Education: Learn About Real Estate Investment

Whether you are brand new to this industry or have been buying and selling properties for decades, you should always want to learn more about real estate investments. This driven mindset has helped me since I quit my advertising job and began to work for myself, and it will continue to serve me well as long as I’m working.

The best real estate education is not easy to find, though. Locating a helpful and trustworthy mentor, for example, can take a lot of time. Experienced, intelligent advisors willing to take people under their wings don’t exactly grow on trees.

And there is no shortage of books, blogs, social media accounts, YouTube videos, and podcasts to sift through. At best, listening to those offering poor guidance will waste your time. At worst, it will lead to destructive financial decisions.

Without question, finding and applying the right knowledge is vital for any investor.

Over the years, as I have gained control of more than $400,000,000 worth of real estate, I have been fortunate to receive help from fantastic mentors and locate a wealth of information that has sent me down a successful path. And now, I want to pass some of that wisdom down to you.

In this section of my blog, you will be able to learn about real estate investments from some of the brightest minds in our industry today. You will figure out how to approach a potential mentor, how to receive free or paid educational services, how to systemize your education, and more.

And for an exhaustive collection of resources that I approve of, click here to view books, podcasts, and pieces of advice that I recommend.

10 Fastest Appreciating Housing Markets in the US

Veros recently released it’s third quarter VeroFORECAST, which predicts property value trends in metropolitan statistical areas (MSA) across the US between September 2018 and September 2019.

According to the report, the top 100 most populated MSAs will appreciate 4.5% over the next 12 months. Of all MSAs, Vero predicts that 97% will appreciate and 3% will depreciate. The VP of Statistical and Economic Modeling at Veros, Eric Fox, said “This is the 25th quarter in a row where this index has forecasted overall appreciation.”

VeroFORECAST predicts that seven MSAs will experience depreciation over the next 12-months:

  • Torrington, Connecticut: -0.2%
  • Texarkana, Texas-Texarkana, Arkansas: -0.2%
  • Ocean City, New Jersey: -0.4%
  • Peoria, Illinois: -0.7%
  • Danville, Illinois: -1.2%
  • Vineland-Millvilee-Bridgeton, New Jersey: -1.6%
  • Farmington, New Mexico: -2.2%

Now, that doesn’t mean that you should invest in these markets, because when we follow the Three Immutable Laws of Real Estate Investing, we don’t take appreciation into account. It is just a bonus. However, if you want to increase your chances of receiving this appreciation bonus, you should consider looking into these 10 markets that are predicted to experience the most appreciation in the next 12 months.

 

10. Seattle-Tacoma-Bellevue, Washington

Belkins Northeast

 

Projected appreciation between 10/1/18 and 10/1/19: +9.3%

 

9. Denver-Aurora-Broomfield, Colorado

Denver.org

 

Projected appreciation between 10/1/18 and 10/1/19: +9.5%

 

8. San Francisco-Oakland-Fremont, California

Lonely Planet

 

Projected appreciation between 10/1/18 and 10/1/19: +9.6%

 

7. Reno-Sparks, Nevada

Think Stock

 

Projected appreciation between 10/1/18 and 10/1/19: +10.0%

 

6. Carson City, Nevada

Flickr

 

Projected appreciation between 10/1/18 and 10/1/19: +10.1%

 

5. Olympia, Washington

Wild Tales Of

 

Projected appreciation between 10/1/18 and 10/1/19: +10.3%

 

4. Bellingham, Washington

Wikipedia

 

Projected appreciation between 10/1/18 and 10/1/19: +10.6%

 

3. Las Vegas-Paradise, Nevada

Time Out

 

Projected appreciation between 10/1/18 and 10/1/19: +10.8%

 

2. Boise City-Nampa, Idaho

OneClass

 

Projected appreciation between 10/1/18 and 10/1/19: +11.2%

 

1. Bremerton-Silverdale, Washington

Wikipedia

 

Projected appreciation between 10/1/18 and 10/1/19: +11.7%

 

Want to learn how to build an apartment syndication empire? Purchase the world’s first and only comprehensive book on the exact step-by-step process for completing your first apartment syndication: Best Ever Apartment Syndication Book.

real estate thanksgiving

What 16 Real Estate Investors Are Grateful For This Thanksgiving

Each week, we post a new question to the Best Ever Show Community on Facebook. The Best Ever Show Community is a place where real estate entrepreneurs of all stripes and sizes can come together to interact with each other, me, and the guests featured on my podcast with the purpose of everyone helping each other reach the next level in their businesses and their lives.

What better way to add value than to ask you, the community, for your Best Ever advice on a variety of different real estate topics. This week, the question was “what is a property or deal, person, experience, book, video, conference, etc. that has been influential to your business’s success and you are grateful for?” 

