Financial Freedom with Real Estate Investing

There are tons of books out there that teach you how to invest in real estate syndications with other people’s money. But what if you’re the ‘other people’? What resource teaches you how to evaluate opportunities and pick the right sponsor to trust with your money? Brian Burke is the President and CEO of Praxis Capital, a private equity investment firm that focuses on repositioning multifamily properties. An expert real estate syndicator and investor, he has acquired 3,000 multifamily units and 700 single family rentals in his 30-year career. Brian is also the author of the new book, The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications. On this episode of Apartment Building Investing, Brian joins me to explain why passive investors need to look beyond returns when comparing syndication opportunities. He discusses why the sponsor is a more important consideration than the market or the deal itself, sharing the cautionary tale of an investor who lost her life savings to an unethical syndicator. Listen in for Brian’s insight on the benefit of investing in a non-correlated asset like real estate and learn what questions to ask as you evaluate different investing opportunities. Key Takeaways The cautionary tale Brian included in The Hands-Off Investor Grocery clerk sold fourplexes to invest in TIC syndication Sponsor ran off with money and she lost life savings The three indicators used to measure the performance of a real estate investment IRR Cash-on-cash return Equity multiple Why passive investors must look beyond returns when comparing opportunities Sponsor can manipulate what forecasted cashflows will be Look at what’s behind numbers to determine if reasonable Why the sponsor is more important than the market or the deal itself Bad sponsor can ruin good investment in great market Take time to determine moral character, track record What secrets sponsors don’t want passive investors to know Hidden asset management fees Treatment of bad debt How distributions made The pros and cons of being a passive investor in multifamily syndications Professional edge (make more money working with expert) Give up control, can’t exit if don’t like what’s happening The benefit of investing in non-correlated assets like real estate Drop in stock market unlikely to impact real estate Reduces any single point of failure in portfolio Brian’s advice for skeptical investors looking at multifamily real estate Look at where world’s wealth made Minimize risk with balanced portfolio Connect with Brian Burke Praxis Capital Praxis Capital on LinkedIn Praxis Capital on Facebook Praxis Capital on Twitter Praxis Capital on Instagram Resources The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications by Brian Burke Brian on Apartment Building Investing EP005 Purchase the Replay of Deal Maker Live Join the Nighthawk Equity Investor Club Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate? Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group

In the world of startups, entrepreneurs take a lean approach early on with an eye to grow quickly. Ellie Perlman applied these principles to real estate, building and scaling a syndication business in a few short years. So, how do you shift from being a syndicator to managing a syndication business? Ellie is the Founder and CEO of Blue Lake Capital, a real estate investing firm that specializes in value-add multifamily acquisition and management. She also leads REady2Scale, a mentoring program for aspiring multifamily syndicators, and hosts the REady2Scale Podcast. Ellie began her career as a commercial real estate lawyer and later transitioned to the role of property manager, overseeing properties worth more than $100M. She earned her MBA from the MIT Sloan School of Management. On this episode of Apartment Building Investing, Ellie joins me to explain how growing up poor in Israel gave her the drive to succeed and share her journey from cleaning synagogues to earning an MBA from MIT. She discusses the decision to start her own real estate business, describing how multifamily syndication fulfilled her vision to both scale quickly and earn passive income. Listen in for Ellie’s insight on the magic of scaling a startup and get her advice on how to grow YOUR real estate business—even if you don’t have a budget! Key Takeaways How Ellie developed the drive to succeed Cleaned synagogues as poor child in Israel to help family Sent to youth village at 15, wanted better for own kids What inspired Ellie to go to law school Married at 18, working 3 jobs to provide for husband Saw education as ticket out of ‘survival mode’ How Ellie developed an interest in real estate Exposed to deals in international real estate department of law firm Transitioned to property