 247 units. He runs his own management consulting business as well as Cape Sierra Capital, an apartment building investing firm that focuses on undervalued multifamily properties in the Midwest and Southeast US.
On this episode, David joins me to explain how his daughters inspired him to make time for multifamily and what he did to get started. He walks us through his first 40-unit deal, discussing how having a mentor helped get brokers to take him seriously. David also shares his experience with the Law of the First Deal, explaining how he had two more deals under contract within two months of closing! Listen in for David’s advice to aspiring multifamily investors and learn his action-oriented approach to achieving financial freedom—with or without financial resources of your own!
Key Takeaways David’s initial real estate goals
- Buy one house per year
- Scale up to build wealth
What made David’s plan change
- Demanding new job as management consultant
- Moved to Michigan with growing family (4 kids)
What inspired David’s shift to multifamily
- Work-life balance suffering
- Replace time spent training for marathons
What David did to get started
- Bought course, started analyzing deals
- Met mentor at Financial Freedom Summit
What David liked about his first 40-unit deal
- Nearby complex rents $100 more (wait list)
- Major employer in area
How David got brokers to take him seriously
- Introductions from mentor
- Use right language to avoid proof of funds
David’s experience with the Law of the First Deal
- Found 18-unit in Chicago within 2 months
- First broker proposed partnership on 37-unit
David’s first multifamily syndication deal
- Fully rented 94-unit in MI college town
- Investors from professional network
How David found time to do real estate with a full-time job
- Wake up early, stay up late
- DECIDE to make time for what’s important
David’s advice for aspiring multifamily investors
- Balance learning with DOING
- Go out and buy multifamily property
What David would have done without financial resources
- Create sample deal package
- Educate potential investors, address objections
Connect with David Kamara Cape Sierra Capital
Email david@capesierracapital.com
Call (773) 263-2657
Resources Syndicated Deal Analyzer
The Ultimate Guide to Buying Apartment Buildings with Private Money
LoopNet
Josh Sterling on ABI EP091
Josh Sterling Mentor Bio
Deal Maker Live
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
Michael’s Mentoring Program
Financial Freedom Summit
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
What kind of returns can a passive multifamily real estate investor expect? What if you could double your money in just five or six years? And pay little or nothing in the way of taxes?
Jan Larson spent 25 years in the high-stress world of semiconductor development, most recently working for Amazon. He had always been interested in real estate investing but did not want to deal with 3AM phone calls about clogged toilets. Five years ago, a colleague introduced him to a passive investing opportunity, and Jan was hooked. Today, he has invested in 28 multifamily deals involving 34 properties, and in January, Jan had enough passive income to quit his job.
On this episode, Jan joins me to discuss how his life has changed since he quit his job through passive investing in multifamily. He explains how living through the stock market meltdowns in 2000 and 2008 inspired him to diversify with apartment buildings, describing what he loves most about multifamily and sharing the returns passive investors can expect. Listen in for Jan’s advice on how to get started with passive investing and learn how he evaluates deals based on the sponsor and the submarket!
Key Takeaways How Jan’s life has changed since he quit his job
- High-pressure work in tech industry
- Much less stress now
How Jan got started with passive investing
- Introduced to multifamily by colleague
- Steady deal flow snowball from there
Why Jan chose real estate over the stock market
- Lived through meltdown of 2000 + 2008
- Diversify to reduce exposure to market
What Jan loves about passive investing in multifamily
- Not binary
- ‘Set it and forget it’
What allowed Jan to invest in 28 deals in 5 years
- Liquidated stock investments and Roth IRA
- Rolled proceeds of sales into other deals
How refinancing a property benefits passive investors
- % of investment returned (redeploy in new deal)
- Cash-on-cash return of remaining = 25-30%/year
The returns a passive investor can reasonably expect
- 8-10% cash-on-cash returns
- Double money in 5 or 6 years
Jan’s insight around the tax benefits of multifamily
- Depreciate faster with cost segregation
- Haven’t paid any taxes on CoC returns
What Jan looks for in a multifamily deal
- Trustworthy sponsor with track record
- Submarket in particular + overall market
Jan’s advice for aspiring passive investors
- Find Meetups to meet sponsors
- Vet by talking to other investors
Jan’s top takeaway for potential passive investors
- Multifamily investing gives options
Connect with Jan Email jan.a.larson@gmail.com
Resources What’s the Best Investment: The Stock Market or Real Estate?
Nighthawk Equity
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
As multifamily investors, we’re all looking to build wealth and achieve financial freedom. The scary part is, we don’t have control over how much our money is worth. And as our government continues to print money with wild abandon and accumulate massive debt, the value of the US dollar declines. Yes, we’re smart to invest in physical assets like real estate to hedge against this kind of currency devaluation. But is there something else we could be putting our money in as an insurance policy of sorts? Something that increases in value as paper assets decline?
Dana Samuelson is the President of American Gold Exchange, a leading precious metals and rare coin company. A professional numismatist since 1980, Dana has been involved in a billion dollars’ worth of precious metals transactions. Brien Lundin serves as host of the New Orleans Investment Conference and Executive Editor of the Gold Newsletter, the oldest precious metals advisory in the world. With 40 years of experience, Brien is an expert in precious metals and mining share markets as well as the economic and geopolitical issues that impact them.
On this episode, Dana and Brien join me to explain why the average real estate investor should consider adding precious metals to their portfolio. They describe how gold serves as a counterbalance to paper assets and warn us about the accelerating devaluation of US currency. Dana and Brien also discuss the outlook for gold in the current economic climate, offering insight around the relationship between interest rates and the value of precious metals. Listen in to understand the process of buying gold and find out why it should be a part of your overall investment strategy!
Key Takeaways Dana’s extensive background and experience
- President of American Gold Exchange
- 40 years in precious metals
Brien’s extensive background and experience
- Executive editor of Gold Newsletter
- Host of New Orleans Investment Conference
Why real estate investors should care about gold
- Natural counterbalance to paper assets
- Gold goes up when stocks, real estate go down
- Global economy weakening in last 6 months
- Took off in 2008 during crash (liquid asset)
Brien’s insight around currency devaluation
- Central bankers print money with wild abandon
- US $22.5T in debt, interest rates at global all-time lows
- Forgiving debt = accelerates decline in value
- Will need to borrow to pay interest in next few years
The outlook for gold in the current economy
- ‘Gold loves cheaper money’
- Bond yields plummeted in last 6 months
- Fed forced to cut interest rates further
How interest rates impact the value of gold
- Gold has no interest, must pay carrying cost
- No burden to buy when interest rates low
The 3 ways to buy gold and other precious metals
- Paper trade via ETFs or GLD
- Invest in gold mining stock
- Physical gold dealer (sovereign minted)
When to invest in paper vs. physical gold
- Paper good when confident in uptrend
- Need physical as foundation (economic uncertainty)
The process of buying and selling physical gold
- Call or visit reputable dealer to discuss
- Pay current price + minting premium and dealer fee
- Gold shipped and insured through FedEx or USPS
- Store in safe, accessible place
- Sell to any reputable dealer
Brien’s top takeaway around investing in gold
- Precious metals are form of freedom
- Insulate you from mismanagement of currency
Dana’s top takeaway around investing in gold
- At least 5% to 10% of portfolio in gold or silver
- Serves as insurance policy for rest of money
Connect with Dana American Gold Exchange
Email info@amergold.com
Connect with Brien Gold Newsletter
New Orleans Investment Conference
Resources Real Estate Guys
Professional Numismatists Guild
Jim Blanchard
Investor’s Guide to Gold & Silver
Robert Kiyosaki
Peter Schiff
Michael’s Free Webinar
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Too many aspiring real estate investors never take action because they’re waiting for the right time, or they’re holding off until they know EVERYTHING about multifamily. Spoiler alert: That’s never going to happen! So, what if you simply got prepared for the next few steps and moved forward?
Mauricio Ramos is Managing Member at de Medici Group, a multifamily investment firm based in San Antonio. He specializes in acquiring underperforming assets that can be repositioned to improve the quality of life for tenants and build wealth for investors. Mauricio spent ten years as a Project Manager in the commercial construction industry before leaving to pursue real estate full-time in 2016. To date, he controls $2M in assets and has a portfolio of 234 units across Texas.
On this episode of the podcast, Mauricio joins me to discuss how his life is different now that he’s a full-time real estate investor. He describes how a desire to travel inspired him to pursue passive income and explains how he got his start in mobile homes and single-family wholesaling. Mauricio also shares the impetus behind his transition to multifamily, offering advice around raising money for syndications. Listen in for creative strategies to find off-market deals and get Mauricio’s insight on taking the first step—and THEN figuring out your next move!
Key Takeaways How Mauricio’s life is different now
- Time freedom (work out during day, walk dogs)
- Travel and go to seminars like Deal Maker Live
Mauricio’s background and experience
- Grew up in Mexico, came to US on student visa
- 10 years as civil engineer/construction manager
What inspired Mauricio to pursue passive income
- Quit job for 40-day backpacking trip
- Desire for freedom to pursue travel
Mauricio’s introduction to real estate
- Colleague introduced to single-family rentals
- Paid cash for mobile homes, wholesaled SFH
Mauricio’s first 10-unit multifamily deal
- Sourced through direct mail campaign in 2017
- Sold 18 months later for 159% ROI
Why Mauricio transitioned to multifamily
- Scalability (10 SFH vs. 10-unit)
- Able to analyze own deals with SDA
Mauricio’s second and third multifamily deals
- Wholesaled 8-unit for 5-figure profit
- Wholesaled 24-unit for 2X annual W-2 income
- Used money for mentor, passive investment
Mauricio’s transition to multifamily syndications
- Sponsored 16- and 32-unit deals in McAllen
- Raise money from friends, family and coworkers
Mauricio’s advice to aspiring syndicators
- Get educated on SEC compliance
- Provide opportunity vs. ask for money
What’s next for Mauricio
- Expand network with seminars, partnerships
- Goal to grow 600-unit portfolio in 2020
Mauricio’s insight on off-market opportunities
- Lack of creativity rather than deals
- Rach out to brokers and take first step
How to proceed without a clear plan
- Be prepared for next 3 steps
- Confidence in resourcefulness
Connect with Mauricio de Medici Group
Email mauricio@demedicigroup.com
Mauricio on Instagram
Multifamily: Invest Differently on Meetup
Resources Grant Cardone
Deal Maker Live
Rich Dad Poor Dad by Robert T. Kiyosaki
The 4-Hour Workweek by Timothy Ferriss
National Real Estate Investor Association
Driving for Dollars on the App Store
Driving for Dollars on Google Play
Syndicated Deal Analyzer
The Ultimate Guide to Buying Apartment Buildings with Private Money
Michael’s Mentorship Program
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Michael on YouTube
Apartment Investor Network Facebook Group
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Real estate investors are cautious when it comes to implementing a short-term rental (STR) strategy because of the regulatory uncertainty in the space and the extra expense of hotel taxes. But what if we could enjoy the benefits of an Airbnb model WITHOUT the uncertainty or the extra expense? Al Williamson leverages an extended-stay strategy targeted at business travelers to 10X his net income on a small multifamily property.
Al is a full-time real estate investor and Managing Partner of Easy Corporate Housing, an extended-stay STR housing solution for business travelers in Sacramento, California. He also serves as a speaker, author and mentor for investors through Leading Landlord, a platform designed to help landlords increase their income and equity. Al has developed creative strategies for growing NOI as much as 10X above a conventional landlord operation, and he shares those tactics in his books, Building Wealth with Inner City Rentals and 40 Ways to Increase the Net Income of Your Rental Property.
Today, Al joins me to explain how he quit his job as a civil engineer with the cashflow from an 8-unit property in an inner-city neighborhood. He describes how he went about fixing the neighborhood and discusses what inspired him to experiment with a short-term rental strategy. Al also shares how to determine your target market and walks us through the six types of extended stay customers. Listen in for insight around the benefits of offering 30-day stays and learn how to identify an ideal property for the extended-stay STR model!
Key Takeaways How Al quit his job with an 8-unit class D property
- Reposition inner city neighborhood
- Leverage pay-day rent schedule
- Rent bicycles, coordinate internet
How Al got started investing in real estate
- Started with house hack (3-unit building)
- Maintenance costs eating up cashflow
Why Al purchased the 8-unit class D property
- Value of 3-unit quadrupled, ‘let’s do it again’
- Remove blight (gangs, guns and prostitution)
How Al went about fixing the neighborhood
- Exercise leadership + create sense of community
- Easy as calling in broken streetlights, parties
- Offer cash for keys as necessary
What inspired Al to try a short-term rental strategy
- Travel for work himself, hated hotels
- Net income = 8 to 10X traditional model
How Al implemented a short-term rental strategy
- Set aside single unit for business travelers
- Realized benefits of one-month threshold
The best areas for an extended-stay, STR strategy
- Near Extended Stay America, Residence Inn
- Use Airbnb as backup plan
Al’s advice for determining your target market
- List on Airbnb and see who comes
- Build relationships with local businesses
The top 6 types of extended-stay customers
- Vacation travelers
- Medical
- Military
- Student housing
- Insurance
- Temporary
Why Al only needs a few units to be successful
- Huge income per unit ($1800/month)
- Single unit covers cost of mortgage
The ideal property for an extended-stay STR
- Margin far above market rent
- Furnish according to target guest
Connect with Al Extended Stay Landlord
Leading Landlord
Al on BiggerPockets
Al on LinkedIn
Resources Mr. Landlord
Building Wealth with Inner City Rentals: Success the Catalytic Landlord Way by Al Williamson
40 Ways to Increase the Net Income of Your Rental Property by Al Williamson
Tim Hubbard on ABI EP111
Michael’s Mentorship Program
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Advancements in technology allow us to access and analyze an incredible amount of data. But what does this mean for multifamily investors? Can we make use of tech tools to find off-market deals, for example? What if we could automate the underwriting process? How might machine learning facilitate market analysis?
Raj Tekchandani is the Founder and Managing Principal at Smart Capital Management, a real estate investment firm that focuses on the acquisition and management of value-add multifamily properties. Raj brings his significant experience in tech startups to his work as a full-time investor, leveraging data analytics, machine learning and artificial intelligence to identify strategic assets in emerging markets that provide high-yield returns.
Today, Raj joins me to explain how he got started in real estate, buying condos in Orlando to supplement his uncertain W-2 income. He discusses what inspired his transition to multifamily and shares his diverse experience as an active investor, passive investor, and capital raiser for syndication deals. Listen in for Raj’s assessment of the available tech tools for real estate and learn how he quit his job in startups to become a data-driven multifamily investor!
Key Takeaways What inspired Raj’s interest in real estate
- Uncertainty of work in tech startups
- Create second income stream
How Raj got started in real estate
- Friend buying condos in Orlando (2012)
- Purchased 9 of own for cashflow
Raj’s transition to multifamily
- Reading about economies of scale
- Decision to get more involved
Raj’s first multifamily investment
- 15-unit in up-and-coming neighborhood nearby
- Unexpected expenses, fired property manager
How Raj got into passive investing in multifamily
- Continuing education in syndications
- LP for 151-unit in Georgia
Why Raj decided to quit his job and do real estate full-time
- Control own destiny, control own time
- Bring passion for data analytics to real estate
What Raj is working on now
- Partner with syndicator as capital raiser
- ‘Full-time evangelist for multifamily’
The tech tools for real estate Raj is exploring
- Reonomy for apartment ownership data
- Enodo for underwriting multifamily deals
- Building market analysis tools with Bay Area company
How Raj educates new real estate investors
- Build trust through meetups and content
- Walk through recent transaction
- Serve as concierge through first deal
What Raj looks for in a multifamily operator
- Trusted partners from mastermind network
- Responsive to communication
Connect with Raj Smart Capital Management
Email raj@smartcapitalmgmt.com
Data Driven Multifamily Investing Facebook Group
Resources What’s the Best Investment: The Stock Market or Real Estate?
Syndicated Deal Analyzer
Meetup
Reonomy
Enodo
Nighthawk Equity
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Are you settling for good enough? It’s easy to get comfortable with the way life is going and let complacency set in. But if you really want to achieve greatness, you’ve got to get comfortable being uncomfortable. Whether it’s your personal development OR your multifamily portfolio, meaningful growth happens OUTSIDE your comfort zone.
Andrew Kuhn is the founder and CEO of Kuhn Real Estate, a multifamily investment firm and property management company based in the Greater Detroit Area. He spent the last 14 years in a highly compensated medical device sales role before quitting his job just one month ago to pursue investing full-time! Andrew has been involved in real estate since 2006, building a robust single-family portfolio of 76 rentals. He transitioned to multifamily two years ago and has already closed six deals totaling 281 units. Andrew also serves as a mentor with us through the Michael Blank Investor Incubator.
Today, Andrew joins me to discuss his decision to quit a lucrative W-2 job and explain how he’s becoming a servant leader now that he’s achieved financial freedom. He describes what lights him up about mentoring new investors and shares some of his most influential teachers in the personal development and real estate space. Listen in for Andrew’s methodology around learning something new and find out what’s inspiring him to scale his multifamily portfolio to 20K units!
Key Takeaways Andrew’s path to full-time investing
- 13 years in SFH to grow portfolio of 76
- Shift to multifamily 2 years ago (6 deals, 281 units)
Why Andrew struggled with the decision to quit his W-2 job
- Highly compensated work in medical device sales
- Need to define specific exit strategy
Andrew’s last day at his 9-to-5 job
- Conducted training course
- Many colleagues jealous, curious about investing
How Andrew’s life has changed since he quit his W-2
- Working harder than ever to achieve 20K+ units
- Involved in local organizations (servant leader)
What lights Andrew up about teaching others
- Realize impact of prominent teachers in own life
- Reinforce own learning + give back
Some of Andrew’s most influential mentors
- Jim Rohn, Zig Ziglar and Dale Carnegie
- Robert Kiyosaki
How Rich Dad Poor Dad influenced Andrew
- Light bulb moment re: passive income
- Inspired move to Detroit for investing opportunities
Andrew’s methodology for mastering something new
- Get educated and start networking
- Get clear on goals, then follow up with ACTION
Andrew’s key takeaways from Deal Maker Live
- Master online marketing to compete in space
- Bookending day with productive habits (Hal Elrod)
What Andrew would do differently if he could go back
- Transition to multifamily much sooner
- Growth happens outside comfort zone
How Andrew is working to grow right now
- Syndicating larger multifamily deals
- Building out property management company
Andrew’s top AHA moments
- Remove active and build passive income
- Leave legacy of compassion, service and integrity
Connect with Andrew Kuhn Real Estate
Email andrew.kuhn@kuhnrealestate.com
Andrew on LinkedIn
Resources Seven Years to Seven Figures: The Fast-Track Plan to Becoming a Millionaire by Michael Masterson
Jim Rohn
Entrepreneurs’ Organization
Kyle Wilson
Zig Ziglar
Dale Carnegie
Robert Kiyosaki
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
Rich Dad’s CASHFLOW Quadrant: Guide to Financial Freedom by Robert T. Kiyosaki
Syndicated Deal Analyzer
Schon|Tepler
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
The E-Myth Real Estate Investor: Why Most Real Estate Investment Businesses Don’t Work and What to Do About It by Michael E. Gerber, Than Merrill and Paul Esajian
Books by Gino Wickman
Books by Verne Harnish
Strategic Coach
Building Wealth One House at a Time: Making it Big on Little Deals by John W. Schaub
Hal Elrod
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
Ed Mylett
The Second Mountain: The Quest for a Moral Life by David Brooks
The Richest Man in Babylon by George S. Clason
Michael’s Mentorship Program
Nighthawk Equity
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
Good deals are so hard to find right now! That’s become a common complaint among real estate investors in recent months, but I’m not convinced it’s true. In fact, if you’re willing to hustle and approach brokers with a service-first mindset, it’s fairly easy to find off-market multifamily deals.
Logan Freeman is a commercial real estate agent, investor, developer and capital raiser. He is also the founder of LiveFree Investments, a Kansas City firm specializing in joint ventures and equity partnerships that provides strong returns on capital from secure investments. Logan got his start in real estate doing a live-in flip back in 2013, and since then, he has completed 80-plus transactions and earns $13M for his investors annually.
Today, Logan joins me to explain why he was dreaming about real estate—even as he was being drafted for the NFL! He discusses the niche he has developed representing buyers and building his own portfolio, describing how he builds credibility with brokers by solving problems and adding value. Listen in for Logan’s What if? approach to real estate networking and learn how he is hustling to find off-market deals for his clients—and himself!
Key Takeaways Logan’s path to real estate
- Drafted for NFL but didn’t make team
- Work to earn master’s degree (265 calls/day)
- Learn self-worth not tied to outcomes
Logan’s introduction to real estate
- Friends’ dads as mentors, owned rentals
- Find way ‘to make money while you sleep’
How Logan got started in real estate
- Live-in flips while working as consultant
- Acquisitions for boutique investment firm
What inspired Logan’s transition to multifamily
- Spreads starting to shrink in KC market
- Decision to work smarter, not harder
Logan’s status as the go-to guy when people need to sell
- Need in market to match buyers with properties
- Source off-market deals via broker relationships
How Logan gets brokers to take him seriously
- Build trust by solving problems
- Don’t ask for fee (earn through buyers)
- Underwrite properties + send feedback
- Partner as necessary for track record
- ‘Network your tail off’
What Logan’s excited about moving forward
- Creative strategies to buy off-market properties
- Marketing tactics to build personal brand
- Co-GP on self-storage, mobile home parks
Connect with Logan LiveFree Investments
LiveFree on Facebook
LiveFree on Twitter
LiveFree on Instagram
Logan on YouTube
Logan on LinkedIn
Resources Nighthawk Equity
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
TalentSmart
StrengthsFinder
Syndicated Deal Analyzer
Berkadia
Block Real Estate Services
CBRE Kansas City
David Goggins
CCIM
Stephen Covey
Mauricio Rauld
Be in the Top 1%: A Real Estate Agent’s Guide to Getting Rich in the Investment Property Niche by Bob Helms
Michael Becker
Loom
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
If you make good money, and you want to make it work for you, passive investing in multifamily syndications may be a perfect fit. But what are the benefits of apartment investing compared to the stock market? How do you choose an operator you can trust? What happens if there’s an economic downturn? Can you really achieve financial freedom with passive investing?
Ryan McKenna is the founder of McKenna Capital, a private equity firm that helps investors build long-term wealth through value-add multifamily, self-storage and manufactured home park investments. Ryan has invested in 30-plus real estate and business syndications worth more than $600M, and his current portfolio includes 7,800 units in markets across the country. Ryan’s role at McKenna Capital involves overseeing acquisitions, capital raising efforts, investor relations and asset management.
Today, Ryan joins me to explain why he chose the path of passive investing and discuss what drew him to multifamily over other investment options. He shares the generous tax benefits of multifamily syndications, offering a high-level overview of how to leverage the cost segregation analysis to accelerate depreciation. Listen in for Ryan’s insight on how to vet an operator and learn how to put your money in motion and achieve financial freedom as a passive investor!
Key Takeaways How Ryan got started in real estate
- Learned about multifamily syndications in college
- Used Rich Dad… as blueprint for financial freedom
Why Ryan chose passive over active investing
- Enjoyed work in corporate world
- Found good operating partners with track record
Why Ryan chose multifamily over other investment options
- 16-20% annual return, 8-9% cash-on-cash return
- Generous tax benefits, predictable in downturn
The beauty of the multifamily cash out refinance
- Get back 100% of money plus cashflow
- Redeploy in another deal for additional income
A high-level overview of the cost segregation study
- Accelerates depreciation on parts of property
- Big tax advantages up front (huge taxable loss)
Ryan’s advice for aspiring passive investors
- Reach out to people already doing it, ask Q’s
- Diversify in multiple markets, operating partners
How Ryan vets a multifamily operator
- Look for character, integrity and trust
- Communication style + transparency
- Track record (execute on business plan)
Ryan’s insight on waiting until after a downturn
- Money in bank losing value with inflation
- ‘Bad deal’ still returns 8 to 12% + tax benefits
Ryan’s timeline to financial freedom for passive investors
- Invest $100K per year for 5 years
- Passive income stream of $140K
How Ryan’s life has changed now that he’s financially free
- More time with family, lifestyle by design
- Passionate about real estate (full-time syndications)
Ryan’s transition from passive to active investing
- Co-syndicating deals as part of general partnership
- Raise capital, introduce investors into multifamily
Connect with Ryan McKenna Capital
Resources Deferred Sales Trust on ABI EP166
What’s the Best Investment: The Stock Market or Real Estate?
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
Nighthawk Equity
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
A jack of all trades is the master of none, right? We’ve been taught that it’s best to drill down on investment strategy and beware of shiny objects. But Adam the Brit has a slightly different philosophy. He believes that it’s important to establish multiple income streams across several different asset classes, taking advantage of opportunities to trade real estate and generate lump sums of cash quickly—that he can then use to expand his buy-and-hold portfolio and increase his flow of passive income.
Adam the Brit is a season real estate investor with experience in nearly every asset class, including single- and multifamily flips, value-add multifamily syndications, multifamily buy-and-holds, ground-up construction, and triple net lease retail deals. He has invested all over the world, from Asia to Europe to the US, and his current focus in on syndicating shopping centers and doing multifamily flips in low cap markets.
Today, Adam the Brit joins me to discuss why he got into (and out of!) multifamily buy-and-holds. He explains why he transitioned to retail and weighs in on the benefits of the triple net lease option. Adam the Brit also shares how he fared in the recession, describing how he came upon the buy in bulk, short-term hold and flip strategy he leveraged between 2009 and 2014. Listen in for insight around what differentiates the US real estate market and learn how Adam the Brit complements his primary investment strategy with a variety of opportunities!
Key Takeaways How Adam the Brit got into real estate
- Excess capital from business in Netherlands
- House flipping, invest in office warehouse
When Adam the Brit got into multifamily
- Move to US in 2001, love idea of passive income
- Self-funded 8 multifamily buildings in Houston
Why Adam the Brit chose to invest in multifamily
- Looking for scalability
- Small, affordable deals available
How the US market differs from others around the world
- Find real estate to suit any budget
- Low barriers to entry, favorable tax treatment
Why Adam the Brit got out of multifamily
- Focus on more passive investments (travel)
- Retail more reliable than class C market
The benefit of the triple net lease option
- Pass taxes, insurance and maintenance to tenant
How Adam the Brit fared during the recession
- Retail located in strong market, performed well
- Ground up construction went dark
- Bought 50 houses in AZ for 10¢ on dollar (turn $1M into $3M in 3 mo.)
- Buy in bulk, short-term hold + flip from 2009 to 2014
What Adam the Brit would do differently
- Set goals higher (didn’t push hard enough)
- More aggressive + take more risks
Adam the Brit’s primary strategy today
- Return to triple net lease retail long-term holds
- Focus on syndicating Hispanic shopping centers
Adam the Brit’s multifamily flip strategy
- 4% cap rate doesn’t work for long-term holds
- Create $40K of value to earn $1M profit
Adam the Brit’s advice for aspiring real estate investors
- Look for opportunities to trade real estate
- Use quick money to build passive portfolio
- Go where you know
Connect with Adam the Brit Email adam@adamthebrit.com
Resources Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
Odell Barnes
The Art of the Deal by Donald J. Trump with Tony Schwartz
Michael’s Ultimate Guide Course
Michael’s Mentorship Program
Nighthawk Equity
Deal Maker Live
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
Once you get a multifamily deal under contract, the clock starts ticking. You have limited time to raise capital, so it’s super-important that you’ve already built relationships with potential investors and have a database to call on. But how do you transition from simply talking to people about the opportunity to invest with you to building a formal pipeline of truly interested investors?
Kyle Mitchell is Managing Partner at Limitless Estates, a multifamily firm investing in the Phoenix and Tucson markets. He started investing in single-family in 2015, building a $1M portfolio of nine properties in Illinois, Ohio and Arkansas, before quitting his W-2 job to pursue multifamily in 2018. Within two months of going all-in on apartment buildings, Kyle landed a 42-unit deal, and he is currently negotiating a $15M 128-unit deal. Kyle is also the host of the Passive Income Through Multifamily Real Estate Investing Podcast.
Today, Kyle joins me to explain his decision to quit his 9-to-5 before he had a multifamily deal, discussing the benefits of going full-time and the way he got brokers to take him seriously. He shares the details of his first multifamily syndication, describing how he raised $1M in 60 days and why he had to switch lenders late in the process. Listen in for Kyle’s advice around finding a mentor and building your team—and get his blueprint for building an investor database for multifamily syndications!
Key Takeaways Why Kyle quit his job before he had a multifamily deal
- Savings and wife’s income made possible to go all-in
- Accelerate progress after 10 months building pipeline
How Kyle and his wife’s goals were in alignment
- Already investing in SFH, did SDA course together
- Goal to become entrepreneurs + control time
Kyle’s insight on the benefits of going full-time
- Ability to visit markets more often
- Brokers take more seriously
How Kyle got brokers to take him seriously
- Build relationships over 6 months (persistence)
- Meetup, newsletter and podcast
- Mentorship and coaching
Kyle’s first multifamily deal
- 42-unit property near U of A in Tuscon
- Mismanaged by SFH property manager
When Kyle started raising money
- Building investor list for 10 months before
- Webinar after signed, $1M raise in 60 days
How Kyle built his investor database
- Leads from podcast, newsletter + meetup
- One-on-one meetings to determine interest
How Kyle overcame objections re: lack of track record
- Professional experience in management
- Real estate license and SFH portfolio
- Coaches, education, mentors + partners
Kyle’s insight on the Law of the First Deal
- LOI for second property within 3 weeks
- $15M 128-unit deal with same partners
Kyle’s advice for aspiring multifamily investors
- Double number of investors
- Always be raising money
- Be transparent with lender
- Set up team in advance
Kyle’s blueprint for following in his footsteps
- Find mentor that fits goals
- Define goals + take action
- Build partnerships
Connect with Kyle Limitless Estates
Passive Income Through Multifamily Real Estate Investing Podcast
Email kmitchell@limitless-estates.com
Resources Uganda Counseling and Support Services
MailChimp
Michael’s Ultimate Guide Course
Michael’s Mentorship Program
Syndicated Deal Analyzer and Sample Deal Package
Nighthawk Equity
Deal Maker Live
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
If you’ve got money to invest, you’ve got a lot of options. So, what are the pros and cons of the stock market? Single family homes? Multifamily syndications? What’s the difference between active and passive investing? And how will the predicted market correction impact each of these opportunities?
Bronson Hill is the Director of Investor Relations at Nighthawk Equity, the investing arm of the Michael Blank organization. Bronson started investing in real estate 13 years ago, building a strong single-family portfolio before he transitioned to multifamily. Now, Bronson is the General Partner for 225 units, and he is passionate about sharing the benefits of passive investing in multifamily syndications.
Today, we switch things up and Bronson interviews me about the options available to passive investors. I weigh in on the downside of investing in the stock market, explaining why the actual return is much lower than what your financial advisor tells you! We also cover the advantages of investing in multifamily syndications, including the below-average risk and extraordinary tax benefits. Listen in for insight around the potential market correction everyone is talking about and learn what we do at Nighthawk Equity to protect our investors from the possibility of a downturn.
Key Takeaways The disadvantages of investing in the stock market
- Actual return much lower than published #s
- Influenced by volatility, fees, taxes + inflation
The downside of investing in single-family homes
- Susceptible to market cycles
- Issues around property management
The advantages of multifamily syndications
- Below-average risk
- Cashflow
- Build wealth
- Tax benefits
- Hedge against inflation
Active vs. passive investing in multifamily
- Active = find deals and/or raise capital
- Passive = limited involvement in day-to-day
The market outlook for multifamily
- Cognizant of possible correction
- Taking steps to protect investors
How to protect yourself from a market correction
- Take on long-term debt
- Look for cashflow from Day 1
- Set aside and build reserves
- Conservative underwriting
Connect with Bronson Nighthawk Equity
Email bronson@nighthawkequity.com
Resources Deal Maker Live
What’s the Best Investment? The Stock Market or Real Estate
Doug Duncan on CNBC
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
Adding value to a multifamily property is what allows us to raise rents and earn a solid ROI. But how do we choose a contractor? As owners, how active should we be in managing the construction itself? What is the property manager’s role in a construction project? How do we know what amenities work in a particular market—and what they’re worth to renters?
Ira Singer is the Principal at Mosaic Construction, a design-build industry leader based in Northbrook, Illinois. Mosaic provides best-in-class renovation, remodeling and building services for multifamily, residential and commercial property owners and managers. Marc Rutzen is the CEO of Enodo, a machine learning platform that analyzes multifamily investments and calculates the ROI on value-add amenities.
Today, Ira and Marc join me to discuss the ins and outs of doing a value-add multifamily deal. Ira explains how the owner, property manager and contractor work together on a large-scale construction project, sharing the integral role communication plays in the process. Marc describes how amenity pricing varies by market and weighs in on the trend to offer services like pet daycare and credit card payments. Listen in for insight around making value-add choices that will allow you to increase rents, decrease operating costs, and boost your ROI overall!
Key Takeaways The role a construction company plays in acquiring property
- Site visit, bring architect if necessary
- Discuss scope of work + lend eye as ‘building inspector’
The owner’s role in overseeing a construction project
- Review daily updates (photos + written explanation)
- Make important decisions
The property manager’s role in a construction project
- Provide access and notify residents
- Communicate with onsite project manager
How to approach large-scale value-add projects
- Empty building for full unit makeovers
- Two-day refresh of occupied units
Ira’s advice on hiring and managing a contractor
- Develop relationship with construction partner
- Monitor progress with strong communication
What construction gone wrong looks like
- Failed inspections
- Poor communication, execution
Ira’s insight around how to increase ROI
- Pay attention to building envelope
- Solid roof, gutters, windows and doors
Ira’s tips for reducing expenses on a property
- Maintenance-free siding and windows
- Efficient HVAC system, insulation in attics
How amenity pricing varies by market
- Rooftop deck $32 nationally, $45 in Miami
- Pool $30 in Miami, $50 in Chicago
The trend toward offering services
- Pet daycare and dog walking
- Storage (e.g.: package lockers, bikes)
- Accepting credit card payments
Connect with Ira Mosaic Construction
ira@mosaicconstruction.net
Connect with Marc Enodo
marc@enodoinc.com
Resources Deal Maker Live
Save Water Co
National Apartment Association
CoStar
Partner with Michael
Michael’s Mentoring Program
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
A lot of aspiring investors hesitate to leave the security of a high-paying job to pursue real estate. And very few are brave enough to quit their 9-to-5 and go all-in on multifamily investing without a few deals to their credit and the cashflow to cover their living expenses. Burning the boats is not for everyone, but Jerome Myers had a financial runway, and he’d had it with corporate America. So, he walked away from a six-figure engineering position to make his dreams real.
Jerome is the Managing Director of The Myers Development Group, a real estate investment firm on a mission to build a portfolio of 1,000 units and free 100 people from work they aren’t passionate about. Jerome quit his corporate job to pursue real estate in 2017, and since then, he has joint ventured on several multifamily deals and is in the process of syndicating a 112-unit development deal in Greensboro, North Carolina, known as Technology Row. He is also the Chief Inspiration Officer for Dreamcatchers, a podcast featuring ordinary people doing extraordinary things.
Today, Jerome joins me to explain what motivated him to quit his corporate job and go all-in on multifamily—before he’d done a single deal! He shares his struggle to land that first property with no track record and offers insight into his experience with the phenomenon I call The Law of the First Deal. Jerome also describes the differences between joint venturing and syndicating, discussing why he prefers partnering but understands the need to engage LPs as you scale. Listen in for Jerome’s advice around leveraging a coach to fast-track your success and get inspired by his ‘dreams should be real’ philosophy for pursuing what you love.
Key Takeaways Why Jerome quit his job before he had a deal
- Never right time, tired of golden handcuffs excuse
- Frustrated with inhumanity of corporate America
Jerome’s struggle to land his first multifamily deal
- Banks wouldn’t lend without experience
- Fix and flips to build reputation
How Jerome finally landed his first apartment deal
- Joint venture with team of four
- Added experienced property manager
Jerome’s experience with The Law of the First Deal
- Opened doors, bankers + brokers lined up
- Viewed as expert and treated differently
Jerome’s second multifamily deal
- Closed on 28-unit in Greensboro within 6 months
- Blowing revenue projections out of water
Jerome’s advice around partnering
- Know who you’re teaming up with
- Vet property manager carefully
The difference between partnering and syndicating
- Joint venture partners bet on YOU
- Syndicators interested in track record + returns
Jerome’s ‘dreams should be real’ philosophy
- Society encourages mediocrity, fitting in
- Leverage real estate to pursue passions
- Do good in community + do well for investors
Jerome’s advice for aspiring multifamily investors
- Get a coach to fast-track success
- Joint venture + add value to team
Jerome’s insight on ‘burning the boats’
- Get financially fit before quit job
- If you’re going to do it, do it
Connect with Jerome Myers Development Group
Dreamcatchers Podcast
Resources CASHFLOW Game
Deal Maker Live
Nighthawk Equity
Michael’s Mentoring Program
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
Don’t think you have the time to start investing in multifamily? Anna Kelley is a wife and mother of 4 who worked a demanding full-time job AND built a real estate portfolio on the side, working 82 hours a week for nearly 5 years. She argues that sacrificing your time for a couple of years to buy yourself decades of financial freedom is well worth it. But you’ve got to be willing to take consistent action—even when it’s hard.
Anna is a seasoned real estate investor with a rental portfolio valued at $12.5M. She is also an Amazon bestselling author and sought-after speaker in the realm of buy-and-hold investing, creative financing, vacation rentals, women in real estate, and multifamily investing. Anna has coached several new investors through their first deal, and she is dedicated to educating others on the benefits of multifamily real estate investing.
Today, Anna joins me to discuss how she executed on a 5-year plan to quit her job with real estate investing. She shares her new emphasis on work-life balance, explaining how she is still working hard but making time to focus on her health and family. Anna also offers insight on why she struggled with the decision to quit her job and how that uncertainty inspired her to joint venture and scale up. Listen in for Anna’s advice around finding partners with complementary skills and learn how to MAKE the time to achieve financial freedom!
Key Takeaways How Anna’s life has changed since quitting her job
- No less busy (12-hour days to close on 2 properties)
- 2-week vacation for first time in years
Anna’s new emphasis on work-life balance
- Consistent time for self-care + focus on health
- Slow, methodical growth of multifamily business
Why Anna questioned the decision to quit her job
- Background as financial advisor, predict recession
- Job at AIG ‘sole lifeboat’ for family through crash
How Anna got started investing in real estate
- Clients with most money = real estate investors
- Protectionary investments to cover expenses (2007)
- Bought small multifamily in 2008 with rest of 401(k)
Anna’s five-year plan to replace her income
- Refinance 12-units in 3 buildings already owned
- Line of credit + equity loan to buy foreclosures
- Research seller financing, buy 4-unit buildings
Anna’s decision to scale up to larger multifamily properties
- Reached goal to replace income ($5M in assets)
- Wanted 6 months of expenses for buildings + year of salary
- Met partners at event, found 73-unit off-market property
Anna’s investing advice for her younger self
- Still buy small properties for long-term stability
- Invest with others sooner, focus on finding deals
Anna’s strategic approach to syndicating deals
- Target properties in 2-hour radius where know market
- Expand to other markets once comfortable with process
Anna’s advice around joint venturing
- Find experienced investor with aligned goals
- Look for someone with complementary skill set
Anna’s insight for aspiring multifamily investors
- Be prepared for initial investment of time
- Got for it but be wise in who partner with
Anna’s response to the lack of time argument
- You make time for what’s really important
- 82 hours/week for 4 years with few breaks
How Anna got through the difficult times
- Change way you get there or timeline, not goal itself
- Develop resilience and do whatever it takes
Connect with Anna Rei Mom
Anna on Facebook
Creating Wealth Facebook Group
Resources Deal Maker Live
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
Kyle Wilson’s Inner Circle Mastermind
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Turn Your Setbacks into Comebacks by Rick McDaniel
Grant Cardone on School of Greatness EP802
Alan Schnur on Apartment Building Investing EP116
Elite Investors Club
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
The beautiful thing about achieving financial freedom is that it gives you the means to give back. Of all the investors I know, the majority who quit their jobs with multifamily go on to pursue a greater purpose, using real estate as a vehicle to make other’s lives better.
Reed Goossens is a real estate entrepreneur and Managing Partner of Wildhorn Capital. He moved to the New York from his native Australia in 2012, and since then, Reed has grown a portfolio of 1,100 multifamily units. He has been involved with $500M-worth of large-scale commercial construction and development projects in Australia, the UK and the US. Reed is also the host of the Investing in the US podcast and author of Investing in the US: The Ultimate Guide to US Real Estate.
Today, Reed joins me to discuss how his life is different now that he’s financially free and why he’s using the platform he created through real estate to raise cancer awareness. He also weighs in on the difference between productivity and activity, offering insight around the best use of your time as a syndicator and the value in firing yourself from repetitive or administrative tasks. Listen in to understand how Reed’s definition of success has changed to focus on his evolution as an entrepreneur and learn the #1 factor that helped him build a substantial multifamily portfolio!
Key Takeaways Reed’s mom’s inspiring advice
- We’re not here to muck around
- Live life without regrets
Reed’s journey to financial freedom
- Pulling hair out in cubicle
- One-way ticket to NYC in 2012
- Required hard work + hustle
Reed’s insight on productivity vs. activity
- Being busy ≠ effective work
- Define black, blue and red zone
The best use of your time as a syndicator
- Find partner with complementary skill set
- Build systems and expand business
Reed’s first hires as a multifamily investor
- Underwriting interns to analyze deals
- VAs for bookkeeping and admin tasks
The activities that Reed categorizes as ‘black time’
- Thought leadership (e.g.: speaking, masterminds)
- Get in front of investors as face of business
How Reed’s definition of success has changed over the years
- Commit to doing things well without goal in mind
- Focus on evolution as entrepreneur
Reed’s mission now that he’s achieved financial freedom
- Inspired by UN Global Goals
- Use platform to create awareness re: cancer
The #1 factor in building Reed’s 1,100-unit portfolio
- ‘Fool and their money easily parted’
- Always continue to learn
Reed’s advice for building a successful brand
- Lean in to what makes you different
- Credible reputation = recession-proof
How Reed is building a multifamily business ecosystem
- Bulk order supplies for renovations
- Bring construction management in-house
Connect with Reed Reed’s Website
Wildhorn Capital
Investing in the US Podcast
Investing in the US: The Ultimate Guide to US Real Estate by Reed Goossens
Resources Reed on Apartment Building Investing EP033
Upwork
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
UN Global Goals
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Deal Maker Live
Nighthawk Equity
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
The 1031 Exchange is the best-known way to defer capital gains on the sale of a property. The problem for syndicators is getting ALL of your limited partners on board—which is next to impossible. So, what do you do if several LPs want to cash out but the rest are looking for an option to defer? The Deferred Sales Trust may just be the perfect solution.
Brett Swarts is the CEO of Capital Gains Tax Solutions, a firm dedicated to helping clients leverage the Deferred Sales Trust as a tool to overcome capital gains tax deferral limitations. He is also an experienced commercial real estate broker and investor, boasting $85M in closed transactions and a portfolio of multifamily, senior housing, retail, medical office and mixed-use properties. With more than 12 years of experience in the brokerage industry, Brett is committed to helping people create and preserve wealth and educating HNWI around capital gains tax deferral via the Deferred Sales Trust.
Today, Brett joins me to discuss the options we have for deferring taxes on the sale of a property, the 1031 Exchange and the Deferred Sales Trust. He shares the problems associated with the 1031, including the 180-day deadline, the pressure to buy a new property, and the challenge of getting all the investors in a syndication to agree. Brett goes on to explain the fundamentals of the Deferred Sales Trust as an alternative, describing how the process works and its benefits in terms of timelines and customizability. Listen in to understand the costs associated with the DST versus the 1031 Exchange and learn how to choose between the two—and avoid paying capital gains taxes!
Key Takeaways Brett’s path to founding Capital Gains Tax Solutions
- Commercial broker for Marcus & Millichap
- Understanding of 1031 Exchange (tax efficient, preserve wealth)
The mechanics of the 1031 Exchange
- Send money from sale to QI company
- New property must close within 180 days
The penalty for not meeting 1031 deadlines
- QI company sends funds on Day 181
- Hit with tax on money received
The downside of the 1031 Exchange
- Pressure to buy, tendency to overpay
- Lower cap + higher interest rates
- Rapid rental appreciation
- Traveling depreciation schedule
The fundamentals of the Deferred Sales Trust
- Trust itself buys property and immediately sells
- Investors pay NO tax on funds in deferred state
How you use the funds in a Deferred Sales Trust
- Work with third-party trustee + financial advisor
- Put money into portfolio of liquid investments
- Up to 80% can be directed to syndication deals
The advantages of utilizing a Deferred Sales Trust
- Diversity across several deals, product types
- 10-year DST can be renewed (no fixed time frame)
- Starts new depreciation schedule
- 23-year track record, survived 14 IRS audits
What to do if your investors are divided re: a 1031 Exchange
- Defer part of entity with DST (cash out other LPs)
- Money in trust can be directed to next syndication
When to choose a 1031 Exchange vs. the DST
- 1031 maintains stepped-up basis (heirs sell tax free)
- DST better for ultra-HNWI to avoid 40% death tax
The costs associated with the 1031 and the DST
- 1031 = one-time fee of $750 to $1K
- DST = recurring fees for trustee + financial advisor
Connect with Brett Capital Gains Tax Solutions
CGTS on YouTube
CGTS on Facebook
Brett on LinkedIn
Brett on BiggerPockets
Resources Start with Why: How Great Leaders Inspire Everyone to Take Action by Simon Sinek
IRS Tax Code on Installment Sales
Damion Lupo on ABI EP158
Michael’s Mentoring Program
Deal Maker Live
Hal Elrod
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
We all want to be the best version of ourselves for the people we love and lead. But most of us don’t think we can BE happy or fulfilled until we HAVE the things we want. What if we’ve got it backwards? What if we start with daily dedication to BEING a Level 10 person? What if self-development is the prerequisite for DOING what it takes to achieve our big dreams and HAVING the success we’ve always wanted?
Hal Elrod is the world-renowned author of The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM), one of the highest-rated bestsellers in the world. The book has been translated into 27 languages, and Hal’s method is practiced daily by 500,000-plus people in more than 70 countries. He is also one of the top keynote speakers in the US and the creator of one of the most engaged online communities on the web. In April, Hal released his new book, The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable.
Today, Hal joins me to share his 2 near-death experiences and explain how he learned to accept the circumstances—and then commit to doing whatever it took to get the results he wanted. He walks us through the 6 elements of the Miracle Morning, discussing how the daily practice lays the foundation for becoming a Level 10 person. Hal also offers insight around the true purpose of setting goals and reveals how unwavering faith and extraordinary effort are key in reaching our big dreams. Listen in to understand Hal’s 4-step process for creating affirmations and learn how to apply the BE-DO-HAVE model to achieving financial freedom!
Key Takeaways Hal’s first near-death experience
- Hit head-on by drunk driver, broke 11 bones
- Dead for 6 minutes and in coma for 6 days
Hal’s response to the prediction he would never walk again
- Accept circumstances (emotional pain caused by resistance)
- Chose to be happiest, most grateful person in wheelchair
- Visualized walking every day + took first step 3 weeks later
The 5-Minute Rule
- Set timer for 5 minutes to rant and rave
- Say, ‘Can’t change it’
- Focus all energy on what CAN change moving forward
Hal’s mission to elevate the consciousness of humanity
- Dedicate time each day to becoming better version of selves
- Must become Level 10 person to achieve Level 10 success
The 6 elements of the Miracle Morning
- Silence (meditation, prayer)
- Affirmations
- Visualization
- Exercise
- Reading
- Scribing
Why Hal wrote The Miracle Equation
- Daily practice of Miracle Morning lays foundation
- Miracle Equation = process for goal achievement
Hal’s insight around the real purpose of setting goals
- Develop qualities + characteristics of goal-achiever
- Value of growth on journey more important than hitting target
Hal’s mantra for developing unwavering faith
- Commit to giving everything you’ve got to reach goal
- Regardless of results along way, no matter what
How Hal defines extraordinary effort
- Hard work AND consistency
- Doesn’t matter how long it takes
The 4 steps to creating effective affirmations
- WHAT you’re committed to
- WHY it’s deeply meaningful
- WHAT actions necessary to reach goal
- WHEN committed to taking actions
Connect with Hal Hal’s Website
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
Resources Jim Rohn
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
The Miracle Morning Documentary
Hal on Rich Dad Radio
Think and Grow Rich by Napoleon Hill
Deal Maker Live
Michael’s Mentoring Program
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
Apartment Investor Network Facebook Group
‘Don’t be afraid. This is totally doable.’
Of all the people who are exposed to real estate on a regular basis, very few take action to become investors themselves. If awareness is not the problem, then what is? Why do so few real estate agents, for example, seek out opportunities to work with investors or partner to buy properties of their own? Why do so many of us attend REIA meetings month after month—without taking the next step?
Known as The Godfather of Real Estate, Bob Helms has been investing since 1957. He became a practicing broker in 1980 and spent 18 years working as a father-son team with his son, Robert, of Real Estate Guys fame. In his long and storied career, Bob has owned, managed, bought and sold hundreds of properties. He has been a top-producing agent, respected managing broker, and mentor to hundreds of leading agents and investors. Bob is a regular contributor to Real Estate Guys Radio and a featured speaker at the annual Summit at Sea. He is also the author of Be in the Top 1%: A Real Estate Agent’s Guide to Getting Rich in the Investment Property Niche.
Today, Bob joins me to discuss why agents don’t invest in real estate themselves, explaining how the lack of role models for realtors inspired him to write Be in the Top 1%. He describes how he became an accidental real estate investor and shares the story of Bob’s Big Boo-Boo, a 50-unit deal that he failed to optimize. Listen in for Bob’s insight around becoming an investment property specialist and learn how you can easily become an investor yourself—with the right education and a little self-belief!
