Multifamily Legacy Podcast

Brayand Ponciano is here today to share his amazing story. He is a guy who started at the bottom, but had a huge drive that pushed him to the top of his game. Like all of us, he had his self-doubts, but that didn't stop him from becoming a successful entrepreneur and real estate investor. I've known Brayand for a long time. He actually started out with bandit signs, and now he is closing on his first apartment complex. He shares his story and more in this lively episode. Topics on Today's Episode: Brayand shares how he grew up in South Gate in the Los Angeles area. His parents were immigrants, and growing up poor a lot of these dreams of money and real estate didn't seem very doable. Brayand shares how his mom wanted her kids to understand what it was like to be poor, so they would appreciate what they have. The difference between being confident as opposed to arrogant. Brayand saw the Carlton Sheets infomercials and wanted to get involved in real estate and started selling mobile homes. He answered an ad which he assumed wasn't legitimate, but it turned out to be posted by Derek Jarr of GreenStreet Communities. Derek hired Brayand and gave him door knocking opportunities. The first guy with whom Brayand went knocking on doors was Brian North in 2007. They go through a list of people who are going through foreclosures. They would get a lot of denial and anger, but it was good experience. The market crash ruined Brayand's first foray into real estate, but he didn't give up. Out of desperation Brayand made a list of ways to make money. Through the process of elimination he decided to place bandit signs and was hoping it would get him back into the real estate game. How you may have to take a step back and get a full-time job or a side job in order to make it. You have to be willing to do whatever it takes that is legal and ethical. How not having money actually makes you more discerning when it comes to picking and choosing deals. Find out who you are because it is a big part of success. Be true to yourself and be who you are. The importance of breaking belief patterns and assumptions that can hold you back. Corey introduced the concept of other people's money to Brayand. Even though he had some self-doubt, he got his first deal and it shot up his confidence level. How we can be our own worst critic in our minds. Going from fixing and flipping and transitioning into multifamily. You need a credibility kit to show that you have done deals and bought and sold properties. Perception is reality and Brayand is trying to transition to someone with more of a public persona. Line up money and line up a deal, but get away from the house. You aren't a contractor or an errand runner. With this method you can do multiple flips at once. Learning how to leverage and use other people's money and finding private investors. WIIFM or "what's in it for me" is what your investors care about. Brayand likes giving back, giving his investor's a better return, and automation. He used this strategy to move into multifamily properties after he used a lease option sandwich for some homes. He loves the cash flow thing, but not doing one deal at a time. As he progressed and let go of control, this led Brayand to where he is now. The concept of looking down the line. It's not about you, it's about the investors. You want them to want to give their money back to you when you pay them. The power of OPM. Remember WIIFM. People care about what you can do for them. Then find a way to present that to them. Links and Resources Mentioned: Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family Together We Grow Brayand Ponciano on Facebook The AZ Flip Guys @GrowTogetherPHX on Twitter Brayand Ponciano on LinkedIn Derek Jarr Brian North Quotes: "I agreed with the message of other people's money, but growing up poor it didn't seem possible for me." Brayand Ponciano "Getting into real estate was like something out of a dream for me." Brayand Ponciano "When I was 19 I got a job at Ross, and my parents and family thought it was a good job. Once you grow up poor, it really programs you to stay poor. " Brayand Ponciano Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

I'm going to get real with you, invite you into my tribe, and talk about two types of deals that you should be doing. Before I get into the repositioning and momentum plays, I want to remind you to download my Quick Start Workshop and tell you a little bit about my upcoming offerings. Next month, I should be launching my Kahuna Boardroom. This is an exclusive course for those ready to take the next step into multifamily investing. The course will be based on what I call my six pillars. The Kahuna Cash Flow Calculator will also be coming out next month. Topics on Today's Episode: Repositioning plays are where you buy a property and do a lot of work. It may not cash flow well at the beginning. Year three is where you hit the payday. It takes a full year to fix up a property. You want to get multiple bids and keep occupancy up. Once everything is cleaned up it is time to reposition the tenant base. Present your model to investors in a conservative manner. Say it takes two years to get things up to speed. It's ok if it gets done in a year, but don't create big expectations. My Kahuna Cash Flow Calculator will show you what a green light project looks like. Momentum plays are buying operationally sound properties at a good price, and you don't have to do a lot of work on them. These cash flow right away. There is not a lot of risk, but there is also not a lot of profit. Can I pay my investors and give them their money back? Can I pay my investors profit? Model a conservative model on each and every deal. Corey shares a story about a repositioning play that almost