JF1213: Using IRA’s & 401k’s To Invest In Real Estate with Expert Bernard Reisz

Listen to the Episode Below (24:17)
Join + receive...
Best Real Estate Investing Crash Course Ever!

Bernard is here today to tell us how we can use our, or other people’s, retirement accounts to fund real estate transactions. Not only does that help us get deals done, but also helps people earn better returns with their retirement money. We’ll learn about the tax advantages, as well as what is not allowed by tax law. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

Best Ever Tweet:

Bernard Reisz Background:

CPA and Principal of ReSure Financial and combines tax, financial, and investment expertise

– Advises on the use of self-directed IRAs and Solo 401(k)s for real estate investing and lending

– Specialized in real estate debt and equity investing using retirement funds, and personally invests in that way

– Based in New York City, New York

– Say hi to him at: https://www.401kcheckbook.com/

– Best Ever Book: Phishing for Phools

 


Made Possible Because of Our Best Ever Sponsors:

Are you looking for a way to increase your overall profits by reducing your loan payments to the bank?

Patch of Land offers a fix-and-flip loan program that ONLY charges interest on the funds that have been disbursed, which can result in thousands of dollars in savings.

Before securing financing for your next fix-and-flip project, Best Ever Listeners you must download your free white paper at patchofland.com/joefairless to find out how Patch of Land’s fix and flip program can positively impact your investment strategy and save you money.


TRANSCRIPTION

Joe Fairless: Best Ever listeners, how are you doing? Welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any fluff. With us today, Bernard Reisz. How are you doing, Bernard?

Bernard Reisz: Doing great! Great to be with you, Joe, and with all the Best Ever listeners.

Joe Fairless: Yeah, we don’t wanna forget about them too, you’re right! Welcome, Best Ever listeners, and welcome, Bernard! Welcome, everyone!

First, Bernard, we’ve got to tell the Best Ever listeners a little bit more about your background, because it’s definitely relevant for our topic at hand. Your background – Bernard is a CPA and Principal of ReSure Financial and combines tax, financial and investment expertise; basically, he’s an expert on self-directed IRAs and the compliance and usage of those self-directed IRAs and Solo 401(k)s for real estate investing and lending. He’s based in New York City, New York. His website, which is in the show notes, is 401kcheckbook.com.

We’re gonna talk about self-directed IRAs and compliance responsibilities, so if you have a self-directed IRA or are curious about self-directed IRAs and you know a little bit about it, well perhaps we’re gonna educate you (and me) on some compliance factors that we need to be aware of. With that being said, Bernard, do you wanna give the Best Ever listeners a little bit more about your background and your current focus?

Bernard Reisz: Absolutely. My background is CPA; I’ve been involved in consulting, I’ve worked with some of the country’s largest corporations, Fortune 500 companies, and with individual investors. With that experience I’ve learned a lot about investing, tax and finance, and have seen that investors and individuals can really benefit by being put in the driver’s seat, by taking control of their own finances, rather than being sold to. There’s a lot that people don’t see, and through self-directed accounts and real estate they can dictate their own futures.

Joe Fairless: Amen! So with self-directed IRAs, real quick – let’s not assume everyone knows what it is, so can you quickly define it? I think 95% of the people listening do, but can you quickly just give us an overview of that and Solo 401(k)s?

Bernard Reisz: Absolutely. These retirement accounts, contrary to what Wall Street leads us to believe, can be invested in nearly any asset. So the tax code doesn’t define what you can and can’t invest in your retirement accounts. The tax code outlines the few things that you can’t, and those are collectibles and life insurance for IRAs. Other than that, for your 401(k) defined benefit IRA, if you can imagine it, you can invest in it.

Practically, the most popular investment for self-directed retirement accounts are real estate and some other angle in real estate, be that tax liens or private lending. There are so many ways to get into real estate and to leverage real estate in retirement accounts; there’s a way for everybody to get involved.

Joe Fairless: How are the profits taxed when you make money on a deal after you invest with a self-directed IRA?

Bernard Reisz: Okay, so there are a couple of stages to analyzing that. Some of that relates to all IRAs and some of that is unique to self-directed IRAs or IRA LLC’s and Solo 401(k)s. In general, with IRA taxation and 401(k) taxation there are two routes – there’s what we call traditional contributions and then there are Roth contributions. With traditional contributions you’ve got a tax deduction for all the money that flows into your account. Everything grows tax-deferred, but at some point, usually around age 70, those funds have to start being distributed from the account, and then it’s taxed as ordinary income. So you get the power of 50, 40, 30, 20 years of tax deferral and upfront tax deduction, but there is ultimately taxation.

The other approach is the Roth approach. With the Roth approach there’s no current tax deduction for putting the funds in, but subsequently all gains come out completely tax-free. So you’ve got great deals, you’ve got things that have the potential for high appreciation, you want a Roth, because everything will be completely tax-free.

Joe Fairless: Yeah, so the other scenario would be if you think you’re gonna be making more money at age 70 than today, you’d wanna do Roth, correct?

Bernard Reisz: Absolutely. Because if you’re in a higher income tax bracket, then you wanna get all the Roth funds out completely tax-free. That’s exactly it.

Joe Fairless: What are some common questions that you get from your clients who ask about self-directed IRAs and doing a Solo 401(k)?

Bernard Reisz: One of the most common issues that comes up relates to self-dealing. So while it’s really exciting to be able to invest tax-free in real estate, there are certain limitations. One of the things that we like to make clear at the outset is that you can buy real estate with your retirement plan, but you can’t buy real estate from yourself or from your spouse or from a child or a parent. So the IRS has set this up to try to keep your present self from benefitting, and restricting the benefit to your future self.

So you can buy real estate, but you’ve gotta be aware of those restrictions, and that, I think, is a very common issue that comes up the first few minutes of every conversation.

Joe Fairless: What’s a use case where someone would be doing it incorrectly?

Bernard Reisz: Somebody may have a property that they see is profitable and there’s appreciation, and they get excited about moving that into a retirement plan and having that tax-free. That’s one of the things that gets people excited, which unfortunately cannot be done; you’ve got to buy the property with your retirement account in the first place.

Joe Fairless: Okay. If the property is owned by your retirement account, then that is either tax-deferred, or it’s taxed immediately and then not taxed on the exit, depending on either traditional or Roth.

Bernard Reisz: That’s exactly it.

Joe Fairless: Okay. What’s another question that you get?

Bernard Reisz: There’s another common question that relates to people that want to invest in the type of real estate that involves more than long-term buy and hold and flips; they wanna invest in hotel kind of properties, and that brings up an issue related to something called UBIT – Unrelated Business Income Tax. This I’d say relates to the tax question that we spoke about a few moments ago.

Retirement accounts are tax-free, but occasionally you could inadvertently engage in a transaction that can result in tax within the IRA, and that kind of tax is something called UBIT, and Congress enacted that to keep tax-free accounts from having an unfair competitive advantage over other active businesses.

Joe Fairless: I’m having trouble following you on this one. Will you give an example?

Bernard Reisz: Absolutely. When you get engaged in something that’s active business and it’s ongoing and continuous, Congress enacted a tax on tax-free accounts, and that would apply potentially on flipping real estate. So if you engage in lots of flips inside a retirement account, that potentially results in taxable income to the retirement account.

Another example would be the hotel scenario we’ve described, where you’re going beyond providing the traditional landlording services and providing room services and things of that nature, and the IRS says that’s not an investment business, that’s an active business.

Joe Fairless: Oh, okay. Do you have to be passive?

Bernard Reisz: You certainly do not have to be passive; on the contrary, there are great deals that are available even after the tax, and I think this is a great segue into some of the great benefits of self-directed retirement accounts. Why would you use your retirement account for real estate? The benefit is many-fold, depending on each investor’s stage in their real estate investing career.

For some that are experienced and they’ve got their team in place, they’ve got their strategy, they’re gonna do better in real estate, their returns are great and they identify great deals – they should be deploying all their capital in real estate; as much as they can get into it, that’s what they should do because they’ll do better there than anywhere else.

So even after these taxes, they’ll still do better in their IRA, putting their IRA into real estate, than having it in the traditional space.

Joe Fairless: And I just wanna close the loop in my mind on the unrelated business income tax – you mentioned flips and the hotel scenario… Let’s just go with the flip scenario. If you have an LLC that has, say, 100k and you flip a house and then you take the profits and you keep it in that same LLC that’s through your self-directed IRA and you just keep flipping houses… Say you do one a month – then that would be a red flag?

Bernard Reisz: It’s not a red flag. Actually, it’s perfectly legal, but there would be an income tax to pay, and it wouldn’t be an income tax of the individual that has the IRA, but the IRA would get its own EIN, and it would file its own income tax return to pay taxes on that income.

Joe Fairless: Okay, because it’s more of a business versus an investment.

Bernard Reisz: Exactly.

Joe Fairless: It seems like that would be a grey area, for if it’s a business-oriented investment.

Bernard Reisz: Very grey area, very murky. There’s really nothing in the tax law that outlines what the guidelines are for when something crosses a threshold to an act of business. There was a tax case that went to tax court in which there were nine flips done in the retirement account in a year, and there was no assessment of UDFI; there was no assessments of such tax. That doesn’t establish a precedent, but that just shows us that it’s really grey, and you could potentially go up to quite a few flips without incurring the tax.

Joe Fairless: Okay, now going back to the benefits… The first one you mentioned is if you’re good at real estate, you might as well put more money into real estate to make you more money, and that will likely outweigh the taxes you’ll pay. What are other benefits?

Bernard Reisz: That’s for the experienced investor. For many people that are just getting started, real estate provides an opportunity that’s not available in traditional markets. Traditional markets are fairly efficient – there’s something called efficient market hypothesis; you’re not gonna build incredible wealth in the stock market, and you’re gonna have to deal with the volatility.

Real estate can be an inefficient market; there are opportunities there that can be life-changing for people that get into the game with the proper team. The question is “How do you get in? Where is your capital?” Real estate requires some sort of capital, and IRA LLCs and Solo 401(k)s provide that entry point.

There are people who have capital tied up in retirement accounts that aren’t doing much – they can use that capital to make their initial foray into real estate; they can leverage the IRAs of other folks (of friends and family) that are not disqualified persons to get funding for deals. Beyond that, they could become private lenders. If you’d like to get into real estate and you know somebody that’s successful and is active in real estate and you wanna get his guidance, you can say “I’ve got an IRA. We’ll lend this money on your deals” and this way you can get your feet wet and learn about real estate and get into the game, which is really the only investment opportunity that can be really that life-changing.

Joe Fairless: You just can’t lend to your family?

Bernard Reisz: That is again tax code! So you can’t lend to what the tax code calls “disqualified persons”, and there are lots of family members that are disqualified, and there are lots of family members that are not disqualified. The list of disqualified family members would be a spouse, children and the spouses of children, and parents. Spouses of parents are not disqualified, meaning somebody that’s not a biological parent and married one of your biological parents. Siblings are not disqualified, friends are not disqualified, boyfriends and girlfriends and domestic partners are not disqualified, nephews and nieces, in-laws… So the list of people that are related that are not disqualified persons is pretty broad.

Joe Fairless: Is checkbook IRA another way of saying self-directed IRA?

Bernard Reisz: Definitely not. Checkbook IRA is an exciting way to take self-directed IRAs to the next level, to make them really flexible and really cost-efficient. When we talk about a regular self-directed IRA, we’re talking about an IRA that sits at a custodian; the custodian controls the funds. Every single transaction, every single document has to be processed by the IRA custodian. That can take time, that incurs fees.

Each time you’ve got a deal that you’re pursuing and you need to get that deal before somebody else does, which happens in real estate all the time, particularly looking at REOs, share of sales, you’ve gotta be nimble and move quickly. Having it at a custodian can be an obstacle.

The checkbook IRA is a very creative workaround that puts you in total control of the funds. To get a checkbook IRA involves setting up an entity that’s held by the custodian, so we usually use an LLC. All the funds move into that LLC; that LLC has a bank account over which the IRA owner has signature control, so it can be run like a regular business. Is that clear?

Joe Fairless: That is clear. What type of liability do you open yourself up to as the owner of the Checkbook IRA versus having a third-party handle all of the stuff for you?

Bernard Reisz: The potential of engaging in a prohibited transaction increases. You’ve got total control, and when you have those funds you wanna make sure you don’t accidentally use the money in that bank account to buy groceries, you don’t wanna use that for any personal funds… It’s gotta be clear that those are IRA funds to be used for investment purposes only. Don’t accidentally or inadvertently use them for yourself.

Joe Fairless: How come retirement accounts are called tax-free when in fact you get taxed, either on the entrance or on the exit?

Bernard Reisz: There is a tax deferral. Roth IRAs we’d say are tax-free on the earnings… When we say tax deferral, among us, financial professionals, we immediately know what that means. To most of the people out there that are not CPAs, the term deferral would throw them off, but it’s a way of saying that there are incredible tax benefits to using these accounts.

Joe Fairless: So it’s not accurate, because it’s not actually tax-free.

Bernard Reisz: Yeah, a traditional IRA is gonna be taxed on the way out; it’s tax deferral. Roth IRAs are tax-free on all the profits and gains, but the money that goes into it is not tax-free.

Joe Fairless: Right. In some form or fashion you’re getting taxed, in any of these accounts.

Bernard Reisz: Yes, absolutely.

Joe Fairless: Okay. Because I always say as a multifamily syndicator our investments are tax-deferred, and then if I hear not an investor but a tax person say their investments are tax-free, I just was always wondering that question. So they’re all tax-deferred.

Bernard Reisz: They’re all tax-advantaged. That’s the term I try to use, tax-advantaged.

Joe Fairless: Yeah, because the terminology might be a little bit different, depending on which one. What is your best real estate investing advice ever for investors, as it relates to your background and your expertise?

Bernard Reisz: I’d say real estate is something you’ve gotta get into; you’ve gotta get an angle, you’ve got to associate yourself with real estate pros in your neighborhood, and you’ve gotta take that leap, and you’ve gotta access the capital that you have available to you, and there is an abundance of capital that’s locked up in retirement accounts. Over 25 trillion dollars is sitting there in retirement accounts. That’s greater than the US national debt, which may change before we got off this phone call… But there’s just so much power locked up in there, and you should use that to get into the market.

Joe Fairless: Are you ready for the Best Ever Lightning Round?

Bernard Reisz: Let’s go for it!

Joe Fairless: Alright, let’s do it. First, a quick word from our Best Ever partners.

Break: [[00:19:21].13] to [[00:20:19].21]

Joe Fairless: Best ever book you’ve read?

Bernard Reisz: Phishing for Phools. That’s by George Akerlof, Nobel prize winner. He goes out and explains how there are so many places in the financial markets that we are being taken advantage of, and you’ve got to be aware and cognizant of that and look out for yourself.

Joe Fairless: Best ever resource other than that book that we can be educated on self-directed IRAs, Solo 401(k)s, checkbook IRAs, things like that?

Bernard Reisz: That’s a good one. I’d say we try to put up on our website a wealth of information, and we’re always refreshing it; we put links to the tax code, we go down deep into details, and we’re always refreshing that information with new angles and new ways to go about it.

Joe Fairless: And there’s a link to that in the show notes page. I didn’t expect to give you a layup, but hey, I’m on your side and you do have a bunch of good stuff, so we’ll go with that. What is a mistake you’ve seen one of your clients make as it relates to your area of expertise?

Bernard Reisz: I’ll give you more than one answer if I may, because I really want the Best Ever listeners to be aware of this. When you’ve got an IRA LLC, you may go to Home Depot, you’ll maybe go to a store and they’ll offer you a credit card. Don’t take it. That can be a prohibited transaction, because you’re taking and personally guaranteeing the liabilities of your IRA.

Joe Fairless: That’s a good one. You said you have another?

Bernard Reisz: The other would be when opening your IRA LLC account, I discourage funding the account with personal funds; that could potentially be interpreted as a prohibited transaction. Often times you go to a bank and you open the account for your IRA LLC or Solo 401(k) and the banker says, “Okay, you’ve gotta put some money into the account.” So you’ve gotta tell them, “We’re gonna move the money from my custodian. It’s coming over. I don’t wanna put personal funds in here.” We, as part of our services, we deal with the bankers and we iron that out.

Joe Fairless: That’s great. Those gotta be two common mistakes that come up, because those are kind of spur of the moment types of decisions people need to make, versus a decision where they’re in front of their computer, e-mailing or can call; these are in-the-moment type of things.

Bernard Reisz: Yeah, that’s it… And we’ve gotta be there for our clients to make sure these don’t happen and pre-empt that before they occur.

Joe Fairless: Best ever way the Best Ever listeners can get in touch with you?

Bernard Reisz: Best way to get in touch with me is direct e-mail, Bernard@ReSureFinancial.com. We’d love to hear from all the Best Ever listeners and help everybody out in the system and get in control.

Joe Fairless: Thank you for being on the show. I’ve done many interviews about this subject, and you’ve taught me some things that I haven’t learned in other conversations, so I’m grateful for that and I know the Best Ever listeners are as well.

Some things we can’t do, the last two things you’ve mentioned, that is don’t take a credit card out at Home Depot or wherever, because you’ll be personally guaranteeing against that, and it might be considered a prohibitive transaction. Then also when you open an account with your LLC at a bank, don’t personally fund it – again, a prohibited transaction, or it might be considered that. And then some limitations and some benefits as well, which we’ve talked about.

Thanks for being on the show. I hope you have a best ever day, and we’ll talk to you soon.

Bernard Reisz: Joe, thank you for having me, and thank you to all the Best Ever listeners for listening, and I look forward to being in touch.

JF1206: He Doubled His Business In 18 Months After Losing $30 Million In Contracts with Carl Banks

Listen to the Episode Below (41:26)
Join + receive...
Best Real Estate Investing Crash Course Ever!

After a very successful career in football, Carl continued his success trend in business, launching G-III Sports. With his new business, he made outerwear for the NFL. Until one day when reebok bought the licensing rights to make the outerwear. Rather than giving up, cutting costs, and downsizing, Carl and his team hustled working with smaller shops and in return only lost about 10% of his business. Carl knew that Reebok could not make the outerwear as good as they could, and in 18 months G-III Sports was awarded the licensing for outerwear again, which now doubled his business vs. what it was before. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

 

Best Ever Tweet:

 

Carl Banks Background:

-2x Super Bowl Champion/NY Giants Legend, NFL’s 80’s All-Decade Team, and Michigan State University Hall of Famer

-President of G-III Sports, the largest licensed sports apparel company in the world that produces for the NFL, NBA, MLB, NHL, etc.

-Founded G-III over two decades ago and responsible for bringing back the iconic Starter satin jacket.

-Travels with NY Giants as an on-air broadcast analyst and serves as a mentor to the team

-The Carl Banks Foundation raises money for a variety of causes, most notably autism research

-Based in New York City, NY

 


Made Possible Because of Our Best Ever Sponsors:

Are you looking for a way to increase your overall profits by reducing your loan payments to the bank?

Patch of Land offers a fix-and-flip loan program that ONLY charges interest on the funds that have been disbursed, which can result in thousands of dollars in savings.

Before securing financing for your next fix-and-flip project, Best Ever Listeners you must download your free white paper at patchofland.com/joefairless to find out how Patch of Land’s fix and flip program can positively impact your investment strategy and save you money.


TRANSCRIPTION

Joe Fairless: Best Ever listeners, how are you doing? Welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any fluff.

With us today, Carl Banks. How are you doing, Carl?

Carl Banks: I’m doing well, thanks for having me.

Joe Fairless: Well, my pleasure and nice to have you on the show. A little bit about Carl – he is a two-time Super Bowl Champion with the NY Giants, he is a New York Giants legend, he was on the NFL’s 1980’s All-Decade Team, and he is a Spartan from Michigan State University. He is a Michigan State University Hall of Famer. You’re from Flint, Michigan, right?

Carl Banks: Correct, yes.

Joe Fairless: I was born in Flint, Michigan.

Carl Banks: Really?

Joe Fairless: In fact, in about a month I’m gonna be in Flint, visiting my grandmother who is 102 years old.

Carl Banks: Oh, that’s awesome.

Joe Fairless: She’s still living in the same house that she’s lived in for 60 or 70 years.

Carl Banks: Boy, I know there’s some stories she can tell.