Thank you to the 16 active investors who responded. Read on the learn about the people, books/podcasts/videos, and events/moments have been influential to active, successful real estate entrepreneurs:

 

Best Ever People

  1. Theo Hicks – “Joe Fairless. Would have never gotten the confidence to pursue my first apartment syndication deal if I had never met Joe!”
  2. Holly Williams – “I would say this really smart kid named Joe Fairless from Texas in the Big City. Happy thanksgiving to the Growing Fairless clan my friend.”
  3. Whitney Elkins Hutten – “Lane Kawaoka and Chris Miles. Future Apartment Syndication Goals: Joe Fairless.”
  4. Mike Knudstrup – “1. My local real estate investors group where a few presenters owned MHP’s (mobile home parks). 2. Parents of friends and acquaintances who owned parks and it worked for them.”
  5. Julia Bykhovskaia – “My man Tony Robbins! It was at the right place at the right time for me 2 years ago. All I’ve heard is ‘you have to burn the boats,’ have to ‘make a decision and have absolute certainty’, and ‘you don’t need to know how. The how will come.’. 3 months later I read Rich Dad Poor Dad and got even more convinced that being an employee is not the way to go. 15 months later I left my J.O.B.! ‘The how’ of course became real estate.”

 

Best Ever Books/Podcasts/Videos

  1. Grant Rothenburger – “Mine is lame but honest. Rich Dad Poor Dad for opening my eyes to real estate in the first place.”
  2. Trevor McGregor – “Think And Grow Rich by Napoleon Hill has been a game changer throughout my entire Real Estate Journey. I highly recommend it to anyone who hasn’t read it, or if you HAVE read it, pick it up again or be sure to listen to the Audio Version (When you’re not listening to the Best Real Estate Advice Show Ever – Podcast with Joe). Happy Thanksgiving Everyone!”
  3. Glen Sutherland – “Long time listener of the show (Best Real Estate Investing Advice Ever). Appreciate all you time you put into it.”
  4. Michael Collins – “The Strangest Secret; Earl Nightingale. Time less advice. 31 minutes long on YouTube, loaded with great information.”

 

Best Ever Events/Moments

  1. John Jacobus – “The first Best Ever Conference in Denver in 2017. This was a game changer in terms of forming new partnerships, sparking new actions, and building momentum.”
  2. Adam Adams – “Best Ever Conference
  3. Charlie Kao – “A lot of moments but being on my very first podcast which happened to be BiggerPockets. I kept getting asked to be on other podcasts and had a lot of people reaching out to me for advice and it dawned on me how much more I was really capable of. I have doubled or tripled our business every year since the podcast.”
  4. Cory Boatright – “1. My first short sale that I stumbled into with negative equity and created a Short Sale Empire that made millions in revenue. 2. The first time I sold 6-figures in one hour from stage in front of 500 people. 3. My experience at the end of 2012 with thyroid cancer. 4. I am grateful it happened because of GratefulProject.org and the many miracles that came from waking up and being aware of life in a new way. 5. Meeting my wife and two step kids. Skydiving to overcome my fear of heights?
  5. Dustin W. Miles – “I wouldn’t say it was any one experience/book/conference, but a collection. One of the first memories I recall is from childhood. I played soccer on a team with a kid (we were around 10). His parents owned many skyscrapers around Fort Worth. I would say that first opened me up to the idea of “why not me.” I would ride my bike around Fort Worth wondering who owned all the other buildings. Fast forward to today, we are working on syndication #9 in the past ~5 years.”
  6. Jason Stofer – “For me this is easy…I just came from it! Adam Triple A Adams event Raising Money Summit!! I have already re-written my business plan, reworked my website and am know working on my mind-map.”
  7. John Fortes – “Grateful for communities and networks such as these and all educational platforms whether it comes from books, podcasts, videos, and conferences as you mentioned. At the end of the day I’m just happy and grateful to be here breathing this beautiful air and sharing this earth with my loved ones. Thank you for asking. Happy Thanksgiving & God bless!”

 

What about you? Comment below: What is the one thing you are grateful for this Thanksgiving?

 

 

10 Real Estate Tours Turned Haunted House Experience

When you attend a haunted house or haunted trail leading up to Halloween, you expect to be frightened – in fact, you want to be filled with fear! That’s because you know that the experience is pretend.

Unlike haunted house, when you attend a property tour at a prospective deal, you typically do not expect to be surprised, let alone terrified. However, every once in a while, you will enter a property and walk away more frightened than you would coming out of even the most intense haunted house.

Here are 10 investors who expected an uneventful property tour but who instead walked into an unmarked haunted house.

1. The Nudist: During Michael Beeman’s strangest property tour, he knocked on the door and was greeted by a screaming naked man. The property was sold through a real estate auction. Michael won the auction with a bid of $7500 – because he was the only bid, which likely had something to do with the screaming nudist. But, the bank decided to hold onto the property in order to sell it at a higher price in the future. 5 months later, the property is still for sale, and the screams of the nudist still echo in Michael’s mind!