didn't work. Back funding to pay investors at the beginning of a repositioning play. Value adds and taking the current state and making it better or repositioning to make more profit. Deferred maintenance and bad management are what makes apartments bad. Multifamily has enabled me to live a life beyond my dreams. You can do it too! Links and Resources Mentioned: Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family Why the Rich Get Richer Russell Brunson Quotes: "Be conservative when presenting to investors. It is always best to under promise and over deliver." Corey Peterson "When done right, you can make a crap ton of money with a repositioning play." Corey Peterson "Momentum properties start to cash flow from day one. You can pay your investors quarterlies from day one." Corey Peterson Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Whether you are just starting out or are transitioning from fixing and flipping, there is a good chance that you struggle with the idea of raising private money. Today, I hope to move your thinking to get you to a point where you know that you can do this. I started out with nothing and was able to do it, and you can to. I'm going to show you how I transitioned from single family deals to apartment deals. A lot of it is about education and explaining to people what you are doing and what they are getting. I've been doing multifamily for awhile, and I feel it is time to give back and tell my story. Topics on Today's Episode: The importance of being strategic and saying no to yourself and your wants in the beginning. Living the life you have because you lived the life no one else would. We actually moved in with my sister in law when I first started with real estate. When raising money, put yourself in leadership positions when you are teaching what you know. It helps to be in a place of authority. Raising private money is always done one on one. Bring your credibility kit for multifamily and your private money program for single families. Ask questions about dreams, goals, etc. Share what you do. Start with the apartment story and how they provide a source of quarterly income. People want income, but don't want to spend down their principle. We have learned how to mitigate risk and that is what we do. Millenials don't want to buy houses. They like the flexibility of renting. Baby boomers are downsizing. We are good at buying old properties that suffer from deferred maintenance and bad management. We know how to fix fixable problems. We specialize in finding old properties fixing these problems and making profit. We buy based on cash flow. Most of these investments are five year commitments. Most people are looking for consistency. We pay based on cash flow. Every quarter our investors get a preferred rate of return. Single family is based on each and every deal. It's a lot of work. Most people just want to set it and forget or at least not be hassled by it. Does that sound like you? This is the buy in. But, I don't know you, and you don't know me. Do a small fix and flip deal for 90 days. This is the best way to start the relationship and go from there. This method can easily unlock current private money. The market is super hot, it's time to transition to cash flow through apartments. People will follow you when they know, like, and trust you. Links and Resources Mentioned: Free Workshop Quickstart Video Series Quotes: "Anything in life that you are going to be successful with takes work. If you put in the work and do what I ask you to do ultimately you will really start finding success." Corey Peterson "The work done once is the beauty of the multifamily business." Corey Peterson "Start believing and tell yourself daily that you have what it takes. You have to start programming your mind to believe in yourself." Corey Peterson Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family. Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.

My friend B.P. is here today to share how the principles of OPM or using other people's money has helped him 10X his business. He shares how this business has been life changing and stress relieving. It will benefit his kids and family for years to come. This is a great quick testimonial of how my teachings really can change your lives. Topics on Today's Episode: I have been in the real estate business for 10 years and Corey has been a guiding light to me. Corey has taught me the concept of OPM or using other people's money. I have been able to 10X my business just by following his concepts and moving on to multi family homes. I liked the concept of OPM, but I didn't think it was possible for me. How a mindset change helped change B.P.s confidence and he realized that if he could do it for one person, he could do it for many. Doing it and seeing it work started the shift in my mind that built self-confidence for me. Transitioning from flipping single family homes to multi-family homes it has made me look foreword to the beginning of the month. I credit Corey to showing me the long-term benefits of looking into multifamily. There has been a bright outlook created in my future. Making six or seven figures passively. Don't sell yourself short and get into multifamily as quick as possible. If you follow Corey's teaching, you can go from something to nothing I just want to thank Corey for his time. Quotes: "Things completely shifted in my mind. I realized if I could do OPM investments for one person, I could do them for other people." B.P. "Doing it and seeing it work started the shift in my mind that built self-confidence for me." B.P. "Multi Family has released a lot of stress and anxiety for me. Especially the stress that comes with fixing and flipping many properties at one time." Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.

