Financial Freedom with Real Estate Investing MB309: How to LAUNCH a Syndication Business – With Jonathan & Paula Nichols
In aerospace engineering, ‘escape velocity’ is the amount of power a rocket needs to break free of the Earth’s gravitational field. And if you ask Jonathan and Paula Nichols, launching a real estate syndication business is no different.
It takes a tremendous amount of effort up front to do your first deal. You have to commit to the outcome and do whatever it takes to persevere through setbacks and disappointment. But once you’ve picked up momentum and closed on your first apartment building, the next deals follow in quick, almost automatic succession.
Jonathan and Paula are the cofounders of Apogee Capital, a multifamily firm dedicated to helping investors reach their financial potential. The Nichols closed on three deals in the last year, raising $2.7M as they built a portfolio of 200 units, and Jonathan quit his job as an aerospace engineer six weeks ago to pursue real estate full time.
On this episode of Financial Freedom with Real Estate Investing, Jonathan and Paula join cohost Garrett Lynch and me to discuss the sacrifices they made to make time for real estate while they both worked full-time corporate jobs.
Jonathan and Paula walk us through the steps they took to get started in multifamily syndication, describing how they got on the same page as a couple and started networking with potential partners.
Listen in for insight on reframing a lost deal as a learning opportunity and learn how to stay the course in tough times and keep taking action—until YOUR investing business takes off!
Key TakeawaysHow Jonathan and Paula got into real estate
- Rich Dad... inspired to lease first home, buy fourplex
- Realized multifamily was only way to scale
How real estate evolved into a business for the Nichols
- Started as way to diversify investments
- Saw unlimited possibilities once they gained traction
How Jonathan and Paula got on the same page
- Both wanted to build legacy
- Saw real estate as potential family business
The steps Jonathan and Paula took to get started investing
- Dreaming about financial freedom
- Getting educated (mentorship program)
- Networking to shift mindset
- Taking consistent action to build confidence
How Jonathan and Paula made time for real estate
- Say no to fun activities on nights and weekends
- Make sacrifices to reach ‘escape velocity’
Jonathan and Paula’s first multifamily deal
- Co-GPs on 100-unit deal in Tulsa, Oklahoma
- Brought in as boots on ground in market
How Jonathan and Paula met their partners
- Develop relationship through networking events
- Brought them deal that didn’t work out
Jonathan and Paula’s big setback 5 months ago
- Actual financial records didn’t match originals
- Discouraging but consider it learning opportunity
How Jonathan and Paula raised $700K for their first deal
- Saw value in being flexible enough to learn new skills
- Leveraged relationships from W-2 jobs, real estate
What’s ahead for Jonathan and Paula in the next 2 years
- Actively looking for new deals, talking to investors
- Executing on business plan of existing deals
Jonathan and Paula’s plan to scale
- Network with potential partners
- Outsource and automate parts of business
- Increase capacity to do larger deals
Jonathan and Paula’s advice for aspiring investors
- Take consistent action on daily basis
- Don’t get discouraged in tough times
- Dream BIG and don’t limit yourself
Connect with Jonathan & Paula Nichols Resources
Get Tickets for Deal Maker Live
Buy Michael’s Syndicated Deal Analyzer
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Access Michael’s Free Resources in the Freedom Vault
Financial Freedom with Real Estate Investing by Michael Blank
National Real Estate Investors Association
Suzy Sevier & Michael Barnhart on Financial Freedom with Real Estate Investing EP260
Dream Big: Know What You Want, Why You Want It, and What You’re Going to Do About It by Bob Goff