2. Bloody Babies: When Jordan Moorhead walked into the living room during a property tour, he was confronted with baby doll heads covered in fake blood strung up on the ceilings.

3. Fried Racoon: While touring a vacant duplex, Chuck Darling approached the furnace in the basement and discovered what looked like a furry towel hanging from one of the panels. Upon further inspection, the towel transformed into a racoon tail, with the remainder of the raccoon, cooked medium rare, inside of the furnace.

4. Adult Cartoonist: During a tour of a multifamily building, Tyson Cross walked into a unit that was covered in little kid cartoons. The weird part was that no children lived there. And the weirdest part was when a grown man walked out of the closet and said “hey, I’m filming in here.” To this day, no one knows why the unit was covered in cartoons or what was being filmed…

5. It’s Hammer Time: Robert Lawry II toured a REO property that had a bloody handprint on the wall. And it wasn’t a prank. It was because someone had been murdered in the unit with a hammer, which explained why the doors and windows were covered in police seals and tape.

6. Wow, What a Hole!: A wholesaler sent Whitney Elkins Hutten a deal and mentioned that there was a hole in the roof. No big deal, right? Well, when Whitney arrived at the property, the hole turned out to be caused by the neighbor’s large tree falling on the home. The damage was so severe that the entire second story needed to be replaced.

7. Scratch and Sniff Cat Picture: Dave Roberts toured a home that was previously inhabited by a cat hoarder. The staple of the home was this beautiful scratch and sniff masterpiece (the picture wasn’t actually the source of the urine and feces smell. That was coming from the carpet below…).

8. Wigs, Masks, and Chalk: At an REO listing, Lisa Rush found a chalk outline of a person who had died in a fire. All of the content remained in the home, including the previous owner’s wig and scary mask collection.

9. Leaning Tower of Feces: I think this picture taken by Colin Smith during a property tour speaks for itself…

10. Black Cats: Matthew Mesick bought and flipped a house that had over 150 black cats who were terrorizing the neighborhood. It was such an ordeal that it made the local newspaper, which you can see by clicking here.

 

What about you? Comment below: What was the scariest thing you’ve come across during a property tour?

 

Want to learn how to build an apartment syndication empire? Purchase the world’s first and only comprehensive book on the exact step-by-step process for completing your first apartment syndication: Best Ever Apartment Syndication Book.

20 Tenant Horror Stories

Halloween is about binging on Reese’s Peanut Butter Cups (or Almond Joys if you’re a weirdo), attending costume parties, screaming your way through haunted houses, and re-watching the Halloween movie series from start to finish.

However, as real estate investors, the horror of Halloween isn’t limited to October 31st, especially if you are a landlord. A landlord has the potential to receive a phone call about an outrageous problem with a tenant 365 days out of the year.

Here are 20 shocking horror stories from active real estate investors who are a part of the Best Ever Show Community on Facebook involving a tenant that would make the plot of the next Halloween movie.