Mauricio J. Rauld is a PPM Lawyer and the founder and CEO of Premier Law Group. He is a nationally recognized expert in asset protection and private placements. He represents and educates investors from all around the world. He also assists with raising capital and ensures compliance with SEC, State rules, and regulations. He has been a California licensed attorney for 18 years and specializes in security laws. He helps entrepreneurs like me, raise capital to go on and do bigger and better deals. He has been doing this for 15 years and has helped raise over $150 million dollars. He is just really laser-focused on this particular area of the law which is very specialized. Topics on Today's Episode: Syndication is the pooling of resources. Usually money to make an investment as a team. Providing other resources than money are also valuable to the investing team. Taking money from others to manage is a security. The structure doesn't matter if you are selling a security, you have to comply with all of the security laws. When it comes to structure we will figure a way to do it. You can get creative and make someone part of a deal, but you can't just give them a side commission. Register syndication with the FCC, or find an exemption to registration, or else it is illegal. Registering the syndication is a long and expensive option and your last choice. You don't want to accidently do an illegal offering like failing to disclose something. The best option is #2 which is finding the right exemption for your deal. The Reg D exemption. These allow you to raise an unlimited amount of money. An accredited investor has a net worth of over a million dollars. These are private, you can't advertise. The 1933 act prohibition against marketing a non registered security. You can only accept accredited investors. You must take reasonable steps to verify that they are accredited. Safe Harbor Provision of taking reasonable steps to verify. There are also third party verification companies. Getting an acquisition fee, all of costs, costs of buying, as long as it is disclosed it can be part of the offering. If you don't have the money, but you have the other skills, you find someone and do a partnership and they put up the money, and get paid back at the end. They can also be the lead investor. Corey's 12.7 million dollar deal. Bam! Having earnest money sitting around to lock up a deal. Once the due diligence is done. Emotional quotient and ability to handle stress. CQ or curiosity quotient helps you learn the process. so you can recall things. PPM or private placement memorandum. It tells you every single way that you can lose your money. This is protection for the investor and the syndicator. Because the market can turn and sometimes deals don't go as planned. The PPM is mandatory with non accredited investors. Only accredited investors it is not required but they do need a complete disclosure. Each deal is different. The same PPM can't be used on every deal. You need to do underwriting to understand what disclosures need to be made. Due Diligence checklist. Lack of PPM. This is a red flag, cutting corners, and possibly illegal. Attention needs to be paid to the whole process of syndication, and it should never be done alone. Links and Resources Mentioned: Premier Law Group [email protected] Mauricio J. Rauld on Facebook Curiosity Is as Important as Intelligence Devil's Advocate Quotes: "It's not all about money. Time, relationships, and credit are also valuable resources." Mauricio Rauld "Anytime you are taking money from another person with an expectation of managing it, that is a security." Mauricio Rauld "Most lawyers like to talk. In a business like this, it is better to listen." Mauricio Rauld "If you can find other people with money to invest, you can make bigger deals faster, but you have a fiduciary responsibility to those people and that money." Corey Peterson "We only do fat deals. If you do fat deals and they get skinny everyone is still happy." Corey Peterson "Less equals more. The less I have to work and not do stupid crap like pushing paper the better." Corey Peterson Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.