Key Takeaways How Bob became The Godfather of Real Estate
- Nicknamed by The Real Estate Guys
- Practicing broker for 40 years
Why agents don’t invest in real estate themselves
- Lack of successful role models
- Commercial agents < 7% of total
How Bob got into real estate investing
- Bought cabin in mountains as engineering student
- Worked as agent specializing in serving investors
What it was like to work with Robert as a father-son team
- Gave each other space to operate
- Both made significant contributions
What inspired Bob to write Be in the Top 1%
- Average agent makes $35K to $40K/year
- ‘Separated from opportunity’
The key to becoming an investment property specialist
- Understand language of investors, how they think
- Offer opportunity superior to what already doing
Bob’s top takeaways from Be in the Top 1%
- Investing easy to do with education
- Find coach to guide through process
How agents can best serve real estate investors
- Learn investment goals, help develop plan
- Proactively look for properties than align
Connect with Bob The Real Estate Godfather
Bob on The Real Estate Guys
Be in the Top 1%: A Real Estate Agent’s Guide to Getting Rich in the Investment Property Niche by Bob Helms
Resources The Real Estate Guys
Summit at Sea
The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Timothy Ferriss
Equity Happens: Building Lifelong Wealth with Real Estate by Robert Helms and Russell Gray
New Orleans Investment Conference
Hal Elrod
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod
Deal Maker Live
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
Most of us don’t see ourselves as salespeople. We believe you have to be an attack dog to do well in sales, and that’s just not us. But according to Blair Singer, we can make a lot of money just being ourselves. In fact, there are several different kinds of Sales Dogs, and we can all learn to sell—and do it well—by managing that little voice in our heads and playing to our strengths. And frankly, sales is a fundamental part of any business, including real estate investing.
Blair is the Rich Dad Sales Advisor and Chief Leadership Engineer at Blair Singer Companies. An expert in sales and leadership mastery, Blair has helped tens of thousands of people significantly increase their sales and income in just six weeks. He is a sought-after keynote speaker, presenting to corporate and public audiences in 35 countries on the topics of personal and professional development. Blair is also the bestselling author of Sales Dogs: You Don’t Have to Be an Attack Dog to Be Successful in Sales and Little Voice Mastery: How to Win the War Between Your Ears in 30 Seconds or Less and Have an Extraordinary Life!
Today, Blair joins me to explain why sales is necessary in any business and discuss the value of cultivating sales skills as a real estate investor. He shares the five types of Sales Dogs, describing how we can overcome the fear of rejection and make money just being ourselves. Blair also offers insight on managing the little voice in your head, learning to be authentic, and playing to your strengths—rather than trying to overcome your weaknesses. Listen in to understand how to win the ‘war between your ears’ and learn why the most important sale is YOU selling YOU to YOU!
Key Takeaways Why Robert Kiyosaki needs a sales advisor
-
1 skill in any business
- Sales = income
Blair’s 5 types of Sales Dogs
- Pit bull—stereotypical salesperson
- Poodle—charming networker
- Chihuahua—detail-oriented
- Golden retriever—serve first
- Basset hound—instant rapport
Why real estate investors need sales skills
- Craft pitch to specific investor
- Sell trust in you
How to overcome the fear of rejection
- Practice, perfect technique
- Good coaching
Blair’s insight around personal development
- ‘Win war between your ears’
- Key to success in sales
Why it’s crucial to manage your little voice
- Sabotage best efforts
- Move aside to control life again
Why people have a hard time being authentic
- Put on façade to make people like us
- Addicted to approval
Blair’s advice on playing to your strengths
- Find what good at, do more of that
- Avoid comparison with others
Blair’s take on the path to success
- Not as far as we think
- ‘Distance from right to left ear’
Blair’s steps to cultivating confidence
- Develop awareness of little voice
- Study personal growth
- Leverage good coaching
Connect with Blair Blair’s Website
Sales Dogs: You Don’t Have to Be an Attack Dog to Be Successful in Sales by Blair Singer
Little Voice Mastery: How to Win the War Between Your Ears in 30 Seconds or Less and Have an Extraordinary Life! by Blair Singer
Team Code of Honor: The Secrets of Champions in Business and in Life by Blair Singer
Resources Deal Maker Live
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
Rich Dad
Michael’s Mentoring Program
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
Close your eyes and imagine for a moment how it would feel to quit your W-2 job. Imagine having the freedom to control your own time—and financial destiny. Imagine having the passive income to cover your expenses and provide for your family long-term, without being stuck in those golden handcuffs. If you’re dreaming of handing in a letter of resignation, then multifamily real estate investing may offer the ideal solution.
Danny Randazzo is an author, entrepreneur and full-time real estate investor. He has a background as a financial consultant, advising multibillion-dollar companies in improving revenue performance, but Danny’s ambition to achieve financial freedom led him to move from the Bay Area to Charleston, South Carolina, and build an impressive real estate portfolio with his wife, Caitlin. Now, Danny and his team control $130M in multifamily properties across the country, and he is focused on helping others invest passively in apartment buildings.
Today, Danny joins me to discuss his transition from W-2 employee to full-time real estate investor. He reflects on his decision to move to a market ripe for growth and the impetus behind his pivot to focus fully on multifamily. Danny also offers advice around raising money for syndications, ensuring alignment of interests with potential partners, and leveraging joint ventures to scale your business. Listen in for insight on making the decision to quit your job and pursue real estate full-time and learn why multifamily is the most direct route to financial freedom!
Key Takeaways How Danny feels about quitting his job
- Corporate job no longer providing what family needs
- Joy in controlling own time and financial destiny
Danny’s transition from employee to full-time investor
- Good personal financial position
- 100% focus to take real estate business next level
How Danny got into real estate
- House hack with extra money from working in UAE
- Decision to move to Charleston, SC (ripe for growth)
Danny’s pivot to focus on apartment buildings
- Benefits in terms of scalability, occupancy protection
- Grew portfolio to control $130M in multifamily
Danny’s guidance around raising money for deals
- Use own equity nest egg for proof of concept
- Educate + share opportunities to invest in real estate
The benefits of passive investing in multifamily
- Cashflow
- Future equity appreciation
- Tax advantages
The role of joint ventures in scaling your business
- Allows for creativity in how do deals
- Work together to achieve greater results
Danny’s top real estate lessons learned
- Alignment of interests with partner’s wants + needs
- Find solutions with help from network
Danny’s advice for aspiring investors on quitting your job
- Get clear on financial needs + goals
- Do math on # of properties to cover expenses
What Danny is excited about moving forward
- Several multifamily deals in pipeline
- Vacation to South Africa with wife
Connect with Danny Passive Investing
Randazzo Capital
Danny’s Blog
The Boy Who Lost His Wallet (Wealth Lessons for Kids) by Danny Randazzo
Resources Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
Commercial Investing Books by Dolf de Roos
Tom Wheelwright on ABI EP127
Grant Cardone
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
Deal Maker Live
Michael’s Products
Michael’s Mentoring Program
Invest with Michael
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Michael on Instagram
Apartment Investor Network Facebook Group
There are a number of different ways to get your multifamily investing career off the ground. You might choose to buy a small property with your own money or learn the business as a passive investor in a syndication. You could take on the role of syndicator and partner with an experienced team or get in the game as a capital raiser. So, what are the benefits to each of these strategies? Which approach provides the quickest route to financial freedom? And how can you leverage the power of joint ventures to invest in bigger deals early on?
Jens Nielsen is the principal at Open Doors Capital, a private equity firm out of Durango, Colorado, that helps people passively invest in real estate. In just three years, he has raised nearly $1M for multifamily deals and invested in 800-plus apartment units. Jens has a talent for assessing risk and assembling the right team to renovate and operate multifamily properties, and he has utilized a variety of strategies to build an impressive portfolio—while working a full-time job in IT.
Today, Jens joins me to explain how his lack of faith in the stock market led him to develop an entrepreneurial mindset and become a multifamily investor. He walks us through his journey and each of the strategies he utilized, from buying a fourplex on his own to a seller financing deal to raising capital for syndications. Listen in for Jens’ insight around the benefits of getting started through passive investing and learn his unique approach to raising money by way of a joint venture!
Key Takeaways Jens’ path to multifamily investing
- Successful career in IT but afraid to count on 401(k)
- Build passive income streams to secure financial future
How to develop an entrepreneurial mindset
- Realize idea of job security = myth
- Get educated and grow risk muscle
Jens’ first real estate deal
- Bought fourplex in Albuquerque, NM with own money
- Rehab units + new roof for cashflow of $800/month
How everyone wins in a seller financing deal
- Lower taxes and interest rate benefits seller
- Small down payment + monthly payments
Jens’ 38-unit joint venture deal
- Negotiated price down from $1.6M to $1.2M
- Sellers came in undercapitalized, losing money
- Jens halfway through $10K/door renovation
The roles and responsibilities of Jens’ team
- Jens does underwriting, due diligence and budget
- Partner focuses on renovations and management
How to shift into the role of raising money for deals
- Position self as investor and nurture relationships
- Present deals in logical way and discuss benefits
The advantages of investing in a multifamily syndication
- Much easier to scale + more reliable return
- Opportunity to expand influence, network
Jens’ advice for aspiring real estate investors
- Consider passive investments in bigger deals
- Be careful about self-managing properties
How to prepare for the role of raising capital for multifamily
- Surround self with peer group just ahead of you
- Use team approach to raise money for syndicator
Connect with Jens Open Doors Capital
Email jens@opendoorscapital.com
Resources Deal Maker Live
Michael’s Mentoring Program
Invest with Michael
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Apartment Investor Network Facebook Group
Michael on Instagram
Three years ago, I met the legend Robert Kiyosaki on The Real Estate Guys Summit at Sea. Of course, I knew him from his bestselling books about investing and personal finance, so I was taken aback by the spiritual language he used in his presentation. When I asked him about it, Robert said, “Of course. I’m a Marine.” Why does Robert credit the military for his spiritual discipline? And how has spirituality become a priority in his life and work?
Robert Kiyosaki is an entrepreneur, investor, educator and bestselling author of the #1 finance book of all time, Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not. His perspectives around money and investing run contrary to conventional wisdom, earning Robert a reputation for straight talk as a passionate advocate for financial education. A prolific writer, Robert’s latest release is called FAKE: Fake Money, Fake Teachers, Fake Assets: How Lies Are Making the Poor and Middle Class Poorer.
Today, Robert joins me to explain how he learned spiritual discipline in the Marine Corps and contrast that with the business world where the only mission seems to be money. He discusses the importance of spirituality in his life and work, describing his calling to teach financial literacy where the corrupt education system has failed. Listen in for insight around the themes in Robert’s new book and learn to identify fake assets, fake educators and fake currency!
Key Takeaways How Robert learned spiritual discipline in the US Marine Corps
- Focus on mission to bring fellow man home
- Business world only mission to make money
- Boundary of life + death gets in touch with God
Why spirituality is important to Robert
- Calling to do what God wants done
- Take on corrupt systems (e.g.: education)
The themes included in Robert’s new book Fake
- Fake assets (i.e.: 401(k), mutual funds)
- Fake teachers, lack of financial literacy
- Fake money (fiat currency vs. gold)
Connect with Robert Rich Dad
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom by Robert T. Kiyosaki
FAKE: Fake Money, Fake Teachers, Fake Assets: How Lies Are Making the Poor and Middle Class Poorer by Robert T. Kiyosaki
Resources Deal Maker Live
The Real Estate Guys
Michael’s Mentoring Program
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Apartment Investor Network Facebook Group
Michael on Instagram
The real world is not HGTV. If you are a high-earner looking to get into the real estate game, it is important to understand just how much work is involved in being an active investor. There is a lot of competition in the space, and good deals are hard to find. Add to that the complexities of managing a rental portfolio, for example, and the headache may seem like more than it’s worth. But why work harder than necessary to make less than you could? You can take advantage of all the benefits of commercial real estate investing as a passive investor, letting an expert handle the minutiae while you reap the rewards.
Paul Moore is the Founder and Managing Director at Wellings Capital, a commercial real estate investment firm that focuses on self-storage, mobile home parks, and multifamily property. Paul has 18 years of experience in real estate: He has flipped 50-plus homes and 25 high-end waterfront lots, appeared on HGTB’s House Hunters, rehabbed and managed rental properties, built new homes, and developed a subdivision. Paul is also the author of The Perfect Investment: Create Enduring Wealth from the Historic Shift to Multifamily Housing and cohost of the wealth-building podcast How to Lose Money.
Today, Paul joins me to discuss the advantages of commercial real estate over stocks, bonds and mutual funds. He shares the challenges of being an active investor, explaining why high-earning professionals might be happier as passive investors in commercial assets like apartment buildings, self-storage facilities, or mobile home parks. Paul also offers insight around the commercial value formula, describing how operators can force appreciation with simple strategies to increase a property’s income or compress its cap rate. Listen in to understand the extraordinary tax advantages of multifamily real estate and learn what makes commercial investing an attractive option for high-net-worth individuals looking for a consistent return and minimal risk profile.
Key Takeaways The pros and cons of stocks, bonds + mutual funds
- Long track record of growth, great liquidity
- Highly unpredictable
The pros and cons of commercial real estate
- Not at all liquid
- Stability, predictability for long term
The challenges of being an active investor
- Hard to find good deals + be profitable
- Time consuming to run large SFH portfolio
The commercial value formula
- Value = net operating income/cap rate
- Increase income or compress cap rate to force appreciation
Simple things operators can do to increase income
- Rental space for trailers, RVs + boats in mobile home park
- Professional property management in apartment building
Simple things operators can do to compress the cap rate
- Franchise group of self-storage facilities, find right buyer
- Multifamily value-add from C+ to B and refinance
The tax advantages of commercial real estate investing
- Accelerate depreciation via cost segregation study
- Bonus depreciation (up to $1M) + QREP write-offs
Wellings Capital’s strategy moving forward
- Expand to self-storage, mobile home parks via partnerships
- Wellings brings equity and partner-operator finds deal
Connect with Paul Wellings Capital
How to Lose Money Podcast
Paul on BiggerPockets
The Perfect Investment: Create Enduring Wealth from the Historic Shift to Multifamily Housing by Paul Moore
Resources Deal Maker Live
The Real Estate Guys
Paul Moore on ABI EP058
10 AMAZING Tax Benefits for Real Estate Investors
Michael on HTLM EP019
Michael on HTLM EP132
Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes by Tom Wheelwright
Nighthawk Equity
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Apartment Investor Network Facebook Group
Michael on Instagram
Are you using your IRA to invest in a multifamily syndication? Then brace yourself for an unexpected tax bill when the asset sells. If, on the other hand, you’d prefer not to owe the IRS for Unrelated Business Income Tax (or UBIT), it’s time to consider a Qualified Retirement Plan (or QRP) that gives you more control over your money and makes it much easier to invest in real estate!
Damion Lupo is a real estate investor, serial entrepreneur, and high-profile financial consultant. He founded Total Control Financial in 2010 to help people achieve financial freedom. He is committed disrupting Wall Street and empowering Main Street with the tools and teachings of financial transformation. In the last 25 years, Damion has launched and owned 40-plus companies, including a venture capital firm, an insurance agency, and more than a dozen real estate investment and development operations. He is also the author of QRP Book: How to Get Checkbook Control of Your 401(k) & IRA Money Now.
Today, Damion joins me to explain why the current retirement system is broken and discuss the problem with using your IRA to invest in multifamily real estate. He walks us through the fundamentals of UBIT, describing how you can be blindsided by a BIG tax bill when an asset sells. Damion also offers insight around the alternative to the IRA that is exempt from UBIT, the QRP. Listen in to understand the multiple benefits of the QRP as a retirement vehicle—and learn how to regain control of your retirement savings AND maximize your profits as a multifamily investor.
Key Takeaways Why the retirement system is broken
- Hand $ to someone else + hope for best
- Better to create own wealth
The shortcomings of the 401(k)
- No control over money, high fees
- Limits around what invest in
The problems with the IRA
- Hit with taxes if invest in syndications
- Pay unlimited fees to custodians
The fundamentals of UBIT
- 35% tax on profit from debt
- Hit with UBIT when asset sells
How to avoid UBIT
- Move asset into QRP (in-kind rollover)
The benefits of the QRP
- Ability to control own money
- Higher contribution limits (up to $50K)
- Borrow up to $50K to invest in self
- No custodian = much lower fees
- No third party for paperwork
Short- vs. long-term real estate investments
- Short-term investments need tax shelter like QRP
- Don’t put long-term investments in retirement account
When it’s worth it to get a QRP
- Cost between $1500—$6K (depends on # of employees, companies)
- Makes sense even for $50K investment
Connect with Damion Damion’s Website
QRP Book: How to Get Checkbook Control of Your 401(k) & IRA Money Now by Damion S. Lupo
- Text ‘doors’ to 72000
- Visit http://www.themichaelblank.com/qrp
Resources The Real Estate Guys
Deal Maker Live
Hal Elrod
Damion Lupo on ABI EP079
Tom Wheelwright
Michael’s Mentoring Program
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Apartment Investor Network Facebook Group
Michael on Instagram
So, you want to achieve financial freedom with real estate investing, but you’re a busy person with a demanding job and a lot of responsibility. You don’t have time to learn the ins and outs of putting together an advisory team, finding a good deal, or making decisions about the financing and management of a property. The fact is, you can STILL enjoy the benefits of real estate investing by becoming a passive investor in a multifamily syndication!
Doug Marshall is the founder and president of Marshall Commercial Funding, a firm dedicated to helping clients get the best possible financing for their rental properties. Doug has 36 years of experience as a mortgage broker, and he received his CCIM designation in 1999. His journey into passive investing began 10 years ago, and to date, he has invested in 11 properties—8 of which were apartment buildings. Doug is also the author of Mastering the Art of Commercial Real Estate Investing: How to Build Wealth & Grow Passive Income from Your Rental Properties.
Today, Doug joins me to discuss how he achieved financial freedom through passive investing in commercial real estate. He describes the difference between an active and passive investor, sharing his goals as a passive investor and the characteristics of an ideal candidate for passive investing. Doug also offers insight around his preference for multifamily over other asset classes and explains how to calculate the amount you need to invest for a particular cash-on-cash return. Listen in to understand the incredible tax benefits of real estate investing and get Doug’s take on the #1 thing passive investors should consider before handing their money over to a syndicator.
Key Takeaways Doug’s path to financial freedom with passive investing
- 20 years living paycheck to paycheck
- Went into business for self as mortgage broker (3X income)
- Partnered with client as passive investor
The difference between active and passive investing
- Active investors make ALL decisions (team, management)
- Passive investors decide WHO to trust to achieve returns
Why Doug prefers multifamily over other asset classes
- Vacancies have less impact on returns
- Low vacancy rates during recession (5-10%)
The advantages of multifamily real estate investing
- Deferment of capital gains taxes
- Generates cashflow
- Opportunity to buy below market
- Depreciation limits income taxes
- Leverage properties to amplify return
Doug’s goals as a passive investor in multifamily
- No hassle of day-to-day decision-making
- Cashflow + upside appreciation
- Financial freedom (family trip to Scotland)
The ideal candidate for passive real estate investing
- Made good money over lifetime
- Desire to generate passive income
How to calculate the right amount to invest for retirement
- Living expenses minus social security benefits
- Cover difference with cash-on-cash return
The cash-on-cash return Doug looks for in a property
- 4-5% from start with value-add opportunity
- Up to 8% once improvements made
The most important considerations for passive investors
- WHO to invest with (vet syndicator for integrity)
- WHAT asset class to invest in
Connect with Doug Marshall Commercial Funding
Mastering the Art of Commercial Real Estate Investing: How to Successfully Build Wealth & Grow Passive Income from Your Rental Properties by Doug Marshall
Resources Deal Maker Live
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Apartment Investor Network Facebook Group
Michael on Instagram
The vast majority of real estate investors were blindsided by the crash in 2008. And with many economists warning that we’re headed toward another downturn, it is prudent to take off our rose-colored glasses and move forward with an eye to the broader economic picture. It is crucial for multifamily investors to study the markets, identify trends and consider the economy’s impact on our investments—and the people who rent from us.
Robert Helms is the founder and host of Real Estate Guys Radio, a media platform dedicated to helping investors stay focused, motivated and informed. He has a wealth of experience teaching Landlord Boot Camp for newbie residential investors as well as college-level real estate courses. Robert also spent 18 years working in a real estate brokerage where he became a top producer and refined his skills in marketing, negotiating and relationship management. Now, Robert is a professional real estate investor and developer with a portfolio that spans eight states and five countries.
Today, Robert joins me to share a high-level overview of The Real Estate Guys’ recent Summit at Sea. He explains why it’s critical for investors to keep an eye on the economy and offers insight into what market trends we should be looking out for. Robert also discusses what he learned from the crash in 2008 and outlines his current concerns around sources of capital for multifamily investors. Listen in for a summary of the key takeaways from the Summit at Sea and find out how you can learn more from the expert faculty through The Future of Wealth and Money video series.
Key Takeaways An overview of The Real Estate Guys’ Summit at Sea
- Focus beyond real estate to broader scope economics
- Bring together smart people to interact without agenda
Why it’s crucial for investors to keep an eye on the economy
- Study markets to identify opportunity, trends
- Examine how tenants might be affected
Robert’s insight on the current economic climate
- Anticipate general slow down
- Pay attention to interest rates, demographic shifts
What Robert learned from the crash in 2008
- Surround self with people who understand economy
- Investments float in sea of larger economic picture
The aspects of the economy investors should watch
- Jobs, durability of income + housing demand
- Major shifts in markets, technology, etc.
Robert’s insight around interest rates
- Not expecting huge increase in interest rates
- Concerned about sources of capital (government agencies)
The Real Estate Guys’ mission
- Put education to work via effective action
- Create community + collapse time frames
What you can learn from The Future of Money and Wealth
- Sense of what future looks like around money
- Continue to acquire wealth in uncertain age
Robert’s top advice for real estate investors
- Recognize larger economic realities
- Be aware of other investing opportunities
Connect with Robert The Real Estate Guys
The Real Estate Guys’ Events
Future of Money and Wealth Video
Resources The Real Estate Guys’ Summit at Sea
2019 Summit at Sea Faculty
Peter Schiff
Dr. Doug Duncan’s Market Predictions
Crash Proof: How to Profit from the Coming Economic Collapse by Peter Schiff and John Downes
The Creature from Jekyll Island: A Second Look at the Federal Reserve by G. Edward Griffin
The Real Estate Guys’ Goal-Setting Retreat
Hal Elrod
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
Joe Quirk at The Seasteading Institute
Tom Hopkins
The Real Crash: America’s Coming Bankruptcy—How to Save Yourself and Your Country by Peter Schiff
Peak Prosperity
Deal Maker Live
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Apartment Investor Network Facebook Group
Michael on Instagram
Real estate investors have a tendency to look down on paper assets, arguing that the stock market is an ill-advised place to keep your money. We talk about the volatility of stocks and avoid paper assets like the plague, assuming that there is no way to mitigate the associated risk. But what if investing in the stock market is not so different after all? What if we could apply real estate investing strategies to stocks and generate additional cashflow? What if we could leverage paper assets to complement a multifamily portfolio and even hedge against a decline in the real estate market?
Andy Tanner is the founder of The Cash Flow Academy, a platform designed to empower and inspire investors and entrepreneurs to generate their own income. An expert in the realm of paper assets, Andy has served as a Rich Dad Advisor for the last 11 years, and he is passionate about teaching in a way that is fun, simple and real. He is also the author of two must-have books, Stock Market Cash Flow and 401(k)aos.
Today, Andy joins me to share the parallels between real estate investing and the stock market, explaining how to achieve cashflow in stocks via puts and calls. He discusses the best way to manage risk as an investor on the exchange and describes how the rich are able to ‘predict the future’ and make decisions that make money. Andy also offers his predictions for the short- and long-term future of the stock market and walks us through the benefits of investing in buy-and-hold real estate. Listen in for Andy’s insight on leveraging paper assets to hedge against a decline in the real estate market and learn to apply multifamily investing strategies to stocks and generate even more passive income!
Key Takeaways Why real estate investors should appreciate paper assets
- ‘It’s not the asset class, it’s whether you’re educated’
- Take real estate approach and apply to stock market
The parallels between the stock market and real estate
- Fundamental analysis (cap rate = P/E ratio)
- Look for undervalued property or stock
How to achieve cashflow through the stock market
- Get paid to promise to buy if price declines (puts/calls)
The best way to manage risk in the stock market
- Purchase contracts (insurance) that lock in ability to sell high
How to hedge against a decline in the real estate market
- Buy puts on IYR (real estate fund) for pennies on dollar
How the rich go about predicting the future
- Policy + demographics (i.e.: Medicare + baby boomers)
- Pay attention to balance sheet and identify trends
Andy’s predictions around the future of the stock market
- Okay for little while longer but Fed ‘out of bullets’
- Pay more for stock than ever before from earnings standpoint
Why Andy recommends investing in real estate
- 100% chance value of US dollar will continue to decline
- Borrow, trade, trade back + return to short USD
- Make money with natural inflation as rents go up
The multiple profit centers available in real estate
- Cashflow and tax advantages
- Appreciation of property + rent (via inflation)
- Principle paid down, refi for stronger short position
Connect with Andy The Cashflow Academy
Resources Stock Market Cash Flow: Four Pillars of Investing for Thriving in Today’s Markets by Andy Tanner
401(k)aos by Andy Tanner
401(k)aos Free Download
Warren Buffet on Kraft Heinz
US Real Estate ETF (IYR)
S&P/Case-Shiller Price Index
Cash Covered Puts on YouTube
Michael’s Mentoring Program
Deal Maker Live
Invest with Michael
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael’s Website
Michael on Facebook
Apartment Investor Network Facebook Group
Michael on Instagram
Raising capital is crucial in making a real estate syndication happen. But how do you connect with high-net-worth individuals who are interested in multifamily? And then, how do you build trust with those prospective investors? One strategy is to create quality content and design a platform around those resources, attracting passive investors by giving them access to the information they need.
Annie Dickerson is the Cofounder and Managing Partner at Goodegg Investments, a firm dedicated to helping clients achieve financial freedom through passive investing in multifamily real estate. Goodegg has built a reputation for helping its investors gain access to great deals, connecting them with cashflowing real estate syndications. Annie’s strength lies in content creation, and the Goodegg platform features educational resources and a course for new investors, Passive Real Estate Investor Academy.
Today, Annie joins me to describe the freedom of being a full-time multifamily investor, explaining how she overcame her fears and gained the confidence to quit her 9-to-5. She discusses how she came to realize her strengths in raising capital and educating passive investors and offers insight into how she met her cofounder and established a partnership with Goodegg. Listen in to understand why Annie chose to focus on content creation and learn how developing educational resources has helped her connect with potential investors and accelerate her business!
Key Takeaways Annie’s transition from full-time employee to full-time investor
- Miserable at job but terrified to quit
- Created chart (dangers, opportunities, strengths)
How Annie overcame her fear to become an entrepreneur
- Act of writing down and organizing thoughts
- Address + game plan for each ‘danger’
How Annie’s life is different now that she’s investing full-time
- Freedom to pursue own mission + vision
- Wake up every day and add value
What gave Annie the confidence to quit her job
- Experience with house hacking and rentals on side
- Completed Ultimate Guide program + potential deal
How Annie found her strength in raising capital
- Agreed to raise $200K for partner met through networking
- Fell in love with educating passive investors about deals
How Annie came to start Goodegg Investments with a partner
- Connected with fellow working mom at conferences
- Julie likes phone calls + meetings, Annie at content creation
Why Annie focused on building an educational platform
- Strategy to reach target audience
- Build trust with potential investors
How Annie’s content has served to accelerate her business
- Afford investors independence to research on own
- Address questions shared by many new investors
What’s next for Annie and Goodegg Investments
- Just launched Passive Investor Academy course
- Writing book geared to passive investors
- Looking into syndicating own deal next
Annie’s advice for aspiring multifamily investors
- Get crystal clear on target audience, create avatar
- Attract more people to platform with unique POV
Connect with Annie Goodegg Investments
Email annie@goodegginvestments.com
Resources BiggerPockets
Annie’s Passive Investing Course
Paul Nagaoka on ABI EP153
Michael’s Course
Deal Maker Live
Invest with Michael
Michael’s Mentoring Program
Partner with Michael
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael on Facebook
Apartment Investor Network Facebook Group
Michael on Instagram
Too many of us get to the end of our lives and ask, “Why didn’t I follow my passion?” But what if you didn’t wait? What if you asked yourself the tough questions NOW? What if you put your energy and resources into the thing that really makes you come alive? What if you took a now-or-never approach to pursuing an intentional life?
Paul Nagaoka is Managing Partner at Syndicate, a commercial and multifamily real estate investing firm based in Kansas City. He draws on his background as a mortgage broker, realtor and investor to identify high-yield investment opportunities and manage risk through careful analysis and creative problem-solving. Prior to Syndicate, Paul ran his own solo real estate investing company, growing the team to 30 employees and subs with ownership in 350-plus units.
Today, Paul joins me to share his approach to living an intentional life. He discusses his hiatus from real estate, explaining how the passive income from investments allowed Paul to pursue an acting career and become a celebrity in Southeast Asia! He offers insight into why he needed a break from real estate and describes how he is running his business differently now. Paul also covers the value in developing an abundance mindset and finding opportunities that others miss. Listen in for Paul’s secrets to finding off-market properties—and get his advice on getting off the sidelines and engaging in an intentional life.
Key Takeaways Paul’s hiatus from real estate
- Planned 6-month trip to Asia with family
- Became popular actor, celebrity
Why Paul needed a break from real estate
- 14 years in business, grew team of 35
- Too much time on things he didn’t like
How Paul is running his business differently now
- Focus on strengths (relationships, marketing)
- Rely on partners to handle other duties
Paul’s insight around taking on partners
- Must bring on others to truly scale
- Okay with giving up equity to grow
Paul’s take on living an intentional life
- Develop growth + abundance mindset
- Put energy where passion + talents meet
What inspires people to act on their passions
- Big enough WHY (now or never)
- Make decision to do what’s in heart
What Paul is excited about moving forward
- Goal of $35M in 2019
- Find opportunities others miss
Examples of where Paul sees opportunity
- Identify places to reduce expenses
- Negotiate seller financing deals
How Paul finds off-market deals
- Cold call off-market properties 3-4 hours/day
- Access to CoStar through brokers on team
How to find off-market deals without a broker
- Choose area, tag properties on Google Maps
- Use property tax records to pull contact info
- Drive to location, ask to talk to owner
Paul’s advice for aspiring multifamily investors
- Invest in knowledge + ‘get your jersey dirty’
- Analyze 10 deals/week, make 3 offers/month
Connect with Paul Syndicate
How to Invest in Real Estate
Paul on YouTube
Resources Deal Maker Live
Andrew Carnegie’s Concept of Vertical Integration
CoStar
Clemons Real Estate
Google Maps
ListSource
Cory Boatright & Sean Terry on ABI EP151
Invest with Michael
Michael’s Mentoring Program
Partner with Michael
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael on Facebook
Apartment Investor Network Facebook Group
Michael on Instagram
In a perfect world, honest real estate investors would never have to deal with frivolous lawsuits. But we live in the real world where being sued is a very real possibility. So, how do you protect yourself so that an angry tenant cannot get to your personal assets? What kinds of insurance do you need to protect your real estate assets from an ‘outside attack’? And where should you set up a holding company to take advantage of the strongest possible asset protection laws?
Garrett Sutton is a corporate attorney, asset protection expert and bestselling author with 30-plus years of experience supporting entrepreneurs and real estate investors. He serves as Rich Dad Advisor and asset protection attorney for Robert Kiyosaki and founder of Corporate Direct, a firm dedicated to supporting clients in protecting their assets, maintaining their privacy and advancing their financial goals. He has sold more than 850,000 books, including the invaluable Loopholes of Real Estate and Start Your Own Corporation.
Today, Garrett joins me to explain the ins and outs of asset protection. He discusses how the LLC protects your personal assets, why it’s important to set up an LLC from Day One, and how insurance serves as your first line of defense. Garrett offers insight around entity structure, speaking to the value of setting up a Wyoming holding company with charging order protection. Listen in to understand the concept of equity stripping to further protect your real estate assets—and learn to avoid personal liability by following the four corporate formalities!
Key Takeaways Why it’s important to set up an LLC from Day One
- Too late once sued
- Plaintiff can reach all personal assets
How the LLC protects you as an individual
- Courts respect lease in name of LLC
- Attorney will work to get name off suit
The role of insurance in providing asset protection
- Serves as first line of defense
- LLC provides second line of defense
Why Garrett recommends an umbrella policy
- Extra coverage for home + auto
- Protects against outside attack (i.e.: car wreck victim)
How to set up the best possible entity structure
- LLC in state property located
- Several LLCs under Wyoming holding company
- WY = strongest asset protection laws, privacy
The value of a charging order protection
- Doesn’t allow forced sale of assets
- Victim must wait for distributions
The 4 corporate formalities
- Annual meeting w/ minutes
- Registered agent in state
- Separate tax return
- Separate bank account
The consequences of failing to follow corporate formalities
- Personally liable in any suit
- ‘Veil pierced’ 50% of time
How Corporate Direct can retroactively fix compliance issues
- Operating agreement, minutes + membership certificates
- Transfer ownership from individual to WY LLC
The concept of equity stripping
- Leverage debt as form of asset protection
- WY LLC provides credit, receives first deed of trust
How to notify your insurance company re: title transfer
- Use grant deed, inform of transfer to LLC
- Add LLC as additionally insured (avoid higher premium)
Connect with Garrett Corporate Direct
Call (800) 600-1760
Resources Loopholes of Real Estate by Garrett Sutton
Start Your Own Corporation by Garrett Sutton
Books by Garrett Sutton
Rich Dad
Michael’s Mentoring Program
Partner with Michael
Invest with Michael
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael on Facebook
Apartment Investor Network Facebook Group
Michael on Instagram
In a climate where good deals are hard to find, off-market opportunities are key for multifamily investors. But how do you find property owners who might be willing to sell? And once you’ve tracked them down, how do you leverage marketing strategies to get their attention—and inspire them to pick up the phone and call YOU?
Cory Boatright and Sean Terry are experienced single-family wholesalers in the Oklahoma City and Phoenix markets, respectively. Together, the pair stumbled into a multifamily flip that proved challenging. And though they would never do it again, Cory and Sean earned a multiple six-figure profit on the deal. Now, they are pursuing multifamily buy-and-hold as a strategy through Investing Capital Group, a firm focused on finding off-market properties for its capital partners.
Today, Cory and Sean join me to explain how they got involved in a multifamily wholesale deal, discussing what they did right as well as the extreme adversity they faced in route to closing. They share their process for finding off-market deals, offering insight around the resources available for pulling lists of potential sellers and collecting their contact information. Listen in for advice on handling an influx of incoming calls and learn how Cory and Sean leverage unique marketing strategies to earn a 100% direct mail open rate!
Key Takeaways Cory & Sean’s real estate resumes
- Cory = wholesaler in OKC since 2013
- Sean = 15 years as wholesaler in Phoenix
How Cory & Sean stumbled into a multifamily deal
- Lead on property in AZ, tracked down owner
- Property under contract direct to seller
What Cory & Sean did right in their multifamily flip
- Built in extra time (60-day due diligence)
- Built in extension for $50K
Cory & Sean’s approach to finding a buyer
- Use ListSource to find potential buyers
- Send marketing packet via FedEx (delivery notification)
The challenges Cory & Sean faced in route to closing
- Buyer stalled to postpone nonrefundable date
- Ramifications of failing to disclose reduction in price
Why the multifamily flip was successful despite the challenges
- Multiple six-figure profit
- Learned do’s and don’ts
Cory & Sean’s process for finding off-market deals
- Pull data from ListSource to find sellers
- Use Skip Trace Lists for contact info (20¢/record)
- Cold call, direct mail and target on Facebook
How to handle the influx of incoming calls
- Hire answering service like PATLive
- Hire in-house or local staff (build relationships)
Why you can spend more on direct mail for multifamily
- Fewer leads in particular area
- Critical to get attention of decision-maker
- FedEx with signature request = 100% open rate
Connect with Cory & Sean Investing Capital Group
Real Estate Investing Profits Podcast
Resources ListSource
Skip Trace Lists
PATLive
CoStar
Dan Kennedy
John Carlton
Michael’s Mentoring Program
Partner with Michael
Invest with Michael
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Podcast Show Notes
Review the Podcast on iTunes
Michael on Facebook
Apartment Investor Network Facebook Group
Michael on Instagram
Imagine having the financial security to do what you love, to pursue work that brings you joy—even if that work happens to be in an unpredictable industry. Mark Hentemann began his career in entertainment as a starving artist in New York City, often wondering how he would cover rent. Now, he leverages the cashflow from real estate investments to spend his days coming up with jokes in the writer’s room, without the stress of financial instability should his show get cancelled.
Mark Hentemann is a writer, voice actor and producer, working on shows like Family Guy, Bordertown and The Late Show with David Letterman. He is a two-time Primetime Emmy award-nominee for Outstanding Animated Program and Outstanding Comedy Series. In addition, Mark is an avid real estate investor, cofounding the multifamily investment company Quantum Capital, a firm focused on value-add assets in centrally located, growing neighborhoods of major metropolitan areas. To date, he has a portfolio of 185 units and earns $1M in passive income.
Today, Mark joins me to explain how a desire for financial security led him to invest in a duplex soon after his move to LA. He describes the moment when he finally understood the power of real estate and speaks to the advantages of house hacking as strategy to get started. Mark also shares his belief in economies of scale, discussing how he finds deals that make sense in Los Angeles. Listen in to understand why Mark is getting into syndication and learn how you can follow in his footsteps, leveraging multifamily real estate investment to pursue the work you love!
Key Takeaways How Mark got involved in real estate
- Starving artist in NYC, needed financial security
- Move to LA, invest Family Guy income in duplex
Mark’s first real estate deal
- Duplex ‘rough around edges’ in improving area
- Listed at $380, won bidding war for $435K
- Sold in 2005 after remodel for $1.27M
When Mark realized the power of real estate
- Refi on duplex reduced interest from 7½% to 4¾%
- Rent covered mortgage, insurance, taxes + utilities
The advantages of house hacking
- Provides hedge against economic volatility
- Add value to force appreciation
Mark’s belief in economies of scale
- Realized benefit of larger multifamily properties
- Found and purchased 6- and 14-unit buildings
How real estate impacts Mark’s quality of life
- Takes financial strain out of equation
- Write for fun (without stress of economic instability)
Mark’s perfect day
- Write jokes and laugh during day
- Network and look for properties
How Mark finds deals in the LA market
- Chronic undersupply of B-class multifamily
- Look for 40-year-old buildings in up-and-coming areas
- Focus on low cost per ft2 (price comparable to land)
Mark’s experience with syndication
- Motivated seller with 3 buildings ($10M deal)
- Committed, then scrambled to find investors
Mark’s advice to aspiring multifamily investors
- Take advantage of house hacking
- Find 2- to 4-unit value-add in area on rise
Connect with Mark Email markhentemann@me.com
Quantum Capital
Resources Keith Weinhold on ABI EP034
Tyler Sheff on ABI EP072
Michael’s Mentoring Program
Invest with Michael
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Podcast Show Notes
Review the Podcast on iTunes
“I want to see the world. I want to experience life because I almost lost mine.”
What if something happened and you could no longer work? How would you and your family survive? AJ Osborne found himself in that precarious position 18 months ago, but because he had sustainable passive income from real estate investing, he was able to focus on healing and continue to support his family as he recovered. Real estate saved his financial life.
AJ had been leading a busy life, running his state’s largest brokerage firm as well as a real estate company when he fell ill with a disease called Guillain-Barré. It left AJ completely paralyzed and comatose, and he spent several months on life support. Since then, he has had to relearn how to walk, use his arms and communicate. Fortunately, his 1M ft2 self-storage portfolio allowed AJ to focus on healing while his passive income continued to grow. The experience inspired him to create Cash Flow 2 Freedom, a platform where AJ teaches others how to generate cashflow and achieve financial freedom.
Today, AJ joins me to share the story of his battle with Guillon-Barré, explaining how the experience changed his priorities and how the passive income from his real estate portfolio sustained his family through the ordeal. He discusses what motivated him to pursue real estate investing in the first place and shares his approach to buying and managing self-storage facilities. Listen in for AJ’s insight on the difference between being rich and wealthy—and learn how to leverage real estate investing to achieve the kind of financial freedom that can save your life!
Key Takeaways AJ’s devastating health crisis
- Paralyzed and comatose, months on life support
- Guillain-Barré syndrome rendered helpless
How the experience changed AJ
- Changes outlook on what’s important
- Reprioritize life (family moves to top)
What became most important to AJ
- Time with children
- Basic functions (e.g.: walk on own)
How AJ’s real estate portfolio facilitated his recovery
- Bought family time and freedom
- Paid bills while he focused on getting better
What might have happened without real estate
- Disability income was 25% of previous salary
- Would have had to downsize, wife take job
How AJ got into commercial real estate
- Frustrated by fluctuation in consulting business
- Needed strategy to compound returns
AJ’s distinction between rich and wealthy
- Wealthy own assets and revenue coming in
- Rich have high income but owned by source
AJ’s approach to investing in self-storage
- Business rather than real estate asset
- Turn around by dialing up value and income
How AJ turned around a state-owned facility
- Bought at auction for $3.8M
- Eliminated 30% of tenants by doubling price
- Sold products, focused on customer service
- Doubled income in 6 months, worth $9M
How AJ manages his self-storage facilities
- Hire and train rock star management team
- Built out policies and procedures over time
The differences among small, medium and large facilities
- Expenses similar regardless of size
- Sweet spot between 60K and 150K ft2
What inspired AJ to start Cash Flow 2 Freedom
- Real estate saved family’s financial life
- Help others gain freedom with passive income
AJ’s advice for aspiring real estate investors
- Learn from mistakes
- Get to state of financial freedom on own
Connect with AJ Cash Flow 2 Freedom
Resources Michael’s Mentoring Program
Invest with Michael
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Podcast Show Notes
Review the Podcast on iTunes
As a multifamily syndicator, one of your most important responsibilities lies in building long-term trust with investors. And when you are dealing with a handful of high-net-worth individuals, it is fairly easy to keep track of who has committed to a deal, signed the appropriate documents and wired their money. As you scale your real estate business, however, it becomes increasingly challenging to communicate consistently and manage larger and larger numbers of investors. But it can be done by automating your workflow process.
Josiah Mann is the founder and CEO of Investor Deal Room, a modern, white-label investor management platform that supports real estate syndicators in raising capital and streamlining their back office through automation. Businesses using the Investor Deal Room software have raised over $40M in private capital and represent nearly $500M in assets under management.
Today, Josiah joins me to walk us through the process of onboarding multifamily investors. He explains how to build your database by way of content marketing and create a lead magnet that addresses investor pain points. Josiah describes the step-by-step process of tracking leads through closing and shares best practices for communicating with investors via quarterly reports and individual statements. Listen in to understand the value of automating investor relations as you scale your business and learn how Investor Deal Room can help you build long-term trust with investors!
Key Takeaways Josiah’s insight on marketing to investors
- Contact form on website + email newsletter
- Content marketing w/ CTA to build database
How to design free resources for investors
- Think from their perspective
- Poll to find out pain points
The process of tracking investors through closing
- Investor marketing packet (e.g.: webinar, email)
- Create spreadsheet to track leads, commitments
- Subscription documents + wiring instructions
- Send confirmation letter once money in escrow
The best practices for syndicators AFTER closing
- Processes in place for consistent communication
- Quarterly reports with property updates
- Statements for individual investors
How Investor Deal Room automates investor relations
- Investor management solution to update basic info
- Raise capital through portal for each new offering
- One-click branded welcome letters + statements
How Investor Deal Room addresses joint venture partners
- Dashboard for money raiser to manage their investors
- Cobranding on site (investor sees both logos)
Connect with Josiah Investor Deal Room
Resources MailChimp
Investment Tracker Spreadsheet
DocuSign
Michael’s Mentoring Program
Invest with Michael
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Podcast Show Notes
Review the Podcast on iTunes
As a financial planner, Jason Harris helped clients prepare for retirement. At the same time, he was building a real estate portfolio to replace his W-2 income. And last Thursday, he retired from financial planning (in his early 30’s!) to pursue investing full-time. What did that journey look like? What strategies did Jason and his wife, Carrie, use to generate passive income with multifamily?
Jason and Carrie started investing in real estate in 2010. Nine years later, they have a portfolio of 75-plus units and the couple is building a consulting business known as Creative Gains. With his background in financial planning, Jason offers clients a unique perspective on diversifying their portfolio with real estate. Jason and Carrie also run a successful property management company.
Today, Jason joins me to discuss his last day of work as a financial planner and explain how his friends and family reacted to his decision to pursue real estate full-time. Jason walks us through his journey to financial independence, from the FHA loan he used to buy his first fourplex to the creative strategies he and his wife leveraged to build their portfolio. Listen in for Jason’s unique insight on making real estate investing a part of your retirement plan and get his advice around making the leap from a W-2 job to full-time investor!
Key Takeaways Jason’s last day of work as a financial planner
- Surreal, scary and exciting
- Confusion around what to do with time
What’s next for Jason
- Sharing ideas with others (consulting, book)
- Maintain property management company
How Jason’s friends and family reacted to his transition
- Mixed reactions (e.g.: ‘too young to leave good career’)
- Few colleagues understand assets outside securities
Jason’s journey to financial freedom
- Started exploring real estate in 2010
- Bought fourplex with FHA loan
- Cashflow for down payment on next property
Why Jason and his wife chose not to expand their lifestyle
- Dad laid off twice in teen years
- ‘Sacrifice today for better tomorrow’
The fundamentals of FHA loans
- Must own/occupy property to get financing
- 4% down to live there, 28% otherwise
The creative strategies Jason used to build his portfolio
- Wife got license, use commission as down payment
- Hard money loan for value-add opportunity (BRRRR)
- Partner on larger deals
- Seller financing
- Portfolio loans
Jason’s advice for transitioning from W-2 to full-time investor
- Know your numbers (passive income net of all expenses)
- Consider ability to qualify for loans without W-2 income
How Jason might have accelerated his timeline
- Think bigger (stayed within 20-unit range)
- Restricted from syndication by license as financial planner
Jason’s insights for passive investors
- Diversify with ROTH IRA, 401(k) + real estate portfolio
- Considerable tax benefits associated with multifamily
Connect with Jason Creative Gains
Email creativegainsllc@gmail.com
Call (801) 362-0784
Resources Keith Weinhold on ABI EP034
Tyler Sheff on ABI EP072
Invest with Michael
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Podcast Show Notes
Review the Podcast on iTunes
As multifamily syndicators, we are focused on finding quality deals and raising money. But securing the financing you need can make or break a real estate deal and reaching out to your lender early in the process will save you a great deal of time—and keep you on track to close as planned. So, what do you need to know about multifamily financing?
John Brickson serves as Director at Old Capital, a Dallas firm that specializes in arranging financing for commercial real estate investors across the country. John’s team focuses on $1M to $30M loans on multifamily properties, and in 2017, Old Capital closed more than $750M in loans. John’s market insight and established lender and equity relationships afford his clients a tailored, best-in-class financing solution.
Today, John joins me to offer insight on interest rates in 2019. He explains the difference between working with directly with a lender versus using an intermediary and describes why it’s safer to invest in properties that qualify for Fannie Mae or Freddie Mac. John also shares advice around financing smaller deals and covers the pros and cons of taking out a bridge loan. Listen in to understand the most common mistakes investors make when it comes to financing multifamily deals and learn why you should get your lender involved early in the process!
Key Takeaways John’s insight on interest rates
- Movement in last quarter of 2018
- Lock in long-term, fixed rate financing
The difference between direct lenders and intermediaries
- Direct lender = work with bank to arrange loan on own
- Intermediary = broker (save time, keep closing on track)
John’s take on the best properties for multifamily investors
- 5-units and above
- Stabilized and cashflowing (qualify for Fannie/Freddie)
- Target loan size $1.5M
John’s advice around financing smaller deals
- Finance acquisition + rehab with bank loan
- Increase value of property to >$1M
- Do cash-out refi within 12 to 24 months
The purpose of a bridge loan
- Finance acquisition when property not stabilized
- Sell or cash-out refi with Fannie/Freddie once stabilized
The current terms for bridge loans
- Banks: <$5M = 75% LTV, 5.5% (full personal guarantee)
- Debt funds: $5-$10M + 80%, 5.5%
The risk associated with bridge loans
- Shorter term, reach maturity in 2 to 3 years
- Could be in recession, few lending options for refinancing
The best candidates for bridge loans
- Investors with significant experience
- Investors with significant net worth or cash
How lenders handle loan proceeds earmarked for rehab
- Submit draw request (proof of work complete)
- Lender pays contractors directly
The most common multifamily financing mistakes
- Choose yield-maintenance prepay over step-down
- Fail to think about exit
- Overlook agency financing options
- Wait until LOI accepted before reach out to lender
Connect with John Old Capital
Call (913) 638-8871
Email jbrickson@oldcapitallending.com
Resources Michael Becker on ABI EP064
Old Capital Podcast
Michael’s Mentoring Program
Real Estate Guys Goal Setting Retreat
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Podcast Show Notes
Review the Podcast on iTunes
When you hunt, the prey runs away. But when you fish, you simply put a lure in the water and let the fish come to you. Tim Bratz likens raising private money to fishing: You provide value through education and intentional conversation—and then wait for the investors to come to you.
Tim is the owner of CLE Turnkey, a real estate investment firm focused on apartment buildings, vacation rentals and other commercial properties in Ohio, South Carolina, Georgia, Florida and Texas. His current portfolio consists of 2K units with a value of over $100M. Tim also offers coaching and mentoring through Commercial Empire.
Today, Tim joins me to explain how working as a commercial broker sparked his interest in investing and share the story of buying his first property—with a credit card! He discusses his transition from flipping, wholesaling and single-family rentals to multifamily buy-and-holds as well as his mindset shift around hiring a team. Listen in to understand the current opportunity around raising capital for multifamily and learn Tim’s approach to luring passive investors rather than chasing them.
Key Takeaways How Tim got interested in real estate investing
- Worked as commercial agent in NYC
- Ran numbers on landlord’s profit
How Tim bought his first duplex on a credit card
- Asked for $100K credit limit, received $15K
- Flipped property in 75 days for $13K profit
Tim’s transition to multifamily buy-and-hold
- Connected with investors ($1M to work with)
- Found 8-unit building in C-class area
- Apartments scalable, financing easier
- Portfolio of 2,000 units in 42 months
Why raising capital is the best use of your time
- Finance commands all other industries
- ‘Control the money, control the deal’
Tim’s mindset shift around building a team
- Hesitant to hire assistant for $35K/year
- Revenue increase from $100K to $400K/year
The activities Tim outsourced first
- Dry cleaning, car wash, post office, etc.
