632: The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly w/Jake and Gino

Jul 7, 2022

Delve into the unique world of multifamily investing and discover why it's a savvy choice during economic downturns. Hear Jake and Gino discuss their impressive journey from humble beginnings to managing $175M in properties. Learn about developing your investment criteria, understanding market cycles, and the importance of strong partnerships. The duo emphasizes building wealth through smart strategies, accountability, and embracing action. They share personal success stories and insights to help aspiring investors navigate the real estate landscape.

01:18:41

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ADVICE

Start Now, Pick a Niche

Start investing now, regardless of market conditions, to build relationships and refine your plan.
Pick a niche, understand your "why," and take consistent action for results.

insights

INSIGHT

Syndication's Drawbacks

Syndication may incentivize selling, which can be detrimental when good deals are hard to find.
Building internal cash flow and a vertically integrated team offers more control and long-term wealth.

volunteer_activism

ADVICE

Invest Employees

Align employee interests by allowing them to invest in deals.
This fosters ownership, improves performance, and aids retention.

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Navigating Real Estate Investments and Market Strategies

01:41 • 3min

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Strategies for Multifamily Growth

05:10 • 13min

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The Foundations of Real Estate Investment Success

18:01 • 20min

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Embracing Action in Real Estate Investment

38:23 • 4min

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Building a Profitable Rental Portfolio

42:07 • 22min

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Maximizing ROI and Cultivating Business Systems in Real Estate

01:04:05 • 3min

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Transformative Reads and Personal Hobbies

01:07:27 • 3min

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The Mindset for Real Estate Success: Accountability and Clarity

01:10:22 • 4min

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Wrapping Up with Gratitude and Humor

01:14:47 • 4min

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Small Giants

Companies That Choose to Be Great Instead of Big

Bo Burlingham

In 'Small Giants', Bo Burlingham explores companies that have rejected the pressure to grow endlessly and instead focus on more satisfying business goals. These companies, termed 'small giants', prioritize being great at what they do, creating a great place to work, providing excellent customer service, making significant contributions to their communities, and finding fulfilling ways to lead their lives. The book highlights examples such as Anchor Brewing, Righteous Babe Records, and Clif Bar Inc., and discusses the benefits and challenges of maintaining a smaller, more personalized business approach.

Scaling Up

How a Few Companies Make It… and Why the Rest Don’t

Verne Harnish

This book, written by Verne Harnish, provides a comprehensive framework for scaling businesses. It focuses on the four major decision areas every company must get right: People, Strategy, Execution, and Cash. The book includes the updated One-Page Strategic Plan and the Rockefeller Habits Checklist, which have been used by over 40,000 firms to scale successfully. Harnish draws on decades of experience advising CEOs and executives, emphasizing the importance of routines, effective meetings, and clear communication to drive business growth and maintain organizational health.

The 7 Habits of Highly Effective People

Stephen R Covey

This book, first published in 1989, outlines seven habits that are designed to help individuals become more effective in their personal and professional lives. The habits are grouped into three categories: Private Victory (habits 1-3), Public Victory (habits 4-6), and Renewal (habit 7). The habits include being proactive, beginning with the end in mind, putting first things first, thinking win-win, seeking first to understand and then to be understood, synergizing, and sharpening the saw. Covey emphasizes the importance of personal integrity, effective time management, empathetic communication, and continuous self-improvement.

The Honey Bee

A Business Parable About Getting Un-Stuck & Taking Control of your Financial Future

Jake and Gino

The Honey Bee tells the story of Noah, a disaffected salesman who learns from a beekeeper named Tom Barnham how to grow his personal wealth. The book combines engaging storytelling with actionable advice for entrepreneurs, including workbook-style sections and digital resources.

Wheelbarrow Profits

Jake Stenziano,Gino Barbaro

Wheelbarrow Profits provides a comprehensive framework for investing in multifamily properties, focusing on the three key steps of buying right, financing right, and managing right. The book offers insights into leveraging multifamily real estate to achieve financial independence and build wealth. It is designed for both new and seasoned investors looking to expand their investment portfolios.

Multifamily investing is a bit different than other types of residential real estate investing. When the economy begins to shift, and a recession is looming, multifamily real estate tends to drop in price. But, at the same time, more renters need a place to stay, or more importantly, an affordable place to stay, making multifamily apartments their go-to option. If apartment investing has ever interested you before, Jake Stenziano and Gino Barbaro make a strong argument why now may be the perfect time to get into the industry.

If you’re feeling deja vu, don’t worry, Jake and Gino have been on the BiggerPockets Podcast multiple times before. Each time they come on they bring new lessons, new deals, and a lot more units under their belt. Only a decade or so ago, Jake and Gino were busting their humps working at jobs and businesses that didn’t fulfill them. It took them a year and a half to buy their first deal, and now, they’re sitting on $175M worth of multifamily. That’s quite a lot of deals in just a decade.

Jake and Gino drop some gems in this episode, specifically on why 2022 may be a smart time to start investing, how to develop your “buy right” criteria, and preparing your exit strategies so you can build wealth, not just get rich once. They’ve learned a lot of multifamily investing lessons the hard way, so next time you’re presented with a killer deal, you don’t have to double down on their mistakes.

In This Episode We Cover:

Why you DON’T need to raise outside money to tackle big multifamily deals

How to hire the right people and get employees invested in your properties (literally)

The “buy right” framework and three pillars of real estate that every investor must understand

Why exit strategies are the most crucial part of investing and how to define yours

Managing properties the right way and how good property management can make or break a deal

The “conveyor belt” acquisition system that will fly deals your way (even when you’re not working)

And So Much More!

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