Joe Fairless: Oh, boy. Yes, yes, yes. So Carl – not only from the football background, we’ll put that aside for a second… Holy cow, Carl has been busy post-football career; he founded G-III Sports, and G-III Sports is one of the largest license sports apparel companies in the world that produces for the NFL, NBA, MLB, NHL. They’re the number one outerwear sports licensing company, and we’re gonna talk about that, as well as some other entrepreneurial endeavors. He also still travels with the New York Giants as an on-air broadcast analyst, and serves as a mentor for the team… So here’s my first question for you, my friend. Well, first off, welcome to this show!

Carl Banks: Thank you for having me.

Joe Fairless: You were a grave-digger in high school… How did you get into that?

Carl Banks: Well, there’s a few cemeteries in Flint, Michigan. Gracelawn Cemetery was the one that shows me, I guess, there was a really great — I call him a community leader. His name  was Peter [unintelligible [00:04:20].13] and he tried to make sure that all the young athletes around town just kind of stayed out of trouble; he would offer summer jobs. He was at one of my games, and it was probably my junior year, going into the summer – it was the summer league basketball – and he said he had a job for me.

I came, and he gave me a shovel, pointed me in the direction to go, but… There were a lot of us out there, but it was so interesting because the whole grave-digging thing, with the people that you work with… I think there was kind of a method to his madness, because he had us working with people that were just out of incarceration, so people that were trying to get their lives back together…

So you’re sitting there and you’re digging graves, and you’re having these long conversations with people that are giving you really great life advice… Because people are saying “You don’t wanna do these types of things, you don’t wanna be with these types of people. This is what got me in trouble”, and some of these young men — my father was a corrections officer, so he knew some of them. So it was really interesting, but it was a great character-building experience, so much so that I continued to do it throughout college. It was great.

Then Peter was just awesome, because he would come, he would drive through, pick me up, take me to lunch, and we’d have these life conversations, and how to deal with people and building people skills… It was just awesome, that whole experience, and I always joke — when people ask me about it, I say “People are dying to get in there.”

Joe Fairless: [laughs] Well, with some of the conversations you had with the people who are just getting out of jail or prison, do you remember any particular piece of advice that really resonated with you?

Carl Banks: Flint was a really small community, but I’d say the one thing that I never forgot – I don’t know if it was Peter that told me, or one of the ex-convicts… He said, “Your eyes remember what your ears forget”, meaning always stay alert, always be observant of people and your surroundings.

Joe Fairless: How have you applied that to your life?

Carl Banks: It’s so interesting, because in business, just like in sports, what I call phatic communication or non-verbal communication – you can read a lot from a person just by observing them, and sometimes you’ve gotta be less of a talker in business and more of a listener and more of an observer. And in sports, because I played on some very good teams, I was able to – when I knew I could impose my will on someone – watch their behavior; I could tell when someone gave up, I could tell their level of determination. The harder you played, the more tips they would give you.

If a guy had to block you, you could tell the ball was coming to my side of the field, because the guy would be a little more nervous than he would if he didn’t have to block me. Sometimes you find that in business people are over-talkers sometimes, or if you ask a question and you watch behavior, you can learn a lot about people, so that’s why I observe and I listen.

Joe Fairless: I love that, that’s incredibly helpful for us as entrepreneurs. You mentioned that – and this will be the last grave-digging question I have for you, but it’s really fascinating… You mentioned you continued it when you were at Michigan State – did you just find a new cemetery to go dig in, or did you go back to Flint and dig at the same place?

Carl Banks: I stayed at Gracelawn Cemetery.

Joe Fairless: Okay.

Carl Banks: And I did everything, too. It was grave-digging, landscaping, I ended up working backhoes and tractors… It was everything, but you had to find lost grave locations, you relocated people to their family plots… It was all kinds of stuff, and one of the weirdest things was when you had to relocate someone that’s been buried for a very, very long time; the family or the kids bought a plot and they want everybody together, and you’ve gotta go dig someone up… And once you dig it, you can only go so far, then you have to go by hand and scoop out turf, and there’s water and all kinds — it’s just like the creepiest thing…

Joe Fairless: Yes, it is…

Carl Banks: But it was fun… [laughter] Believe it or not, it was fun.

Joe Fairless: Were there any self-talks later in life, whether in the NFL or post-NFL, doing the successful endeavors that you’re doing, where you think “You know what, I hand-dug out an existing grave, I can do XYZ.”

Carl Banks: Probably more often than you can imagine. Because I think it also taught hard work. I’m not afraid to get my hands dirty and dig in, literally. Pun intended. But there are times where you’ve got a decision to make, or you’re training — when I was in sports, yeah, I would say I’m doing pretty good for myself. I’ve been around death, I can do just about anything.

Joe Fairless: Let’s talk about a tough decision, as an entrepreneur, that you’ve had to make. Can you tell us what that was and just the thought process that you had with it?

Carl Banks: I would say in the late ’90s the licensing landscape changed, and Reebok became a major licensee for all categories in the NFL. They just pretty much bought the entire business. So I was a niche business at that time, I was strictly outerwear, and I was informed by the NFL that all of my major retail rights were taken away and gonna be granted to Reebok.

Now, I knew Reebok did not have the outerwear core competencies that we had, and yet I lost the business to them because they were the highest bidder, and obviously outerwear for someone who’s making jersey shirts and hats [unintelligible [00:10:36].03] but it’s a very important category at retail. So I spent probably two or three meetings, myself and Morris Goldfarb, the CEO of G-III – we went to Boston, we sat with their executives, Paul Fireman, and we said “Okay, so if you guys are gonna do outerwear, we do it better, why don’t you sub-license us to do it?” He said “No.” So ultimately, their goal was to put us out of business. So my decision that I had to make at that moment was “Was I going to allow this company who is much bigger than me in the sports area to put us out of business, or to strategically adjust?” Because I sat with Morris Goldfarb and he said “Look, I may have to shut the division down, because I don’t know where we’re gonna get this business from.”

I would say the number one thing that kicked in for me, and I basically said to myself while I was in the meeting with him, I said to myself “What would Belichick and Parcells do?” Because they’re the masters at knowing what you are this year, and I’d written both of them letters thanking them for being kind of a blueprint for how I approach business from year to year, from week to week.

So what I did was a little bit of deductive reasoning. I knew that Reebok did not make outerwear and they didn’t do it proficiently, so even if they did, it would be one or two pieces. So what I said I would do is adjust the business. And I just looked at the CEO and said “We’ll be okay”, because I knew if they didn’t service the customer, it was gonna be a problem with the leagues, because the customer is gonna say they’re not getting outerwear and G-III Sports was getting me everything I wanted. And if you’re talking about a 20 or 30 million dollar business at the time, that’s a lot. And you’re taking product out of the market. So they bought the rights, they warehoused them, so I said to my CEO, “We’re gonna be okay.” But in the interim, I still had to find business, right?

Joe Fairless: Yeah.

Carl Banks: So what I ended up doing, where they took the major retailers away from my portfolio, there were a ton of independent guys, local market guys, team pro shops, right? So my ability to go out and go find the local market guys to buy my outerwear was the greatest thing I could have ever done, because I expanded my business in preparation for the rights to come back, because all of these mom-and-pops got the product, and they were the only ones to have outerwear for a couple of years.

Now, the big retailers were complaining to the NFL, like “I can’t even get outerwear when all of these other mom-and-pops have outerwear.” I’m saying, “Go talk to Reebok, we have nothing to do with it.” So eventually, I think about 18 months into the deal, we probably lost I would say 10% of our business. So we had to hustle, right? But we found a different way, and that was kind of — if I had to look at the lessons I learned from Parcells and Belichick, those are the things. Each week, each year it’s “What are we? What do we have available to us? Now let’s find a way to be successful with what we have”, because the old way doesn’t work given the tools we have available to us. So I immediately went into that, and that’s something that businesspeople didn’t experience. It takes a series of meetings, and the first thing you think to do is cut-cut-cut, slash-slash-slash, and I’m thinking “No, let’s grow; here’s an opportunity”, because these were guys that weren’t getting my product that wanted it, now I can give it to them exclusively, and make the other guys want the product as a result of that.

My business was down, like I said, about 5%, maybe 10%, which wasn’t bad, given I just watched 30 million dollars worth of business go to someone else and I had to refigure it out, but I was able to cultivate a new customer base, and Reebok and the leagues, all of them (the NBA and the NFL) were hearing it from the major retailers – “You can’t do this. You can’t keep this–” and Reebok could not make the products at the level we could, and they were offering one jacket that wasn’t very good. And I got into the business being a niche player in outerwear, because I was able to make jackets at a level where they’re presenting ten T-shirt, I would go to JC Penney’s and present 20 jackets as if they were T-shirts; I was able to give each customer their own jacket, and that’s how I got in the business with NFL… But I basically went back to my roots.

When the big players started to call the NFL and say to them “You can’t not keep this product out of the market”, Reebok had to either make the product or surrender the rights, and we ended up getting the rights back in 18 months.

Joe Fairless: Wow.

Carl Banks: What ended up happening, I grew a business and then I got the 30 million dollars in business back, so it doubled my business just like that in 18 months.

Joe Fairless: Knowing that you went through that process and the results from the process, would you ever trick yourself into thinking that something like that is about to happen again?

Carl Banks: It is.

Joe Fairless: Okay, will you elaborate?

Carl Banks: It’s a thing called Amazon. Amazon is great, but they are squeezing brick and mortar… So yeah, it’s happening. We’re making some adjustments, and the experience is very important if you wanna be relevant beyond online purchasing; you’ve gotta create an experience, you’ve gotta create stories that work, that can’t be articulated by looking at a computer screen. We’ve been able to do that, and we do business with Amazon, we do business with Fanatics; both are good partners, but their stated goal is to take over the world, and as long as we’re part of that, that’s fine, but we have other partners that we wanna keep in our mix as well that are brick and mortar, and the only way you’re gonna do that is people go to brick and mortar for the experience; if you’re buying a coat, if you’re buying your favorite team hat, jersey or shoes, it wasn’t grab and go… That’s what online is right now. There is no experiential component.

I’ve just read about the artificial intelligence of the Echo and Alexa, where they’re gonna be  beaming and looking at your body and seeing what you wear, and how to do that, but that’s just not the same. If you continue to create the experience and if the retailer can adapt to the changing taste of the consumer, I think we’ll be fine. But there are certain things that you can’t do online that you can do in person, and also a lot of these guys have to buy brands in order to stay relevant, because they don’t wanna make product; they wanna sell product, so they have to buy other brands to sell the product, and sometimes it’s just like they bought whole foods, because they know that people like to feel their vegetables; they like to look at the fish before they buy it. They can’t buy that online. So it’s got a proof that everything can’t be sold online; you’ve gotta have some level of experience.

Joe Fairless: On the entrepreneurial note, and really just the hustle and the foresight note, I was reading a story about you and it mentioned that you convinced a radio station to allow you to host a post-game show while you were playing for the Giants. So you would shower after the game and then go talk about the game immediately after, on your show, and most of your teammates, I imagine, were not doing that.

Carl Banks: None.

Joe Fairless: Okay, none. [laughs]

Carl Banks: There was no one doing that at the time. There was no one in the league doing what I was doing at the time, and it became kind of the format for what we see in post-game shows now – player-hosted shows, player reports… That was all a result of what I did, and I had great help, because again, when you talk about being proactive and opportunistic and kind of having that grind — I got Coca-Cola to be a sponsor of it, but how it happened… I was speaking — I’m trying to think where it was; it was in South Jersey like Exit 9, and I was speaking at a kid’s banquet, and the father came up to me, his name was Wayne Vogel, and he was from Coca-Cola.

So we struck up a conversation, I said “I’ve got this idea, I wanna do a post-game show… Would Coca-Cola be interested?” Long story short, he took me to meet Jim Patton, his boss, and Patton had this idea, too; they had to try to sell a two-liter bottle of Diet Coke, and it was the first time they were launching that, so I was a big guy, it worked for them, because I became kind of their poster guy for this two-liter bottle of Coke, and which kicked off an entire campaign around the entire country with the NFL, and then Pepsi signed Shaq as a result of that.

Joe Fairless: Shaq should thank you, by the way.

Carl Banks: Yeah, so I got Coca-Cola to say, “Okay, we will be your sponsor.” So I walked into the radio station – and by the way, this is the same way I operate now with my radio show here in New York on WFAN CBS Radio… I had a Coca-Cola in hand, it became the Coca-Cola Carl Banks Report, and the Coca-Cola Carl Banks Post-Game Show. So I was like in radio while I was working. No players were doing any radio shows during the seasons, and they certainly weren’t doing postgame shows. That’s kind of what laid the groundwork for me to be a broadcaster, but I loved the philosophy of having a sponsor in hand and basically bartering your air time… But it’s great, especially if you’re good – and I think I’m pretty good at what I do, but here I have a postgame show, I do a Monday and a Friday show here on WFAN, and my main sponsor is KIA, and KIA wasn’t in sports.

I’m not gonna say I’m solely responsible for putting KIA in sports, but I was at [unintelligible [00:21:18].29] and I needed to rent a car, and they gave me what I thought was a Toyota Land Cruiser and I find out it’s a KIA, right? I’m like “This is great!” and I was ranting and raving, so I got back to the radio station and I said “Can someone call someone at KIA?” and I recorded this testimonial, they sent it to them, and we’ve had a relationship for like seven years now.

Joe Fairless: Wow.

Carl Banks: But then, KIA is now in NBA, they’re in NFL, they’re a big part of sports now. LeBron James is a big spokesperson for them, but the experience and being proactive in things that you like is really cool. I know I didn’t answer the question, but I just wanted to share the experience.

Joe Fairless: No, you did! And I love that, because I have a follow-up question on that. You mentioned it was called a Coca-Cola Carl Banks Report…

Carl Banks: Yeah.

Joe Fairless: No one else was doing it…

Carl Banks: Correct.

Joe Fairless: I’m gonna make some assumptions now. I am assuming that your teammates were like “Dude, you’re doing what after the games?” and when you made a  mistake in the game, would the coaches and/or players be like “Well, Carl, if you weren’t doing all this extra stuff, then you would have more time to focus on the game and what we should do.”

Carl Banks: We had a little bit of that. I got my chops busted a  little bit, but that’s even more pressure to be good. And again, I was on some really good teams, so there was always this element of accountability; we always had to be accountable to each other, so effort was important. And if I made a few bad plays in the game, I had to fess up to it. That was the way our team was built and the way each component that Bill Parcells built our defense and Belichick ran it… But if something happened, we pretty much happened whose fault it was, because that’s just the way we were set up. We were pieces that worked together, so if a pass play happened or  if a run play happened, you couldn’t come off to the sidelines and tell your teammates, “Well, I did my job, but something freakish happened” – no, we knew, everybody knew.

So if I screwed up, I had to fess up right there, which made it I guess even more authentic for me in a postgame show, because I had to go on air — I didn’t have a 24-hour rule; I had to go on and fess up right on air… “Hey, look, they scored a touchdown because they ran on the outside by me and I didn’t do my job.” I think that’s what makes me such an honest broadcaster to this day, is that I can actually look at something and say whose fault it was without making it personal, because I had to do it myself.

Joe Fairless: You are more so proactive and opportunistic than most people. You’re digging graves, doing a job in high school that most people wouldn’t wanna do for their whole life, let alone in high school. You made the NFL, excelled, while in NFL you took on another job that evolved into other stuff and now post-NFL you’re doing really well with your company… What would your advice be to people who don’t naturally have your level of proactiveness in their nature?

Carl Banks: I would just say be curious. Developing people skills, believe it or not, it started for me while working in the cemetery, because I was around different types of people and I had to ask questions, I was asked questions, and I had to learn certain things. So I would say everyone who is not proactive or they don’t think opportunistically, I’d say be curious, always be intellectually curious; you wanna learn something about something or about somebody, and that one question will lead to the next answer, to the next question, and then that’s growth, and then you wanna know something else about something, because that’s how it really starts.

You’ve gotta develop some level of communication skills; you don’t have to be a great orator, you just have to be curious. You’ve gotta be curious and you wanna have interest in people, and I’m probably, when I’m not around people, the most introverted person ever. I enjoy doing nothing better than anybody, but when it’s time to have that conversation or to follow up on something that I was reading, I’m all in. I wanna learn as much as possible.

Joe Fairless: Based on your experience as an entrepreneur, what is your best advice ever for other entrepreneurs?

Carl Banks: As painful as it can be, do not be afraid to fail, because entrepreneurism is about exploring every idea you have. That’s what an entrepreneur is – it’s about blazing a trail, it’s about breaking new ground, it’s about having a better idea. That’s what an entrepreneur is. He finds either a better way to do it or he has a better idea or he has a unique idea. Sometimes you find out that your idea is not unique, and you either abandon that idea and go to the next one, or you find a better way to make your idea even more innovative, but it can be painful. Even when you’re successful, your one or two ideas for expansion could fall flat on its face, and that’s painful, but you’ve gotta be able to say “I’m not afraid, because I’ve got many more ideas to come, so I’m just gonna keep coming at you.”

Joe Fairless: Well, let’s stick with the painful theme. What is a painful flop business-wise that you’ve been responsible for accomplishing?

Carl Banks: [laughs] Well, this was just recently. I had an idea that I was trying to work a licensing deal with Classic Media, and they have just the greatest library of cartoons, Rocky and Bullwinkle to Richie Rich… They have this incredible catalog, and I thought I would be able to take those images and really create some fun stuff on apparel, because we’ve seen it, junk food has done it with vintage, from Coca-Cola to 7Up, whatever it is, right? And I thought the time was right in the market.

I invested a lot, hired a lot of people, we created some incredible product, and nobody wanted it, nobody understood it, no one wanted it, and it’s unfortunate, because I still have some great designs that eventually — and I’ve been ahead, that’s how I also look at it too, sometimes I’m ahead of the curve in some of my ideas… But that was a very expensive failure, very, very expensive, because you get licensing rights and they gave me everything, I gave them a great presentation, I built a great product, I even had product in the warehouse, and just no one wanted it, and that was interesting, because I thought the timing was perfect for it.

It happens, but I still have great product and I know at some point if I have to revisit it with Classic Media, I’ll be okay. I think they’ll be ready for it.

Joe Fairless: If presented a similar type of opportunity, or if you have a similar type of idea, how would you approach it differently, knowing what you know now?

Carl Banks: I don’t think I would approach it any differently.

Joe Fairless: There’s no way to test that before sinking in a bunch of money?

Carl Banks: Sure, you have to spend money to build it, right? But you do your market research, you see what’s trending, you see where fashion is leading, and you say “Okay, this fits”, and it didn’t. But that’s okay, because it’s about instinct. Entrepreneurs have to have instinct. You can’t be numb. If you feel it and it feels good and you feel great about the research that you’ve done, you feel great about the integrity of what you’re building, you go for it.

I had the same instincts on the Starter brand, that’s extremely successful for me right now. I wore it when I played, I was a spokesperson for it, I was building a jacket program, and I wanted to get the starter label on it because we were recreating the scene from Coming To America with Eddie Murphy and Arsenio Hall; Eddie had the Mets on and Arsenio had the Jets on, and they had all the buttons and everything on it, and I said “I wanna do this, but I want it authenticated”, and I was able to reach out to the folks at Iconix, the IP holder, and asked for permission to do it. I said “You know what, I think it’s time to bring this entire movement back.”

So we worked together with Iconix, I got the license for the brand, and it has been on fire. Instincts felt good, I built it the right way, I made sure that the integrity of the product was as authentic as it used to be, and I knew there was a generation of millennials and even people that are of my age group or a little younger that had an emotional connection with the brand. This was a brand that resonated even before Nike started to enter into sport. So there’s heritage, these are the guys that created what we know as sports fashion, as sideline apparel. These are the guys that were innovators, they created that, so I brought it back and it is on fire right now. I’m very excited and I’m very glad I trusted that instinct as well.

Joe Fairless: Oh yeah. You’ve got the pullover Starter jackets…

Carl Banks: That’s the breakaway, yes sir.

Joe Fairless: Yeah… I do have a place in my heart for that, and I think I will be getting one after our conversation.

Carl Banks: Yeah, you should break your old one out, but yeah, Starter.com… We do a great job. But the number one thing I wanted to do when I got permission to do it from the NFL, and then I went to Iconix and they granted me the rights to the license, the first thing I wanted to do was find out where the product was made, so I looked in the old jackets to see what country of origin they were made in, and then we tracked down and I have three people on my staff that actually worked for Starter during that period.

They knew some people, and we tracked down the original factory, and we’re still working with that factory to make sure that we have some level of authenticity to it.

Joe Fairless: That’s incredible.