- Marketing and inspections
Tim’s first six-figure hires
- COO, CLO = engines that run business
- $48K salary + profit share based on role
The current opportunity around raising money
- Uncertainty in market, volatility
- Shift from stocks to hard assets
Why multifamily is the safest investment
- More control than stock market
- Limited risk in B, C+ properties
- Invest for cashflow vs. speculation
Tim’s approach to potential passive investors
- Educate around opportunities (e.g.: self-directed IRA)
- Fish rather than hunt, intentional conversations
What investors are looking for
- Collateral and ROI
- Credibility, fortitude
Connect with Tim Tim on Facebook
CLE Turnkey
Commercial Empire
Resources Invest with Michael
The Ultimate Guide to Buying Apartment Buildings with Private Money
Michael’s Mentoring Program
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Podcast Show Notes
Review the Podcast on iTunes
So, you’re on the phone with a real estate broker or a potential investor. Chances are, they’re Googling you to see if you’re the real deal. If they don’t find a website, it’s unlikely they’ll take you seriously. And if they find a poorly designed site, that’s even worse! A quality website affords you instant credibility as a syndicator. But is there an easy way to build a good one without investing a lot of time or money in the process?
Todd Heitner is the founder of Apartment Investor Pro and Done Deal Websites. He supports real estate investors in building professional-quality websites. Todd’s service includes beautiful design, well-written content and quick setup, giving you the credibility and systems you need to connect with brokers and investors at a fraction of the cost.
Today, Todd joins me to explain how a professional website affords syndicators instant credibility. He walks us through the features of a quality website, from domain name to design to content to maintenance. Listen in for Todd’s insight on the value of automation in building relationships with investors and learn how Apartment Investor Pro can help you set up a website in just one day!
Key Takeaways How a website provides credibility
- Expectation for all businesses
- Professional site builds trust
The elements of a quality website
- Domain name to match business
- Good web hosting service
- Design (overall look and feel of site)
- Appropriate plugins
- Consistent content
- Up-to-date maintenance
The value of website automation
- Saves time (e.g.: connection to CRM)
- Consistency of experience (i.e.: email sequence)
- Stay top-of-mind with investors
The features of Apartment Investor Pro
- Professional look and feel
- Allows for customization
- Includes all but domain name
- Forms to capture investor info
Connect with Todd Apartment Investor Pro
Resources WordPress
WP Engine
Fiverr
The Divi Builder
MailChimp
Constant Contact
AWeber
ActiveCampaign
Michael’s Mentoring Program
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Podcast Show Notes
Review the Podcast on iTunes
Who are you? Is your identity tied up in money? Another person? What you do for a living? If so, you are treading on dangerous ground, as these externalities can go away at any time. So, how do you define your WHY and create a culture in alignment with your core values? How do you awaken to your true purpose and potential? How do you live a life of significance and build a legacy you can be proud of?
Keith Elias is a former NFL running back who played for the New York Giants and Indianapolis Colts from 1994 through 1999. He earned All-American honors playing college ball at Princeton, where he established school, conference, and national records. Today, he supports NFL players in making the transition to retirement, helping them awaken to their purpose and navigate life after football.
Keith joins me on the podcast today to share his experience as an NFL player and his realization that there was more to life than football. He discusses why people struggle with life transitions, describing the risk in tying your identity to external things and the significance of defining your WHY. Keith offers advice around defining your core values and then using them as a guide in the decision-making process. Listen in for Keith’s insight on building a legacy and learn how to live a life of significance—starting right now!
Key Takeaways Keith’s experience as an NFL player
- ‘Accelerated life’
- Popularity, money
Keith’s realization around life beyond football
- Lack of spiritual purpose
- Began search for something deeper
Why people struggle with life transitions
- Identity tied to external things (i.e.: money, other person)
- Don’t know purpose beyond job title
The importance of defining your WHY
- No one immune from storm
- Purpose provides foundation
Keith’s advice around defining your identity
- Ask why you were created
- Align culture with core values
Keith’s mission to awaken people to their truth
- Ask big questions (spirituality)
- Realize ‘life is bigger than me’
How to incorporate your values in everyday life
- Define priorities, values (e.g.: truth, compassion)
- Use to inform decision-making
Keith’s insight on building a legacy
- Springs from identity, significance
- Ask ‘Who can I help right now?’
Connect with Keith Email keithelias@verizon.net
Resources The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results by Gary Keller and Jay Papasan
Real Estate Guys Create Your Future 2019 Goal Setting Retreat
The Financial Freedom Summit
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Podcast Show Notes
Review the Podcast on iTunes
Is 2019 the year you finally get on the road to financial freedom with multifamily real estate? If that’s your goal, there are a few simple things you can do to totally crush it this year.
Today on the podcast, I’m sharing my top 3 tips for achieving success in 2019. I start with goal-setting, explaining how to get clear on what you want to achieve and narrow down your objectives to no more than 5 measurable aims with specified time frames.
I go on to discuss making time to work toward your goals, describing the strategies I use to batch like activities and schedule intentional blocks to advance my top priorities for that week. Listen in for insight on taking tiny action and learn how to track, recognize and celebrate the small WINS that put you on the road to financial freedom with multifamily real estate!
Key Takeaways Tip #1—Get clear on your goals
- Identify 1 to 3 things that make others easier
- Define daily, weekly, 90-day and yearly goals
- State in present tense with time frame
Tip #2—Make time
- Schedule intentional blocks to work on goals
- Batch similar activities
- Establish morning routine
- Focus on WHY = prioritize time
Tip #3—Take tiny action
- Focus on next 3 things, track progress
- Recognize and celebrate small WINS
- Activity over outcome in beginning
The value of a strong support system
- Accountability partners
- Accelerate timeline
Resources Michael’s Mentorship Program
The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results by Gary Keller and Jay Papasan
Google Keep
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
Apartment Investors Network Facebook Group
Michael on Facebook
Michael on Instagram
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Podcast Show Notes
Review the Podcast on iTunes
In a perfect world, we could syndicate a multifamily property and then sit back and wait for the checks to roll in. But in the real world, we must oversee the apartment buildings we’ve purchased and make sure they perform according to plan. What all is involved in asset management? What is the best way to communicate with investors? And how does your property manager’s competence impact the amount of work that falls to you?
Drew Kniffin is the President of Nighthawk Equity, a firm committed to helping real estate investors achieve financial freedom through practical education and high-quality multifamily investment opportunities. Drew became an ‘accidental landlord’ in 2008 when he was unable to sell his condo and rented it instead. But it wasn’t until 2015 that Drew shifted his focus to small apartment buildings. Eight months and three deals later, he was able to quit his job and pursue real estate full-time. Now, Drew helps manage a 1K-unit portfolio through Nighthawk, and he also serves as a mentor with The Michael Blank organization.
Today, Drew joins me to share his definition of asset management and explain the syndicator’s role in finding problems to solve during the acquisition process. He describes the significance of a good property manager, discussing how to gauge if a property manager is the right fit, what you should expect from a property manager, and how replace a property manager if necessary. Drew also covers reporting, offering insight around the level of detail to expect from your property manager as well as the key performance indicators a syndicator should monitor. Listen in for Drew’s advice on communicating with investors and learn what aspects of asset management can be outsourced as you scale!
Key Takeaways Drew’s definition of asset management
- What you do once bought property
- Make sure performs according to plan
What to look for in the acquisition process
- Capable, competent property manager
- Problems that can be solved
How to find a good property manager
- Ask for stabilized profit and loss projections
- Learn how report, communicate with owners
What makes for a great property manager
- Execute on marketing property, managing to budget
- Less than 10 minutes/month to review financials
The reasonable expectations for a property manager
- Online listings, ads competent
- Changes made first time asked
- Interested in communicating
The fundamentals of reporting
- Consult with bookkeeper, accountant re: details
- Know investors, report to desired level of detail
How to determine if a property manager is not the right fit
- Micromanaging on smaller level as time goes on
- Change after 2 months if ‘managing the manager’
The key performance indicators to monitor
- Net occupancy
- Punch list items
- Actual vs. budget
How to keep a property manager honest
- Require plan to deliver on budget
- Quarterly audits
Drew’s advice on replacing a property manager
- Transition in middle of month
- Know what files need to transfer (e.g.: rent rolls, leases)
- Don’t use 30-day earn-out, bring in new team on Day 1
The fundamentals of investor relations
- Deliver ongoing communication (monthly report)
- Provide high-level qualitative and financial summary
How to communicate with investors when things go wrong
- Build long-term trust by delivering bad news
- Be honest but have plan and follow up
The value in uniformity of reporting as you scale
- Standardization affords control
- Software streamlines format, provides investor portal
How syndicators should spend their time
- Raising money
- Finding deals
- Operations/systems
The asset management tasks that VAs can do
- Keep investor information current
- End-of-month reporting
Connect with Drew Nighthawk Equity
Drew at Michael Blank Mentorship
Resources Drew Kniffin on ABI EP027
The Financial Freedom Summit
The Michael Blank Deal Desk
Google Sheets
Upwork
Jing
Loom
Invest with Michael
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Michael’s Live Training Webinars
Michael’s Coaching Program
Podcast Show Notes
Review the Podcast on iTunes
If you follow the advice of a traditional financial planner, you are likely counting on a 401(k) and investments in the stock market to sustain you through retirement. Yet those vehicles are both subject to market volatility and assume that the tax rate will remain the same for the foreseeable future. Rebecca Walser is NOT your traditional financial advisor, and she has designed a better strategy for building long-term wealth—a strategy that includes investing in multifamily real estate.
Rebecca is a tax attorney, wealth strategist, Certified Financial Planner, and one of Investopedia’s 2018 Top 100 Most Influential Financial Advisors. She has combined her expertise in law and finance to design a unique approach to building and sustaining wealth that conventional advisors won’t consider. Rebecca has been featured in Bloomberg Business, The Boston Globe, and The Miami Herald, among many other media outlets, and she is the author of the groundbreaking book, Wealth Unbroken: Growing Wealth Uninterrupted by Market Crashes, Taxes, and Even Death.
Today, Rebecca joins me to explain why the 401(k) is a big mistake (unless your employer matches funds) and share her insight around deferring taxes until retirement. She covers the best alternatives to the 401(k), the greatest threats to building wealth, and the non-traditional asset classes that aren’t subject to market volatility. Listen in for Rebecca’s take on why traditional financial advisors don’t recommend real estate investments and learn the three key takeaways from her bestseller, Wealth Unbroken.
Key Takeaways What sets Rebecca apart from other financial advisors
- Ten years of experience in finance industry
- Advanced degree in tax law
Why Rebecca considers the 401(k) a big mistake
- Hasn’t changed since inception in 1981
- Boomers retiring + likely tax increase
The danger in deferring taxes until retirement
- Assumes you will earn less, tax rate stays same
- Taxes currently at lowest rate since 1930’s
Rebecca’s top alternatives to the 401(k)
- Roth IRA
- Cash value life insurance
The greatest threats to building wealth
- Market volatility (correction coming)
- Reported returns don’t account for lows
Rebecca’s best strategies to avoid market volatility
- Real estate
- Short-term CDs
- Bonds (held to maturity)
Why traditional financial advisors avoid real estate
- Don’t have control or feel equipped
- Don’t bother with strategies outside norm
The key takeaways from Wealth Unbroken
- Can’t afford lows of 100% market-based portfolio
- Convert 401(k) to Roth NOW while taxes ‘on sale’
- Leverage non-traditional asset classes (non-negotiable #)
Connect with Rebecca Walser Wealth
Resources Wealth Unbroken: Growing Wealth Uninterrupted by Market Crashes, Taxes, and Even Death by Rebecca Walser
Patrick Donohoe on ABI EP128
Heads I Win, Tails You Lose: A Financial Strategy to Reignite the American Dream by Patrick H. Donohoe
Invest with Michael
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Michael’s Live Training Webinars
Michael’s Coaching Program
Podcast Show Notes
Review the Podcast on iTunes
Let’s say you have a single-family rental that makes you $100 a month. What if you took advantage of a 1031 exchange to purchase a 5-unit building that generates a dramatically higher monthly income of $1K? When Michael Zuber realized the potential cashflow of multifamily investing and the lack of competition in the market for small apartment buildings, his mindset shifted. He went from seeing real estate as a smart place to keep his money to an opportunity to achieve financial independence.
Michael is a full-time real estate investor who specializes in 5- to 20-unit apartment buildings. After 15 years of real estate investing, Michael quit his W-2 job to start One Rental at a Time, a company focused on helping busy professionals begin their own journey to financial freedom. Michael’s goal is to help 1K people learn the fundamentals of real estate investing through his educational platform. He is also the author of the book, 15 Year Journey to Financial Freedom Via One Rental at a Time
Today, Michael joins me to explain how losing six figures in the stock market led him to real estate investing and describe his initial strategy to buy and hold several single-family homes. He discusses his realization around the cashflow potential of small multifamily properties, sharing how he leveraged the 1031 exchange to transition from eight to 80 units in 18 months—right before the crash in 2008. Michael also offers insight around his strategy during the crash, how he is preparing for the likely market correction, and how he might have accelerated his journey to financial freedom. Listen in to understand how Michael opened his mind to multifamily and learn how he can help you through his new platform, One Rental at a Time.
Key Takeaways How Michael got into real estate
- Lost six figures in stock market in 48 hours
- Year of research, bought first house
Michael’s initial real estate plan
- Wanted security didn’t have w/ W-2 job
- Buy and hold (while working full-time)
How Michael financed his first deals
- Put own money down on first three houses
- Refinanced for capital to buy more
- Acquired seven houses + duplex
Michael’s transition to multifamily
- Cashflow potential of small multifamily
- 1031 all eight houses prior to crash
- From eight to 80 units in 18 months
The details of Michael’s first multifamily deal
- Looking for deals on local MLS, Loopnet
- Found 5-unit through agent relationship
Michael’s mindset shift
- Assumed multifamily above skill set
- Little competition in 5- to 20-unit range
Michael’s strategy during the crash
- Bought everything that made sense
- Structure of deal most important
- Solve problems for owners, banks
Why Michael waited to quit his job
- Ego, identity wrapped up in job
- Need something to commit to
Michael’s One Rental at a Time YouTube Channel
- Educate busy professionals on investing
- Allows to do good and track outcomes
How Michael could have accelerated the process
- Identify underserved market sooner
- Raise private money much earlier
How Michael is preparing for the market correction
- Continue to play in affordable housing
- Raising cash, selling weaker properties
Michael’s advice for aspiring multifamily investors
- Get four rentals (two-year timeline)
- Finance first on own or with partner
- Track record to raise money for next deal
Connect with Michael One Rental at a Time on YouTube
Resources 15 Year Journey to Financial Freedom Via One Rental at a Time by Michael Zuber
Loopnet
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Michael’s Live Training Webinars
Michael’s Coaching Program
Podcast Show Notes
Review the Podcast on iTunes
While syndication is the most popular way to raise money to fund a multifamily deal, it is not the only option. A resourceful real estate investor can leverage a number of other creative possibilities. Jake Stenziano and Gino Barbaro have built an impressive portfolio without syndicating a single deal, but now they are adding the strategy to their repertoire. What drove them to add ‘investor relations’ to their skill set? In what situation might a different approach, like owner financing, be appropriate? What are the pros and cons of syndication?
Jake and Gino are the co-founders of Jake & Gino, LLC, an educational platform that leverages their expertise in multifamily real estate to help others attain financial freedom by way of apartment building investing. A few short years ago, Jake and Gino were a pizza guy and a drug rep; today, they own 900-plus multifamily units. They share their creative approach on the Wheelbarrow Profits Podcast, and they are the co-authors of the Amazon bestseller, Wheelbarrow Profits: How to Create Passive Income, Build Wealth, and Take Control of Your Destiny Through Multifamily Real Estate Investing.
Today, Jake and Gino join me to explain how they were able to build a portfolio without syndication, discussing the benefits of using community bankers and partnering with high-net-worth individuals. They share the case study of a 281-unit owner-financing deal and describe how good broker relationships can reveal creative financing opportunities. Jake and Gino also address the differences between community bank and agency debt and the value in understanding the story behind every deal. Listen in for insight around why Jake and Gino are adding syndication to their list of options and learn the advantages—and the drawbacks—of syndicating a multifamily deal!
Key Takeaways The advantage of using community bankers
- Build in rehab budget
- Much less cash down (15-20%)
How to address the down payment
- Partner with high-net-worth individual
- Do day-to-day operations for equity
Jake & Gino’s owner-financed 281-unit deal
- No money in, walk away with $150K
- Facilitated by track record
The right conditions for owner financing
- Understand seller’s motivation
- Every deal has own story
Why Jake & Gino are syndicating now
- Vision to scale requires capital injection
- Comfortable speaking to investors
The disadvantages of syndication
- Less equity (10% vs. 30%)
- More work on front-end
- Meet projections vs. ‘do right thing’
- Investors expect liquidity event in year five
The difference between community bank and agency debt
- ‘Ease of doing business’ with community bank
- Community bank requires personal guarantee
- Agency debt = nonrecourse, low interest rates
What surprised Jake & Gino about syndication
- Timeline once LOI signed
- Can’t accept $ until docs in place
How Jake & Gino raised money so quickly
- Position as experts in space
- Live events (e.g.: investor dinner, meetup)
What’s next for Jake & Gino
- Continue to look for big deals
- Grow education platform (book in 2019)
Connect with Jake & Gino Jake & Gino’s Website
Wheelbarrow Profits Podcast
Jake & Gino on Facebook
Jake & Gino on Instagram
Email gino@jakeandgino.com
Resources Wheelbarrow Profits: How to Create Passive Income, Build Wealth, and Take Control of Your Destiny Through Multifamily Real Estate Investing by Jake Stenziano and Gino Barbaro
Gino on Apartment Building Investing EP052
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Michael’s Live Training Webinars
Podcast Show Notes
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Partner with Michael
“When you chase money, money runs. When you’re focused on mission, you attract money.”
To reach the highest levels of success in real estate, it’s important to have your mind—and heart—in the right place. If your WHY is about more than just you, if your mission has meaning, business will come to you. So, what’s driving you?
Kent Clothier is the founder and CEO of Real Estate Worldwide, a real estate software and education platform that offers aspiring investors a curriculum of proven systems and technology as well as national data on real estate cash buyers and private lenders. A serial entrepreneur and digital marketing expert, he also owns and operates the multimillion-dollar brands Real Market Experts, 1-800-SELL-NOW FREE, Find Cash Buyers NOW and Find Private Lenders NOW.
Today, Kent joins me to explain how his definition of success has shifted from a focus on money to a focus on impact. He offers insight on designing a meaningful mission and going all-in to reach your goals—without sacrificing your quality of life. Kent describes how he has created a life of balance, sharing the massive lessons learned from losing everything after 13 years of running his first business. Listen in for Kent’s advice on becoming a student of scale and learn the value of people, processes and technology in building a fulfilling real estate business that complements your personal life!
Key Takeaways Kent’s background in real estate
- Started as wholesaler in 2002
- Turnkey operation (completed 5K flips to date)
- Runs software, education business (50K students)
How Kent’s definition of success has changed
- Money was driving factor 10 years ago
- Massive windfall as shift in focus to mission
What inspired Kent to focus on mission
- Uncle/mentor passed away at 61
- Standing for something attracts people
Kent’s insight on the necessity of going all-in
- Capable of much when back against wall
- Success connected to meaningful mission
Kent’s take on the difference between failure and success
- NEVER about how much you know
- Failing is inevitable but doesn’t define you
- ‘I will simply never quit’
How Kent connects with his WHY every day
- Will somebody say I mattered?
- ‘This is where my competition will quit’
How Kent creates a life of balance
- High quality of life (e.g.: dream house on ocean)
- Monthly vacation, walk daughters to school
- In business of ‘creating moments’
Kent’s massive lesson around balance
- Sacrificed family, personal life in first business
- Walked away from company out of arrogance
- Tried to pirate employees, customers
- Got sued and lost everything
- Got serious about systems with new business
Kent’s advice around scaling your business
- Good people, systems around you
- Document processes as build team
- ‘Elegance in simplicity’
Kent’s Big Hairy Audacious Goal
- Launch new business (Cribs)
- Go toe-to-toe with Opendoor
Connect with Kent Kent’s Website
Kent on Facebook
Kent on Instagram
Resources Scaling Up: How a Few Companies Make It … and Why the Rest Don’t by Verne Harnish
Damion Lupo on Apartment Building Investing EP079
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Live Training Webinars
Podcast Show Notes
Review the Podcast on iTunes
Once upon a time, Michael Beeman was struggling. He had a blended family of seven kids, and his corporate salary of $60K was not making ends meet. Michael started a side business splitting firewood, and he was bringing in an additional $15K—but he wanted to do more than just survive. Michael wanted his family to thrive. So, he started listening to multifamily podcasts and real estate audiobooks while he was cutting and delivering firewood.
By May of 2017, Michael had saved up $12K. His best friend and his mom contributed $20K each, and with $52K, he started looking for his first deal. Today, Michael has a 64-unit portfolio, and he is about to close on a 61-unit deal. The best part? Michael recently put in his two weeks’ notice so that he can pursue real estate investing full-time.
On this episode of Apartment Building Investing, Michael sits down with me to share the details of his current 61-unit deal, discussing the value of building broker relationships for introductions to pocket listings. He explains how he began his investing career just 18 months ago and his plans to quit his corporate job at the end of the year. Michael describes how enthusiasm for multifamily investing along with creativity and perseverance helped him find his first deal and overcome the challenges he’s faced along the way. Listen in for insight on building a real estate team with the right talents and attitude and learn how Michael’s ‘never quit’ philosophy took him from splitting firewood to get by to full-time real estate investor in under two years!
Key Takeaways Michael’s current 61-unit deal
- Pocket listing through broker
- $50K away from $500K raise
Michael’s real estate journey
- Married 5 years ago (7 kids)
- Side business splitting firewood
- Listen to podcasts, audio books
- Start with $52K 18 months ago
How Michael found his first deal
- Share enthusiasm for investing
- Friend knew of 6-unit building
- Paid $60K (100% financing)
- Put in another $40K
Michael’s insight on the value of creativity
- No money to acquire 5-unit deal
- Borrowed from family at 10% interest
- Must be willing to take risks
Michael’s setback in hiring the wrong contractor
- Turn large house into triplex
- Unqualified, ask for more money
- Wife identified competent crew member
- Established long-term relationship
How Michael built a talented team
- Started holding company with contractor
- Property management company with investor
- Look for right talents and attitude
How Michael overcame obstacles
- ‘American Dream’
- Just don’t quit
Michael’s take on quitting his corporate job
- Continue to work hard but on own terms
- Spend more time with wife and kids
Connect with Michael Michael on LinkedIn
Michael on Facebook
Email michaelbeeman@beemanandsons.com
Call (217) 508-8185
Resources Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Podcast Show Notes
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So, you want to scale your multifamily business. What are your options? One strategy involves leading your own real estate investing meetup. But how do you get a significant number of people to attend that first meeting? Are there hacks to help you become popular FAST? And how do you follow up with the group when the time comes to raise money for a new opportunity?
Adam Adams is a syndicator with BlueSpruce Holdings, a multifamily real estate investment firm focused on purchasing apartment buildings in emerging markets. He repositioned his first apartment community as a property manager in 2007 and went on to purchase his first multifamily property the same year. Adam has managed a number of single-family fix and flips, and today, he holds 100-plus multifamily rental doors. He is also the host of the Creative Real Estate Podcast and the organizer of Colorado’s most active real estate meetup group.
Today, Adam joins me to discuss the recession’s impact on his multifamily career and his return to real estate in 2015. Adam walks us through his transition from single family remote fix and flips to apartment buildings, offering advice to aspiring multifamily investors around aligning with an experienced operator and ‘wearing one hat.’ Listen in for insight on the benefits of leading your own real estate meetup group and learn how Adam has leveraged meetups to raise $4.4M and become a community leader in the space!
Key Takeaways Adam’s background in real estate
- Dad multifamily, storage unit investor
- Worked as property manager in college
- Bought triplex in 2008 but hit by crash
- Return to real estate investing in 2015
The recession’s impact on Adam
- Less and less work for handyman company
- Tenant-employees couldn’t pay rent
- Deed in lieu on triplex property
Adam’s return to real estate investing
- Live online auction (tax deeds)
- Fix and flip remotely
Why Adam transitioned to multifamily
- Competition at tax deed auctions
- Single family ‘like a paycheck’
Adam’s path to multifamily
- Bought five-plex (owner financing)
- Two-, four- and five-plex first
- Syndication of larger properties
The major surprises of syndication
- Utility deposit, pre-paid insurance
- $40-$100K in cost up front
Adam’s approach to building credibility
- Start with smaller property (16-plex)
- Qualify for loan on own, raise $300K
Adam’s advice for aspiring multifamily investors
- ‘Wear one hat’ (e.g.: find deals, raise money)
- Go in passively yourself
Why Adam created a real estate meetup
- New to city, desire to build network
- Lunch group to draw active investors
- Opportunity to position as leader
How Adam has benefitted from the meetup
- $4.4M raised through group
- Put on map as community leader
Adam’s hacks for creating a successful meetup
- Ask other popular group leaders to speak
- Message active followers with invitation
The format of Adam’s meetup
- Network and guest speaker
- Attendees purchase lunch
Adam’s follow-up mechanism for raising money
- Constant Contact email with new deal
- Call those who watch webinar
- PPM and deal package if interested
Adam’s insight on scaling your business
- Offer more value in space
- Podcast, meetup or share on social
Connect with Adam Real Blue Spruce
The Creative Real Estate Podcast
Denver Apartment Network
Real Estate Lunch Club
Text MEETUP to 555 888
Resources Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Constant Contact
Trello
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
The Michael Blank Coaching Program
The Ultimate Guide to Buying Apartment Buildings with Private Money
The Michael Blank Deal Desk
Invest with Michael
Podcast Show Notes
Do you struggle to remember names at networking events? Do you rely on notes when introducing a speaker or giving a presentation? Do you invest in conferences—and promptly forget what you learned? It’s not that you have a ‘bad memory.’ You simply haven’t learned the simple techniques that would allow you to improve your recall, enhance your relationships, and ultimately grow your business!
Ron White is one of the top authorities on memory in the world. He won the USA Memory Championship in 2009 and 2010, and his YouTube Channel, Brain Athlete Ron White, is number 1 among memory experts. Ron speaks to audiences of all sizes all over the world, from Singapore to Ireland to Zimbabwe. He has appeared on Good Morning America, Martha Stewart Living Radio, and the Dr. Oz Show, among many other media outlets.
Today, Ron joins me to explain how he became the two-time National Memory Champion, memorizing a deck of cards and a 167-digit number in record time! He describes the Afghanistan Memory Wall event in which he honors the 2,300 service men and women who died in the war and offers insight around the benefits of a good memory in improving your business and your life. Listen in for Ron’s advice on improving your recall and learn his system of visualization to quickly memorize a list of words!
Key Takeaways How Ron became the two-time National Memory Champion
- Compete in series of 7 events
- Memorize deck of cards in 1:27
- 167-digit number in 5 minutes
Ron’s Afghanistan Memory Wall event
- Honors 2,300 who died in war
- Write out rank, name from memory
- 10-hour process
The benefits of a good memory
- Impacts work, relationships
- Improve business/life
- Give speech without notes
- Remember what read, learn
Ron’s advice around improving your memory
- Focus = most important
- Nutrition and exercise
Ron’s system for memorization
- Think in pictures (visualize)
- Store in place to retrieve later
Connect with Ron Ron’s Free PDF
Ron’s Website
Ron on YouTube
Resources Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Deal Maker LIVE
Review the Podcast on iTunes
When you know, you know.
Once Kyle Collins fell in love with multifamily as an asset class, he didn’t waste any time. In 9 months, he went from zero to 112 units and quit his job to pursue real estate investing full time.
Kyle is the Principal at Beechwood Holdings, a multifamily acquisition firm focused on stabilized, income-producing properties. Prior to founding Beechwood, he served as a sales rep for Martech Medical and the Director of Business Development for his family’s business, Five Rivers Conservation Group. Kyle earned a bachelor’s in finance from Georgia Southern and an MBA from Emory University.
Today, Kyle sits down with me to discuss his transition to full-time real estate investor, sharing the challenges he faced finding deals early on. He explains how to build a network of brokers and potential investors as well as what questions to ask to be taken seriously. Kyle also offers advice on leveraging an experienced property manager, raising capital and investing in your own deal. Listen in for insight around setting realistic expectations and learn how to divide your time among raising money, prospecting deals and running the operations of your portfolio!
Key Takeaways Kyle’s background and education
- Medical device sales
- MBA from Emory
- Raise capital for family business
Kyle’s transition to real estate
- Familiar with network of potential investors
- Experience with syndicated land transactions
The challenges Kyle faced early on
- Finding deals, getting in front of brokers
- Courage and trust in ability to underwrite
Kyle’s advice around building a network
- Leverage personal network for introductions
- Call brokers to look at deals
Kyle’s advice on being taken seriously
- Educate self before pursuing leads
- Build multifamily skill set (50+ deals)
- Learn to speak the language
The questions to ask when you see a property
- Realistic rent bump on planned renovations
- Why rents lower than rest of market
How Kyle leveraged his property management firm
- Brought on early in negotiations, underwriting
- Objective opinion of realistic cost projections
Kyle’s guidance around raising capital
- Ask potential investors to lunch, coffee
- Explain what you’re doing but don’t push
- Put in substantial amount of own money
The importance of being excited about a deal
- Approach each deal with skeptical lens
- Confident in pitch, personal investment
- Under-promise and overdeliver
How to reconcile desire with prudence
- Invest in own deal
- Err on conservative side
Kyle’s first 112-unit deal
- Broker introduced to off-market deal
- Unnamed property, rents $150 below market
- $3K per door on renovations
- Already hit year-two rent assumptions
The value of a quality property manager
- Help set realistic expectations
- Handle renovations
What’s next for Kyle
- Another deal by end of year (1K units by 2020)
- Raise capital, prospect deals + run operations
Kyle’s insight on the level of effort necessary
- Look at deals daily, practice underwriting
- Network to meet brokers and investors
- Put together marketing materials
Kyle’s top tips for aspiring multifamily investors
- Need to believe in self through highs and lows
- Do one thing each day to further your cause
Connect with Kyle Beechwood Holdings
Email kcollins@beechwoodholdings.com
Kyle on LinkedIn
Resources LoopNet
Syndicated Deal Analyzer
Apartments.com
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
The Michael Blank Coaching Program
Review the Podcast on iTunes
If you ask people at the end of their lives to reflect on their regrets, no one ever mentions money or work. Instead, their focus tends toward the relationships they neglected. So, when Ken McElroy realized he only had one shot at having a great rapport with his kids, he got serious about designing a life of balance that allows him to grow a successful real estate business AND be fully present with his family.
Ken has 20-plus years of experience in real estate investment analysis, property management, acquisitions and property development. Ken serves as an advisor to Robert Kiyosaki of The Rich Dad Company, and he is the author of the bestselling books The ABCs of Real Estate Investing, The ABCs of Property Management, and The Sleeping Giant. An advocate for entrepreneurs and real estate investors, Ken makes regular media appearances and speaks at top industry events all over the world. He is also the host of Entrepreneur magazine’s Real Estate Radio program.
Today, Ken joins me to share his insight around work-life balance, explaining why he takes time away to work ON the business and connect with his family. He describes how his definition of success has changed over time and how the decision to prioritize relationships translates to his business. Listen in to understand Ken’s take on limiting beliefs and learn how he approaches life with a commitment to being self-aware and fully present.
Key Takeaways Why Ken spends 3 months in Idaho every summer
- Think clearer, bring back new ideas
- Time to work ON business
Ken’s insight on work-life balance
- Up at 5am to work for 4 hours
- Fully present with kids rest of day
- ‘Space allows’
Ken’s transition from employment to entrepreneurship
- Hard leap to rely on self
- First job in property management
- Start with one rental as side project
Ken’s goals around financial freedom
- Initial goal to be own boss, cover expenses
- Scale business as expenses increase
How Ken’s definition of success has changed over time
- From ‘job’ to ‘good job I really enjoy’
- Focus on money in 30’s (millionaire)
- Now relationships with family, kids
Ken’s decision to focus on family and relationships
- Sought mentor for support (Charlie Dunlap)
- Money, work not on list of top regrets
How Ken’s shift in priorities translates to his business
- Create better environment for employees
- Seminars dedicated to personal growth
Why Ken sees BE as the most important aspect of Be-Do-Have
- Work on inside, outside changes
- Focus on people changed company
Ken’s take on limiting beliefs
- Where come from shapes belief system
- Value in considering other’s opinions
How to work through limiting beliefs
- Awareness is key
- Present as ‘observer’
What gets Ken out of bed in the morning
- Sense of purpose
- Desire to contribute
Ken’s view of spirituality
- Likes ‘no rules’
- Just about love
Connect with Ken Ken’s Website
Resources Win a Signed Copy of Ken’s Book
The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss by Ken McElroy
Books by Ken McElroy
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Awareness by Anthony DeMello
The Untethered Soul: The Journey Beyond Yourself by Michael A. Singer
The Power of Now: A Guide to Spiritual Enlightenment by Eckhart Tolle
Warriors Heart
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Deal Maker LIVE
Review the Podcast on iTunes
“When you pay somebody that’s been where you want to go, you’re buying WISDOM without the WAIT.”
If you want to succeed as a multifamily real estate investor, your best bet is to take advantage of free resources for a basic education and then find someone you know, like and trust who is willing to mentor you—even if you have to pay for their time.
Larry Goins is a veteran real estate investor with 20-plus years of experience in the space. He travels the US speaking at conventions and expos, sharing his strategies for buying a dozen properties every month—without leaving his office! Larry is also the president of both Investors Rehab and The Goins Group, and he hosts the popular real estate podcasts BRAG Radio and Brain Pick-A-Pro. Larry is committed to holding true to his moral integrity in his business and personal life.
Today, Larry sits down with me to offer advice for aspiring investors around finding a mentor and ‘accelerating the splat’ when necessary. He shares his favorite real estate strategies and explains how he has systematized his business around seller financing and lease option models. Listen in to understand what motivates Larry to continued success in real estate and learn how he pays it forward by putting people and principles BEFORE profits!
Key Takeaways How Larry got his start in real estate
- Always wanted own business
- Tom Vu real estate seminar
- Bought first house in 1986
Larry’s favorite real estate strategies
- Seller financing
- Lease option
How Larry has systematized his business
- Buy house ‘fit and safe’
- Landlord/tenant relationship
- Lease option model
Larry’s advice for aspiring investors
- Get education (podcasts, blogs and YouTube)
- Find coach or mentor
- ‘Education is not application’
Larry’s concept of accelerating the splat
- Pleasure vs. pain motivation
- Recognize time to move on
What motivates Larry to success in real estate
- Dad passed in 1984, wanted to help mom
- Be Rich and Generous
How Larry puts people and principles before profit
- Advise against lending for bad fix and flip
- Relationship driven (vs. transaction driven)
What gets Larry out of bed in the morning
- Loves the chase, thrill of negotiating deals
- Impart expertise to students
Connect with Larry Larry’s Website
BRAG Radio Show
Brain Pick-A-Pro Podcast
Resources Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Deal Maker LIVE
Michael’s Website
Podcast Show Notes
Review the Podcast on iTunes
If you’re early in your career as a multifamily syndicator, a qualified team is essential in overcoming your lack of experience to go after larger, more lucrative deals. But how do you attract and align your interests with those prospective team members? And once you’ve established a track record of your own, how do you stay in front of your investors and continue to scale your money raising efforts?
Joe Fairless is Managing Partner with Ashcroft Capital, a national multifamily investment firm focused on major metropolitan areas. Joe has been investing in real estate since 2008, and to date, he controls more than $400M of real estate in the Houston and DFW regions. Joe is also the host of the popular daily podcast, Best Real Estate Investing Advice Ever, and the author of several books on real estate investing, including the newly released Best Ever Apartment Syndication Book.
Today, Joe joins me to discuss his impetus for writing the Best Ever Apartment Syndication Book and explain his belief in the Law of Reciprocity. He shares several of the advanced aspects of syndication outlined in the new book, including 4 ways to align interests with team members and pursue larger deals early on—in a safe way. Listen in for Joe’s insight on multifamily as a partnership business and learn his intentional system for staying top-of-mind with investors, adding value in a variety of ways on a regular basis!
Key Takeaways Why Joe wrote the Best Ever Apartment Syndication Book
- Help investors understand how operations work
- Not beginner’s guide, need fundamentals first
- Get message out to help others (Law of Reciprocity)
Joe’s 4 ways to gain credibility through aligned interests
- Attract qualified team member (i.e.: property manager)
- Give team member equity stake of 5-30%
- Team members bring equity to deal
- Team members bring own money + investors
Joe’s insight on real estate as a partnership business
- Maximum return on time and money
- Align with experienced team early on
- Leverage track record of partners
- Larger deals in fast, safe way
Joe’s approach to staying top-of-mind with investors
- Daily podcast/blog (audio)
- Weekly email recap of content (visual)
- Monthly report mailed to accredited investors
- Quarterly happy hour, dinners (in-person)
- Annual Best Ever Conference
Connect with Joe Joe’s Website
Best Ever Show
Ashcroft Capital
Email info@joefairless.com
Resources Best Ever Apartment Syndication Book by Joe Fairless and Theo Hicks
The Tim Ferriss Show
The 4-Hour Workweek: Escape the 9-5, Live Anywhere, and Join the New Rich by Timothy Ferriss
Carlos Vaz at CONTI
Best Ever Conference
Kathy Fettke at Real Wealth Network
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Deal Maker LIVE
Michael’s Website
Podcast Show Notes
Review the Podcast on iTunes
Are you still skeptical of the idea that you can build a real estate business using other people’s money? Or, maybe you don’t think that your network has access to the kind of capital you would need for a multifamily investment. Matt Faircloth argues that you simply don’t know where to look, and he is living proof that with the right approach, you can develop a robust real estate portfolio by raising private capital.
Matt is the co-founder of The DeRosa Group, a real estate investment firm headquartered in Trenton, New Jersey. Matt and his wife, Liz, have been investing in real estate since 2004, and they have vast experience with single family, multifamily, office and retail properties. Matt’s firm has completed more than $30M in real estate transactions involving private capital, and he is the author of Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money.
Today, Matt joins me to share his journey from house hacker to full-time real estate investor. He offers insight around taking capital from friends and family, educating your network on where to find the money to invest, and aligning with a seasoned partner. Listen in to understand the three different investment opportunities Matt offers through DeRosa Group and learn his transparent, jargon-free approach to raising capital.
Key Takeaways Matt’s introduction to real estate
- Rich Dad Poor Dad, CASHFLOW Board Game
- House hack to pay off student loans
Matt’s transition to full-time real estate investor
- Reduce expenses to live below means
- Strategic decision to delay having kids
Why it took Matt several years to find his niche
- No solid set of attainable goals
- Distracted by shiny objects
Matt’s shift to raising money from investors
- Refinanced portfolio to get cash for next deal
- ‘Carousel stopped’ after crash
Matt’s insight on taking money from friends and family
- Offer value, confident in returns
- Allow people care about to benefit
How to overcome a lack of track record
- Align with seasoned partner
- Start small, work up to bigger projects
Matt’s advice for aspiring investors looking to partner
- Don’t solicit free advice
- Put other person first and CONTRIBUTE
The three investment options Matt offers
- Single family fix and flips (short-term capital)
- Turnkeys (100% ownership)
- Multifamily syndication for passive investors
The argument for real estate investment over other asset classes
- Leverage tax deferment through IRA for fix and flips
- 8 to 10% yields, compound over and over
- Tax benefits of owning via syndication or turnkey
Matt’s approach to raising capital
- Avoid speaking in jargon, keep it simple
- Explain how money protected
- Discuss if, thens (worst case scenarios)
Where to find money in your own network
- Homeowners that qualify for HELOC
- Leverage retirement accounts
Matt’s three tiers of raising capital
- Local contacts
- Referrals, networking groups
- National voice as thought leader
Connect with Matt DeRosa Group
DeRosa Group on Facebook
DeRosa Group on YouTube
Matt on Bigger Pockets
Resources Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money by Matt Faircloth
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money—That the Poor and Middle Class Do Not by Robert T. Kiyosaki
CASHFLOW Board Game
Deal Maker LIVE
Review the Podcast on iTunes
What could possibly go wrong? If you are the proud owner of a multifamily property, the answers range from minor falls to catastrophic weather events. How can you mitigate the risk and reduce your total number of claims? And what kind of multifamily insurance coverage do you need to manage the circumstances outside your control?
Bryan Shimeall is the Vice President of Multifamily Risk Advisors, a division of Tanner, Ballew and Maloof formed to leverage the firm’s 20-plus years of experience handling insurance for the multifamily industry. Bryan is dedicated to delivering customized solutions that mitigate risk for apartment building investors, and he is an expert in the realm of risk assessment and exposure to loss.
Today, Bryan sits down with me to share his definition of and approach to risk assessment. He discusses the most common gaps in multifamily coverage, the most common property and liability claims, and the best strategies for mitigating risk. Bryan also explains when to pursue a master policy and the fundamentals of catastrophic coverage. Listen in for insight on the benefits of working with a risk management consultant and learn what to look for in a multifamily insurance policy!
Key Takeaways The role of Multifamily Risk Advisors
- Insurance services for multifamily industry
- Boutique shop in business 20 years
Bryan’s definition of risk assessment
- Process of identifying inherent risk of property
- Includes property and liability
Bryan’s approach to risk assessment
- Age and condition of property
- Construction type and location
- Look at seller’s historic losses
The most common gaps in coverage
- Catastrophic hurricane deductibles
- Denial that managing risk will mitigate claim
How operators can manage risk
- Routinely walk property
- Keep up with deferred maintenance
- Update AC units
The most common claims
- Liability—wet conditions, loose handrails cause falls
- Property—small oven fires
The disadvantages of the ‘trailing 12 premium’
- No reason to look at number for guidance
- Don’t know how owner has insured property
The benefits of working with a risk management consultant
- Knowledge, experience and relationships
- Specialize in multifamily, understand mechanics
How Multifamily Risk Advisors can assist during the acquisition phase
- Ask for OM on property (square footage, construction type)
- Respond quickly with real insurance costs for property
- Identify other issues (i.e.: budget money for roof replacement)
When to pursue a master policy
- No raw number (≈1K units)
- Geography is most important factor
- Uniform deductible, renewal date
- Allows for predictability
The fundamentals of catastrophic coverage
- Windstorm deductible in coastal areas
- Hailstorms in Midwest reflected in rates
The most common mistake among investors
- Pay attention to premium but not deductibles
Connect with Bryan Multifamily Risk Advisors
Email bshimeall@multifamilyra.com
Resources Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Deal Maker LIVE
Michael’s Website
Review the Podcast on iTunes
As an aspiring real estate investor, you possess a spirit of independence as well as a desire for financial freedom. What if you could take that self-determination to the next level and essentially become your own bank? Patrick Donohoe is on a mission to teach you how to take control of your money with the Perpetual Wealth Strategy, taking advantage of a particular kind of life insurance policy to facilitate real estate investment, secure retirement funds, and build a legacy that you can pass on to your children.
Patrick is the president and CEO of Paradigm Life, a financial services firm committed to changing the way their clients look at life and wealth. The Paradigm team supports thousands of individuals and businesses in creating income for life and leaving a meaningful legacy. Patrick is a sought-after speaker in the realm of wealth management and investment, and he serves as the host of The Wealth Standard podcast. He is also the author of Heads I Win, Tails You Lose: A Financial Strategy to Reignite the American Dream.
Today, Patrick joins me to share the benefits of the Perpetual Wealth Strategy and explain how it serves as the foundation for fulfilling the true American Dream. He offers insight around how a specifically-designed whole life insurance policy works, why its interest rate is so much higher than a savings account, and how the policy gives you a line of credit to borrow against for investment purposes. Listen in for Patrick’s advice around leveraging the Perpetual Wealth Strategy to generate passive income, pass on a legacy, and take control of your wealth—the way the rich do!
Key Takeaways How Patrick came to start his business
- Mentored by Rich Dad advisor Kim Butler
- Stuck it out after partnership wiped out in 2008
Patrick’s definition of the American Dream
- Independence and freedom
- Greatest wealth built within person
The benefits of the Perpetual Wealth Strategy
- Whole life insurance policy with mutual company
- Designed for cash value accumulation
- Provision for insurance to give line of credit
- Grow without taxes, comes with coverage
The concept of liquid wealth
- Borrow against account (i.e.: real estate investment)
- Enables family to pass on liquid legacy
Who this type of policy is for
- Rich understand, know how to use
- Mindset only barrier to entry
The interest associated with a Perpetual Wealth policy
- Account holders own company, receive profit share
- Typically 4 to 6%
The power of the Perpetual Wealth policy credit line
- Can borrow entire amount (interest rate of 4 to 5%)
- Don’t have to qualify, loan not on credit report
How Patrick uses his own policy
- Hold cash reserves for personal and business life
- Rest used as opportunity fund to invest
- Use not dictated by anyone BUT you
- Make better decisions with access to alternatives
How a Perpetual Wealth policy serves as a passive income generator
- Longer you pay in, less risk to insurance company
- Interest earned in later years is compounded
- Consistency of income (not connected to volatility)
Connect with Patrick Paradigm Life
Resources Heads I Win, Tails You Lose: A Financial Strategy to Reignite the American Dream by Patrick H. Donohoe
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Deal Maker LIVE
Michael’s Website
Review the Podcast on iTunes
Real estate was a big winner in the tax reform bill passed in December 2017. So, how exactly do the new laws impact us as passive multifamily investors and syndicators? And how can we take advantage of the new regulations and use the available incentives to reduce the amount of money we owe the government?
Tom Wheelwright, CPA is the CEO of WealthAbility, a community of CPAs dedicated to reducing taxes and creating wealth for their clients. As a Rich Dad Advisor for Robert Kiyosaki, Tom is a well-known keynote speaker in the realm of wealth building and tax strategy. He is a regular contributor to publications including Forbes, The Huffington Post, Entrepreneur Magazine and Inman News, and Tom is the author of Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes.
Today, Tom joins me to explain how to shift the way you think about taxes, viewing the law as a roadmap to reducing how much you pay. He discusses the new laws around bonus depreciation, describing how both passive investors and syndicators benefit from the revised guidelines. Tom also shares the regulations around the 20% deduction and the changes in Section 179 that impact residential and commercial real estate investors. Listen in for insight around qualifying for the status of real estate professional and learn how to significantly reduce your taxes as a multifamily investor!
Key Takeaways How Tom came to start his own network of CPA firms
- Experience creating courses on reducing taxes
- Worked for Fortune 500 company, as ASU professor
- Founded own firm (goal to expand to 1K in 5 years)
How to shift the way you think about taxes
- Incentive for doing what government wants
- Professional investor can get to zero in few years
The new laws around bonus depreciation
- Real estate now qualifies with new/used equipment
- Cost segregation of contents, land improvements
- Example—30% of $1M investment = $300K
How the new tax laws affect passive investors
- Leverage 70% or more = no taxable cashflow
- Convert ordinary income to capital gains by investing in syndication
How the new tax laws may impact syndicators
- Hold carried interest for 3 years to get capital gains rates
- Consider 1031 exchange to plan for potential 3-year issue
The changes around the 20% deduction
- Applies to positive taxable income from real estate
- Example—earn $100K, only taxed on $80K
The changes to Section 179
- Deduction for new/used equipment applies to residential real estate
- HVAC units, fire/security alarms and roofs in commercial properties
How to qualify for the status of real estate professional
- Spend more than 750 hours during given year (15 hours/week)
- Spend more time than other business, investment activities combined
- Must meet qualifications every year and keep good documentation
The tax benefits of being a real estate professional
- No passive losses from real estate (active can offset any income)
- 8% Medicare tax doesn’t apply when sell property
- 20% rule only applies to real estate that is trade or business
Connect with Tom WealthAbility
The WealthAbility Show
Resources Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes, Second Edition by Tom Wheelwright, CPA
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
If the extent of your financial education involved learning how to be a good employee, trading your time for money, then you’re probably beginning to realize that you simply can’t save yourself into wealth. But how do the multimillionaires and billionaires among us grow their assets? What strategies do they implement to generate passive income—from multiple sources? Brian Fouts has identified the shared patterns among high-net-worth individuals, what he calls the 5 Pillars of Elevated Wealth, and he is on a mission to share this information with you and me.
Brian is the co-owner and CEO of The Elevation Group, an online membership platform that seeks to teach the world how to invest like the rich. Brian and his brother Jake are passionate about empowering people to create and grow wealth by way of financial literacy, and The Elevation Group affords access to a network of true expert advisors who can support you in implementing the investment strategies of the wealthiest among us.
Today, Brian sits down with me to share the 5 Pillars of Elevated Wealth. He explains how to generate supplemental income through a side hustle and put that money to work for you. Brian addresses the importance of safeguarding the money you have through entity protections and tax incentives. Finally, he describes how to acquire assets that generate passive income and why it’s smart to pursue multiple sources of revenue. Listen in for Brian’s advice around keeping your money in a life insurance vehicle and learn how The Elevation Group can help you build wealth by way of portfolio and passive income!
Key Takeaways How Brian got involved with EVG
- Started as member, blown away by vision
- Platform brings together expert advisors
- Financial education and empowerment
The 1st Pillar of Elevated Wealth: Do something different
- Create impact in world
- Generate income through side hustle
- Shift mindset away from trading time for money
The 2nd Pillar of Elevated Wealth: Take the money off the table
- Become own bank and put money to work
- Can take advantage of opportunities when presented
The 3rd Pillar of Elevated Wealth: Protect what you have
- Safeguard money through entity protections
- Pay less taxes (i.e.: rent home to business)
The 4th Pillar of Elevated Wealth: Acquire assets to earn passive income
- Build net worth and create cashflow
- Real estate, oil and gas, private lender, etc.
The 5th Pillar of Elevated Wealth: Pursue multiple sources of income
- Wealthy individuals have 7 on average
- No crisis if 1 decreases or goes away
The benefits of The Elevation Group platform
- 30-plus lessons in all 5 categories
- Expert advisors to help implement
- Monthly live events
The advantages of keeping your money in a life insurance vehicle
- Guaranteed returns of 4-6%
- Loan money to self for investments
Brian’s insight around the 3 sources of income
- Active, portfolio and passive
- Focus on portfolio and passive to build wealth
Connect with Brian The Elevation Group
Email brian@theelevationgroup.com
Resources Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Website
Podcast Show Notes
Review the Podcast on iTunes
What is the quickest route to financial freedom through real estate? Do not pass Go. Do not collect $200. Go directly to… Multifamily. But how do you overcome a lack of experience and capital to accelerate the timeline and jump straight into apartment building investing?
