Financial Freedom with Real Estate Investing

If you finance a multifamily syndication through Fannie Mae or Freddie Mac, you’re securing non-recourse debt with a fixed interest rate. But if you want to exit anytime sooner than the loan expiration date, you're going to pay a BIG penalty on the back end. So, how might we leverage credit unions to avoid these big-ticket prepayment penalties? Are there other benefits to financing real estate deals through a credit union? What’s the downside? Mark Ritter is CEO of Member Business Financial Services or MBFS, a business lending credit service organization owned by credit unions for credit unions and their members. An expert in credit unions and business lending, Mark is dedicated to helping commercial real estate investors secure the financing they need. On this episode of Financial Freedom with Real Estate Investing, Mark joins cohost Garrett Lynch and me to explore the pros and cons of financing multifamily through a credit union versus traditional loans. Mark describes the credit union philosophy of people helping people, discussing how real estate investors benefit from having a personal relationship with our lender. Listen in for Mark’s advice on how to approach a credit union for a loan and learn about the flexible terms and low cost of capital available if you finance your next deal through an organization like MBFS! For full episode show notes visit: http://www.themichaelblank.com/session316/

A career as a professional athlete is exciting, and if you’re among the best, you can make a lot of money in a short amount of time. But what do you do when your career is over? Dan Brisse was a professional snowboarder for over a decade, participating in the X Games four times and winning gold twice. But he noticed that older pros were suffering as their careers wound down, struggling financially and in their personal lives. And that inspired Dan to make his money work for him with multifamily real estate. Today, Dan is the cofounder of Granite Towers Equity Group, cohost of the Keeping It Real Estate Podcast and coauthor of 4 Steps to Successful Passive Investing. He and his partner, Mike, are GPs in 1,414 units worth $74M across five states, and he owns another 589 units as a passive investor. On this episode of Financial Freedom with Real Estate Investing, Dan joins cohost Garrett Lynch and me to discuss his transition from snowboarding to real estate and describe the steps he took to become a multifamily investor. Dan explains how his investing strategy has evolved over time, encouraging us to seek out a high-level mentor early on and avoid shiny object syndrome. Listen in for insight around the values alignment that makes Dan and Mike’s partnership work and learn how to make the leap from YOUR current career to full-time real estate investing. For full episode show notes visit: http://www.themichaelblank.com/session315/

Why do you do what you do? Articulating the WHY behind your work gives it meaning. And makes for a richer, more fulfilling life.  But how do you uncover your purpose and then apply it each day?  Lee Prosenjak is a serial entrepreneur and executive coach at LynchPyn. He's worked with thousands of entrepreneurs in 30-plus countries, cultivating cohesive work groups and facilitating conversations that truly matter.  An artist at heart, Lee is also the Cofounder of Cherry Creek Dance, former Igniter at Simon Sinek Consulting and current real estate investor on a mission to help others discover their own inspiration, love and greatness. On this episode of Financial Freedom with Real Estate Investing, Lee joins host Garrett Lynch to discuss his WHY and describe how clarity of purpose leads to better decision-making. Lee explores the relationship between purpose and identity, sharing the experience that inspired him to play BIGGER and expand his influence beyond Cherry Creek Dance. Listen in for Lee’s insight around being open to new opportunities and find out how he is living his purpose as the owner of a boutique hotel in the Bahamas! For full episode show notes visit: http://www.themichaelblank.com/session314/

