Multifamily Legacy Podcast

Despite humble beginnings, being raised by a single mother, growing up in Section 8 housing, receiving government assistance through food stamps, and avoiding illegal activity, selling Kool-Aid and Pokémon cards sparked a child’s entrepreneurial spirit. Today, I’m talking to Sterling White, a rental property investor who now owns more than $26 million in assets, 600 units, and consistently contributes content focused on the multifamily industry. Topics on Today’s Episode: Mentee to Mentor: Learn, teach, and repeat Build Confidence: Focus on what you want to achieve, and find someone who needs your help Mindset Shift: Play to win and solve problems by beating brokers to the punch Why be average? Be extraordinary by doing more of what you want to do in life “It” Factor: Never, ever quit or give up Finding Fulfilment: Journey to get a deal involves a lot of work Finding Deals: Search database, set criteria, conduct cold calls, qualify clients   Rubik’s Cube or Shoe in the Door: Copy your way to success with creative, value-based ideas Minimalist: Money isn’t everything; it doesn’t take much to be financially free  Prove people wrong and value your time, even if you have to buy it Links and Resources Mentioned: Sterling White on LinkedIn BiggerPockets Section 8 Housing Earl Nightingale Tony Robbins American Tracers CoStar Angie’s List Predictable Revenue 1031 Exchange Grant Cardone Tim Ferriss Multifamily Legacy  Episode 051: Beat Commercial Brokers to the Punch Kahuna Investments Multifamily Legacy Podcast on YouTube Multifamily Legacy Podcast on Facebook Quotes: “Anything above and beyond just the standard living...I had to figure out how to earn money.” Sterling White  “That’s when I fell in love with real estate by not getting my hands dirty.” Sterling White  “Same story. Same tenacity. I don’t care what it takes. I’m going to do it.” Corey Peterson  “I get more of a fulfilment through the actual work. I’m not so much interested in closing on the deal. I’m more interested in the journey to get the deal.” Sterling White  Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.  Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Forestwood Apartments in Slidell, LA, is an amazing property that I purchased. It generated cash flow from the beginning without a lot of work. Terry, the property manager, never went below 97% occupancy for three years. He knew every tenant’s name and got along with them. Then, citing the need for less stress, Terry resigned. Today, I’m talking about the real stuff of multifamily investing. What you go through, emotions you experience, mistakes you make, and gaining growth from pain.  Topics on Today’s Episode: Pre-training Process: Managers are deployed, live onsite, and strive for 96 to 100% occupancy  Strategic and Methodical: From cable wires to faded outdoor paint, finish and complete rehab before starting next project Renewal retention rate is how you make money in multifamily investment space Green to Pink: Property went from greater than 95% to 94% in one month New manager not a country boy; occupancy dropped to 82% in second month Who is in charge? Property owner because no one else cares more; be a squeaky wheel to get the grease and fix problems Communicate with Investors: Don’t give good or bad news, just give the news  Property Managers, Investors, Operators, and Owners: Don’t freak out, pay attention, and lead others to prosperity by being calm, focused, and determined  Links and Resources Mentioned: Forestwood Apartments Kahuna Investments Multifamily Legacy Podcast on YouTube Multifamily Legacy Podcast on Facebook   Quotes: “If you’re not demanding a lot from your managers, you’re probably doing it wrong.” Corey Peterson  “We’re in the people business. We hire great people to run and manage great people and give them a home.” Corey Peterson  “The way you make lots of money in this business is that renewal retention rate.” Corey Peterson  “The squeaky wheel gets the grease. I wasn’t squeaky enough.” Corey Peterson  Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.  Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

How do you source deals to grow your multifamily business to own 6,000 units in just six years? It’s all about relationships!  I’m talking to Michael Becker, principal at Strategic Property Investment (SPI) Advisory. He handles all aspects of property operations, from accounting and asset management to capital improvement/renovation projects and taxation. Topics on Today’s Episode: Borrower vs. Lender: Michael’s transition to finding his own multifamily deals All Work, No Play: Michael’s motivation to experience life before it’s too late Principal Perception: Build and leverage relationships and capital for projects Property Process: Assemble team, balance deals with loans, and run projects Lingo and Language: Education comes before building, establishing relationships How to source a deal? It’s all about the relationship and getting to know others Biggest Risk for New Operators: Being under-capitralized for long-term holds that impact cash flow Crystal Clear Role: Make money by finding deals and money; everything else is noise Go with Your Gut Feeling: Even if you need the money, walk away and say, ‘No!’ Get Real to Grow: Know where you are, what you know, where to start, and who you know to win deals Links and Resources Mentioned: Old Capital Podcast with Michael Becker SPI Advisory Institutional Property Advisors (IPA) RealPage Fannie Mae Freddie Mac Edward Jones Automated Clearing House (ACH) Schedule K-1 (Form 1065) RingCentral Kahuna Investments Multifamily Legacy Podcast on YouTube Multifamily Legacy Podcast on Facebook Quotes by Michael Becker: “I had a lot of relationships. I had a lot of experience. I just wasn’t using those to the best of my capability.”  “I get to spend a week in Germany going to Oktoberfest in lederhosen with some of the most powerful apartment brokers in Dallas and Fort Worth.”  “It’s really simple. People do business with people they know, like, and trust.”  “The way that you make money is to go find deals and find money. Everything else is noise.” Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.  Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Today is the day. If you’re a business owner, you shouldn’t be washing the dishes. Take a chance to add doors in the multifamily space.  I’m talking to Jake Stenziano and Gino Barbaro, a.k.a. the pizza guy and drug representative, who came together to create a multifamily real estate investment business that continues to grow and generate cash flow. Welcome to the show, Jake and Gino! Topics on Today’s Episode: 3-Leg Framework: Buy, Manage, and Finance Proof of Concept: Know what you’re doing, buy the right stuff, avoid bad deals Ask for Help: It takes time to make money; success doesn’t happen overnight Key Strategy: Stay away from shiny object syndrome, and commit to remaining focused 3 Whys of Multifamily:  Why we get into multifamily? Control Why we win? Commitment Why we continue with multifamily? Create communities Financial Freedom: It’s not all about you, but educating and helping others Future of Multifamily Deals: Start small and progress to $10 million or above Blue Ocean Strategy: Create communities on property management side via  phenomenal customer service, reasonable rates, and treat people right Links and Resources Mentioned: Jake and Gino Jake and Gino’s Multifamily Mastery Live (Promo Code: Love Book for 25% off)  Jake and Gino’s Podcasts LoopNet Fannie Mae Freddie Mac CMBS Edward Jones Bigger Pockets Chick-fil-a Physician Payments Sunshine Act Kahuna Investments Multifamily Legacy Podcast on YouTube Multifamily Legacy Podcast on Facebook Quotes: “It’s an absolute five-year incubator to get into the money. Once you get there, it just starts to kind of snowball.” Corey Peterson “Being super resourceful and not being ashamed to ask for help and be willing to give up some of the profits to do it.” Corey Peterson “If you’re not creative, and you’re not thinking outside of the box, when you first think you’re an expert, game over, because there’s so much to learn.” Gino Barbaro “Education times action equals your results.” Jake Stenziano  Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.  Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Entrepreneurs always have lots of ideas. They need someone by their side for the roller coaster ride of ups and downs. Being married to an entrepreneur isn’t the easiest thing in the world.  Today, we’re talking about relationships, especially because Shelley and I are celebrating our 17th wedding anniversary among palm trees and sunsets!  Topics on Today’s Episode: Just the Way You Are: Don’t try to change your spouse; they are who they are and that’s why you love them How to be a Supportive Spouse: Believe in them and what they want to do to fulfill their potential; lift up, don’t crush their dreams F Bombs: Failing and feeling like you’re getting nowhere, but your spouse is always there when you need them the most Shelley’s Mr. Fix-it: Don’t give up because your spouse loves you and knows you’ll figure out a way through things Earn Trust through Communication: Trust your partner completely to let go of control  Gazillion Questions, Only One Answer: What are you going to do? How are you going to do it? I don’t know, but I know I can get there. Is the doctor in? Using Shelley’s pharmaceutical background to raising capital by offering high net-worth individuals an alternative to the stock market Real Estate Investment Trust (REIT): That’s a fund. We’re not a fund. We’re the deal makers. Real Estate Ways: From no interest or experience to knowing it all; just never tell Shelley what to do Living Our Best Life: Mindset is everything, and lifestyle is the multifamily game Links and Resources Mentioned: Edward Jones Kahuna Investments Multifamily Legacy Podcast on YouTube Multifamily Legacy Podcast on Facebook Quotes: “As an entrepreneur...I have lots of ideas and someone to put up with that craziness.” Corey Peterson “You are who you are and quite frankly, I never wanted to change you. I love the way you are.” Shelley Peterson “Those moments when your partner wants to give up because it's easy. When things are going good, I don't have any issues. It's when hard things happen.” Corey Peterson “Trust is huge because if you completely trust your partner, you're able to let go of that control.” Shelley Peterson Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.  Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