Josh Eitingon is the founder and manager of JAE Property Group, a real estate investment company specializing in 50- to 150-unit value-add multifamily properties outside the New York metro area. With the guidance of a coach, Josh made his first multifamily investment in 2012, and now he is up to eight deals. He began his real estate career while working as a software developer, eventually joining a Long Island investment group where he led the acquisitions team in securing $100M in real estate. Today, Josh is a full-time investor in his own right.
Josh joins me to discuss the early investment in a coach that facilitated his shortcut to multifamily. He addresses how he overcame a lack of experience to do his first 20-unit deal and the personal guarantee he made investors to raise $200K for the renovation. Josh explains what he loves most about multifamily investing, describing the challenge of finding a formula to optimize each new property. Listen in for Josh’s advice around investing in your own deals, choosing the right location, and scaling up a multifamily business.
Key Takeaways How Josh got started in real estate
- Hired coach to force action
- Multifamily made sense as asset class
Why Josh invested in a coach
- Working 9-5 for software company
- Long-term time, financial freedom
Why Josh went straight to multifamily
- Dumb luck + mentor’s help
- Ability to scale
How Josh overcame a lack of experience and money
- Partnered on distressed 20-unit in Cincinnati
- Raised $200K from family, friends and co-workers
How Josh overcame his reluctance to do the first deal
- Poor condition, no background in renovation
- Concerns around taking on debt
- Believed in deal, commitment to go all-in
The factors for success on Josh’s first deal
- Coach reinforced right path
- Good location, visibility
- Less than $10K/unit
How Josh raised $200K for the deal
- Talking up real estate for 6 months prior
- Personal guarantee at 9% interest
- $10K chunks
The additional risk of raising money in debt
- Bank loan for 80% + promissory notes
- ‘I carry burden, not investors’
How Josh’s first multifamily deal played out
- 20% occupancy, 0% economic occupancy
- Spent $5K/unit on interior renovations
- $50-70K on exterior, mechanical improvements
Josh’s subsequent multifamily investments
- One or two deals per year ever since
- 44- and 62-unit in same market
- 70-unit in Florida
What’s next for Josh
- 90-unit in Minneapolis under contract
- Continue on same path, 2-3 deals/year
What Josh loves about the business
- Creativity (partner, invest and find deals)
- Find formula to optimize each property
The challenges of scaling a multifamily business
- Source of equity
- Right partner for any given deal
Josh’s advice for aspiring multifamily investors
- Start saving money to invest in own deals
- Commit to ongoing education
- Right people around you (accountability)
Josh’s AHA moment around location
- Good schools, retail in area
- Allows for operational consistency
Josh’s top mistakes
- Could have done more deals
- Checks and balances on construction management
Connect with Josh JAE Property Group
Resources Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
The Ultimate Guide to Buying Apartment Buildings with Private Money
The Michael Blank Coaching Program
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
- Download
- Text “secretbook” to 44222
Michael’s Website
Podcast Show Notes
Review the Podcast on iTunes
‘The cost of my self-education was six figures in mistakes and seven [or] eight figures in lost opportunity.’
If you have a poverty mindset, investing money in a mentor or spending more for a qualified contractor seems like a burden. But if you have an abundance mentality, it becomes obvious that spending a little more up front for coaching and devoting your time to the activities that will grow your multifamily business result in higher revenue long-term.
Jack Petrick is the owner of Petrick Property Group, a real estate firm that specializes in multifamily acquisitions and improvements. He spent 15 years working as a firefighter in the Cleveland suburb of Strongsville, Ohio, before leaving to pursue real estate full-time. Jack’s team focuses on on- and off-market multifamily assets, and to date, he has 100-plus rental units in Ohio and Florida.
Today, Jack joins me to discuss his initial experience as a self-taught custom home builder. He shares the major shift that took him from a poverty mindset to an abundance mentality and describes how he would use his time differently if he could go back to those early days. Jack explains the importance of mentoring and masterminds, the concept of forced appreciation, and the decision to hire an assistant that doubled his revenue. Listen in to understand what inspired Jack’s shift to multifamily investing and learn how to follow in his footsteps—by way of a laser focus on raising capital, finding deals and improving processes.
Key Takeaways Jack’s introduction to real estate
- Rich Dad Poor Dad changed thinking
- Self-taught custom home builder
- Single family rental properties
Jack’s major mindset shift
- Poverty mindset (e.g.: hire cheap contractor)
- Abundance mentality to save money long-term
How Jack would use his time differently
- Invest in mentoring, masterminds
- Raise capital, deal flow and operations
What stopped Jack from leaving his job sooner
- Fear, thinking too small
- Listen to ‘free advice’
How Jack got clear on what’s important
- Time freedom to focus on family
- Change lives for investors
Jack’s insight around mindset
- Take action with right guidance
- Get beyond comfort zone
Jack’s transition to multifamily
- Walk-in medical clinic failed
- Buy and holds continued to cashflow
- Focus on pursuit of multifamily as option
The concept of forced appreciation
- Buy value-add property at discount
- Do renovation, tighten operations
- Increase occupancy and rent
- Value not contingent on market
Jack’s first multifamily deal
- Came across on Facebook
- 27-unit at 50% occupancy
- Financed through hard money lender
- Private investor to fund rehab
- Repair sewer line, renovate units
- Up to 100% occupancy
The value of hiring an assistant
- Fastest way to double revenue
- Focus on high-producing activities
What’s next for Jack
- Expand multifamily portfolio (100K units)
- Develop new multifamily properties
Connect with Jack Petrick Property Group
Jack on Facebook
Resources Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
Go for No! Yes is the Destination, No is How You Get There by Richard Fenton and Andrea Waltz
Syndicated Deal Analyzer
The Ultimate Guide to Buying Apartment Buildings with Private Money
The Michael Blank Coaching Program
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
- Download
- Text “secretbook” to 44222
Michael’s Website
Michael on YouTube
Podcast Show Notes
Review the Podcast on iTunes
The vast majority of us get into multifamily investing because we are hungry for time freedom. We want the flexibility to spend time with our families or travel or go to the gym in the middle of the day if we so choose. But many of us lose sight of that original goal in the pursuit of financial freedom. Our focus on earning money translates to doing ALL of the work ourselves, and before long, we are caught in an unsustainable cycle—doing tasks like bookkeeping and writing investor reports that undervalue our time and pull us away from the work only we can do: finding deals and raising money. So, how do we calculate the value of our time and make informed decisions about what to delegate? How do we hit the reset button and return our focus to the time wealth that inspired us to pursue apartment building investing in the first place?
Mark Dolfini is the founder of Landlord Coach, a mentoring program and business course for landlords and property managers. He is also the author of The Time-Wealthy Investor, Your Real Estate Roadmap to Owning More, Working Less, and Creating the Life You Want. Mark is on a mission to help multifamily investors realize the value of their time and design an intentional business that affords them both financial freedom and time wealth.
Today, Mark joins me to discuss his early interest in the idea of owning real estate and his gradual accumulation of 92 rental properties. He shares the mistakes he made in trying to do all the work himself that led to his Jerry Maguire moment in 2008 when he lost $4.5M overnight and ended up in the hospital with double pneumonia. Mark describes the mindset shift that helped him transition from self-employed to business owner and the VIP System he designed to create a sustainable real estate venture. Listen in for Mark’s insight on the concepts of life output and time wealth—and learn how to determine what your time is worth and delegate accordingly!
Key Takeaways Marks’s early interest in real estate
- Asked for real estate for Christmas as boy
- Bought 40 acres in AZ while in Marines
How Mark accumulated 92 rental properties
- Bought 12 while attending Purdue
- 30 when quit working as accountant ($6M)
- Made every mistake, no systems in place
- Doing all work ‘life was definition of hell’
Mark’s Jerry Maguire moment in 2008
- Drop from $65K in rent revenue to $30K
- Lost $4.5M in real estate overnight
- Worked more, developed double-pneumonia
How Mark transitioned from self-employed to business owner
- Intentional about setting up sustainable business
- Only do tasks that demo highest, best use of time
Mark’s VIP system
- Vision beyond making money
- Infrastructure = framework
- Process = rules of operation
The concept of life output
- Ability to control calendar
- Financial wealth as means to end
How to determine the value of your time
- Calculate current hourly wage (including travel)
- View as loss of $ when performing lesser tasks
Connect with Mark Landlord Coach
Landlord Coach on Facebook
Mark on LinkedIn
Resources The Time-Wealthy Investor: Your Real Estate Roadmap to Owning More, Working Less, and Creating the Life You Want by Mark B. Dolfini
The Judge: A Landlord’s Tale by Mark Dolfini
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
- Download
- Text “secretbook” to 44222
Michael’s Website
Michael on YouTube
Podcast Show Notes
There are five key phases in the multifamily investing process, and the property manager you hire plays a key role in nearly every stage. So, what should you look for in a property management company? And what KPIs can you use to assess the property manager’s performance?
Bryan Chavis is a thought-leader in the realm of multifamily property management and the bestselling author of Buy It, Rent It, Profit and The Landlord Entrepreneur. He is also the founder of The Landlord Property Management Academy, an online platform for real estate professionals and property management certification. Bryan was named one of the top 40 up-and-coming entrepreneurs under 40 by the Gulf Coast Business Review, and he is a sought-after speaker and consultant for some of the largest housing authorities in the US.
Today, Bryan sits down with me to share his journey, discussing the obstacles he has overcome and his unique approach to ‘embracing adversity.’ He walks us through the five phases of multifamily investment, discussing the current challenges around the acquisitions process and the fundamentals of the implementation stage. Bryan explains what to look for in a property management company and the Key Performance Indicators he reviews on a monthly basis. Listen in for Bryan’s insight on finding a property manager who is proactive and learn to relish the journey as a multifamily investor!
Key Takeaways Bryan’s introduction to real estate
- Job as leasing agent for free apartment
- Learned from private, institutional investors
Bryan’s key takeaways as a property manager
- Understanding of asset management, acquisitions
- Real-life experience as operator
What inspired Bryan to branch out on his own
- ‘Why not me?’
- Experience in all facets of multifamily
- Speaking career to develop business
The adversity Bryan had to overcome
- High school diploma, lack of capital
- Devastating brain tumor (no insurance)
Bryan’s approach to ‘embracing adversity’
- Character-building opportunity
- Share story to inspire others
Bryan’s 5 phases of a multifamily investment
- Acquisitions
- Implementation
- Stabilization
- Growth
- Exit strategy
The current challenges around acquisitions
- Standoff between buyers and sellers
- Wade through deals to find one that works
Bryan’s view of the implementation phase
- Establish procedures, consistency
- Software (e.g.: Buildium)
How to avoid mistakes during the acquisitions process
- Build margin of error into underwriting
- Focus on low cash multiple but high efficiency
What to look for in a property management company
- User-friendly, intuitive software platform
- Ability to manage every asset class
- Management plan specific to property
The difference between a proactive and reactive property manager
- Control income, expenses during stabilization
- Software, training allows to manage as business
Bryan’s approach to overseeing a property manager
- ‘Inspect what you expect’
- Walk property on regular basis
- Scrutinize KPIs monthly
Bryan’s Key Performance Indicators (KPIs)
- Rent rolls, maintenance tickets/budget
- P&Ls, delinquencies and turnover
- Traffic and closings
Bryan’s current mission
- Wake up and be appreciative
- Relish journey, relationships
Connect with Bryan Buy It Rent It Profit
Landlord Academy
Multifamily Facebook Group
Bryan on Facebook
Bryan on Twitter
Call 1-800-535-2476
Resources Buy It, Rent It, Profit: Make Money as a Landlord in ANY Real Estate Market by Bryan M. Chavis
The Landlord Entrepreneur: Double Your Profits with Real Estate Property Management by Bryan M. Chavis
Buildium
Michael’s Products
The Ultimate Guide to Apartment Building Investing
Michael’s Syndicated Deal Analyzer
Michael’s Deal Maker Mastermind
Financial Freedom Summit
Deal Desk
Deal Maker LIVE
Michael’s Coaching Program
Partner with Michael
Invest with Michael
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
You don’t necessarily need an enormous multifamily portfolio to achieve financial freedom. It is possible to start small and replace your income with modest holdings of just 20 units!
Aaron Howell is a small multifamily investor with Black Lick Holdings, a real estate firm based in Crozet, Virginia. With a portfolio of 22 rental units, Aaron has replaced his income as a pharmacist and now works part-time because he WANTS to, not because he HAS to.
Today, Aaron joins me to share his accidental introduction to real estate and when he was finally inspired to develop a strategic plan. He describes the light bulb moment when he realized the income potential of a duplex versus a single-family property and how he fostered the confidence to pursue multifamily despite a lack of experience. Aaron walks us through his first several deals, explaining how he financed the most recent 6-unit through a partnership. Listen in for Aaron’s insight around building in daily habits to stay motivated and learn how he achieved financial freedom with a small portfolio!
Key Takeaways Aaron’s introduction to real estate
- Bought townhouse in 2006
- Rented to cover mortgage after move
Aaron’s start in single family
- Opportunities in Las Vegas
- Desire to create passive income
What inspired Aaron to develop a strategic plan
- Got married in 2015 and closed on first duplex
- Realized upstairs rent covered mortgage
- Heard Michael on podcast and took course
Why Aaron was confident in small multifamily investments
- Same process with bank as single family
- Did well in Vegas despite lack of experience
- Solid team in place to support
How Aaron financed his first multifamily deals
- Home equity line of credit
- Relationship with local bank
- Sold Vegas properties (1031)
Aaron’s take on partnerships vs. syndication
- Pittsburgh property partnership among 4 investors
- Syndication in future to control deal
Aaron’s transition to working part-time
- Wants to work but doesn’t have to
- Weekends, evenings free
Aaron’s real estate plans for the future
- Scale up to larger properties
- Raise money through conversations
Aaron’s insight around financial freedom
- Shawshank Redemption moment
- Sense of confusion
Aaron’s advice for aspiring multifamily investors
- Do SOMETHING
- Build network
- Get familiar with market
How Aaron stays motivated
- Habit List app (e.g.: read 20 minutes, look at 15 listings)
- ‘20 units’ on chalkboard in kitchen
Connect with Aaron Aaron on BiggerPockets
Email ahowell7@hotmail.com
Resources Michael on the Joe Fairless Podcast
BiggerPockets
Redfin
Zillow
Habit List
Michael’s Products
The Ultimate Guide to Apartment Building Investing
Michael’s Syndicated Deal Analyzer
Michael’s Deal Maker Mastermind
Financial Freedom Summit
Deal Desk
Deal Maker LIVE
Michael’s Coaching Program
Partner with Michael
Invest with Michael
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Whether you are looking to become a multifamily syndicator or money raiser, it is difficult to get your foot in the door if you’ve never been involved in a deal. So, how do you build a resume without any experience or capital to speak of? The answer lies in partnerships with someone who’s done it before!
Danny Woodford is a Managing Partner at Mission Bay Investments, a multifamily investment firm with properties in the Mid-Atlantic, Southeast and Texas markets. Mission Bay is focused on value-add opportunities of 100-plus units, and the firm has closed on five deals of nearly 1K units to date. Prior to real estate, Danny served in the military, working to develop the space capabilities of the United States. He holds a master’s in real estate development from George Mason University.
Today, Danny joins me to explain what inspired him to retire from the military and pursue real estate. He walks us through his initial single family business model and the AHA moment that motivated his transition to multifamily. Danny offers the details of his first two multifamily deals in Richmond, Virginia, sharing the reasons why he continues to source deals despite the challenging market. Listen in for Danny’s insight around bringing a deal to a potential partner and learn how to build your multifamily resume by teaming up with someone who’s been there!
Key Takeaways What inspired Danny’s shift from the military to real estate
- No control over time
- Long commute, missed family events
How Danny found the time to get educated in real estate
- Designed plan with wife to replace income
- Research during commute, nights and weekends
Danny’s initial business model
- Build portfolio of single family rentals
- Fix and flips to finance renovations
Why Danny made the transition to multifamily
- Conversation with colleague at single family seminar
- Multifamily offers more in terms of efficiency, scale
- Financing more attractive (nonrecourse lending)
Danny’s first multifamily deal
- 40-unit apartment building in Richmond
- Found through broker relationship
- Purchased for $1.1M (one investor)
- Completed exterior, electrical work
- Sold for $1.5M in 1031 exchange
Danny’s second multifamily deal
- 98-unit purchased for $5.8M
- Syndication raise of $10M
- Rents $100 below market
Why Danny is finding deals despite a challenging market
- Resume of five multifamily deals (two under contract)
- Relationships with brokers, investors and lenders
The value of partnering as a money raiser
- Brought into management team
- Compensation for efforts, builds resume
Danny’s advice for aspiring multifamily investors
- Bring capital or deal to table
- Partner with experienced investor
- Go straight to multifamily
How to bring a deal to a potential partner
- Do homework on project (analysis, underwriting)
- Establish relationship with seller/broker
What Danny is looking for in money-raising partners
- Education and drive
- Experience raising money
Connect with Danny Mission Bay Investments
Call (661) 816-0335
Email daniel@missionbayinvestments.com
Resources LoopNet
Michael’s Products
The Ultimate Guide to Apartment Building Investing
Michael’s Syndicated Deal Analyzer
Michael’s Deal Maker Mastermind
Financial Freedom Summit
Deal Desk
Deal Maker LIVE
Michael’s Coaching Program
Partner with Michael
Invest with Michael
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
The attitude toward cannabis has shifted: 64% of Americans support the legalization of marijuana, 93% support medical consumption, and the drug is legal in nine states plus Washington, DC. By 2028, the cannabis space is projected to be a $60B industry. So, what does that mean for us as real estate investors? How can we take advantage of the need for property to grow, manufacture and sell cannabis products?
Leslie Plettner is the director of BaseCanna, a team of cannabis, legal, finance and real estate experts who provide the funding, infrastructure and property for cannabis entrepreneurs. Leslie is a long-time entrepreneur with extensive experience in real estate. She has developed and managed more than 500 units, including a mix of warehouse, multifamily and retail properties. Three years ago, Leslie anticipated the emergence of the cannabis industry and recognized its need for cannabis-friendly landlords, and the idea for BaseCanna was born.
Today, Leslie joins me to describe BaseCanna’s work in developing an ecosystem of cannabis operators and the market opportunity in the space for real estate developers. She shares the risks of cannabis real estate, both perceived and real, and explains how BaseCanna makes decisions around who to work with. Listen in for Leslie’s insight on the appreciation of a property once it’s licensed for cannabis and learn why now is the right time to get into cannabis real estate!
Key Takeaways The mission of BaseCanna
- Anchor development of cannabis ecosystem with real estate
- Support operator-members with compliance, legal issues, accounting & insurance
Leslie’s background as an entrepreneur
- Designed, transformed underperforming schools
- Shift to real estate when started family
BaseCanna’s current work
- Creating vertically integrated ecosystem (seed to sale)
- Vet municipalities, real estate and operators
The market opportunity in cannabis real estate
- Fastest growing since broadband internet
- Huge expansion in therapeutic consumption
- Shift in attitude (93% support medical use)
The myths around owning cannabis real estate
- Pothead tenants, criminal activity
- Civil asset forfeiture (landlords protected)
The real risks around owning cannabis real estate
- Must be in municipality regulated for cannabis
- Ensure tenant has license, pays taxes
- Property must be zoned for cannabis
- Be careful of green rush illusion
- OSHA fines, federal prohibition
How BaseCanna makes decisions around who to work with
- Right license for right product in right market
- Pay attention to overall market trends (i.e.: demand for manufactured products)
The appreciation on a property once it’s licensed for cannabis
- BaseCanna paid $1.8M for two warehouses
- Offers for $4.5M once repositioned
The permitting process for cannabis real estate
- Very involved, 200-page applications (SOP, demo capacity)
- Lawyers charge $40K to $75K to guide through process
Leslie’s advice on having an exit strategy
- First opportunity = create operational campus
- Immediate exit available once licensing in place
Leslie’s insight on getting in the cannabis game now
- Institutional money will come in with end of federal prohibition
- Real estate premiums will fall as more municipalities regulate
Connect with Leslie BaseCanna
Resources UCLA Study on Crime & Dispensaries
MAUCRSA
The Rohrabacher-Blumenauer Amendment
Michael’s Products
The Ultimate Guide to Apartment Building Investing
Michael’s Syndicated Deal Analyzer
Michael’s Deal Maker Mastermind
Financial Freedom Summit
Deal Desk
Deal Maker LIVE
Michael’s Coaching Program
Partner with Michael
Invest with Michael
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Anna Simpson’s philosophy is that you don’t make money in your comfort zone. Once she has achieved a goal, Anna finds a way to push her limits and look forward to the next. And when things start to get difficult, that’s when Ana knows she needs to keep digging: She’s getting closer to the gold.
Anna is a full-time accredited multifamily investor and deal sponsor with experience in property valuation, acquisition, rehabilitation, leasing and asset management. She got her start investing in single family buy and holds before making the decision to transition to multifamily as a passive investor. Anna personally invested in 1,300 multifamily units as an equity partner and key principal before she was ready for the next challenge of becoming a managing partner. Today, Anna has completed two multifamily deals: a 70-unit syndication and a 76-unit 1031 exchange.
Today, Anna sits down with me to share her decision to work ON the business rather than IN it by making the shift to multifamily. She explains how she leveraged her role as a passive investor to learn the fundamentals of syndication and the key challenge she faced in landing her first deal as managing partner. Anna offers insight around the value of persistence and breaking big goals down into smaller chunks. Listen in for Anna’s advice on pushing beyond your perceived limits and learn why she believes that while knowledge is important, true power lies in consistent ACTION.
Key Takeaways How Anna got involved with real estate
- Friends active in single family group
- ‘Success breeds success’
Anna’s initial investment strategy
- Single family buy and hold rentals
- Successful but difficult to scale
Anna’s shift to multifamily
- Working on New Year’s Eve
- Made decision to work ON vs. IN
- Got involved as passive investor
What Ana learned as a passive investor
- How to communicate with vendors, investors
- How to supervise rehab
- How to design, implement plan
Anna’s first multifamily deal
- Found off-market through relationships
- Syndicated 70-unit deal (23 passive investors)
- $4M purchase price, $1.4M raise in one day
Anna’s approach to goal-setting
- Identify where you are and where you want to be
- Break down into smaller goals (e.g.: one LOI/week)
- Work backwards and assess regularly
Anna’s key challenge in landing her first multifamily deal
- Overcame lack of track record with team
- Experience as investor in 1,300 doors
How the Law of the First Deal impacted Anna
- Second deal under contract 2 months after first
- Off-market deal through broker
Anna’s insight on the value of persistence
- Difficult times mean you’re getting closer
- Accept setbacks as part of journey
- Move forward to build reputation, respect
What Anna would do differently given the opportunity
- Start earlier with apartments
- ‘You don’t know what you don’t know’
Anna’s advice for aspiring real estate investors
- Learn through podcasts, groups, etc.
- Treat as business not hobby
- Consistent ACTION = POWER
- Work on mindset constantly
- Leverage passion on down days
How Anna navigates the down days
- Surround with supportive, optimistic people
Connect with Anna Anna’s Website
Resources Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
Michael’s Deal Maker Mastermind
Deal Desk
Deal Maker LIVE
Michael’s Coaching Program
Michael’s Products
Michael’s Syndicated Deal Analyzer
Michael’s Deal Maker Mastermind
Financial Freedom Summit
Partner with Michael
Invest with Michael
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Podcast Show Notes
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Alan Schnur was away on a business trip when a plane struck his office building, killing 40 of his 44 team members. In the aftermath of 9/11, Alan spent a lot of time questioning what he wanted out of life and the experience informed his drive for continuous growth. Because you never know when another plane is coming, Alan doesn’t believe in complacency. In fact, he makes it a point to reinvent himself every few years and take on new challenges in residential and commercial real estate.
Alan is a wildly successful real estate investor based in Houston, Texas. He began his real estate career rehabbing single family homes, owning a portfolio of 120 before making the transition to apartment buildings. Alan’s go-big-or-go-home mindset translated to multifamily, and he invested in 2K units across 18 complexes—AND founded a property management company that handled 7K units across 40 properties. Now he is taking on a new challenge in commercial real estate, investing in shopping centers along with medical, office and warehouse buildings. Alan is the author of three books on real estate investing, including The Cashflow Mindset: Millionaire, Billionaire & Zillionaire Designs for Financial Freedom & a Fulfilled Life.
Today, Alan joins me to share the story of his reawakening in the aftermath of 9/11 and explain how his skill set as a commodities broker translated to real estate investing. He speaks to the single family formula that dominated the first ten years of his career and his subsequent shift to apartment buildings during a trip to Japan that may or may not have involved saké. Alan describes his apartment addiction, discussing his best and worst multifamily deals as well as his reasons for pursuing syndication. Listen in for Alan’s insight on being flexible with geography and asset classes, taking on new challenges in commercial real estate, and stepping out of your comfort zone to take ACTION!
Key Takeaways Alan’s AHA moment
- Job as commodities broker on 101st floor of World Trade Center
- On business trip during 9/11, lost 40 of 44 team members
- Week in hotel room led to reflection, reawakening
- Move to Houston with company, rented condo in NYC
Alan’s experience with single family homes
- First purchase for $23K, profit of $100/month
- Bought one/month for 10 years (120 houses)
- Formula: Rehab, Rent, Refi, Repeat
Why Alan made the transition to multifamily
- Accumulated enough assets to quit job
- Bought 25 houses during trip to Japan
- Realized potential of apartment buildings
Alan’s first multifamily acquisition
- $40K down on 76-door building (owner financing)
- Generated more income than 100 houses
Alan’s ‘addiction’ to apartments
- Buy one every 90 days
- 18 complexes with 2K units
When Alan got involved with syndication
- Running out of money, wanted to share risk
- Started raising money on second or third complex
- Began with general partner at 30%, 70% for sale
- Work up to 40-50% for general partner
Alan’s best multifamily deal: The Bangkok Close
- 1031 buyer wanted 300-unit deal
- Invested $7M, sold for $14M
Alan’s worst multifamily deal
- Paid $5K/unit for 160-door complex
- School across street closed and knocked down
- Money from bank robbery hidden in sewer line
- Inspired shift to higher quality assets
Alan’s shift to commercial properties
- Apartments have variable costs (unpredictable)
- Triple net lease makes commercial predictable
- Business renting covers repairs, insurance/taxes
Alan’s shopping center deal in Boise, ID
- Bought six storefronts for $1M
- 50% discount (three vacancies)
- Closed at $2.4M
Alan’s outlook on asset classes
- Be flexible with geography, asset classes
- Try more things = better chance of success
Alan’s advice for aspiring real estate investors
- Put book down and get out to property
- Join networking group or pay for mentor
- Watch and learn by joining syndication
What Alan is excited about moving forward
- Retail syndication
- Education, helping others
Connect with Alan Alan’s Website
Resources The Cashflow Mindset: Millionaire, Billionaire, Zillionaire Designs for Financial Freedom & a Fulfilled Life by Alan Schnur
Books by Alan Schnur
LoopNet
International Council of Shopping Centers
National Apartment Association
National Real Estate Investors Association
Michael’s Coaching Program
Michael’s Products
Michael’s Syndicated Deal Analyzer
Michael’s Deal Maker Mastermind
Financial Freedom Summit
Partner with Michael
Invest with Michael
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
If you are new to the idea of raising money to invest in apartment buildings, the particulars of complying with SEC regulations may have you spooked. No one wants to inadvertently break the law and face restitution, sanctions, or worse—fines and jail time! The good news is, with an assist from an SEC attorney, it is not as difficult to comply with securities laws as you might think.
Mauricio Rauld is the founder and CEO of Premier Law Group, a boutique securities firm specializing in asset protection and SEC compliance. Mauricio has 18-plus years of experience helping multifamily investors increase and safeguard their wealth through syndications. He is a regular contributor to The Real Estate Guys Radio show and a faculty member of the Summit at Sea, a week-long conference for elite real estate entrepreneurs. In addition, Mauricio serves as legal advisor to The Real Estate Guys and asset protection advisor for The Elevation Group.
Today, Mauricio sits down with me to explain his role as a syndication lawyer. He discusses the two legal routes to SEC compliance, the idea of a ‘preexisting substantive relationship,’ and the consequences of breaking the law. Mauricio shares the difference between 506(b) and 506(c), describing the right way to use social media to connect with investors under each exemption. Listen in as Mauricio walks us through the process of working with an SEC attorney, including the general timeline and approximate cost for ensuring compliance with securities law.
Key Takeaways Mauricio’s role as a syndication lawyer
- Helps real estate investors scale business
- Raise money legally for bigger deals
What qualifies as a security
- Returns generated from your efforts
- Must comply with federal, state laws
The two legal routes to compliance
- Register with SEC (two-year process)
- Find exemption, follow rules
The consequences of not following the law
- Restitution—return money to investors
- Sanctions—prohibited from raising money
- Fines, jail time
Mauricio’s advice around disclosures
- Full disclosure required for non-accredited investors
- Not required for accredited investors ($1M net worth)
The benefit of using an exemption
- Creates safe harbor, certainty
- Preempts state law
The features of the 506(b) exemption
- Raise unlimited amount of money
- Up to 35 non-accredited investors
- Prohibited from advertising
The features of the 506(c) exemption
- Lifts prohibition against advertising
- Accredited investors only, reasonable steps to verify
The idea of a preexisting substantive relationship
- Citizen VC outlines nine points
- Deep conversation, questionnaire, credit report, etc.
How to use social media to connect with investors under 506(b)
- Talk about business in general terms
- Don’t discuss specific offer or prior deals
The process of working with an SEC attorney
- Work together on business plan, structure
- Lawyer drafts offering documentation
- Includes PPM, operating/subscription agreements
- 506(b) = investor questionnaire
- 506(c) = CPA letter or third-party verification
- Accept money only after documents returned
Mauricio’s insight around the timeline and general cost of compliance
- One week to draft docs once business plan complete
- Include $15K ‘legal and compliance’ line item in budget
Connect with Mauricio Premier Law Group
Email cs@premierlawgroup.net
Resources Citizen VC Letter
Verify Investor
Michael’s Coaching Program
Michael’s Products
Michael’s Syndicated Deal Analyzer
Michael’s Deal Maker Mastermind
Financial Freedom Summit
Partner with Michael
Invest with Michael
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Every human interaction is a negotiation. Whether you are communicating with employees, investors, friends or family, the language of give-and-take is at play. And the fact of the matter is, if you don’t ask, you don’t get. So, how can we leverage the ten commandments of negotiation to get more of what we want in the realm of multifamily real estate—and life in general?
Stefan Aarnio is an award-winning real estate investor, entrepreneur and author. He was named one of the Top 10 Real Estate Influencers to Follow by Entrepreneur magazine in 2017 and inducted into the Rich Dad International Hall of Fame in 2014. Stefan is the author of four books on real estate investment and negotiation, including X: The Ten Commandments of Negotiation.
Today, Stefan joins me to share the story of how he went from poor musician to millionaire real estate investor by becoming a student of negotiation. He walks us through his ten commandments of negotiation, explaining the importance of gathering information before you make an offer as well as having clearly written goals going into a negotiation. Stefan speaks to the idea of presenting an ‘offer of greater value’ and making people work for concessions. Listen in for Stefan’s insight around emotional decision-making and the key commandment of negotiation: Get what you want and get out!
Key Takeaways Stefan’s journey from poor musician to millionaire real estate investor
- Teaching guitar and playing gigs, not good life
- Predictable way to get rich in Rich Dad Poor Dad
- Author, Rich Dad International Hall of Fame
The importance of negotiation in real estate and life in general
- Part of every human interaction
- If you don’t ask, you don’t get
The cultural differences around negotiation
- Every culture has own style, boundaries
- Deconditioned in name of commerce in west
Commandment #1: Get what you want and get out
- Pushing for more can kill negotiation
Commandment #2: Adopt a pleasing personality
- Student with no egos, rivalries came out on top
Commandment #3: Prepare diligently and collect information
- Know facts in advance to make offer on-the-spot
Commandment #4: Know what you want and have clearly written goals
- Outline one major, three minor points (i.e.: price, terms)
Commandment #5: Gather information before making an offer
- Newbies tend to make offers too quickly
Commandment #6: Always present an offer of greater value
- People will pay premium for service that solves problem
Commandment #7: Do not give concessions freely
- Make people work for concessions, get something in return
Commandment #8: Take what they WANT, but give what they NEED
- Manage wants, recognize double standard in transactional negotiation
Commandment #9: Obey non-linear time in the negotiation process
- Time can move forward, backward or break (manipulate for advantage)
Commandment #10: Become a student of human nature and irrationality
- Reptilian brain makes emotional decisions based on fear and greed
How the dynamics of negotiation change when a broker is involved
- Don’t usually make things easier
- Deal with seller directly if possible
Connect with Stefan Stefan’s Website
X: The Ten Commandments of Negotiation
Resources Self Made: Confessions of a Twenty Something Self Made Millionaire by Stefan Aarnio
X: The Ten Commandments of Negotiation by Stefan Aarnio
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money—That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Blackbook Journal by Stefan Aarnio
Michael’s Coaching Program
Michael’s Products
Michael’s Syndicated Deal Analyzer
Michael’s Deal Maker Mastermind
Financial Freedom Summit
Partner with Michael
Invest with Michael
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
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Courage isn’t about being fearless. Courage is about feeling the fear but ‘saddling up anyway.’ When Peter Conti bought his first duplex, he admits that he was shaking. But Peter knew that he had to make a change to life the life he wanted, to be free from the humiliation of a boss who reprimanded him for drinking coffee meant for ‘customers only.’ Peter was highly motivated to leave his job as a mechanic and become a multifamily real estate investor, and that deep desire for financial freedom propelled him to take action.
Peter went from auto mechanic to self-made millionaire in just over three years, using creative financing to invest in both residential and commercial real estate. He started small, buying a duplex, a couple of 4-units, and a 12- and 24-unit before working his way up to shopping centers and 300-unit complexes. He has mentored thousands of investors all over the world and supported many more through his books on multifamily and commercial real estate investing.
Today, Peter sits down with me to describe the moment he decided to take charge of his own financial destiny. He walks us through that first investment in a duplex and the meeting at Chucky E. Cheese that inspired him to invest in a mentor. Peter offers advice around mitigating risk via exit clauses and acquiring property through seller financing or the use of a master lease. Listen in to understand Peter’s unique approach to recovering from a serious motorcycle accident and what he learned in the process that applies to multifamily investing specifically—and life in general!
Key Takeaways The turning point that propelled Peter into action
- Working as auto mechanic in Denver
- Fingers numb from cold, reprimanded for coffee
- Made decision to be in charge of own financial destiny
Peter’s first investment in a duplex
- Found real estate agent
- Took advantage of 5% down for investors through HUD
How Peter got over the hump to make his next investment
- Meeting with life insurance agent, realized ‘spinning wheels’
- Invested $5K in training with mentor
Peter’s advice around mitigating risk
- Attach ‘Addendum A’ to contract (fully assignable)
- Ask for 10 business days once documents provided
- Allows to make offer first, then do due diligence
Peter’s guidance around seller financing
- Target motivated sellers, C class properties
- Ask seller if willing to carry some of financing
- Set meeting to build rapport, share track record
Peter’s approach to getting started in commercial real estate
- Start with apartment buildings (4-, 6- or 10-unit)
- Consider using master lease to acquire property
What Peter learned in recovering from his motorcycle accident
- Hiking Appalachian Trail gave time to reflect
- Enjoy every moment to fullest, appreciate process
- Break big projects into chunks
What’s next for Peter
- Learning to play piano
- Support wife in startup
- Limited one-on-one coaching
Peter’s top advice for aspiring real estate investors
- It’s not about wealth, it’s about freedom
- Find way to enjoy journey
How Peter wants to be remembered
- Fully present for friends and family
- Playful, fun and encouraging
Connect with Peter Peter’s Website
Free Copy of Peter’s Book
Resources Making Big Money Investing in Foreclosures Without Cash or Credit by Peter Conti
Making Big Money Investing in Real Estate: Without Tenants, Banks, or Rehab Projects by Peter Conti and David Finkel
Commercial Real Estate Investing for Dummies by Peter Conti and Peter Harris
Wild: From Lost to Found on the Pacific Crest Trail by Cheryl Strayed
1 Simple Strategy to Escape the 9 to 5 by Peter Conti
Michael’s Coaching Program
Michael’s Products
Michael’s Syndicated Deal Analyzer
Michael’s Deal Maker Mastermind
Financial Freedom Summit
Partner with Michael
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Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
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“It’s these little things that we do every day that get us closer. I remember climbing a mountain in high school, and the guide told us, ‘Don’t look at the summit. Focus on putting one foot in front of the other, and the summit will take care of itself.’ That’s exactly how I treat business. As long as I know I’m on the right mountain—which I firmly believe is multifamily—I come in here every day and focus on putting one foot in front of the other.”
Ivan Barratt is the founder and CEO of Barratt Asset Management, a real estate investment and management company out of Indianapolis that specializes in the acquisition, redevelopment and management of multifamily apartment communities. Since forming the firm in 2010, Ivan has raised tens of millions in equity, acquired 2,700 units, and grown BAM to a best-in-class management company, boasting $100M in assets under management.
Ivan joins me to explain how he started small with a duplex and 6-unit property, financing deals with hard money loans. He discusses his gradual transition to larger deals, describing his approach to raising capital by building trust with potential investors in the business and medical communities. Ivan shares his ‘mortal sins of multifamily’ as well as the game changers that have allowed him to scale up to 2,700 units. Listen in for Ivan’s advice around doing little things every day to prepare for your career as a multifamily investor!
Key Takeaways How Ivan got his start with a duplex
- Put down as little as possible
- Lived in one side, rented other
- ‘Journey of $10K units starts with first deal’
What Ivan would do differently given the opportunity
- Go straight to 20-, 30- or 40-unit deals
- Takes same effort to close small deal as large one
- Track record and momentum are most important
How Ivan got started with hard money loans
- Small multifamily opportunities in market
- Great lender put up cash for acquisition, renovation
Ivan’s early 6-unit deal
- Evaluated using simple flipper equation
- Bought for $150K, $100K in renovations
- Refi nine months in to put high-interest debt to rest
- Sold for $350K
How Ivan transitioned from hard money to raising capital
- Built large pipeline of contacts, ask for referrals
- Conversations with people in business and medicine
Ivan’s approach to building relationships with investors
- Get to know people through common interests
- Explain what you do and treat people well
- Deliver value, educate on what good deal looks like
- Network multiplies on its own over time
Ivan’s ‘mortal sins’ of multifamily
- Tried to renovate project out of cashflow
- Viewed property management co as profit center
Ivan’s AHA moment after the crash
- Rereading Rich Dad… reinforced cashflow as king
- Realized need to build model and scale
- Reduced risk for WHEN market changes, not IF
The game changers that have allowed Ivan to scale
- View property management arm as a necessary machine (not a profit center)
- Bring in a partner for sweat equity, combined forces greater than the sum of parts
Ivan’s advice for aspiring multifamily investors
- Get educated through podcasts
- Underwrite 100 deals on LoopNet
- Set networking goals (investors, brokers and team)
- Do little things every day to prepare
Why Ivan continues to grow and scale his business
- Driven by possibilities, freedom
Ivan’s perfect day on Gulf Shores
- Up before sun to workout
- Mission-critical emails/calls, check in with partner
- Day on beach or at pool with family
Connect with Ivan Barratt Asset Management
Call (317) 762-2625
Resources Rich Dad Poor Dad: What the Rich Teach Their Kids About Money—That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
LoopNet
Ivan on BiggerPockets
Michael’s Products
Michael’s Syndicated Deal Analyzer
Michael’s Course
Michael’s Deal Maker Mastermind
Financial Freedom Summit
Partner with Michael
Invest with Michael
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
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Before Tim Hubbard purchased and renovated his small multifamily property in Memphis, Tennessee, the long-term rents ranged from $350/month for the studios to $700/month for the two-bedroom unit. After the renovations, complete with furnishings and Airbnb-ready locks and amenities, Tim began earning revenue of $2,500/month—PER UNIT! How did he do it? What made this particular property perfect for the short-term rental market? Is the Airbnb model right for you?
Tim Hubbard began his career in the hospitality industry before making the transition to real estate. He is passionate about travel, and the Airbnb model allows Tim to visit dozens of countries around the world—while providing the opportunity for others to do the same. Tim serves as the Director of Operations for Midtown Stays, a vacation rental company with properties in both Memphis and Sacramento, California.
Tim sits down with me to explain how he got involved in the worlds of real estate and Airbnb. He describes his experience purchasing and renovating an 8-unit in Memphis for short-term rental, discussing how much he invested in the property, what it took to make the apartments Airbnb-ready, and how he financed the deal through a local bank. Listen in for Tim’s insight around managing Airbnb properties remotely and learn what factors to consider in choosing vacation rental property!
Key Takeaways Tim’s experience with Airbnb
- User since 2012, began hosting in 2015
Tim’s background in real estate
- Wanted to pursue travel, started investing in 2010
Tim’s 8-unit property in Memphis
- Staying in Airbnb on same street
- Found large colonial in Midtown
- Vacated entire building to renovate
How Tim financed the venture
- Commercial loan from local bank
Tim’s backup plan should new regulations restrict Airbnb
- Go back to long-term rental
The extent of the renovations on Tim’s property
- Built in 1912, needed top-to-bottom overhaul
- Updated plumbing/electrical, structural work
- Seller replaced roof as part of deal
How much Tim invested in the property
- Bought for $270K
- $200K in renovations, furniture
The revenue from rent before and after
- Long-term rents ranged from $350 to $700/month
- Airbnb income per unit after was $2,500/month
How Tim made the units Airbnb-ready
- Installed digital locks
- Provide guest essentials (i.e.: iron, kitchen appliances)
How Tim manages the units
- Software, reservation system in place
- Housekeeping and maintenance staff
- Full-time manager local to Memphis
How Tim can market the units on multiple sites
- Use ChannelManager to syndicate
- Sync calendars to prevent double-bookings
What’s next for Tim
- Explore other markets, purchase more in Memphis
- Pursue master lease model to scale faster
Tim’s insight around considerations for short-term rentals
- Airbnb guests looking for unique experience
- Walking distance from local attractions
- Landlord-friendly, turnkey markets (e.g.: Memphis, Indianapolis)
Connect with Tim Midtown Stays
Email tim@midtownstays.com
Resources Tim’s Before & After Photos
Nav Athwal on Apartment Building Investing
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money—That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Guesty
Airbnb
VRBO
HomeAway
ChannelManager
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
- Download
- Text “secretbook” to 44222
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Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
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No one wants to lose their shirt—or anything else for that matter—in multifamily investing. But it’s easy for inexperienced syndicators develop an emotional bias and conflate the numbers in order to make a deal look good to potential investors. And passive investors new to the game typically focus on returns, when their first question ought to be about the risks involved. Conservative underwriting is the key to risk management for syndicators and investors alike… But how do you ensure that the numbers are reasonable? What questions should investors be asking? And how can you tell when a syndicator is too aggressive?
Omar Khan is a Chartered Financial Analyst with Boardwalk Wealth, a private equity firm based in Dallas, Texas, that connects international investors with multifamily opportunities in the southern US. Omar is responsible for raising capital, strategic planning, the development of underwriting models, and investor relations. He has 10-plus years of global investment experience, and Omar has participated in capital financing and M&A transactions valued at $3.7B.
Omar joins me to explain how to identify aggressive underwriting and ensure the accuracy of the numbers used in a particular model. We cover conservative guidelines for reserves and loan terms as well as the importance of planning for worst-case scenarios. Listen in for Omar’s insight around what to look for in a syndicator, how to leverage a sensitivity analysis, and the exit strategy questions an investor should ask—and a syndicator should be prepared to answer!
Key Takeaways Omar’s background in finance
- Ten years investing experience
- Raise capital, develop underwriting models (large syndication deals)
How to identify aggressive underwriting numbers
- Unreasonable rent growth projections (4% max)
- Overly ambitious rehab plans
How to ensure accuracy of numbers used in model
- Ranges rather than specific numbers
- Sponsor solicits several data sources
What Omar looks for in the cap rate at exit
- 50-200 basis points higher (3-5 year term)
The internal systems questions passive investors should be asking
- Frequency of communication with sponsor
- Auditing of financial statements (who, how often)
- Systems, resources to resolve problems
The qualities Omar is looking for in a syndicator
- Admit to mistakes rather than blaming others
- Plan for solving potential problems
Omar’s insight around communicating with investors
- Monthly email to relate progress
- Quarterly, annual in-depth reports
- Open and honest when mistakes made
Omar’s advice around conservative loan terms
- Avoid 12-24 month refi
- As long term as possible (even if slightly higher interest rate)
- First question should address risk rather than returns
Omar’s approach to bridge loans
- Don’t touch unless very experienced
- Get out as quickly as possible (12 months)
- Shouldn’t worry about running out of cash
The most conservative underwriting guidelines for reserves
- $1K per unit, one month operating reserves
- Take reserves out of cashflow ($250/unit/year)
- Ensure syndicator has access to financing
The importance of planning for worst-case scenarios
- Use modeling to develop Plan B, C & D
How the passive investor can leverage a sensitivity analysis
- Analyze variables (i.e.: holding period, interest rates)
- See where IRR, exit cap lies in different scenarios
Omar’s advice on the exit strategy questions to ask syndicators
- When/to whom might we sell?
- Do you have relationships with lenders for refi?
Connect with Omar Boardwalk Wealth
Email omar@boardwalkweath.com
Call (214) 727-8643
Resources Rentometer
CoStar
Invest with Michael
Partner with Michael
Michael’s Course
Financial Freedom Summit
Podcast Show Notes
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
- Download
- Text “secretbook” to 44222
Review the Podcast on iTunes
Michael’s Products
Syndicated Deal Analyzer
Contact Michael
Michael on LinkedIn
Financial Freedom Summit
Partner with Michael
Invest with Michael
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
‘It is in your moments of decision that your destiny is shaped.’
--Tony Robbins
In my experience, once you truly decide to pursue multifamily investing, it will take 3 to 18 months to do your first deal. In 3 to 5 years, you will have replaced your income and quit your job. And the entire process is set in motion via the Law of the First Deal.
Today, I’m unpacking the powerful Law of the First Deal. I start with its basic principles, offering case studies of podcast guests who were able to replace their income within 3 years and quit their jobs via multifamily investing. I explain why the Law of the First Deal works, describing how investors become deal (and money!) magnets soon after their first closing.
Finally, I walk you through the steps necessary to develop a concrete plan, calculating how long it will take to quit your job—based on your individual Rat Race Number. Listen in for insight on how to leverage the Law of the First Deal to replace your income with multifamily!
Key Takeaways The principles of the Law of the First Deal
- First deal is smallest, most difficult
- Second and third follow in rapid succession
- Replace income within 2 to 3 years
Case studies of the Law of the First Deal
- Drew Kniffin: 12 months to replace income
- Brad Tacia: 2 years to replace income
- Tyler Sheff: 12 months to replace income
- Joseph Gozlan: 2½ years to replace income
Why the Law of the First Deal works
- Magnet for deals, brokers approach with pocket listings
- Magnet for money, investors who missed out want in
- Deals get bigger as comfort zone expands
How long it takes to quit your job
- Determine average income per unit
- Establish how many units you need to cover living expenses
- Determine how long it will take
- Determine size of first deal
The typical Law of the First Deal timeline
- First deal in 3 to 18 months
- Second deal within 6 months
- Third deal within 6 months
- Total of 1 to 3 years
The value of establishing a concrete plan
- Focus on first deal, avoid overwhelm
Resources ABI EP027 Drew Kniffin
ABI EP 073 Brad Tacia
ABI EP072 Tyler Sheff
ABI EP078 Joseph Gozlan
Michael’s Products
Syndicated Deal Analyzer
Contact Michael
Michael on LinkedIn
Financial Freedom Summit
Partner with Michael
Invest with Michael
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Would you be willing to make 4,500 agonizing phone calls to land your first property? How about going to the trouble of analyzing 100 deals to find one good one? It goes without saying that we have unparalleled opportunities here in the US, but success is unlikely to fall into your lap. So, if you are looking to become a successful multifamily investor, you have to START: Learn to analyze deals properly and get one done.
Andrew Cushman is the principal of Vantage Point Acquisitions, a multifamily investment firm out of Southern California. Andrew has a BS in Chemical Engineering from Texas A&M University, and he worked for a Cargill Foods for seven years before leaving the corporate world for real estate investment. He completed 24 profitable single family flips before making the transition to apartment building acquisitions in 2010. Since then, Andrew has successfully syndicated 1,800 units that continue to provide investors with strong returns.
Today, Andrew joins me to share his story, explaining how an article in the Wall Street Journal inspired his real estate career and why he made the transition from pre-foreclosure flips to multifamily. He walks us through his first deal, a 92-unit property in Macon, Georgia, discussing his mistakes around failing to vet investors and underestimating renovation costs. Andrew offers advice for aspiring investors on beginning with the end in mind, building a network of investors, and partnering for instant legitimacy. Listen in for Andrew’s insight into the benefits of B properties and learn why finding a good deal in the current climate is challenging—but not impossible!
Key Takeaways How Andrew got into real estate
- Chemical engineering degree
- Tried other businesses
- Article in WSJ re: flipping houses
- Four years in single family (pre-foreclosures)
Andrew’s shift to multifamily
- ‘Only as good as last flip’
- Looking for true financial freedom
Andrew’s first multifamily deal
- Hired mentor as guide
- 92-unit deal in Macon, GA
- 75% vacant, built in 1960’s
- All-cash syndication ($1.2M raise)
How Andrew financed his first deal
- Failed to vet investors, lost ¾ of $800K
- Reached out to entire network
- Extended closing three times
- Seller agreed to carry $200K note
- Raised just enough to close
- Continued to raise for renovation
What Andrew learned from his first deal
- Properly screen neighborhood
- Better estimate rehab costs
- Better track rehab spending
- Hire right contractors
Andrew’s advice around doing your first deal
- Choose deal just outside comfort zone
- Begin with end in mind, work backwards
- ‘Don’t buy in the hood’
- Don’t underestimate rehab costs
- Learn to analyze deals and get one done
Andrew’s take on the challenge of finding a great deal
- Must be willing to analyze 100 to find one
- Don’t look for home run on first deal
Andrew’s insight for aspiring investors who lack capital
- Start analyzing deals
- Build network of potential investors (sample deal)
The value in partnering
- Saves from mistakes
- Creates legitimacy
- Go farther, faster
Andrew’s advice to his 22-year-old self
- Go straight into multifamily
- B properties = highest return with least effort
Andrew’s perfect day
- Surf in morning
- Work at home office
- Meet wife for lunch
- Family dinner
- Work in evening
What Andrew is looking forward to
- Deal with colleague met at conference
- Climb, ski Mount Shasta
Connect with Andrew Vantage Point Acquisitions
Andrew on LinkedIn
Andrew on BiggerPockets
Resources LoopNet
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Michael’s Ultimate Guide to Apartment Building Investing
Syndicated Deal Analyzer
Financial Freedom Summit
Partner with Michael
Invest with Michael
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
At the heart of every successful entrepreneur is a deep sense of spirituality. There is strength in developing a relationship with the higher power, and you must get your ‘being’ right before you can do something truly meaningful.