  1. The Couch and a Python: This story comes from Daniel Holmund’s grandfather. A tenant moved out of a unit and all that remained was an ugly couch and a cage…that held a massive 6-foot-long python.
  2. Breaking Bad: Jay Helms just bought his first investment property from a tax deed auction. When he went to visit his new asset, he expected the property to be vacant. Instead, he found someone squatting in the house. They were an aspiring Walter White (more like Jessie Pinkman) who was stealing his mother’s disability checks to purchase supplies for his meth lab.
  3. Rats and Needles: Julie Fagan inherited a tenant who filled the unit with caged rats and used needles in every room. The day she purchased the apartment building, she sent the tenant a 7-day eviction notice, and the rats and needles were gone within a week.
  4. The Wrong Type of Thirst Quencher: Josh Levine found around 100 lemon-lime Gatorade bottles inside one of his apartment units. Upon further inspection, he realized it wasn’t lemon-lime Gatorade, but urine…
  5. The Service Dog of Doom: A tenant at one of Linda Weygant’s rentals got a new “service dog.” Once Linda found out, she allowed the tenant to keep the service dog without charging them extra pet rent or a pet deposit. In return for her generosity, Linda was sued for discrimination, with the tenant claiming that Linda wasn’t allowed to even ask about the service dog. The tenant overstayed the lease and was subsequently evicted. But, for the next year, Linda received threats against her life and the property from this tenant while going through a State of Colorado Discrimination investigation. The situation resolved itself in Linda’s favor eventually, but talk about a nightmare!
  6. Pitbull: Mitchell Drimmer had a tenant skip out in the middle of the night, leaving an aggressive looking pitbull behind.
  7. The Worst Arsonist Ever: Todd Dexheimer had a tenant who was a mother taking care of one of her cousin’s kids. The husband was in jail at the time and the mother lost custody of the child due to drug issues. Once her husband got out of jail, he found the address of Todd’s property. He tried and failed to kick down the door at which point he escalated to attempting to burn down the house. Luckily, this attempt failed too. He ended up destroying the vehicle in the garage and did some minor damage to the house. Todd received a call from the police explaining the situation and that his tenant was in protective custody. They said most of her belongings were removed and whatever was left could be gotten rid of.
  8. Orgy Gone Wrong: The oddest horror story goes to Heidi Nelson. One of her tenants was having a sex-capade that went wrong and the tenant ended up losing their life in the process.
  9. More Breaking Bad: Jay Helms isn’t the only person who had an aspiring Walter White/Jessie Pinkman as a tenant. Garrett White received a call from the fire apartment about one of his duplexes catching fire. When he arrived at the property, he was met by seven police cruisers. He finds out that the fire was caused by an exploding lithium battery. Lithium is a precursor to meth, so the tenant’s meth business went up in flames, literally.
  10. The FEDs: One morning, Joe Ely received a call from his handyman, who lived across the street from one of his rental properties. The handyman said that Federal US Marshalls battering rammed his door open and pulled 9 suspects out of the house who were now laying spread eagle on the front lawn.
  11. Fire!: Greg Jeanfreau had a fire at one of his duplexes. The fireman showed up and put out the fire. However, due to the strength of the fire, the fireman’s attempts to fight the fire resulted in the collapsing of all the ceilings. Fortunately, his tenants were safe and insurance covered the damages.
  12. Fraudulent Rent: Krishan Singh had seemingly great tenants who paid their rent with a credit card online for the first two months. That is until the bank realized that the transactions were fraudulent and Krishan received a chargeback for the entire rental amount.
  13. Why You Don’t Rent to Friends: Adam Adam’s rented out one of his rental units to a friend without a written lease. A downturn in the economy and a drive by shooting later (which fortunately didn’t result in loss of life), Adam no longer considers this person a friend because they still owe him $7,500 in back rent.
  14. Why You Don’t Rent to Your Contractor Either: Matthew Mesick’s cousin was managing a fix-and-flip project. He hired a contractor and let them live in the house during the rehab process. The contractor ended up overdosing on heroin and his body wasn’t discovered for over a week. The costs to clean up and repair the damages caused by the body cost $26,000. On top of that, Matt’s cousin nor the investor had insurance, so the $26,000 was out-of-pocket.
  15. Don’t Hire SWAT to Remodel Your Home: After Jack Petrick completely renovated a single-family rental property, it was remodeled by a SWAT team…(click here for a video of the “remodeling” process)
  16. Why You Don’t Rent to Escorts: Muriel Brisson-Jackson received multiple phone calls from neighbors about a lot of traffic in and out his rental property at all times of the day and night – with all the traffic being different men. The tenant was gone within a day and Muriel was left with a chair riddled with hole marks from stiletto heels.
  17. Fire, Drugs, and Poo: Tamar Mar provided three horror stories. First, there was a fire at one of her properties that, 10 months later, is still being rebuilt. Then, she walked in on one of her tenants who was in the process of doing drugs. Lastly, she is turning a unit now that is covered in human feces. On the brightside, she has some great ideas on how to create the ultimate haunted house!
  18. Lover’s Quarrel: Ryan Gibson had two of his tenants get into a lover’s quarrel, which escalated to the point where the man stands outside of the trailer, fires a gun into the air, and says, “the next one’s for you!”
  19. Two Week Flood: One of Justin Fraser’s tenants left the water running in a clogged sink during a two-week vacation. The neighbor called him, saying that there is water coming into their basement from Justin’s basement. The result was $112,000 worth of damage and counting. Click here for a video Justin made when he saw the damage for the first time.
  20. Lord of the Flies: A tenant in one of Larry Abramowitz’s condo rentals had a dog with flies that invested the entire unit. The infestation was so bad that the first exterminator refused the job.

 

What about you? Comment below: What is your best tenant horror story?

 

Want to learn how to build an apartment syndication empire? Purchase the world’s first and only comprehensive book on the exact step-by-step process for completing your first apartment syndication: Best Ever Apartment Syndication Book.

 

 

Apartment Syndication School

Apartment Syndication School

Last Updated: 12/13/18

 

Welcome to the Syndication School!

We created the Syndication School to provide you with a FREE apartment syndication education so that you have the tools to launch your own apartment syndication empire.

Each week, we will release two podcast episodes that focus solely on apartment syndications. For the majority of episodes, we will offer you a FREE resource, which will be available for download below.

 

Related: What is Apartment Syndication?

 

 

Series #9 – How to Raise Capital From Passive Investors

In this syndication school series, we will discuss the process for raising capital from passive investors.