management to understand business side What brought Ellie to the United States Pursue MBA at MIT to learn how to start companies Aunt had moved to US and achieved success Ellie’s decision to go into business for herself Desire to fulfill potential as self-made woman Scarier NOT to try than to try and fail Ellie’s insight on the power of believing in yourself Causes to act in way that sets up for success Changes other’s perception of who you are Ellie’s big vision for building a real estate company Reverse engineer plan based on net worth goal at age 50 Multifamily met requirements for scale, passive income What Ellie would tell her younger self Don’t listen to doubters + keep going People project their own fear on you How Ellie thinks about potential discrimination in real estate Focus on what CAN change and improve self Not productive to get stuck in victim mode Why Ellie started a training program and podcast Build relationships with potential investors Learn something new to implement in business Rewarding to see other people succeed Why Ellie is an advocate for scaling your business Burn out when try to do all on own Magic in scaling to grow + grow quickly Ellie’s advice for building and scaling a syndication business Map out business want to create and define roles Choose area of focus, partner or outsource rest How to build a syndication business on a small budget Hire intern through Handshake Pay small stipend or offer equity Connect with Ellie Perlman Ellie’s Website Email ellie@ellieperlman.com REady2Scale Podcast REady2Scale Mentoring Program Blue Lake Capital Resources Register for Michael’s Free Masterclass: How to Do Your First Apartment Deal Register for Deal Maker Live Join the Nighthawk Equity Investor Club BiggerPockets Upwork Handshake Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group

Doing something monumental like moving your family across the ocean to Hawaii or buying a 100-unit apartment complex may feel overwhelming. But Brandon Turner has done both of those things, and he contends that any process is easy IF you break it down into a series of tiny actions that take five minutes or less. Brandon is the Founder of Open Door Capital, Vice President of BiggerPockets and Cohost of The BiggerPockets Podcast. He owns more than 500 rental units totaling $20M and has dozens of rehabs under his belt. Brandon’s work has been featured in Forbes, Entrepreneur and Money Magazine, and he is the author of several books, including The Book on Rental Property Investing and How to Invest in Real Estate. On this episode of the podcast, Brandon joins me to share his assessment of the impact of COVID-19 on real estate investing, explaining how we should adjust our underwriting in light of the pandemic. He walks us through his favorite investing strategies right now, describing the opportunities he sees in real estate over the next 10 years. Listen in to understand the marketing techniques Brandon uses to raise LOTS of money online and get his advice on developing a clear VISION of where you want to be—and taking tiny action each day to get there! Key Takeaways Brandon’s assessment of the impact of COVID Depends on whether second round of virus triggers another shutdown 85% confident pandemic will be interesting memory in 6 months How real estate investors should adjust their behavior right now Less optimistic in underwriting (don’t count on raising rents in Year 1) Good time to revisit fundamentals, be more conservative The opportunities Brandon sees over the long term Migration to South as more and more people reach retirement age Invest in mobile home parks, senior living and low-income multifamily How this economic crisis differs from the last recession Last downturn CAUSED by shady practices in real estate Less impact on real estate this time (except vacation rentals) Brandon’s favorite real estate strategies right now House hacking good for new investors Rehab or value-add (BRRRR method) Mobile home parks Brandon’s insight around COVID’s impact on low-income earners Still paying rent at mobile home parks Government won’t allow economy to fail BiggerPockets’ most successful marketing strategies Build trust and credibility with content (blog, podcast) Make money as software company, not education How Brandon uses content marketing in his investing business Build trust and credibility at scale with content Leverage video to raise money, send thank you letters Focus on growing Instagram audience (125K followers) How Brandon architects his life around his family and business Develop clear vision of success, know where want to be Keep asking, ‘What’s the next little tiny step?’ Connect with Brandon Turner Open Door Capital Brandon on BiggerPockets Brandon on Instagram Resources Join Michael’s Investor Incubator Mentoring Program Register for Michael’s Free Masterclass: How to Do Your First Apartment Deal Register for Deal Maker Live Join the Nighthawk Equity Investor Club Syndicated Deal Analyzer Joe Fairless Loom Video Messaging The Book on Rental Property Investing by Brandon Turner Bryce Stewart on BiggerPockets Podcast EP276 Vivid Vision by Cameron Herold Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group