I recently saw Robert Kiyosaki speak on The Real Estate Guys cruise, and his talk reminded me of the connection between my success as an entrepreneur and my faith. Today, I’m sharing the three spiritual lessons that changed my life and brought me to the work I do now, teaching others to raise money and achieve financial freedom through apartment building investing.
I start by sharing my early success with the software startup webMETHODS, explaining how that experience created the illusion that I was in control of my own destiny. Then I describe the challenges I have faced as an entrepreneur and the three lessons I learned around giving up control, finding peace regardless of the circumstances, and shifting to a mindset of giving. Listen in for insight on the relationship between success and spirituality and learn to step out in faith—and realize an incredibly fulfilling life!
Key Takeaways The concept of Be Do Have
- Must get ‘being’ right before accomplish something of meaning
- Involves character, relationship with God
My early success in tech
- Joined webMETHODS software startup in 1997
- Company had most successful IPO in history
Spiritual Lesson #1: You are not in control
- Left job in 2005 to pursue passive income
- Bought three restaurants, losing money
- Realized couldn’t control outcome despite best efforts
- Surrendered control and sales increased by $4K in four weeks
Spiritual Lesson #2: Find peace regardless of the circumstances
- First apartment deal in 2011
- ‘Professional tenant’ sued in housing court every six weeks
- Attorney fees, fines and no rent coming in
- Found sense of peace and tenant dropped all charges
Spiritual Lesson #3: Shift to a mindset of giving
- Profit margins on restaurants shrinking in 2013
- Had to let VP go, running pizzerias myself
- Losing $10K/week, all money deployed
- Spent time reflecting on when felt most alive
- Idea to start online business teaching multifamily
- Motivation to help others brought success
The relationship between success and spirituality
- Relationship with God provides strength
- Great things happen when step out in faith
Resources The Real Estate Guys Events
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Damion Lupo on Apartment Building Investing
The Untethered Soul: The Journey Beyond Yourself by Michael A. Singer
Uganda Counseling and Support Services
Financial Freedom Summit
Partner with Michael
Invest with Michael
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Mario Ortiz’s first multifamily deal wasn’t a homerun. Would he do things differently, knowing what he knows now? Maybe wait for a better deal to come along? Mario says no, arguing that ‘getting in the game’ is more important than the size or quality of the first deal. In fact, he lives by the adage that the ‘opportunity of a lifetime’ comes about once a month. The thing is, you have to be looking for it.
Mario is a mechanical engineer from El Paso, Texas. He has managed to build a thriving real estate business while working full-time in the oil industry—without employing syndication. A self-made, resourceful entrepreneur, Mario finds a creative way to finance each new multifamily property, and he made a cool $4M on the refi of his most recent investment!
Mario sits down with me to explain how the unpredictable nature of the oil and gas industry inspired him to pursue real estate. He shares his initial plan to invest in single-family properties and the overwhelm he experienced self-managing 10 homes on top of his full-time job. Mario walks us through his first multifamily deal, describing his luck in establishing rapport with a local bank and what he learned by self-managing the 17-unit property. He discusses the creative ways he financed his second and third multifamily deals, a 90-unit in Houston and a 180-unit in Fort Worth. Listen in for Mario’s insight around ‘getting in the game’ and learn how the refinance of his 180-unit is allowing him to quit his engineering job and travel with his family
Key Takeaways Mario’s background
- Mechanical engineer in oil industry
- Concerns about stability of job
- Started with single-family homes
- ‘Graduated’ to multifamily
Mario’s initial real estate plan
- 25-30 single-family rentals
- Replace income in case of layoff
Why Mario’s plan changed
- Overwhelmed by management of 10
- Comfortable in full-time job
Mario’s first multifamily deal
- Found 17-unit in La Marque on Loopnet
- Established relationship with local bank
- Hired part-time onsite office manager
Why Mario chose to self-manage
- ‘Hands-on guy’
- Cognizant of bottom line
- Learned leases, eviction processes
- Gained understanding of multifamily law
Mario’s second multifamily deal
- 90-unit deal in receivership in Texas City for $1.2M
- Put 17-unit on Loopnet as owner finance
- Borrowed from 401(k)
- Hired manager to help get rid of bad element
- Sold 18 months later for $2.4M
Mario’s third multifamily deal
- 180-unit deal in Fort Worth for $3.65
- Enamored by deal, ignored warning signs
- Lost $20K/month for first eight months
- Economic occupancy 65%, physical occupancy 85%
How Mario made the 180-unit profitable
- $400K in cash reserves
- Got rid of tenants not paying (65%)
- Rehab took three years
The refinance of Mario’s 180-unit property
- Valuation at $10.9M (75% LTV)
Mario’s plan moving forward
- Actively looking for properties in $10-15M range
- Invest proceeds from refi in another property
Mario’s plans to leave his full-time job
- Challenge to give up perceived benefits
- Looking forward to running real estate business
- Opportunity to travel with family
Mario’s parting advice
- Starting more important than size/quality of deal
- ‘Get in the game’
Connect with Mario Email mortiz9991@yahoo.com
Resources Loopnet
Financial Freedom Summit
Partner with Michael
Invest with Michael
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
What’s differentiates a successful multifamily real estate investor from someone who dreams of financial freedom but doesn’t take action? Todd Fox contends that a willingness to fail is what sets him apart and that his failures have helped him learn, grow and gain the confidence to go out and create the next big opportunity.
Todd is the CEO of Visum Development Group. In the last 15 years, Todd has developed $35M in projects in the Ithaca metro area, and he oversees all aspects of the firm’s projects from concept formation to long-term stabilization. Visum specializes in new construction and the redevelopment of residential properties, working to maximize returns while mitigating risk for investors. The company offers a range of luxury student housing, residential and commercial investments, and they are currently working on a 207-bedroom student housing project for Cornell University worth $37M.
Todd joins me share his journey from bankruptcy to successful developer, discussing how that dark time inspired him to pursue real estate full-time. He explains how he got his start with duplexes, purchasing his first property at auction and doing an incredible amount of legwork to find the second property—three years later. Todd describes his original intention to scale up to ten duplexes and how his dreams got bigger as he gained confidence and secured a network of investors. Listen in for Todd’s insight on following your heart, learning from failure, and setting small goals to build momentum.
Key Takeaways Todd’s path to real estate development
- Quiznos franchise for three years
- Bought property at auction, redevelop as duplex
- Internet startup in NYC
- Eight years of full-time real estate
What inspired Todd to pursue real estate full-time
- Making $20K/year on duplex
- ‘What if I owned 10?’
Todd’s painful experience with bankruptcy
- Personal guarantee on Quiznos lease
- Next owner stopped paying rent
- Sued for $482K
- Questioned path of entrepreneurship
How Todd overcame the inability to secure a bank loan
- Confident in ability to build product, find deals
- Promised partner double usual return in exchange for financing
How Todd found his next deal
- Looked through tax maps for parcels
- Letters, door-knocking
- Found house and double-lot worth $500K for under $300K
- Rented house, built two new duplexes on lots
Todd’s decision to scale beyond ten duplexes
- Mastered renovations, duplexes
- Opportunity to build six-unit
- Raised $750K, on-time and on-budget
- Now working on $37M building
The organic way Todd built a network of investors
- Father of tenant in first duplex in student housing business
- Reached out with interest in investing, hit it off
- Brought in friends as deals grew
Todd’s approach to raising money
- Properties under contract before money raised
- Ability to flip contract in worst-case scenario
- Trust investors to support (calculated risk)
Todd’s advice for aspiring real estate investors
- Learn from failure, gain confidence
- Follow your heart, do what you love
- Don’t be afraid to fail
Todd’s insight on what sets successful entrepreneurs apart
- Understanding that it’s okay to fail
- Willingness to do things that are uncomfortable
- Set small goals and build momentum
- Don’t wait for big opportunity, go out and create
Connect with Todd Visum Development
Visum on Facebook
Visum on Instagram
Resources Financial Freedom Summit
Partner with Michael
Invest with Michael
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
The two biggest issues multifamily owners face are turnover and resident satisfaction. If a property is not at full occupancy, your bottom line takes a significant hit. How can you address both of these issues and create a community in your apartments that makes residents want to stay, even if the rents go up?
Pete Kelly is the CEO of Apartment Life, a faith-based nonprofit motivated by a commitment to building relationships and community. Apartment Life serves the multifamily industry, redefining the resident experience in order to increase retention, improve tenant satisfaction, and enhance the community’s online reputation.
Pete sits down with me to share his background in the nonprofit world, explaining the basics of Apartment Life as an organization. He discusses the research around loneliness and public health, customer engagement and brand loyalty, and the economic impact of the CARES Program. Pete offers the specifics of what the CARES and Workforce Housing teams do to engage residents and how the faith-based roots of the organization impact their mission. Listen in for Pete’s insight on building a community that is good for the human soul AND the bottom line.
Key Takeaways Pete’s background in the nonprofit world
- 24 years with organization serving young people
- Two years as CEO of Apartment Life
The fundamentals of Apartment Life
- Relationships good for soul AND bottom line
- Friendships increase chances of staying
- Team hosts events, creates ‘sticky community’
The research around loneliness and public health
- 26% more likely to die if feel lonely
- As bad as smoking, obesity
The business research around connection and engagement
- Emotionally connected customer 52% more valuable
- Spend more money more often, loyal to brand
How friendships affect a resident’s willingness to stay
- Seven friends in complex = twice as likely to renew
- Neighbors themselves are amenity
The financial benefits of the CARES Program
- $138K annual value to owner
- 3 renewals/month
What the Apartment Life teams do
- Usually husband/wife team that lives on-site
- Events to connect residents
- Opportunities to care (e.g.: baby gift, ride to airport)
- Visit tenants 90 days before lease renewal
- Build positive online presence for community
The cost of the CARES Program for owners
- Provide 2BR/2BA unit for CARES Team
- Management fee of $650 to Apartment Life
- Budget for events ($2/door)
- Best for A/B Class properties, at least 250-units
The alternative Workforce Housing Program
- Class C properties in lower income communities
- Team lives off-site, paid hourly
- Manages requirements for LIHTC
The faith-based element of Apartment Life
- ‘Love thy neighbor’
- Recruit teams from local churches
- Follow Fair Housing Act guidelines
The mission of Apartment Life
- Dramatic impact on residents’ lives
Connect with Pete Apartment Life
Email petekelly@apartmentlife.org
Resources ‘Why Loneliness May Be the Next Big Public-Health Issue’ in Time
‘Loneliness and Social Isolation as Risk Factors for Mortality’ in Perspectives on Psychological Science
‘The New Science of Customer Emotions’ in Harvard Business Review
CARES Program Financial Impact Analysis
Low-Income Housing Tax Credit Guidelines
Fair Housing Act
Financial Freedom Summit
Partner with Michael
Invest with Michael
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
When Mike Hambright first got into real estate investing ten years ago, he was hesitant to meet his competition. But Mike is an extrovert by nature, and after having coffee with a fellow investor, his perspective shifted. Now he advocates an abundance mentality, and Mike firmly believes that meaningful conversations with high-level players can take your game to the next level. So how do you build a network of investors you respect who can help you learn and grow?
Mike is the Chief Nerd at FlipNerd, a leading resource and social platform for real estate investors with more than 100K subscribers and 1500-plus video shows published to date. He is also the Owner and President of Evolution Properties, a multimillion-dollar firm focused on residential real estate in the Dallas market. Mike has an abundance mentality and a knack for networking, serving as a mentor to aspiring investors and founding the Investor Fuel mastermind.
Mike joins me to discuss his shift from the corporate world to full-time real estate investing, explaining how his wife inspired him to quit dabbling and go all-in in the summer of 2008. He shares his pursuits beyond investing, including his talent for connecting people through the FlipNerd platform. Mike gets granular on the value of a thriving network, describing the opportunities to do deals together and how connections can take your game to the next level. Listen in for Mike’s advice around expanding your real estate network and building meaningful relationships to accelerate your success.
Key Takeaways Mike’s shift from corporate to real estate
- Entire team fired from large retail company
- Moved to DC, company filed for bankruptcy
- All-in on real estate summer of 2008
Mike’s ‘go big or go home’ mentality
- Burning through capital, COBRA insurance
- Wife said ‘you need to fix this’
- Treat like business, laser focus
- Bought 65 homes in first year
How Mike has expanded beyond investing
- Still active, maintains rental portfolio
- Ran HomeVestors franchise
- Added coaching, FlipNerd
The benefits of the FlipNerd platform
- Created to learn, provide resource
- Added benefit of establishing network
The value of a thriving network
- Opportunity to do deals together
- Relationships accelerate progress
- Meaningful conversations at events
Mike’s insight on masterminds
- High-level people take to next level
- Apply tips, tricks to your business
- Expand limits of what’s possible
How to expand your network
- Real estate clubs, podcasts
- Local Facebook groups
- Find people and ask questions
What Mike is looking forward to
- Continued success of Investor Fuel
- Freedom of virtual team
- Building relationships
Connect with Mike FlipNerd
FlipNerd on Facebook
Mike on Facebook
Resources Investor Fuel
Financial Freedom Summit
Partner with Michael
Invest with Michael
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Ben Risser had a bad case of entrepreneurial ADD. He knew that the corporate environment was not a good fit for his personality, and he knew that real estate was the route he wanted to take. But Ben couldn’t get focused on a single strategy. He looked into several different single-family alternatives and even pursued lease options for awhile, but he couldn’t seem to stick with one strategy long enough to see it through… And then he landed on multifamily.
Ben enrolled in the Ultimate Guide to Buying Apartment Buildings with Private Money course and started networking at local REIA meetings. Through a random series of events, he ran into his partner, Matt Faircloth, and started underwriting deals. Matt’s broker connections led the team to a 198-unit deal in Fayetteville, NC—a D property in a B neighborhood with big value-add potential. It took six months and lot of legwork, but Ben and Matt closed in January of 2018, and they are actively pursuing other multifamily opportunities in the southeast US.
Ben sits down with me to explain how he came to realize that he is an entrepreneur at heart, despite his background as an aerospace engineer. He discusses his lack of focus early on and how he finally made the commitment to multifamily. Ben shares the story of his unintentional leap into full-time investing and the value of his wife’s support in pursuing the real estate business. Listen in for Ben’s insight around perseverance, focus, and finding a partner with a complementary skill set.
Key Takeaways Ben’s introduction to real estate
- Worked at Boeing as aerospace engineer
- Creativity not valued, stumbled into Kiyosaki
- Real estate to build pipeline vs. carry buckets
Ben’s initial real estate strategy
- Liked idea of rentals, passive income
- Zoomed in on single-family (analysis paralysis)
- Pursued lease options, burned by partner
Ben’s shift to multifamily
- Much more scalable
- Ultimate Guide course
How Ben found his partner
- Matt presented at credit/investor meeting
- Follow up, persistence led to partnership
Ben and Matt’s partnership
- Matt raises equity, focus on big picture
- Ben does underwriting, loan process
- Complementary personalities
Ben’s first multifamily deal
- 192-unit in Fayetteville, NC
- D property in B neighborhood
- $6.65M purchase, $1.7M CapEx
- 24% rent increase
Why it took 12 months to close on the property
- Offered $6.59M in July
- Seller initially accepted higher offer
- Renegotiated for $6.65M
- Runway to raise equity, get financing
The complications Ben encountered in his first deal
- Laundromat next door necessitated Phase II ESA
- Changed lenders twice
How Ben and Matt raised money for the deal
- Established network in Trenton, NJ
- $3.2M equity raise
Ben’s transition to full-time syndicator
- Laid off from small engineering company
- ‘At peace’ about pursuing real estate
What’s next for Ben and his partner
- Value-add on property, 20 units available
- Actively seeking opportunities in southeast
- Property manager instrumental in due diligence
Ben’s advice for aspiring real estate investors
- Perseverance is key
- Focus on one strategy
Connect with Ben Email b.risser@providencecapital.org
Resources Rich Dad Poor Dad by Robert Kiyosaki
REIA
Strategic Management Partners
Financial Freedom Summit
Partner with Michael
Invest with Michael
Financial Freedom Summit
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Would you like to save ten years or so and get right to the financial freedom part of real estate investing? Corey Peterson is finally living what he calls the ‘Sunsets and Palm Trees’ lifestyle, but his path was not an easy one. Like many a real estate investor before him, Corey got into the fix and flip business, and while he looked successful on the outside, he was a wreck on the inside. Running rehabs was running him ragged, and he was spending his Saturdays with contractors—instead of his family. Corey knew he had to do something differently, and that’s when he made the transition from single- to multifamily real estate.
Today, Corey is the owner of Kahuna Investments, a multifamily firm that provides its investors with stable cashflow and long-term capital appreciation. Since 2011, Corey has been involved in the ownership and management of commercial properties worth a total of $31M, and he is a sought-after speaker in the multifamily investing space. Corey is the also the host of the Multi-Family Legacy Podcast, and he has been featured on FOX, CBS, ABC and NBC affiliates.
Corey joins me to share his story, explaining how ‘Bruce Wayne’ introduced him to real estate and how being fired from his job as a financial advisor inspired his commitment to full-time investing. He walks us through the ‘hustle and grind’ of his years in the fix and flip business, describing the Saturday he missed his son’s game and how that feeling of failure motivated Corey’s transition to multifamily. He addresses how he developed a talent for raising private money and how that translated to a partnership and his first multifamily deal. Listen in for Corey’s advice around skipping the single-family step and shaving ten years off your journey to financial freedom!
Key Takeaways Corey’s introduction to real estate
- Mom’s new husband was investor
- Read Rich Dad Poor Dad
- Started with fix and flips
Why Corey got caught in the fix and flip trap
- TV portrayals
- Quick money
How Corey made the commitment to full-time real estate
- Fired from job as financial advisor
- Learned to raise private money
- Went back to fix and flips
Corey’s shift to multifamily
- Missed son’s Saturday game
- Spent year establishing framework
- Informed investors of change
- Announcement at multifamily event
Corey’s first multifamily deal in 2011
- Partners had deal, needed $1.4M
- Sold for $8.8M in 2017
- 1031 exchange for $12.7M deal
- $400K for rest of life
Why Corey encourages investors to do multifamily
- Focus on raising money, underwriting deals
- Easier to get loans, can hire third-party manager
Corey’s advice for aspiring real estate investors
- Avoid fix and flips (require hustle and grind)
- Work toward multifamily cashflow
- Look for working man’s complex
- Provide world-class service (maintenance, management)
Corey’s tips around raising money
- Ask, ‘Who do you know?’
- Right people will self-select
Corey’s insight on mentoring and partnerships
- Seek out partners at events
- Look for complementary skill set
What Corey’s excited about
- Opportunities in marketplace as interest rates rise
Connect with Corey Kahuna Wealth Builders
The Multi-Family Legacy Podcast
Resources Rich Dad Poor Dad by Robert Kiyosaki
Financial Freedom Summit
Partner with Michael
Invest with Michael
Financial Freedom Summit
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
If you take the time to sit down and get clear on the direction of your life, you may find that growing a business for yourself and your family will afford you the flexibility and time to pursue hobbies, to travel, to spend time with the people you love—and build wealth in the process. More often than not, time invested in reflection is what ultimately inspires action among aspiring multifamily investors.
Scott Price and his wife Karen run Bonvolo Real Estate Investments. They have been investors since 2003, owning and managing multifamily, office, retail and land properties across multiple markets in Washington state. From 2003 through 2007, Scott worked as a broker and earned Seattle Magazine’s Best in Client Satisfaction Award three times before returning to his career in project management. He has steadily grown his real estate portfolio while working full-time at Microsoft, but now he is quitting his W-2 job to focus on Bonvolo full time!
Scott sits down with me to share the experience that distracted him from pursing real estate after college and how the desire for flexibility ultimately brought him back. He explains why he went straight to multifamily as an investment strategy, how he was able to overcome his inexperience, and the business plan for his first 29-unit property. Listen in as Scott reflects on how a lack of awareness about syndication led to slow growth and addresses his plans to give back to the community now that he does real estate full time.
Key Takeaways Scott’s introduction to real estate
- Research around creating wealth
- Real estate tangible source of income
When Scott first took action in real estate
- Rented condo, had bad tenant
- Distracted by day-trading, stocks
Why Scott returned to real estate
- Desire for flexibility, work for self
- Build considerable net worth
- Time to travel with family
- Sense of satisfaction
Scott’s initial real estate strategy
- Focus on multifamily
- Conservative approach
Why Scott went straight to multifamily
- Confident in education, team
- Sold home and downsized
- Used cash for down payment on 29-unit
The initial challenges Scott faced in multifamily
- Tried to do everything alone early on
- Growing portfolio with own funds
How Scott overcame his inexperience
- Point to experience of team
- Technical understanding through education
Scott’s first 29-unit deal
- Found on MLS, matched available down payment
- Aware of capital requirement after purchase
Scott’s business plan for creating value
- Rebrand to change community perception
- Responsive to tenants, take care of property
What’s next for Scott
- Actively looking to buy
- Pursue syndication
Scott’s advice for his younger self
- Start early, start big and jump in
- One bad tenant not representative of business
Why Scott was too conservative early on
- Lack of awareness re: syndication
Scott’s challenges around syndication
- Concern as steward of other people’s money
- New world of larger properties
Scott’s guidance for aspiring investors
- Give a little, downsize if possible
- Consider living in property to start
- Redeploy equity in own house
- Use yours AND other people’s money
What Scott is looking forward to
- Working full-time in real estate
- Time for family, hobbies
- Financing sculpture park project in community
Connect with Scott Bonvolo Real Estate Investments
Email scott@bonvolo.com
Resources The Miracle Morning by Hal Elrod
Financial Freedom Summit
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
We’ve been conditioned to believe that a steady paycheck is a safety net. That if we pay our dues, the company we have been loyal to will return the favor, and we will ultimately be rewarded with a hefty 401(k).
But Clayton Morris contends that the opposite is true: As long as you for someone else (no matter how prestigious your job may be) consider yourself a line item on a spreadsheet with zero control of your own destiny—who could lose your livelihood at any time, through no fault of your own.
Clayton left a lucrative position as the weekend anchor for Fox & Friends to become the Founder and President of Morris Invest, a firm dedicated to helping people build financial freedom through real estate, and the host of the Investing in Real Estate Podcast. No matter how prominent his work in broadcasting, Clayton knew that his life wasn’t truly his own. He used real estate as the vehicle to gain financial freedom, and now he is on a mission to share his secret sauce with aspiring investors.
Clayton joins me to explain why he left a successful broadcasting career to pursue real estate full time. He shares how a flight to New Zealand inspired him to start a single-family portfolio and what motivated him to get serious about leveraging real estate to replace his income. Clayton addresses the significance of a strong WHY and the limiting beliefs that held him back early on. Listen in for Clayton’s advice around taking massive action and gaining clarity through whitespace.
Key Takeaways Why Clayton left broadcasting for real estate
- Power of controlling own destiny
- Vitriolic politics, death threats
How Clayton decided on real estate
- Met investor on flight to New Zealand
- Followed formula to buy properties
Clayton’s initial investment strategy
- Class C single-family, hardworking neighborhoods
- Fall in love with ROI rather than real estate
- Bought two properties, $800/month cashflow
When Clayton got serious about real estate
- Couldn’t pay mortgage on NJ home
- Calculated freedom # (12 single-family)
- Got creative with money to acquire properties
Clayton’s last day of work
- Didn’t want any part of destructive political narrative
- Looking forward to spending weekends with family
- Cleaned out office and didn’t look back
Why Clayton is making the shift to multifamily
- Infinite returns, tax incentives
What held Clayton back
- Fear of success, father never took action
- Had to put on blinders, stick to one thing
The myth that a steady paycheck is a safety net
- Average 401(k) only $90K
- ‘Pawn on chessboard’
Clayton’s advice around taking action
- Put together battle plan (one strategy)
- People, deals and money
What Clayton is looking forward to
- Multifamily investments
- Writing book (mindset)
- Creating more whitespace
Connect with Clayton Morris Invest
Clayton’s Website
Clayton’s Podcast
Clayton on Facebook
Clayton on Twitter
Clayton on Google+
Clayton on YouTube
Resources Freedom Number Cheat Sheet
REIA
Jeff Goins Mitigated Risk Article
Michael on Investing in Real Estate
Financial Freedom Summit
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
As multifamily investors, it is easy to get caught up in making as much money as possible. Problem is, we sometimes forget that real people live in those apartment buildings. And regardless of their socioeconomic level, our tenants deserve to be treated with dignity and respect.
Eddie Lorin is a multifamily real estate investor with 20 years of value-add experience and 40K units under his belt. Eddie’s company, Impact Housing, is on a mission to breathe new life into neglected multifamily properties, generating positive returns for investors and improving the quality of life for residents and surrounding communities.
Eddie sits down with me today to share his vision for Impact Housing and the critical need for clean, affordable housing for the working class. He explains the concept of impact investing, discussing how he takes care of people ‘where they live’ by way of Class A amenities and on-site programming. Eddie speaks to his expectations for third-party property managers, describing the art and science of building a community. Listen in as Eddie offers the business argument for his model and learn how to do well by doing good.
Key Takeaways Eddie’s vision for Impact Housing
- Changing people’s lives where they live
- Safe, affordable housing for working class
- Tenants stay, pay and refer friends
The concept of impact investing
- Doing business for a purpose
- Millennials leading paradigm shift
- Working poor in distressed areas
What’s different about Impact Housing
- Focus on resident rather than deal
- Treat tenants with dignity, respect
- Provide Class A amenities
How Eddie takes care of his residents
- Signage, pool and fitness center
- Health, wellness classes
- Create sense of community
What Eddie requires of third-party property managers
- Budget set aside for activities, amenities
- Respond to work orders within 48 hours
- Build relationships with tenants
The business argument for Eddie’s model
- Big demand for affordable housing
- Safe, defensive investment
What Eddie’s looking forward to
- Deal in Maryland (townhomes)
- Environmental, social and financial return
Connect with Eddie Impact Housing
Email info@impacthousing.com
Resources The Financial Freedom Summit
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
‘The guy or the gal that wants to quit their job and doesn’t is quitting themselves.’
What is the secret sauce that makes a person successful? Michael Quarles says that it’s not about hoping, wanting or even needing to reach your goals. You have to REQUIRE yourself to take action every day in order to achieve. And even that’s not enough if you don’t have self-respect.
Michael is a serial entrepreneur and accomplished real estate broker and investor who purchased his first property at the tender age of 18. He has completed thousands of real estate deals, and Michael has vast experience with fix and flips, assignments, and wholesale deals. In addition, he designed a systematized business model that his team uses to purchase houses across the country through 1800Sell4Cash. Michael also developed Yellow Letters, the largest marketing company for real estate investors, as well as the Alex & Ryan Call Center, a service that turns marketing responses into deals.
Today, Michael joins me to discuss his high-level strategy for lead generation. He explains the value of cluster marketing, his strategies for converting leads over the phone, and the process of locating leads without the help of a broker. Michael walks us through his criteria for choosing a market and how he handles due diligence without the luxury of seeing a property in person. Listen in for Michael’s insight on why self-respect is the key to success and his ‘taste the caviar’ challenge for aspiring investors.
Key Takeaways Michael’s high-level strategy for lead generation
- Sweat marketing (i.e.: new, sports, purses and shoes)
- Paid marketing (e.g.: signage, billboards and direct mail)
The value of cluster marketing
- Send six different letters, postcards
- Increased probability of call back
Michael’s techniques for converting leads on the phone
- Imbedded commands
- Positive, negative reinforcement
- Pacing
- Neural linguistics
Michael’s take on the art of negotiation
- Teach what you want them to say
- Legal, moral and ethical conduct
Michael’s best suggestions for lead sources
- First American Title (ListSource)
- Fidelity National Title
Michael’s criteria for choosing a market
- 2/3 median
- High percentage of cash investor buyers
- Stable number of single-families per zip code
- High foreclosure rate
Michael’s call center personas
- Alex—answers phone
- Ryan—negotiators
- Angel—negotiates terms
How Michael does due diligence without seeing a property
- Broker’s price opinion
- Ensure dealing with owner
- Appraisal
- Home inspection
- Request pictures
Michael’s insight on what it takes to be successful
- Want, need and hope are not enough
- Must REQUIRE yourself to achieve
- Self-respect to push through pain
Michael’s ‘taste the caviar’ challenge
- See what it feels like to experience success
The value in surrounding yourself with the right people
- Choose people where you want to be
Connect with Michael Michael’s Website
Email michael@michaelquarles.com
Yellow Letters
1800Sell4Cash
Call Center
Resources ListSource
Fidelity National Title
The Financial Freedom Summit
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
‘The guy or the gal that wants to quit their job and doesn’t is quitting themselves.’
What is the secret sauce that makes a person successful? Michael Quarles says that it’s not about hoping, wanting or even needing to reach your goals. You have to REQUIRE yourself to take action every day in order to achieve. And even that’s not enough if you don’t have self-respect.
Michael is a serial entrepreneur and accomplished real estate broker and investor who purchased his first property at the tender age of 18. He has completed thousands of real estate deals, and Michael has vast experience with fix and flips, assignments, and wholesale deals. In addition, he designed a systematized business model that his team uses to purchase houses across the country through 1800Sell4Cash. Michael also developed Yellow Letters, the largest marketing company for real estate investors, as well as the Alex & Ryan Call Center, a service that turns marketing responses into deals.
Today, Michael joins me to discuss his high-level strategy for lead generation. He explains the value of cluster marketing, his strategies for converting leads over the phone, and the process of locating leads without the help of a broker. Michael walks us through his criteria for choosing a market and how he handles due diligence without the luxury of seeing a property in person. Listen in for Michael’s insight on why self-respect is the key to success and his ‘taste the caviar’ challenge for aspiring investors.
Key Takeaways Michael’s high-level strategy for lead generation
- Sweat marketing (i.e.: new, sports, purses and shoes)
- Paid marketing (e.g.: signage, billboards and direct mail)
The value of cluster marketing
- Send six different letters, postcards
- Increased probability of call back
Michael’s techniques for converting leads on the phone
- Imbedded commands
- Positive, negative reinforcement
- Pacing
- Neural linguistics
Michael’s take on the art of negotiation
- Teach what you want them to say
- Legal, moral and ethical conduct
Michael’s best suggestions for lead sources
- First American Title (ListSource)
- Fidelity National Title
Michael’s criteria for choosing a market
- 2/3 median
- High percentage of cash investor buyers
- Stable number of single-families per zip code
- High foreclosure rate
Michael’s call center personas
- Alex—answers phone
- Ryan—negotiators
- Angel—negotiates terms
How Michael does due diligence without seeing a property
- Broker’s price opinion
- Ensure dealing with owner
- Appraisal
- Home inspection
- Request pictures
Michael’s insight on what it takes to be successful
- Want, need and hope are not enough
- Must REQUIRE yourself to achieve
- Self-respect to push through pain
Michael’s ‘taste the caviar’ challenge
- See what it feels like to experience success
The value in surrounding yourself with the right people
- Choose people where you want to be
Connect with Michael Michael’s Website
Email michael@michaelquarles.com
Yellow Letters
1800Sell4Cash
Call Center
Resources ListSource
Fidelity National Title
The Financial Freedom Summit
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
With 3,600 members, Neal Bawa’s multifamily meetup is the largest in the US.
Would you believe that when he started the group, Neal had zero multifamily experience?
Neal’s background is in technology education. He spent 15 years running a traditional company—and paying massive taxes—when his boss turned him on to the tax benefits of multifamily. Neal invested in a handful of single family homes, triplexes and fourplexes to learn the game, and he was ready to take the next step when he learned about a 12-plex deal that he couldn’t afford on his own.
By then, Neal had established his multifamily meetup, where he was candid about the fact that he didn’t have experience. Rather, he shared what he DID know—his research and knowledge of the numbers. And on the night that Neal shared the story of the 12-plex deal, he discovered that he had a knack for raising money as well.
Today, Neal and his partner have 1,000 units, with plans to hit 1,700 by the end of the year. Neal joins me to discuss how he was able to position himself as a leader despite a lack of track record and why his ability to tell the story of a project led to success with raising money. He talks numbers, sharing the importance of understanding the economics of an area before you invest and his take on the top two markets for 2018. Listen in for Neal’s insight around stock market corrections, partnering with experts and diversifying your real estate portfolio.
Key Takeaways Neal’s transition from single- to multifamily
- Multifamily scales much better, always the goal
- Bought single family, tri-/quadplexes to learn
- Found 12-plex deal, told story in meetup
- Discovered knack for raising money
Why Neal established a multifamily meetup without a track record
- Desire to share knowledge, network
- Honesty re: lack of experience resonated
How Neal’s meetup group supported his growth
- Encouraged meetup members to form groups (e.g.: underwriting)
- Learned from each other through open share
- Experienced future partner joined group
Neal’s advice around avoiding the mistakes he made early on
- Don’t assume taxes will stay the same
- Gain understanding of tenant quality
How demographics can impact returns
- Delinquency levels of African American tenants
- Marginal difference on western seaboard
- Three to four times higher in Midwest
- Vegas as transitional area, high turnover
- Work numbers into underwriting
Neal’s top market picks with growth and value potential
- Sacramento
- Orlando
Why multifamily investors should adjust their expectations
- 23% cash-on-cash returns no longer realistic
- Interest rates increasing, cap rates decreasing
- Rent growth slowing down (still above trend)
- Red flag if syndicator promising same returns
Neal’s take on whether it’s a good time to get into multifamily
- Anticipate massive housing shortage
- Gap in supply/demand in Class B, C
- Once in a lifetime opportunity
Neal’s insight on market corrections
- Assume will happen, plan for it
- Returns will drop, but good properties will survive
How multifamily performed in the last recession
- Better than most asset classes
- Still had cashflow (down to 4%)
- Deep crash = opportunity
- 4% default rate
What’s next for Neal
- Expand network and diversify
- Acquire student, senior housing
- Partner with expert in industrial
Connect with Neal Multifamily U
Financial Attunement
Email neal@finatt.com
Resources We Are Apartments
The Financial Freedom Summit
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Wouldn’t it be great if your first multifamily deal just fell into your lap? If someone would just walk into your office and offer you an 18-unit property? If a bank would provide you with 100% financing and 100% renovation?
Sounds great, right?
But the problem with things being too easy is that you don’t learn. Just ask Nathan Tabor. He got lucky on his first multifamily deal—and that led to a lot of misery, stress, and unanticipated setbacks with his second and third investments.
Nathan is an entrepreneur, business consultant, executive coach and speaker. In the last 18 years, he has successfully founded and operated dozens of businesses, grossing over $150M in sales. His experience spans the areas of real estate, auto sales, web-based marketing and direct product sales. Nathan has been a featured guest on Fox News, Laura Ingraham and C-Span, among others, and his parent company was ranked as one of the fastest-growing small businesses in the US by Inc. magazine in 2012, 2013 and 2014.
Nathan has done 26 multifamily deals in the last 11 years, and his current portfolio includes three apartment buildings with a total of 168 units. Today he joins me to share his story, discussing how that easy first deal led to big mistakes with his second and third investments. Nathan walks us through the lessons he learned around financials and zoning and explains why aspiring investors should focus on the first deal. Listen in to understand how his multifamily strategy has changed over time, and get Nathan’s insight on serving others first to achieve lasting happiness.
Key Takeaways Nathan’s stress-free first deal
- Opportunity to buy 18-unit complex
- 100% financing from small community bank
- Added 12-unit complex nearby
- Flipped after eight months, made $250K
Nathan’s disaster of a second deal
- Purchased 24 units for $225K
- Couldn’t get building permits
- Lost grandfathering, had to bring up to code
- Cost $150K more than budgeted
- 18 months of misery and stress
- Good investment in long run
Nathan’s multifamily strategy
- Class C, value-add opportunities
- Flip OR refinance into nonrecourse debt
- Current portfolio of three complexes, 168 units
Nathan’s third multifamily deal
- Rent-roll advertised $28K, only $7K coming in
- Forced to rework numbers, renegotiate with bank
- Learned to verify financial via bank statements
- Eventually sold property, made $800K
The lessons Nathan learned from his mistakes
- Don’t wait to resolve problems
- Follow instincts if something feels wrong
- Seek the advice of mentor/coach
- Do foundational work to get educated
How Nathan’s multifamily strategy changed over time
- Started out flipping properties
- Learned about nonrecourse debt
- Look for properties that meet nonrecourse criteria
- Banks started asking for more money down
- Uses income from flips to finance next deal
Why multifamily appeals to Nathan
- Monthly income not dependent on working 40 hours/week
- Opportunity to help people in difficult situation (C class buildings)
- 90% of tenants just want safe, well-maintained place to live
Nathan’s advice for aspiring multifamily investors
- Define your niche
- Develop business plan
- Start somewhere, build up
- Work with partner if necessary
- Focus on the first deal
Nathan’s insight on work-life balance
- Moments of joy based on money don’t last
- Take care of health, relationships and faith first
Connect with Nathan Nathan’s Website
Resources The Financial Freedom Summit
Michael’s Course
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Andrew Campbell was 27-years-old, working a good corporate job when he got the call that his father had suffered a massive brain hemorrhage. So he moved back home to Austin and reconsidered what he wanted out of life.
Flexibility and freedom became priorities for Andrew, and when an experienced friend invited him to partner up on the purchase of a duplex, he agreed. Very quickly, Andrew was ‘addicted to real estate,’ and he began to envision a long-term plan that would allow him to quit his job and pursue real estate full-time.
Now Andrew is a managing partner with Wildhorn Capital, a real estate investment firm focused on multifamily properties in major Texas markets. Today he joins me to share how he made the transition from duplexes and fourplexes to his first multifamily deal, a 192-unit building in San Antonio. Andrew walks us through his first experience with raising money, explaining how being a real estate junkie helped him build a network organically. Listen in for Andrew’s insight on redefining success, taking risks, and leveraging an addiction to real estate to live the life YOU design.
Key Takeaways How Andrew got into real estate
- Corporate job out of state
- Moved home after dad’s massive brain hemorrhage
- Changed notion of what success looks like
- Bought duplex with experienced mentor
Andrew’s initial investment strategy
- Goal to create passive income
- Envisioned 15- to 20-year plan
- Add duplexes, fourplexes to portfolio
- Managed himself to learn business
Why Andrew limited himself to four units or less
- Qualified for residential loans (up to ten)
- Model was familiar
Why Andrew transitioned to multifamily
- Reaching maximum # of residential loans
- Realized could realize dreams sooner
- Wife encouraged him to ‘go for it’
Andrew’s first experience with raising money
- Client through consulting work offered $100K
- Gained confidence, snowball effect
Andrew’s first multifamily deal
- 11 months from decision to close
- Relationships with brokers in San Antonio
- Purchased 192-units for $16M ($6.5M raised)
What inspired Andrew to ‘go big’ on his first multifamily deal
- Property management companies look for 125-plus
- More efficient to go bigger
How Andrew was able to raise $6.5M
- ‘We networked our asses off’
- Five meetings/week with new people
Why Andrew chose to work with a partner
- Sees real estate as ‘team sport’
- Met at conference, same business model/markets
- Complementary skill sets (both intense hustlers)
What’s next for Wildhorn Capital
- Strategic, disciplined to find deals that work
- Goal to expand to 1K units in 2018
How Andrew’s life is different as a full-time investor
- ‘Life by design’
- Flexibility, freedom
- Feels he can do/achieve anything
- Full-time job no longer in way
Andrew’s advice to aspiring multifamily investors
- Start buying property now
- Don’t be afraid of value-add
- Don’t be afraid to use other people’s money
- Take ownership, risks
Connect with Andrew Wildhorn Capital
Email andrew@wildhorncap.com
Resources The Millionaire Real Estate Investor by Gary Keller, Dave Jenks and Jay Papasan
Rich Dad Poor Dad by Robert T. Kiyosaki
Michael’s Course
Michael’s Contact Form
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
You’ve been served.
Those are scary words for a real estate investor, but the truth is that you are likely to face a lawsuit at some point in your career—take it from me. So how do you keep your assets safe and protect yourself from frivolous litigation?
Scott Smith is an attorney as well as a real estate investor. His firm, Royal Legal Solutions, provides business, tax and legal solutions geared exclusively for real estate investors. Scott has eight years of experience deconstructing the industry, and asset protection is his specialty.
Today Scott covers the statistics around lawsuits in the real estate investing space, explaining his ‘if, not when’ approach to protecting yourself as a real estate investor. He shares case studies of investors who were not protected and walks us through the benefits of hiding and isolating your assets. Scott offers his best strategies, including separating operations from ownership, removing equity from your properties, and doing your due diligence—every single time. Listen in and learn how to leverage a series LLC structure in combination with a land trust to remain anonymous and compartmentalize your assets, making you less susceptible to litigation.
Key Takeaways The focus of Royal Legal Solutions
- Help real estate investors protect, hide assets
- Keep retirement, assets safe
The likelihood you will be sued as a real estate investor
- Most litigated industry in US
- 3-8% sued every year
- Almost guaranteed lawsuit during lifetime
The potential outcomes of a lawsuit
- Prevent by hiding, isolating so client looks unattractive
- Let insurance company’s lawyers bully into low settlement
- Insurance only covers negligence (nothing else)
Scott’s strategies for protecting real estate investors
- Transfer properties into asset holding company
- Separate operations from ownership
The level of effort required to open and maintain multiple LLCs
- Only need one operating company, one asset company
- Asset holding company can employ series LLC structure
- Infinite scalability
- Compartmentalization of every asset
- Cost to expand goes to zero
- Move property into land trust (can’t be traced back to you)
- Creates doubt in mind whether you still own property
Scott’s best advice for real estate investors
- Separate assets from operations
- Remove equity from property
Scott’s call-to-action for protecting your assets
- Remove your name from assets
- Be sure you’re well-insured
- Do your due diligence every time
Connect with Scott Royal Legal Solutions
Email scott@royallegalsolutions.com
Call 512-757-3994
10 Ways to Protect Your Real Estate Investments
Resources Michael’s Course
Michael’s Coaching Programs
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Todd Dexheimer always wanted to be a multifamily investor, but he got distracted by single-family rentals and fix and flips. When he stopped to take a hard look at his portfolio, Todd realized that when it came to return on investment, the rentals were destroying the flips. Worse yet, he was still in a holding pattern—waiting to ‘graduate’ to multifamily. What would his cashflow look like if he stopped wasting time and shifted his focus to apartment buildings?
Todd began his career as a high school teacher, but the meager pay and lack of job satisfaction had him looking for other opportunities. In 2008, he and his wife used their savings to purchase a rental property as well as a live-in flip, and before long he had a significant rental portfolio and 150 flips under his belt. But Todd never stopped dreaming about multifamily, and in 2016 he got back on track and purchased a 22-unit building in Cincinnati. Now he has a total of 106-units and the ambition to grow by another 800 units in 2018.
Today Todd explains how fear, distraction, and a lack of resources held him back from pursuing his multifamily dreams. He shares the details of a 15-unit deal that didn’t go so well, yet taught him several valuable lessons and set him up for future success. Todd discusses how a hard look at his portfolio got him back on the multifamily track and offers an overview of his last two apartment investments. Listen in for Todd’s advice around being taken seriously in a new market and learning from other investors to go big quickly, rather than waiting to ‘graduate.’
Key Takeaways The Cliff’s Notes version of Todd’s story
- High school industrial tech teacher
- Developed interest in real estate
- Invested in single-family, duplexes and fourplexes
- ‘Graduated’ to multifamily
The problem Todd was trying to solve with real estate
- Little job satisfaction in teaching
- Liked interaction with students, but disliked politics
- Income not there, not fulfilled by work
Todd’s initial investment strategy
- Wanted to do multifamily, but lacked resources
- Found house for $60K, rent at $1,500/month
- Financed with savings
- Refinanced properties to buy more
- Started flipping houses, built rental portfolio
Todd’s first multifamily deal
- Bought 15-unit with passive investor in 2013
- Building had plumbing issues that renovation budget didn’t cover
- 80% of profits went back into repairs
- Made money, but didn’t reach expected return
What Todd learned from his first multifamily deal
- Understand what type of building you’re buying
- Budget for necessary repairs, replacements
- Provide investors with appropriate financials
- Mind your books, understand expenses
- Don’t get distracted with other projects
What inspired Todd to pursue multifamily again
- Parted ways with business partner
- Realized rentals destroyed flips on ROI
- Conducted market research on multifamily
Todd’s second multifamily deal
- 22-unit off-market deal in Cincinnati
- 10% down payment, owner financing
- Equity, renovation financed through investor
Todd’s approach to being taken seriously in a new market
- Find commercial brokers through LoopNet, local sites
- Call to discuss specifics of what you’re looking for
- Follow up with email asking for recommendations
- Contact referrals (property managers, lenders, attorneys)
- Show up face-to-face, spend three days
Todd’s first syndication deal
- 84-unit building in Lexington, KY
- Heavy lift value-add ($9K/unit)
- 88% occupancy, rents low
- Improving C+ neighborhood
- 11 investors to raise $800K
The value of the first deal
- Learning sets up for future success
- Conservative underwriting = profit (even if things go south)
Todd’s advice to his younger self
- Get educated in multifamily, investing in general
- Surround yourself with right people
- Don’t get distracted from what really want
Todd’s insight for aspiring multifamily investors
- Okay to do single-family, flips to gain experience
- Find/learn from apartment investors from day one
- Go big quicker, don’t wait to ‘graduate’
How Todd’s life changed after he quit teaching
- Never nervous, very prepared
- ‘Every day is Saturday’
- Excited to grow real estate business
Connect with Todd Venture D Properties
Email todd@venturedproperties.com
Todd on LinkedIn
Todd on Bigger Pockets
Todd’s Podcast
Resources Episode 89
LoopNet
Episode 77
Michael’s Coaching Programs
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
‘Don’t worry about everything you don’t know today.’
Josh Sterling’s advice for aspiring real estate investors? Jump in head first and take massive action. In fact, if Josh could go back and offer some advice to his 17-year-old self, he would recommend skipping college and getting on the fast track to multifamily as soon as possible!
But Josh didn’t know that then, and he pursued a degree in aeronautical science from Embry-Riddle University. He got a job as a commercial airline pilot and had worked his way up to captain when the recession hit, and his hard work was rewarded with a demotion and a pay cut. Josh decided then and there that he needed a side hustle that he could control, and he landed on real estate. Josh was eventually able to quit his job and pursue real estate full-time, growing his portfolio to a cool 250 units.
Josh has also grown his business, building out his own property management team. Today he walks us through his first deals in the single-family space, discussing the challenges of managing 25 properties and how that struggle inspired his shift to multifamily. Josh offers his insight around building relationships with a few good brokers, describing how he has scaled to 250 units with the help of just two realtors. He explains his approach to multifamily syndication, sharing how multifamily allowed him to quit his job, go to work on his own terms, and have lunch with his 18-month old daughter any time he wants. Listen in for Josh’s advice about establishing credibility—with or without a track record—and getting on the fast track to multifamily.
Key Takeaways What inspired Josh to pursue real estate
- Working as airline pilot
- Demotion with pay cut in 2008
- Looking for something could control
Josh’s first deal in September 2009
- $40K single-family in southeast Michigan
- Buy and hold strategy
Why Josh made the shift to multi-family
- Owned 25 single-family rentals by 2012
- Needed help with management
- Multifamily necessary to scale business
Josh’s first multifamily deal
- Colleague introduced to commercial broker
- Approached with 24-unit off-market deal
- Couldn’t get numbers to work, deal fell apart
- Seller reached out twelve months later
- Bought under land contract for $515K at 6%
- Upgraded units, occupancy rose from 42% to 100%
- Cash out refi after 14 months (valuation at $800K)
Josh’s next multifamily deal
- Same broker approached with 53-unit deal
- Used capital from refi of 24-unit property
Josh’s approach to raising money
- Share enthusiasm for real estate with family, friends
- Leverage portfolio for credibility
Josh’s first experience with syndication
- $1.3M building under contract
- Needed to raise $300K to close
- Put out sample deal package
- Fully subscribed in 24 hours
How quitting his day job changed Josh’s life
- Left in May of 2016 (owned 140 units)
- Work on own terms to grow business
- Aggressively looking for deals
- Fly to play golf, see concerts
What Josh would tell his 17-year-old self
- Skip college, buying first home
- Pursue multifamily right away
- View regular job as means to end
How to fast track a career as a real estate investor
- Get educated quickly
- Build relationships with brokers
- Don’t worry about bank financing
- Demonstrate credibility to raise equity
What Josh is excited about right now
- Building own property management team
- Building self out of day-to-day operations
- Focus on networking, maintaining broker relationships
Josh’s advice for aspiring real estate investors
- Take massive action
- Build reputation, relationships
Connect with Josh Email: josh@epicpropertymanagement.com
Epic Property Management
Resources LoopNet
Freddie Mac Small Balance Loan
Entrepreneurs’ Organization
Michael’s Coaching Programs
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
If 2018 is YOUR year, the year you plan to do your first multifamily deal and get on the road to retirement, then the next step is to determine the route you will take to get there. There are four different roles you can play in a general partnership: syndicator, passive investor, balance sheet guarantor, or money raiser.
Today I’m getting into the nitty gritty of each of those four paths to financial freedom, exploring what’s important to each member of the team and how to get started. I begin with syndication, discussing the importance of analyzing deals, meeting with investors and building a team. If you want to be in the driver’s seat, then the role of the syndicator may be perfect for you. I go on to cover passive investing, outlining how to ask the right questions and find a partner you can trust. If you see yourself as more of a passenger on this road trip to retirement, then passive investing might be the part you play in a general partnership.
Another lesser-known role is that of the balance sheet guarantor, who cosigns the loan for another syndicator. I explain the circumstances under which a balance sheet guarantor is necessary and the benefits of signing on to a deal in this way. The fourth role is that of the money raiser, and I wrap with the networking skills necessary to take on this role. Listen in and learn the significance of getting educated in the multifamily space, building a working relationship with trustworthy partners, and getting on the road to retirement with apartment building investing!