How do you get investors? Grow your database? Build your brand? Let’s dive deep into the marketing aspect of apartment syndication.   Today, I’m talking to John Casmon, GP in more than $70 million apartment real estate and host of the Target Market Insights Podcast. Also, John’s the co-creator of the MidWest Real Estate Networking Summit.  Topics on Today’s Episode: Volatile Work World: Never tie your entire livelihood to a corporation From Cars to Chicago: John’s passion for real estate investing ran out of capital Go house hack! Lots of interest doesn’t lead to replication; what people want is to find someone else to get them some return on their investment Less Babysitting, Scale Up: Make more passive income and cash flow by doing less to give investors a decent portion and not waste your time and energy Appreciation Potential with Apartments: When you fix-and-flip a single-family property, you only make money one time—when you sell it Value vs. Devalue: Marketing drives a brand and attracts investors to get a sale  Apartment Syndication Aspects: Finding deals and then pairing those deals with capital to accomplish them Ways to raise capital include 506(b) based on pre-existing relationships and no advertising, or 506(c) open to accredited investors only and allows advertising Lead/Deal Magnet: Create a Website, offer value-added content to prospects, get their contact information, and follow up to qualify investors for your deals Who is your actual target market/audience? Understand why or what it is about your brand that connects with specific consumers  MailChimp and Pipedrive: Track leads for email campaigns and conversations How to Find Investors: Build your credibility and connect with investors (starting with your own database) Links and Resources Mentioned: John Casmon’s Email Casmon Capital Group Target Market Insights Podcast Midwest Real Estate Networking Summit General Motors FHA U.S. Securities and Exchange Commission (SEC) 506(b) 506(c) MailChimp Pipedrive Constant Contact ActiveCampaign Infusionsoft FixYourFunnel Plug-in Podio Kahuna Investments Multifamily Legacy Podcast on YouTube Multifamily Legacy Podcast on Facebook Quotes by John Casmon: “You can have the best product (or service) in the world, but if you don't know how to convey that to someone and convey the benefits to them, it's not really going to grow.”  “Anyone who gets into apartment syndication, it really comes down to two aspects. It's finding deals and then pairing those deals with the capital to do them.”  “The light bulb went off, and I started to learn more about working with other people's money, working with investors, and then ultimately, apartment syndication.”  “You do want to make sure you're building that brand and building a reputation where people want to work with you, not just today, but for the long haul.”  Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.  Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Everyone wants a place to call home, even if they buy or own it. They still have the same desires, wants, and needs of a homeowner—community, safety, and someone who cares.   Today, I’m talking to Bruce Wuollet of Bakerson’s about how to create community, assets that improve areas, and make money. Bakerson’s focus is on Class C workforce housing (a.k.a. permanent renters).  Topics on Today’s Episode: Create community by quickly responding to and handling problems; treat tenants with dignity and respect; and be disciplined to take pride in property Raise Capital: Switching from friends and family to tapping into LinkedIn Find New Leads: Getting more deals and capital require wide network of friends/family and steady supply of new leads Teach and Share What You Know: Podcast platform promotes Bakerson’s story  Where is wealth? How do you create wealth? Create passive income What's the difference between holding a property for 3 or 10 years? No one knows, so play the long game to create legacy wealth Job Well Done: Do what you said you would do when you said you would do it, the way you said you would do it Communication is Critical: If investors are happy and their equity is growing, you’re growing along with them; good or bad news, they just want news  Links and Resources Mentioned: Bruce Wuollet's Email Bakerson LLC Bruce Wuollet on LinkedIn Money Radio Fort Lowell Realty Property Management  CALCAP Fannie Mae Freddie Mac Kahuna Investments Michael Blank Multifamily Legacy Podcast on YouTube Multifamily Legacy Podcast on Facebook Quotes by Bruce Wuollet: “Our focus is the permanent renter. The one who may never own a home and would like to live in one.”  “There's people that don't pay their bills...they got to go. (They) don’t fit our community. You're not taking care of what you're supposed to take care of.”  “You want a clean community. Just doing the right things right is really powerful.”  “You’re not going to grow without learning.”  Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. 