Carl Banks: And how about this? This is something for entrepreneurs to know about, too – I also went to the vintage dealers, because those guys are so true to the essence of the product, because they sell it… I became really good friends with — there’s a guy here in New York, he has a vintage store called Mr. Throwback, and he specializes in Starter jackets. So I went to him to make sure I had all the details right, and if there was a detail off, he talked to me about it and we got it right. So also bring an outside, expert point of view into what your thought — you’re not surrendering your thought process, you’re just perfecting it.

Joe Fairless: The final question — actually, I have two questions… This is the penultimate question – how do you identify the people to be on your team as advisors? Because I’m sure through your connections throughout the years you’ve got a rather large rolodex, so really the challenge is identify who you should really closely associate yourself to?

Carl Banks: Well, you find out what people’s core competencies are. It could be people that you admire for what they accomplish. You start to pick their brain, you have conversations. Again, like I said, eyes remember what your ears forget. So if you’re very observing and you see how people do things, you learn about them and you say “Well, maybe that can apply to what I do.”

The same principle applies when I hire someone. I still to this day — I didn’t think I was that tough, but my current men’s activewear designer, I almost sent to home in tears, because I kept making her do projects and I kept challenging her because I lost a very good designer, and I was really in a good space in terms of how my product looked and where it sold at retail, and I kind of had carved out a position, and I didn’t wanna lose ground to my competition, and I was fond of the designer I lost.

So the next person in – she’s not a kid, she’s a young lady… But her mother was in and she was like, “Mommy, would you tell him how hard I took it?” I’m like, “I didn’t think I was that tough, but I just wanted to know that you were good enough and that we were gonna have great product.” I could not say more great things about her to this day, because she is just incredible. She actually took our activewear to a whole other level.

Joe Fairless: Wow. As a business owner and entrepreneur it’s incredible what you’ve accomplished, and I’ll give my summary here in a second. But before I do, what if anything would you like to mention that we haven’t talked about?

Carl Banks: Well, I would say you’ve gotta have a work/life balance. I think people that are so driven – and I’ve been there before – they don’t have a life. I think health is important, I think you have to do something you like outside of the things you wanna create, like work… Because entrepreneurs often multitask from different ideas, but I think a healthy mind and body is important as well, and I think you need to have balance in that, and if you’re an entrepreneur with a family, you definitely need work/life balance there, because the sober reality is your failure sometimes can bleed into your personal life, and you don’t want that.

You wanna have a balance where people are rooting for you, you wanna create cheerleaders. If you fail, you don’t wanna come home and be looked at as a failure; you want everybody bought in. You wanna have a life where everybody’s proud of every effort that you have, so that they’re your cheerleaders and they’re like “Okay, what do we wanna do next? If this one didn’t work, we’re gonna do the next thing.”

Joe Fairless: With your company, how can the Best Ever listeners check out the products that you licensed? Where can we go to look at that?

Carl Banks: Well, we have a website, giii.com, but starter.com is another place. Fanatics – if you’re just going to Fanatics.com and you type in any of our brands, meaning Starter G-III For Her, G-III By Carl Banks, you’ll see all of our products. I do Hands High for Jimmy Fallon, I’m partners with Alyssa Milano who is the number one fashion, maybe sports apparel brand, Touch By Alyssa Milano… So she has literally changed the game.

We met probably ten years ago at a trade show and she said she wanted to do women’s apparel that didn’t look like men’s product, that was (as she said) “shrink it and pink it.” So she had an idea – talk about an entrepreneur – she said “This is what I want it to look like. Give me a designer, give me staff”, and away she went. Now I think she is the leader in high-end fashion for women’s sports apparel.

Joe Fairless: Wow. I will include those links in the show notes page. Carl, lastly, as someone who — I believe your company works with investors, right? I see an Investor Relations–

Carl Banks: Yeah, our corporate company, G-III Apparel is a publicly-traded company, that’s correct.

Joe Fairless: Got it. And I guess my last question is what was the decision-making process to make it a public company versus keeping it private?

Carl Banks: Well, I was not part of that process. Morris Goldfarb and his father and his brother are the ones who took the company public. I joined the company probably two years into that process. They had just gone public. So what I brought was a whole different mindset, because they weren’t even in the licensing business at that time. They had just become outerwear company of the year for some retailer on a Bomber jacket, and I joined the company with the sports licenses, which became a model for how the company would operate, because the margins were so much better… Now you’re dealing in brands instead of commodities.

So now, if you look at the G-III portfolio, outside of my sports business, you’ll see names like Calvin Klein, Karl Lagerfeld, Andrew Marc, Kenneth Cole, Cole Haan, Levi’s, G.H. Bass are all brands that we corporately license or own outright. We own DKNY (Donna Karan) now, we own G.H. Bass, we own Karl Lagerfeld… So we have brands now so that we can remain important at the retail level, and just not a commodity black or brown dress, or suit, or jacket.

Joe Fairless: Carl, thank you for being on the show and sharing life lessons along the way…

Carl Banks: I appreciate it, man.

Joe Fairless: This is incredible, very insightful, and I’m very grateful that we were able to catch up and learn more about your approach, from the very beginning — or from the beginning of when we started our conversation, where you talked about lessons learned from your summer job, digging graves, to just your overall approach where you can [unintelligible [00:39:06].29] a lot from people by observing them; sometimes you wanna be less of a talker and more of an observer, and how you’ve applied that towards business. Sometimes people talk too much, they’re overtalkers, and perhaps there is something that is lurking just beneath the surface there, whether they’re insecure or hiding something or whatever.

Then life challenges or business challenges – you had Reebok come in and took away basically a 30 million dollar account. You had to hustle, you went after the private companies and lost only 5%-10%, but then you got it back 18 months later, plus you’ve got all these private companies, so you grew tremendously through that experience… And the whole thought process, what would Belichick or Parcells do… It’s funny, I had a challenge in my business when I was starting out and I thought “What would a billionaire do?” So it’s still having the thought process of someone else at a higher level at the time of where you’re at would be doing…

And then being proactive and opportunistic… Holy cow, playing a football game and then doing the radio show when no one else is doing it, then bringing on sponsors… And if we don’t have that level of ambition and proactiveness that you naturally have, then your advice is to be curious, ask questions and learn. From learning, you will grow, and then that leads to more questions, and naturally, there’s more growth.

Thanks for being on the show. I hope you have a best ever day, Carl, and we’ll talk to you soon.

Carl Banks: Alright, man.

JF1169: #2 Overall 2002 NBA Draft Pick & Entrepreneur Jay Williams: How To Reinvent Yourself When In Life Altering Situations

Listen to the Episode Below (38:58)
Join + receive...
Best Real Estate Investing Crash Course Ever!

As the #2 overall draft pick in 2002, Jay had his future all planned out. Until one day when he hit a utility pole at 65 MPH on his motorcycle – his life was forever changed. Rather than let his situation get the best of him, he turned it around, writing about what he went through and helping others in their tough situations. Today he’ll discuss how to come back from tough times, as well as giving us business and investing tips. Jay isn’t where he is today because of his athleticism, he truly made himself into a phenomenal business man, someone we can all learn from. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

 

Best Ever Tweet:

 

Jay Williams Background:

-Multi-talented ESPN college basketball analyst, motivational speaker, and Former NBA star

-Considered one of most prolific college basketball players in history, and the second pick in the 2002 NBA draft

-While a motorcycle accident pivoted his promising NBA career, he saw the adversity as a blessing that taught him    how to thrive/inspire others

-Now applies his positivity and signature personality to broadcasting, business, and beyond.

-Best selling Author of “Life Is Not An Accident”, a Memoir of Reinvention

-Say hi to him at http://www.jaywilliams.com/  

-Based in New York City, New York


Made Possible Because of Our Best Ever Sponsors:

Fund That Flip provides short-term fix and flip loans to experienced investors. If you’re looking for a reliable funding partner, their online platform makes the entire process super easy, and they can get you funded in as few as 7 days.

They’ve also partnered with best-selling author, J Scott to provide Bestever listeners a free chapter from his new book on negotiating real estate. If you’d like to improve your bestever negotiating skills, visit www.fundthatflip.com/bestever to download your free negotiating guide today.


TRANSCRIPTION

Joe Fairless: Best Ever listeners, how are you doing? Welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any of that fluffy stuff.

With us today, Jay Williams. How are you doing, Jay?

Jay Williams: I’m doing good, my man. Thank you for having me.

Joe Fairless: My pleasure, and I am grateful that we’re gonna spend some time with you. Best Ever listeners, you know Jay, and if you need a refresher, let me just give you a quick one. He is a former NBA player. He was drafted number two overall by the Chicago Bulls, got into a motorcycle accident and he pivoted his career from NBA to now an entrepreneur and multi-talented businessman, one of which occupations is being an ESPN College Basketball analyst, he’s also a motivational speaker, and many other things. He’s also the best-selling author of the book “Life Is Not An Accident: A Memoir Of Reinvention.”

Jay, let’s start off with that. What does that title mean to you?

Jay Williams: First off, who would have thought it took me three years to write close to 290 pages…

Joe Fairless: Books aren’t easy.

Jay Williams: Yeah, they’re definitely not. They’re more stressful than anything. The most humbling part about it is writing draft after draft and then being vulnerable enough to share that insight about what you’re going through in the darkest moments of your life with your inner circle, and having guys like Coach K., after you put a year-and-a-half into it, read it and then call you and with that Coach K.-like voice say “Yeah, I think this is pretty shitty. You could do a better job”, and you being honest with yourself and saying “Wow. Okay, back to the drawing board.”

But I guess the overall premise of it is that I found myself in a very bad place for a very long time because of decisions that I’ve made in my past… And it’s all about owning your experiences and using that as something empowering, where I think a lot of people run away from bad things that have happened in their life instead of documenting it, recognizing it, thinking through it and then using whatever experience they’ve been through as something as a positive driver in their life to push them to be more, in whatever capacity they decide to pursue.

So recognizing that all these incidents have led up to this point, that have allowed me to be the person I am currently today, and that person is exponentially different and stronger than the person that it happened to when he was 21 years old.

Joe Fairless: And you’re 36 now. I’m curious on the feedback that Coach K. gave – and we’re talking about head coach for Duke, your former coach – you on the book… What was the difference from that version that he read to the end version?

Jay Williams: You know, sometimes when you’re writing, there’s a tendency for you to be so worrisome about the way you’re perceived by everyone, not just yourself; if you have the moxie or the confidence to be vulnerable about your experiences, how vulnerable are you going to be about the experiences you’ve had with the people that you are closest to? And then are you doing a disservice to truly telling your story if you’re not going to be candid and honest about your relationship, about where that was in comparison to where it is now.

I think there was a big push from him for me to find out more about myself. He’s always a person that drives people for self-exploratory journeys, so for me the more honest I was with myself and the less I was the BS Jay and what I want the perception of people to think of who Jay was, he once again pushed me in the direction of being truthful. And when you tell the truth, it helps other people confront their truth with your truth, and then it’s your job to find common ground.

Joe Fairless: Can you think of a specific story or example that wasn’t in there pre-review, but it was in there post-review?

Jay Williams: Yeah, various sensitive subjects, in particular with Coach K., and then I’ll give you one from my father, because [unintelligible [00:05:09].23] I obviously have a dad, and my dad has raised me since I’ve been a little boy and has done a hell of a job, all the sacrifices he’s given me, but then Coach K. in my [unintelligible [00:05:19].08] years as well kind of stepped in as a coach, in that capacity.

The one with him was recognizing that at the time he was very traditional, and he liked for guys to stay in school for three to four years, and he wanted people to graduate, and it was difficult for him to adjust to the new culture, where kids wanted to be one and done, kids wanted to get in and out. And having to address the fact that after my sophomore year we won, and he allowed me to make the decision myself, but in retrospect if you think about it, he should have told me to go, and how to confront that with him… Even though I did graduate in three years, once again, owning my journey – it happened for a reason; look where I am now. But the advice I would have given some other kid is that you only get a certain amount on time to capitalize on that skillset that you have. In particular, we’ve seen all these injuries with Gordon Hayward, and you saw one last night in the football game.

That was something I had to address, and how you’re gonna handle that with your coach [unintelligible [00:06:17].06] all means John wouldn’t like. So one of those moments when you’re honest with yourself.

And then with my dad, about going through what he went through back when he was younger; there was history of domestic violence in my house, and how that ultimately affected me and affected my relationship with him, and how I’ve had to work through that, in particular with forgiving myself with my own accident; I had to learn how to forgive others and not hold slight or animosity if I was going to learn how to forgive myself.

So I think there were some really cool life lessons that he forced me to address. And it’s one thing when these things happen to you, it’s another one when you’re writing it down and you’re forced to thoroughly think through it and you can’t dismiss it, and you wanna suppress it and act like it didn’t happen.

Joe Fairless: And when you say your own accident, you’re referring to the motorcycle accident where you hurt yourself, and basically the NBA career was no more after that, right?

Jay Williams: Yeah. When you hit a utility pole going around 65-70 mph, it inevitably changes the path of what you thought your original path was.

So taking all that and then once again owning it and then helping other people empower themselves with owning their journey is something that I’m very passionate about.

Joe Fairless: With that circumstance and other circumstances, you’ve come up with this approach of “you document it, you recognize it, you think through it and you use it as a positive driver.” What are some positive things that have come out of that experience? Because I imagine – but correct me if I’m wrong – that has been one of the most life-altering experiences that you’ve come across, but I don’t know, so I’m just guessing.

Jay Williams: I’m knocking on wood that it is. There have been a lot of positives. One is that it really pushed me as far as how I look at life. There’s a tendency from the people that I know that the smaller things, the minutiae really affects them, and I think I’m able to sift through the minutiae and recognize the bigger picture, and also recognize that when certain things don’t happen the way that I really work hard for them to happen, to understand that “Okay, this is all part of the plan.” Now, it may not be the plan that I’ve been trying to orchestrate, but ultimately that’s my own plan… And not to get into the whole spiritual stuff, but you have to believe that there’s a purpose behind everything, and that ultimately my purpose is one that’s going to continue as long as I push and drive myself to be fulfilled. So that’s one positive.

Another positive is recognizing the importance of my relationships. I just lost one of my best friends, and I haven’t really been punched in the stomach like this for a very long time, since I was 21. There was also a tendency for me to get lost in my work. When you go through something like that at the age of 21, the same kind of passion I had towards basketball I had to translate into work, and that has ultimately lead me to be in a really good place work-wise; I don’t know if it allowed me to spend as much time on my own personal growth and the growth of my friendships, and the candidness and the honesty with some of my friends and with some people I care about in particular. Writing my book was the first step towards that, but I lost one of my really good friends, Peter Stein, a couple of days ago — two days ago, actually… And going to the viewing, you just — those are the things that just remind you how important each and every moment is that you spend with the people that you love.

Once again, I was able to sift through the minutiae work-wise, but then I was able to sift through a lot of minutiae personally as well, friendship-wise and family-wise.

These are things, like Icarus, as you fly higher, sometimes you get up and you see the sun, you get knocked down, and it makes you appreciate the entirety of the journey.

Joe Fairless: From a business standpoint – and we’ve talked about this prior, and my thoughts first and foremost are with your friend’s family and you and everyone that was affected, and whatever we can do as a community, please let us know… From a business standpoint, what are your focuses? You’ve got ESPN, and then what other areas of focus take up your time during the day?

Jay Williams: One of the things that happened for me — it’s funny seeing how other people have been able to really build upon it, in particular Gary B., who’s a good friend of mine, and also another guy named Scooter Brown, who I’ve known since I’ve been 13 years old, who represents for Justin Bieber and Kanye and has done tremendous within the entertainment realm… Is that you start seeing the play of content, content, content. And one of the things that I’ve been able to do, and I got lucky enough to do that, is that I invested in the company in New York City called The Leverage Agency back around 2006-2007, with a guy that I’ve known for a very long time, Ben Sterner.

Joe Fairless: I know Ben, I used to work with Ben.

Jay Williams: Small world, right?

Joe Fairless: Yeah.

Jay Williams: Ben’s incredible. I kind of call him — he’s like Russell Crowe in A Beautiful Mind, for his ability to put together things, and he’s constantly coming up with ideas. It was a way for me to be connected to more brands. I had this network of people that I had met throughout my tenure at Duke, and having other assistant coaches become head coaches, and Tom [unintelligible [00:11:34].00] goes to Harvard, Chris [unintelligible [00:11:36].14] goes to Northwestern, Mike [unintelligible [00:11:37].07] was originally at Stanford before he went to UCF… You’re tapping into this network along with other friends and you start to recognize, “Okay, I have this great network, how can I leverage it, but how can I be truly authentic to who I am?” So working with Ben, being a partner with Leverage, procuring sponsorships for major events, and now I’m on the verge — I consult with players [unintelligible [00:11:59].06] and helping them build out content because I recognize – and I started to a while ago – okay, the traditional model in which brands have worked with agencies is becoming more antiquated by the second.

You’re seeing a lot of brands that are internally trying to create their own content, their own collateral, and how are they building out their brand voice, and who are some of their distribution partners in which they are trying to go to market with? So recognizing that and helping other athletes come up with original content on their own, me coming up with original content, bringing the branding advertiser in as a partner, working with a multitude of different distribution companies… That’s The Players’ Tribune, that’s working with Twitter and Facebook and coming up with original series is something that I’m really passionate about now, in conjunction with still working with Leverage and still investing in smaller things on the side.

Joe Fairless: When you decide to invest your time – because I imagine that’s the most precious resource that you consider you have, versus money… But the time – what do you look for before you dedicate your time towards something?

Jay Williams: I look for thoroughness, and I’m a little bit old-school as well – I also really pay attention to the due diligence of the party that I’m potentially going to work with. Detail is everything for me, so if you’re paying attention to what my story is and who I am, are you trying to make a ball fit into a round square, or are you trying to make it fit into a square peg?

And then also the candidness; I like authenticity, I like things that really blossom naturally. That’s my MO. I’m more of an emotional guy. I’m not saying I’m not gonna do my own research and do my own due diligence and be thorough, because I am… But I like seeing that creative passion from the person that I’m working with. Are they truly invested? Because one of the things I recognize, being from New Jersey, New York, is that I meet con artists all the time. I meet people who are really good at talking and people that can put themselves in scenarios that you would never expect, and I think now recognizing that I’ve been faced with a lot of these people… Okay, how thorough are you? Are you going to follow up? Are you going to be on the conference call when you say you’re gonna be on the conference call?
Everybody has a quick-fix ideology these days, and that stuff is becoming easier for me to sift through. The more I can do that and the more I can see the authenticity of the person I’m working with, that’s the first step to allow me to say “Okay, this person has my attention, they have my time.

Joe Fairless: Is there any questions that you ask, or is it more you thin-slice based on your interactions with the people and then you go from there?

Jay Williams: I do the latter, but I have a team that literally puts you through a pitbull session. What I mean by that is the team I have and the team I put on board are people that I’ve trusted for a very long time and that are also very thorough and detailed. So when I start putting you through the blitz territory, all the different questionings, and that’s from my financial advisor, that’s from my calendar, that’s from my business manager, and that’s from one of my other partners in my other business… I really put your through it, and if you don’t answer the questions within the timeframe they ask you, I start wondering “Okay, what are your true intentions? Are you just looking for a quick answer, a quick hit, or are you actually really involved in this for the long run?”

Joe Fairless: With your business now and your focus, how do you see it evolving in the next couple years, if at all?

Jay Williams: Well, on a multitude of levels… So the TV side first off, it’s going to be fascinating to watch as subscriptions continue to go down. With the likes of Apple and live streaming, it’s inevitable before you feel like an Amazon, a Netflix or an Apple will own live sports content. Or if you’ll have leagues — the money is great right now, but if you have leagues that eventually go to a subscription model where they make you pay… They’re already essentially doing that, but just owning all the rights outright. And also for, in particular teams, instead of allowing these third-tier production companies to come in and film all this great content, own it yourself. If you’re the 76ers and you hear [unintelligible [00:16:06].24] talk about the process, why not figure out some kind of [unintelligible [00:16:11].00] since he’s already an employee, and keep that all in-house?

So inevitably seeing it go into that direction, and working with different brands to — obviously, I think those rates are going to increase drastically. On the production side, seeing more now about real original content, recognizing a year and a half ago – and I was on [unintelligible [00:16:32].03] talking about this – for all the craziness that comes along with LaVar Ball, it’s brilliant to have a deal with Facebook and to create your own brand.

I posted something today on my Instagram about – I do these talks to these kids all the time, and I say “Are you preparing your plan?” A lot of people talk about wanting to be a millionaire, wanting to be a billionaire… But are you really starting to thoroughly think through the process of how you’re going to get there, and do you recognize that right now you are your own brand?