Key Takeaways What’s important to becoming a SYNDICATOR
- Learning to analyze deals
- Constantly raising money
How to get started as a SYNDICATOR
- Educate yourself with free content, invest in education
- Analyze deals, meet with investors and build your team
- Consider coaching (accelerate results, avoid mistakes)
- Avoid overwhelm by doing ‘next three things’
What’s important to becoming a PASSIVE INVESTOR
- Learn right questions to ask
- Find partner you can trust
- Transparency, integrity and communication
- Look at track record, team
How to get started as a PASSIVE INVESTOR
- Educate yourself enough to ask right questions, call BS
- Network at events like REIA, meetups or Financial Freedom Summit
- Find one or two partners, invest in multiple deals
What’s important to becoming a BALANCE SHEET GUARANTOR
- Required by lender when net worth of partners not > loan balance
- Willing to cosign loan for syndicator
- Risk exposure low, compensation varies
- Can receive 5-15% of general partnership
Who are ideal MONEY RAISERS
- Have capital themselves, ability to attract more
- Prefer networking to cold-calling brokers, analyzing deals
What’s important to becoming a MONEY RAISER
- Access to capital
- Finding trustworthy partner
How to get started as a MONEY RAISER
- Educate yourself enough to answer questions
- Start raising money TODAY
Resources Partner with Michael
Invest with Michael
Deal Maker’s Mastermind
Syndicated Deal Analyzer
Sample Deal Package
Ultimate Guide to Buying Apartment Buildings
Michael’s Coaching Programs
Financial Freedom Summit
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
When I went along on my real estate journey and—all of a sudden—apartments became the thing that I wanted, there was a level of excitement that I had not experienced before... I imagine myself owning many apartment buildings, and that’s the vision I’ve set for myself.’
In December of 2016, veteran Seattle police officer David Sweeney turned 53. After a 30-year career, he had reached the minimum retirement age, but David knew he could not stop working if he wanted his family to have a comfortable life. Looking for new options for himself and his family, he started exploring real estate. David liked the ring of ‘multi-family investor,’ so he started looking for duplexes, triplexes and fourplexes. By April, he had secured his real estate license to gain access to the MLS, and he spent the next five months evaluating 400-plus deals.
Though a few deals fell through, David was motivated by his goal. He refinanced his own home and pulled $380K—and waited for the right opportunity. By August, David had started thinking bigger, and when he came across a 24-unit property in Centralia, he made an offer that was accepted. Now David is looking for his next deal and looking to help other aspiring investors find deals of their own. Today he shares his process for analyzing deals and how he made the mindset shift from pursuing duplexes, triplexes and fourplexes to apartment buildings. He discusses the challenges he faced in getting a loan and how he leverages his commercial lender as a ‘second set of eyes.’ Listen in for David’s bold 2018 goals and his advice for aspiring investors around increasing your productivity through purpose!
Key Takeaways [0:40] The trigger that moved David to pursue real estate
- Turned 53 last December (minimum retirement age)
- Wanted new options for self, family
[2:15] David’s initial strategy
- Consumed much info, liked idea of multi-family
- Initial goal to purchase duplex, triplex or fourplex in western Washington
[4:32] How David moved forward toward his goals
- Started shopping on real estate sites
- Couldn’t find information he wanted
- Secured real estate license in April
- Evaluated 400 deals via access to MLS
- Narrowed down to properties with potential cashflow
- Used syndicated deal analyzer to determine offer
[8:16] David’s mindset from April through August
- Motivated by goal
- Not too frustrated by deals that fell through
- Refinanced house, pulled $380K
- Waiting for right opportunity
[10:28] David’s shift to thinking big
- Came across larger deal
- Four duplexes vs. one apartment building
- Benefit of dealing with one roof, contractor
- Ventured into commercial financing
- Experience expanded comfort zone
[15:58] David’s first deal
- 24-units (16 1BR, 8 studio) in Centralia, WA
- Came with 15-unit storage facility, single-family home
- Listed at $1.325M, looked at cap rate in area
- Offered $1.1M, took for $1.14M
- Received real estate commission as well
[19:08] David’s goals for 2018
- Buy 100-unit property
- Learn more about raising money
- Help other people find deals
- Eventually become passive investor
[22:16] The challenges David faced in doing his first deal
- Acquiring commercial loan
- Getting insurance
- Roof inspection
[24:28] How David’s first deal is performing
- $3,700-$4,000/month in pocket (after expenses)
- Increase property value
[26:57] David’s advice for aspiring real estate investors
- Do more tomorrow that you did today
- List your goals, take steps daily
- Move from education to action
- Productivity increases with purpose
Connect with David Sweeney David’s Website
Resources Syndicated Deal Analyzer
Think and Grow Rich by Napoleon Hill
Podcast Show Notes
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Analysis paralysis? A fear of failure? Too many other responsibilities? Procrastination? The idea that you’re not good enough?
What’s holding you back from FINALLY making the decision to live the life of your dreams? What if you could overcome these limiting belief systems, otherwise known as BS, and take action on your goals? What if you could totally crush it in 2018?
Rod Khlief is an authority in real estate, business and peak performance. He has personally owned and managed 2,000-plus apartments and homes, building more than 22 businesses in his 40-year career. But it wasn’t until he lost his shirt in the recession that Rod learned how to build a successful life that had richness and meaning—with a focus beyond himself. Now he combines his passion for real estate investing with his understanding of ‘the psychology of success’ to serve as one of the country’s top real estate investment and high-performance life coaches.
Today Rod shares how he came back from the experience of losing $50M and why he is a better person for it. He walks us through his goal-setting methodology, explaining how to develop a WHY for each objective and the value of finding images associated with each of your goals. Listen in for Rod’s insight around truly deciding, overcoming fears and discouragement, and taking action on your goals. Learn how to leverage the Dickens process to change your mindset and the value in realizing it’s not all about you.
Key Takeaways [1:31] Rod’s $50M seminar
- Owned 800 C- single-family houses in Florida
- High taxes, insurance minimized cashflow
- Ugly, painful setback during recession
[5:05] What Rod learned from the experience
- Giving to others provides richness, meaning
- Success without meaning beyond self is empty
[9:17] Rod’s methodology around goal-setting
- Write down everything you could possibly want in life
- Material things
- Skills to learn
- Who you want to help
- Put a number next to each item (how long to achieve)
- Pick a #1 goal and your top three one-year goals
- Write a WHY paragraph for each goal, include PAIN if not achieved
- Find images associated with each goal to view daily
[16:33] Rod’s insight around taking action on your goals
- Identify your WHY and associated PAIN
- Magnificent life on other side of comfort
- Confidence comes from competence
- Fear diminishes with action
[20:22] The value in truly deciding to change your life
- Mindset is 80% of formula for success
- Decision is critical
- Tony Robbins’ Dickens process
- Explore damage limiting belief caused
- Stack 10X pain on top
[25:48] How to overcome discouragement (i.e.: lack of progress, losing a deal)
- Get clear on what you want, why you want it
- Revisit goals daily
[27:23] Rod’s advice around overcoming fears
- Look at fear rationally, no basis in fact
- Identify limiting belief, develop alternative
- Eliminate self-imposed limitations
[32:30] The value of experiencing what you want
- Harder to give up once you’ve had tactile experience
Connect with Rod Khlief Rod’s Website
Rod’s Free Book
- Text “Rod” to 41411
Multifamily Community on Facebook
Rod’s Podcast
Resources Apartment Building Investing Episode 38
Tony Robbins: The Dickens Process
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
It’s important for each of us to find our niche in the real estate investing space. Maybe you’re confident that commercial real estate is where you want to be, but multi-family just doesn’t feel like the right fit. There are other asset classes to consider, and one of the most recession-resistant is that of self-storage.
Hunter Thompson is the Managing Principal of Cash Flow Connections, a private equity group out of Los Angeles that connects passive real estate investors with opportunities in the commercial space, with a specific focus on mobile home parks and self-storage properties. Hunter has done 100-plus deals valued in excess of $350M.
Hunter got his start investing in stocks, but the lack of predictability in the market led him to focus on simpler investments with mitigated risk. After connecting with a network of like-minded individuals, he began investing in mortgage notes before branching out into other real estate asset classes. Today he shares what inspired him to invest in self-storage, explaining what makes the opportunity truly recession-proof. Hunter discusses self-storage value-add strategies, the benefits of self-storage as an investment, and how to find the best markets in the space. Listen in to understand what Hunter looks for in a sponsor, his approach to management, and his advice around next steps for aspiring self-storage investors.
Key Takeaways [1:45] Hunter’s shift to real estate investing
- Grandfather was successful businessman
- Initial interest in stocks, too much volatility
- European debt crisis inspired shift
- Real estate more predictable, simple
[4:20] Hunter’s first real estate deal
- Attended 3-5 networking events/week
- Found small group of likeminded individuals
- Invested in mortgage note
[5:43] How Hunter got into self-storage
- By 2013, good deals hard to find in traditional asset classes
- Data analysis inspired focus on recession-resistant assets
- Self-storage used during times of economic change
[7:28] The benefits of investing in self-storage
- Many ways to add value to property without taking on additional risk
- Can add $1M of value with U-Haul, tenant insurance and merch
- Sticky tenant base allows for 6% rental increase annually
[10:13] The best markets for self-storage investment
- Identify undersupplied markets (i.e.: southeast US)
- Utilize data from CoStar, LoopNet or Yelp
[12:06] What Hunter looks for in terms of underwriting
- Expense ratio of 40% (or even below)
- Price per unit of $12-14K
- Price per ft2 of $65-110
- Climate-control as upsell
[13:26] Hunter’s approach to management
- Onsite management important component of A-class property
- Sponsor hires either entrepreneurial property manager or retired couple
[15:28] What Hunter looks for in a sponsor
- Done $100M-worth of deals
- 10 years of experience
- Look at pro forma
- Background check, references
[17:06] A case study of Hunter’s ideal investment
- A-class property in Woodstock, GA
- No value-add strategies in place
- Previous owner just expanded by 222 climate-controlled units
- Market 90% occupied, property 60% occupied
- Adding ancillary income items = additional $4K/month
[19:44] Hunter’s take on trends in self-storage
- On-demand services
- Automation
- Increase in demand as affluent baby boomers downsize
[21:36] Hunter’s advice around next steps for aspiring investors
- Leverage experience of someone in game for 10+ years
- Passive investing affords freedom to do what you love
[23:03] What Hunter is excited about
- Construction boom
- Unique opportunities to buy from sophisticated groups
Connect with Hunter Thompson Cash Flow Connections
Cash Flow Connections Real Estate Podcast
Free eBook: Little Boxes, Big Profits
Resources CoStar
LoopNet
Invest with Michael
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
‘At the end, you’re trying to find your highest and best use. How can you effectively create value based on your limited time?’
Perhaps you’re interested in getting into multifamily, but syndication is not for you. If your strengths lie in networking and raising money, you can get into apartment building investing as a general partner who specializes in soliciting capital.
Based in Hawaii, Lane Kawaoka still works his day job as an engineer, but he is quickly growing passive income streams via multi-family investing. After graduating from college with a degree in engineering, he got a job in construction management that required a lot of travel. In 2009, Lane bought a primary residence in Seattle—but he was never there. He decided to rent out his A-class property, and the cashflow generated from that enterprise inspired him to purchase more.
From there, Lane expanded his single-family portfolio, eventually discovering turnkey rentals. Today he is pursuing multi-family, recently landing his first 190-unit deal. But Lane is working deals from a different angle, coming in as the general partner who specializes in raising capital. On this episode, he shares his unique multi-family strategy, explaining how his Simple Passive Cashflow blog and podcast position him as a thought-leader in the space and afford the opportunity to network. Listen in to learn how Lane is compensated as the money-raiser, and hear his advice for aspiring entrepreneurs about building a platform that establishes your credibility as a multi-family investor!
Key Takeaways [2:30] How Lane got into real estate
- Engineer in construction management
- Rarely at primary residence, traveling for work
- Decided to rent, then purchase more
- Stumbled on turnkey rentals
- Working to build passive income streams
[6:11] Why Lane made the shift to multifamily
- Tired of ‘managing the managers’
- Realized single-family not scalable
[7:33] Why Lane was slow to get started in multi-family
- No substantial net worth, experience
- Thought had to be lead
- Finally paid mentor to help
[8:33] The four parts necessary to do a multi-family deal
- Net worth
- Raising money
- Experience
- Finding deal
[9:24] How Lane leverages his blog and podcast
- Tired of answering same questions about single-family
- Started blog/podcast to address those questions
- Good avenue for building relationships with like-minded people
- Platform adds to credibility
[10:20] Lane’s approach to finding deals
- Slow start (18 months)
- Contact junior associates on brokerage websites
[11:58] Lane’s first multi-family deal
- Came together in last six months
- 190-unit in Texas
- Came in as passive investor
[13:36] Lane’s multi-family strategy
- Not interested in being syndicator
- Multi-family game so big, specialization is necessary
- Talent lies in raising money
[15:09] How Lane is compensated as the money-raiser
- Receives promo raise rate
- Get in as general partner (passive income stream)
[15:55] Lane’s strength in accessing capital
- High net-worth network
- Would rather spend time on podcast than analyzing deals
[17:36] Lane’s multi-family strategy moving forward
- Build syndication business, portfolio
- Get people out of ‘Wall Street roller coaster’
- Raise capital, invest alongside
[19:37] Lane’s advice for aspiring entrepreneurs
- Build track record
- Create platform as thought-leader (video, audio, blog, meetups)
- Find your strengths and double down
Connect with Lane Kawaoka Simple Passive Cashflow
Email lane@simplepassivecashflow.com
Resources Bigger Pockets
LoopNet
Invest with Michael
Podcast Show Notes
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
- Download
- Text “secretbook” to 44222
Review the Podcast on iTunes
So you want to get into multi-family investing, but you don’t have the money or the track record. Maybe you think that baby steps is the way to go, learning the game through single-family rentals or managing a small complex on your own. But if you have the right team, you don’t need to have $5M in the bank or 15 years of property management experience. You can serve as the quarterback and focus your energy on putting together deals, while your mortgage broker, property management company, and general contractor execute the playbook.
Devin Elder was born and raised in San Antonio, Texas. After graduating from UT-San Antonio with a degree in business, he went the corporate route, working in sales and operations for several area companies. But with each promotion, Devin lost a little more time and a little more autonomy. Then he got fired. In that moment, Devin vowed to find an alternative. At about the same time, Devin bought, renovated and refinanced his first single-family rental. Initially skeptical of real estate as a viable investment, he soon realized that the cashflow from rental properties could be his way out.
Two years and 20 doors later, Devin quit his last corporate job and became a full-time investor. Since then, he has shifted his focus to multi-family, working his way from a six-unit that he managed himself to a 75-unit to a 192-unit. Today Devin shares how a desire to scale his real estate business inspired the shift from single- to multi-family and why he takes pride in having a positive impact on the community. He explains the initial lack of confidence that held him back from pursuing multi-family and how he overcame that with the right peer group and a ‘someday is now’ philosophy. Listen in to understand why Devin would pursue entrepreneurship sooner if he could do it all over again, and hear his advice around ‘borrowing credibility’ to jump-start your multi-family business!
Key Takeaways [2:33] What inspired Devin to leave the corporate world for real estate
- Climbing corporate ladder, lost time/autonomy
- Giving his all, got fired
- Vowed to find alternative
- Single-family investment proved viable
[5:00] Devin’s initial strategy
- Acquire enough cashflow to cover bills
- Put team together, several single-family rentals
- 20 doors in two years
- Moved to tears on last day of work
[7:59] Devin’s shift from single- to multi-family
- Wanted to scale business (5X cashflow)
- Realized multi-family was more feasible
- Banks willing to lend (established business model)
[9:37] Devin’s multi-family starting point
- C-area six-unit bought, managed himself
- Wasn’t ready to take other people’s money
- Friends from local mentor group encouraged bigger deals
[12:17] Devin’s second multi-family deal
- 75-unit, deep value-add
- Unsafe building, occupancy low
- Capital raise with 11 investors
- $1.2M renovation
[15:46] Devin’s take on working your way up in multi-family
- Jump into 80-plus units
- 5-80 units is ‘no man’s land’
- Larger project allows for staffing
[16:59] Devin’s advice to his younger self
- Multi-family is way to go
- Hoard your money to get first deal done
- Second will follow in quick succession
[18:06] Devin’s current multi-family deal
- 192-unit in nicer area
- 8-10% cash-on-cash return
- Equity multiple of two over five years
[19:27] Devin’s advice to aspiring real estate investors
- Employ ‘borrowed credibility’
- Build team with experience, track record
- Act as quarterback, specialize in putting deal together
[22:47] Devin’s failures
- Lost own money on flip house, improved systems
- Counts not pursuing entrepreneurship sooner as failure
[24:00] How Devin overcame a lack of confidence
- ‘Someday is now’
- Quitting job as mental hurdle
[24:52] Devin’s AHA moment
- Desire to create life he enjoys every day
- Not working toward ‘someday’
[25:33] What Devin is excited about
- Making positive impact on community through multi-family
- Rewarding to give investors good return
- Rehab of property impacts neighborhood
Connect with Devin Elder DJE Texas Management Group
Resources Partner with Michael
Invest with Michael
Podcast Show Notes
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
“I had this moment where I realized, ‘No, I’m not going to be the CEO of somebody else’s dreams. I’m going to be the CEO of my own dreams.’ I declared that day that I was never going to be an employee again.”
Tamar Mar is an adventurer at heart. She spent 20 years in the startup and small business arena, working as COO for prominent companies in the FinTech and real estate brokerage space. After making that decision to be the CEO of her own dreams, Tamar became what she calls a ‘business opportunist,’ building out her real estate portfolio and investing in small businesses like The Fitness Shop, a high-end specialty fitness equipment retailer.
Tamar invested in her first property at the age of 19, and she has owned rental properties for 15-plus years. From purchasing homes on auction to fix-and-flips to large-scale renovations projects, she has a keen eye for evaluating deals. This year, Tamar has shifted her focus to the acquisition of underperforming commercial and multi-family. Today she shares how she made the shift from single- tomulti-family real estate, her approach to landing the first deal, and how she has become a ‘capital magnet.’ Listen in and get inspired to dream big and ‘take massive stinking action every day.’
Key Takeaways [3:06] How Tamar got involved with real estate
- Bought townhouse at age 19
- Owned rental properties last 15 years
- Needed own business to be happy professionally
- Read The Millionaire Real Estate Investor
[5:52] Tamar’s first real estate strategy
- Got real estate license for access to properties
- Purchased homes on auction, sight unseen
[6:40] Tamar’s shift from single- to multi-family
- Pursued single-family for three years
- Learned about syndication
- Could use operations expertise from startup world
[7:24] Why people are intimidated by multi-family
- SEC regulations, working with attorneys
- Raising capital
[8:04] What inspired Tamar’s shift to multi-family
- Ambitious goal of $250K in annual passive net income
- Couldn’t scale up quickly enough with single-family (100-250 doors)
[9:03] Tamar’s approach to landing her first multi-family deal
- Studied multi-family forums on BiggerPockets, Michael’s Syndicated Deal Analyzer
- Practiced analyzing deals on LoopNet
- Began networking, building out team
- Found great deal, put in offer
- Landed 15-unit complex but didn’t have capital
[12:05] How Tamar raised the capital to fund her first multi-family deal
- Needed $325K ($825K purchase price)
- Additional capital for maintenance
- Reach out to friends/family, networking groups
- 6 investors (4 existing relationships, 2 new)
[14:51] How the project is performing so far
- Secured property manager in Spokane
- Rents above $300/door when purchased
- Renovating all units, increasing price to market rate
[16:15] Tamar’s exit strategy
- Ten-year hold with refinance in year two or three
- Return 70-80% of investors’ original capital with refi (if not more)
[16:57] How the Law of the First Deal is impacting Tamar
- Broker approached with off-market deal on 23-unit
- Tamar walked away during due diligence
- Broker contacted with 16-unit just hitting market
- Landed 16-unit, walk-through tomorrow
[21:23] How Tamar’s multi-family success has shifted her perspective
- Reevaluating goals, plans to secure 100 units by 2018 (with additional 50/year moving forward)
- Went from three to 33 units in six months
[22:15] Tamar’s AHA moment
- Christmas week of last year, in talks to become CEO of company back East
- Declared independence, not willing to be ‘CEO of someone else’s dreams’
[24:06] Tamar’s advice to her younger self
- Dream way bigger, earlier
[25:03] Tamar’s advice to aspiring multi-family investors
- Pursue new knowledge
- Follow in footsteps of people on path you want to take
- ‘Take massive stinking action every day’
[26:22] What Tamar is excited about moving forward
- Continued pursuit of multi-family deals
- Starting new podcast, Investing for Life
Connect with Tamar Mar Marota Group
Email tamar.mar@marotagroup.com
Investing for Life Podcast
Resources The Millionaire Real Estate Investor by Gary Keller, Dave Jenks and Jay Papasan
BiggerPockets
Syndicated Deal Analyzer
LoopNet
Podcast Show Notes
Coaching with Michael
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
What is your Stupid Human Trick?
We all have a unique ability that seems incredible to others. The trick is figuring out what it is that you are particularly good at and using those strengths to craft the processes and systems that capture wealth.
Cashflow Ninja M.C. Laubscher came to the US from South Africa in 2001 with a backpack and $500. He played competitive rugby and learned the real estate business via experience, buying his first property at the age of 21. M.C. befriended a wealthy multifamily investor who became his ‘accidental mentor,’ asking M.C. to serve in several different capacities from maintenance to leasing to property management to acquisitions. This education served him well, giving M.C. invaluable insight into the world of the wealthy and an understanding of all the moving parts of real estate. Now he is the President and Chief Wealth Strategist of Valhalla Wealth, a wealth management firm that leverages the Infinite Banking Concept to help clients co-author a plan for achieving financial security, independence, freedom and significance.
M.C. is also the host of Cashflow Ninja, a popular business and investing podcast that seeks to empower people to grow and protect their wealth in the new economy. Today M.C. shares the best investment opportunities out there that combat wealth destroyers, why people struggle financially, and his advice for investors who want to break the mold. Listen and learn how to determine the wealth-building vehicle that’s right for you and the importance of investing in your own health, relationships and education. You are your own greatest asset, and M.C. is here to inspire you to reach your potential through multifamily investing!
Key Takeaways [2:48] How M.C. got involved in real estate
- Read Rich Dad, Poor Dad
- Bought first property at age 21
- Befriended wealthy multifamily investor
[5:14] What surprised M.C. about ‘the world of the wealthy’
- Complexity of determining overall plan
[6:36] M.C.’s take on the best investments out there
- Combat wealth destroyers (taxes, inflations, commission/fees)
- Real estate
- Insurance products
[10:05] Why people struggle financially
- Outdated education model
- Doesn’t empower people, teach skills to thrive
- Lack of financial education
- Outsource wealth-building
- Conventional model set up to fail
- Current environment (government debt, bankruptcy)
[14:08] M.C.’s advice to people who want to break the mold
- Be crystal clear about what you want (economic independence number)
- Determine why it matters
- Decide who you need to become
- Create systems/processes to capture wealth
- Put wealth into something that provides cashflow
- ‘Rinse and repeat’
[19:45] The benefits of investing in insurance products
- Safe, secure, growing and liquid
- Ability to borrow 90% from policy, put into real estate investments
- Taxes on seed, not harvest
[23:07] How to figure out which vehicle or process is best for you
- Focus on one thing in beginning
- Once hit number, look at diversifying
[26:26] M.C.’s lowest depth of misery
- Sports background prepared to absorb enormous disappointment
- Sports injury, failed business deal and relationships fell apart all at once
- Learned due diligence
[28:56] M.C.’s aha moments
- Invest in self as life-long learner
- Continue to grow network
[31:22] What M.C. would tell his younger self
- You are your #1 greatest asset
- Second greatest asset is relationships
- Certain skills will not go away (marketing, sales and customer service)
- Business must solve problems, create outcomes
[34:30] M.C.’s perfect day
- Work out, family time and personal development
- Attack the day at 11am (calls, interviews and case designs)
- Family time, reading in the evening
Connect with M.C. Laubscher Cashflow Ninja
Valhalla Wealth
Collapsing Time Webinar
Banking Principles Presentation
Resources Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Becoming Your Own Banker: Unlock the Infinite Banking Concept by R. Nelson Nash
Coaching with Michael
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Wealth is code for freedom.
If you want to be a millionaire, it’s probably because you want control over your time. You want the autonomy to make your days your own and spend them with the people you love. Today’s guest chose real estate as his path to freedom, spending less than he earned and investing the excess in apartment buildings. Maybe you are interested in doing following a similar path, but something is holding you back…
Paul Morris is the co-author of Wealth Can’t Wait, a New York Times bestseller that identifies the seven traps that keep people from building wealth and equips readers with a comprehensive set of skills to achieve financial freedom. An active and consistent investor, he has grown his real estate portfolio to more than 700 rental units and 150,000 square feet of retail commercial space, and Paul was named among the 200 Most Powerful People in Residential Real Estate in 2013 and 2014.
Prior to working full-time in real estate, Paul enjoyed a successful legal career, working as an associate at a major international law firm and as Senior Counsel with the US Department of Justice. He has a degree in economics, a master’s in management from Oxford, and a JD from Cornell Law School. Today Paul shares his early experience in real estate, investing in a duplex while he was still in school. He speaks to the kinds of investments he prefers, the pros and cons of working with a partner, and how to get started in real estate with little to no money. Listen in to understand the three rules for investing that have helped Paul avoid losing money, as well as the seven wealth traps that keep people ‘stuck on the sidelines.’ Find out what’s holding you back and get on the path to health, wealth and freedom!
Key Takeaways [1:55] How Paul got into real estate
- Working class dad invested in real estate
- Provided income without working
- Bought duplex in 1990 (Ugly Duckling)
- Always worked with partner, gives courage
[4:59] The pros and cons of having a partner
- Paul recommends working without partner
- Choose partners based on brainpower, integrity
- Clarify deal points, exit strategy in writing
[8:11] The kinds of investments Paul favors
- Prefers buy and hold strategy
- Buy and flip too risky
[11:03] Paul’s philosophy of wealth as code for freedom
- Ask yourself why you want to build wealth
- Money affords power to choose, create
- Allows to pursue greater goals
- Love, health and time
[15:57] The 7 Wealth Traps
- Staying in a comfortable job
- Avoiding risk
- Viewing wealth negatively
- Giving up (not staying the course)
- Holding on to toxic friendships, the Weak Social Circle
- Victimizing yourself
- Thinking you know it all
[26:40] How to start investing in real estate with little or no money
- Buy a home, live with roommates to cover mortgage
- Use other people’s money
[29:32] Paul’s 3 rules for investing to avoid losing money
- Buy where you know
- Buy value-add (worst house in great/gentrifying neighborhood)
- Buy cashflow
[33:12] What Paul is excited about
- Providing great, safe units in LA neighborhoods ‘turning a corner’
- Traveling with daughter, girlfriend
- Becoming better table tennis player
[34:04] Paul’s perfect day
- Freedom to dress casually, work from home/coffee shop
- Finished in time to pick up daughter from school bus
- Hot yoga class with girlfriend
Connect with Paul Morris morrisx.com
Paul on LinkedIn
Resources Wealth Can’t Wait: Avoid the 7 Wealth Traps, Implement the & Business Pillars, and Complete a Life Audit Today! By David Osborn and Paul Morris
The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley and William D. Danko
“7 Ways You’re Hurting Your Chances at Building Wealth, According to 2 Self-Made Millionaires” in Business Insider
Interview with Lewis Howes and Grant Cardone
“7 Strategies That Will Help You Build More Wealth, According to 2 Self-Made Millionaires” in Business Insider
“Are You on Track to be Wealthy? Two Successful Entrepreneurs Share the Most Important Skill to Have” in Forbes
“5 Timely Investments You Should Consider This Summer” in Forbes
Coaching with Michael
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There’s more than one way to skin a cat, and though we spend a lot of time on the podcast addressing aspiring syndicators, there are other routes to financial freedom via real estate investing. High net worth individuals who are interested in getting a little skin in the multifamily game should consider the benefits of passive investing. Regardless of approach, the end game of apartment building investing remains the same: Permanently replace your income and get out of the rat race for good!
Dr. Tom Black (also known as The Passive Income Physician) was working as a busy emergency doctor in a high-volume trauma center. Yes, he was making good money, but he was working insane hours and he rarely saw his family. Tom was financially secure, but far from financially free—and he was fed up with sacrificing his time for money. Already enamored by the cashflow potential of real estate, Tom purchased several single-family homes and even tried his hand at commercial real estate before stumbling into his first multifamily deal, a 305-unit in Arlington, two years ago.
Tom’s brother, Tim Black, enjoyed a 32-year career in entertainment, retiring as the COO of a large hospitality company in March of 2016 when the business was sold to private equity. Eventually, his brother convinced him that multifamily was the best means to making your money work for you, and together they started Napali Capital. The firm has grown quickly, and the Blacks currently have 1,000-plus units in assets under management. Today Tom and Tim explain why multifamily is the best choice for passive investors, how to assess the risk profile of a multifamily deal, and the characteristics to look for in a potential syndicator. Listen and learn the returns a passive investor can expect from multifamily, the skill set necessary to become a successful investor, and the staggering tax benefits afforded by the platform.
Key Takeaways [2:41] What prompted Tom’s involvement in real estate
- Poor student in HS, gained confidence in Navy
- Top of class in medical school
- Couldn’t sell house after finishing residency
- Rented to incoming resident
- Enamored with cashflow
- Busy doctor in high-volume trauma center
- Making good money, but sacrificing too much time
- Bought land in east Texas for commercial development
- Resigned from practice and moved to pursue real estate
[5:51] When Tom identified multifamily as a ‘way out’
- Bought foreclosures in Houston during downturn
- Single-family was hard work
- Studying economies of scale
- 16-unit commercial development offered buffer in budget
- Multifamily could take him to next level
[7:23] Tom’s shift from single family to commercial real estate
- Cashflow limited to specific markets, required travel
- Single-family very competitive
- Saw vacant land, wanted to be ‘master of own destiny’
[8:19] Why Tom wanted out of full-time medicine
- Concept of security vs. freedom
- Medical practice not sustainable
- Doctors in their 70’s still working
[9:25] Tom’s first multifamily deal
- Moved to Dallas for medical directorship
- Attended real estate investing lectures
- Stumbled onto 305-unit off-the-market deal in Arlington
[10:29] The difference between commercial development and multifamily
- Developing is rough, many working parts
- Multifamily offers formula for success, mitigated risk
- Evidence-based reasoning appealed to Tom as doctor
[13:31] Tom’s advice around quitting your day job
- He continues to work in medicine one day/week
- Don’t be in a hurry to quit until achieve cashflow
[14:34] How Tim came to work with his brother
- Poor student, but excelled at leadership
- 32-year career in hospitality/entertainment
- Retired in March 2016 (COO of large hospitality company)
- Started Napali Capital together, capitalizing on each other’s strengths
- Firm has grown rapidly, responsibly
- Education is foundation of their business
[16:54] Why multifamily is the best choice for passive investors
- Money works for you (cashflow, appreciation, depreciation, amortization)
- Lack of affordable housing, cultural trend to downsize
- Multifamily is stable and tangible
[19:22] How to assess the risk profile of a multifamily deal
- Depends on syndicator, underwriter
- Napali Capital is very risk averse (2% raises year-over-year)
- Tim & Tom don’t offer huge returns (9% cash-on-cash)
[20:41] The returns a passive investor can expect in multifamily
- 9% cash-on-cash
- 90-100% return in five years
- Napali always exceeds projections
- 130% in 24 months on 305-unit
[22:22] The skill set necessary for a passive investor
- Ability to read P&L
- Knowledge of underwriting
- Understanding of costs (rent rates, insurance)
- Consider a mentor
[23:58] The Black’s advice around choosing a syndicator
- Look for trust, integrity
- Communication is key
- Transparency (share financials)
- Invest alongside you
[25:54] How to pacify the passive investor’s fear around risk
- Trust the track record, pedigree of the syndication team
- Stock market presents much greater risk
[27:06] The staggering tax benefits of multifamily
- Stock market, mutual funds require payment of capital gains tax
- With depreciation, taxed income is either substantially less or zero
[30:10] Tom’s final tips for aspiring multifamily investors
- Get off the sidelines
- Dip your toe in the water (crowdfunding)
- Get educated
[31:09] What the Blacks are excited about
- Growth of firm
- Dynamic of relationship
Connect with Tim & Tom Black Napali Capital
Email Tim: tim@napalicap.com
Email Tom: thomas@napalicap.com
Resources The Passive Income Physician Blog
The Passive Income Physician: Surviving a Career Crisis by Expanding Net Worth by Thomas Black MD
Invest with Michael
Financial Freedom Summit Wait List
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Your chances of doing even a 60-unit multifamily deal on your own—with no track record—are very slim. Even with the capital and the knowledge, if you are lacking in the reputation department, brokers will have no confidence in your ability to close. Enter Nighthawk Equity, my partnership with Mark Kenney. You bring the deals, and Nighthawk does the rest.
Mark has been investing in real estate since he graduated from Michigan State 23 years ago, partnering with his twin brother to buy and rehab a $36K duplex. He continued to pursue small deals and flips during his career as a CPA and consultant for KPMD. Eventually, he started his own IT company. The business thrived, but 80-hour weeks and extensive travel translated to suffering in his personal life. With his marriage in trouble, Mark made the decision to take a huge pay cut, hand off the big projects to someone else, and pursue real estate investing full-time.
With the support of his family, Mark spent nearly a year securing his first big multifamily deal, a 64-unit building in Dallas. Adhering to the ‘law of the first deal,’ his second and third deals followed right away. In four years, Mark has purchased 2,000 units and raised tens of millions in capital. Today, Mark shares the process of working with Nighthawk Equity to secure a deal, explaining how we came to join forces, the response to Nighthawk, and the right time to get Nighthawk involved in your deal. Listen in to understand the mission of Nighthawk Equity, and how the firm also supports passive investors looking for a solid ROI.
Key Takeaways [2:36] How Mark got started with real estate
- Didn’t have much money growing up
- Knew real estate was tangible
- Bought $36K duplex right out of college (with brother)
- Used money saved over years for down payment
- Full rehab
- Continued to buy, rehab small multifamily properties
[5:13] Mark’s decision to become a full-time real estate investor
- Worked as CPA, then consultant for KPMD
- Founded successful IT company
- Working 80 hours/week, projects all over world
- Personal life and health falling apart
- Decided to quit four years ago
- Took huge pay cut, turned projects over
[7:16] Mark’s first syndicated multifamily deal (64 units)
- Took nearly a year to secure deal (build relationships, team)
- Raised $1M with one general partner, 14 other investors
[9:44] The deals that followed in rapid succession after the first
- 208-unit within two months
- 255-unit, 454-unit and 344-unit within short period after that
- Found partner with track record, relationships in Atlanta
- 800 units in Atlanta this year alone
- Raising money easier as well ($2.8M, $6.2M, $4M)
[11:30] The importance of surrounding yourself with the right people
- Mark’s dad talked him out of buying early on
- Risk involved in anything you do
- Listen to wrong people, never do deal
[12:46] Michael and Mark’s partnership
- Joined forces to scale transactional side of business
- Chances of doing deal on your own very slim
- Leverage their track record, reputation as partners
[14:51] The response to Nighthawk Equity
- Looking for deals as syndicators
- ‘Floodgates opened’ after Episode 74
- Deals in OKC, Dallas, Memphis and Houston
- Nighthawk diminishes fear of raising capital
[17:47] The process of working with Mark and Michael
- Do initial underwriting, receive feedback
- Coach qualifies (realities of assumptions)
- Patrick reviews deal
- Strong likelihood deal will work before gets to Mark
[18:52] The right time to get Nighthawk involved
- After deal analyzed, researched properly
- After pre-negotiation (verbal agreement, numbers discussed)
- Before LOI
- Before contract signed
[20:44] The future of Nighthawk
- Help new investors alter mindset (i.e.: 69- to 321-unit in five months)
- Continue to pursue joint ventures with students
- Carry on mission to help others gain financial freedom
[24:44] Mark’s pitch to passive investors re: multifamily
- Meets basic need, never going away
- Incredible ROI
- Performed well during recession (.4% default rate)
- Tax benefits (pay little/nothing due to depreciation)
Connect with Mark Kenney Think Multifamily
Email: mark@thinkmultifamily.com
Nighthawk Equity
Resources Podcast Episode 74
Partner with Michael
Invest with Michael
Financial Freedom Summit Wait List
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
One of the big real estate rookie mistakes is to turn into a Walmart shopper as you build your team. It is easy to see a coach, lawyer, or property manager as an expense and choose to go with someone less experienced—or even elect to do the job yourself. But today’s guest can attest to the fact that a quality team is an investment that can save you millions in the long run.
Damion Lupo is a serial entrepreneur with a ‘think big’ mentality. In the last 25 years, he’s founded more than 30 companies in a number of industries including insurance, precious metals, venture capital, financial consulting and real estate. Damion is also a black belt in three different disciplines and the architect of Yokido, his very own martial art.
Damion’s personal philosophy centers around self-responsibility and a conviction that candor, growth and a big vision provide the only path to freedom. His commitment to these values led to the creation of Total Control Financial, a FinTech that seeks to reinvent financial control and empower Main Street with the tools of financial transformation. Today Damion discusses his first multifamily deal, a 119-unit property in Memphis that resulted in a $2M loss, and the lessons he learned from the experience. He shares the transformational power of failure, the importance of building a team you can trust, and the extraordinary value of a mentor. Learn how Damion’s shift from consumer to contributor had a revolutionary impact on his life.
Key Takeaways [4:03] How Damion got into real estate
- ‘Tripped’ into it
- Read Rich Dad, Poor Dad
- Attended seminar for additional resources
- Attracted to big-time cashflow potential
- Quit insurance to pursue real estate
[5:44] Damion’s first steps in real estate
- Bought house with Visa card
- Planned to sell on payments after remodel
- Strategies in place to pursue more properties, but wasn’t taking action
- Failure to return phone calls almost led to bankruptcy
[7:18] How Damion was able to avoid bankruptcy
- Gained momentum by purchasing eight houses in month
- Purchased another 50 houses over next year (AZ, AL)
[7:58] How Damion got stretched too thin early in his real estate career
- Despite success, decided to try something different
- Started high-end rehabs all over country
- No team in place to help
- Lost track of projects
- Not paying attention to numbers
- Let ego take over (want more and more)
[9:35] The lessons Damion learned from his first multifamily deal (119-unit in Memphis)
- If you can’t be there, send team member with ‘massive integrity’
- Listen to the numbers, get out if necessary
- Stress test your team before going all-in
- Don’t delegate too much, too soon
[14:31] What Damion could have done differently on the Memphis deal
- Choose experienced partner
- Move to site or have partner on-site
- Invest in an experienced team, especially project manager
- Leverage experience of mentors (make new mistakes)
[19:50] The value of a coach/ mentor
- Damion lost $5M over two years after firing coach
- Powerful to have people ‘call you on your shit’
- Don’t let ego get in the way of listening
- Helps you be methodical (rather than emotional)
- Offers perspective, intuition to pass on bad deals
[24:48] Damion’s advice around leading a team
- Clarify expectations up front
- Have team share back what was heard in own words
[25:52] How Damion reinvented himself after hitting rock bottom
- Equated net worth with self-worth (identity tied to money)
- Learned that impact must be driver, wealth as side effect
- Spent two years making shift from consumer to contributor
- Teaching (martial arts, financial literacy) allows him to give, be present
- People with contributing mentality happier, more successful
- Can’t think your way to your Om, must do
[32:45] How dark times set you up for success and fulfillment
- Must experience trauma to learn you are not in control
- Recognize difference between success and fulfillment
- Damion finds fulfillment in seeing people get out of ‘financial bondage’
Connect with Damion Lupo DamionLupo.com
Damion’s Books
Reinvented Life Workbook
Resources Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Tim Ferriss
Financial Freedom Summit Wait List
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
‘That’s just the way I’m built: Nothing’s going to stop me.’
Joseph Gozlan’s story defines the word GRIT. Once he decided that multi-family was the route he wanted to take, Joseph continued to drive through every challenge, getting creative and doing whatever it took to secure his first deal despite the roadblocks and frustrations. Three years later, he is the proud owner of two apartment buildings, and he has five properties in the pipeline. Joseph’s living expenses are covered, and he is considering a transition into full-time real estate in the very near future.
Joseph got his start in real estate back in 2005 when he and his new wife realized that their new five-bedroom home was too big for just the two of them, so they chose to stay in an apartment and rent the property. Two years later, they moved to the United States from Israel and recognized the opportunity provided by the market collapse. The Gozlans secured their real estate licenses and began actively hunting for deals, purchasing a duplex and several single-family homes.
In 2015, Joseph realized there was much more value in apartments than could be gained in scaling single-family homes, and he started extensive research into multi-family investment. Unfortunately, Joseph faced a number of hurdles along the way, and it took a full two years to secure his first 22-unit apartment complex. When many would-be multi-family investors would have given up, Joseph persevered, and today he shares his long road to successful apartment building investing with us. Listen in and get inspired as Joseph discusses why he chose real estate in the first place, the circumstances around his shift to multi-family, and how he has maintained his full-time job in IT while developing a lucrative real estate portfolio.
Key Takeaways [1:59] Joseph’s start in real estate
- Read Rich Dad, Poor Dad in college
- Got married, lived in small apartment
- Purchased house, too big for couple
- Chose to rent house, stay in apartment
- Moved to US in 2007
- Joseph and wife got real estate licenses
- Actively hunted for deals after market collapse
- Bought duplex in Plano, TX (paid $180K, invested $30K in renovations)
- Purchased additional single-family homes until numbers changed in 2013
[4:34] Why Joseph chose real estate in the first place
- Wants to write giant cardboard check for $1M to children’s hospital
- Early retirement, comfortable living, won’t have to answer to boss
- Tangible assets like real estate trump stock market
- Realized could be wealth-building strategy, key to financial freedom
[6:26] Joseph’s definition of financial freedom
- Do what you want
- Work from anywhere
- No worry re: bills
- Kids won’t experience struggle (like he did)
[7:22] The circumstances around Joseph’s shift to multi-family
- Two and a half years ago, duplex had foundation issues
- Big ticket damage to another property at same time
- Spent $40K to fix, wiped out five years cashflow
- Recognized advantages of multi-family (single location, risk spread across multiple units)
- Began extensive research (books, podcasts, BiggerPockets)
[11:11] The long road to Joseph’s first deal
- Reached out to brokers, no response
- Decided to source deal himself, began marketing (postcards, letters, phone calls)
- Built rapport with owner/custom-builder of 22-unit apartment
- Owner agreed to seller financing
- Refinanced duplex and another property to afford
[14:02] The results of Joseph’s first deal
- 23 days from signed contract to keys
- Brought in property management company
- Added $600—$800K in value via operation efficiency
- Spends one hour with management company/week to assure accountability
[15:58] How Joseph handled concurrently working full-time
- Sacrifice necessary
- Some sleepless nights
- Spent weekends looking at property, took occasional days off
- Difficult but doable
[16:53] How Joseph secured a second deal within six months
- Brokers responsive now that ‘closer’
- Lead through property management company on 102-unit in Lubbock, TX
- Knew costs, rent and demographics (unfair advantage)
- Tight underwriting, made win-win offer
[18:11] How Joseph financed his second deal
- ‘Ignorance’ gave him the confidence to raise funds
- Elected syndication to raise $1.4M
- Had to adjust underwriting model
- Learning curve around how to talk to investors
- Learned to focus on benefits (no headache), returns, low risk
- Did all himself in 45 stressful days
- Once one investor signs, recommend friends
[22:31] How Joseph’s second deal is performing
- Only three months in
- Great so far, working on renovations
- Compliments from competition, positive feedback from residents
- Joseph’s living expenses now covered on paper
- Anticipates feeling comfortable enough to quit job after second quarter
[24:33] How Joseph stuck with the multi-family plan despite his initial frustration
- Went into contract on another property first
- Realized much-deferred maintenance
- Seller refused to negotiate
- Had to back out since numbers didn’t work
- Not in Joseph’s personality to give up
[26:30] The snowball effect of multi-family deals
- Joseph already under contract on third deal for 28-unit
- Only took three days to get LOI signed (motivated seller)
- Five properties in pipeline now (off-market deals)
[28:17] Joseph’s plans for the future
- Recently renewed real estate license
- Sourcing deals himself (sent 1300 pieces of mail)
- Continue to work acquisitions
- Also transition to brokerage side
- Enjoys ‘coaching’ property management company, contributing ideas to improve processes
[30:08] What Joseph would tell his younger self
- Skip single-family, go straight to apartment buildings
- Could have thousands of units by now
[30:51] Joseph’s advice for hesitant multi-family investors
- Don’t go it alone
- Partner or get mentor to establish realistic expectations
- Offer value to mentor (i.e.: underwriting, boots on the ground)
Connect with Joseph Gozlan EBG Acquisitions
Eureka Business Group on Twitter
Multifamily Investing for Financial Freedom on Facebook
Resources Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
BiggerPockets
Michael’s Products
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
Most of the time, careful planning is a good thing. It is smart to develop a strategy first, and then take action on your goals. But the one situation in which it might be better to just put the blinders on and jump in? Multi-family real estate investment.
Pili and Jason Yarusi have a background in running restaurants and bars as well as experience in the family construction business. So when they were starting a family of their own and wanted to get out of the grind, real estate investment seemed like the perfect fit. They started doing capital-intensive flips and had success with out-of-state duplexes, but soon realized that flipping was a job that would have to be repeated time and time again. If the Yarusis wanted to achieve cashflow, apartment building investing was the way to go.
After doing a lot of reading and reaching out to mentors with multi-family experience, Pili and Jason found a quality property management company in Kentucky, and made use of the firm’s expertise to find a deal that fit their criteria. The Yarusis sold investors on their background of success in other businesses, and raised the $800K necessary to close on a 94-unit property. Today they share how their willingness to jump in without a clearly defined strategy paid off in the end and how they overcame the mindset challenges around multi-family investing. Listen in for Pili and Jason’s advice about reaching out to mentors and learning as you go.
Key Takeaways [1:39] The circumstances that motivated Pili and Jason to invest in real estate
- Ran restaurants, bars
- Family construction business ‘gratifying, but grueling’
- Pili pregnant with first child
[4:25] Pili and Jason’s start in-house flipping
- Capital-intensive flips
- No strategy going in (let idea grow)
- Also purchased two out-of-state duplexes on gut feeling
- Gave footprint (right questions, team members and processes)
[7:40] Why Pili and Jason shifted to multi-family
- Realization that one single-family vacancy = 100% vacancy
- Five vacancies in building with 100 doors = 95% occupancy
- Multi-family income means you can afford team (on-site manager, maintenance, etc.)
- Experience with duplexes taught them to vet property management company
[10:49] How the Yarusis moved forward once the decision to do multi-family was made
- Jason educated himself, sought mentors
- Utilized resources like BiggerPockets
- Looked for deals in favorable out-of-state markets
[12:50] The mindset challenges around multi-family
- Numbers seem scary (large = hard)
- Concerns about raising capital
[14:09] How to overcome mindset challenges
- Surround yourself with team, mentors
- Meet people at networking events, REIA meetings
- Reach out to friends of friends, other investors
- The more you talk, the more it seems doable
[16:28] The hurdle of raising capital
- Challenging due to lack of experience
- Sold people on background of success in other businesses
[18:24] How Pili and Jason chose the Kentucky market
- Looking for population growth, job growth/diversity
- Familiar with Kentucky (friends, sister there)
- Found property management company to offer feedback
- Discovered property that fit criteria
[21:58] The Yarusi’s outlook when it was time to sign the contract
- ‘Game time’
- Work toward closing
- Remain conservative (ensure return for investors)
[23:36] How much capital Pili and Jason raised for their first multi-family deal
- $800K
- Verbal commitments prior to contract
- Didn’t start due diligence period until written notice of records received (extra 30 days)
- One investor pulled out 20 days before closing
- Scrambled to fill in gap
[25:27] How the 94-unit property is performing
- Very well, achieved rent increases
- Modest increase for good tenants
- Turnovers up to market price
[26:45] The lessons Pili and Jason learned in their first multi-family deal
- Walk every unit on morning of closing
- Talk to everyone (don’t leave out any high-level investors)
[28:34] What’s next for the Yarusis
- 47- and 57-unit in Kentucky
- Bigger CapEx than first property
[29:56] Pili and Jason’s advice for aspiring apartment building investors
- If multi-family is your endgame, start now
- Consider the advantages of multi-family
- Easier to secure loan
- Can afford team
- Vacancies less debilitating
Connect with Pili and Jason Yarusi The REI Foundation Podcast
Email Jason at jason@yarusiholdings.com
Email Pili at pili@yarusiholdings.com
Resources BiggerPockets
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Review the Podcast on iTunes
All roads lead to multi-family. It seems that no matter how you get your start in real estate, the vast majority of investors come to the same conclusion: For passive, everlasting cashflow, multi-family is the way to go.
Jack Bosch came to the United States from Germany in 1997 to finish his college degree. He worked in the corporate world for several years, but soon found that it did not afford the life he wanted. His visa was dependent upon keeping his job, yet the company that was struggling, so Jack was inspired to start a company of his own.
Attracted to real estate because of its cashflow potential, Jack got his start flipping land. Over the course of three years, he developed a system that allowed him to do 3,800-plus deals, and he achieved financial freedom in a short time. Jack eventually moved into the single-family space, developing a portfolio of rental properties, and he finally graduated to multi-family in the last year. Today he shares the specifics of his transition to multi-family, his experience raising money for the first time, and his advice for investors who dismiss apartment buildings as an advanced strategy. Listen as he explains why he would have liked to get into multi-family sooner, and how you can get started in the space with no prior experience.