I have a special podcast for you today, because I am in Kauai, the garden island. The backdrop behind me is just amazing. This is what happens when you get that wealth that I have been talking about. It enables you to go on really cool trips and bring lots of friends and stay in amazing places like I am staying. Today's topic is about the secrets of operations. What operational things do you need to do to make a big difference. How can you get the most important things done and free up your time by finding the right person to do those things for you. You want to run your ship by empowering the people you put into the system to do their job which allows you to focus on the money. Topics on Today's Episode: Find management companies or multifamily operators. Pay them between 4% and 6%. You can pay them less because it is a lot of business. That is the power of multifamily. Questions you ask your management company are things like: How they turn a tenant into a client? What is their sales process for getting people in the door? What are their managers responsibilities? Managers should scan the bills to the home office, and the home office pays the bills. Keep asking them about all of their systems and processes. Including staff for X amount of doors. Best Practices for a Management Company Make sure you ACH all of your tenants. That means they fill out forms to have their rent ACH drafted each month. Collecting rents wastes an insane amount of time. Lead manager is in charge of the people who come on the property, and the financial status of the property. Accountable to P&L. Lead manager has the responsibility of leading people. Hiring the correct managers and maintenance people. Don't rent to the wrong tenants. Replace all of the old light bulbs with LED lights. Replace tenant controlled switches and put lights on a timer. Take one year and cut all of the overgrown stuff down and make it look like a new property. Put in USB plugs in kitchen and every bedroom. Point this out when doing the walkthroughs. Have the maintenance guys clean the carpet and then have the manager check to make sure that it is done right. This saves time, money, and gets the job done right. You can make money by increasing rents or decreasing expenses. We are fanatical about P&L and our supply chain. We use buying power collectively to lower operating costs. Links and Resources Mentioned: Free Workshop Quickstart Video Series Quotes: "The legacy lifestyle isn't going to the job each and everyday and managing a bunch of people." Corey Peterson "Most newbie operators try to do everything themselves. I think that is a bad idea." Corey Peterson "Lighting is the number one biggest bang for your buck that you do at a property level." Corey Peterson Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.

Having love and support makes everything we do easier. The topic for today is what it means to be a supportive spouse, and my lovely wife is here on the show with me. Shelley Peterson is part of Kahuna Investments and helps with all aspects from finding deals to using her amazing communication skills to connect and communicate effectively. When I lost my job at Edward Jones and was struggling to build up my business, in spite of fear and insecurities, Shelley stood behind me with faith and unwavering commitment. Even though it took time for my efforts to pay off, Shelley never gave up on me. We talk about early struggles, mistakes made, and how hard work and perseverance paid off. Topics on Today's Episode: Shelley shares how she felt when Corey was fired from Edwards Jones. Frustration that spouses feel when their partner works a lot. How women want security. When that is ripped away this is where faith and belief come in. Shelley's faith, love, and commitment to Corey outweighed her insecurities when Corey was working constantly to try and build a business after losing his job. How Corey was relentless to get his business off the ground and was in the office until the early morning hours. Corey does this because he wants to provide and do what is best for the family. How couples have to work through doubts and struggles. Building the initial inertia is a lot of work. When times were rough they moved out of their home and moved in with Shelley's sister. They had to make sacrifices. As a couple you have to make tough decisions to get ahead. Corey told Shelley that one of these days he would enable her to retire from her job. It took three years, but they got there. Not working an outside job has been an absolute joy for Shelley. A supportive spouse gives you a comfort level that is needed. Taking a step back, listening to your partner, and finding balance. We've always been able to communicate well together. Entrepreneurship requires a different support staff. Don't underestimate the power of a supportive spouse. Shelley saw Corey as a diamond in the rough, and Corey thinks of her as his polisher. The power of having time and money through real estate. Cash flow is when your cup gets filled up regardless of what you do. Becoming a true investor with multifamily apartments. Links and Resources Mentioned: Kahuna Investments Dave Ramsey Rich Dad Poor Dad Quotes: "It takes a lot of faith and commitment to be a supportive spouse, but I sure am glad I stuck it out with this guy." Shelley Peterson "I knew that if you were that passionate and had that much drive you were going to do well. I had no doubt in my mind that you were going to kill it." Shelley Peterson "My faith, love, and commitment in Corey outweighed my insecurities." Shelley Peterson "When you start something new it takes an insane amount of time and focus." Corey Peterson "We're doing this and not making any apologies for what we are doing." Corey Peterson "Shelley has been my biggest cheerleader. I don't want to undervalue that because entrepreneurs need a supportive base at home." Corey Peterson Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.