Imagine earning cash-on-cash returns as high as 50%!  Inspired by sophisticated real estate investors in her network, Steffany Boldrini moved her money out of tech startups and into commercial properties three years ago. And while she’s faced a lot of challenges along the way, Steffany reached financial freedom in less than two years. So, what is Steffany’s approach to investing in real estate? And what does she do to earn such big-time returns? Steffany moved from Brazil to Silicon Valley 20 years ago and enjoyed a successful career in tech sales before shifting her focus to commercial real estate. As Principal at Monte Carlo Real Estate Investments, she has built a portfolio across three asset classes, achieving 36% cash-on-cash returns.  Steffany is also the host of Commercial Real Estate Investing from A-Z, a podcast about investing in retail, office, industrial and self-storage properties. On this episode of Financial Freedom with Real Estate Investing, Steffany joins host Garrett Lynch to discuss her transition from angel investing to real estate, describing why she likes the risk profile of commercial properties over tech startups.  Steffany shares her approach to building a commercial real estate portfolio, explaining the pros and cons of investing in car washes, self-storage and short-term rentals.  Listen in to understand how Steffany leverages technology in her real estate business and get ideas for adding value to force appreciation—in any commercial asset class. For full episode show notes visit: http://www.themichaelblank.com/session313/

When you work a traditional job, your ability to feed your family can be taken away from you at any moment. And your worth is determined by your employer.  But what if YOU can determine your own worth? What if you can earn enough passive income from real estate to walk away from your J-O-B and be your own boss?  Dustin Heiner is the creator of Master Passive Income, a platform and podcast where he shares insights on investing in real estate rental properties.  Getting laid off from his 9-to-5 inspired Dustin to pursue investing, and by 2016, Dustin had built a portfolio of 30 properties and quit his job in IT, becoming what he calls 'successfully unemployed.'  On this episode of Financial Freedom with Real Estate Investing, Dustin joins Garrett Lynch and me to discuss what he loves about passive income and share some of the mistakes he made with his first few investments.  Dustin explains why it's important to build your business first, challenging you to look for markets with good inventory and put a team in place BEFORE you buy properties.  Listen in for Dustin's insight on leveraging real estate to leave a legacy and find out how a mentor can support YOU in becoming successfully unemployed—like Dustin! For full episode show notes visit: http://www.themichaelblank.com/session312/

Are you confused by cryptocurrency, the blockchain or NFTs?  As real estate investors, we’re all about wealth creation and owning physical assets as a hedge against inflation. But what about digital assets? Is it worth investing in cryptocurrencies like Bitcoin? What is blockchain technology all about? And how can it change the world for the better? Matthew Diemer is a small business entrepreneur and host of the Decrypt Daily Podcast. Prior to Decrypt Daily, he founded Crypto 101 and held the titles of COO and GM in the global hospitality industry. Matthew is also a Democrat running for Congress in Northeast Ohio dedicated to supporting entrepreneurship, promoting tech innovation and reviving manufacturing in the US. On this episode of Financial Freedom with Real Estate Investing, Matthew joins host Garrett Lynch and me to discuss the benefits of blockchain technology, describing what makes crypto a good investment vehicle and why Bitcoin is a strong hedge against inflation. Matthew explains how crypto allows us to control our own wealth and what we can do to keep our digital currency outside government control. Listen in for Matthew’s insight into buying digital real estate and learn how the blockchain can be used to create wealth by tokenizing properties. For full episode show notes visit: http://www.themichaelblank.com/session311/

