Financial Freedom with Real Estate Investing

Michael Blank
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Sep 28, 2020 • 37min

MB 233: From Trading Time for Money to Financial Freedom– With Dave Seymour

Trading time for money has a ceiling. There are only so many hours in the day, and eventually, we run out. And those of us who work 80 hours a week (or more!) to make ends meet simply can’t be a good partner or parent. So, what can we do to get out of this broken system and achieve financial freedom? Dave Seymour is the Cofounder and CEO of Freedom Venture Management, a results-driven investing firm that focuses on multifamily and commercial real estate. After 16 years as a Boston firefighter and paramedic, Dave discovered real estate and quickly became one of the nation’s top investors. His passion for the business and propensity to tell it like it is landed Dave his own real estate reality series on A&E, and he has also appeared on CBS, ABC and CNBC, among many other national media outlets. On this episode of Apartment Building Investing, Dave joins me to explain how he went from working 120 hours a week as a firefighter and paramedic to starring in Flipping Boston on A&E. He describes how real estate saved his financial life and weighs in on what multifamily assets his team is buying now to generate cashflow right away. Listen in for Dave’s insight on building a platform by being yourself and learn to replace fear with faith and say YES to the opportunities that come your way! Key Takeaways How Dave got his own show on A&E Separate self from pack Amplify what’s special about you What Dave was doing before real estate 16 years as firefighter + paramedic Spending money didn’t have What inspired Dave to pursue financial freedom Working 120 hours/week Couldn’t be good husband or dad How Dave got into real estate Heard about seminar on radio Invested $27K in classes What Dave is good at Knowing what real emergency is Assess landscape + execute How Dave makes up for his weaknesses Recognize what’s not core competency Hire exceptional fund managers How Dave built a platform for raising money Authenticity (no BS) Search for other’s needs and serve Dave’s biggest challenges right now Getting qualified funds Marketing to right audience Meet-and-greets during COVID What assets Dave’s team is buying Multifamily on Florida Gulf Coast Focus on 40- to 140-unit properties What’s next for Dave and Freedom Venture Build infrastructure for $250M Fund 2 Direct lending to other investors Dave’s definition of success Physical, mental and spiritual wellbeing Family and faith (to replace fear) Connect with Dave Seymour Freedom Venture Investments Freedom Venture on Facebook Dave on Twitter Dave on Instagram Dave on LinkedIn Resources Learn More About Michael’s Mentoring Program Join the Nighthawk Equity Investor Club Flipping Boston Three Feet from Gold: Turn Your Obstacles into Opportunities by Sharon L. Lechter and Greg S. Reid Daymond John Tony Robbins Tunnel to Towers Foundation The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod The Untethered Soul: A Journey Beyond Yourself by Michael A. Singer Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group
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Sep 21, 2020 • 39min

