Financial Freedom with Real Estate Investing

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 [email protected] 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 [email protected] 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 [email protected] 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 [email protected] 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 [email protected] for the Crisis Investing Webinar Email [email protected] for the Silver Series Email [email protected] 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 [email protected] 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 [email protected] 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 [email protected] 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 [email protected] 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