Today's show is going to be a shorter more introspective episode about how life and people work. I was never good at memorizing information for school or homework, but I have always been really good at solving problems. I was the person in our home who hooked up the VCR and set everything up to record. I followed the instructions and figured things out. I feel like in life that is the thing that I have been able to do. When my kids come to me for help with things, I know that sometimes I have to step back and let them learn to solve their problems. How will they get good at problem solving without exercising that muscle? Today's show is about the power of solving problems. Topics on Today's Episode: How sometimes people stop learning after college. They stop doing things that invigorate their minds like reading books. When you come across something that you don't know how to do. Learn what it will take to learn how to do it. You don't need to be an expert in everything, but you need to know how to do a lot of things. The greatest gift I have is always being able to figure things out. People over complicate problems. Instead of stressing take it step-by-step. Don't get handicapped by thinking you can't do something. It's fine to still hire an expert, but you need some general knowledge. Use your brain and solve your problems. They don't need to be solved overnight. You can solve problems by just being curious and trying to figure things out. LIfe can be the most inspiring and fulfilling experience, but you need to put yourself in a position to rise higher. You can proclaim your greatness and have the cashflow life. Go out and be the best you that you can be. Links and Resources Mentioned: Free Workshop Quickstart Video Series Quotes: "There is something insanely simple and rewarding about solving problems. Solving problems is CEO quality work." Corey Peterson "CEOs take problems that seem insanely complicated and solve them by giving people the motivation to solve the puzzle." Corey Peterson "When you want to say you can't do it. I challenge you to say I can do it." Corey Peterson Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.

Today is going to be a fun episode because we talk about how to fund your deals. There are a lot of little pieces to the total funding package. I'm going to give you the juicy details of how it works and how to remember everything. We've talked about how to find deals and make offers. Now it is time to talk about how to get funding. We will go over where to get private funding, how much of it to use, the capital stack, and more. I am so excited about this because I love the cashflow life. When you start from nothing it is really exciting to become successful and have successful real estate deals. I also appreciate all of the new listeners and reviews. I have a fun episode coming up where my wife is going to join me and share a little about me. She has supported me, and this has been a partnership with her. She is my best friend and the upcoming episode will be real and authentic. Topics on Today's Episode: The capital stack is the total amount of money it takes to fund a deal. Example: 2 million dollar deal purchase price. Start underwriting with .75 That's a 75% loan-to-value rate. This depends on occupancy. The bank finances 1.5 million, so we still need $500,000 of private funding money. We borrow all it takes for the down payment, closing costs, inspection costs, legal costs, and capital expenditures or money to fix up the property. We borrow more than we are purchasing. It's our job to find all the right problems that are fixable and then fund it with all the money we need. Acquisition fee is 3 to 5%. It depends on how good a deal we found. 4% of a 2 million deal is $80,000. That is some fix and flip money. Investors want to get their money back with interest. Private money cost more than loans from the bank. Bank money is cheaper, so get as much as you can. Don't get discouraged when raising private money. Ask people about who they know because that takes the pressure away. Pencil a higher interest rate. If the deal still works at these numbers, it is still a deal. Don't fine tune the numbers until the deal is ready to close. Under promise and over deliver. This is a hidden art that most people don't do. Showing people better numbers makes them believe and trust in you and become raving fans. Always be conservative with your projections. I'm also creating software to that will show you how to structure a deal. Find a commercial mortgage broker. Never undervalue the benefit of asking for help. Get a referral to the right person and ask the hard questions. Keep expanding your network and be the conductor of your team. Links and Resources Mentioned: Quick Start Video Series Eric Stewart Mortgage Broker Steve Jobs Quotes: "I run my multi-million dollar business from my home, and I have kept it simple for a reason. I don't want to have to check in to the office." Corey Peterson "I am the conductor. I take all the pieces that I need to assemble my team and then make sure they are playing right." Corey Peterson "It's how you put the jigsaw puzzle together to find the solution." Corey Peterson Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.