LaVar Ball was able to recognize that for Lonzo, and he’s done the same with LaMelo, and he’s the same one with everybody that’s in his camp. There’s strength that comes along and leverage that comes along with that. So for athletes, I really like what TPT is doing, I like what Bleacher Report is doing – obviously, they’re killing the game digitally… And even kind of the cross-pollination of their content, like them owning House of Highlights — and people are not even recognizing that Bleacher Report owns House of Highlights, but how you end up going to House of Highlights for all your highlights, and what are some of the advertisers they’re working with…

So the linear equation is losing a ton of support, and it’s all becoming how you’re really amplifying your voice digitally, and how do you have access. I think people, and especially athletes in particular, are finding out the power of their own voice. So helping other athletes, in conjunction with myself, and doing co-production deals to bring that to light.

Joe Fairless: When you’re involved with the industry that you’re in, and you are an expert, you’re consulting, you’re helping come up with different deals and brokering the deals with talent and brands, you have reinvented yourself, and that’s part of your title in your book… What are the keys to effectively reinventing yourself when you’re either forced to change your career or choose to change your career?

Jay Williams: You know, I spoke a year ago at Delta, and I spoke in front of about 250 of their employees on one of their retreats, and it’s really something that I think is applicable to everybody, because I’ve seen it. One of the reasons I wrote Life Is Not An Accident is because I recognize that yes, I had a motorcycle accident, but the word accident can equate to everybody pretty much in their life. Now, hopefully your accident may not be as extreme as my motorcycle accident, but at the same time for you, if you dislocate your knee or you tear your ACL, that could be the worst thing that ever happens to you in your life. [unintelligible [00:18:53].10] but for you, you might look at that as something that’s traumatic overall, and overall changes the path of your life.

So the first thing I say to people is that it’s the same kind of business analogy that I gave before, that is applicable to everyone. You are your own business, and even for me, when I talk to my employees, I say that “I want you to think about yourself as your own business, because the more you think about yourself as your own business, the better overall that my business will do, because you’ll take more ownership on what you have.”

When I have friends that do this and I watch it from afar – do you come in, do you punch your clock at eight o’clock, and then when it’s time to punch out at five, are you the first one to punch out and you get done your bare minimum? Or are you trying to push yourself to get more, to elevate yourself and elevate the business?” So the first question I say to people is “Who’s on your board?” I have a board with a multitude of things I’m involved in. Every board meeting I go to, I see different CEOs who are literally sweating their tails off. They’re nervous as hell each and every time, because it’s their job to answer to this board on a quarterly basis about where the company was, where the company currently is, and if we’re on schedule to get the company for what our Q1 or Q2 goal is.

So if you’re your own brand and you’re your own CEO, first off, who’s on your board? Even for these employees at Delta – okay, great, if you’re in the marketing department, who’s on your board? And are you really sitting down with your board each quarter, and are you candidly assessing where you are, where you want to go and how you’re going to get there with your own board? And then are you gonna be vulnerable enough to actually hear feedback from people that you really look up to or people that you hold high, and these people with high standards that that board is in the vertical of business, and really be open enough to hear and bring in what they tell you? And then can you reinvent yourself?

This reinvention thing isn’t something that happens one time in your life, it’s constant. It’s almost like an app. It’s one of the things I laugh at with my phone; my damn iPhone is constantly updating. I send Eddie Q. a note, I’m like “Eddie, seriously, is it the iOS 8, is it the 9? The new phone that’s coming up, you’re asking me to update my software, and all of a sudden my old phone isn’t working again… Oh, very smart, you get me to get the new phone…”, and that’s how we should be individually.

If you have your board and you put people that truly you look up to and you know that they’re gonna hold your feet to the fire with this, are you constantly updating yourself? Are you taking on information to make you better?

I think that’s the major part to reinventing, because it needs to happen because we’re constantly updating within society.

Joe Fairless: Who’s on your board?

Jay Williams: I’ve been lucky, I have a multitude of boards. I have a business board, I have a guy that I’ve known for a while (since I’ve been 13 years old) and it’s been great to watch his story. I call him Scooter now, but his name is Scott. What he has been able to do with some of the people that he’s been able to represent, and what he’s been able to build – I bounce ideas off him all the time. He’s one of these guys, he’s very upfront, he’s very honest and he holds my feet to the fire.

Another guy is a guy named John Wren, who was the CEO of Omnicom for a very long time. Obviously, when you work with over 5,000 brands, he recognizes where brands were, where they are currently and how the landscape ultimately is changing.

Another guy is Matt Blank, who is the CEO of Showtime. I’ve known Matt for a while, and watching what they’re trying to do at Showtime, and competes with HBO and Cinemax, and where they are right now and how their game is ultimately changing with live streaming…

And a guy named Mark Clouse who was the CMO over at Mondelēz for a while, but now is the CEO over at Pinnacle Foods is a very dear friend. And then a guy named Carl Liebert, who ran 24 Hour Fitness for a while, did that and then decided that was not for him, and took another route and now is the CEO of USA Bank.

The beautiful part about all these guys is that I wanted to be successful business-wise, but one of the things I was very scared at is the more success I found on the basketball court, the more I started to lose myself personally. For me, I was like “Yeah, I want to have [unintelligible [00:23:07].23]” if that makes sense. I don’t want these guys just to be successful in one vertical, I want these guys to be good individuals.

When I look at Carl Liebert, or when I look at Mark Clouse, or when I look at Scott, these are all guys who are great family men. And I know this sounds silly to say, but once again, being authentic to myself and my brand, they’re all loyal to their wives.

I watch Mark Clouse, and every Saturday he’s at his sons, Spencer and Logan – he’s at their football game. Spencer goes to TUFTS and Logan plays at a high school in New Jersey, and he splits his time with his wife.

Carl has three sons, and one of his sons went into the army. I watch that, and that’s inspiring to me, because I recognize “Oh, you can have both.” It doesn’t need to be “I can have this, and then this suffers.” There’s actually a way to delegate your time and to be successful and be a successful father and a successful husband, and run a successful business. Those are the stories that I find extremely inspiring to me now.

Joe Fairless: How do you know that the value exchange is good enough for them when they’re on your board? Here’s the background for why I ask the question… As real estate investors and entrepreneurs — we’re all entrepreneurs at heart, right? So real estate investors – we’re entrepreneurs, and that’s why I wanna talk to you about this; we want to surround ourselves with people who have been there, done that. So John, Matt, Mark, Carl – those are all examples of guys who have been there, done that, or are currently doing it. And the challenge that we come across as real estate investors in particular is that when we find people who have been there, done that and perhaps are currently doing it, it’s a disproportionate value exchange, because we need information, but they don’t need a whole lot from us, so how do you balance the value exchange there, if you do at all?

Jay Williams: Well, I would ask that individual “How do you measure your hustle?” I think I’ve been really blessed, because one of the things that I can’t stop doing — when I was playing basketball I was always on the court, working out. And when I started to get involved in business, I found that same burning desire. My thing was that yes, the value prop to me was nowhere close to the value prop that it was for the names that I’ve just mentioned, but my thing is I think I was vulnerable enough with them to recognize that I didn’t know that.

Once again, I think the more transparent you can be with people… When I’m vulnerable — and obviously, I’ve had a different background. Being on TV gives me leverage due to my platform, so it opens the door for me to have these types of conversations with these individuals in conjunction with the people that I already know. But one of the things I would tell somebody who maybe didn’t have that platform is that “Are you doing the small things to make sure that you’re noticeable?”

One of things that happened to me – I did an internship, and it was a really cool experience for me because I wanted to recognize how hard somebody would work. Now, without saying — I had multiple people come up with this internship, and I put it out there, and a lot of people that came to me and wrote long-winded paragraphs via e-mail… About 98%-99%, that was to the extent they went.

Joe Fairless: Yeah, that’s how it is.

Jay Williams: Okay, so you know… A lot of people who they say they wanna achieve success, they say they wanna do all these great things, but they once again do the bare minimum and then they get angry if you don’t respond. So me, I don’t respond to anybody, because I wanna see “Okay, who’s gonna constantly sent me a note? Who’s constantly gonna find different ways to make themselves stand out?” So when you’re trying to form that relationship and you’re trying to form that connectivity, what things are you doing that are different to really attract that person’s attention? Are you waiting for them one day after school, or you know their location where they’re gonna come out of?

I know some of these things may sound crazy, but at the same time, I want somebody who’s a little bit crazy; I want somebody who’s willing to push themselves to go to a different level, that all of a sudden person a regular person wouldn’t do that, because I know that at the end of the day that person is going to do whatever the hell they need to do in order to get it done. Now, as long as it’s an incredible way, I’m never going to turn down the spirit of the hustle, and I don’t think a lot of people have that.

With this internship, this one person won in particular, and then all of a sudden it’s like, they’ve got the internship and they’re waiting for me to give them instructions, and I didn’t give them instructions. I wanna see what you bring to the table, what’s your value prop to me? I know what I can do to help you. An internship doesn’t mean that now all of a sudden I’m gonna just give it to you. I wanna see how long this goes, I wanna see what kind of things you’re gonna do for my business, and the more you do for me, if you get me, and if you hustle with me, I’m going to go over and beyond to make sure that you are successful at the end of the day.

But if you come into this opportunity and you worked your tail off to get my attention, and then just because you got it you think I’m going to give it to you, that’s not the real world. I’ve got doors open, and that’s not how the people — I worked hard to get their attention [unintelligible [00:28:22].12] their door open. So once again, it comes down to the measure of the hustle for me.

Joe Fairless: That’s beautiful. I love that. Based on your experience, what is your best advice ever for entrepreneurs and real estate investors?

Jay Williams: Well, on top of the hustle, I think that inevitably if you open the door of somebody, either you’re gonna be a person that does the work or you’re not. And I think that will be displayed within what you bring to the table once that door is open. I really think this is becoming a major issue within our world right now – people have lost the ability to do what you and I are doing right now. They’ve lost the ability to look somebody in the eye and not BS them, but actually be upfront and be honest with them.

For example, I get turned down all the time. Today [unintelligible [00:29:10].16] I took a stab at trying to reinvent the news; I really did, because I think the linear approach to how we see news is antiquated. I did not want to see news an hour after it breaks, and I’m tired of news being skewed. So I’m trying to pitch — I’m not gonna say who the company was, but pitch them on “Hey, this is a new format of how we see news. It’s gonna be 24/7, it’s gonna be functioning ADHD.”

Hearing the guy come to me, the head of biz dev for news, sitting down and talking to us about what their initial goals are, he pretty much said “Hey, what you guys are doing – that’s not in our wheelhouse.” But being able to listen to that and then say “Okay, great. Have you thought about this? Have you thought about that? Frankly, I don’t want my brand to be where I think your brand is going. I want my brand to be here.”

So then again, being authentic and being honest… And then I think we both left the meeting saying “I have a lot of respect for them, because we disagreed on where I think their brand voice should be, but that’s the direction they’re moving and we’re upfront and we’re honest about it, and he knows where my line in the sand is drawn”, and that was good. Because I don’t wanna be BS-ed. I don’t want somebody to talk me into doing something that I know they can’t do.

I think the ability to convey a message and the ability to be very candid and upfront about what your value prop is, and the things that you can’t do… Once again, what makes a great CEO? There are a lot of things I can’t do, but I’m going to surround myself with the best people to do them at the best of their degree in order to achieve the business.

Joe Fairless: Some pretty powerful business lessons, and I’m very grateful for that. We’re gonna do a lightning round, so are you ready for the Best Ever Lightning Round?

Jay Williams: Let’s do it, man. I like that name, Best Ever Lightning Round.

Joe Fairless: [laughs] Well, I guess I like to set the bar high, because it’s the best ever… We’ve got some questions from listeners who have asked these questions and we hand-picked a couple of the questions. So here we go, this is from Charles in your neck of the woods, New York City – “Did writing your book help you through your tough times?”

Jay Williams: I think about writing another book. I think everybody, honestly, has a book in them, and one of the things that I would tell or really kind of implore everybody to do is to write down your experiences that you had in life, and really take those things and read it and see the evolution of how you think, and are you challenging yourself to think differently?

I know for me, being 36 years old, writing my book and continuing to write op-ed pieces or different things on where we’re in sports allows you to formulate opinions. I start becoming more of a voracious reader, and I think hearing other people’s stories and really equating those stories to my life just allows me to pick up on more and more knowledge… So that’s where I will leave that.

Joe Fairless: Best ever investment you’ve made that you haven’t talked about already on our call?

Jay Williams: A little small investment in Uber.

Joe Fairless: What’s a mistake you’ve made when investing?

Jay Williams: I think it’s the mistake I made – without going into the particular… I had one business I had a chance to invest in and I did, and let’s just say that I got really excited because I got excited about the person and the investment and the entity that the person was working with I thought was talented, but it didn’t really pan out, and I quickly recognized that “Oh, okay, there’s multiple levels to an investment.” Just because you have a great CEO, you have to really work with that CEO to make sure that they hire the right people underneath them.
I think that even though his ideas were tremendous, his execution and the people that he hired underneath them weren’t the right people to really lead the charge.

Joe Fairless: How would you qualify that if presented a similar opportunity in the future?

Jay Williams: I’d get myself a more firm stance on that board, and I’d start to really evaluating what that vetting process is, and I’m a lot more strict now at 36 than I was when I was 25, 26, looking to make one of my first seed investments.

Joe Fairless: This is from Aaron in St. Louis – he asks “For anyone who wants to play in the NBA, what is the single piece of advice you can offer him?”

Jay Williams: Make sure that your mom and dad are above six feet tall… [laughter] I’m kidding. Playing in the NBA represents less than 0.001% of the world, so a very arduous task. I will just say, as you continue to get better at whatever your skillset is, one of the best pieces of advice I ever got was from a guy named Steve Nash – I don’t know if you’re familiar with Steve, but Steve used to always say “Get in where you fit in.” And I remember Ben Wallace, who was a guy that played for the Detroit Pistons – everybody now wants a shot that they can score, and Ben was like “I screen, I rebound.” I remember him in USA basketball, looking at him and he’d say, I’m like “Ben, when I give you the ball there, you’ve gotta shoot”, he’s like “I screen, and I rebound.” [laughter] I’m like, “Wow, this guy knows what he does, and he does it pretty damn well.” That screening and rebounding got Ben Wallace 65 million dollars.

Not everybody can be LeBron James or Paul George or Kyrie Irving, but if you have a special skillset that you can do extremely well, do it. Get in where you fit in.

Joe Fairless: Isn’t that analogous for business, too?

Jay Williams: Exactly. Get in where you fit in.

Joe Fairless: Yeah. How can the Best Ever listeners learn more about what you’ve got going on?

Jay Williams: They can’t.

Joe Fairless: Just play this interview on repeat, and that’s all we’ll give them, right?

Jay Williams: You know, one of things that I — I started a company a couple years ago called Clandestine Ventures… It was even funny when my PR person was like “Hey, do you wanna do this interview?” and I paid attention to some of the things he’d done before… I was like “Yeah, you know…” “But why do you seem hesitant?” I said “Because I don’t like talking about some of the stuff or some of the moves I make.” But as I get older, I do think I’m starting to be in a place where as long as I share the knowledge of people that I feel are truly passionate about it — for me, it has to start with the passion. And I think I see a lot of the people that get involved in the business for the lifestyle that it comes along… And don’t get me wrong, I’m very lucky, again, but I just love to work, man, and I have a hard time being around people that just get into — it’s like playing basketball… Like, “Oh, I wanna fly in jets”, and “I wanna go here” or “I wanna do that, and playing basketball helps me do that.” I’m like, “Hm, that’s unfortunate.”

If you’re passionate and you’re truly hungry to learn, and this is something that you wake up in the morning and you can’t wait to go do, then I’ll work with you.

Joe Fairless: And what’s the best way to either get in touch with you, your team… Or where should they go?

Jay Williams: Through you, listening to more of these podcasts. I’m very active on social, and… Look, I’m in this position now where I think in the next year or two I’ll be taking on a lot more employees for a new personal direction I plan on going, so for me, I like people that pepper me with questions; I like people, once again, that are consistent. It goes back to what I’ve said before, I think that’s my mantra for life… I work extremely hard, and it’s funny that a lot of people are like “Oh, you’re a college basketball analyst.” I’m like “That’s great that you see me that way, but I do a lot more than that.”

If somebody reaches out to me and they’re truly passionate about it and they continue to show that effort, then eventually I’ll open my door, but I like seeing that effort made before.

Joe Fairless: I love that approach. As I mentioned, I’m very grateful for our conversation. One of the things that rings true is what you’ve just said, that certainly surfaced often during our conversation, is the hustle, and how a lot of people don’t necessarily have it consistently. There’s a vast majority of people if given an opportunity at one moment in time, they will show hustle, but then it fades away, and that really separates the good from the great, and the great from the outstanding – it’s the consistent hustle.
You gave some great tips and insight on how to break free from the pack, whether it is working with you, but even more high-level just in business, how we separate ourselves from the competition, and that is having the consistent hustle and the follow-through.

I see it often at events where if I speak and I have a bunch of people line up afterwards, I’d say 9 out of 10 people want to speak to me and do some sort of business transaction afterwards, and 1 out of 10 people actually follow through with that. And it’s just simply because it’s convenient for them at the time to talk about it, and they have these ideas, but then they don’t have the follow through, and that is what separates the good from the great, and the great from the outstanding… So thank you for that.

Also, your approach to owning your journey and your experiences. When things happen that on the surface aren’t as positive, then first document it, second, recognize it, three, think through it, and four, use it as a positive driver to push and do more.

Again, I really appreciate our conversation. I hope you have a best ever day, and we’ll talk to you soon.

Jay Williams: Thanks for your time, man. I really appreciate it.

JF1150: She Left Wall Street Jobs Behind To Be A Realtor with Julia Hoagland

Listen to the Episode Below (17:44)
Join + receive...
Best Real Estate Investing Crash Course Ever!

Julia has a background in engineering and finance, so why in the world leave the Wall Street firms to be a real estate agent? I’ll let her answer that in the show, she’ll also tells us how she leverages her engineering background to impress her clients and earn their business. As the #21 agent in NYC according to WSJ Real Trends, it seems Julia made the right decision with her career change. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

 

Best Ever Tweet:

 

Julia Hoagland Background:

  • Licensed Associate Real Estate Broker at Compass, a residential real estate brokerage firm
  • Ranked #21 of NYC agents by WSJ Real Trends 2016
  • Formerly the Vice President and Director of Marketing at two leading Wall Street firms
  • Active member of the Who’s Who in Luxury Real Estate international affiliation
  • Based in New York City, New York
  • Say hi to her at jhoagland@compass.com
  • Best Ever Book: Traction

Made Possible Because of Our Best Ever Sponsors:

Fund That Flip provides short-term fix and flip loans to experienced investors. If you’re looking for a reliable funding partner, their online platform makes the entire process super easy, and they can get you funded in as few as 7 days.

They’ve also partnered with best-selling author, J Scott to provide Bestever listeners a free chapter from his new book on negotiating real estate. If you’d like to improve your bestever negotiating skills, visit www.fundthatflip.com/bestever


TRANSCRIPTION

Joe Fairless: Best Ever listeners, welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any fluff.

We’ve spoken to Barbara Corcoran from Shark Tank, Robert Kiyosaki, author of Rich Dad, Poor Dad, and a whole bunch of others. With us today, Julia Hoagland. How are you doing, Julia?

Julia Hoagland: I’m doing fantastic. How are you, Joe?

Joe Fairless: I am doing fantastic as well, nice to have you on the show. A little bit about Julia, she is a licensed associate real estate broker at Compass. She was ranked #21 of New York City agents by Wall Street Journal Real Trends 2016, formerly the VP and director of marketing at two leading Wall Street firms, and she’s an active member of the Who’s Who in Luxury Real Estate. She’s based in New York City, New York, so she is performing at a high level in a very competitive market. With that being said, Julia, do you wanna give the Best Ever listeners a little bit more about your background and your current focus?

Julia Hoagland: I am happy to. My background is very analytically-focused. I’m an engineer by training, and I did that for three years before going to Business School for finance. After eight years of that I gave it all up for a career in real estate and started this business about 12 years ago.

Joe Fairless: Okay, so why?

Julia Hoagland: Good question. [laughs]

Joe Fairless: Because with your background in engineering, and then you went into finance, you were working at Wall Street firms, you have to be making more money than what you made your first year as a real estate agent, or at least thought you would make in your first year, so why leave that?