Most entrepreneurs believe that we are the secret sauce in our business. We think that no one else can bake the cupcakes or design the websites or analyze the real estate deals quite the way we do.  But if you’re busy building the product, who’s building the business?  This is what Curtis Morley calls the entrepreneur’s paradox: In order to scale, you've got to shift your passion from working IN the business to working ON the business. Curtis is the five-time entrepreneur, mentor and thought leader behind The Entrepreneur’s Paradox, a platform dedicated to helping startup companies achieve next-level growth. Curtis has been named Entrepreneur of the Year and made the Inc. 5000 list six times. He is also the bestselling author of The Entrepreneur’s Paradox: How to Overcome the 16 Pitfalls Along the Startup Journey. On this episode of Financial Freedom with Real Estate Investing, Curtis joins host Garrett Lynch to explain the entrepreneur’s paradox, challenging us to shift from the role of product manager to business leader and achieve the next level of growth. Curtis shares his concept of counterfeit emotions, describing how to turn fear into power with a simple shift from WHAT IF to WHAT IS thinking. Listen in for Curtis’ four-step success formula for entrepreneurs and learn how to make the mindset shift you need to scale YOUR real estate syndication business. Key Takeaways  How Curtis defines the entrepreneur’s paradox What got you into business prevents you from succeeding ‘If you’re building the product, who’s building the business?’ The first steps to becoming a business leader Make decision to replace yourself as product manager Identify and document your processes, teach to others Curtis’ 3 summits you can climb as an entrepreneur Lifestyle business Buy or be bought IPO Curtis’ 4-step success formula for entrepreneurs How much By when For what And why Curtis’ advice for deciding what’s next after an exit Stay committed to your WHY Must have purpose, make contribution Curtis’ concept of counterfeit emotions Every authentic emotion has counterfeit (e.g.: faith vs. fear) Authentic emotions connect, while counterfeit disconnect How to transform your FEAR into POWER Change WHAT IF into WHAT IS Brings you back to present and creates energy How Curtis uncovered the idea of counterfeit emotions Pain = gift to help us grow, suffering steeped in blame/shame Surrender to pain and turn it into something positive Connect with Curtis Morley The Entrepreneur’s Paradox Resources Learn More About Michael’s Mentoring Program Join the Nighthawk Equity Investor Club Access Michael’s Free Resources in the Freedom Vault  Review the Podcast on iTunes Financial Freedom with Real Estate Investing by Michael Blank  The Entrepreneur’s Paradox: How to Overcome the 16 Pitfalls Along the Startup Journey (Keys to Success for a Startup Company) by Curtis Morley  Summit on the Summit  Simon Sinek Richard Bass Michael on Facebook  Michael on Instagram  Michael on YouTube  Michael on TikTok Apartment Investor Network Facebook Group  Podcast Show Notes

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 Takeaways  How 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 Apogee Capital  Jonathan on LinkedIn 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  Review the Podcast on iTunes Financial Freedom with Real Estate Investing by Michael Blank  National Real Estate Investors Association Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki 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 Michael on Facebook  Michael on Instagram  Michael on YouTube  Michael on TikTok Apartment Investor Network Facebook Group  Podcast Show Notes

Multifamily real estate is a big game. And if you want to scale quickly, you can’t do it alone. That’s how Patrick Grimes went from 0 to 1,200-plus units in under two years.  He partnered with a senior operator to go further faster, leveraging his partner’s expertise to build a $250M portfolio in a very short time. But how did he get an experienced investor to invite him into a deal?  Patrick is the Founder and CEO of Invest on Main Street and contributor to the #1 Amazon bestseller Persistence, Pivots and Game Changers: Turning Challenges Into Opportunities. Patrick also runs Protomation Systems, a consulting business that contracts with machine design firms to conceptualize, design and build custom manufacturing automation and robotic systems.  On this episode of Financial Freedom with Real Estate Investing, Patrick joins cohost Garrett Lynch and me to explain how he brought value to an experienced operator to get into his first multifamily deal. Patrick shares his experience with the Law of the First Deal, describing how his role on the team shifted as his portfolio grew. Listen in for Patrick’s insight on mitigating the risks of multifamily investing and find out why partnering up is the best way to scale your business and get on the fast track to financial freedom! Key Takeaways  How Patrick got into real estate investing First employer suggested keeping money in real estate Looking for investment vehicle other than stock market How Patrick’s investing strategy changed after 2008 Focus shifted to legacy and improving quality of life Scale with multifamily, partner to accelerate growth How Patrick got his wife involved in real estate investing Invited to do Michael’s Ultimate Guide... course Now she creates passive investor educational content The steps Patrick took to get his first multifamily deal Underwrite and bring live deals to senior operator Network and build relationships with brokers How Patrick justifies the risk associated with multifamily Right team in place and experienced partners Low-leveraged debt in less volatile markets Patrick’s pivot away from deal finder into other roles Drawn into existing deal by senior operator Add value through due diligence, operations, etc. Patrick’s experience with the Law of the First Deal Started raising capital through engineering network 2nd and 3rd deals in quick succession (KP on $200M) Why Patrick chose the 506(c) option Used to accredited investors, $100K minimums Allows him to market deals online The biggest challenge Patrick is facing as he scales Get name out there as real estate investor Demo thought leadership on podcasts and in writing Patrick’s advice for aspiring multifamily investors Partner up to accelerate your growth Find where your skills fit and bring value Connect with Patrick Grimes Invest on Main Street  Patrick on Forbes Schedule a Call with Patrick Resources Get Tickets for Deal Maker Live Buy Michael’s Ultimate Guide to Apartment Building Investing Learn More About Michael’s Mentoring Program Join the Nighthawk Equity Investor Club Access Michael’s Free Resources in the Freedom Vault  Review the Podcast on iTunes Financial Freedom with Real Estate Investing by Michael Blank  Persistence, Pivots and Game Changers: Turning Challenges into Opportunities by Patrick Grimes et al. Michael on Facebook  Michael on Instagram  Michael on YouTube  Michael on TikTok Apartment Investor Network Facebook Group  Podcast Show Notes