MB 232: Turbocharge Your F.I.R.E. Journey with Real Estate – With Rajneesh Jha

The F.I.R.E. movement challenges us to achieve financial independence and retire early by saving and investing aggressively. And by aggressively, I mean anywhere between 50% and 70% of your income. Rajneesh Jha was following the F.I.R.E. method, putting his money in Wall Street investments—until he realized he could fast-track his timeline with multifamily real estate! Raj spent 20 years working as an engineer for Fortune 500 companies. An avid student of the stock market and personal finance, he started investing in safe, low-cost mutual funds with the goal of achieving financial freedom in about 10 years. Then he discovered real estate and shifted his strategy, building a portfolio of small multifamily properties. Earlier this year, he quit his 9-to-5 to build Big League Capital, a multifamily syndication firm that helps other investors turbocharge their journey with real estate. On this episode of Apartment Building Investing, Raj joins me to explain how shifting from F.I.R.E. to multifamily accelerated his journey to financial freedom. He offers his take on the stock market as an investment class, describing how the returns pale in comparison to real estate. Listen in for insight around transitioning from landlording to syndication and find out how Raj’s life has changed since he quit his corporate job! Key Takeaways How Raj’s journey to financial freedom began Stumbled on F.I.R.E. movement 7 years ago Invest in low-cost, diversified mutual funds What the F.I.R.E. method teaches Save substantial amount of income (up to 70%) Save more, arrive at financial nirvana faster How Raj was able to save a lot of money with F.I.R.E. No drastic changes to lifestyle More conscious + intentional about spending What Raj was trying to accomplish through F.I.R.E. Protect family from vagaries of corporate life Get to place where work becomes optional Raj’s take on the stock market as an investment class Can get burned if chase trends Prosper with disciplined, consistent strategy Pales in comparison to returns on real estate How Raj discovered the world of real estate investing Came across BRRRR method with Paula Pant Learned about scale from Matt Faircloth How Raj differs from the average stock market investor Passionate about personal finance Extensive reading and education Raj’s first real estate investment Bought triplex in Summer of 2017 Made fair share of mistakes but believed in vision How Raj’s long-term plan shifted once he found real estate 4% safe withdrawal rate vs. 12% cash-on-cash return Accelerate journey by 3X with multifamily investing How Raj’s life is different after quitting his job Time to relax and plan next chapter Work on my schedule, do things that matter to me What’s next for Raj and his investing partners Looking for 60- to 120-unit value-add property Psyched to go from landlording to syndication What Raj would do differently if he could go back Start sooner and be bolder See mistakes as rite of passage Raj’s advice for achieving financial freedom Get clear on what you really want Skip stock market, go right into multifamily Have faith and take prudent risks Don’t let lack of funds/experience hold you back Spend time on real estate education Connect with Rajneesh Jha The Big League Capital Email raj@bigleague-capital.com Call (267) 551-0529 Resources Learn More About Michael’s Mentoring Program Access Michael’s Ultimate Guide to Buying Apartment Buildings with Private Money Join the Nighthawk Equity Investor Club Register for Michael’s Free Master Class: How to Do Your First Apartment Deal Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even without Experience or Cash by Michael Blank Financial Independence Retire Early Movement BRRRR Method Jim Rohn Paula Pant Matt Faircloth Robert Kiyosaki Brandon Turner on BiggerPockets BiggerPockets on YouTube Think and Grow Rich by Napoleon Hill Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group
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Sep 14, 2020 • 47min

MB 231: Lessons of a Master Multifamily Deal Finder – With Garrett Lynch

2020 has been a tough year for finding deals—even for us. In fact, the Nighthawk Equity team is currently in the process of closing on our first and only deal of the year (so far). But that’s not for lack of trying! So, what are we looking for in a deal right now? How have we changed our underwriting criteria in the age of COVID? And how do we recover from the disappointment of losing a deal? Garrett Lynch is the Director of Acquisitions at Nighthawk Equity, the investing arm of the Michael Blank organization. Garrett has been in the multifamily space since 2011, cofounding a firm that grew from zero to 3,400 units before successfully exiting that venture. Since taking on his role with us at Nighthawk in 2018, Garrett has built a portfolio that includes at 218-unit property in Little Rock, Arkansas a 276-unit in Huntsville, Alabama, and a 130-unit deal in Atlanta, Georgia. On this episode of Apartment Building Investing, Garrett joins me to explain how his strategy for finding multifamily deals has evolved over the years and what we look for in a deal at Nighthawk Equity. He describes what he does to build rapport with brokers and stay in touch, sharing how strong broker relationships helped us land our current deal in Atlanta. Listen in for Garrett’s insight on recovering from the disappointment of losing a deal and learn how to adjust your underwriting to find good multifamily deals in the COVID era. Key Takeaways How Garrett’s strategy for finding deals has evolved over the years Look for best price per door in D class neighborhoods early on More granular on underwriting today, focus on B and C class How we dialed in our criteria for deals at Nighthawk Equity Look at capacity on equity raise and debt structure Gradual progression on size of deals Choose value-add properties in certain markets The benefits of collocating deals in just a few markets Share resources (e.g.: staff) Hit several properties in one trip How we select markets at Nighthawk Equity Resources available to operate and steady dealflow Population, job and overall economic growth How Garrett builds rapport with brokers Stand out by responding whether like deal or not Meet in person and check in regularly, share successes How Garrett recovers from the disappointment of losing a deal Channel hurt into next quest Commit to process How we landed our current deal in Atlanta Follow up with broker re: deal another investor won Unobstructed shot when that deal fell apart Garrett’s system for staying in touch with brokers Put regular check-ins on calendar (target markets of interest) Come with thoughtful questions re: specific deals Reach out when land deal in their market to build demand How we have adjusted our underwriting at Nighthawk in the COVID era Tailor underwriting around few available debt products Set natural market appreciation at ZERO for Year 1 Create cushion of 0.5% on reversionary cap rate Cash reserves minimum of 10% of total spent on deal Research tenant demographic to ensure cashflow from Day 1 Connect with Garrett Lynch Garrett at Nighthawk Equity Resources Learn More About Michael’s Mentoring Program Submit a Deal to the Michael Blank Deal Desk Access Michael’s Syndicated Deal Analyzer Join the Nighthawk Equity Investor Club LoopNet CREXi National Multi Housing Council The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group
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Sep 7, 2020 • 15min