You may have heard the prediction that unemployment in the US could reach 30%, and that does sound scary. But what do those numbers really mean? And how would that worst-case scenario impact collections? What should we be concerned about as investors in affordable housing? Damian Bergamaschi is the cofounder of Damris Capital, a money management firm that leverages data analysis to help its investors achieve financial freedom sooner. Damian leads Damris’ optimization research for all investment models and algorithms and serves as the portfolio manager of the firm’s real estate acquisitions. On this episode of Apartment Building Investing, Damian joins me to explain how his obsession with data led to investments in commercial real estate. He discusses why affordable housing has been insulated from COVID-19, breaking down what the unemployment rate really means and how government subsidies have had a positive impact in the space. Listen in as Damian calculates projected collections in a worst-case scenario and find out why he is bullish on affordable housing as a reliable long-term investment. Key Takeaways The Damris Capital origin story Idea to organize data, info from white papers Test different asset classes by numbers How Damian’s research led him to affordable housing Devaluation of dollar = consistent long-term trend Residential real estate most tax efficient way to invest indirectly in inflation Add framework of Inflation Harvesting (layer on debt) What we don’t understand about the unemployment rate Many people have income despite being unemployed (e.g.: retirement, disability, etc.) At 30% unemployment, 60% would still have income vs. 80% in normal circumstances Why affordable housing is insulated from COVID-19 Government safety nets (stimulus checks, unemployment benefits) More likely to pay for housing than discretionary expenses Even in worst-case scenario, 70% collections projected The adverse short-term impact COVID may have on affordable housing Reductions for prepayment Slightly lower collections Credit card processing for online payments Won’t raise rents for 12 to 18 months Damian’s promising long-term outlook for affordable housing Opportunity to raise rents at accelerated rate in 18 to 24 months Consistent supply and demand in residential real estate As cap rates contract, value of properties will expand The cyclical nature of delinquencies and being paid up Most caught up after tax return Most delinquent after holidays Why multifamily investors need to be thinking about September Unemployment will start to hit caps (safety net goes away) Renters may owe on taxes, not realizing UEB taxable Connect with Damian Bergamaschi Damris Capital Resources Join Michael’s Investor Incubator Mentoring Program Register for Deal Maker Live Join the Nighthawk Equity Investor Club Damian’s Blog Post on Unemployment Damian’s Blog Post on Mobile Home Park Investing Damian’s Blog on Mobile Home Park Investing Performance Post-COVID Inflation Harvesting The Case-Shiller Home Price Index US Bureau of Labor Statistics Subprime Auto Loan Delinquency Statistics Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group

No one knows exactly what will happen in the multifamily real estate market as the Coronavirus pandemic continues to unfold. But the heavy-hitters who have been in the game for a long time can predict, with relative certainty, which markets will thrive, when we’ll see new deal flow, and what the capital markets will look like over the next 12 months. Michael Becker is a Principal at SPI Advisory and Senior Director of Mortgage Origination at Old Capital Lending. A 15-year veteran of commercial real estate banking, Michael has originated and managed portfolios in all the major asset classes. In the six years since he started investing in multifamily, Michael has acquired 10K units and currently manages a portfolio of 6K doors. He also serves as the Cohost of the Old Capital Podcast. On this episode of Apartment Building Investing, Michael joins me to discuss the post-COVID new normal in multifamily real estate. He explains how the pandemic is impacting his business and offers insight around what the recovery might look like—and what that means for us as multifamily investors. Listen in for Michael’s predictions on multifamily capital markets and deal flow in the next twelve months and learn what you can do to be ready when the