Julia Hoagland: I really always felt slightly like a fish out of water in the corporate American structure is the best encapsulated version. I was never fully passionate about what I was doing, and I got laid off if truth be told, and I took a year to travel for our honeymoon with my husband. When I came back, I just thought  “You know what? I can always go back to Wall Street. Let me see what I can do on my own.” At the end of the day I just switched assets and added emotion, because I’m still marketing, underwriting and selling financial assets, they just happen to be in the form of real estate.

So it’s not really that different, but now I work for myself and in theory my time is my own, but in reality my time is not my own at all… But I love it.

Joe Fairless: A year to travel for your honeymoon certainly is the longest honeymoon trip I’ve ever heard of. I’m about to go on a ten-day honeymoon and I thought that was kind of long to leave, but holy cow, now I’m really jealous.

So your engineering background – how has applying that led you to rise to the top as an agent or broker?

Julia Hoagland: Engineers are all about problem-solving, that’s what the core of engineering is, and there are a lot of problems to solve in real estate deals. What we do here in New York — I’ve never done what I do outside of New York, but we have a very liquid and very geographically condensed market; it’s not that big of an area. It is tall, there’s a lot of verticals but not a lot of horizontals. So you can assess valuation pretty accurately by doing statistical analysis on the multitude of statistics that we have here.

It’s really a perfect marriage of the science that I was trained on and the art which makes it much more interesting than what I was doing in the past, to me.

Joe Fairless: Can you give a specific example…? Okay, so I’m your client. What about you with your approach do I recognize “She might have an engineering background”?

Julia Hoagland: What is important to clients is always maximizing value. To a buyer that means buying a property for the lowest price, and to a seller it means getting the highest price from a qualified buyer. What we are able to do by the analysis that I just described is assess using real data – the true value of something is what someone else is willing to pay for it, so it’s important to know what the true value of assets that are like the asset that you’re considering have been in order to assess [unintelligible [00:05:06].08] But data is by its nature historical, and you are trying to predict the present by using the past, so the art of the science (if you will) comes into play when you adjust that statistical analysis on that historical data by current market trends is now the interest rate, the consumer sentiment and all kinds of qualitative factors.

Joe Fairless: With the different qualitative factors that you just mentioned, and then I’m sure you’ve got some qualitative go-to points that you always look at, how do you determine what’s most important and how to prioritize?

Julia Hoagland: It really depends on the asset. If you have (I’ll call it) a cookie cutter two-bedroom apartment in a building with 500 units in it and there have been ten other two-bedroom sales in the last three months, several of them in the same line, then it’s pretty clear that the most important comps you wanna look at are those in building comparables… Because when you’re in the same building, you neutralize for location and amenities and monthly charge levels services etc.

If you have a very unique asset, for instance let’s say a penthouse, one-bedroom apartment that’s 2,000 square feet and has a terrace, you may not be able to find any comps in the building that are like that, and there might not be any in the immediate area.

I’ve actually searched for an apartment exactly like the one I’ve just described all over Manhattan, for the most expensive one-bedroom apartment to sell in the last six months to one year, and analyzed all of the data that is similar about those apartments while trying to adjust for what’s different in terms of neighborhood, and type of building, month lease etc.

Joe Fairless: And with your clients, what type of presentation or how do you communicate this information to them?

Julia Hoagland: I prepare a spreadsheet with my team; we pull data off of our listing system, which is just basic data – the address, the unit number, the costs monthly, square footage etc. and we then augment that with condition and a lot of factors… Like, if we’re analyzing townhouses, do the townhouses have suites and how wide are they, and are their gardens South-facing or North-facing, and are they deep? Do they have high ceilings? Are there interior [unintelligible [00:07:33].21] that kind of thing. I put it on a spreadsheet and calculate averages based on the entire data set and then similar condition data points, and then maybe side street data points, and put together about six or seven paragraphs of analysis, including on the actual data, and put it into an e-mail and send it to my clients with the attachment along with the statement of account from the New York City taxing authorities and also the Property Shark information.

That gives them something to chew on, and then we get on the phone and discuss the findings and decide on a negotiation strategy.

Joe Fairless: As far as your clients go, what would you say is the typical profile, demographically, of a client of yours?

Julia Hoagland: I speak finance, so I tend to connect — it’s all about connection in our world, and in any world of sales, I think, and we all tend to connect with people whose language we speak most, and since I have an analytical background and I approach the business that way, I tend to connect with people who also are in some sort of an analytical field or have analytical training, which includes finance, consulting, accounting… So I would say a large majority of my client base is from or connected to those worlds, but we have very good business referral partners in California, as an example, that are entertainment industry advisors.

We’re also extremely discreet, and discreet by nature and by practice, and I do think they go hand in hand; it’s hard to be one without the other. So I connect on that level with them. We’re able to work with very high-profile names that you’ve heard of without letting anyone know, and they appreciate that.

Joe Fairless: How do you get introduced to the high-profile names?

Julia Hoagland: It’s all about networking. I’m a big networker, I am a member in several organizations, I ascribe to the abundance mentality, so really trying to figure out how I can help people, and I learned that when people help me, I’m very focused on helping them; what goes around, comes around, and it all kind of made sense to me. So it’s networking, organizations that I’m in… I tend to connect with people who ultimately introduce me to these clients or their business advisors.

Joe Fairless: And what organizations are you involved in?

Julia Hoagland: I’m in the Women Presidents’ Organization, I’m in 100 Women in Finance, I was a member of BNI for 12 years (I’ve just resigned this year) I’m a member of The Cultivist, which is a really interesting organization focused on the arts — it’s not really a networking organization per se, but there’s always networking to be done when you’re at events with people who are interested in the same things you’re interested in. I think there are a few others, I don’t have them at the tip of my tongue.

Joe Fairless: Yeah, but those are the ones that are top of mind. The NI – what does that acronym stand for?

Julia Hoagland: BNI is Business Networking International. It’s quite popular in New York. I think there’s 70,000 chapters around the world. It’s all about networking; the sole purpose of the organization is to help business owners build business. I helped form a group when I started in the business, and I could tell you one of the big contributors to my growth in the beginning, and just a really good way to not only build business, but… You stand up every week and you talk about what you do, so it makes you really good at marketing, and trying to figure out a million different ways to talk about things that you do in ways that will sell them. And you also develop this really strong network; I have very good friends – some of my best New York friends are in the chapter… And a strong network of wealth advisors, and [unintelligible [00:11:25].06] attorneys, mortgage brokers, graphic artists – all kinds of people who are in these chapters that you get to know really well because you meet every week.

Joe Fairless: It sounds like a great organization, why did you resign this year?

Julia Hoagland: I wanted to make room for the next guard, and I also felt like I was at a position and a place in my career and development that I wanted to focus on other things, like The Cultivist and the Women Presidents’ Organization. My team, which is comprised of six salespeople, myself and two admins, they are now – some of them are in BNI already, but it’s really about what they’re doing now. So it was just time to kind of make room.

Joe Fairless: Got it. Based on your experience, what is your best advice ever for anyone who wants to invest in New York City?

Julia Hoagland: Partner with someone who really knows about how to assess the value of properties; I’m talking about a brokerage, which is what I do, but there are a lot of different ways to approach what I do, so it’s not only important to partner with someone who’s confident – that’s kind of the baseline to me – but also someone who you can really relate to, because then they get to know what it is that you’re looking for from a deeper level and they can better advise you.

Joe Fairless: You told me before we started recording about 10% of your clients are investors, right?

Julia Hoagland: Yeah, about 10%.

Joe Fairless: Okay, so what are they looking for?

Julia Hoagland: Interestingly enough, when I first start working with investors, they’re often looking for highest yield, which makes perfect sense… But in New York City (and other cities like it) people trade yield for upside appreciation potential and liquidity, so that’s one of the first questions I always ask investors – if yield is your number one goal, then I might suggest [unintelligible [00:13:18].00] to a broker in an area like Kansas, or somewhere in Middle America where prices are much lower, rents are also lower, but the yields on those properties is higher. The thing that you’re trading is upside appreciation potential; there is a good likelihood that New York City – this is me as someone who’s selling properties in New York City talking, so take it with the grain of salt that you need to, but I’m very bullish on the long-term valuation potential of the city, because of a lot of reasons.

That potential doesn’t exist somewhere that’s more [unintelligible [00:13:51].03] and less internationally-known. And the liquidity in New York City is pretty amazing. With the exception of the six months after the financial crisis, you can sell just about anything at any time if you get the pricing, marketing and exposure right here.

If you’re in a place like – I’m picking on Kansas and I don’t mean to, but somewhere that’s just not a major metropolitan city, you’re likely not gonna face equal liquidity situations, so you might have to drop your price pretty dramatically if you have to sell at any specific point in time.

Joe Fairless: Are you ready for the Best Ever Lightning Round?

Julia Hoagland: Yes.

Joe Fairless: Alright, then let’s do it. First, a quick word from our Best Ever partners.

Break: [[00:14:34].05] to [[00:15:33].15]

Joe Fairless: Alright, Julia, best ever book you’ve read?

Julia Hoagland: Recently, Traction by Gino Wickman.

Joe Fairless: Best ever transaction you’ve done, either business-wise or real estate?

Julia Hoagland: My own home, purchasing our apartment that I live in now and I absolutely adore, that I found and I wanted to buy on the day that I found it, and my husband being the shopper that he is needed to spend another few weeks looking around at properties, so I sent him on this way… And then he came back. [laughter] Thank goodness.

Joe Fairless: What’s a mistake you’ve made on a transaction?

Julia Hoagland: Not listening and not giving the other side a chance to give me information by picking up the phone and calling them.

Joe Fairless: Best ever way you like to give back?

Julia Hoagland: I love talking with people and finding out what it is their interests are, and taking something that I’m really familiar with or can easily get familiar with and either contributing to the cause or introducing them to someone I know who’s affiliated with the cause… Basically, making connections.

Joe Fairless: And how can the Best Ever listeners either get in touch with you or learn more about your company?

Julia Hoagland: You can e-mail me, you can call me on my cell phone, or you can go to my website. I’m very happy to connect with everyone at any time.

Joe Fairless: And what’s the best e-mail?

Julia Hoagland: jhoagland@compass.com

Joe Fairless: Easy enough. Well, Julia, thank you for being on the show; thank you for talking about the analytical approach that you take based on your engineering background and the data points you look at, as well as how you get clients through the networking approach that you take, the abundance mentality and those specific organizations that you’re in and the benefits that you’re getting from a couple of them.
Thanks for being on the show. I hope you have a best ever day, and we’ll talk to you soon!

Julia Hoagland: Thank you.

JF963: Why You Should Raise BILLIONS in Capital with a 506(c) Offering versus a 506(b)

Listen to the Episode Below (29:06)
Join + receive...
Best Real Estate Investing Crash Course Ever!

Raising capital for cash flowing projects it’s exciting, but only one of these offerings will allow you to talk about it. Publicly soliciting potential transactions can boost your ability to close for obvious reasons, you get the word out! Follow Mark as he walks us through some case studies and shares why he would prefer to let everyone in on the deal!

Best Ever Tweet:

Mark Mascia Real Estate Background:

– Founder and CEO of Mascia Development
– Mascia Development LLC, is a long term value investment real estate investment company
– Over 12 years experience in real estate
– Presently an adjunct professor at New York University‛s Schack Institute of Real Estate
– Based in New York City, New York
– Say hi to him at http://masciadev.com/

Click here for a summary of Mark’s Best Ever advice: http://bit.ly/2ooDRjP

Made Possible Because of Our Best Ever Sponsors:

Want an inbox full of online leads? Get a FREE strategy session with Dan Barrett who is the only certified Google partner that exclusively works with real estate investors like us.

Go to adwordsnerds.com/joe to schedule the appointment.

 

 

Joe Fairless: Best Ever listeners, welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any fluff.

I hope you’re having a wonderful — no, best ever weekend, and because today is Saturday, we’ve got a special segment for you that we do sometimes, called Situation Saturday. You’re gonna love this is you’re a money raising machine or want to be a money raising machine, because we are with an investor who has developed over one billion dollars – yes, with a b – of property, and he has over 12 years of experience in real estate. We’re gonna talk about why he chose (or is choosing) to do a 506(c) offering, versus a 506(b) offering on his current deal. How are you doing, Mark Mascia?

Mark Mascia: Good, Joe. Good to hear from you.

Joe Fairless: Nice to have you on the show again. If you recognize Mark’s name, that’s because you’re a loyal Best Ever listener. He’s given his best ever advice once before, and he’s been on the show a couple times. You can just search his name at BestEverShow.com and hear his best ever advice.

A little bit more about Mark – he is presently an adjunct professor at NYU Institute of Real Estate — how do you pronounce, NYU’s Shnack…?

Mark Mascia: Shack, unfortunately… [laughter] It’s the most unfortunate naming of a real estate program.

Joe Fairless: No kidding, the irony… NYU’s Shack Institute of Real Estate – he’s an adjunct professor there. He’s also the founder and CEO of Mascia development, and he is based in New York City, New York, where his company is. With that being said, Mark, before we dive into the 506(c) stuff, do you wanna briefly give the Best Ever listeners a refresher on your background and your focus now?

Mark Mascia: I started my own company about ten years ago, Mascia Development, as you mentioned. Before that, I had worked for large companies, small companies, doing development of all kinds throughout the New York City and DC area; some, like you mentioned, as big as half a billion dollars. That’s pretty easy when you’ve won a project that is that large to get to a billion dollars in development.

So I started my own company ten years ago, and we’ve since always focused on retail and medical office. We focus on properties all over the country, and we’re really a long-term value player, so we buy undervalued assets for the long haul. Cash flow is focus, so we’re not buying vacant buildings and fixing them up; we’re doing development, and it’s all in a cash-flow driven strategy.

We work with some of the largest family offices in the country for the majority of our capital, but we also allow and enjoy having individuals invested alongside those large capital sources. Our sort of egalitarian model is everyone invests at the same terms; there’s no special treatment, even if you have a billion dollars, like some of the families we work with do. So that’s just kind of how we operate, and have owned – I think we’re up to 86 assets right now.

Joe Fairless: What’s your total portfolio value?

Mark Mascia: It’s like 515 or somewhere million dollars… It’s hard for me to keep track because I don’t really look at it every day.

Joe Fairless: Yeah, just ballpark. You don’t track that like the stock ticker.

Mark Mascia: Yeah, right. [laughs]

Joe Fairless: Okay, got it. And Mascia – I apologize for mispronouncing it. Before we started interviewing, I triple checked how to pronounce it and I wrote it phonetically in my notes, but I didn’t write it correctly phonetically in my notes, so I apologize. He’s a friend of mine, I shouldn’t be butchering his last name.

Alright, Mark, thanks for the context. The reason why we’re here is why you are choosing to do your current deal under a 506(c), which you can publically advertise, versus 506(b). We’ve spoken to securities attorneys (a couple of them) on this show, and they’ve walked through the pros and cons of 506(b) versus 506(c), but they’re not doing the deals, so this is gonna be interesting because you’re actually doing the deals. Walk us through your thought process.

Mark Mascia: First and foremost I’m not an attorney, so none of this is legal advice, but it’s just our own experience what I’m sharing… So I like give attorney advice, but I’m not an attorney.

Our current deal is a retails strips center in Spartanburg, South Carolina. It’s a pretty growing, booming market, largest growth center of basically the South. They’ve gotten over a billion dollars of investment in the last couple years, so it’s an interesting market that we track for a really long time. We found this property there that has some vacancy, it has really low rents, it has some great tenants, long leases, so a pretty straightforward retail deal to what we do. Cash flowing day one, around 7% levered, and it goes up to 9% over time. Nothing to blow the doors off, but just sort of a very steady, down in the middle, strong deal that has great [unintelligible [00:06:50].02] cash flow.

We have good reserves, long-term debt – all the kind of stability things you want, and that exactly follows our model. What I just told you – I couldn’t have told you any of that if I was doing 506(b), the old way of raising capital.

Case in point, the first and foremost reason that we like it is because we can talk about what we’re doing actively, and not have to keep everything a secret or know you personally before we talk about it. It just makes logical sense, in my opinion, from a business perspective, to be able to talk about things you’re excited about, and things you’re excited about are usually the newest deal, or the newest thing you’re doing in your business, and before September 2013 you couldn’t do that legally. It’s kind of crazy to me, but that’s the way that we used to do it, and it was the only choice before that date.

So first and foremost, the ability to communicate openly about what you’re doing is exciting and it is the only way to do that – under a 506(c) deal. So that’s kind of the deal in a nutshell.

What we specifically do every time – I mentioned our capital sources are predominantly family office in the beginning, but now have made a huge focus on not just diversifying the investments we make across different locations and different properties, but also our investor capital base. What we saw in the beginning was we have these few families that have deep pockets, but if any of them decided not to do any deal we found, for any particular reason, and some were as funny as “Oh, I’m going skiing for a month, so I’m not gonna do any deals, regardless of how good they are” (that literally happened), to any other reason… They just don’t like Spartanburg – let’s say they grew up there and they hate it and they’re never going back, so they don’t wanna invest there. That didn’t happen, but things like that happened in the past, and we just don’t wanna have any sort of single source of capital, just like we don’t wanna have any single tenant or any single property that can sort of wipe out our whole business.

With that being said, every deal we do, we have the ability to raise all of the funds from these large, big-pocketed family offices, but we specifically choose not to… 1) so that we can keep relationships with our friends and family and other investors who have been with us for a long time, but 2) to meet new investors. I think it’s really important – when you think about this, it’s very easy to go and say, “Oh, Sally invests half a million dollars with us every time. She’ll write another half a million dollar check every time”, so it’s easier just to go to her and get that half a million dollars.

What I would suggest – personally, it’s worked for us and I’d suggest to form your own perspective – is consider what happens if Sally one day stops writing that $500.000 check. It’s gonna be a lot harder to find a bunch of $10.000 people if you don’t know any of them, versus if you’ve already had many 10k, 25k or other hundred-thousand-dollar investors that you can replace Sally with.

With that all being said, every deal we do, we do a portion of it crowd funded, which really is nothing more than just advertising online through one of these third-party platforms for new investors. So it’s a straight general solicitation out there, advertising on the website, and they advertise on other platforms, but they’re aggregating individuals who are interested in investing in real estate, and putting our deal in front of those eyeballs. So every deal we do, we reserve at least a few hundred thousand dollars for that specific purpose.

In this deal we’re doing that as well. We’re on CrowdStreet, but we’ve been on just about every platform out there in the past, so we don’t have any one that we love or don’t love more than the others. They’re all good for their different reasons. In this case we went with CrowdStreet, so our deal is up there and we’ve gotten some investors directly from them. These are people that I would otherwise have never met in my life, that are interested in investing with us, and some of them have already invested with us.

So it’s a great opportunity to grow your network of individuals that either might be interested or are definitely interested in investing. Again, something you couldn’t have done prior to 506(c), or that I couldn’t do now even, if I chose a 506(b) type of raising capital.

Joe Fairless: You couldn’t do a 506(b) with CrowdStreet, even if you have a relationship with CrowdStreet and CrowdStreet has a relationship with their investors?

Mark Mascia: Yeah, there are some platforms that do 506(b) and crowd fund it and they sort of backdoor a few of these “relationship” angles. What you’re alluding to, which I agree with, is you have to have a pre-existing relationship before you can market something to someone. You and I know each other, Joe; I can tell you anything privately I want about any of our deals, regardless of how we’re raising money, because we have a pre-existing relationship. But to any of your Best Ever listeners – I’m sure many of them I’ve never met – I can’t tell them anything about the deal until we have a relationship. But it’s kind of catch-22, because how do you establish a relationship with someone so you can tell them about what you’re doing? They’re not just gonna invest blindly and send you money before you can tell them about the opportunity.

So there are some loopholes to this, and I’m not a super-expert in what those loopholes are. We’ve tried to stay pretty clear of those and just say, if we’re generally soliciting – which online advertising, in my opinion, clearly is generally soliciting – then you wanna use 506(c) to stay out of the gray area. But again, there may be other ways around that if you talk to your attorney; it’s just not my expertise.

So crowdfunding – the primary source of “advertising” for this deal in terms of new investors. We are also in this particular investment trying out for the very first time Facebook advertisement, because we’ve heard in the past a lot of great reviews from friends about how they’re acquired investors that way, because you can be super targeted. We know very clearly that 90% of our investors are 40 years and older, live all over the country, but mainly in population centers of 100.000 people or more… Things like that. It’s pretty easy to target those types of people on Facebook, because they’ve already given all of that information out there.