In part 1, we discuss how to overcome any fears you have in regard to raising money from passive investors

In part 2, we discuss the differences between the different types of money-raising structures

 

Part 1: How to Overcome the Fear of Using Other People’s Money

What you will learn:

  • What your current money-raising mindset is
  • How to overcome any fears or limiting beliefs you have about money-raising
  • Why someone will invest in your deals

 

Click here to listen to Part 1: How to Overcome the Fear of Using Other People’s Money

 

Part 2: Syndication Vs. JV & 506(b) Vs. 506(c)

What you will learn:

  • The differences between joint syndications and joint ventures (JV)
  • The differences between a 506(b) and 506(c) offering

 

Click here to listen to Part 2: The Process for Hiring a Property Management Company

 

 

Series #8 – How to Build Your All-Star Apartment Syndication Team

In this syndication school series, we will discuss the process for building your apartment syndication team.

In part 1, we discuss who your core and secondary team members will be, how to find prospective team members, and the process for hiring team members #1 and #2 – partner and mentor.

In part 2, we discuss the process for hiring team member #3 – property management company.

In part 3, we discuss the process for hiring team member #4 – real estate brokers.

In part 4, we discuss the process for hiring team members #5 – #7 – attorneys, CPA, and mortgage broker – as well as what order to hire the team members in.

 

Part 1: Do I Need a Partner and a Mentor?

What you will learn:

  • The seven team members you need to hire
  • How to find these seven team members
  • The process for selecting a business partner and a mentor

FREE RESOURCE:

 

Click here to listen to Part 1: Do I Need a Partner and a Mentor?

 

Part 2: The Process for Hiring a Property Management Company

What you will learn:

  • Primary and additional services offered by a property management company
  • How a property management company makes money
  • How to qualify a property management company
  • How to win over a property management company

FREE RESOURCE:

 

Click here to listen to Part 2: The Process for Hiring a Property Management Company

 

Part 3: The Process for Hiring Real Estate Brokers

What you will learn:

  • Primary and additional services offered by real estate brokers
  • How to find real estate brokers
  • How real estate brokers make money
  • How to qualify real estate brokers
  • How to win over real estate brokers

FREE RESOURCE:

 

Click here to listen to Part 3: The Process for Hiring Real Estate Brokers

 

Part 4: The Process for Hiring Attorneys, a Mortgage Broker, and an Accountant

What you will learn:

  • The process for hiring a real estate and securities attorney
  • The process for hiring a mortgage broker
  • The process for hiring an accountant
  • What are to hire the seven syndication team members in

FREE RESOURCE:

 

Click here to listen to Part 4: The Process for Hiring Attorneys, a Mortgage Broker, and an Accountant

 

Series #7 – The Power of Your Apartment Syndication Brand

In this syndication school series, we will discuss the process for creating your unique apartment syndication brand

In part 1, we discuss why you need a brand as an apartment syndicator, how to select a target audience, and how to create the first three components of your brand.

In part 2, we discuss the fourth component of your brand: the website.

In part 3, we discuss the fifth component of your brand: the company presentation

In part 4, we discuss the sixth and final component of your brand: thought leadership platform

 

Part 1: Why You Need an Apartment Syndication Brand

What you will learn:

  • The five primary benefits for creating a brand
  • The 2,000 true fans concept
  • How to select your primary target audience
  • How to create a company name, logo, and business card

FREE RESOURCE:

 

Click here to listen to Part 1: Why You Need an Apartment Syndication Brand

 

Part 2: How to Create a Spectacular Website

What you will learn:

  • Why the website is the most important aspect of your brand
  • How to create your first website
  • What information to include on your first website and your more advanced, future website
  • 8 ways to increase traffic to your website

FREE RESOURCE:

 

Click here to listen to Part 2: How to Create a Spectacular Website

 

Part 3: How to Design Your Company Presentation

What you will learn:

  • The primary benefits of creating and designing a company presentation
  • The 7 components of a company presentation

FREE RESOURCE:

 

Click here to listen to Part 2: How to Design Your Company Presentation

 

Part 4: Guide to Launching a Thought Leadership Platform

What you will learn:

  • The primary benefits of creating a thought leadership platform
  • How to select your first thought leadership platform
  • Five keys to a successful thought leadership platform
  • Five step process for developing your thought leadership platform
  • How to overcome your objections to starting a thought leadership platform

FREE RESOURCE:

 

Click here to listen to Part 4: Guide to Launching a Thought Leadership Platform

 

Series #6 – How to Perform an In-Depth Analysis of Your Target Apartment Syndication Market

In this syndication school series, we will discuss the process for performing a more in-depth analysis of a market after selecting 1 or 2 target investment markets (which was accomplished during Series #5).

In part 1, we re-introduce Joe’s Three Immutable Laws of Real Estate Investing and discuss an exercise that accomplished the goal of understanding a target market on a neighborhood-level.

In part 2, we discuss other strategies to implement to also accomplish this same outcome.