Real estate has always had tax advantages, but in recent years, the deal got even sweeter for multifamily investors.  So, how do we write off depreciation? What is a cost segregation study and how can it save us even more?  Heidi Henderson serves as Executive Vice President at Engineered Tax Services, the nation’s leading tax credit and incentives firm. As an experienced tax consultant and real estate investor herself, Heidi specializes in the application of tax efficiencies to multifamily investments. On this episode of the podcast, Heidi joins cohost Garrett Lynch and me to share the unique tax advantages of real estate and explain why the US government incentivizes multifamily investors. Heidi describes how to take advantage of BONUS depreciation (provided for by the 2017 Tax Cuts and Jobs Act) by conducting a detailed cost segregation analysis. Listen in for Heidi’s insight on determining the ROI of a cost seg study and find out how YOU can save tens of thousands of dollars with the magic of accelerated depreciation! Key Takeaways  The unique tax advantages of real estate Depreciate value of real estate over 27½ years Bonus depreciation through ‘cost seg’ analysis Why the government incentivizes real estate investors Consumerism drives economy Encourages improvements to infrastructure What depreciation is and how it works Deducting cost of asset over its ‘useful life’ Reduces taxable income for investor  Why you should claim bonus depreciation right away Must be done year property is purchased Inventory breakdown helps plan renovations How to take advantage of accelerated depreciation Conduct cost segregation study Itemize deductions (e.g.: carpet, windows, etc.) What to look for in a company that does cost seg Can vary from 2 to 150 pages Ask for copy of redacted study to compare How to determine your ROI on a cost seg analysis Based on taxable income, percentage of tax paid Subtract cost of analysis The limitations on taxable income for passive investors Depreciation offsets real estate income only Does not offset income from W-2 job Why we should cash in on bonus depreciation now TCJA passed 100% bonus depreciation Drops to 80% in 2023, 60% in 2024 Connect with Heidi Henderson Engineered Tax Services  Heidi on LinkedIn  Email hhenderson@engineeredtaxservices.com  Call (801) 564-4464 Resources Get Tickets for Deal Maker Live Learn More About Michael’s Mentoring Program Download Michael’s Free Report—What's the Best Investment: The Stock Market or Real Estate?  Join the Nighthawk Equity Investor Club Access Michael’s Free Resources in the Freedom Vault  Review the Podcast on iTunes Financial Freedom with Real Estate Investing by Michael Blank  The Tax Cuts and Jobs Act Heidi Henderson on Financial Freedom with Real Estate Investing EP022 Michael on Facebook  Michael on Instagram  Michael on YouTube  Michael on TikTok Apartment Investor Network Facebook Group  Podcast Show Notes