The Multifamily Wealth Podcast

In this episode of the Multifamily Wealth Podcast, I discuss the two different types of investors in the multifamily business: decimal investors and deal investors. Decimal investors are those who primarily focus on analyzing deals through Excel sheets and lack experience in evaluating properties on-site. They struggle with understanding factors like location, building structure, and desirable floor plans. On the other hand, deal investors have a more holistic approach to investing, considering factors beyond just numbers. I also talk about the importance of being a deal investor and provide insights on how to achieve success in real estate investment.In this episode we discuss:How do decimal investors differ from deal investors?What activities do decimal investors focus on?What activities do deal investors prioritize?How do deal investors find better deals?Why is being a deal investor more advantageous in real estate investing?Struggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.Connect with Axel:Follow him on InstagramConnect with him on LinkedInSubscribe to our YouTube channelLearn more about Aligned Real Estate Partners

In this episode of the Multifamily Wealth Podcast, we welcome back Paul Moore of Wellings Capital. With over 20 years of experience in real estate, Paul has a diverse background that includes residential and commercial investments, as well as ventures in oil and gas. He is the author of "The Perfect Investment" and has a deep understanding of the multifamily syndication space.In this episode, Paul and Axel dive into the topic of preferred equity, a hot topic in the multifamily and commercial real estate sectors. They discuss the different types of preferred equity, including its use in development, value-add deals, refinancing, and as rescue capital. Paul explains the benefits of investing in preferred equity, such as immediate cash flow, future upside, and lower downside risk exposure. He also shares insights on what to look for in a preferred equity investment and the importance of partnering with experienced operators.In this episode we discuss:What is preferred equity and why is it a hot topic in the multifamily and commercial real estate sectors?How does preferred equity differ from preferred returns or preferred hurdle rates?What are the different types of preferred equity investments, such as development, value-add acquisitions, refinancing, and rescue capital?What are the benefits of investing in preferred equity for LPs, including immediate cash flow, future upside, and lower downside risk exposure?How can preferred equity help operators reduce their blended cost of capital and capture more of the upside in a deal?What attributes does Wellings Capital look for in preferred equity deals, such as experienced operators, reasonable underwriting, and clean backgrounds?What are some signs that a preferred equity deal may not be a good investment, such as red flags in the operator's background, changing deal terms, or lack of a cohesive team?Struggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.Connect with Axel:Follow him on InstagramConnect with him on LinkedInSubscribe to our YouTube channelLearn more about Aligned Real Estate PartnersConnect with Paul:Follow him on TwitterLearn more about Wellings CapitalHelp us fight human trafficking with AIM

The podcast dives deep into the crucial underwriting metric of stabilized yield on cost in multifamily real estate deals. It explains its significance, how it differs from other metrics like cash on cash return and IRR, and how it helps determine the strength and value of a deal in today's market. The episode emphasizes the metric's importance for screening deals and suggests moving away from relying solely on deal IRRs.

In this episode of the Multifamily Wealth Podcast, I delve into the true mathematical impact that vacancy has on a multifamily property's net free cash flow. Join us as we break down the numbers and discuss how even a small increase in vacancy can have a significant impact on your bottom line. I dive deep into the numbers and explain how vacancy can significantly affect your investment portfolio. We often overlook the impact of vacancy, but once you understand the math behind it, you'll see just how crucial it is to consider when analyzing your investments.In this episode we discuss:What is the true impact of vacancy on a multifamily property's net free cash flow?How does reducing vacancy by 2% affect net operating income (NOI)?How does leverage and debt service payments magnify the impact of vacancy on net free cash flow?What is the rule of thumb for the potential impact of a 1% increase or decrease in vacancy on net free cash flow?Why is it important for multifamily investors to understand the mathematical impact of vacancy?Struggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.Connect with Axel:Follow him on InstagramConnect with him on LinkedInLearn more about Aligned Real Estate Partners

In this episode of the Multifamily Wealth Podcast, I dive into a topic that is often overlooked when it comes to real estate investing - transactional costs. You see, when buying and selling properties, there are a lot of hidden costs involved that can significantly impact your returns. Whether you're an investor or a homeowner, understanding these costs is crucial. I break down the math and explain why it's essential to consider the impact of buying and selling on your equity beyond just the percentage of a property's purchase price. I know this topic may not be commonly discussed on other platforms, but I believe it's vital for anyone considering buying or selling a property. The episode is packed with valuable insights and practical advice that you won't want to miss.In this episode, we discuss:How can transactional costs impact an investor's or homeowner's returns when buying and selling a property?What percentage of a property's purchase price do closing costs typically represent?How do closing costs affect the equity invested in a property, especially when using debt?How does leverage magnify the impact of transactional costs on equity?Why is it important to accurately underwrite transactional costs before buying a property? Struggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.Connect with Axel:Follow him on InstagramConnect with him on LinkedInLearn more about Aligned Real Estate Partners