When raising money, make sure that you’re in full compliance to avoid jail-time. Don’t engage in illegal activity like Bernie Madoff to swindle investors and defraud them.  Today, I’m talking to Mauricio Rauld, who is a syndication attorney who does my private placement memorandums (PPMs). Mauricio guides us through the process of syndication to stay out of the “po-po.”  Topics on Today’s Episode: Definition of a Security: Stocks, bonds, mutual funds, and other items Raising Money: Selling securities with passive investors involved in deals  Pieces of Syndication Puzzle: Mauricio is legal piece that lets you focus on underwriting, due diligence, and other worrisome tasks Three Options: Register security or syndication with SEC; find exemption to registration; or consider it illegal Build Relationships to Meet Needs: What kind of return do you want? Are you more interested in equity or debt? Are you looking for tax mitigation? Bet on Corey, not Property: Submit a Letter of Intent (LOI), identify property, get it under contract, and perform due diligence  PPM: Legal document that discloses material information and risks to investors Raising Money Gets Easier: Know minimum amount to raise to get deal done Links and Resources Mentioned: Mauricio Rauld’s Email Mauricio Rauld on YouTube U.S. Securities and Exchange Commission (SEC) Rule 506(b)  Rule 506(c) Regulation A Regulation D Anti-Fraud Provision Bernie Madoff Michael Blank Adam Adams Rod Khleif 8 Critical Steps to Practicing Safe Syndications Multifamily Legacy Episode 86: The Juice is Worth the Squeeze (Part 1)  Multifamily Legacy Episode 87: The Juice is Worth the Squeeze (Part 2) Multifamily Legacy Podcast on YouTube Multifamily Legacy Podcast on Facebook Quotes: “Corey can show you how to raise all the money, and Mauricio can make sure you stay out of jail.” Mauricio Rauld “If you're not getting all the proper disclosures, if you're getting carried away with your returns, there's things that you can do to make an offer illegal.” Mauricio Rauld “Each deal is different. It's got a unique risk. It's a unique loan. You’ve got to analyze and underwrite that particular deal.” Mauricio Rauld “In raising money, your syndication attorney is a big piece of the puzzle because there's right ways and wrong ways.” Corey Peterson Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.  Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Do you know where or what to look for when investing in real estate? Don’t lose money by making bad investment decisions. Run numbers to make the right investments.  Neal Bawa is the founder and CEO of Grocapitus, a commercial real estate investment company. Neal uses the power of numbers to acquire properties and create profit for investors. He’s known as the “Mad Scientist of Multifamily.”  Topics on Today’s Episode: Road to Real Estate Success: Multi-million-dollar campuses to multifamily units Real Focus: Real estate demographics course teaches where to invest  Where to look: City Data Department of Numbers We are Apartments What to look for:  Population growth (at least 20% increase) Income growth (at least 30% increase) Home price growth (at least 40% value increase) Crime reduction (less than 500) Neighborhood ratings (buy the best, avoid the worst) Areas of Opportunity: Arizona, Florida, Idaho, and Utah Difference in Lifestyle: Freedom to decide when and where you want to work to create peace of mind and build legacy wealth Links and Resources Mentioned: Neal Bawa's Email Grocapitus Real Focus Course MultifamilyU MultifamilyU Bootcamp  City Data Department of Numbers We are Apartments Multifamily Legacy Podcast on YouTube Multifamily Legacy Podcast on Facebook Quotes by Neal Bawa: “Demographics control everything in real estate.”  “Home prices go up in every city, as crime goes down. Home prices are also tied to education, and crime decreases as education increases.”  “By looking at these metrics, you understand future rent growth. This is a crystal ball.” “I’m in love with the power of numbers to create wealth.”  Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.  Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Part 1 focused on the concept of getting a potential deal under contract. Part 2 covers the purchase timeline process for closing a deal, which is when your asset begins to work, run, and make money.  Be resourceful because real estate is a way to live your best life and create legacy wealth. Buckle up, buttercup! Topics on Today’s Episode: Site Visit: Flights, hotels, and time ($1,500); if you don’t have the means, find a partner Hire lawyers ($2,500 per phase): Phase 1: Purchase and Sales Agreement (PSA) Phase 2: Title Search Phase 3: Closing Letter of Intent (LOI): Utilize template and submit interest to be accepted/signed Call lender and provide offering memorandum (OM) and current rent roll  Ask your lawyer to write PSA draft and deliver it to seller’s lawyer Submit Cashflow Calculator numbers to management company Intervention: Attorneys, sellers, and buyers at impasse; nobody wants to give in PSA: Deposit earnest money Start private placement memorandum (PPM): ($15,000) Create and open LLCs Loan and insurance quotes Open five bank accounts: Operations, owners/investors distribution, deposits/earnest money, self-escrow, and capital expenditures (CapEx) Due Diligence:  Perform on-site due diligence ($10,000-15,000) Apply for loan (up to $65,000) Environmental money Survey money Hard Money Line: Red for a reason All earnest money at risk “Golden Parachute” is non-negotiable Close deal to be profitable Built-in extension ($25,000) Links and Resources Mentioned: Multifamily Legacy Episode 086: The Juice is Worth the Squeeze Part I Apartments 2 Millions Course Kahuna Cashflow Calculator Multifamily Legacy Podcast on YouTube Multifamily Legacy Podcast on Facebook Kahuna Boardroom Kahuna Investments Cashflow HQ Rich Dad Poor Dad by Robert Kiyosaki Fiverr Quotes: “Remember, you’re working with lawyers. So, there’s nothing that happens quickly.” Corey Peterson “Why five bank accounts? If it’s not in the main account, then it doesn’t get spent.” Corey Peterson “It typically is $10,000-15,000 to do a true, deep dive due diligence. I’ve seen it done for a little cheaper, but sometimes if you do cheap, you get screwed.” Corey Peterson “Make sure that you know all the numbers on these deals. You’ll thank yourself, once you do it right. You don’t want to lose money.” Corey Peterson Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.  Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.