market turns! Key Takeaways How Michael’s career has evolved over the last several years From 1K to 10K units in Dallas-Fort Worth and Austin Start in workforce housing then sold old, bought new How Michael was able to scale so quickly Access to capital (JV with HNWI, shift to syndication) Leverage technology for efficiency in raising equity The biggest challenges Michael faced as he built SPI Advisory Raise money + find deals while managing portfolio Stay organized as scale (e.g.: send 1,200 K-1 forms) Why Michael’s uses a third-party property management team Geographically concentrated in certain area No interest in accounting, HR or construction How the pandemic is impacting Michael’s business 5% delinquency on rents (4X normal rate) Leasing only down by 15% Michael’s predictions around the post-COVID recovery Multifamily product used more than ever Rent softening (how much depends on market) Supply will constrict, new construction unlikely Increase rental pool as people lose homes Accelerating economic migration to Sun Belt Michael’s predictions around post-COVID multifamily deal flow Few deals in Q3, trickle in Q4 Steady stream of distressed deals starting in 2021 What the capital markets will look like for the next 12 months No hard money, financial contingencies available Challenging to get Fannie/Freddie loans No bridge loans, personal guarantees required What work Michael is doing on the acquisitions side right now Active participant but don’t expect to buy until Q4 Aware of real-time data, ready when market turns Where Michael sees his company going in the next five years 10K units, continue transition to newer assets Team runs day-to-day so Michael can travel Connect with Michael Becker Old Capital Real Estate Investing Podcast SPI Advisory Resources Join Michael’s Mentoring Program Register for Deal Maker Live Join the Nighthawk Equity Investor Club Michael Becker on ABI EP064 The Real Estate Guys Summit at Sea Ken McElroy Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group

Those of us who enjoy success in the real estate business are typically introduced to a model, an investor operating at a scale we never considered, who gives us an idea for what’s possible and a vision for the future. And if we’re smart, we can learn from their mistakes and leverage their knowledge and experience as a springboard, affording us a more direct path to our own financial freedom. Jacob Blackett is the Founder and CEO of Holdfolio, a platform that connects investors with high-yield investments in the real estate industry, and Syndication Pro, a software company that helps syndicators raise capital and manage investors online. Jacob got his start doing fix-and-flips as a 19-year-old sophomore in college, and today, he has placed over $50M into income-producing real estate, building a portfolio of 600+ units (as the lead sponsor) and a network of 3K registered investors. On this episode of Apartment Building Investing, Jacob joins me to explain how an infomercial inspired his interest in real estate and share his journey from fix-and-flips to wholesaling to SFH rentals to multifamily. He walks us through the steps he took to scale his real estate business, describing why it’s beneficial to have an in-house property management team and how the technology he built to raise capital online became Syndication Pro. Listen in to understand how Jacob overcame losing $40K on his first deal and learn how to avoid his mistakes by joint venturing with an experienced team early on! Key Takeaways What attracted Jacob to the real estate space Free fix-and-flip seminar (sophomore in college) Up to $80K for single flip vs. CPA starting salary Jacob’s experience with his first fix-and-flip Picked up deal on MLS with grandma’s capital Didn’t go as planned, ended up losing $40K Why Jacob pivoted from flipping to SFH rentals Very transactional, no tax benefits Growing portfolio = monthly income stream Jacob’s first AHA moment around scaling his business Create partnerships with investors Build portfolio of 150 SFH rentals quickly What inspired Jacob’s transition to multifamily All rentals in one place with staff onsite Banks/lenders prefer multifamily Jacob’s first multifamily deal 46-unit with fire damage at 50% occupancy Leveraged investor network for capital What surprised Jacob most about multifamily Breath of fresh air (power of all in one place) Had to learn a lot about asset management Jacob’s background working in property management Met investor through wholesale deal Managed all his acquisitions within 2 years The benefits of using in-house property management Generates revenue once reach 500+ units Control and consistency in best practices Jacob’s first steps for scaling his real estate business Implement use of Propertyware software Hire