Joe Fairless: Is it primarily males, too?

Mark Mascia: Yeah, unfortunately it is. One of our largest investors is a woman, and I’m really excited about that because I really love to see a more diverse investor base that’s not all male. But yeah, it’s probably 95% male in terms of number. Just because one of our investors happens to invest a lot of money, it skews a little bit when you consider percentages of dollars, but…

Joe Fairless: Any other things you target for?

Mark Mascia: Like I said, this is the first one we’ve done. I’m not a super-expert, but those are the main things that we’re looking for. Well, I guess education I didn’t mention, as well. So generally they’re all college educated. To the extent that you can target more professionals – doctors, lawyers, executives or small business owners, those tend to be good users. But that covers a large population, it’s not exactly a narrow niche of people; that’s a lot of people, so…

Joe Fairless: Okay.

Mark Mascia: So Facebook advertising – we’ve just started that and we’ve seen a ton of traffic. We haven’t actually converted anyone yet on that, just to be perfectly open and transparent, so I don’t know if that’s something we’ll do again or not – stay tuned on that side – but it’s certainly something we’re doing now and something we couldn’t have done under a 506(b) deal.

We’re also trying old school newspaper advertising, because our investor base tends to be a little bit older. In some cases we have investors 70, 80, 90 years old, and newspaper still happens to be a very relevant source for those people.

And because we’re local – we’re not local in terms of our operations are in New York, as you mentioned at the outset, but our property is located in South Carolina, so what we’ve chosen to do is try to get investors that live in that general area, so we will make an extra target, either on Facebook and also in this newspaper advertising, that focuses on North Carolina, Greenville, South Carolina – markets that are very close to these areas. Charlotte’s an hour away, Greenville is about 45 minutes away, Charleston… Those types of things, because people tend to like investing locally; even though long-term I think that’s a bad strategy, it’s a great gateway if they can drive by the property and see it.

So newspaper advertising is something else we’re doing and something else we couldn’t do under a 506(b).

Joe Fairless: And you did – I believe, if my memory serves me correctly – newspaper advertising in Omaha for a deal, didn’t you?

Mark Mascia: That’s right, and we actually did get investors directly from that, so that’s why we’re doing this again.

Joe Fairless: Okay. Do you happen to know any type of return, or how do you look at that? One dollar spent in a newspaper ad, and you get an investor… How do you measure the return on your investment there?

Mark Mascia: It’s a great question… I don’t have a mathematical model that works yet, because honestly some of these people start out and invest 5k, 10k, 15k, 25k – some smaller check size because they’re testing the waters with us and seeing how we operate. That may be all they ever invest, because they don’t like us. Or, generally what happens is they try us out for that amount, and the next time they write 100k check, or half a million dollar check.

It’s kind of difficult, because they lifetime value of that customer to us could be extremely high if they invest a lot of dollars or refer a bunch of friends, or things like that. But if they only invest one time, 5k, or they don’t invest at all, it’s very difficult to see the clear — I mean, it’s not like purchasing a product… They bought my book or something, and then I’d be like “Okay, that’s a clear conversion of one to one.” In this case, first of all it’s a high dollar value that they’re dealing with. If they write a check for 100k, that’s obviously worth a lot to us, versus somebody who would buy a $20 item on eBay, or something.

I think typically we’re trying to stay in that 2%-3% of capital raise to cost to convert. That’s about what happened: we spent about $3,000 in newspaper advertising and converted somewhere in the $150,000 range from that, so I think that math works our roughly. But it’s not an exact science; that’s what we hope for. Sometimes it will be 20% cost to convert, but over the long haul that will decrease itself drastically.

Joe Fairless: Okay.

Mark Mascia: We also did a webinar, which is something else… I’m sure you’ve seen the “be everywhere” strategy, that kind of like blanket/carpet marketing, whatever you wanna call it… We’re definitely trying to follow that strategy. I mentioned Facebook, I mentioned newspaper, we did a webinar, we’re on CrowdStreet… Those are all things that get our name out there.

The webinar was helpful because we get one-on-one questions, we get a bunch of people and interest built around that specific concept of hosting a webinar, and you can record it and then send it to others, so it gives you sort of a platform and another contact point to reach out to people.

Then we did a video. We always do a professionally recorded video, including drones footage and all types of different angles of the property and the surrounding area. That’s probably our most expensive question about if we should do this, because…

Joe Fairless: How much?

Mark Mascia: Well, there’s multiple different pieces, because you have the voice over, you have the actual video editor, you have the video recording – all those different things. I think when you put them all together it’s probably $10,000-$15,000.

Joe Fairless: Oh, Mark! I gotta get you my video guy. $3,000, all in. With a drone. We’ve got a drone, text overlays, everything.

Mark Mascia: Alright, awesome. I definitely have to check that out. I appreciate it! See, that’s why we do this, right? We all share and learn; I’m learning, too.

So yeah, that’s something… It’s also just a piece for existing investors, family offices to feel like they’ve been to the property instead of having to fly down there themselves. That’s what we used to do… Not on our dime, but we used to fly down and meet them and do a physical tour, and now we do more video, which is better for everyone.

I mentioned existing investors – the referral, probably in everyone’s experience has been why you start with your friends and family, because they know you, in terms of raising capital. If you perform for them, they will refer you to their friends and family, and so on and so on. That’s typically been the best source for us overall.

Joe Fairless: Do you have a way that you encourage that? Any intentional way?

Mark Mascia: I tend to let them know that it’s actually benefitting them, because people are wonderful; I think inherently people wanna do what’s right and be good and help others, but people are also sort of like short-term selfishly motivated, so what I try to do is focus on the benefits to them and why they should take action, because ultimately that’s what motivates most people in the short term. So by showing them that it actually lowers the cost of capital if they can refer somebody – I don’t have to pay the 2%, 3% or 4% to use crowdfunding or to do this advertising avenue that I’ve been speaking about… So it’ll decrease that, and then it’s also a social proof thing. From the standpoint of what I’ll try to do is people that do know each other or people that don’t know each other, some of the family offices that didn’t know each other, I introduced them to each other. Now they know each other, so when I say “XYZ family office is investing. Don’t you guys wanna to invest as well?” they go “Oh yeah, of course. If they’re invested, we’ll do it, too.”

So there’s a little bit of trying to get people in the same room or same social network of some sort, even if it’s just because I introduced them, so that there’s that social proof aspect where people feel obligated or inclined to invest because of someone else.

Joe Fairless: Any other pros, before we get into the cons?

Mark Mascia: The ability to develop this kind of long-term relationship quickly. What I mean by that is in 506(b) you had to know somebody for long enough to prove that you had a relationship with them. Now it’s like, I don’t have to prove any relationship. As long as they’re an accredited investor and they can invest, and as long as they’re a human on earth, I can talk to them about what I’m doing, and that’s just the base thing.

The costs are the same. You’re not spending any more money to file these documents, to do anything else. So from that standpoint, there’s really no reason not to do it in that way, in my opinion. It’s still got the same unlimited amount of money you can raise, so it’s not like you have a certain maximum doing it this way, so sometimes you should go the other way. You can raise unlimited funds. I think those are all important points.

Joe Fairless: What are the downsides of 506(c) versus 506(b)?

Mark Mascia: Definitely the overwhelming upsides, in my opinion; that’s why we’re doing it here. We’re only raising like 2.8 million dollars for this current deal, it’s a very small deal. But some people who raise much larger dollars and deal with very sophisticated investors, especially those that they’ve dealt with in the past, this can be a little bit of an annoyance… Because what has to happen under a 506(c) is they have to actually be accredited by a third party. So either they need to send you personally documentation of their accreditation status – and just as a reminder… I’m sure you’ve heard it a million times, but to be accredited as an individual, you need to make $200,000 a year, or with a married couple you need to make $300,000 a year, or have a net worth of a million dollars, excluding your personal residence.

So you have to have proof of either W-2 income statements, tax returns or a proof of your net worth. A lot of that, people don’t like to share. If they’re super wealthy, they’re very protective of their privacy and things like that and they don’t want people to see that, so generally they’re not gonna wanna send that to you. Well, that’s okay, the 506(c) allows you to do it under a third-party. That means either they need to send a letter and all their documentation to any attorney that [unintelligible [00:20:53].29] a currently licensed CPA can do that, or a stock broker. So there’s three other avenues where a third-party, not you sponsor or them the investor, but a third-party can verify them.

But again, this process – filling out that paperwork, proving that they’re wealthy, can be frustrating, can slow down the process, and can sometimes offend people, honestly. We’ve had people that have invested with us in the past who were like “Well, I never had to do this before” or “I’ve never had to do this with any other real estate deal I’ve invested in. Why are you so difficult? What’s wrong with you?” So there’s definitely a bit of more of an education problem… Not that they’re not smart or educated in life, but they’re not necessarily educated to the ways of these rules… Because these are not my rules, these are the SEC’s rules, and that’s what I always tell them. It’s not that I’m trying to be hard-lined about this, it’s the SEC has these restrictions and I’m just trying to follow the law. So that’s a definite downside.

Now, how real that is is really gonna depend on your investor base and on your relationship with them. Most people, when you walk them through why and how easy it is once they’ve done it once, they tend not to care… But again, you have to do this every 90 days, so that’s the other annoyance.

Joe Fairless: You have to do what every 90 days?

Mark Mascia: Get them accredited… Not for the investment that they’re in, but let’s say I’m raising money for this Camelot center deal in Spartanburg, South Carolina today; we have another deal under contract. If I don’t get that next deal ready and in front of that same investor within 90 days, they have to do it twice. So even if it’s the 91st day and I wanna get them to invest in that second deal after they invest in our deal that we have now, they can’t, unless they resubmit all the paperwork. And that’s just kind of like stupid. You just invested in that last deal, you just proved to me you’re accredited in the last deal 90 days ago, now all of a sudden the SEC magically things that it all completely changed and now you’re worth nothing or make no income… It’s a little onerous in that respect as well…

So just to be clear – not once they’re invested. If they’re invested with you, as long as you’ve got the accreditation paperwork upfront, you never have to do that again in that specific deal. But for all future deals, every 90 days you need to get a new update on whether they’ve accredited or not. That’s frustrating.

Joe Fairless: One strategy is to do 506(c) but only bring in new people, and then the next deal do 506(b) with your current people and funnel the new people in there. Then do another 506(c), bring in all new people… That way there’s no changeup in the process for you existing investors.

Mark Mascia: Yeah, that would definitely work. The problem is if any of your existing investors wanna get in on your new deal… The biggest problem we have is finding enough good deals for our investors. If I could find 20 deals, they would be happy. Unfortunately, we find a handful of deals every year that are good enough… So if I say, “Hey, by the way, you can’t invest in this one because it’s only new investors, I think that would be more of a turnoff than anything else. But if you can tailor it that way, it definitely would work, I agree with you.

Joe Fairless: I guess you could always say, “Yeah, you can invest in this one, but here’s the wrinkle in the process.”

Mark Mascia: That’s a good point. I hadn’t thought of that, so I appreciate it… But again, for us certainly that wouldn’t work, but for other people it definitely might.

I think the other thing is from a 506(b) standpoint you’re also a little bit more protected in terms of it’s been around forever. It’s been around since the 1930s or 1940s or whatever it was when it was originally enacted, so there’s been tons of case law, lawsuits, all types of things that you put you very clearly in the right or in the wrong, with very limited gray area… Whereas 506(c) – the new regulations have only been around since September 2013, in which case there’s been almost no clarifying points beyond. There hasn’t been tons of lawsuits and things like that because it just hasn’t been around that long.

So there could be some additional risk there. How to quantify that risk – who knows? Clearly, I don’t think there’s that much risk because I’ve talked to a bunch of attorneys and this is what we’re doing, but time will tell what that actually looks like.
The other thing that gives you protection is under 506(b) it’s self-accreditation. That means if someone comes to you and says “I’m wealthy, I’m accredited”, and you as the sponsor have the right to rely on that, they will essentially have committed fraud if they tell you otherwise, in which case that nullifies their ability to sue you.

So in a lot of ways you’re sort of saying, “I’m not in this process. They told me they’re rich.” If they’re not rich and they try to sue you and say “Hey, you shouldn’t have let me invest in this deal. You should give all my money back”, you say “Hey, you told me you’re rich, so clearly you lied. That means you can’t sue me.” So there is some additional protection in that respect as well, that you’re losing here because you’re now using some sort of verification process and they could say, “Well, I just called somebody and they signed off on it. It wasn’t true, so you shouldn’t have let me invest.”

Joe Fairless: Sounds like those are the three main downsides that you can think of. That is, they can be annoying for the investors because they have to be accredited by a third-party, there’s some gray area because it’s rather new, and then the self-accreditation process likely protects you more because they’re saying they’re accredited by completing the paperwork, so they would have committed fraud if they actually aren’t accredited.

Anything else that we haven’t talked about as it relates to why you choose to do a 506(c) versus 506(b)?

Mark Mascia: No, I think… Like we’ve mentioned before, they’re both the same in terms of the amount of money you can raise, in terms of the process, in terms of what you’re allowed to risk, whether that’s real estate development or real estate investment of long-term nature – anything can be done. Unlimited amounts of money, the same blue sky paperwork in terms of what you have to file with all the states… So in that sense it’s like you have to learn this and do this the same either way, so you might as well do the one that gives you more flexibility in what you could say.

Joe Fairless: Mark Mascia, where can the Best Ever listeners get in touch with you?

Mark Mascia: E-mail is always best. It’s mark@masciadev.com, and I’m sure you’ll have that in the show notes as well.

Joe Fairless: Yeah, well I’ll put your website in the show notes, and that way the internet trolly things that some people have don’t grab your e-mail address. You’ll thank me for that.

This has been wonderful. I loved talking about this stuff, and this was such an educational experience, coming from someone who’s currently in the middle of it, and you’ve got half a billion dollars worth of assets under management that your company has part ownership in… So talk about the pros, as you so succinctly recapped – it diversifies your investor capital base, that way you’re not relying on one source of capital, because you’re able to publicly advertise and you’re able to meet new investors just to make sure that you have additional investors coming in and you’re not relying on one, which kind of ties in the first thing.

You can convert people quicker, versus having the pre-existing relationship, because you are doing the 506(c), and then the raise is unlimited, just like the 506(b), and the cost is the same, just like 506(b). And then I love how you got into the equity raising tactics, the crowdfunding website, Facebook advertising, who your target audience is, newspaper ads, webinars, the video, and then ultimately the word of mouth, referrals and how you social proof and mention how it lowers the cost of capital, because you lower your advertising budget if they refer their friends or whomever.

Then the three downsides… The primary one, I believe, the risk in the legal liability for the gray area, but the here and now is it can be annoying because there has to be verification by a third party. And then the other two – there’s more gray area with 506(c); with 506(b) there’s a self-accreditation process.

Thanks so much for being on the show, Mark. I hope you have a best ever weekend. Enjoyed it, as always. We’ll talk to you soon!

Mark Mascia: Thanks a lot, Joe.

 

Subscribe in iTunes and Stitcher so you don’t miss an episode!

https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

JF810: When Mother Nature DESTROYS Your Property, What Do You Do? #SkillsetSunday

Listen to the Episode Below (23:00)
Join + receive...
Best Real Estate Investing Crash Course Ever!

So you have a check after a recent hail storm, hurricane, etc. Do you use it to repair your property? What do you do right after the event? Who do you call? Today you’ll understand how to break down the situation and make the proper choice!

Best Ever Tweet:

Frank Roessler Real Estate Background:

– Founder of Ashcroft Capital
– Managed underwriting, due diligence and contract negotiations of over 30 properties comprising of 200+ units each
– Served as an asset manager over a portfolio valued in excess of $450m
– Based in New York City, NY
– Say hi to him at http://www.ashcroftcapital.com

Want an inbox full of online leads? Get a FREE strategy session with Dan Barrett who is the only certified Google partner that exclusively works with real estate investors like us.

Click here: http://www.adwordsnerds.com to schedule the appointment. Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips: https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes and Stitcher so you don’t miss an episode!

JF803: How to Self Publish Your Way to Thought Leadership #SkillsetSunday

Listen to the Episode Below (20:02)
Join + receive...
Best Real Estate Investing Crash Course Ever!

You may have thought of writing a book, so why haven’t you? This is a no fluff episode about how you can establish yourself as a thought leader through book publishing. Self publishing allows you to freely execute your niche book release and Amazon is the vehicle to do it. Listen in, take notes, and publish!

Best Ever Tweet:

Mike Fishbein Real Estate Background:

– Inbound Marketer and Co-Founder of GetSuperScript; Marketing for technology companies and consumer brands
– Grew consumer website from zero to 25,000 unique visitors per month, and generated 10,000 leads
– Bestselling author of twelve self-published books on Amazon
– Based in New York City, NY
– Say hi to him at http://www.mfishbein.com

Want an inbox full of online leads? Get a FREE strategy session with Dan Barrett who is the only certified Google partner that exclusively works with real estate investors like us.

Click here http://www.adwordsnerds.com to schedule the free session.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips: https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

JF617: The Pertinent 4 Comparable Property Tips this Expert NYC Agent Wants You to Know

Listen to the Episode Below (23:49)
Join + receive...
Best Real Estate Investing Crash Course Ever!

Today’s guest is an expert in the Co-op market of New York City and he’s about to share the details of listing leases and for sale Co-ops in the city. He shares his experience helping buyers and sellers, and also believes Co-ops are not too investor friendly. Tune in!

Best Ever Tweet:

Brad Malow real estate background:

  • Has been representing NYC buyers and sellers since 2003
  • Transaction portfolio exceeds $35,000,000
  • Currently an agent with Douglas Elliman as well as founder of buyingnyc.com, a website that helps consumers navigate NYC’s complex real estate market
  • Based in New York City, New York
  • His Best Ever Book: A Wrinkle in Time by Madeleine L’Engle

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at: http://www.joefairless.com

Do you need more leads for your real estate business and a platform to grab more leads?

Danny Johnson has a solution for you, go to leadpropeller.com set up your website for success and get more leads!

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:
https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

JF611: How a $350k SFR is Now Worth $950k and What He Did to Add Value!

Listen to the Episode Below (26:09)
Join + receive...
Best Real Estate Investing Crash Course Ever!

Today’s guest is a very savvy investor and real estate professional. He converted a single family property in the New York market into a triplex, which increased the value considerably!

Best Ever Tweet:

Robert Edward Franklin real estate background:

  • Has 15 years of real estate experience in New York City
  • Co-founded Brick Real Estate and grew it from the ground up to one of Brooklyn’s finest residential and commercial firms and now is at William Raveis
  • Got “Rookie of the Year” in residential sales
  • Say hi to him at raveis.com
  • Based in New York City, New York

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at: http://www.joefairless.com

Sponsored by:

Door Devil – visit  http://www.doordevil.com and enter “bestever” to get an exclusive 20% discount on your purchase.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:
https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

 

 

JF604: How Rent Concessions and Other Marketing Tools Can Attract Tenants in a Tough Market

Listen to the Episode Below (20:15)
Join + receive...
Best Real Estate Investing Crash Course Ever!

Our New York City guest is a real estate agent who specializes
in leases. He understands the market inside and out and is going to
share how landlords are able to get the highest return in the
fastest amount of time, this is not an episode to be missed!

Best Ever Tweet:

Elliot Osgood real estate background:

  • Based in New York City, New York and has 6 years of experience
    in the industry as a real estate agent
  • Recently received Rookie of the Year Award at Citi
    Habitats
  • Say hi to him at citibabitats.com
  • He is currently focused on Brooklyn, New York

Please Take 4 Min and Rate and Review the Best
Ever Show
 in iTunes. 

Listen to all episodes and get a FREE crash course on
real estate investing at:http://www.joefairless.com

Need financing?

Are you a buy-and-hold investor or doing fix and
flips?

I recommend talking to Lima One Capital. A Best Ever
Guest told me about them after I asked how he financed 10
properties in one year. They are an asset-based lender with unique
programs for long-term hold and fix and flippers.

Click to
learn
more or, better yet, reach out to Cortney Newmans at Lima
One Capital. His cell is 404.824.6121.

Subscribe to Joe’s YouTube Channel here to learn
multifamily and raising money tips:
https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes  and  Stitcher  so you don’t miss an
episode!

JF599: BIG Money Raised, Investor Partners Set, and on the Closing Day the Lender Says…#situationsaturday

Listen to the Episode Below (32:56)
Join + receive...
Best Real Estate Investing Crash Course Ever!