MB 230: Don’t Wait for a Crisis to Get Your Priorities Straight!

If you knew you only had six months to live, what would you do differently? Who would you spend time with? Who would you reconcile with? How would you spend your days? On this episode of Apartment Building Investing, I’m describing the health crisis that landed me in the ER at the end of July. I explain how the experience forced me to rethink my priorities and reaffirmed my mission to help people to achieve financial freedom through multifamily investing! Listen in for insight on how to get clarity in your life and take on the challenge to get your affairs in order and start living your best life NOW. Key Takeaways My recent experience with a health crisis Heart attack on July 28, 2020 100% blockage in main artery How the health emergency forced me to rethink my priorities Value health and family above all else Affirmed mission (financial freedom with multifamily) My advice on getting your affairs in order NOW Set up revocable trust and life insurance Structure entities so controlled by trust Document where to find important info Two powerful exercises for getting clarity in your life 6 months to live Perfect Day Resources Deal Maker Live Dave Ramsey Michael’s First Deal Maker Award Recipients Michael’s Financial Freedom Hall of Fame Garrett Sutton Brandon Turner The Miracle Morning: The 6 Habits That Will Transform Your Life Before 8AM by Hal Elrod Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group
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Aug 31, 2020 • 19min

MB 229: Commit, Don’t Quit 3 Feet from Gold! – With David Acosta

We’re told that our goals have to be time-bound. That we have to give ourselves a deadline if we want to achieve. The problem with that is too many of us quit three feet from gold, as the saying goes. But how do you stay committed when a year has gone by and you still don’t have your first multifamily deal? David Acosta was a mentoring student in The Michael Blank Investor Incubator. With no money and no background in investing, David leveraged his mentor, Drew Kniffin, and our Deal Maker’s Mastermind investor network to partner on his first venture, a 220-unit deal orchestrated by Ben Risser’s team. Six months later, David closed on a 48-unit deal in Lexington, KY, this time serving as lead syndicator! On this episode of Apartment Building Investing, David joins me to discuss how he did his first multifamily deal—without any money or previous real estate experience. He explains how having a mentor helped him build confidence and stay committed when his first deal took a few months longer than expected. Listen in for David’s insight on partnering with others to earn credibility and learn why it’s crucial to commit to the outcome you want, not the timeline. Key Takeaways What prompted David’s interest in multifamily investing Background in restaurants, wanted to control time Real estate investing research led to TMB course What made David think he could skip SFH investing Mentor to look over shoulder through process Took course to get educated + build confidence Why David felt having a mentor was the right choice for him No background in real estate (shorten timeline) Invest in education to be taken seriously David’s frustration with missing his 12-month goal Deflating to fall short, temptation to walk away Mentor encouraged to commit to goal vs. timeline How David finally found his first deal Connect with others in Deal Maker Mastermind Partner as GP with another investor’s team How the Law of the First Deal worked for David Competitive advantage in closing second deal Had confidence to serve as lead syndicator What’s next for David as a real estate investor Build out team, efficiencies in processes Scale and grow business from there David’s advice for aspiring multifamily investors Develop persistence to commit to outcome Get educated and consider hiring mentor Join an ecosystem, JV to build track record Connect with David Acosta Acosta Capital David on LinkedIn David on Instagram Resources Purchase the Replay of Deal Maker Live Learn More About Michael’s Mentoring Program Check Out Michael’s First Deal Maker Profiles Explore Michael’s Products & Programs Connect with Other Investors in the Deal Maker’s Mastermind Ed Hermsen on Apartment Building Investing EP225 Drew Kniffin at Nighthawk Equity The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probable, to Inevitable by Hal Elrod Ben Risser on Apartment Building Investing EP102 Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group
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Aug 24, 2020 • 28min