Key Takeaways [2:12] How Jack got involved in real estate
- Constant travel for work
- Only two weeks’ vacation
- Not the life he wanted to live
- Company struggling, many lost jobs
- Visa dependent on employment
- Desire to start own business
- Real estate appealed because of cashflow
[4:00] Jack’s start in flipping land
- Could sell land for seller financing
- Generate long-lasting passive cashflow
[5:36] How Jack defines a transaction
- One-time cash deals (flip house, get paid once)
- Temporary cash (give loan, receive interest)
- Monthly payments (flip land for seller financing, receive down payment + monthly installments for six to eight years until paid off)
- Forever cash (passive, everlasting income via multi-family)
[8:47] Jack’s transition to multi-family
- Began working real estate in 2002
- As of 2009, still hadn’t touched rental properties (thought too complicated)
- Discovered houses available for $50/ft²
- Purchased several dozen, rehabbed and managed themselves
- Made mistakes (bad tenants, spent too much on rehabs)
- Eventually found good property managers
- Learned to systematize
- Still not hassle-free (deal with one property at a time)
- Realized multi-family properties provide buffer
[12:52] Jack’s advice around the multi-family learning curve
- Acquisition, sourcing, negotiation, analysis and management processes are different
- Look for a partner-expert to learn from
- Jack did first deal on 93-unit in Louisiana with experienced friend
- Experience was ‘hands-on MBA in multi-family’
- Now building own team, additional funding sources
- Still works with partner on bigger projects
- Looking to build out own portfolio as well
[18:10] Jack’s experience with raising money
- First time on multi-family deal
- Benefitted from having reputation in market
- $1.4M raised in short time
- Felt responsibility as steward for someone else’s money
[21:01] Jack’s conclusions about multi-family
- At top of favorite investment methods list
- Securing good property management company is key
- Low risk, high reward (extremely safe investment)
- 93-unit property has doubled in value
- Recession-proof (extraordinarily low default rate)
[22:48] Why Jack would have liked to start multi-family sooner
- Cashflow would have been multi-fold higher
- Single-family experience did teach building, rehab
- Could have gone right to multi-family with proper guidance
- Employee mindset, thinking small held him back
- Success with early investments helped grow thinking
- Systems in place to make business scalable
- Some aspects of multi-family are easier than single-family
[28:20] Jack’s advice for investors who dismiss multi-family as an advanced strategy
- Shadow a coach/mentor
- Mentor acts as ‘time compressor’
- Help with mental hurdles, analyzing numbers
[30:26] What Jack is excited about
- Cashflow affords family opportunity to travel (Trips planned to Europe, Asia, Germany, South America)
- Business continues while they travel
- Looking to secure 5,000 units in five years
- Transform lives of investors (up to 16% yearly average returns)
Connect with Jack Jack on Facebook
JackBosch.com
JackBosch.com/apartments
JackBosch.com/land
Mastermind for Business Owners
Resources TheMichaelBlank.com
Michael’s Products
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Yes, crowdfunding is out of reach for the average newbie syndicator. But if you’ve got a great deal and a willingness to hustle, it is possible to partner with a larger real estate company and take advantage of the capital available through crowdfunding. Platforms like Realty Mogul are looking for sponsors with a track record, so if you don’t have one—find someone who does.
Jilliene Helman is the CEO of Realty Mogul, the premiere online marketplace for real estate investing. The platform employs cutting-edge technology to connect its network of 130,000 registered investors looking for passive investments in commercial real estate with established real estate companies looking to acquire and operate commercial properties.
Realty Mogul is a marriage of Jilliene’s affinities for financial services and technology. She founded the company in 2013 to take advantage of the opportunities around crowdfunding afforded by the JOBS Act. Today she discusses why Realty Mogul chose to focus on the commercial space, the types of investments the platform offers, and the Realty Mogul definition of a good deal. Learn about the evolution of the crowdfunding industry, and heed Jilliene’s advice about partnering for aspiring syndicators.
Key Takeaways [2:33] How the crowdfunding industry has evolved
- Started five years ago with passage of JOBS Act
- Has become more and more mainstream
- Began with donation-based sites (e.g.: Kickstarter, Indiegogo)
- Evolved into investment-based crowdfunding (i.e.: commercial real estate)
- Since 2013, Realty Mogul has raised $300M online
- Will continue to grow, scale
- Over $1B in invested capital through crowdfunding this year alone
- Provides investors access to private transactions
[3:55] Why Realty Mogul chose to focus on the commercial space
- Huge opportunity in single-family space early on (2013-2015)
- Banks off-loading residential properties
- Not easy to make money doing fix and flips
- Chose to focus on existing properties, tenants and cashflow
- Less risky than vacant residential property being renovated
[4:54] The types of investments Realty Mogul offers
- Joint venture (common) equity investments
- Paid last (riskiest part of capital stack)
- Gets piece of appreciation
- Preferred equity investments
- Paid before joint venture equity
- Receives flat, pre-negotiated rate (doesn’t get any of appreciation)
- Mezzanine debt investments
- Senior mortgage debt investments
[6:54] What Realty Mogul is looking for in a sponsor
- Don’t do business with first-time sponsors
- History, track record of success
- Real estate company with experience in market, property type
- Investors want to work with sophisticated real estate companies
- Typically don’t work with solo operators
- Looking for full-time sponsors with own company, employees
- Serious and professional about execution in investing in real estate
[8:34] Jilliene’s advice for aspiring syndicators
- Do a transaction
- Raise capital from friends, family
- Add value, build a track record
[10:12] Jilliene’s guidance around partnering with a larger real estate company to employ crowdfunding
- If have solid deal, no reason you can’t partner
- Will have to pay real estate company
- Won’t have control of transaction
- Realty Mogul requires one sponsor to have final say
[11:47] What Realty Mogul defines as a good deal
- Every deal is different
- Focus on cashflowing real estate (existing tenants)
- Majority of deals are Class B assets in secondary markets
- Look for opportunity to value-add
- 7-8% average cash-on-cash return to investors
- 15% IRR net to investors
[14:13] The requirements for passive investors on Realty Mogul
- Public, non-traded REIT open to all investors (diversified pool of commercial real estate investments)
- Private transactions limited to accredited investors (income above $200,000 or net worth above $1M)
[15:28] The process of becoming a passive investor with Realty Mogul
- Sign up for user account
- Select transaction
- Entire experience is digital
- REIT is blended vehicle
- Accredited investors pick and choose specific properties
[16:40] The benefits of working with Realty Mogul
- Track record
- Over $300M invested in commercial real estate
- Real estate companies do multiple transactions (speaks to experience)
- Network of 130,000 investors
[17:23] How Realty Mogul came to be
- Jilliene worked in banking (wealth management)
- Wealthiest clients were real estate investors
- With JOBS Act, Jilliene saw opportunity
- Blends her passions—financial services and technology
- Mission to help people generate wealth via real estate investing
[18:22] Jilliene’s take on the future of crowdfunding
- Will continue to grow
- More and more mainstream
- Investors more comfortable with doing transactions on internet
- Billion-dollar industry
Connect with Jilliene Realty Mogul
Resources Deal Desk
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
What gives a 27-year-old with no experience in apartment building investing the audacity to swing for the fence?
Patrick Duffy grew up in Southern California before heading east for college. After graduating from Harvard in 2013, he returned to SoCal to work as a commercial real estate banker and later for a hedge fund, buying non-performing mortgages. He grew up around real estate, his family owning a multi-family property since the 1950’s, and he had always intended to invest in apartments—as soon as he had the money to do so.
Before long, Patrick was unhappy at his job, so he started reaching out to investors he had lent to in order to get clarity on how to analyze deals. Despite his lack of experience on the principal side of real estate, Patrick started studying LoopNet and set the goal of securing 100 units in two years. Eventually, he discovered Michael’s Deal Desk resource, and used the Syndicated Deal Analyzer to get feedback on a 69-unit property in Memphis. The deal met Michael’s criteria, and the two forged a partnership.
Today Patrick explains the steps he took to research the Memphis market, how he made use of the act ‘as if’ approach to secure a letter of intent, and his best advice for working with investors. Listen in as he shares the mindset that helped him swing for the fence on a multi-family deal and how doing his first deal has changed the game for Patrick, as he aspires to reach 1,000 units in the next 12 months.
Key Takeaways [3:30] How Patrick landed on the partnering strategy to finance multi-family
- Briefly considered flipping single-family
- Preferred multi-family, but biggest block was capital
- Looked at creative financing options
- Partnering seemed like most feasible route
- Goal to secure 100 units in two years
[6:04] How Patrick found the Memphis deal
- Clarity re: how to analyze deals
- Practiced via LoopNet (comparing markets, packages from brokers)
- Underwriting to get feedback
- Memphis market seemed ideal (cap rates, unit sizes, price)
- Reached out to learn about Memphis market
- Found 69-unit deal on LoopNet
- Submitted to Syndicated Deal Analyzer
- Positive feedback from forum
- Called broker on New Year’s Eve
[9:23] Why Patrick continued to move forward
- Nothing to lose
- Deal met criteria for partnering via Deal Desk
- Act ‘as if’ approach to secure LOI
[11:13] Michael’s partnership with Patrick
- Impressed by Patrick’s thorough research
- Surprised by return (Memphis not one of published geographies)
- Got contract from seller, proposed changes
- Built team as went (property manager, lawyer)
- Patrick took initiative
- Under contract with seller
- Wire EMV
- Collect due diligence docs
- Financial due diligence process
- Create investor package
- Met in Memphis to look at property
- Michael sent sample deal package to investors
- Acquired financial commitments
- Hired SEC attorney
- Started appraisal process
[13:18] Patrick’s experience working with investors
- Michael’s network eager for deals that fit criteria
- Addressed questions about specifics of market
- SEC attorney had drafted necessary documents
- Used DocuSign to track eSignatures
[15:23] The closing process for the Memphis 69-unit deal
- Loan approved, investors wired funds
- Patrick received acquisition fee of $23,000
- Also reimbursed for expenses incurred during due diligence
[16:25] The impact of doing your first deal
- Only so much can be taught re: what to expect
- Once learn to partner, can scale quickly
- Feel more comfortable and taken more seriously
- Brings down barriers
- Patrick under contract on 196-unit deal two weeks later
- Expects to hit 1,000 units in next 12 months
[19:50] Why size isn’t a factor for Patrick
- It’s about process
- Anything under 500 units is viable
- Don’t worry about equity
- Finding deal is the issue (not money)
[21:35] Patrick’s advice for aspiring multi-family investors
- Take advantage of Deal Desk resources
- Does require high level of commitment
- Hard work is worth it
Connect with Patrick Email: pduffy32@gmail.com
Resources Deal Desk
Syndicated Deal Analyzer
Ultimate Apartment Investing Course
The Financial Freedom Summit Live
LoopNet
DocuSign
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Landing your first multi-family deal is much like pushing over the first in a series of dominoes: The second and third deals fall in rapid succession. In most cases, it is possible to replace your income one to three years from the moment you decide to change your life.
Brad Tacia’s story adheres to this Law of the First Deal. He was an engineer by trade, working for an auto parts manufacturer in Detroit. Though he survived the recession, Brad knew that he needed a backup plan. He began his foray into real estate with single-family homes, using a portion of his 401(k) to facilitate the investment.
Brad reached a turning point when he realized just how much of his daughter’s life he was missing. To speed up the process of achieving financial freedom, Brad and his wife used the Dave Ramsey program to cut their expenses and pay off their house—which allowed them to fund their first multi-family deal with a home equity loan. Brad’s second and third deals followed quickly on the heels of the first, and in two years, he had replaced his income. Brad quit his W-2 job, and now he controls 160 apartment units total. Listen as he explains his experience with Dave Ramsey’s Financial Peace University, how he funded his first three multi-family deals, and his secrets to becoming financially free in just two years. He also shares his knowledge around syndicating deals as well as the details of how his life has changed, making every day feel like Saturday!
Key Takeaways [4:26] Brad’s motivation to try real estate
- Recession hit in 2008
- Depressing time, had to lay people off
- Wanted to develop Plan B
- Read Rich Dad, Poor Dad and The Millionaire Real Estate Investor
- Initial ten-year plan to buy ten single-family houses
[6:36] What precipitated Brad’s shift to multi-family
- Daughter asking, “Do you have to work tomorrow?”
- Desire to spend more time with family
- Realized could achieve financial freedom faster with multi-family
[7:16] How Brad funded his first multi-family deal
- Used Dave Ramsey program to cut expenses
- Paid off house
- Funded 12-unit with home equity loan
[8:14] Brad’s experience with Financial Peace University
- Listened to Dave Ramsey audio discs with wife
- Employed common sense budgeting
- Made lifestyle adjustments (less eating out, cash budget for groceries)
- Paid off credit card debt, auto loans and house
- Felt safe in case of another downturn
[11:23] Brad’s next two multi-family deals
- Second deal six months after first
- Bought another 12-unit with partner (property manager)
- Third deal (63-unit) four months later
- Bought 50/50 with different partner (realtor)
- Replaced income in under two years
[13:23] How Brad developed the confidence to do his first multi-family deal
- Reading books
- Training, networking
- Honed skills in financial analysis
[14:01] Brad’s advice around funding multi-family deals
- Look for cheapest method
- Home equity loan only 3.3% interest
- IRA (taxes, penalty for withdrawal)
- Syndicating
[15:19] Brad’s experience syndicating deals
- Awkward to ask for money at first
- Not as difficult as imagined
- Frame as offering opportunity for 15% average annual ROI
[16:41] Brad’s secrets to becoming financially free in two years
- Get your expenses under control
- Employ courses that teach step-by-step process
- Income will snowball
[18:00] The significance of the first deal
- Learn the language
- Contacts, team in place (property manager, banker, inspectors, real estate brokers)
- Understand mechanics of deal
- Become addicted to cashflow
- Want to grow, take pressure off day job
[19:27] How Brad found time to do real estate on the side while working a demanding job
- Full-time engineering manager with 23 employees (50-60/hour weeks)
- Looked for deals before work
- Made phone calls during lunch hour
- Saw apartment buildings after work, weekends
[20:20] How Brad’s life has changed
- Building stronger relationships with family, friends
- Working out, eating well
- Getting enough sleep
- Completing projects had put off
- Bonding with coaching students (Ultimate Apartment Investing Coaching Program)
- Quitting full-time job allows to think more strategically, design life to make impact
[22:30] Brad’s perfect day
- Wake up without alarm
- Work out
- Family time
- Coach students
- Look for new deals
- Take vacations at will
- Every day feels like Saturday
[23:22] How Brad wants to be remembered
- Family man
- Mentor
- Inspire people to take risks (it’s risky not to go for it)
[24:34] Brad’s best advice for aspiring multi-family investors
- It’s more doable than you realize
- Choose five-year retirement plan over 40-year retirement plan
Connect with Brad Ultimate Apartment Investing Coaching Program
Apartment Investors of Michigan Facebook Group
Resources Apartment Building Investing Session #55
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki
The Millionaire Real Estate Investor by Gary Keller
Bigger Pockets
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
The Financial Freedom Summit Live
Review the Podcast on iTunes
What is stopping you from achieving financial freedom through apartment building investing? Is it because you don’t have single-family experience? Are you intimidated by the perceived complexity of the multi-family space? Or maybe you think you don’t have enough money to consider pursuing multi-family deals? Today’s guest has encountered and overcome all of these limiting beliefs, and today he reveals how to get out of your own way and get on the road to financial freedom.
Tyler Sheff is the founder of CashFlowGuys.com and the host of the Cash Flow Guys Podcast. He was making six figures as a merchant mariner when he and his wife took a hard look at their future. Tyler didn’t want to wait until he was 65 to enjoy life, so he took compensatory time and gave himself six months see if real estate investing would prove viable and provide the cashflow necessary to attain financial freedom.
In just 11 months, Tyler had replaced his income. At that point, he had invested in 26 units in Florida and Tennessee – using none of his own money. Now he leverages his 17 years of experience to demystify the real estate investing space, encouraging others to focus on cashflow and take massive action toward their goals. Today, Tyler shares his journey, explaining how he landed his first few multi-family deals, why single-family experience is unnecessary in the apartment building space, and how he employs relationship marketing to raise capital. Listen in as he unpacks each of the limiting beliefs that held him back and reveals how to overcome ‘analysis paralysis’ and move forward with your dreams of building passive income and escaping the rat race.
Key Takeaways [2:55] How Tyler got started in real estate
- Desire to ‘get rich quick’
- Made money as house flipper
- Sold portfolio before market crash
- Acquired huge tax bill
- Went to work for government as merchant mariner
- Climbed ranks to six-figure salary
[4:32] Why Tyler returned to real estate
- Way to legally, ethically avoid taxation
- Focus on cashflow this time (not appreciation)
- Job on ship kept away from family
- Not feasible to continue for 20 years (physical toll)
- Wanted better quality of life, time on hands
[8:08] Tyler’s experience as a landlord
- ‘Accidental landlord’ in late ‘90’s to maximize returns on sales of fix and flips
- Got into multi-family in 2014 to scale quickly
[9:10] Tyler’s first multi-family deal
- Pre-approved for VA mortgage
- ‘For Rent’ sign on four-plex
- Paid zero down, received check for $1700 at closing
- Moved into one unit, rented other three
- Rehabbed quickly
- Cashflow right away
- Converted one unit to vacation rental
- Cashflow increased from $1,200 to $5,000/month
[12:12] Tyler’s next two deals
- Learned to raise capital (Secrets of Successful Syndication seminar, Sam Freshman book)
- Built team, cut teeth on ten- and 12-plex in Memphis
- Tennessee known for cashflow (not organic appreciation)
- ‘Overimproved,’ didn’t see anticipated ROI
- Learned to analyze needs of tenants
- Brought to total of 26 units in 11 months
- Capital raised through IRA lenders
- Tyler able to quit government job
[17:22] The limiting beliefs that held Tyler back
- Analysis paralysis (first deal so good, couldn’t stop comparing)
- Fear of making mistakes was crippling
[19:22] Why single-family experience is unnecessary to enter the multi-family space
- ‘Almost better off with no experience’
- Tyler feels single-family background made him too conservative
[21:49] How Tyler achieved multi-family deals without using any of his own money
- Partnered with experienced property management company
- Enlisted exceptional legal and accounting teams
- Experience of team led to capital (didn’t matter that Tyler was inexperienced)
[23:05] How Tyler leveraged ‘relationship marketing’ to raise capital
- Started podcast, Cashflow 101 workshops
- Positioning self as expert led to referrals
- Matched investors with experienced syndicators
- Learned from those syndicators (willing to help)
[24:44] Why the complexity of multi-family is a limiting belief
- Same as single-family, just larger scale (only one roof)
- Tyler contends apartments are easier to work with
- Many moving parts, must be able to manage others effectively
[25:50] The importance of Tyler’s first deal
- Critical in realizing he could do this
- Second and third deals built confidence as he encountered and overcame problems
[26:56] How Tyler’s life has changed
- Doesn’t have to ‘hunt’ for next check as buy and hold investor
- Receives mailbox money each month
- Continues to attract capital, source opportunities
- Time available to educate others with free content
- Freedom to spend time with family
[29:51] Tyler’s perfect day
- Watch sunrise in kayak
- Fish all morning
- Work on podcast, instructional video in afternoon
- Help others attain same kind of financial freedom
[30:27] Tyler’s advice for aspiring multi-family investors
- What do you have to lose?
- Only tangible thing is time
- Educate yourself and take action
[31:02] How Tyler wants to be remembered
- As change-maker who ‘made difficult stuff simple’
Connect with Tyler Cash Flow Guys
Tyler’s YouTube Channel
Resources Secrets of Successful Syndication
Principles of Real Estate Syndication by Samuel K. Freshman
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
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.
Key Takeaways [5:43] Why it’s patriotic to take advantage of tax breaks
- Incentives encourage certain activities (e.g.: oil exploration)
- Government rewards for engagement
[7:27] The tax benefits associated with multi-family investing
- Without creativity, can write off in 27½ years
- Take ‘paper loss’ (allows to claim 3.6% annual loss)
- Cost segregation study accelerates depreciation
- Reinvest capital would have given to government
[10:49] How to exercise cost segregation
- Licensed professional evaluates property
- Report breaks down depreciation of component parts (i.e.: washer/dryer, pavement, plumbing)
- Write off 70% of physical asset in five to seven years
[13:07] David’s advice around choosing syndicator (as a passive investor)
- Find competent people with track record of success
- Watch syndicator closely in early stages
- Start small
[15:08] How David transitioned from passive investor to syndicator
- Came into market with cash, partner brought opportunities
- Ran out of cash, invited family to invest
- Finally had to slow down as ran out of cash
- AHA moment on board of local startup bank, discussing .5% interest on CD
- Realized could offer others double-digit returns via multi-family
[18:02] David’s approach to passive investing
- Not involved in daily headaches
- Must trust, believe in partners
- ‘Team is more important than asset’
[20:24] How David raised money for his first deals as a syndicator
- Psychological challenge (reputation in business)
- Lived in Amish country, visited successful farmers
- Listened to stories, identified pain points
- Shared own successes
- Raised $850K
- Now can send email, get funding in two hours
[24:51] How David structures a deal
- 5-10% range of cash-on-cash return
- Investors concerned with consistent quarterly cashflow
- Keep it simple
[26:28] How multi-family investing has evolved
- Fewer deals today, must hustle
- David’s team no longer aggressively chasing deals
- Good broker, reputation for closing can procure 5-10% discount
[29:52] David’s ATM investing opportunity
- Started as passive investor in 2012
- Became partner last year, raised $9M in seven months
- Introduces investors to exclusive asset class
- Fits philosophy of investing for tax-advantage cashflow
Connect with David The Real Asset Investor
Email info@therealassetinvestor.com
Email atm@therealassetinvestor.com
Resources Email infor@therealassetinvestor.com
- 8 Real Life Lessons for Syndicators and Their Investors
- K-1 Sample (How Depreciation Works)
Robert Kiyosaki Books
Review the Podcast on iTunes
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
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.
Key Takeaways [3:25] The costliest expense in the property management space
- Bad tenants
- Turnover costs
- Eviction expenses
- Vacancy during inopportune months
[4:39] How to avoid the expenses associated with turnover
- Advertise early and often (good tenants look 30 days out)
- Advertise on as many sites as possible
- Respond quickly, schedule showings asap
- Screen thoroughly via comprehensive background/credit checks on every applicant (not just primary)
[6:28] The pros and cons of self-management vs. hiring a property manager
- Makes financial sense to hire property manager for class C and D properties
- Consider self-management in case of class A properties
- Good idea to have licensed professional you trust ‘on the ground’
- Maintain a sense of control by having access to financials, business records
[8:23] The role of a property manager
- First to blame, last to get credit
- Must be jack of all trades (finance/accounting, maintenance/repair, salesperson)
[10:17] Dana’s guidance around making property managers ‘offensive players’
- Open communication, transparency in decision-making
- Establish owner’s criteria for approving tenants
- Collaborative partner when problems arise
[11:41] Dana’s advice about interacting with your property manager
- Frequently in beginning to establish expectations, any time issues arise
- Weekly call if oversee more than 200 units
- Email weekly summary (# of tenant applications, leads)
[13:18] The benefits of property management software
- Provides owner with real-time insight
- Long-term savings offset $30 monthly investment
[14:28] The metrics owners should be tracking
- Income statement is crucial (profit/loss, expenses, ROI)
- Should be able to answer general questions about portfolio
- Reasons for vacancies
- Tenant risk mitigation (Following policies? Inspection reports?)
- Financial risk (Autopay? Late payments? Late fees?)
- May shift based on need (maintenance, marketing)
[16:17] The processes an owner should prioritize
- Tenant selection
- Legal contracts
- Maintenance management
[17:39] How to incentivize tenants to pay on time
- Daily late fees
- Require payment of late fees before rent
- Report late payments to credit bureau
- Check state/county laws
[19:34] The processes Dana recommends centralizing across your portfolio
- Marketing
- Application
- Financials, bookkeeping
- Maintenance tracking
[21:15] How to consolidate your records
- Newer software allows for integration (email support team with questions)
- Export all data to single platform (e.g.: QuickBooks, SmartMove, Excel)
- Enlist help of VA only after processes in place
[24:45] The free tools Dana recommends for managing your portfolio
- Trello (project management)
- Slack (team communication)
- Google Sheets
- Dedicated email, phone number and business bank account
[25:59] The fundamentals of Hemlane software
- ‘Best investments not in backyard’
- Add any property to platform
- Consolidates data for entire portfolio
- Streamlines property marketing, applicant screening, lease tracking, rent/payments and maintenance
Connect with Dana Hemlane
Hemlane on Twitter
Hemlane on Facebook
Email: dana@hemlane.com
Phone 385-355-4361
Resources QuickBooks
smart move
Upwork
Trello
Slack
Google Sheets
Review the Podcast on iTunes
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
‘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!
Key Takeaways [2:25] How Kira got her start in real estate investing
- Watched Robert Kiyosaki infomercials as ‘12-year-old insomniac’
- Experienced windfall/freak-out cycle as daughter of inventor
- Desire for consistent cashflow led to buying houses at 18
- Bought five houses in three years
[5:13] How Kira financed her first deals
- Invested $3K savings in stock market, grew to $10K
- Used $10K to finance first house
- Put $1K deposit on condo, then sold option to homebuyer (value had increased during construction)
- Used profits to finance second house
[9:14] Kira’s minimalist philosophy
- Continued to save money, work full-time during college
- Conscious decision to ‘live like college kid’ until age 30
- Passive cashflow exceeded expenses by 22 ($2K/month)
[10:56] Kira’s shift from single- to multi-family investments
- Goals grew from $1M to $100M
- Weary of fix and flips, borrowing hard money at 18%
- Got into private lending
- Time became more valuable than money
- Feedback from lenders indicated that $1M loan for multi-family was easier to secure than $100K loan for single-family home
[15:07] Kira’s intent behind reaching out to potential partners
[16:56] Kira’s first 30-unit multi-family deal
- Continues to take 20% of time three years later
- Bank deal, bought distressed asset
- Bought $5.4M bank note for $1M
- Invested $2.5M to complete construction
- Used investor capital, joint venture with equity partner
[19:19] How Kira attracts investors
- Shares her excitement for deals
- Distinguish between fear and intuition
- Go where you’re afraid, reach out to big names
- Founder, CEO of fifth largest mortgage bank in US
- Large real estate investors at top of game
[23:12] What Kira learned from reaching out to sought-after investors
- People you’re hero-worshipping are just people
- Deep respect for what they have accomplished
- Emulate skills that made them successful
[27:34] The importance of alignment in selecting an equity partner
- Had to buy out partner on 30-unit after legal battle
- Long-term buy and hold vs. high-velocity fix and flip will end in conflict
[30:47] How Kira would approach raising money for 30-unit deal without equity partner
- Not beyond door-knocking (pushing own boundaries to raise more capital)
- Approach bank to carry back the debt
- Raise construction capital after closing ($250K/month)
[31:56] Kira’s 315-unit full gut rehab
- Mentor offered pocket deal, he functioned as silent partner
- Vacant, drug-/crime-infested area of Dayton, OH
- Turned around, named top-ten complex in city
- No equity partner, built engine to find investors (first generation made good)
[34:16] Why Kira wishes she had done multi-family sooner
- Fix and flip experience was valuable (can’t be snowed by property management companies, contractors)
- Two years would have been long enough
- Multi-family is a better vehicle
- Had to build confidence while maintaining roots
[37:21] Kira’s advice for aspiring real estate investors
- Determine whether you are a deal junkie or just want to retire early
- 10% who are deal junkies should align with experienced partner to short-cycle learning process
[39:15] What’s next for Kira and Direct Source Wealth
- Three days meditating in Sedona
- $100M fund to bring high-quality deals to Main Street
Connect with Kira Direct Source Wealth
Connect on LinkedIn
Resources Partner with Michael
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
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!
Key Takeaways [2:27] How Whitney got her start in real estate
- Mom is real estate investor (mailbox money)
- Went in with no plan
- Bought land for $1,500
- Rents driveway and land for $750/month
[5:38] Whitney’s experience with single family homes
- Bought two houses to rent
- Realized would take 115 years to get money back
- Discovered lease option (no money, no credit)
[6:38] Why Whitney quit the family business to do real estate
- ‘Too much family, not enough fun’
- Family of entrepreneurs
- Sought creative outlet of her own
[7:29] The advantages of apartments (vs. single family homes)
- More money with less time
- Property manager to deal with problems
- One roof, one tax bill
- If one set of renters can’t pay, mortgage still covered
[12:30] How Whitney landed her three multi-family units
- Property in country near industrial park
- Previous owner lost through foreclosure
- Local bank owned, managed by local realtor
- Listed in small, local MLS (big players unaware)
- Whitney in contact with agent, lead when price dropped
- Used HELOC from house paid off to make offer ($25K for 5-unit, $35K for 11-unit)
[15:58] The cashflow on Whitney’s current multi-family properties
- 19 units total
- Triplex units bring in $550/month for each, mortgage $60 ($900 profit)
- Five-units rent for $500/month, mortgage $800
- 11-unit brings in $4,000/month, mortgage $1,100
[16:52] The other expenses associated with owning apartments
- Real estate taxes, insurance
- ‘Bug guy’
- Property manager
- Yard maintenance
[17:51] What’s next for Whitney
- Mobile home park
- Old building to rent as think tank/co-op office space
[19:04] Whitney’s early real estate misstep
- Purchased house she hadn’t seen for $15,000
- Fleas, squishy floors, dubious neighbors
- Could not rent
- Sold at auction for $11,000
[21:50] Whitney’s philosophy around taking action
- Once you buy, three options (sell, rent, do something creative)
- Play ‘what if’ too long, someone else will take your deal
- Not bothered by not knowing what’s next
[24:27] How Whitney chooses people to do deals with
- Lease option not for everyone
- Focus on people tired of being landlord or making payment on empty house
- Adopt take-it-or-leave-it attitude
[25:45] What sets Whitney apart from other investors
- Talks to five to ten sellers per day
- No fear, just put it out there
- Finds off-market deals via personal Facebook page
- Provides HGTV-style edutainment on social media
- Local authority (crooked ‘I buy houses’ button)
[28:14] Why Whitney believes all women need a real estate portfolio
- Allows to control own destiny
- Statistically live longer, may have tendency to spend more money
- Already do unpaid work at home, no time to pick up extra job
- Extra $10,000 provided by real estate can make or break marriage, retirement
[30:03] How Whitney’s family reacted to her real estate investments
- Husband, family not always on board
- Thought she was wasting time, money
- Started to take seriously after first $60,000
[32:34] Whitney’s advice for aspiring apartment building investors
- Take action, figure out as you go
- Don’t sign your name on $100,000 loan if not comfortable
- Start small (land, dinky house, ‘lipstick-on-a-pig flip’)
- Real estate is not complicated
Connect with Whitney whitneynicely.com
Whitney Buys Houses on Facebook
7-Day Lead Challenge
Resources Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
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!
Key Takeaways [7:01] Why Victor views real estate as a team sport
- Foreigners viewed as risk (lenders perceive lack of recourse)
- Local partner facilitates investment
[7:47] The most difficult part of Victor’s transition from full-time job to real estate
- Used savings to invest
- Caused stress as savings dwindled
- Chose wrong partners early on
[10:00] Why some repel money when they’re trying to raise it
- Mistake to skip steps in basics of human relationships
- Can go from natural progression to ‘creepy’ very quickly
- Pace conversation so doesn’t feel forced
[11:17] The first key element of raising capital – RELATIONSHIPS
- Build genuine relationships with prospective investors
- People don’t want to be used
- Forcing a connection pushes people away
[15:18] The second key element of raising capital – TRACK RECORD
- Proof of results necessary in raising money
- If just getting started, partner with someone who is established (borrowed credibility)
[17:42] The third key element of raising capital – TRUST
- Goes beyond ‘dealing with honest person’
- Includes alignment of intention
- Decisions happen quickly when trust exists
- Employ ‘trial close’
[20:09] The fourth key element of raising capital – COMPELLING OPPORTUNITY
- ‘Compelling’ in eye of beholder
- All good deals get done
- Consider creating your own deal (scarcity vs. abundance mentality)
[25:40] The fifth key element of raising capital – ALIGN PROJECT GOALS WITH INVESTOR
- Must be a good fit (i.e.: shoe shopping)
- Different segments/classes of investors
- Criteria include rate of return, control structure, tax consequence, security, risk, etc.
- Sophisticated investors clear on all criteria
[30:55] The biggest mistake entrepreneurs make
- Raise too little money
- Delays, increased construction costs may leave you short
- Victor recommends securing extra 5% equity
- Hard to raise money when desperate
[33:28] How to invest like a billionaire, even if you’re not
- ‘Buy on the line, move the line’
- Identify dividing line between ‘hot’ and so-so neighborhood
- If line arbitrary, purchase 5-10 on depressed side
- Move line and you set value
[35:36] Victor’s advice for people hesitant to ask for money
- Reframe as opportunity to collaborate on project
Connect with Victor victorjm.com
Resources Magnetic Capital: How to Raise All the Money You Need for ANY Worthy Venture by Victor Menasce
Magnetism Scorecard
Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
As apartment building investors, we realize that off-market deals are the holy grail of our business. But we also know that you have to build relationships with industry insiders in order to access those deals on multifamily properties, and it can be difficult to cold call asset managers, hedge fund operators and associates at private equity firms. If only there was a social media platform that afforded access to a database of professionals and their contact information… Hey, wait a minute! That platform does exist, and today’s guest is here to share how you can use LinkedIn to find off-market properties and earn massive profits.
Jason Lucchesi is known in real estate as the #1 off-market property strategist. He got his start in the industry with Countrywide Home Loans in 2002, serving in the mortgage origination space. In his five years there, he worked his way from account executive to branch manager, but Jason had the good sense to jump ship at the end of 2007 and shift into full-time real estate investment. He has closed REOs, short sales, bulk packages, non-performing notes, and both residential and commercial off-market properties.
Today Jason shares the step-by-step process of connecting with real estate professionals, from initiating a dialogue on LinkedIn to closing the off-market deal. Listen and learn the ‘bank language’ you need to know to communicate with asset managers and land distressed assets for 20-30% of fair market value.
Key Takeaways [3:01] The types of investments Jason pursues
- 70% residential
- 30% commercial
[6:37] How Jason got into commercial investments
- Referred to owner looking to liquidate for retirement (2010)
- Leveraged private money
- Negotiated seller financing (capital gains not as high)
- Implemented renovations to increase occupancy rates
[8:36] Jason’s first multifamily deal
[10:47] How Jason employs LinkedIn to find off-market deals
- Initiate search for professionals with ‘asset manager’ in title
- Determine whether he/she works at a bank (distressed assets)
- Connect for access to contact info (email address, phone number, etc.)
[14:05] How Jason initiates contact with asset managers via LinkedIn
- Look for real estate groups the person is involved with
- Customize a message with mention of common groups
- Once invitation to connect is accepted, send email and LinkedIn message
- Initiate a phone call after a couple of days
[18:18] The script Jason uses in dialogue with asset managers
- Own real estate investment company
- Nationwide investor
- ‘Looking to deploy acquisition capital’
- Ask about ‘assets looking to liquidate’
[19:20] How Jason works with asset managers once connection is established
- Outlines his criteria
- Signs NDA
- Asset manager sends Excel doc list of properties by state
- Receives package from asset manager once a month moving forward
[24:14] The property information typically provided by asset managers
- Appraisals
- BPOs
- Title work
- Unpaid principle balance
- Current market value
- Monthly payment
[27:00] The key strategy that has worked best for Jason
- Reaching out to agents, homeowners, or owners of record
- Learning as much about property as possible before crafting LOI, purchase agreement
Connect with Jason Jason’s Course
jasonlucchesi.com
Resources Mentioned Right Flipping Now by Jason Lucchesi
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Paul Moore had just gotten his real estate license when he wrote his first book, The Definitive Guide to Smith Mountain Lake Real Estate. Though he didn’t have a track record as an agent, the book made things happen for him, attracting people, money and listings. The work he put into researching the book established him as a professional and propelled his career forward in a big way.
We all have a story to tell, and most of us have considered writing a book to share that story. Being a published author pays huge dividends in terms of credibility, and it’s something you can use as leverage in making deals… Especially if you’re new to the world of investing in apartment buildings. But how in the world do you get started? And how do you carve out the time to sit down and write an entire book?
Nick Raithel is the creator of 7-Hour Book, a proven system that can give you clarity in terms of what you want to write about, assist you in developing an outline, and even partner with you in the writing itself if you don’t have the time to devote to the project. He is on a mission to help real estate investors get the recognition they deserve and attract new business and investment opportunities. Today Nick discusses how publishing a book aligns with the objectives of a real estate investor, the benefits of the ‘thud factor,’ and the components of a book launch. Listen in to learn the real-world results you could enjoy from being a published author!
Key Takeaways [1:43] How publishing a book aligns with the objectives of a real estate investor
- Establishes credibility
- Presents speaking/coaching opportunities
[4:34] The benefits of the ‘thud factor’
- Physical book differentiates you from the crowd
[5:40] The most common mistake made by aspiring writers
- Difficulty nailing down a topic/approach
[7:38] The real-world results of publishing a book
- Invitations to speak at conferences
- Coaching/consulting opportunities
- Attention/leads
[9:19] An example of the 7-Hour Book Process
- Client wanted to establish credibility in a particular market
- Sought specific type of customer, wanted to establish themselves as most qualified choice
- 7-Hour Book flushed out general idea to create structure around 7 principles
- Each chapter educated prospect and demonstrated experience
[12:40] How to develop an idea for a book
- Go to bookstores, look at own shelves to see what’s out there
- ‘Hijack’ an idea or topic
- Consider the angle that you’re ‘sick of it all’ and ready to share the truth
- Or write as a seasoned veteran who can ‘set the record straight’
[14:18] How 7-Hour Book is different from a ghostwriting service
- Focused on results
- Includes call-to-action for reader
[16:21] How to measure those results
- Track web traffic/phone calls generated by call-to-action
[18:04] The elements of a book launch and the associated marketing
- Media spots
- Reviews (make a difference in the minds of buyers)
- Provides ‘social proof’
- 7-Hour Book team will handle for you or advise
[19:51] How the Book Boost provides the ‘kick in the pants’ you need to get started
- Team designs basic, thorough plan
- Designed to allow you to write book yourself (if you have the time and ability)
- Package is under $200
Connect with Nick Book Boost Special Offer
Resources Mentioned Paul Moore Podcast Episode
The Definitive Guide to Smith Mountain Lake Real Estate by Paul Moore
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
As apartment building investors, we understand that brokers control the vast majority of real estate deals – and we know that having a ‘in’ with brokers is the only way to score those elusive off-market deals. But if you are just getting started, how exactly do you build rapport with the brokers and partner to source off-market deals?
After graduating from the University of North Texas with a degree in finance, Michael Becker spent nearly ten years at Wells Fargo. During the last five years of his stint in commercial real estate banking, he focused exclusively on multi-family properties and became the number one loan producer for his division three years running. But Michael recognized that he was on the wrong side of every deal, and he made the switch to apartment building investment in June of 2014. In just three years, he has scaled the business, Strategic Property Investment (SPI) Advisory from zero to 4,300 units. Michael also hosts Old Capital, a podcast aimed at multifamily real estate investors.
Today Michael offers sage advice regarding how to cultivate a team, establish credibility and land your first deal. He also shares how to meet brokers face-to-face and establish relationships so that they will partner with you on off-market deals, as well as strategies for sourcing pocket listings. Listen and learn how to provide value to brokers so that you’re top-of-mind when deals come available.
Key Takeaways [3:29] How Michael was able to scale from zero to 4,000 units in three years
- Business partner with complementary skill set
[6:18] Why Michael feels so strongly about utilizing brokers to find deals
- Control vast majority of deals
- Relationships with owners
- Brokers do the legwork, bring you potential deals
[7:45] Michael’s advice for newbies on how to build relationships with brokers
- Network face-to-face via meetup groups, events
- Get on broker lists and tour
- Provide brokers with detailed feedback
[9:10] How Michael scores the elusive pocket listing
- Track record of performance
- Known in the small broker community (12 brokers control 80% of the DFW market)
[10:58] Michael’s tips for new investors to be taken seriously and land their first deal
- Be realistic about your resources
- Make it a ‘we’ conversation
- Build a credible team, including a commercial mortgage broker, management company, lawyer and insurance agent
[13:40] Michael’s recommendations for networking events
[16:29] How to maintain a solid working relationship with brokers
- Check in every two weeks to remain top-of-mind (without being annoying)
- Provide value by sharing industry-specific news items
[19:00] How to source off-market deals
- Pursue properties approaching loan maturity
- Ask brokers about recent BPO’s in which a competitor got the listing
- Subscribe to data services and mine for properties
- Download and archive OMs to track broker-owner relationships
[25:48] Other ways to find off-market deals
- Establish a foothold in a particular area of town
- ‘Gift’ brokers with a list of properties you are interested in
Connect with Michael Old Capital Podcast
SPI Advisory Website
Email mbecker@spiadvisory.com
Resources Mentioned Marcus & Millichap Events
Bisnow Events
ALN Apartment Data
CoStar Data Services
Yardi Matrix
trepp.com
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Society teaches us that hard work leads to a great life, so we build a career first and try to fit life into what is left over. But perhaps there is a better approach… What if we could design our lives first, and then fit business into what was left?
Steve Cook began his career in the restaurant business, but failed miserably. Success came with a move to real estate investing, and three years in he had $7M in assets. Flipping houses allowed him to accumulate a great deal of wealth, and his financial advisors were committed to helping him accrue even more. Steve was doing everything right, but he wondered when he would get to enjoy it. The business had become his life, and he was compromising everything that was important to him.
Committed to simplify his life and break free from lenders, Steve made radical changes. He stopped borrowing, downsized to reduce expenses, and pared down his work hours so that he could be the husband and father he wanted to be. In the book Lifeonaire, Steve Cook outlines his approach to the pursuit of an abundant life, and today he shares that philosophy with us. Listen in and learn how to shift your mindset, overcome cultural conditioning, and pursue the life you want right now!
Key Takeaways [7:09] The message of Steve’s book, Lifeonaire
- Plan of pursuing money to one day live a great life is flawed
- Pursue a great life instead
[8:24] Steve’s moment of realization
- Tax returns reflected $300,000 in interest paid each year
- Slave to debt ($4.5M)
- Consumed by work, compromising what was important
[13:02] How Steve’s life went from simple to complicated in a three-year span
- In the beginning, it took $25,000/year to make ends meet
- Three years later, doing everything ‘right,’ $25,000 only lasted two weeks
[13:58] How Steve simplified his life
- Made a commitment to stop borrowing
- Developed a life vision
- Chose only the deals that got him closer to that vision
- Reduced his working hours (10a-2p, M-F)
- Downsized to reduce expenses
[20:35] The shift in Steve’s approach to real estate investment education
[21:46] How to reduce your working hours
- Believe that it is possible
- Focus only on the most profitable and efficient
- Trust that the business will produce
- Appreciate that it is possible to make more when you work less
- Remember, the WHY will make you more productive
[24:52] Steve’s guidance for living the life you want NOW
- Determine what you want
- Believe that it can happen
- Let go of the idea that you don’t have enough
[26:17] The definition of ‘lifeonaire’ and how the term was conceived
- A lifeonaire pursues an abundant life
- Steve had two clients who were focused on being millionaires
- Both had the ultimate goal of becoming better fathers
- Neither was convinced that they could be good fathers regardless
- Steve recognized that the pursuit should be about life, not money
[29:34] Why more people don’t subscribe to the lifeonaire philosophy
- Cultural conditioning to believe that hard work produces a great life
- We believe we don’t have enough
[31:05] The greatest challenge for aspiring lifeonaires
- Shifting mindset in a culture that says you’re wrong
- Can be overcome by surrounding yourself with people who share your mindset
[32:35] How long it takes to become a lifeonaire
- Can start instantly with a shift in mindset
- The pursuit of joy is a life-long journey
- Expect to see results in the two month to two-year range
Connect with Steve Lifeonaire Website
Lifeonaire by Steve Cook and Shaun McCloskey
Resources Mentioned Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Perhaps you are hesitant to invest in real estate at the moment because of predictions of an imminent crash. But when is the ‘right time’ to invest? What if I told you that it is always a good time to invest, as long as you make intelligent choices?
Jason Hartman is the president of Platinum Properties Investor Network, a firm specializing in financial planning for real estate investors, and Hartman Media, a production company through which he hosts 20 podcasts that address business, investments and living well. A self-made multimillionaire and serial entrepreneur, Jason has founded 21 companies and initiated several thousand real estate transactions.
Jason obtained his real estate license his freshman year of college and worked part-time for Century 21, learning about the investment side of the industry and developing his own portfolio. He eventually came to purchase and expand his own traditional real estate firm, and negotiated its sale to Coldwell Banker. In anticipation of that check, Jason sought investment advice from Wall Street – and uncovered a need for a financial planning firm-specific to real estate investors. So he created it himself! He is passionate about educating and assisting investors in acquiring pragmatic investments nationwide. Today Jason explains why the media characterization of ‘housing’ is an oversimplification and outlines the different types of markets. Listen and learn how diversification can offer a solid ROI despite market volatility.
Key Takeaways [4:12] The volatile nature of cyclical real estate markets
- Receive most attention, media coverage
- Located in coastal and trophy cities
- Can make or lose a fortune
[6:00] Jason’s take on Wall Street financial planners
- Little creativity
- Don’t use the product themselves
- Best sales force (easy to invest)
- Worst product
[6:53] What Jason learned in researching different real estate markets around the US
- Three types of markets – linear, cyclical and hybrid
- Invest in more than one market for a solid ROI
[8:56] Why Jason founded a financial planning firm for real estate investors
- Real estate has the best product, but worst sales force
- He created the business to be his own customer
[11:22] The misleading nature of media coverage of ‘real estate’ or ‘housing’
- Cannot lump all markets into a single category
- Differentiate by product type, price and market (linear, cyclical, hybrid)
- 400 different markets in the US
- Case-Shiller Index only profiles 20 metro areas, 15 of which are cyclical
[12:54] The differences among linear, cyclical and hybrid markets
- Linear markets grow slowly over time
- Cyclical markets are like a roller coaster
- Hybrid markets fall somewhere in between
[16:04] Jason’s advice to investors with much equity who live in cyclical markets
- Use available tools and technology to invest outside your immediate area
- Diversify geographically (three to five different cities)
- Deploy equity in linear markets that generate a good yield
[18:30] Why Jason cautions investors against cheap properties
- 12% of Americans unbanked
- Difficult to collect rent from C and D class tenants
Connect with Jason jasonhartman.com
Creating Wealth Podcast
Resources Mentioned Marcus & Millichap Multifamily Investment Forecast
IRR Viewpoint Report
Milken Best Performing Cities Report
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
You can lead a horse to water, but you can’t make him drink. Or can you?
You likely know exactly what you need to do to succeed in the world of apartment building investment, but perhaps you aren’t making forward progress toward your aspirations. Today’s guest explores the psychology of what holds us back and offers actionable techniques to help you take control of your life! Rob Dial is a performance coach and speaker who has inspired tens of thousands of people – from college students to NFL superstars – to develop a clear purpose and then establish the habits that lead to success. He believes that leaders are not born, but groomed, and he is committed to teaching others how to become the best version of themselves.
Rob’s forte is understanding the human brain and how to hack it to get past the fears and limiting beliefs that are holding you back. Through his work with MWFMotivation, he seeks to help you dig deep and discover what you were put on earth to do. Today he describes the design of the human brain and explains how to employ that understanding to get clear on the ‘pain’ you are running from as well as the ‘pleasure’ you are working toward. Get ready to be inspired as Rob coaches you to shift your mindset and truly show up in the world.
Key Takeaways [6:38] Rob’s spin on the ‘lead a horse to water’ analogy
[9:10] How our brains work
- Problem-solving mechanism
- Designed to keep us alive
- Move us toward pleasure and away from pain
[10:07] Why people don’t take action – despite knowing what they need to do
[10:27] How to shift your focus to the ‘why’ behind your goal
- Identify the worst case if you stay the same/don’t hit your target
- Dig deep (beyond the surface level answers)
- Ask, “What’s more painful?”
[16:34] How to motivate yourself to take massive action (when life is not that bad)
- Link where you are now to massive pain
- View your current situation as unacceptable
[18:48] Why you must dig deeper than money as a source of motivation
- Reflect on the true pain point, i.e.: control of your time
- Peel back the layers by asking, “Why is that important?”
[20:10] How a focus on the ‘pleasure’ you are moving toward keeps you driven
- Picture the benefits of reaching your goals
- Doing the difficult things (e.g.: cold calls) gets easier
[25:18] How to identify and explore your personal ‘pleasure’ and ‘pain’
- Journaling provides clarity
- What do I want?
- What am I afraid of?
- Keep asking ‘why’ to get beneath the surface
[30:43] Why Rob invested in a coach at age 20, despite the expense
- Explore strategy and mindset
- ‘I mattered more than the money’
- Took income from $17,000 to $177,000/year in two years
[37:25] Rob’s best advice to motivate action
- ‘Don’t play like you get a second at bat’
Connect with Rob mwfmotivation.com
MWF Motivation Podcast
MWF Motivation on Facebook
Resources Mentioned The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
What goes up must come down, and a number of experts predict an economic recession in the not-so-distant future. What are the current economic trends you need to understand? What would a recession mean for the real estate market? And how can y ou protect yourself from a potential crash?
I recently returned from the Real Estate Guys 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.
Key Takeaways [1:56] The value of networking via conferences, etc.
- We tend to limit ourselves as we reach outside our comfort zone
- You are only one relationship away from making it to the next level (e.g.: Michael Becker’s meteoric ascension from zero to 1,000 units in 12 months)
[3:55] The significance of understanding the political landscape
[4:50] Unsustainable global trends
- Exponential population growth
- Debt
- Oil use
- Deforestation
[5:07] The fallout from the Federal Reserve bailout in 2008
- Printed trillions in response to the recession
- Debt now at $20T, $30T in five years
- Devaluation of the US dollar
[5:42] Exponential trends in growth of debt
- Social Security out of cash in 17 years, Medicare in 11
- $1.5T in college debt, $1T in credit card debt
[6:35] How to respond to this bleak macroeconomic overview
- Educate yourself about the issues
- Consider titles by Kiyosaki, Martenson/Taggart, and Griffin
- ‘You have to see something coming to get out of the way’
[8:34] Doug Duncan’s favorable perspective of the real estate market
- Chief Economist for Fannie Mae forecasts stability of interest rates in 2017 (pending no major policy changes)
- Housing market currently experiencing third largest expansion in US history, yet weakest expansion when inflation-adjusted to reflect income and GDP growth
- Present low housing supply causing prices to rise
- Housing market likely to do well if recession hits
- Interest rates would fall to stimulate economy
- If unemployment stayed under 7%, housing would do reasonably well and rentals would improve
[10:00] Robert Kiyosaki’s approach to the four quadrants
- Mindset comes first – Be, Do, Have
- Spiritual language to describe Employee, Self-Employed, Big Business Owner & Investor
[11:43] The mindsets associated with each of the four quadrants
- Employee – consumed with fear, desire for security
- Self-Employed – issue with control, difficulty delegating
- Big Business Owner – struggle with power, ego
- Investor – not motivated by money/power, truly free
Resources Mentioned Second Chance for Your Money, Your Life and Our World by Robert Kiyosaki
Prosper: How to Prepare for the Future and Create a World Worth Inheriting by Chris Martenson and Adam Taggart
The Creature from Jekyll Island: A Second Look at the Federal Reserve by G. Edward Griffin
The Real Estate Guys
The Investor Summit at Sea
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Obtaining funding can be one of the more difficult aspects of real estate investing. How do you go about finding the right lender? My guest today is making the process quicker and easier by marrying technology and real estate to create an online marketplace where investors and lenders can connect.