 

Part 1: The Immutable Laws of Real Estate Investing & 200-Property Analysis

What you will learn:

  • The Three Immutable Laws of Real Estate Investing
  • The 5-step process to understanding your target investment market – the 200-property analysis exercise

FREE RESOURCE:

 

Click here to listen to Part 1: The Immutable Laws of Real Estate Investing & 200-Property Analysis

 

Part 2: Bonus Market Analysis Strategies & How to Create Market Summary Reports

What you will learn:

  • 7 other strategies to implement in addition to the 200-property analysis to gain a neighborhood-level understanding of your target investment market
  • How to create the two most common forms of market summary reports

FREE RESOURCE:

 

Click here to listen to Part 2: Bonus Market Analysis Strategies & How to Create Market Summary Reports

 

Series #5 – How to Select a Target Apartment Syndication Investment Market

In this Syndication School series, we will discuss the process for selecting a target apartment syndication investment market.

In part 1, we introduce the concept of a target market and the overall process for selecting a target market.

In part 2, we cover the process for selecting 1 or 2 target markets.

 

Part 1: What is a Target Apartment Syndication Market?

What you will learn:

  • What is a target market?
  • What comes first – the deal or the market?
  • How important is selecting the right target market?
  • The overall process for selecting a target market?

 

Click here to listen to Part 1: What is a Target Apartment Syndication Market?

 

Part 2: How to Select 1 or 2 Target Apartment Syndication Investment Markets

What you will learn:

  • How to narrow down the US to 7 (or so) potential target markets to evaluate
  • The 6 market factors to analzye
  • Additional market factors to consider
  • How to rank your 7 (or so) potential target markets to select 1 or 2 target markets to investigate further

FREE RESOURCES

 

Click here to listen to Part 2: How to Select 1 or 2 Target Apartment Syndication Investment Markets

 

Series #4 – Tony Robbins’ Ultimate Syndication Success Formula

In this Syndication School series, we will discuss the first two steps in Tony Robbins’ Ultimate Success Formula and how to apply those steps to your apartment syndication business.

In part 1, we cover step one of Tony Robbins’ Ultimate Success Formula – Know Your Outcome.

In part 2, we cover step two of Tony Robbins’ Ultimate Success Formula – Know Your Why.

 

Part 1: Know Your Outcome

What you will learn:

  • Tony Robbins’ Five-Step Ultimately Syndication Success Formula
  • The Apartment Syndication Money Question: How do you make money as an apartment syndicator?
  • How to set your first 12-month apartment syndication goal

FREE RESOURCE: Annual Income Calculator

  • Click here to download your free resource, the Annual Income Calculator. The Annual Income Calculator is a spreadsheet that automatically calculates how much equity you need to raise from passive investors in order to achieve your 12-month apartment syndication goal.

 

Click here to listen to Part 1: Know Your Outcome

 

Part 2: Know Your Why

What you will learn:

  • Why you need to create a compelling vision for your future as an apartment syndicator
  • A six question exercise for how to create your syndication vision
  • Mindset strategy for how to approach not achieving your specific, quantifiable goal
  • How to follow through and persist with your goals

FREE RESOURCE: Tony Robbins Goal Setting Exercise

  • Click here to download your free resource, Tony Robbins Goal Setting Exercise. Watch the 35-minute goal setting video by Tony Robbins and complete four-step goal setting exercise for your apartment syndication business.

 

Click here to listen to Part 2: Know Your Why

 

Series #3 – How to Break Into The Apartment Syndication Industry

In this Syndication School series, we will discuss the 9 creative ways to break into the apartment syndication industry after meeting the experience and educational requirements.

In part 1, we cover strategies 1 to 4.

In part 2, we cover strategies 5 to 9.

 

Part 1: 4 Ways to Break Into The Apartment Syndication Industry

What you will learn:

  • The catch-22 of becoming an apartment syndicator
  • The first four ways to overcome the catch-22 and break into the apartment syndication industry

 

Click here to listen to Part 1: 4 Ways to Break Into The Apartment Syndication Industry

 

Part 2: 5 More Ways to Break Into The Apartment Syndication Industry

What you will learn:

  • 5 more ways to break into the apartment syndication industry
  • The three consistent themes between the 9 total ways to break into the apartment syndication industry
  • How to know which strategy is right for you

 

Click here to listen to Part 2: 5 More Ways to Break Into the Apartment Syndication Industry

 

Series #2 – Are You Ready To Become an Apartment Syndicator?

In the second Syndication School series, we will discuss the two main requirements before you are ready to start your apartment syndication business.

In part 1, we cover the first requirement – the experience.

In part 2, we cover the second requirement – the education.