Today’s guest has been here before. He shares a suspenseful yet agonizing account of funding a large medical building in Nebraska, well, almost funded. Hear how after all the due diligence, raising money, and cutting red tape the deal goes south.

Best Ever Tweet:

Mark Mascia real estate background:

  • President and CEO of Mascia Development and has over 13 years of experience in real estate
  • Based in New York City, New York
  • Prior to forming Mascia Development, Mark was in charge of developing over 2,500 residential units and multiple retail and mixed use properties with a total portfolio of over $1.1B
  • Presently an adjunct professor at NYU teaching Real Estate Development Principles and Practices as well as Advanced Real Estate Financial Modeling
  • Say hi to him at https://invest.masciadev.com/properties/find/

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at:http://www.joefairless.com

Need financing?

Are you a buy-and-hold investor or doing fix and flips?

I recommend talking to Lima One Capital. A Best Ever Guest told me about them after I asked how he financed 10 properties in one year. They are an asset-based lender with unique programs for long-term hold and fix and flippers.

Click to learn more or, better yet, reach out to Cortney Newmans at Lima One Capital. His cell is 404.824.6121.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

JF597: Where You Could Back a BIG Deal with People Who Don’t Even Live Here

Listen to the Episode Below (26:22)
Join + receive...
Best Real Estate Investing Crash Course Ever!

Our Best Ever guest is able to put together large New York City long-term cash flow syndications backed by people that don’t even live here, all international! He is a licensed agent with a keen sense of Manhattan and the Bronx inventory and the path of growth, and he has already completed 20!

Best Ever Tweet:

Russell Putterman real estate background:

  • Started Focus Real Estate in 2010 and merged with Keller Williams in 2014
  • He is based in New York City, New York
  • Began career as a tax consultant and senior auditor
  • Real estate investor since 2008 and has about 20 properties
  • Say hi to him at focusreg.com
  • His Best Ever book: Slight Edge by John Olson

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at:http://www.joefairless.com

Need financing?

Are you a buy-and-hold investor or doing fix and flips?

I recommend talking to Lima One Capital. A Best Ever Guest told me about them after I asked how he financed 10 properties in one year. They are an asset-based lender with unique programs for long-term hold and fix and flippers.

Click to learn more or, better yet, reach out to Cortney Newmans at Lima One Capital. His cell is 404.824.6121.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

JF596: How the Vice President of South Africa Found Our NYC Local Real Estate Expert

Listen to the Episode Below (26:02)
Join + receive...
Best Real Estate Investing Crash Course Ever!

Our guest is a local expert in the Co-Op and condo space in New York City. He shares how much money he invests in real estate platforms such as Zillow and Trulia to attract foreign buyers. He is currently helping the Vice President of South Africa purchase a space in the city. Hear his expert advice and knowledge in the New York real estate market!

Best Ever Tweet:

Jules Borbely real estate background:

  • Based in New York City, NY with a focus in Mahnattan
  • Real estate agent for last five years and has sold about $14,000,000 just last year
  • Say hi to him at http://www.opgny.com, Oxford Property Group
  • His Best Ever book: The Sell by Fredrik Eklund

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at:http://www.joefairless.com

Need financing?

Are you a buy-and-hold investor or doing fix and flips?

I recommend talking to Lima One Capital. A Best Ever Guest told me about them after I asked how he financed 10 properties in one year. They are an asset-based lender with unique programs for long-term hold and fix and flippers.

Click to learn more or, better yet, reach out to Cortney Newmans at Lima One Capital. His cell is 404.824.6121.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

JF595: This REALTOR Has a Few Tips for Investors Looking to Buy

Listen to the Episode Below (32:15)
Join + receive...
Best Real Estate Investing Crash Course Ever!

Today’s guest is a New York City real estate agent who has sold millions in volume using one simple trick. This trick works in any negotiation and she has mastered it. Press play to hear what it is!

Best Ever Tweet:

Kelly Robinson real estate background:

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at:http://www.joefairless.com

Need financing?

Are you a buy-and-hold investor or doing fix and flips?

I recommend talking to Lima One Capital. A Best Ever Guest told me about them after I asked how he financed 10 properties in one year. They are an asset-based lender with unique programs for long-term hold and fix and flippers.

Click to learn more or, better yet, reach out to Cortney Newmans at Lima One Capital. His cell is 404.824.6121.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

JF586: ALL You Need to Know about Investing in NY, NY Townhomes

Listen to the Episode Below (22:16)
Join + receive...
Best Real Estate Investing Crash Course Ever!

Moving to New York City?!? Well you may want to invest in a townhouse, they are highly limited. Today’s guest shares his 1,000,000,000+ sales knowledge in all things regarding townhomes in New York City. We get down to the nitty-gritty including design, floorplan, and square footage. If you ever want to invest in New York City you have to hear this show!

Best Ever Tweet:

Patrick Lilly real estate background:

  • Has successfully sold more than a thousand homes worth in excess of a billion dollars in Manhattan and Brooklyn
  • His team is consistently ranked in Wall Street Journal’s top 250
  • Based in NYC, NY and been selling real estate since 1984
  • Say hi to him at thetownhousespecialist.com

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at:http://www.joefairless.com

Need financing?

Are you a buy-and-hold investor or doing fix and flips?

I recommend talking to Lima One Capital. A Best Ever Guest told me about them after I asked how he financed 10 properties in one year. They are an asset-based lender with unique programs for long-term hold and fix and flippers.

Click to learn more or, better yet, reach out to Cortney Newmans at Lima One Capital. His cell is 404.824.6121.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

JF554: How He Wholesales, Holds, and Raises Money!

Our Best Ever guest first bought a duplex as a buy and hold investment, and now wholesales value add deals. He has raised private capital and seeks to close even more deals this year. Hear what he believes is the best investing strategy!

Best Ever Tweet:

Tosin Oduwole real estate background:

  • Purchased 2 properties as buy and hold investments, done 5 wholesale deals and bought 1 plot of land for development
  • Based in New York City, New York but born and raised in Saint Louis, Missouri
  • Been a real estate investor since graduating high school after several unhappy stints at fast food restaurants
  • He also raises money forjmrepartners.com
  • His Best Ever book is: The 50th Law by Robert Greene

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at:http://www.joefairless.com

Are you committed to transforming your life through Real Estate this year? If so, then go to http://www.CoachWithTrevor.Com and claim your FREE Coaching Session.  Trevor is my personal real estate coach and I’ve been working with him for years. Spots are limited, so be sure to do it now before all the spots are gone.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Listen to the Episode Below (22:30)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF551: How to Connect With Others on a HIGHER Level #skillsetsunday

How important are the relationships around you? If you plan to live a wholesome life of abundance, freedom, and happiness, then you must peer deeper into the individuals that surround you, and today’s guest is ready to show you how!

Best Ever Tweet:

Aliya Levinson real estate background:

  • Coaches emerging female entrepreneurs in conquering hesitancy, overwhelm and fear to launch their service-based business
  • Say hi to her at aliyalevinson.com
  • Is a Certified Professional Coach and holds an MA in writing and based in New York City, New York

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at:http://www.joefairless.com

Are you committed to transforming your life through Real Estate this year? If so, then go to http://www.CoachWithTrevor.Com and claim your FREE Coaching Session.  Trevor is my personal real estate coach and I’ve been working with him for years. Spots are limited, so be sure to do it now before all the spots are gone.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Listen to the Episode Below (19:29)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF541: How a Young Commercial Investor Raised Over $1M to Purchase a 30-Unit Deal

He’s tenacious! Only 28 years old, our Best Ever guest is a real estate agent and investor in New York, New York. He is relentless with his marketing efforts and uses direct mail. He understands the buy and hold market in NY and has observed how others have liquidated and purchased large multiunit buildings. He knows his numbers, listen in and be inspired!

Best Ever Tweet:

Josh Jaouli real estate background:

  • He’s a 28 year old commercial real estate agent focusing on multifamily properties in the New York Metro area
  • He’s also an investor and raised over $1M to purchase his first 30-unit deal valued at $3.5M with a close date in about 4 months
  • He’s raising money for his first distressed debt fund and you say hi to him at multifamilyny.com
  • Based in New York City, New York
  • Here is his guide he uses: https://goo.gl/Y3eVag

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at:http://www.joefairless.com

Are you committed to transforming your life through Real Estate this year? If so, then go to http://www.CoachWithTrevor.Com and claim your FREE Coaching Session.  Trevor is my personal real estate coach and I’ve been working with him for years. Spots are limited, so be sure to do it now before all the spots are gone.

Have you tried REFM’s Valuate software yet? It makes investment analyses a breeze, and makes you look like you spent all week on them. Go to app.getrefm.com to sign up today.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:
https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Listen to the Episode Below (34:30)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF523: How to Build a Business from SCRATCH #skillsetsunday

It starts with a passion for…well what is your passion? What makes you tick? Our Best Ever guest has been with us before, and today he is sharing the true struggle and joy of building a business step by step. He covers important topics that you need to understand such as team building, decision making, and execution. This is one episode you cannot miss!

Best Ever Tweet:

Matthew Rodak’s background:

–          CEO of Fund that Flip, an online lender for residential flips

–          Previously, worked at leading commercial property insurance and risk management firms

–          Based in NYC, NY

–          Hear his Best Advice ever: http://joefairless.com/blog/podcast/jf-07-uncovering-why-real-estate-crowdfunding-is-so-hottt/

 

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at: http://www.joefairless.com

Are you committed to transforming your life through Real Estate this year? If so, then go to http://www.CoachWithTrevor.Com and claim your FREE Coaching Session.  Trevor is my personal real estate coach and I’ve been working with him for years. Spots are limited, so be sure to do it now before all the spots are gone.

Have you tried REFM’s Valuate software yet? It makes investment analyses a breeze, and makes you look like you spent all week on them. Go to app.getrefm.com to sign up today.

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Listen to the Episode Below (32:24)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF512: How She Moved from Medical Billing to Million Dollar Developments

She started out in medical billing, and knew there was something bigger out there—she fell in love with real estate. She works now with investors, general contractors, and planners to develop large multimillion developments. Hear how she did and her Best Ever advice!

Best Ever Tweet:

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at: http://www.joefairless.com

Michelle Wong’s real estate background:

  • Real estate sales agent and is based in NYC, NY
  • About $5M in total transactions over the last 12 months
  • CEO of The Wym Group which is focused on single family and commercial real estate
  • Focus on conversations and large renovations and development in markets across the US
  • Say hi to her at http://www.thewymgroup.com
  • Her Best Ever book is Think and Grow Rich by Napoleon Hill

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Listen to the Episode Below (22:51)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF494: Targeting a Business Idea, and How to Raise $$$ For It #situationsaturday

He has raised over $2,000,000 for his lending business. Our Best Ever guest shares the secret in building capital, which has NOTHING to do with money! His patience and persistence was rewarded and now he heads Fund That Flip! Tune in to see how his company can benefit you!

Best Ever Tweet:

Matthew Rodak

Listen to all episodes and get a FREE crash course on real estate investing at: http://www.joefairless.com

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. . 

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsors:

You find the deals. We’ll fund them. Yes, it’s that simple. Fund That Flip is an online lender that provides fast and affordable capital to real estate investors. We make funding your projects easy so you can focus on what you do best…rehabilitating homes. Learn more at http://www.fundthatflip.com/bestever.

What’s the Best Ever health plan for YOU?

Go to http://www.stridehealth.com/bestever and find a better health plan in 10 minutes or less. On average you’ll save $418 on coverage and care.

Listen to the Episode Below (25:54)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF455: What a “Tasty Deal” is with a NY Multifamily Investor and Author

As a Former Chemistry teacher who knows New York very well, our Best Ever guest jumped in head first! He was able to watch others who were successful in the business and began buying in the early 2000’s. When the bubble burst about a decade later, he was ready to buy deeply distressed homes at big discounts. One of his greatest tips involve speaking with code enforcement to sniff out local offenders. Don’t pass up this episode!

Best Ever Tweet:

Michael Gansberg’s Real Estate Background:

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsors:

You find the deals. We’ll fund them. Yes, it’s that simple. Fund That Flip is an online lender that provides fast and affordable capital to real estate investors. We make funding your projects easy so you can focus on what you do best…rehabilitating homes. Learn more at http://www.fundthatflip.com/bestever.

What’s the Best Ever health plan for YOU?

Go to http://www.stridehealth.com/bestever and find a better health plan in 10 minutes or less. On average you’ll save $418 on coverage and care.

Listen to the Episode Below (33:20)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF413: JV Partners Unite to Take On NYC Purchases

So your pockets are not as deep as the guy next door…and you would rather share the risk. Joint Venture partnerships could be for you! Today’s Best Ever guest is taking down building in “The Big Apple”, a highly tenant friendly city/state. Hear his Best Ever advice that will boost a little more confidence in your next step to investing.

Best Ever Tweet:

Harry Brodsky’s real estate background:

  • Based in New York City, NY and investing in the New Jersey and New York City
  • Does JV deals with other investors
  • Host of Founder Grind podcast
  • Say hi to him at http://www.foundergrind.com

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsors:

You find the deals. We’ll fund them. Yes, it’s that simple. Fund That Flip is an online lender that provides fast and affordable capital to real estate investors. We make funding your projects easy so you can focus on what you do best…rehabilitating homes. Learn more at http://www.fundthatflip.com/bestever.

Listen to the Episode Below (30:24)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF369: Meet, Greet, and Share to BUMP Tenant Retention #skillsetsunday

“Out of the box” is the Millennial way! Our Best Ever guest is innovating the way communities interact through creative tenant retention and job search methods including one you have NEVER heard of, listen up!

 

 

Best Ever Tweet:

 

 

 

 Brad Hargreaves’ background:

 

  • Started his first business his sophomore year of college

  • CEO of Common, dedicated to making housing better by providing flexible, community-minded shared residences

  • Previously co-founded General Assembly

  • Based in New York City, NY

  • Say hi to him at Highcommon.com or…@bhargreaves on Twitter

 

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

 

Made Possible Because of Our Best Ever Sponsors:

 

Patch of Land – Could you do more deals if you had more money? Let the crowdfunding platform, Patch of Land, find investors for you and fund your next deal…and your next deal…and your next deal…and…well, just go find out more at http://www.PatchOfLand.com

Listen to the Episode Below (33:05)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF362: How Empathy Will Bridge Any Relationship Gap

What is empathy? We hear it, but do we use it when we communicate with our friends, family members, and tenants? Listen closely to our Best Ever guest as she walks us through her four steps of mastering empathy, which will certainly improve your personal and business relationships!

 

Best Ever Tweet:

 

 

Carla Blumenthal’s background:

Based in New York City, New York

 

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

 

Made Possible Because of Our Best Ever Sponsors:

 

Norada Real Estate – Having a hard time finding great investment properties?Unfortunately, the best deals are rarely found locally. Norada Real Estate’s simple proven system provides you with the best deals across the U.S. to create wealth and cash-flow.Get your FREE copy of The Ultimate Guide to Out-of-State Real Estate Investing at http://www.NoradaRealEstate.com/Guide

 

 Patch of Land – Could you do more deals if you had more money? Let the crowdfunding platform, Patch of Land, find investors for you and fund your next deal…and your next deal…and your next deal…and…well, just go find out more at http://www.PatchOfLand.com

Listen to the Episode Below (26:40)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF341: Your SIX Step Guide to Conflict Resolution

The next time you have a difficult situation to confront in your business or home life, HERE is your complete guide in order to deal with it. We discuss a SIX step guide to conflict resolution, and how it relates to you as a real estate investor.

Best Ever Tweet:

Bruce Eckfeldt’s business background:

·        Over 20 years of experience building teams, products and companies

·        Previously an entrepreneur and an INC 500 CEO of Cyrus Innovation

·        Technology and coaching companies on develop software

·        Work with startups and high-growth companies to clarify goals and set clear objectives

·        Say hi to him at http://www.Eckfeldt.com

·        Beat an Olypian in a cross country ski race

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsor:

Patch of Land – Could you do more deals if you had more money? Let the crowdfunding platform, Patch of Land, find investors for you and fund your next deal…and your next deal…and your next deal…and…well, just go find out more at http://www.PatchOfLand.com

Listen to the Episode Below (21:11)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF312: When You Should Start Renovating a Property as an OWNER

What happens when you own a property and no one wants to buy it? Well, today’s Best Ever guest shares with us how to look at the numbers in order to determine when to renovate a property, and why you shouldn’t buy properties that YOU would want to live in. Yep, you read that right so listen up!

Best Ever Tweet:

Nicole Beauchamp’s real estate background:

–          Over a decade of experience as a real estate broker specializing in representation of buyers and sellers in NYC

–          Based in NYC, NY

–          2014 Inman News 100 Most Influential RE Leaders

–          She is a writer, educator, real estate and technology geek

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsor:

Patch of Land – Want to learn more about crowdfunding? Let the leading expert in the crowdfunding space, Patch of Land, give you all the info you need to get started. Grab your FREE copy of Top Ten Answers to the Top Ten Crowdfunding Questions athttp://www.PatchOfLand.com/bestever

Listen to the Episode Below (20:21)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF309: How Much You Need to Know About an Area Before You Invest

Ever met someone who says they know New York City like a native? Well, they probably don’t know as much as today’s Best Ever guest. He knows NYC like the back of his hand, and shares with us all we need to know about investing in NYC, how to market your neighborhood in person and especially online, and what YOU need to be able to answer about a neighborhood before you invest.

Best Ever Tweet:

Mike Mishkin’s real estate background:

–          NY real estate broker and owner of Love Where you Live Realty specializing on the Upper West Side of Manhattan where he grew up

–          Also owns and operates http://www.ilovetheupperwestside.com which is a neighborhood blog covering events, restuarants, real estate

–          Used to be a comedian

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsor:

Patch of Land – Want to learn more about crowdfunding? Let the leading expert in the crowdfunding space, Patch of Land, give you all the info you need to get started. Grab your FREE copy of Top Ten Answers to the Top Ten Crowdfunding Questions athttp://www.PatchOfLand.com/bestever

Listen to the Episode Below (24:12)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF269: The Questions You Need to Begin Asking Your Tenants TODAY

This born and bred New Yorker, knows all there is to know about real estate in NYC. But that’s not all! We discuss when to put your properties up for sale, and the best ways to put tenants into your rentals after one showing TODAY!

Best Ever Tweet:

Chris Morley’s real estate background:

–          Owner of Bien Realty

–          Focus is on residential rentals and sales

–          Used to do 70 transactions and now 20 transactions

–          Based out of NYC, NY

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsor:

Patch of Land – Want to learn more about crowdfunding? Let the leading expert in the crowdfunding space, Patch of Land, give you all the info you need to get started. Grab your FREE copy of Top Ten Answers to the Top Ten Crowdfunding Questions athttp://www.PatchOfLand.com/bestever

 The Book On Flipping Houses – Are you looking for a step by step guide for starting your flipping career? Head on over to Amazon to pick up The Book On Flipping Houses by professional house flipper J Scott.

Listen to the Episode Below (26:30)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF265: EVERYTHING You Need to Know About Buying Notes

Get out your pen and paper to start taking notes on…NOTES. Today’s Best Ever guest shares with us everything you need to know about buying non-performing notes and once again, just how important doing YOUR due diligence is.

Best Ever Tweet:

Paul Birkett’s real estate background:

–          Founder of Automation Finance and is based in NYC, NY

–          It generates growth by returning non-performing assets to performing status

–          Buys pools of non-performing residential mortgages and works with the borrower to address the cause of their distress

–          Was in the Guinness Book of World Records for building and mailing the largest greeting card in the world

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsor:

Patch of Land – Want to learn more about crowdfunding? Let the leading expert in the crowdfunding space, Patch of Land, give you all the info you need to get started. Grab your FREE copy of Top Ten Answers to the Top Ten Crowdfunding Questions athttp://www.PatchOfLand.com/bestever

Listen to the Episode Below (25:13)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF264: Have a Big Decision to Make In Your Future? Well, Here’s Your Step By Step Guide to Make the Right One #skillset Sunday

Today, we discuss how to make a decision for something that you continue to question. I have had a lot of big decisions to make recently, and have developed a step by step guide that has helped me come to the best decision for MY life. Apply this to your life today, to be sure you can stand by your decision.

Best Ever Tweet:

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsor:

Patch of Land – Want to learn more about crowdfunding? Let the leading expert in the crowdfunding space, Patch of Land, give you all the info you need to get started. Grab your FREE copy of Top Ten Answers to the Top Ten Crowdfunding Questions athttp://www.PatchOfLand.com/bestever

Listen to the Episode Below (17:20)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF235: Why Millenials are Revolutionizing Real Estate

You may want to get used to seeing LOL, G2G, and TTYL because today’s Best Ever guest shares with us why millennials are completely changing the real estate industry. We discuss the Best Ever ways to cater your business to millennials why they are putting off the white picket fence in the suburbs to stay in the city.