Ross Hamilton is the CEO of connectedinvestors.com, the world’s largest network of real estate investors. He began investing in real estate at the age of 19, and soon realized that the more connections he had in the real estate investing world, the more lucrative business could be. He leveraged his understanding of technology to create what he calls “LinkedIn for real estate investors” and became wildly successful during the property value upswing. Ross then had the foresight to diversify prior to the crash, and even thrived during the crash by investing in real estate in military towns.
Ross continues to grow his portfolio as well as his network of real estate investors, as he seeks to change the way money flows through the industry. Listen in as he explains how the Connected Investors platform pairs lenders with investors, how to spot a fake lender, and how technology will continue to affect the future of financing via crowdfunding portals and social networks.
Key Takeaways [3:22] The key to success in real estate
[3:38] The evolution of funding real estate investments
- ‘Wild West’ of easy funding led to crash
- Impossible to attain after crash
- Smart investors shifted focus to real estate
- Trillions raised to buy bank portfolios
- Now there is more money than deals
[6:54] How the Connected Investors platform connects investors with lenders
- Press 12 buttons and type the property address
- The platform identifies appropriate lenders
- Real, active, verified lenders compete via bidding
[8:35] The success of CiX
- Simplified process makes obtaining loans easier
- Process $1B in applications every two weeks
[10:10] The types of debt supplied by CiX
- Currently provide recoursereal estate fin
- Just added portfolio
- Making strides to include nonrecourse for commercial
[12:43] How CiX helps investors with the equity component of funding
- Small business lender programs for CiX network investors
- Private lenders in network willing to think outside the box
[14:54] The prevalence of scammers posing as lenders
[18:21] How to qualify lenders and identify scammers
- Ask for recent closings
- Verify via public records
- Contact borrowers as references
[20:02 ] The future of financing
- Expansion of crowd-funding portals
- More wealthy individuals investing in real estate
- Additional capital moving into real estate
- Added transparency
- Faster, easier and cheaper to raise capital
- Evolution of the market by technology
[22:43] Ross’s advice for investors struggling to find funding
- Evaluate your deal- it’s probably not good enough
- Consider how you present yourself to lenders
Connect with Ross TheMichaelBlank.com/cix
Resources Mentioned Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
When someone decides to invest in an asset, they are essentially investing in a prediction of the future. All investments carry this element of risk, but there are some assets that are much riskier than others. Paul Moore, believes that he has found the perfect investment that offers relatively low risk with high rewards. It may not come as a shock to listeners that this investment is multifamily investing!
Listen in to find out how Paul became a real estate investor, and how the “recipe” for the perfect Investment is allowing him to support charitable causes throughout the world!
Key Takeaways
[04:26] Paul’s first experience with multifamily investing
- Built multifamily facility from the ground up in North Dakota
- Rented out at $13 per square foot
[06:47] Investments to last a lifetime
- Paul realized most of the super wealthy made their fortunes in real estate
- Demographic trends make real estate investing ‘The Perfect Investment’
[09:54] The changing trends in American home ownership
- Has dropped from 69% to 63% in 11 years
- Every percentage drop in homeownership is 1 million households into the renter pool
- More demand than supply
[11:52] The 3 drivers behind low home ownership
- Baby boomers moving back into rentals
- Millennials seeking flexibility, do not want to be tied down
- Immigrants rent more and for longer
[16:33] Multifamily investing return vs. risk
- Far better than other asset classes
- Multifamily delinquencies were 90% lower than residential in last recession
[20:45] The recipe for the perfect investment
- Passively invest in stabilized, value-add properties
- Find a trustworthy asset manager
- Find a capable property manager
- Find a large and growing market
[29:02] Giving back through investing
- Paul never wants to retire
- He wants to give back - to help stop human trafficking
- Paul's company shares profits with organizations that are making a difference
Connect with Paul
wellingscapital.com
Email: paul@wellingscapital.com
Resources Mentioned Podcast: How to Lose Money
The Perfect Investment: Create Enduring Wealth from the Historic Shift to Multifamily Housing
Finding the right business partner can be as important as finding the right investment opportunity. A great partner can bring time, money, expertise, and often prove vital to achieving your first MF deal.
Someone who knows all about first deals and partnerships is Joe Fairless, my guest on this week’s show. When I first spoke to Joe on the podcast, back in episode 10, he had just finished closing on a phenomenal 168 unit apartment building for his very first deal. Now, 2 years later, Joe has used the momentum of the first deal to propel himself headfirst into the world of real estate investing, with some incredible results.
Listen as Joe tells us what he’s been up to since we last spoke, including focusing his strengths, utilizing partnerships, and massively growing his real estate portfolio since that vital first deal.
Key Takeaways
[2:52] What Joe has done since his first deal
- Grown real estate portfolio from $7m to over $100m in just 2 years
[3:36] How Joe achieved such rapid growth
- Partnerships
- Identifying his strengths
- Finding partners whose strengths differ from his
[5:46] Joe’s key strengths
- Identifying opportunities
- Building solid business plans
- Bringing in investor money
[9:59] Smart partnering
- Joe has used partners on all of his deals (7 so far)
- He has utilized many different types of partnerships
- Joe always chooses partners who can provide a new strength
[16:50] Using co-sponsors
- Partnerships can be Limited or General (GP)
- GP’s mean bringing someone in on your side to make the deal happen
- Joe often arranges compensation packages for co-sponsors
[21:14] Joe’s tips for partnerships
- You might have to give up a lot to get that first deal, but that’s OK
- Learn to identify when you should and should not partner
[21:45 ] The risks of partnerships
- If they are property managers, they could be fired, but still own part of the GP
- Protecting yourself from a bad partner
- Use a lawsuit only if all else fails
[27:05] Joe’s goals for 2017
- Make sure investments continue to perform for investors
- Continue to find valuable opportunities
- Continue to support charitable/education causes
Connect with Joe
joefairless.com
Email: Info@joefairless.com (Email Joe for free money raising spreadsheet tool)
Resources Mentioned
Crucial Conversations
Best Real Estate Investing Advice Ever (Volume 1)
Previous podcast episode with Joe: themichaelblank.com/session10/
Michael’s deal analyzer
Deal Maker Mastermind
If you’ve listened to the show before, you’ve probably heard me talk about the power of the first deal. Your first multifamily deal will be the smallest, the longest, and the hardest deal you will ever have to make. However, the power of the first deal is that the second and third, which follow in rapid succession, are almost automatic.
Jordan Madewell, my guest on this week's show, knows all about the power of the first deal. Closing on his first multifamily, a 23-unit complex, with his business partner in 2016, Jordan is on the fast-track to completing his next two deals, which he hopes will help him reach his 2017 goal of 100 units. I can’t wait to see how he gets on in the next 12 months, but in the meantime, let’s listen as Jordan talks about his drive, how he got started in real estate, and most importantly, how he nailed that all-important first deal.
Key Takeaways
[02:53] Jordan’s start in real estate investing
- Jordan’s parents and grandparents always had rentals
- In 2007, while still in college he bought and rented out his first single-family home
[04:05] The moment Jordan realized that he needed to be investing in multifamily
- Released that It takes the same amount of time and effort to do a deal 10X bigger
[06:40] Jordan’s goal and his “why”
- $5000/month passive rental income
[14:23] How Jordan built a network of investors
- Established contacts before the deal was in place
- Started conversations early to build investor trust
[15:20] Jordan’s first deal.
- “lucked upon it”
- 23 units built in 2006.
[16:30] Raising the money for the first deal
- Syndication
- Called network of investors
- Raised needed funds in 72 hours
[26:47] What’s next for Jordan
- Actively looking for more and bigger deals
[36:00] The power of the first deal
- There is enormous power and potential in completing the first deal
- It’s the smallest, takes the longest, and is the hardest to pull off
- The second and third deals follow in quick succession
[45:28] Jordan’s advice for new real estate investors
- Calculate your ‘Rat race’ number and reverse engineer it
- Learn as much as you can, but always follow it with action
- Find a mentor or peer group to guide and help you on your journey
Connect with Jordan Phone: 806-570-0264
Email: Jordanmadewell@gmail.com
Web: madewell-construction.com
Resources Mentioned The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges
richdad.com
biggerpockets.com
Old Capital Real Estate Investing Podcast
Five years ago Brad Tacia was just a regular guy, working a 70 hour week as an engineer to support his family. In 2011 he began to invest in real estate. After making the switch from single family to multifamily investing, Brad managed to replace his income in just 2 years.In this episode I talk to Brad about the amazing progress he has made over the last 2 years, investigating the reasoning and
In this episode I talk to Brad about the amazing progress he has made over the last 2 years, investigating the reasoning and mindset behind his life-changing actions, as well as the habits he has developed to achieve his goals. From his first multifamily deal, to the syndication of a second complex, the results of Brad’s determination and decision-making can serve to inspire anyone interested in multifamily real estate investing.
Key Takeaways [03:05] Brad’s backstory: from 9 - 5 to real estate.
- Brad has worked in auto engineering all his life.
- Layoffs in the auto industry inspired Brad to seek out a second source of income.
- He realized he needed a ‘Plan B’.
[04:56] The thought processes behind real estate investing.
- Now with a family, Brad was starting to think about how to secure a financial income.
- He moved into a new family home and began to rent his old home.
- Gravitating towards real estate, he started researching and investing in single family.
[07:23] Thinking about replacing income with real estate.
- Maintain flexible and ever moving goals.
- First goal to replace 25% of income, then 50%...
- Recently achieved goal to replace 100% of income with real estate.
[9:09] ‘The idea was to buy one house per year’.
- Transitioned to the multifamily market after buying his 5th single family home.
- Did not start with multifamily because the thought was too daunting.
- Wishes he had started sooner.
[11:45] Making the move to multifamily investing.
- Brad started to educate himself, reading over a dozen books on apartment investing.
- Started analyzing deals to get comfortable with the numbers.
- Analysed 50 deals and gained confidence in the market.
[14:14] Brad’s first multifamily deal.
- 12 units.
- Agreed on $850,000 ($71,000 per unit).
- Raised rents to market value for an instant cash flow boost.
[19:50 ] A change in comfort zone and a shift in goals.
- The benefits of finding a good property manager.
- Finding more money to invest in multifamily.
[25:25] The ability to make deals directly impacts the scalability of the business.
- After the first 12 units Brad set his sights on fully replacing his income.
- He wanted to cover his family's living costs, his ‘rat race number’.
[26:04] Brad’s motivation for doing what he does
- At first it was to provide for his family
- Now it’s about gaining freedom with his time
[27:21 ] Why Brad keeps doing new deals even though he’s met his financial goals
- Brad loves analyzing deals.
- Wants to pursue more syndication deals.
[35:35] Real estate investing alongside a full-time job.
- Utilize your free time in the most effective way possible.
- Research deals on lunch breaks, use your daily commute to make phone calls.
[36:25] Changing your habits and finding your why.
- Do something every day to keep your deals moving.
- Don’t let anybody else own your time.
- Find your drive. Brad’s is to spend more time with his family.
[42:26] What Brad would tell his younger self.
- 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
Bobby Casey, an entrepreneur, and world traveler who now specializes in helping people protect their assets and live off the grid. He’s managing director of Global Wealth Protection, which provide asset protection strategies to shield your wealth from frivolous litigation and create "sleep at night" insurance.
His company can properly structure your offshore company, trusts, foundations and provide bank account introductions to more than a dozen banks around the world. In addition, they can help you move your IRA funds offshore.
We truly live in a world gone mad. Lawsuits are easy to file, the rewards can be enormous, and there’s no down side to losing a lawsuit.
Story of house flip.
Bobby describes how to structure the entities so that it’s hard for attorneys to figure out what you own. By using advanced techniques, like irrevocable trusts, it’s actually possible to not own anything, so even if you do get sued, there’s nothing to attach the judgment to.
Listen to this episode and implement Bobby’s techniques NOW before you lose it all.
Key Takeaways:
[3:39] Bobby’s Backstory
- Owns Global Wealth Protection
- His mission is to teach people how to internationalize their business, wealth, and life.
- He caters to those who are interested in an international business and lifestyle
[4:32] His thoughts on living like a nomad
- He’s been an expat for almost a decade and lives in Latvia
- He says a digital nomad is “an expat with commitment issues”
- He is passionate because the technology today makes it significantly easier to become a digital nomad.
[7:26] His life before he became a digital nomad
- Started, bought, sold a dozen businesses.
- He has been an entrepreneur his entire adult life and had a few epic failures along the way.
- He started being a digital nomad because he’s an expat.
[9:47] His thoughts on real estate investing
- Real estate investing is a great opportunity for people who want to have a nomadic lifestyle.
- He likes the concept of parking money in physical assets.
- His advice is to diversify geographically
[13:16] Mistakes investors often make
- Poor structuring of a deal is a common mistake
- He provides an example of how damaging poor structuring can be
[17:21] His advice to prevent poor structuring of deals
- He doesn’t recommend home state LLC own their property
- Don’t create an umbrella of ownership in one corporation
- Have an irrevocable trust on the membership interest in all LLCs
[21:50] Irrevocable trust and its beneficiaries
- An irrevocable trust is an asset protection and estate planning tool
- You'll be a grantor or settlor of the trust.
- You don't have any asset that's attachable at a judgment at all.
[26:20] Federal Lawsuits
- According to the American Bar Association, the statistics on federal lawsuits says a new lawsuit is filed every 16.5 seconds.
[29:26] Another mistake and what’s it like to file a lawsuit in the US
- Another common mistake is owning a property in your own name.
- A mindset that no one will sue you makes no sense.
- In the US, there are no consequences to sue somebody for no good reason.
[34:20] Bobby’s advice on implementing asset security
- Don’t own anything in your name.
- Have a properly structured LLC
- Wyoming is a preferred state unless you live there in which case use Nevada.
[37:37] Bobby’s “aha” moment
- Started a business in the 90's assembling bicycles for Walmart.
- An official letter from Walmart suddenly canceled his vendor contract as of that day. This was his big wake-up call on putting too many eggs in one basket.
Connect with Bobby Casey:
- Global Wealth Protection
Resources Mentioned:
- American Bar Association
Gino Barbaro is passionate about multifamily investing, and he believes it’s about the strength of your WHY that determines your success. You must DECIDE you want to change your life, and if you do, you have no choice but to take massive action.
That’s what he did several years ago. Gino was in the restaurant business for 22 years, and he was burned out. He decided he needed to change his life, and he chose real estate to do it.
In this episode, he chronicles his amazing journey from pizza guy to full time multifamily investor. Despite setbacks, a bad partnership and an all consuming day job at the restaurant, he and his partner Jake did their first deal, a 25-unit in Knoxville TN. Today they own nearly 700 units and the sky’s the limit.
Together with Jake, he created Jake and Gino.com, a real estate educational company that offers coaching and training in real estate investing. He is the best selling author of the book “Wheelbarrow Profits”.
Listen and be inspired by Gino’s story. Decide and Your Real Estate Success Will Follow.
About Gino Barbaro
Gino Barbaro is an investor, business owner and entrepreneur. He has been investing in real estate for 15 years and has grown his multifamily portfolio to 674 units in 3 years. He has teamed up with Jake Stenziano to create Jake and Gino.com, a real estate educational company that offers coaching and training in real estate investing. He is the best-selling author of “Wheelbarrow Profits”. Visit Wheelbarrow Profits Tutorial, an educational product focused on multifamily investing. Gino is a graduate of IPEC (Institute for Professional Excellence in Coaching) and is a Certified Professional Coach. He is also the author of the best-selling cookbook "Family Food and the Friars". He currently resides in New York with his beautiful wife Julia and their six children Gabriella, Michael, Sofia, Veronica, Cecilia and Laura. To learn more about Gino visit his website Jake & Gino or Gino Barbaro
Key Takeaways
[2:19] Gino’s background in the restaurant industry
[3:54] The two types of motivation
- Moving towards pleasure or away from pain
[5:00]- Gino’s rough start in real estate investing
- No focus on a specific niche or market
- Mobile home park failure
[7:18] Why there’s no such thing as a mistake
[8:41] Why Gino decided to invest in apartments
- Didn’t want to rehab and flip properties
- Less work than single family investing
- Single family investing in the NY market didn’t work well
[12:44] The benefits of a partnership
- Formed a partnership with Jake Stenziano in 2010
- Your partner can help you see something you don’t see
- Two minds better than one
- Stronger balance sheet
[14:15] Gino’s and Jake’s first deal
- Invested in an “Emerging Market”
- Property was listed for 750K
- Purchased for 500K
- Value added buy - Lots of little things that added up
[19:45] Why it’s a good idea to self-manage your first deal
[24:23] Why you should explain your offer to the seller
[28:12] What’s next for Gino
- Syndication
[29:29] Gino’s lightbulb moment
- Realized he was wasting his time on mundane tasks
- Left the restaurant industry
[35:00] Gino’s advice to a new investor
- Find your reasons why
- Focus on a market, get educated
[37:23] Why people want things but don’t act
- Lack of a burning desire
- Burning desire will lead to massive action
- Example of Gino’s dad and the day he stopped smoking
[43:18] Favorite books
- The One Thing
- Rich Dad Poor Dad
Connect with Jeno:
jakeandgino.com
Resources mentioned:
Wheelbarrow Profits Podcast
Book: Wheelbarrow Profits: How To Create Passive Income, Build Wealth, And Take Control Of Your Destiny Through Multifamily Real Estate Investing
Vinney “Smile” Chopra shares his amazing journey from arriving to this country from India with $7 in his pocket to building a $70M multifamily real estate empire. In this episode, we focus in particular on how he started his multifamily investing career and how he eventually raised $1.1M to do his first two deals.
After having graduated from George Washington University, Vinney became a mechanical engineer. He was fascinated by sales and marketing and sold encyclopedias and bibles door-to-door. For several decades, he was a professional fundraiser for non-profit organizations. He started investing in single family houses in the mid-eighties, but in 2007 he became passionate about multifamily investing. Since then, he’s done $125M worth of real estate transactions and currently controls over 1,400 units.
Vinney’s middle name is “Smile” because that what he did a lot during our interview. Here are the topics we cover on the podcast:
- Why he decided to get started with real estate. Too much work! Couldn’t really scale.
- His first venture into MF: hard!, it took 12 months. It seemed impossible. He ended up closing a 14-unit and then a 109 unit just several weeks afterward, raised $1.1M.
Key Takeaways:
[7:30] Vinney’s start in real estate investing
- Started with single family housing
- Planned on selling the homes to fund retirement
[12:47] Vinny’s preferred method of learning
- Youtube
- Podcasts (12-15 per week)
[13:31] Why positive thinking is so important if you want to achieve your goals
[18:13] Why Vinney decided to stop investing in single family housing
- Minimal economies of scale
- Risk of 100% vacancy
- After the crash of 2007 lenders would only loan on multifamily housing
[20:33] Why Vinney recommends finding a partner
- Encouragement through the tough times
[26:17] Why you should talk to a syndication attorney before raising money
- Vinney’s syndication attorney: Kim Taylor
[28:00] Vinney’s very first deal
- 14 unites
- Closed on 109 units soon after
[32:14] How Vinney raised money for his first deal
- Hustled!
- Decided not to accept money from friends or relatives
- Designed a great presentation
[38:55] How one happy investor can lead to 30 more
Connect with Vinney
Phone: 925-766-3518 (call or text)
Email: vinney@moneilig.com
Vinney’s course on syndication: realestateu.tv
Learning how to find and analyze multi-family deals is important, but if you can’t afford to fund it yourself, you need a strategy for raising money! Doing what everyone else is doing to raise money is less and less effective, and that’s why I’ve invited Richard Wilson on the podcast to talk about raising money. Richard’s business isn’t just about raising money for real-estate, but we can adopt many of the strategies that Richard talks about to raise money for our multi-family deals!
About Richard Wilson:
Richard Wilson helps $100M+ net worth families create and manage their single family offices and currently manages 14 clients including mandates with three billionaire families. Richard is also the founder of the Family Office Club, the largest membership-based family office association. Richard hosts the "The Family Office Podcast", and he is the author of the #1 bestselling book in the family office industry, The Single Family Office: Creating, Operating, and Managing the Investments of a Single Family Office. He is a sought-after speaker and has spoken at over 150 conferences in 17 countries. Richard currently resides on the island of Key Biscayne, Florida with his wife and two daughters.
Enjoy the interview!
Key Takeaways:
[1:54] Definition of a Single-Family Office: Private company that manages investments and trusts for a single person or family.
- Many wealthy people prefer to put their money back into operating businesses.
[9:27] Richard’s experience raising money
- Around 250 million raised
[9:56] Richard’s strategies for raising money
- Stop pitching people. They don’t like it.
- Start educating people. Provide real value to other people that are already in the game.
[13:02] There are experts in your niche that don’t compete with you but have enormous credibility. Find ways of efficiently connecting them to each other, (like through a podcast), and you will get Triple ROI:
- Getting value out of their brain
- You will gain a connection to this person
- Now everyone knows your well connected and educated
[15:39] Richards advice on raising money from private investors.
- Analyze your competition and what you offer. Know what’s really going on in your industry.
- Identify your position so that almost no one can compete with you.
- Architect exactly how you will attract the people based on your unique
- Execution
- Iteration
[20:45]- When you layer communities, you create good luck.
[23:44] What Richard would do if he had only 500 bucks and a laptop (EO Fire Podcast question)
- Position himself to own a checkpoint and find a way to control a critical resource.
- Own something that is a bottleneck in your industry
[29:03] Special offer:
- Download the first 4 chapters of the Capital Raising Book here: http://capitalraising.com/the-capital-raising-book/
Resources mentioned:
Family Office Podcast: Real Estate Investments, Co-Investing, Capital Raising, and Private Equity Business Strategies: https://itunes.apple.com/us/podcast/family-office-podcast-real/id849850253?mt=2
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
Key Takeaways
[1:15] Mark’s Backstory
- Worked for a high-tech company
- Left his job in January of 2015 to become a full-time real estate investor
[3:38] The day Mark “decided” to achieve financial freedom
[5:16] Why Mark started investing in condo’s and townhomes
- Higher returns (post-tax)
[6:05] Marks Hiatus from real estate investing
- Defrauded on a deal
[9:10] Why Mark decided to shift strategy and start investing in multifamily
- value-added opportunities with cash flow
- Economies of scale
- “The bigger the deal, the easier it is”
- The way a multifamily property is valued
[13:04] Why Mark decided to do bigger multifamily deals
- Bigger payoff for time spent
- Non-recourse financing that he couldn’t get on smaller deals
[14;13] Marks mental struggle transitioning from a W2 employee to a full-time real estate investor.
- Had 36 units when he left his job
- 6-12 months to get used to no regular paycheck
[17:4] What Mark would do differently if he could do it over:
- Find a mentor/co-sponsor that is doing multifamily deals
[20:11] Why a very successful investor would be willing to partner with a noobie
[23:10] Marks advice for a new investor
- Never stop learning! “Learning leads to action and action leads to success”
Resources mentioned
Mark's gift to listeners: 10 "Not So Obvious" Ways to Boost Your Multifamily Property NOI
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!
Key Takeaways
[2:26] Ed’s backstory
- Worked in Mortgage Banking for 14 years
- His commission pay structure made him nervous
- 2008 was an eye-opening experience
[6:22] Why Ed decided to stop investing in single family housing
- Not enough short-term income to justify the work/hassle
[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
- Put together sample deals using The Syndicated Deal Analyzer
- Sent deal packages to people he knew might be interested
[12:12] Why Ed decided to focus on smaller markets
- Less competition
[18:21] How Ed found his first big deal
- The power of property managers and why you should be nice to them
[23:21] Why paying for an appraisal on an apartment complex is usually a waste of money
- The Single Family Investing Mindset
[24:29] Ed’s advice on building an investment team
- Choose people with diversity of experience
[25:34] How you can find the time for multi-family investing while working full-time
[36:53] Ed’s advice to new investors
- Find 3-4 individuals that have skills/knowledge that you don’t have
- Start putting together sample deals with deal analyzer
[38:19] Why you should focus on building relationships with bankers and property managers (instead of just realtors)
Connect with Ed Hermsen
ed.hermsen@mtggroup.com
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!
Key Takeaways
[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
- Economy of scale
- 1 insurance policy, 1 loan etc. for multiple units
- Less risk of 100% vacancy
[15:09] Factors Bill considered when assessing his first big deal
- Identified key markets
- Great job/population growth
- Make sure the place has landlord-friendly laws
- Rent to value ratio
[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
- Accomplished each step before moving on to the next
[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:
Old Dawgs REI Network
Resources mentioned
Old Dawgs REI Network Blog
Old Dags REI Podcast
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.
This week I’m joined by Brooks Everline from Hagerstown, Maryland. Brooks is Truck Driver with UPS and just did his first deal in March of 2016! Brooks started with a fourplex before moving on to some small apartment building deals. I get that when you have a full-time job, finding the time and energy to do your first deal can seem daunting, but that's no excuse! Brooks sais that all you need to accomplish something is to make sure that your "why" is stronger than your why not. I couldn't agree more!
Key Takeaways: [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
- The importance of constantly searching and making MANY offers
[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
- Book: Eat That Frog
Connect with Brooks: yournextplaceinvestments@gmail.com
Phone: (301) 465-9047
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!
Key Takeaways:
[5:25] There's not just one Market Cycle
- There are a lot of markets all with a different cycles
- It’s the time to buy in some markets and time to sell in others
[7:27] The worst real estate markets right now
- Wherever foreign investors have come in and paid all cash and driven prices up. Primarily big cities.
[9:14] Metrics to look for in a market
- Job growth = population growth
- Look for cities that are proactively creating jobs
[8:30] Some of the best real estate markets right now
- Reno, NV
- Pittsburgh, PA
- Cleveland, OH
[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
- The final walk through
[22:38] When something goes wrong, communicate more with investors! NOT LESS!
[24:58] - Trust your gut.
- Even if the number look good, do a gut check
[26:24] What to look for in a Syndicator/Sponsor
- A long, proven track record of success
- Someone who has been through a storm or two... and survived
[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
- Your end goal shouldn’t be sitting on a beach for the rest of your life
Connect with Kathy Fettke
Realwealthnetwork.com | FREE to join
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.
There are various strategies for achieving this, but a relatively new one that has come to my attention is renting out properties on a short-term basis via AirBnB. This week Nav Athwal joins me to discuss this strategy and some things you need to think about before implementing it.
Key Takeaways
[4:43] AirBnB and how most hosts utilize the platform
- Hosts rent out rooms and/or entire personal homes
[7:31] Alternative ways to use the platform
- Buying properties for the exclusive purpose of renting through AirBnB
- Renting out empty properties through AirBnB while you are unable or unwilling to use them for another purpose
[10:15] Where the short term rental strategy can work
- Look for cities where AirBnB is already very active
- Look for cities with favorable regulations toward short term rentals
[11:42] Scalability of this strategy
- Not completely proven
- Services like Pillow offer on demand concierge and property management
[13:46] Regulatory Uncertainty
- Some cities are limiting short term rentals while others are outlawing them completely.
[15:36] Pro AirBnB cities
- Seattle
- Austin
- MANY international cities
[19:22] Nav’s advice to real estate investors evaluating this strategy:
- Make sure your ROI is higher than it would be for a long term rental
-
- Factor in cost to manage
- Factor in expected occupancy rate
- Research the cities regulatory environment
- Location- Is this a location that will attract travelers?
Resources mentioned
Blog Post: THE RISE OF THE PROFESSIONAL AIRBNB INVESTOR- https://www.realtyshares.com/blog/the-rise-of-the-professional-airbnb-investor/
Connect with Nav
Website: www.realtyshares.com
Email: nav@realtyshares.com
Twitter: @navathwal
Ever wonder what SEC regulations apply to apartment building syndications? There is a lot to this subject and while it’s not crucial that you know everything, nor should you try, it is important that you have a basic understand of what’s involved and what to look out for.
This week I’m joined by SEC Attorney Steven Rinaldi who has been handling private offerings of securities for over 26 years. Steven is extremely knowledgeable and competent, and this episode is packed full of useful info!
Key Takeaways: [2:25] Definition and example of a syndication
[5:00] The types of entities Apartment Building Investors should use for Syndication
[8:08] How to structure a deal
[10:31] Legal documents required for syndication:
- Operating Agreement
- Prospectus/Private Placement Memorandum (PPM)
- Subscription Agreement
- Form D. File this in the states where the investors are located (not the property)
[13:12] Advantages of Delaware LLC’s
- Hard to break up
- Discourages disgruntled investors from filing lawsuits
- Delaware judges see these cases all of the time and are very familiar with business law
- Get out of trouble for as little as 10K vs. 250K
[17:38] What makes an investor an “Accredited Investor”
- Net worth of one million or more excluding their house, car and life insurance
- Husband and wife with a salary of 300K or more, with every expectation that will continue
- Or one spouse makes over 200k per year, (with every expectation that will continue)
- Less common
- Trust fund of more than 5 million, Corporation, Partnership or LLC worth more than 5 million
- Banks, Broker/Dealers, Mutual Funds, Insurance, Small Business Development Companies
[19:18] What qualifies as a “Prior Relationship”
- The SEC won’t define it
[21:10] How to go about advertising to accredited investors
- Go to a broker/dealer that specializes in alternative investments
[21:52] The difference between advertising and networking
[22:37] The importance of doing a PPM
- You are required to provide a PPM to all non-accredited investors
- You want to provide a PPM to accredited investors because they can sue you for fraud for not disclosing all "material information"
- If you don’t, and the deal goes sideways you could easily lose everything you have. In most states that includes your house and your kid's college fund.
- In most states, you cannot discharge a securities law judgment or fraud judgment in bankruptcy
- ALWAYS DO A PPM!
[26:43]- Time and cost of drafting an Operation Agreement and PPM
- Three weeks for initial draft
- Could be completed in as little as five weeks
[29:10] The basics of crowdfunding
- You can advertise to non-accredited investors BUT pay attention to the rules
- You must refund all money if you don’t hit your goal.
- More work for an attorney, therefore, more expensive
Connect with Steven Rinaldi
Email: stevendrinaldi@msn.com
Website www.rinaldilaw.com
Phone number: 240-481-2706
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
In this episode, I will lay out a plan for you to do a deal on a duplex in 90 days. And if that's what it takes for you to get into multifamily investing, then DO IT. Buy that duplex. Will you retire from it? No, but at least you're in the game.
Key Takeaways: 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
- Watch tutorial video and download spreadsheet here: http://www.themichaelblank.com/duplex
[4:39] Reason # 2: You need less money
- Even if you need to raise the money you won’t need near as much
[5:01] Reason # 3: They're easier to analyze
[5:19] Reason # 4: You don't need to build a huge team
[6:06] Reason # 5: Cash flow per unit tends to be better than for larger MF properties
- Easier to see $200-300 per month, per unit in positive cash flow
[7:05] Vision setting is important but don’t let your vision stop you from achieving your goals
- Set achievable 90-day goals
- 90 day goals are long enough to achieve something meaningful but short enough for you to see it happening
- Set goals that you can achieve if you hustle.
[8:08] 90 day plan to buying your first duplex [8:51] Week 1: Educate yourself
- Read books
- Take courses - Find mine HERE: http://www.ultimateapartmentinvestingguide.com/
- Attend a seminar
[9:35] Week 2: Determine investing area
- Less important than in larger multifamily investing
[10:27] Week 3: Analyze 5 deals
- Download deal analyser spreadsheet here: http://www.themichaelblank.com/duplex
[15:33] Criteria:
- What are the comps?
- Rent analysis by location
- Rentometer.com
- What’s the cash on cash return?
[17:58] Week 4: Start raising money
- Sample deal package
- themichealblank.com/ebook
[19:04] The Last two months
- 1 investor meeting per week
- Make 5 offers per week
- Your goal is to get ONE accepted
It’s just me on this episode and I want to talk with you guys about mindset. Expanding your mind is something help you achieve your goals in the fastest way possible. Staying within your comfort zone can do the opposite.
In this podcast I outline 5 Reasons why bigger is better with apartment building investing and then give you 3 practical ways to expand your comfort zone, so you can do more/bigger deals.
Key Takeaways: [0:30] We limit ourselves based on what we believe is possible.
[3:14] Buying an apartment building twice as big really doesn’t add that much work.
5 Reasons Why Bigger is Better with Apartment Building Investing [4:18] Reason # 1: A Much Better Buying Experience
- The smaller you go the more of a pain it will be.
- Less sophisticated sellers
[4:55] Reason # 2: Economies of Scale.
- You can spread out the cost of management/maintenance over more units.
[5:25] Reason # 3: Less closing costs as a percentage of the deal
- Many flat rate fees
[5:55] Reason # 4: Better financing
- Non-recourse loans. The larger the loan the less likely you will have to personally guarantee it.
- Larger loans are cheaper. Interest rates go down and terms get better.
[6:40] Reason # 5: Bigger Profits for less work
- Would you rather buy 30 houses or one 30 unit building?
3 Practical Ways to Expand Your Comfort Zone (So You Can Do More Deals!) [10:31] Tip # 1: It all starts with visualization
[12:01] Tip # 2: Create a sample deal package.
- Look at deals that are outside of your comfort zone. (More units).
[13:43] Tip # 3: Visit properties that are outside of your comfort zone
- Visit 3-4 properties over the period of 1 week
Mentioned in this Podcast: Book: The Miracle Morning
eBook: The Secret to Raising Money To Buy Your First Apartment Building
Movie: The Secret
I’m doing something a bit different with this episode and I think you are going to really enjoy it. While I realize that the name of this podcast is “Apartment Building Investing” it’s good for us to expand our minds and see what else is out there.
Today I’m joined by Jefferson Lilly to talk about mobile home park investing!
Jefferson Lilly is a self-made millionaire mobile home park investment expert, educator, and industry consultant. Prior to co-founding Park Street Partners in 2013, Mr. Lilly spent seven years investing his own capital acquiring and operating his own mobile home parks. Before becoming an investor full-time, Jefferson spent nine years in sales leadership roles with several venture-backed startups in Silicon Valley. Jefferson has been featured in The New York Times, Bloomberg Magazine, and on the 'Real Money' television show. He holds a B.A. from the University of Pennsylvania and an MBA from the Wharton School of Business.
Key Takeaways:
[6:58] In the mobile home business, you want to own the land, not the homes. “Be in the real estate business. Not the wheelestate business.”
[8:08] Owning the land only, cuts out the vast majority of repair and maintenance that you are responsible for.
[8:53] What to look for when investing in mobile home parks.
- Look for properties that have no website and are undermanaged.
- Buy a park that is on municipal water/sewer.
- Make sure rents are going to remain relatively consistent.
- Look at parks within 5-10 miles of a Super Walmart.
[13:19] What to look for in an onsite mobile home park manager:
- Someone that has lived in the community for a while
- Someone who owns their own home
- Someone that keeps their home looking sharp.
[20:22] People tend to treat the park and their homes with more respect the father north you go (in the U.S.).
[22:16] When starting out, be hands on for the first 6 months. After that, think about outsourcing tasks.
[25:05] Income streams from Mobile home parks:
- Leasing the grounds.
- Selling mobile homes, via rent to own agreements.
[26:13] Common financing options for mobile home parks:
- Region banks (most common)
- Seller financing (preferred option)
[30:44] Primary ways to find deals:
- Brokers
- Direct outreach
[34:09] Why mobile home parks can offer great upside:
- Less competition in certain areas of the country.
- Not a “sexy” investing option.
[38:38] Ways to invest in mobile home parks:
- Do it yourself.
- Invest through a fund like Park Street Partners.
How to Connect with Jefferson www.parkstreetpartners.net
Podcast: Mobile Home Park Investors
MobileHomeParkInvestors.net
http://www.lillyandcompany.net/
This episode is a bit different than the norm because I am the one being interviewed! JP Moses with realestatemogul.com interviews me about apartment building investing and raising money.
I talk a bit about my journey, the struggles I’ve had and why many people dismiss apartment building investing as a wealth creating strategy for themselves. We discuss the myths and realities of getting started with apartment building investing and how to overcome the initial roadblocks.
Key Takeaways:
[4:02] Success is riddled with mistakes and failures
[6:02] You have to be willing to operate in an environment where you can’t control everything and be at peace with that.
[11:59] Key components that make a deal worth doing.
[13:24] Why there is less speculation in commercial real estate than in single family investing.
[13:56] Very few great deals are going to be in your backyard.
[14:10] The best way to find deals in through relationships with brokers.
[16:35] Loopnet.com is useful in finding brokers to start relationships with.
[20:14] People dismiss apartment building investing for these 3 reasons:
- I don’t have the money.
- I don’t have the experience.
- It’s so overwhelming I don’t know where to start.
[21:40] Flipping houses or investing in single family doesn’t give you credit when it comes to investing in multifamily dwelling.
[22:25] If a broker is asking you qualifying questions they’ve already classified you as a newbie.
[27:00] Even in stable apartment building investments you need to be interacting with your property manager on a consistent basis so you don’t lose touch.
[31:45] The right way to introduce yourself to a broker.
[34:55] Putting together a sample deal for potential investors.
[45:37] How to make money on deals you can’t pull the trigger on yourself.
[48:29] Don’t spend money in the due diligence process until you are 98% sure you are going to get the deal done.
[53:04] Invest in your education. Everything else can be achieved with hustle.
There are many advantages to investing in multifamily over single family rentals and this week I’m joined by a guy that has invested a lot in both.
Rod Khleif has been a real estate investor for the past 25 years has owned over 2000 apartments and homes. Rod shares his fascination real estate investing journey and how he built a HUGE single family house investing business which kicked his butt during the recession. Rod gives us the pros and cons of Single Family Vs Multifamily investing and discusses why he thinks a correction is coming and why multifamily’s are the best investment right now.
But ask Rod what he is most proud of, and he will tell you about his work as a community philanthropist. Over the past 14 years, Rod’s work has benefitted more than 40,000 underprivileged community children.
Rod has a new book, coming soon, on the topic of multifamily investing and listeners of this podcast can get it for FREE by texting “Rod” to 41411. Rod hosts a new and already popular podcast called the Lifetime Cashflow Podcast.
Key Takeaways
[3:58] Single-family rentals either are rented or they are not. With multifamily dwellings, you can typically cover your expenses, even with a vacancy.
[6:03] Learn a business, and confidence and the ability to influence people will follow.
[7:30] Always be learning. Regardless of how much you know, there is always something to learn.
[10:28] To be good at investing, you need to learn to love it.
[10:47] Learn to find positives in negative situations
[14:24] Pros and cons of Multifamily investing
[18:08] The beautiful thing about multifamily is it’s valued based on the net operating income NOT comps.
[19:34] By improving net operating income you can exponentially raise the value of an apartment building.
[21:53] Financing on large deals can be easier to secure, with better terms.
[25:01] It’s easier to scale multifamily investing than single family.
[27:12] You can become finically free with ONE transaction in multifamily. It generally takes dozens of single family deals to accomplish the same thing.
[30:16] If you’re willing to do what others don’t do, you will be a success.
[37:09] The importance of visualizing your goals.
[39:47] Know the “why” behind your goals.
Mentioned in this interview:
- Rod's Podcast is the Lifetime Cashflow Podcast: http://www.lifetimecashflowpodcast.com/
- Rods new book all about multi-family real estate investing: Text “Rod” to 41411 and get the book FREE when it’s released.
- Connect with Rod Khleif
The best way to connect with Rod is via email at rod@rodkhleif.com
About 98% of the people that come to me are not aware that they can invest in real estate from their RIA or 401k. Investing with your IRA or 401k brings enormous tax advantages, and therefore growth advantages, but there is quite a bit you need to know before you get started.
This episode is part 2 of my interview with Attorney, Accountant, and Real Estate Investor John Hyre. In this episode, John covers a few advantages and disadvantages of various retirement investing plans and the pitfalls of prohibited transactions which can easily blow up your IRA and cost you 50%-60% of the account value.
John has a course on this topic that I have reviewed on my website: http://www.themichaelblank.com/ira. For a limited time, John is offering this course and the live conference footage (discussed in this episode) for only $1,197 (Regular Pricing: $2,391).
Key Takeaways:
[3:42] An IRA is the biggest loophole out there. The best way to deal with income is to make it not taxable to begin with.
[10:59] Roth IRA VS a traditional IRA
[11:33] It’s much better to be taxed on the seed now then the crop later.
[12:02] Self-directed 401K’s are superior to traditional IRA
[12:15] The value/importance Health Saving Accounts (HSA) and Coverdell Education Savings Accounts (CESA) are often underestimated.
[14:30] Why you should set up an HSA TODAY
[15:39]- why 401K’s are “infinitely superior” to IRA’s. Penalties for prohibited transactions are MUCH worse for an IRA.
[19:45] The power of tax-free investing.
[26:26] Prohibited transitions in IRAs- what makes them so scary. Don’t just be conservative, be Paranoid.
[33:32] Statue of limitations on prohibited transactions (NEW)
Mentioned in this interview:
IRA Investing: Review of the Tax Litigators Guide to Tax-Free IRA, HSA & CESA Wealth by John Hyre- Special Limited Time Offer: Buy the course + live conference for just $1,197 (Regular Pricing: $2,391)
Purchase here: http://www.themichaelblank.com/ira
Connect with John
Iralawer.com
Realeastatetaxlaw.com
Bookkeeping is often an overlooked, underappreciated part of business for new investors. However, if you don’t understand your books and your business entity you are probably losing a lot of money, and not just during tax time.
John Hyre is an Attorney, accountant and real estate investor, (in that order according to him), and he was kind enough to join me on the podcast to talk about choosing and maintaining a business entity and the importance of keeping your books the right way. John even has a class on both topics, and the two can be purchased together here for just $499: www.themichaelblank.com/hyer
The information packed into this episode can save you a lot of pain, suffering and money.
Key Takeaways
[3:10] Biggest mistake that business owners make is the failure to document. If you can’t prove it, you can’t claim it.
[4:35] Use Quickbooks instead of Quicken. Reason; Real estate investing is a balance sheet intensive business and Quickbooks is better suited for that than Quicken.
[5:45] Doing your books the right way saves you money on the front and back end. It lowers your overall tax bill and saves your accountant time, and therefore you money.
[6:07] The books tell you how the business is doing. If you’re not keeping them correctly, you probably don’t know how your business is actually doing.
[6:42] You can delegate bookkeeping, but you need to know about what goes into the books and what you should see to know that whoever is doing it, is doing them correctly.
[9:03] The best insurance against an IRS audit is the bookkeeping and record keeping.
[10:01] Pay your kids to do work for you like scanning receipts. It’s a tax write-off and the money stays in the family. (More on this later in the episode).
[12:03] An LCC is like life insurance. You want it if you need it, but you want to keep the probability of needing it as low as possible.
[13:50] You can avoid a lot of lawsuits by being nice to people.
[14:41] Entities are like children; Fun and easy to make but a lot of work once you got one.
[15:00] The #1 way to destroy an entity is to co-mingle money.
[16:40] Generally the best entity to use for apartment building investing is an LLC
[20:08] Once you involve someone who you are not married to as a partner, you will want a lawyer to write a customized operating agreement. Don’t use a template.
[27:28] If you want a court to treat your LLC like a business, you need to treat it like a business.
[28:18] Rules & guidelines for paying your kids.
[46:32] Trust law is much more complicated than entity law.
Mentioned in this episode:
Entity Selection Course, Bookkeeping course: www.themichaelblank.com/hyer
-purchase for 299 each or 499 together
Iralawer.com
Connect with John
Iralawer.com
Realeastatetaxlaw.com
It’s never too early to get started.
This week I’m joined by John Cohen who is just 29 years old and is the President of JC Property Group Inc., a company he formed in early 2013. John played college baseball and graduated with a degree in Economics from Queens College. Fresh out of college John started a job as a stock broker at Morgan Stanley and quickly realized that it wasn’t the path for him.
He switched his focus to real estate and quickly found that making money on tax deed properties wasn’t as easy as he’d hoped. He then joined Marcus & Millichap and became a successful commercial broker, all the while buying properties for himself, before leaving the company to focus 100% of his time on the growth of his company.
Key Takeaways:
[6:03]- The moment John realized that finance wasn’t what he wanted to be doing.
[9:23] People say they want to become a millionaire and retire early, but they don’t really decide that’s what they are going to do.
[9:48] How John got into tax deeds without knowing what he was doing and purchased two worthless pieces of land.
[16:04] John’s tax deed properties strategy
[17:45] Transitioning from tax deed buys to multifamily units
[23:52] Getting that first deal
[30:10] Strategies and tactics to finding deals.
[34:00] Direct mail: it’s not what you write, it’s the consistency
[43:11] John’s biggest aha moment- Don’t take things for granted. You have to work for what you want.
[47:10] Best Habits: Get up early, do the hardest things first.
[48:18}- Best Resource- People. Reach out to people that can help you. Meet with them instead of calling. Call them instead of texting.
[49:44] You need to find a mentor. Don’t stop until you find that person.
Connect with John
Cell:
Email:
“Dream big but start small.” Today, it doesn’t take much to get started in real estate investing and in this episode you will find out just how little it takes to get into your first multi-family unit.
I invited Keith on the show to discuss how he got into multifamily investing by moving into his first home he ever bought: a 4-plex. Over the years, Keith has added to his portfolio and is now a full-time investor.
Keith is the Founder of Get Rich Education to teach others about the life-altering power of investing, especially through real estate. He hosts of one of America’s top investing shows - Get Rich Education - with thousands of listeners in over 160 world nations. He’s heard everywhere from iTunes to iHeartRadio, and regularly hosts Kiyosaki Rich Dad Advisors as guests.
Key Takeaways:
[3:19] You CAN move to a location that you dream of living in instead of moving wherever there’s a job.
[9:00] Sometimes we need to “unlearn” before we can learn
[10:40] How Kieth Got started with an FHA loan (it’s still available TODAY)
[16:55] Forget about compounding, the key is Leverage
[22:09] What to look for to make sure you “buy right”
[25:50] How to find the best listings
[29:16] What to look for in a property manager. What to look for in the “Interview process.”
[32:57] ROTI- “Return on Time Invested” is a metric you need to think about when it comes to self-managing your properties.
[35:32] Advise from Keith. If he could do it all over again, what would he do differently?
[38:57] How to think about debt: Outsourcing to tenants.
Mentioned in this interview:
Mentioned in this interview:
Favorite books:
1] Rich Dad Poor Dad: Rich Dad Poor Dad- by Robert Kiyosaki
2] Loopholes of Real Estate- by Garrett Sutton
Online resources: www.16personalities.com
Connect with Keith:
ww.getricheducation.com
Keiths Podcast: Get Rich Education - https://itunes.apple.com/us/podcast/get-rich-education-keith-weinhold/id927263663?mt=2
http://traffic.libsyn.com/michaelblank/MB_034-_Do_THIS_to_Get_Into_Your_First_Multifamily_Deal_-_With_Keith_Weinhold.mp3
Michael gets a lot of interest from all of you international investors who want to invest in the U.S. but there are a lot of questions that need to be answered before you can close that first deal. Like, what do I need to set up? Can I invest in apt buildings and if so, how? What are the tax considerations?
In this episode, Michael is joined by Reed Goossens, who answers those questions and more!
Reed is from Australia and moved to the US 4 years ago. He's a civil engineer by trade but wanted to get out of the rat race and started to invest in multifamily properties in the U.S. But he faced all kinds of difficulties investing here as a foreigner but finally figured it out. Now he's looking for apartment building deals all over the U.S. He hosts a podcast called " Investing In The U.S. - An Aussie's Guide to U.S. Real Estate" where he teaches people how to invest in the U.S. from abroad.
Connect with Reed:
Website: http://www.rsnpropertygroup.com/
Email: reed@ rsnpropertygroup.com
Podcast: https://itunes.apple.com/us/podcast/investing-in-u.s.-aussies/id1071004776?mt=2
http://traffic.libsyn.com/michaelblank/MB_033_-_The_Definitive_Guide_to_Investing_in_the_U.S._From_Abroad_With_Reed_Goossens.mp3
Michael welcomes to the podcast Nav Athwal, the founder and CEO of RealtyShares. RealtyShares is one of the oldest and largest companies out there in the relatively new and exciting market of real estate crowdfunding.
Nav has drawn from his diverse and impressive background to build RealityShares into a market leader. Nav was once worked an electrical engineer, then for a raw land developer and then became a land-use attorney before starting RealtyShares from his living room! It’s not in his living room anymore. RealtyShares has now raised almost 150 million with a diverse set of operators located in over 60 markets!
Most of us are pretty aware of the basics of crowdfunding and the advantages it creates in the marketplace. So instead of painting in broad strokes, Michael and Nav get into the nuts and bolts of RealtyShares and what that means to you, the listener. In this show they cover the following:
- Investor qualifications – (these standards may be loosened soon)
- Investing minimums
- Investing opportunities
- Raising capital through real estate crowdfunding
- RealtyShares ability to provide the ENTIRE capital stack
- Preferred Returns
- And much, much more
RealtyShares Website: www.realtyshares.com
RealtyShares contact info:
Email: contact@realtyshares.com
Twitter: @realtyshares
Nav Athwal contact info:
Email: nav@realtyshares.com
Twitter: @navathwal
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
book on commercial real estate available on Amazon, Audible.com and on his website www.impactcoachingsystems.com.
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:
http://www.themichaelblank.com/session31/
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 ofEastern Union Funding and Shai Romirowsky, VP at Eastern Union Funding.
Here are the complete show notes and transcript:
http://www.themichaelblank.com/session30
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!
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.
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.
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.
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.
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.
In this episode I interview real estate investor Joe Fairless as he describes his journey from just a few rental properties to his first apartment building deal, a whopping 168-unit property -- what an awesome story I know you'll enjoy and learn tons from!
Join me as I talk with Kaveh Shirazi about how he launched his commercial real estate investing career right out of college and on someone else's dime. So we much we can learn from this young investor!
In this episode I jam with aspiring commercial real estate investor Scott Isley as we discuss techniques for raising money and structuring the deal.
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.
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.
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.
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!
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.
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:
- Michael’s articles on The BiggerPockets
- Michael's YouTube Channel
- Michael on Facebook