talented leasing agent and COO How Jacob scaled his capital raising efforts Crowdfunding sites caught eye early on Built website to raise money online How Jacob bounced back from losing $40K Resolve to fix mistakes Determined to pay grandma back Jacob’s advice to his 19-year-old self JV on first flips to hedge risk Job at multifamily private equity company Jacob’s advice for aspiring multifamily investors Get on experienced team, see where you fit Think creatively, don’t be afraid to take job Connect with Jacob Blackett Syndication Pro Email jacob@syndicationpro.com Resources Join Michael’s Mentoring Program Register for Deal Maker Live Access Michael’s Syndicated Deal Analyzer Enroll in Michael’s Deal Maker Mastermind Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate? Join the Nighthawk Equity Investor Club Propertyware Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group

Some real estate investments are riskier than others, especially in an economic downturn. Class A multifamily developers, for example, are likely to lose their tenant base in a recession. So, what can developers do to forecast what the world will look like at the end of a build cycle and make decisions accordingly? And what can we ALL learn from this approach that will help us prosper through multiple market cycles?    Scott Choppin is the Founder of Urban Pacific, a real estate development company out of Long Beach, California. With 35-plus years of experience in the business, Scott has led the development of nearly 1,700 units throughout the Western United States. He is also responsible for a recent innovation known as Urban Town House, a middle-income, multigenerational housing product that serves urban families in California. Scott’s work has been featured in Forbes, The Los Angeles Times and Builder Magazine, among many other media publications. On this episode of Apartment Building Investing, Scott joins me to explain how he got his start working for a large development firm, describing the wide range of skills and knowledge he picked up before striking out on his own. He discusses how he leveraged joint venture partnerships in the early days of Urban Pacific, what the company is doing to mitigate risk in a recession, and why he is optimistic about the current circumstances. Listen in for Scott’s insight on transitioning from a W-2 to real estate development and find out what YOU can do to survive and thrive in an economic downturn. Key Takeaways How Scott got into real estate development Family background in industry Work for large firm to learn on job Why Scott chose another firm over the family business No coddling Gain broadest, deepest experience What Scott learned in working for a big developer Fill in broad framework of knowledge Exposure to every aspect of business How Scott transitioned into entrepreneurship Build network of capital contacts Joint venture with other developers The structure of Scott’s early joint venture partnerships Let me manage day-to-day operations of deal Defer to senior partner as guarantor Scott’s advice for shifting out of a salaried position Save 2 to 3 years of monthly income in cash Build developer fees into deal (overhead coverage) The challenges around doing development as a side hustle Best to learn by working in industry Even small, local deal requires daily oversight What kinds of deals Urban Pacific has done Urban infill, residential development From duplex to 453-unit multifamily How Scott thinks about mitigating risk in a recession Watch market signals to avoid oversupply Focus on workforce housing for stable tenant base Why Scott is optimistic about the current circumstances Accelerated leasing velocity + rents holding Lower costs for construction and land Greater availability of labor from shutdown Connect with Scott Choppin Urban Pacific Scott on LinkedIn Resources Join Michael’s Mentoring Program Register for Deal Maker Live Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate? Join the Nighthawk Equity Investor Club ‘6 Ways to Build a Career in the Real Estate Development Business’ by Scott Choppin Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group