MB 228: What’s Working Now to Get Deals Done – With Drew Whitson & the Michael Blank Mentoring Team

Despite the disruption of COVID-19, multifamily investors are still doing deals. The question is, HOW? What’s working right now to get deals done? What isn’t? What are real people doing to find success in today’s market environment? On this episode of Apartment Building Investing, I’m handing the mic over to Drew Whitson to moderate a discussion with our mentoring team, Todd Dexheimer, Brad Tacia, Phil Capron and Matt Brawner, on what’s working now to get deals done. We explain how our mentoring students are leveraging the COVID pause to build relationships and how the balance of power has shifted among syndicator, buyer and broker in recent months. We go on to explore the benefit of a strong relationship with your property manager and how underwriting has changed in light of the pandemic. Listen in for insight into what makes multifamily the strongest asset class in real estate and learn the ONE thing our most successful students are doing right now to get deals done. Key Takeaways What Matt’s most successful students have done in 2020 Leverage pause in market (Seinfeld time) Use time to build relationships with brokers What Phil’s students are doing to acquire multifamily properties Worry about ‘making it to next meal’ Figure out how to become viable buyer Todd’s advice on how to talk to investors right now Continue to educate and keep investors informed Overcommunicate to build relationships How Brad is coaching his students around underwriting Network with mortgage broker re: what’s changed Modify SDAs to ensure accurate underwriting How running a property management firm informs Matt’s underwriting Understanding of street rent and how units operate over time Haven’t cut back on rents but less aggressive with rent bumps How underwriting has changed in light of the COVID pandemic Build in more time for rent growth Consider changes in rental laws by market What makes multifamily the strongest asset class in real estate Performs well through economic disruption Lockdown led to desire for nicer apartment The one thing our most successful students are doing right now Willing to make mistakes by doing Get out there and build relationships Analyze deals (still numbers game) Willing to partner to gain experience Take consistent action every day Connect with Drew, Todd, Brad, Phil & Matt Drew Whitson Todd Dexheimer Brad Tacia Phil Capron Matt Brawner Resources Learn More About Michael’s Mentoring Program Purchase the Replay of Deal Maker Live Pillars of Wealth Creation Podcast Garrett Lynch CoStar Rentometer Podcast Show Notes Review the Podcast on iTunes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group
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Aug 18, 2020 • 19min

MB 227: The State of Multifamily

Our world is in upheaval. Between COVID-19 and the current riots, nothing feels normal. And this has a lot of investors asking, is now the right time to pursue multifamily? On this episode of Apartment Building Investing, I’m sharing my keynote address from Deal Maker Live 2020 on the current state of multifamily. I describe how multifamily is weathering the storm, explaining why it’s actually EASIER to raise money right now and why now IS the right time to invest in apartment buildings. Listen in for insight around how to adjust your underwriting in the current economic environment and get my advice on what you SHOULD be doing right now to achieve financial freedom! Key Takeaways How multifamily is performing right now Similar to 2008, deep quiet under storm Collections surprisingly consistent Why it’s easier to raise money in the current economic environment Investors frustrated with volatility of stock market Opening to discuss multifamily as alternative When it’s the best time to invest in multifamily Never going to be perfect time Start working toward financial freedom NOW How investors should adjust their tactics right now Be smart about underwriting (↑ reserves, ↓ rent growth) Avoid hard deposit, incorporate financing contingencies What multifamily investors SHOULD be doing right now Stay calm and stay the course Remember your WHY Keep momentum going Resources Purchase the Replay of Deal Maker Live Learn More About Michael’s Mentoring Program Join Michael’s Deal Maker’s Mastermind Join the Nighthawk Equity Investor Club Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group
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Aug 10, 2020 • 47min