 

Part 1: The Experience Requirements

What you will learn:

  • Why a successful background in real estate and/or business can translate to a successful syndication business
  • Questions to ask yourself to evaluate your business and real estate background
  • Rank your “experience” on a scale from 1 to 10
  • Based on your ranking, determine whether you can move onto the education phase or if you need to focus on building a track record in business and/or real estate first

 

Click here to listen to Part 1: The Experience Requirements

 

Part 2: The Education Requirements

What you will learn:

  • The obvious and not so obvious benefits of an apartment syndication education
  • The first step in your apartment syndication education process – memorizing the important terminoloy
  • Three other creative ways to obtain an apartment syndication education

FREE RESOURCE: Master the Lingo

  • Click here to download the FREE Master The Lingo presentation, which has a list of over 80 apartment syndication terms, including the definitions and real world examples, that you need to memorize and know how to immediately calculate before you are ready to become an apartment syndicator.

 

Click here to listen to Part 2: The Education Requirements

 

Series #1 – Why Apartment Syndications?

In this first series, we will discuss the benefits and drawbacks of the apartment syndication strategy so that you can determine if it is the ideal investment strategy for you.

In part 1, we will define what an apartment syndication is, as well as compare and contrast raising money vs. using your own money to buy apartments and being a passive investor or active sponsor in apartment syndications.

In part 2, we will compare and contrast apartment syndications to other  popular real estate strategies, including single family rents, smaller multifamily, REITs, and development.

 

Part 1: What is an Apartment Syndication?

What you will learn:

  • The definition of an apartment syndication
  • The high-level 10 step process for completing an apartment syndication from start to finish
  • Pros and cons of raising money vs. using your own money to buy apartments
  • The pros and cons of being a general partner (i.e. active syndicator) and a limited partner (i.e. passive investor) in an apartment syndication

 

Click here to listen to Part 1: What is an Apartment Syndication? 

 

Part 2: Apartment Syndication vs. Other Investment Strategies

What you will learn:

  • The pros and cons of apartment syndications vs. single-family rentals
  • The pros and cons of apartment syndications vs. smaller multifamily rental (2 to 50 units)
  • The pros and cons of apartment syndications vs. REITs
  • The pros and cons of apartment syndications vs. apartment development
  • Based on the pros and cons of apartment syndications vs. other investment strategies, determine if apartment syndication is your ideal investment strategy

 

Click here to listen to Part 2: Apartment Syndication vs. Other Investment Strategies

 

Want to learn how to build an apartment syndication empire? Purchase the world’s first and only comprehensive book on the exact step-by-step process for completing your first apartment syndication: Best Ever Apartment Syndication Book

best ever apartment syndication book

A Sneak Peek of the Best Ever Apartment Syndication Book in 4 Interviews

The Best Ever Apartment Syndication Book is officially available for purchase.

I wrote this book specifically for anyone who wants to become an apartment syndicator but doesn’t have the experience, access to capital, access to deal flow, and/or the ability to execute a business plan.

In the book, you will learn how I overcame the aforementioned challenges, as well as the exact step-by-step process I implemented in order to go from owning four single family homes and making $30,000 a year at a NYC advertising agency to building a portfolio of over $400,000,000 in apartment communities.

For a sneak peak of the content offered in the book, check out these four interviews where I discuss different parts of my journey and tactics that helped me get to where I am today!

 

“The Best Ever Advanced Multifamily Strategies For Raising Money At Scale” – Apartment Building Investing w/ Michael Blank Podcast

In my interview on the Apartment Building Investing w/ Michael Blank Podcast, I explain the additional reasons why I wrote the Best Ever Apartment Syndication Book, which will hopefully inspire you to write your own book!

 I offer advice to aspiring apartment syndicators for how the overcome the lack of experience challenge, which includes four ways to gain credibility with potential investors through alignment of interests and how to approach staying top-of-mind with investors

I also provide my insights on the benefits of partnerships in real estate, as oppose to attempting to build a business alone.

Listen to my interview with Michael Blank here.

 

“From W2 Job to Controlling $400,000,000 of Apartments” – The Cashflow Hustle Podcast w/ Justin Grimes

My interview on The Cashflow Hustle Podcast with Justin Grimes focuses on the mindset shift required to transition from a W2 job and/or smaller real estate investment strategies to purchasing large multifamily properties.

I explain how I made the leap to multifamily real estate. Of course, like all business endeavors, you will face many challenges as an apartment syndicator. So, I also offer advice on the tactics I use in order to overcome these challenges, which includes having a vision board, knowing where and who to turn to when looking for feedback and guidance, and asking “what would a billionaire do in this situation.”

Listen to my interview with Justin Grimes here.

 

“How Joe Fairless Analyzes Markets, Purchases Apartments, and Raising Millions” – Cash Flow Connections Podcast w/ Hunter Thompson

My interview on the Cash Flow Connections Podcast with Hunter Thompson focuses on three aspects of building an apartment syndication business.

First, you need to know where to invest. This is your target market. I outline my seven-step process for selecting and evaluating a target investment market.