Welcome to episode number six of the Multi Family Legacy podcast. Today, I am talking about believing in yourself. So often when we share our dreams with people, and they try to tell us all of the reasons why we can't achieve them. I want to tell you that you are worth it, and you can do whatever you put your mind to. Just keep in mind that people will let you down, so don't let them steal your dreams. Once you accept this, people can't hurt you with their words. Topics on Today's Episode: The power of being mindful of who you share your dreams and goals with. How family can say some of the meanest things, but once you understand why they are saying them those things won't be hurtful anymore. When you share your dreams and goal friends and family think they are supposed to be the voice of reason. They say these things to deter you so that you don't get hurt. Many times they are not qualified to give you business advice. They may be coming from a place of not knowing what they don't know. They may try to derail you because they don't want you to get hurt. Sometimes people don't want to see you get ahead of them and they try to water down your dreams. When I got into real estate full-tilt, I was very careful about who I opened up to about my dreams and goals. Be careful about sharing what is going on in your life with people. They might ruin you, but they don't mean to do it on purpose. My video Believe and the first time I felt doubt. I want you to shine and boldly proclaim what you are going to do to yourself. When you truly believe you can, that is when your life starts to change. Links and Resources Mentioned: Quickstart Video Series Quotes: "Imagine what life would be like if you didn't have to worry about money." Corey Peterson "When you understand why friends and family may say hurtful things, you can take their power away." Corey Peterson "If you want counsel, don't share your dreams and goals or ask advice from people who aren't qualified to answer." Corey Peterson Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.

Today, we are talking about offers and how to get your offer accepted by a broker. I would like to think I understand brokers, but I don't always. I do know what gets them excited, and it is money and commissions. What they are concerned with is if you have the ability to close and how much money they are going to make. If you want to have a deal that the broker will recommend to the seller, give the broker both sides of the commission. That means not using your realtor or your real estate license for half of the commission. I also talk about finding commonality and making relationships. You want to be friends with your broker by talking about something interesting other than real estate. Once you find that commonality take notes and keep in touch. I also talk about sending an LOI or letter of intent and what is included in it. Along with a sample LOI that I use. You want your LOI to be precise. I also talk about the importance of having a good management team in place with a solid credibility kit. I also talk about having your own credibility kit and having a proof of funds. After this episode, you should have a good understanding of how to get your offer accepted by a broker. Topics on Today's Episode: Giving a broker "double juice" or all of the commission Make friends with your broker by finding a commonality and taking notes The importance of building relationships and getting to know people You really want your broker to like you and consider you as a friend Creating an LOI or letter of intent LOI - Three page document that features who is buying, selling, price, inspection period, days to close after inspection, signature, and list of things wanted during due diligence phase. Finding a great management company with a credibility kit or bio on their abilities to do the job How momentum plays are usually solved by having good management on board Having good management in place usually matters to the seller Have your own credibility kit or show that you are successful at what you do with a 3 or 4 page document Having a proof of funds a screenshot of a bank account or a document with numbers Call the broker at 5:00 pm on friday and be the last guy to submit an LOI. "Hey, I'm looking for some pricing guidance." Play hot and cold to make it to best and final and find the correct range. Having friends is the key to the game $100,000 earnest money can lock up a 7 million dollar deal Links and Resources Mentioned: Quickstart Workshop LOI Document and Credibility Kit Quotes: "Give your broker some love. Give him all of the commission and don't hold it back." Corey Peterson "Make friends with your broker by talking about something other than real estate." Corey Peterson "Keeping track of all of the wonderful people you meet and how well you know them is one of the most important things in life." Corey Peterson Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.