MB 226: How to Protect Your Wealth in a Crisis – With Russell Gray

The black swan event financial pundits predicted has arrived in the form of the Coronavirus pandemic. But how, exactly, will the crisis play out in the markets? What does it mean for us as real estate investors? And what can we do to understand the changing reality, protect our wealth, and even capitalize on hidden opportunities? Russell Gray is the cohost of The Real Estate Guys Radio Show, a podcast and platform dedicated to helping investors stay focused, motivated and informed. A financial strategist with 30-plus years of experience in business, investing, mortgage lending and financial services, Russell provides unique and practical insights that support entrepreneurial investors in growing and protecting their wealth through real estate and real asset investing. He is also the coauthor of Equity Happens: Building Lifelong Wealth with Real Estate. On this episode of Apartment Building Investing, Russell joins me to share his take on the bigger story behind the pandemic, explaining how the government bailout will impact the value of the US dollar and its status as the world’s reserve currency. He walks us through the real estate strategies he likes right now, describing the benefit of investments that qualify as both REAL and ESSENTIAL. Listen in for Russel’s insight on protecting your wealth in a crisis and learn what YOU can do to adapt to the circumstances and thrive through a challenging time! Key Takeaways Russell’s take on the biggest story behind the Coronavirus Debt crisis on horizon (more vulnerable now than 2008) Potential for currency crisis as Fed continues to print $ Russell’s insight around the indicators that the dollar is weak Dollar exhibits weakness against other currencies All currencies exhibit weakness against precious metals The consequences of the government’s Coronavirus bailout High risk of inflation Devaluation of dollar How to protect your wealth from inflation, deflation and stagflation Store in alternate form of liquidity like gold to preserve value Invest in real assets (i.e.: real estate in resilient market) Why now is a good time to be a real estate investor Printing money favors debtor Real estate = ultimate vehicle to short dollar The right and wrong way to measure your net worth Assets – liability = wrong way Liquidity + positive cashflow = right way What real estate strategies Russel likes right now Things that are REAL and ESSENTIAL Residential, energy, healthcare and distribution Russell’s advice for investors taking a wait-and-see approach Don’t wait for someone else to find best deals before you Look for real estate (real asset) in resilient markets Connect with Russell Gray The Real Estate Guys Email crisis@realestateguysradio.com for the Crisis Investing Webinar Email silverseries@realestateguysradio.com for the Silver Series Email preciousequity@realestateguysradio.com for the Precious Equity Tutorial Resources Purchase the Replay of Deal Maker Live Learn More About Michael’s Mentoring Program Join the Nighthawk Equity Investor Club Peter Schiff Robert Kiyosaki Reuters Article on the Dollar Index Ken McElroy Equity Happens: Building Lifelong Wealth with Real Estate by Robert Helms and Russell Gray FRED Index on the Purchasing Power of the Consumer Dollar Jim Rohn Chris Martenson at Peak Prosperity Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group
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Aug 3, 2020 • 42min