How do you become a successful multifamily syndicator when you’re not old enough to order a beer? What does it take to overcome objections around being too young and too inexperienced—and raise more than half a million dollars in capital for your very first deal? What’s it like to achieve financial freedom before you turn 21? Kyle Marcotte is an entrepreneur and multifamily real estate investor with a 119-unit portfolio valued at $5.5M. He was a pre-med student and Division I soccer player at UC Davis when Kyle learned about the potential to generate passive income with real estate. At the age of 20, he raised $600K and closed on his first deal in just four months. Now, Kyle is on a mission to help others become financially free with multifamily investing—regardless of age or experience. On this episode of Apartment Building Investing, Kyle joins me to explain why he burned the boats and quit college to pursue real estate full time. He discusses how he got brokers and investors to take him seriously despite his lack of experience, sharing what gave him the confidence to keep moving forward through hundreds of no’s—until he finally got a YES. Listen in to understand why Kyle went for such a BIG first deal (a joint venture on 107 units!) and learn what he is doing now to build a personal brand and scale his multifamily syndication business. Key Takeaways What inspired Kyle to get into real estate Read Rich Dad Poor Dad, got educated about passive income Quit college to devote energy to multifamily How Kyle realized he had the personality of an entrepreneur Never able to accept being told what to do Always trying to figure out best way What financial freedom means to Kyle Cover expenses with cashflow, residual income Control over what day looks like How Kyle got investors to take him seriously at the age of 20 Own inexperience but sell on grit Deal pitch deck with multiple scenarios in story form The specifics of Kyle’s first joint venture deal 107-unit in Louisville (value-add play) Raised $600K of $1M for $4.5M purchase price Why Kyle kept going after hearing hundreds of no’s Burned boats and had no other option Commit to outcome, eventually someone says YES Why Kyle went after such a large first deal Need 75 units to achieve economies of scale Acquisition harder but affords more control of time long-term The nature of Kyle’s first joint venture partnership Partner focused on underwriting Kyle worked on raising capital How things changed for Kyle after his first deal Silenced critics, feeling of peace and ease Credibility with investors who see as phenom What Kyle is doing to build his investor base Serve as guest on podcast circuit Show up consistently on social media How gave Kyle the confidence to keep moving forward Relationship with higher power for guidance Voice inside stronger than outside resistance Connect with Kyle Marcotte Kyle’s Website Own Your Time with Kyle Marcotte Kyle on LinkedIn Kyle on Facebook Kyle on Instagram Resources Register for Deal Maker Live Join Michael’s Deal Maker Mastermind Join the Nighthawk Equity Investor Club Join Michael’s Mentoring Program Michael’s Ultimate Guide to Buying Apartments with Private Money Rich Dad Poor Dad by Robert T. Kiyosaki Financial Freedom Summit The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probably, to Inevitable by Hal Elrod Divi Mailchimp ActiveCampaign 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

Why are there so few women in multifamily syndication? According to a 2019 study conducted by Merrill Lynch, 61% of women polled cited a lack of knowledge about real estate investing. And the fact that it’s a male-dominated industry is also a contributing factor. So, how do we get more women interested in learning about multifamily—and the financial independence that comes with it? Kaylee McMahon is the Founder of The Apartment Queen, a platform dedicated to ending abuse and codependent relationships by helping women create wealth with real estate investing. A staple of the Dallas real estate scene, Kaylee has purchased $2M in real estate as Key Principal and currently serves as General Partner in 730 units in Texas and Arizona totaling more than $23M in assets under management. She is also the host of #1 Leading Ladies, a podcast about what it’s really like to be a female entrepreneur. On this episode, Kaylee joins me to share her path from real estate agent to multifamily investor, discussing how the childhood abuse she suffered gave her the GRIT to keep going when things get tough. She offers her take on how a lack of knowledge around a male-dominated industry keeps a lot of women out of the multifamily game, describing her mission to help people, especially women, achieve the total independence she enjoys. Listen in for Kaylee’s insight on reversing the beliefs that hold you back and get her advice on how to get started with apartment building investing! Key Takeaways Kaylee’s path to multifamily real estate Got start as agent, apartment locator Move on to house flips + SFH rentals Got into apartments ‘to add zero’ What makes Kaylee a good entrepreneur Autonomous (make decisions on own) Fast learner, good with people Why Kaylee made the transition from agent to investor All-in on decision to achieve financial freedom Not afraid of losing it all, could always bartend Kaylee’s take on the idea of failure Take lessons learned with you to next venture Pivot as necessary (e.g.: rent flip