Best Ever Tweet:

Matt Britton’s background:

–          Founder and CEO of MRY  – a social media and youth marketing agency based in New     York City, New York

–          Grew MRY from a one-man startup to a company with over 600 employees

–          MRY has been named Social Media Agency of the Year by Mashable and one of the 10      most innovative companies in the world by Fast Company

–          Author of YouthNation: Building Remarkable Brands in a Youth-Driven Culture

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsors:

Norada Real Estate Investments – Having a hard time finding great investment properties?  Unfortunately, the best deals are rarely found locally. Norada Real Estate’s simple proven system provides you with the best deals across the U.S. to create wealth and cash-flow.  Get your FREE copy of The Ultimate Guide to Out-of-State Real Estate Investing

Patch of Land  Want to learn more about crowdfunding? Let the leading expert in the crowdfunding space, Patch of Land, give you all the info you need to get started. Grab your FREE copy of Top Ten Answers to the Top Ten Crowdfunding Questions athttp://www.PatchOfLand.com/bestever

Listen to the Episode Below (17:55)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF234: Shark Tank’s Barbara Corcoran Reveals Her Best Real Estate Investing Advice Ever

This shark shouldn’t scare you, but INSPIRE you. She shares with us how to spot an up and coming area to invest, what YOU can do to quickly spot your team’s next superstar, and how avoiding her WORST investment can be your best investment. Listen up, because this shark didn’t get to the top of the real estate world by staying in the shallow end!

Best Ever Tweet: 

Barbara Corcoran’s real estate background: 

             Took a $1,000 loan and created The Corcoran Group, a New York residential real estate               brokerage which she sold in 2011 for $66 million  

–      Author of Shark Tales and shark investor on ABC’s hit reality show, Shark Tank and on  Beyond the Tank which premiers May 1st

–     Founder of Barbara Corcoran Venture Partners and she is based in New York City, New York

–      Earned straight D’s in high school and college and had twenty jobs by the time she  turned 23

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsors:

Norada Real Estate Investments – Having a hard time finding great investment properties?  Unfortunately, the best deals are rarely found locally. Norada Real Estate’s simple proven system provides you with the best deals across the U.S. to create wealth and cash-flow.  Get your FREE copy of The Ultimate Guide to Out-of-State Real Estate Investing

Patch of LandWant to learn more about crowdfunding? Let the leading expert in the crowdfunding space, Patch of Land, give you all the info you need to get started. Grab your FREE copy of Top Ten Answers to the Top Ten Crowdfunding Questions athttp://www.PatchOfLand.com/bestever

Listen to the Episode Below (33:04)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF223: Insider Tips on the Online Real Estate Market

Ask not what you can do for technology, ask what technology can do for you. Today’s Best Ever guest shares with us how we can bid on properties online, and the importance of technology in the real estate industry.

 Best Ever Tweet:

Eric Eckardt’s real estate background:

  •  Vice President at Hubzu.com based in New York City, NY
  •  Named one of the top technology real estate firms
  •  Prior to that he was the Founder of Eckardt Holdings which launched startup companies like Zonic Realty, an online brokerage
  •  He is the youngest of 8 and spread is 18 years

 Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

 Made Possible Because of Our Best Ever Sponsors:

Norada Real Estate Investments – Having a hard time finding great investment properties?  Unfortunately, the best deals are rarely found locally. Norada Real Estate’s simple proven system provides you with the best deals across the U.S. to create wealth and cash-flow.  Get your FREE copy of The Ultimate Guide to Out-of-State Real Estate Investing

Patch of LandWant to learn more about crowdfunding? Let the leading expert in the crowdfunding space, Patch of Land, give you all the info you need to get started. Grab your FREE copy of Top Ten Answers to the Top Ten Crowdfunding Questions athttp://www.PatchOfLand.com/bestever

Listen to the Episode Below (11:19)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF221: Titles! Titles! Read all about it!

You know the age old saying “Trust is gained in drops and lost in buckets?” Today’s Best Ever guest shares with us the importance of building trust with your clients, discusses title insurance, and a neat loophole to investing in the crowdfunding marketplace.

Best Ever Tweet:

 Allen Shayanfekr’s real estate background:

  •  Founder and CEO of Sharestates, a real estate crowdfunding marketplace based in NYC, NY
  •  Currently practicing law in New York and CT and uses his legal expertise in securities law to   help Sharestates promote and produce public and private offerings        
  •  Got his JD from Touro Law Center where he was top 6% in his class
  •  Say hi to Allen @allenshayanfekr or Sharestates @sharestates

 Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

 Made Possible Because of Our Best Ever Sponsors:

Norada Real Estate Investments – Having a hard time finding great investment properties?  Unfortunately, the best deals are rarely found locally. Norada Real Estate’s simple proven system provides you with the best deals across the U.S. to create wealth and cash-flow.  Get your FREE copy of The Ultimate Guide to Out-of-State Real Estate Investing

Patch of Land – Want to learn more about crowdfunding? Let the leading expert in the crowdfunding space, Patch of Land, give you all the info you need to get started. Grab your FREE copy of Top Ten Answers to the Top Ten Crowdfunding Questions at http://www.PatchOfLand.com/bestever

Listen to the Episode Below (22:20)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF213: One SURPRISING Way to Find an Off-Market Multifamily Deal

Initially today’s Best Ever guest wanted to syndicate multifamily deals but he couldn’t find anything that made sense. Then he stumbled into a surprising way to get the off-market multifamily deals when he wasn’t even looking for them! Discover this and much more on today’s episode.

Best Ever Tweet:

Jonathan Makovsky’s real estate background:

–        Invests in Connecticut with a focus on single family home fix and flips

–        His first deal made $47,000 and his second deal expects to make over $60,000

–        Has wholesaled and in process of syndicating his first real estate deal – a 16-unit apartment community and is based in New York City, New York

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsors:

Norada Real Estate Investments – Having a hard time finding great investment properties?  Unfortunately, the best deals are rarely found locally. Norada Real Estate’s simple proven system provides you with the best deals across the U.S. to create wealth and cash-flow.  Get your FREE copy of The Ultimate Guide to Out-of-State Real Estate Investing

Patch of Land – Could you do more deals if you had more money? Let the crowdfunding platform, Patch of Land, find investors for you and fund your next deal…and your next deal…and your next deal…and…well, just go find out more at http://www.PatchOfLand.com

Listen to the Episode Below (23:56)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF211: How to Make $10,000,000 in 10 Days

The meteoric rise of today’s Best Ever guest is astonishing. Listen closely as he gives you the step-by-step process for how to make $10,000,000 in just 10 days.

Best Ever Tweet:

Ted Winters’s real estate background:

·        Director of the Ted Winters Group, a Real Estate Luxury Brokerage firm in New York, NY that has been in business for ten years

·        Ranked in the top 1 percent nationally for professional realtors, Ted oversees acquisitions and asset management for $500M and growing portfolio of multifamily assets in the United States

·        He also teaches advanced real estate courses at Columbia University in New York City

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsors:

Norada Real Estate Investments – Having a hard time finding great investment properties?  Unfortunately, the best deals are rarely found locally. Norada Real Estate’s simple proven system provides you with the best deals across the U.S. to create wealth and cash-flow.  Get your FREE copy of The Ultimate Guide to Out-of-State Real Estate Investing

Patch of Land – Could you do more deals if you had more money? Let the crowdfunding platform, Patch of Land, find investors for you and fund your next deal…and your next deal…and your next deal…and…well, just go find out more at http://www.PatchOfLand.com

Listen to the Episode Below (20:13)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF195: How to Become a Billion Dollar Developer

Listen to today’s Best Ever Guest’s inspirational journey about how he started in the development business. And, the lessons he learned along the way that you can apply to your business as well.

Best Ever Tweet:

Mark Mascia’s real estate background:

–        President and CEO of Mascia Development and has over 12 years of experience in real estate based in New York City, New York

–        Prior to forming Mascia Development, Mark was in charge of developing over 2,500 residential units and multiple retail and mixed use properties with a total portfolio of over $1.1B

–        Presently an adjunct professor at NYU teaching Real Estate Development Principles and Practices as well as Advanced Real Estate Financial Modeling

–        Say hi to him at http://masciadev.com/

Listen to the Episode Below (29:15)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF188: Qualify a Multifamily Deal in Minutes with These FOUR Questions

Your time is valuable. That’s why it’s imperative to know how to quickly qualify a deal so you know if you should spend more time looking into it or pass on it. Todays’ Best Ever guest shares with you the FOUR questions you need answers to.

Best Ever Tweet:

Joe Stampone’s real estate background:

–        Vice President of Atlas Real Estate Partners based in New York City, New York

–        Assisted in debt and equity placement on $450M of acquisitions

–        Leads company’s strategic vision including branding, investor management and investor platforms

–        Analyzes the performance of the company’s 25+ properties under management

–        Founder of A Student of the Real Estate Game which a popular real estate community of real estate professionals

Subscribe in  iTunes  and  Stitcher  so you don’t miss an episode!

Sponsored by Patch of Land – Could you do more deals if you had more money? Let the crowdfunding platform, Patch of Land, find investors for you and fund your next deal…and your next deal…and your next deal…and…well, just go find out more at http://www.PatchOfLand.com

Listen to the Episode Below (25:59)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF178: TWO Ways to Structure an Agreement with Local Team Members

Want to invest in a market outside of where you live? Want to learn how to structure partnership agreements with local team members? Today’s Best Ever guest shares with you TWO ways

Best Ever Tweet:

Anthony Dadlani’s real estate background:

–        President of A Plus World Group based in New York City, New York

–        15 years as an equity markets trader and portfolio manager

–        Experience buying and selling private liens, notes and mortgages

–        Actively buying single family homes

Subscribe in  iTunes  and  Stitcher  so you don’t miss an episode!

Sponsored by Patch of Land – Could you do more deals if you had more money? Let the crowdfunding platform, Patch of Land, find investors for you and fund your next deal…and your next deal…and your next deal…and…well, just go find out more at http://www.PatchOfLand.com

Listen to the Episode Below (10:23)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF148: Discover these PROVEN Ways to Get the Most Money for your Property When You Sell

Today’s Best Ever guest tells you why she started a luxury auction company and shares some tips on how you can get the most value out of your property when it’s time to sell.

Best Ever Tweet:

Consider the next owner of your property.

Laura Brady’s real estate background:

–        Founder and president of Concierge Auctions based in New York City

–        They are the smart way to buy and sell the world’s most unique, high-end properties

–        Former top luxury real estate agent

–        Company is going on the 8th year in biz and sold over $725MM in luxury properties

Subscribe in  iTunes  and  Stitcher  so you don’t miss an episode!

Sponsored by Cozy – Simple, free online rent payments, tenant screening and credit checks. Get Cozy for free at cozy.co

Listen to the Episode Below (23:10)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF127: This Unique Approach Closed 5,000 Apt Units in 10 years

Today’s Best Ever guest tells you how he created a company from scratch that went on to do over $1,000,000,000 in transactions. Learn the business model he initially employed and how he evolved his business over time.

Tweetable quote:

Nick Jekogian’s real estate background:

–        President & CEO of Signature Group based in New York City

–        Over 25 years in real estate and started with his first apartment building in Philadelphia

–        Has since made more than 1,000 separate equity, debt or corporate acquisitions with deal value in excess of $1,000,000,000 (yes, billion!)

–        Co-Author of Your Turn: Two Brothers Transforming Themselves and Their Relationships Through Long-Distance Running

Subscribe in  iTunes  and  Stitcher  so you don’t miss an episode!

Sponsored by Cozy – Simple, free online rent payments, tenant screening and credit checks. Get Cozy for free at cozy.co

Listen to the Episode Below (18:55)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF91: Raising Money from International Investors

How do you set up international investors so they can take their money and invest in your deal? Today’s Best Ever guest shares with you the process.

Tweetable quote:

Decide what you want not what you think is possible.

Ben Gray’s real estate background:

–        Founder of American Properties International based in New York City

–        Match up international investors with turnkey American investment properties

–        Say hi to him at http://www.Americanproperties.com.au

–        Experience raising money and working with international investors to invest in United States properties

Subscribe in iTunes and Stitcher so you don’t miss an episode!

Sponsored by: Twenty Four Sound – visit http://www.twentyfoursound.com and mention “bestever” for an exclusive 20% discount on your purchase.

Listen to the Episode Below (16:52)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF84: Include this Little-Known Clause in your Next Contract

A wonderful conversation with today’s Best Ever guest where you learn about market evaluations, a contract clause to add in to your next deal, daily reminder system to be more effective and much, much more. This interview is loaded with #bestever advice.

Tweetable quote:

Louis Leone’s real estate background:

–        Founder at REALvestment, a start-up looking at big data to identify local and emerging real estate markets

–        As former Senior VP at Predential Real Estate, he was responsible for the 5th highest number of total transactions in New York City in 2010

Subscribe in iTunes and Stitcher so you don’t miss an episode!

 

Sponsored by: Twenty Four Sound – visit http://www.twentyfoursound.com and mention “bestever” for an exclusive 20% discount on your purchase.

Listen to the Episode Below (21:55)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF63: Revealing Five Profitable Exit Strategies for Note Buying  

Note buying. Buying notes. And more note buying…you want to hear from a note buying expert? Listen to today’s Best Ever guest as he shares how to do the due diligence on note buying and the reveals five exit strategies for note buying.

Tweetable quote:

 

Val Sotir’s real estate background:

–        Founder of Watermark Capital Partners (http://www.watermarkcapitalfund.com/)

–        In 2009 he was featured on the cover of Forbes magazine as one of the mortgage survivors on Wall Street

–        10 years of experience as a stock broker

Subscribe in iTunes and Stitcher so you don’t miss an episode!

 Sponsored by: Door Devil – visit  http://www.doordevil.com  and enter “bestever” to get an exclusive 20% discount on your purchase.

Listen to the Episode Below (22:34)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF 51: A Multifamily Biz Model that Quickly Scales Your Wealth

Today’s Best Ever guest shares with you the biz model he uses to quickly scale his apartment investing business. Next week he is closing on a $12,000,000 property – I think you’ll want to hear what he has to say.

Tweetable quote:

Chris Urso’s real estate background:

–        Raised over $15,000,000 of private equity

–        In last 4 years his company has acquired over $45,000,000 worth of apartments

–        He and his wife began investing in 2001 originally focusing on residential

–        Co-founder of U.R.S. Capital Partners & Elite Apt Coaching, a multifamily coaching and training program (http://www.eliteapartmentcoaching.com/)

Subscribe in iTunes and Stitcher so you don’t miss an episode!

Sponsored by: Door Devil – visit  http://www.doordevil.com  and enter “bestever” to get an exclusive 20% discount on your purchase.

Listen to the Episode Below (17:36)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF43: Letting the Market Dictate the Strategy

Today’s Best Ever guest shares a case study of how his company changed their strategy in the middle of a project and came out ahead. Plus, if you’re interested in the hotel business you’ve got to listen to what Jonathan has to say.

Tweetable quote:

Jonathan Minkoff’s real estate background:

–        Co-Founder and CFO of Ash NYC (www.ashnyc.com)

–        Currently working on projects totaling over $200 MM

–        Focused on improving assets by design

Subscribe in iTunes and Stitcher so you don’t miss an episode!

 Sponsored by: Door Devil – visit http://www.doordevil.com and enter “bestever” to get an exclusive 20% discount on your purchase.

Listen to the Episode Below (14:42)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF 34: If You Give a Mouse a Cookie…

As landlords it’s almost impossible to not get caught up in some sob story a tenant has. It’s a judgment call we all have to make and then live with the consequences. Listen to today’s Best Ever guest as she shares her experience and, consequently, her advice for you if you are in the same position.

 Tune in to listen to her Best Real Estate Investing Advice Ever!

Shannon Morrow’s real estate background:

–        Owns a 3-family building in Brooklyn, NY as her 1st investment property

–        She lives in one unit and rents out the other two

–        Currently works as a real estate agent in NYC

–         Previously worked as a loan processor who did over $150,000,000 worth of loans with investors

Subscribe in iTunes and Stitcher so you don’t miss an episode!

 

Sponsored by: Door Devil – visit http://www.doordevil.comand enter “bestever” to get an exclusive 20% discount on your purchase.

Listen to the Episode Below (13:45)
Join + receive...
Best Real Estate Investing Crash Course Ever!

JF 28: Investing in Dirty Words

Listen to the Episode Below
Join + receive...
Best Real Estate Investing Crash Course Ever!

How many investors do you know who are focused on buying suburban office space? Bet you can count the number on one hand. In fact, a lot of investors consider “suburban office space” dirty words. And that’s why listening to this interview with Arndt is so important. He is taking a contrarian mindset to real estate and doing very well with it.

Arndt Nicklisch’s real estate background:

–        Closed on almost $1.2BN in real estate transactions

–        Founder of American Eagle Capital Partners (http://www.aecp.com/)

–        Focused on investing in suburban office real estate

Subscribe in iTunes and Stitcher so you don’t miss an episode!

Sponsored by: Door Devil – visit www.doordevil.com and enter “bestever” to get an exclusive 20% discount on your purchase.

JF 26: Starting a Multifamily Syndication Biz Ain’t Easy…But Here’s Proof It’s Worth It

Listen to the Episode Below
Join + receive...
Best Real Estate Investing Crash Course Ever!

Jonathan used his reputation, networking skills, persistence and smarts to start his own real estate investing company that now controls over 230 apartment units. But he had some issues along the way. First, he lost out on two deals days before closing because the financing fell through. That was a very costly hiccup. Learn how he overcame it and what he learned from the experience.

Listen to hear his best advice ever!

Jonathan Twombly’s real estate background:

  • Board member on the Harvard Real Estate Alumni Organization in New York City
  • Managing Member of Two Bridges Asset Management Company which controls over 230 multifamily units (http://twobridgesmgmt.com/)
  • Former real estate lawyer specializing in litigation involving hotels and other real estate assets

Subscribe in iTunes and Stitcher so you don’t miss an episode!

Sponsored by: Door Devil – visit www.doordevil.com and enter “bestever” to get an exclusive 20% discount on your purchase.

JF 12 : Continually Evolve Your Approach…or Become Extinct

Listen to the Episode Below
Join + receive...
Best Real Estate Investing Crash Course Ever!

Ankit Duggal has successfully invested and exited in over $50,000,000 worth of real estate assets since 2008. He focuses on multifamily deals and tax liens in the Northern New Jersey market and discusses with us the importance of maintaining your focus on what you know while evolving how you make the deals happen.

Ankit’s real estate background:

  • A wide variety of experiences from hard money lender to brokering deals to deal syndication
  • His company Real Estate Renaissance Group (www.rernj.com) has deployed over $90,000,000 into investments

Subscribe on iTunes so you don’t miss an episode.

Listen to the show to hear his Best Real Estate Investing Advice Ever!

 

JF 07: Uncovering Why Real Estate Crowdfunding is So HOTTT

Listen to the Episode Below
Join + receive...
Best Real Estate Investing Crash Course Ever!

Matt Rodak recently launched a crowdfunding real estate website called Fund that Flip. He talks to us about crowdfunding rules and why it’s beginning to take off in a big way.

Matt’s real estate background:

  • Founder of Fund that Flip (www.fundthatflip.com), a crowdfunding platform for residential flips – based in New York City
  • Worked with major real estate companies in a variety of capacities including most recently as a business development executive for FM Global, a commercial real estate insurance company

Subscribe on iTunes so you don’t miss an episode.

Listen to the show to hear his Best Real Estate Investing Advice Ever!

JF 03: Learn Why Accredited Investors Invest in Your Deal

Listen to the Episode Below
Join + receive...
Best Real Estate Investing Crash Course Ever!

So often we hear from the people putting syndicated deals together but rarely (ever?) do the actual investors in the deals get interviewed. Wouldn’t it be interesting to hear from an investor on WHY he investors in deals and WHAT he looks for?

Brandon Evans’s real estate background:

  • Passive investor in multiple multifamily syndicated deals
  • Successful NYC entrepreneur who has created or co-created 4 companies

Subscribe on iTunes so you don’t miss an episode.

Listen to the show and learn how to appeal to investors when you are raising money! (aka – Best Advice Ever!)

Do NOT follow this link or you will be banned from the site!