Financial Freedom with Real Estate Investing MB276: Add a Zero to Your Next Capital Raise – With Jonathan Barr
So, you want to go for bigger deals, but your current network is pretty much tapped out. Maybe you struggled to raise $500K for your last deal, and you’d like to add a zero for the next one. How do you attract new investors and scale your capital raise?
Jonathan Barr is the Cofounder and Principal at JB2 Investments, a real estate investment firm specializing in 70-plus-unit value-add projects in high cashflow, landlord-friendly markets. Jonathan began his real estate career in 2009, facilitating the acquisition of 400 residential flips in the LA market that generated $22M in profit for his family’s business.
On this episode of Financial Freedom with Real Estate Investing, Jonathan joins me to explain what inspired him to invest outside the LA market, sharing the mental blocks he had to overcome to buy properties in the Midwest. Jonathan walks us through his first multifamily deal in Oklahoma City, discussing why he had a hard time raising money for it and how he built an online platform to solve that problem. Listen in for Jonathan’s insight on using Twitter to attract new investors and learn how to scale YOUR ability to raise capital through content creation!
Key TakeawaysHow Jonathan got involved in real estate
- Grew up in real estate family in LA
- Join flip, development business
The pros and cons of working in a family business
- Feel ultimate support and trust
- Hierarchy of parent-child relationship
What Jonathan learned in SFH acquisitions that translates to multifamily
- Conduct due diligence, use checklists to mitigate mistakes
- Discuss deals with team and bounce ideas
What inspired Jonathan to invest outside the LA market
- Buy-and-hold duplexes in LA only making 3% in equity
- Potential to triple cashflow by moving money to KC
Jonathan’s mental block around investing out of the LA market
- Unable to drive to properties and manage himself
- Hard to feel comfortable delegating responsibility
Why Jonathan made the shift to multifamily
- Margins on flips low, always chasing next deal
- Apartment buildings much more tax efficient
Why Jonathan joined our mentoring program last year
- Left family business in January 2020
- Used to having parents as mentors
Jonathan’s first multifamily deal
- Closed on 72-unit property in OKC in September
- Cut expenses by 25%, beating projections by 30%
Why Jonathan had a hard time raising money for his first deal
- First deal in OKC market (no track record there)
- Uncertainty of pandemic
How Jonathan built an online platform to raise capital
- Offer free eBook to build email list
- Post content daily on Twitter
Jonathan’s take on why content creation is so important
- Gives potential investors insight into business
- Shows thoughtful and thorough, builds trust
Jonathan’s insight on how to create content
- Get ideas from questions you get, other podcasts
- Block off time to write multiple posts at once
Jonathan’s advice for syndicators who are tapped out on capital
- Post video or blog every week
- Focus energy on single social platform
Connect with Jonathan Barr Resources
Register for Michael’s Platform Builders Masterclass
Learn More About Michael’s Mentoring Program
Enter the Financial Freedom Podcast Launch Contest
The Tax Stack Strategy: The Magic of Paying Less Tax Using Real Estate by Jonathan Barr