In this episode of the Multifamily Wealth Podcast, we are joined by Moshe Crane, the VP of Branding and Strategic Initiatives at Sage Ventures. With over 4,300 units in their portfolio, Sage Ventures is a Maryland-based owner-operator of multifamily properties in the Mid-Atlantic region. Moshe started in the leasing department and worked his way up, gaining extensive experience in all aspects of operating their massive portfolio.During our conversation, Moshe shares insights into multifamily operations and leasing strategies. We discuss the importance of having a good system for setting rents, the value of focusing on tenant retention, and the financial considerations of renewing tenants at lower rents. Moshe also emphasizes the significance of on-site presence and the role of personal interactions in the leasing process. Overall, this episode provides valuable insights for active multifamily operators and investors looking to optimize their operations and increase tenant retention.In this episode we discuss:How has Moshe Crane's experience in multifamily operations at Sage Ventures shaped his perspective on leasing and strategic initiatives?What are the key differences between operating institutional assets and sub-institutional real estate in terms of leasing and operations?How does Sage Ventures set rents for their units and what factors do they consider in the process?What is the importance of prioritizing renewals in the current multifamily market and how does Sage Ventures approach this?How does Sage Ventures use data and scoring systems to drive renewals and make informed decisions about lease expirations?What strategies does Sage Ventures employ to align lease expirations with market demand and optimize occupancy rates?How has the leasing landscape changed in the past year and what role does automation and self-guided tours play in the industry?Struggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.Connect with Axel:Follow him on InstagramConnect with him on LinkedInLearn more about Aligned Real Estate PartnersConnect with Moshe:Follow him on LinkedInLearn more about The Curious Wire Podcast

In this episode, I dive into why now is a great time to start sharing your story and developing awareness of you and your investment criteria. I discuss how this can make finding deals and partners so much easier in the long run. It's all about building that top-of-mind presence in your market.I know many of you have been on the fence about sharing your story online, and I wanted to provide some motivation and encouragement to take that leap. Whether it's through email marketing, hosting meetups, or engaging on social media, there are so many avenues to start building awareness around what you're doing.In this episode we discuss:Why is now a great time to start telling your story online and building authority around yourself and your business?How does building awareness of yourself and your business make it easier to find deals and partners?What are some effective ways to start telling your story and building awareness?Why is it important to start building awareness now, when transaction volume is low and deals are harder to find?How can building awareness now help you capture deal flow and be in a better position to raise capital when deals become more frequent?Struggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities. Connect with Axel:Follow him on InstagramConnect with him on LinkedInLearn more about Aligned Real Estate Partners

The podcast discusses the fear people have when taking risks in business or investments. It emphasizes the importance of considering the potential upside and using fear setting to make decisions. The episode explores analyzing risks and overcoming fears, and highlights the benefits of taking risks in investing and increasing earning capacity.

In this episode, I dive into the telltale sign that an investor just doesn't "get it" when it comes to understanding the big picture and where value comes from in the real estate business. It's a topic that I'm really passionate about, and I've had multiple conversations recently that have inspired me to address it head-on. I discuss the importance of having an open mind and constantly seeking improvement in your mindset. I also touch on the dangers of approaching the business with a short-term mindset when it comes to negotiating and structuring business relationships. It's a mindset that never seems to work out as well as those who take a long-term approach.In this episode we discuss:What is the telltale sign that an investor doesn't understand the big picture and value in the real estate business?How does negotiating with a short-term mindset hinder long-term success in real estate investing?The importance of building collaborative partnerships and maintaining healthy relationships in the real estate industryThe long-term perspective in real estate investing and the importance of focusing on career-wide success rather than individual dealsThe significance of being well-liked, respected, and the go-to person in the industry for brokers, property managers, attorneys, and other investorsStruggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.Connect with Axel:Follow him on InstagramConnect with him on LinkedInLearn more about Aligned Real Estate Partners

In this episode of the Multifamily Wealth Podcast, we discuss why buying multifamily real estate based on actual numbers is often not realistic. I explain that while many investors claim to buy on actuals, it rarely happens in practice. I also shared some mathematical examples to support this argument and highlighted a hypothetical scenario of a vacant 20-unit multifamily property with zero income. In this episode we discuss:The meaning of “buying on actuals” in real estate worldWhy buying multifamily real estate based on actual numbers, such as income and expenses, is not a common practiceWhy buying on actuals is unlikely to result in successful dealsWhy you need to focus on “value-add” multifamily dealsThe importance of considering the future potential of multifamily properties when determining their purchase priceStruggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.Connect with Axel:Follow him on InstagramConnect with him on LinkedInLearn more about Aligned Real Estate Partners