Welcome to the multifamily apartments investing podcast, I am your host Corey Peterson. Today, we are talking about how to analyze deals. The key to a successful apartment deal is understanding how to make sense of the numbers. This is the third part of the six pillars of success series. You need to know when a deal is a good deal and with multifamily apartment investing it is all about the numbers. Putting the numbers into the right system will tell you when a deal is worthwhile or not. Having the right software will make the process a whole lot easier. I'm in the process of creating a Kahuna Underwriting Template. As of the time of this recording it is not available, but it will be soon. I'm taking all of the best of the things that I use and throwing out the things I don't like about the current systems I use. This is going to be a really great product. Today, I'm giving you a 50,000 foot level view of what makes a deal a deal. Starting with two types of deals the momentum play and a repositioning play. Keep in mind the ultimate goal in each one is always cash flow. Topics on Today's Episode: Momentum play or buying a deal that is already doing well, making it a bit better, and carrying on the momentum Micro positioning or improving the apartments a little bit with landscaping or other things These properties can cash flow the day you buy them and they provide safety Repositioning play or doing a very big rehab this can have lot's of turnover This requires lot's of cash, but can make a lot of money A repositioning play involves more risk An example of a momentum play deal with 80% leverage 80% leverage means getting a loan at 80% LTV and putting 20% down Property packet and the financial numbers What their numbers are - compared to what you think they should be Gross potential rents - total number of rents that you could collect Vacancy - percentage of units not rented - determine in dollar amount Total concessions like $100 off first month's rent Total rental income Other income - coin operated washers, vending machines, etc Residential utility bill backs or RUBs are income Total income - all of the income the property generates in a year Operating expenses - Salaries, advertising, maintenance, office admin, management fees, utilities, insurance, and taxes. Deduct operating expenses from the total income and you get net operating income or NOI Deduct your loan or debt service and reserve account from the NOI CFBT or Cash Flow Before Taxes - you want the biggest amount you can get going into your account Taking the time to vet a great property manager who has great systems in place Getting your feet wet with a nice solid momentum play Links and Resources Mentioned: Quickstart Workshop Quotes: "Cash flow is really what it is all about and what should drive you in all of your decision making in this process." Corey Peterson "The biggest expense you have on any property is the payroll of the people who work for your property." Corey Peterson "If utilities such as water are abnormally high, look at things like leaky toilets. They are literally throwing money down the drain." Corey Peterson Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.

Welcome to the multifamily apartments investing podcast, I am your host Corey Peterson. I have a great show lined up for episode 3. It's my goal for you to get excited about multifamily investing because the right deal can set you up for life. Last episode, I talked about the secret language of apartments. We discussed things like cap rates and buying for cash flow. In this episode, I'm talking about the secret to finding great apartment deals. This is the second part of my six pillars to apartment investing series. One method for finding properties is sending direct mail to apartment owners. This is effective for smaller units. Larger units of 100 plus units usually only sell through brokers. A plus of buying smaller units is not having a broker involved. There are also more options for creative finance when dealing directly with the owner. Broker relations are another way to find deals. This means establishing the markets that you like and getting to know the brokers that work in that area. They will send you deals in that market creating a nice pipeline. The best technique is to use both methods and understand how to properly analyze the deals that you find. We will be talking about analyzing deals in the next episode or the third part of the six pillar series. Today, we focus on the process of finding deals and having the right deal flow. Topics on Today's Episode: The direct mail route or sending letters straight to the owners of properties This route is very efficient for finding motivated sellers Having established relationships with broker in your market is another way to find deals Use ListSource to find properties in the MSA or area you are interested in Look for properties built between the 70s and 90s to find B and C properties Choose multifamily residential apartments for the type of property Send something in a colored envelope that looks like a handwritten card Use strong copy and a phone number for a call to action Set up a phone number for each market to appear local and track and record Import the calls to Podio for project management Getting information from an owner who calls such as a current rent roll Getting 3 months trailing P&L, but a 12 month is preferred How 1 person in 25 calls is usually motivated Determine your market to target brokers in your area Use LoopNet to find the brokers in my market Choose at least 50 units for larger units Call the broker and be confident You can make practice broker calls in a market that is not your target market You are a looking for a value add opportunity with a big upside, or a momentum play Build rapport with the broker. What do you do for fun? Put it in your notes. Forward thinking upgrades like updated plugins with USB charger ports To build relationships you need to know about their family and likes Links and Resources Mentioned: Quickstart Workshop ListSource CallRail Podio LoopNet Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.