MB 225: How to Stay Committed to Your Multifamily Goals – With Ed Hermsen

According to the Law of the First Deal, a multifamily investor who buys their first apartment building will do their second and third deals in rapid succession, achieving financial freedom in just a year or two. But there is an exception to every rule, and Ed Hermsen is the ONE investor I know who did his first deal—and then life got in the way. So, what can he teach us about keeping momentum and staying committed to our multifamily goals? Ed grew a portfolio of single-family rentals while working as a mortgage loan officer in Fort Collins, Colorado. Five years ago, he started studying multifamily and eventually partnered with a close friend on a 22-unit deal in Pensacola, Florida. After revisiting his goal to retire by 50, Ed realized he needed to recommit to multifamily, and in the last two years, he has leveraged the partnership model to build a portfolio of 210 units and quit his job with real estate! On this episode of Apartment Building Investing, Ed joins me to describe how a 9-to-5 in mortgage banking inspired his real estate investing career and share his secrets to successful multifamily investing with partners. He discusses what made him the sole exception to the Law of the First Deal, explaining why there’s a four-year gap between his first and second deal and what finally inspired him to get back in the game. Listen in for Ed’s insight on the value of accountability and learn what YOU can do to stay committed to your multifamily goals. Key Takeaways How Ed got into real estate Work in mortgage banking exposed to wealth-building potential Bought SFH rental every year to build portfolio of 10 What inspired Ed to pursue financial freedom with multifamily Never off clock, have to take calls (even on vacation) Rely on real estate agents + economy for livelihood Ed’s first multifamily deal Friend found 22-unit in Pensacola, FL in 2015 Bought for $740K, valued at $1.5M now No distributions first year (units in bad shape) Challenge to manage vendors from afar Ed’s second multifamily deal Purchased 88-unit in Wyoming with 3 partners Lead from attorney handling family dispute Great loan from local bank, refinancing now How Ed found his partners Kids go to school together Clients from mortgage business Ed’s insight on building successful partnerships Accountability and clear division of labor Invest in attorney to do operating agreement What made Ed the exception to the Law of the First Deal Went back to buying fourplexes Fell back into 9-to-5 routine Ed’s advice around staying committed to your multifamily goals Write down goals and revisit every morning Build in accountability with mentor or coach Ed’s latest multifamily deal Bought 100-unit deal in Tulsa, OK with 2 partners Establish relationships with local bank and realtor Must follow housing authority rules What’s next for Ed Put 22-unit on market Look for deals in Oklahoma Learn more about syndications Ed’s advice for aspiring multifamily investors Build good team Get educated on markets Get first deal done Connect with Ed Hermsen Email edhermsen14114@gmail.com Resources Purchase the Replay of Deal Maker Live Learn More About Michael’s Mentoring Program Fellowship of Christian Athletes Hal Elrod The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod The Ultimate Guide to Buying Apartment Buildings with Private Money Syndicated Deal Analyzer BiggerPockets The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probably, to Inevitable by Hal Elrod LoopNet CREXi Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group
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Jul 27, 2020 • 37min

MB 224: Why Multifamily is a Better Bet Than the Stock Market – With Bruce Fraser

Investing in the financial markets is stressful, especially in a crisis. And even if you happen to be brilliant at options trading, $100K in the equity market will still only buy $100K in assets. On the other hand, investing $100K in multifamily will buy you a $500K asset—and earn you five times the return. Not to mention the fact that it’s essentially recession-proof! Bruce Fraser is the Managing Partner at Elkhorn Capital Partners, a private equity firm that focuses on multifamily residential real estate in economically insulated submarkets. Prior to Elkhorn, Bruce ran a lucrative hedge fund, successfully navigating the financial crisis before his research led him to multifamily. In a few short years, Bruce has built a portfolio of 1,600 units, and he currently serves as a member of the Forbes Real Estate Council. On this episode of Apartment Building Investing, Bruce joins me to explain what makes multifamily a better investment than the financial markets, especially through the COVID-19 crisis. He tells us about his first multifamily deal (as one of my early coaching students!), discussing the challenges he faced early on and describing how the Law of the First Deal impacted his real estate career. Listen in for Bruce’s insight on the advantage of choosing a niche in distressed assets and learn his aggressive but realistic approach to scaling a multifamily business. Key Takeaways What makes multifamily a better investment than the financial markets S&P 500 = 2.5% average annual return over last 20 years Multiplier effect ($100K buys $500K asset, earn $100K vs. $20K) Bruce’s first multifamily deal as one of my early coaching students 134-unit property in Fort Worth $5.7M acquisition (raise $2.1M) Sold 14 months later for $7.9M Bruce’s experience with the Law of the First Deal Second deal under contract when first closed Acquire 3 to 4 per year ever since Why Bruce chose a niche in distressed situations More control over occupancy growth than rent growth Create much more substantive equity in short period Why Bruce sought out coaching early on Overcome uncertainty Understand deal structure Bruce’s approach to scaling a multifamily business Manage time wisely (leverage third-party property manager) Be aggressive but realistic Bruce’s experience through the COVID crisis Investors ready to buy and deals available Biggest challenge = lending environment Bruce’s goals over the next three years Double portfolio to 2K to 3K units Centralized position in handful of markets Why multifamily is the best investment through the pandemic Tax efficient distributions Demand for apartments remains high Protects against inflation Connect with Bruce Fraser Elkhorn Capital Partners Email bruce@elkhornpartners.com Resources Goldman Sachs Economic Outlooks Purchase the Replay of Deal Maker Live Join the Nighthawk Equity Investor Club Learn More About Michael’s Mentoring Program Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group

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