vs. sell) Why Kaylee deals with fear better than others Abuse in childhood built tremendous amount of GRIT Driven by WHY to help others create independence Kaylee’s experience with multifamily syndication Did first 2 deals on own with help of mentor Started partnering with others (raising capital) General Partner in 730 units to date Kaylee’s take on why there are so few women in multifamily Lack of knowledge, limiting beliefs Male-dominated industry (Good Old Boys Club) Kaylee’s advice for aspiring multifamily investors Learn underwriting, how to vet sponsors and market Invest passively but ride along with GP to learn Connect with Kaylee McMahon The Apartment Queen The Apartment Queen on Instagram The Apartment Queen on Facebook Kaylee on Facebook #1 Leading Ladies Podcast Email admin@theapartmentqueen.com Resources Deal Maker Live What’s the Best Investment: The Stock Market or Real Estate? Join the Nighthawk Equity Investor Club Merrill Lynch 2019 Wealth Decisions Study Rich Dad Poor Dad by Robert T. Kiyosaki Scaling Up: How a Few Companies Make It … and Why the Rest Don’t by Verne Harnish 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

No good comes from making decisions out of panic or fear. So, what can multifamily syndicators do to navigate the next couple of months and cover the bills—even if our tenants can’t (or won’t) pay the rent on time? How can we reassure our investors that their money is safe and leverage the available safeguards to make it through the Coronavirus shutdown? Jason Pero is the multifamily investor and syndicator behind Pero Real Estate, one of the leading real estate firms in Erie, Pennsylvania. Jason and his wife bought their first duplex in 2001 and continued to invest in small multifamily properties while he worked full-time in medical device sales. By 2012, Jason had built a 300-unit portfolio and was able to leave his 9-to-5 to pursue real estate full-time. He started syndicating deals in 2018, and today, Jason owns and self-manages 1K units in Erie County. On this episode of the podcast, Jason joins me to discuss why he waited so long to get into syndication and why he self-manages his own portfolio. Jason explains how he is navigating the COVID-19 crisis, sharing the safeguards he has in place to get through the next few months and describing his approach to the situation as both a property manager and syndicator. Listen in for Jason’s insight on the buying opportunities coming on the market right now and find out why this is a good time to invest in yourself! Key Takeaways What inspired Jason to get into real estate Internship with financial planning company School teachers worth $5M (passive income from real estate) Why it took Jason so long to take action on syndication Limiting belief around loss of control Realized could still call shots and serve more people How the Coronavirus crisis elevates Jason’s mission Watched stock market investors’ net worth plummet by 40% Real estate provides predictable long-term investment The safeguards that are helping Jason navigate COVID-19 Withhold distributions to see how next months play out Can still pay bills with 30% economic vacancy Go to forbearance only as last resort Jason’s take on the impact of the Coronavirus as a syndicator Lenders still bullish, agency debt still in play Social distancing poses challenges to due diligence Jason’s approach to the Coronavirus as a property manager Extend olive branch to good tenants Waive late fees, work out payment plan The buying opportunities coming available right now Sellers more flexible with due diligence Willing to consider financing contingencies What makes Jason successful in a rural area Greater metro area of Erie = 350K people Large influx of outside $ (Buffalo, Cleveland and Pittsburgh) Decision to self-manage properties Why Jason self-manages his own portfolio Didn’t know any different in beginning Track record through economic upheaval reassures investors Jason’s advice on navigating a difficult time Don’t freak out, look at situation from practical standpoint Research options (e.g.: SBA programs) Communicate with investors + don’t run out of cash Jason’s advice for aspiring multifamily investors Find mentor or coach who’s been where want to go Keep learning and stay humble Connect with Jason Pero Pero Real Estate Jason on Calendly Jason on LinkedIn Jason on Facebook Email jasonpero@yahoo.com Resources Register for Deal Maker Live Join Michael’s Deal Maker Mastermind Read Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate? Join the Nighthawk Equity Investor Club Join Michael’s Mentoring Program Rich Dad Poor Dad by Robert T. Kiyosaki The Millionaire Next Door by Thomas J. Stanley and William D. Danko SBA Programs for Coronavirus Relief 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