If you are here listening to this podcast, you are probably tired of flipping properties each and every month. I am so excited that you are here, and I am so excited to help you think a little bit bigger and focus on multifamily apartment buildings. For me, the shift came when I asked, "how can I own apartment buildings?" I am here to help you make that mindset shift that will help you to think bigger and to invest bigger. I'm also going to be sharing a lot of secret techniques with you. In the last episode, I talked about the big picture, I shared my story, and we talked about why you should invest in apartments and the three ways to get paid when investing in apartments. The first episodes of these podcasts are going to be pillar podcasts. There are really six secret pillars for cash flowing apartments. In future episodes, I'll be talking about the secrets of finding apartment deals, analyzing apartment deals to make money, making offers, funding deals, and how to become a great operator. Today, I am going to talk about discovering the secret language of apartments. Topics on Today's Episode: The six secret pillars for cash flowing apartments ABCs of buildings and grading apartments Newer apartments with a lot of amenities are developer and REIT games Properties built in the 80s and 90s are B properties C properties built in the late 60s and 70s - no washer dryer hookups D properties are the war zone, where you don't want to go at night Making money with B and C properties and doing discovery to find them Areas are graded A, B, C and D or the war zone areas Market cycles and being mindful of current cycles Apartments are based on cash - flow not appreciation Looking for the best opportunity to make good money and finding emerging markets Buying and holding for 3 to 5 years or forever and selling at the peak of the market Capitalization rate and buying at a high cap rate Managing expenses and having consistent income Looking for deals at a good return, making improvements, and making value Links and Resources Mentioned: Free Quickstart Workshop Don't forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.

Welcome to the multifamily apartments investing podcast, I am your host Corey Peterson. I am so excited to launch this podcast because it is going to do amazing things for people. I believe that what we do is done for sunsets and palm trees. We want to create the life we dream of, and we do that through apartments and cash flow. This podcast is for anyone who is tired of doing single family flips and doing it each and every year. The power of cash flow and the vehicle of apartment investing has changed my life radically. Being in the apartment industry has been a great and inspiring journey. I just want you to know that you can buy these amazing assets and create a wealth like you have never known. Before I get into the main episode, go download my free video series that shows you how to get started in apartment investing using other people's money. Today, I am going to share who I am and what my story is. First off, I am a country boy at heart who grew up in West Plains, Missouri. I grew up on a farm, and I am quite proud of that upbringing because it made me the man and the investor that I am today. Out of High School I didn't have any direction. I also didn't have a degree, so I became a car salesman. I learned a lot about selling, but my future wife didn't want to marry a car salesman. I called in all of the favors I could and ended up becoming a restaurant manager. I then dabbled in restaurant sales. Before I got married, my mom invited me and my fiance to Hawaii. The trip was beautiful, amazing, and eye opening. Bruce, my stepdad, had a magical house in Hawaii. His house was on a cove that had a freshwater stream running into the ocean. He had the house, the cars, and the life. When I asked him what he did he said real estate. This was the beginning of my lifelong love of the potential and power of real estate investing. Topics on Today's Episode: How I grew up in the Ozarks like the ones in Deliverance The 5 years that I spent selling cars really taught me how to sell and communicate How I went from selling stuff to managing stuff and what I learned in the process A trip to Hawaii had a profound effect on my future and opened my eyes to the power of real estate Bruce was a real estate investor in multifamily properties with cash flow Starting with the dream as my goal and opening Kahuna Investments Being a financial advisor for Edward Jones and my commitment story How the best time to jump into real estate is at the bottom Wrestling with the man in the mirror The high stakes for the level of commitment I made Searching for a real life mentor and taking massive action Meeting Bob Norton by accident and wholesaling Finding OPM other people's money Letting investors self select and asking who they know How private money opened the opportunity for multiple deals Funding my first apartment deal that I still own today How there are multiple ways to get paid with apartments Links and Resources Mentioned: Free Workshop Quickstart Video Series Rich Dad Poor Dad Bob Norton The Secret