Second, people need to know who you are if they are going to trust you with their money. I’ve found that the best way to accomplish this is through a thought leadership platform. I provide tactics for how to become a thought leader in a highly competitive sector of the investing world.

Third, you need to raise money in order to fund your deals. I explain the systems, technologies, and processes that can help you raise more money faster, which includes how my mentorship program has helped me raise millions of dollars.

Listen to my interview with Hunter Thompson here.

 

“From Zero to 3,000 Units In 5 Years” – Unbelievable Real Estate Stories Podcast w/ Ellie Yogev

My interview on the Unbelievable Real Estate Stories podcast with Ellie Yogev focuses on how to complete your first syndication deal when you have zero apartment investing experience.

I know that you can complete a deal without prior apartment experience because that’s what I did. I share the story of how I acquired my first deal, including my first experiences with real estate brokers, creative financing, and how I overcome the multitude of challenges as a first-time apartment investor.

Listen to my interview with Ellie Yogev here.

 

Want to learn how to build an apartment syndication empire? Purchase the world’s first and only comprehensive book on the exact step-by-step process for completing your first apartment syndication: Best Ever Apartment Syndication Book

 

 

podcast microphone

12 Go-To Podcasts of Successful and Active Real Estate Entrepreneurs

Each week, we post a new question to the Best Ever Show Community on Facebook. The Best Ever Show Community is a place where real estate entrepreneurs of all stripes and sizes can come together to interact with each other, me, and the guests featured on my podcast with the purpose of everyone helping each other reach the next level in their businesses and their lives.

 

What better way to add value than to ask you, the community, for your Best Ever advice on a variety of different real estate topics. This week, the question was what are your favorite real estate and/or personal development podcasts?

 

Many of the respondents chose my podcast, Best Real Estate Investing Advice Ever, as one of their favorites, which is an honor for which I am very grateful! However, even though I host a daily podcast, I still enjoy consuming the content produced by other entrepreneurs and am always on the lookout for the best real estate podcasts.

 

In fact, out of all the responses, only a single person provided the name of one podcast (although I assume they listen to numerous shows), while the overwhelming majority provided a list of their favorite podcasts about real estate and more. Therefore, since the Best Ever Show Community is made up of active entrepreneurs, whether you’re the owner of your own podcast or not, listening to multiple podcasts across a variety of content is correlated to real estate success.

 

The poll is closed, the responses are in, and here are your answers:

 

The Brian Buffini Show is Kyle Burnett’s favorite podcast. This is a personal development podcast exploring the mindset, motivation, and methodologies behind true success.

 

The Real Estate Guys Radio Show is, according to Maurico Rauld’s, one of the best real estate podcasts. This show delivers no-hype education and expert perspectives on real estate in a fast-paced, entertaining style.

 

Simple Passive Cashflow Podcast with Lane Kawaoka is one of Bo Kim’s and Ryan Gibson’s favorite podcasts about real estate. This podcast, hosted by active Best Ever Show Community member Lane Kawaoka, promotes passive investment strategies to give the listeners the freedom to quit their jobs and do what they truly want.

 

Happier with Gretchen Rubin is Neil Henderson’s favorite podcast. This podcast is hosted by a #1 best-selling author who, as the title implies, provides good habits that encourage a life of maximum happiness.

 

The Tim Ferriss Show is probably a top podcast for everyone, including Lennon Lee and Ryan Groene. This show deconstructs world-class performers from eclectic areas and digs deep to find the tools, tactics, and tricks that listeners can apply to their daily lives.

 

Investing in Real Estate with Clayton Morris is Glen Sutherland’s favorite podcast. This is another in a series of best real estate podcasts that offer passive investment strategies to help listeners quit their 9 to 5 jobs.

 

Real Wealth Show with Kathy Fettke is a favorite of Carolyn Lorence, Ryan Gibson, and Bill Tomesch. This show also interviews guests who share advice on how anyone can build enough passive income from cash flowing real estate to quit their day job.

 

Apartment Investing with Michael Blank is one of Harrison Liu, Julia Bykhovskaia, and Carolyn Lorence’s favorites. A bit more focused than other podcasts about real estate, is specifically about commercial real estate investing.

 

Landlording for Life is Sean Morissey’s favorite podcast. A relatively newer podcast, it offers advice direct towards, as the name implies, landlords.

 

Real Estate Investing For Cashflow with Kevin Bupp is another on Ryan Groene’s list of best real estate podcasts. This show is for passive and active investors who are interested in learning the industry secrets of commercial real estate investing.

 

Old Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles is one of the favorites of Julia Bykhovskaia, Carolyn Lorence, and Ryan Gibson. This show is targeted at new and seasoned multifamily investors who are interested in or are actively acquiring and operating apartment complexes.

 

So Money with Farnoosh Torabi is Paresa Stewart’s favorite podcast. This podcast, hosted by an award-winning financial strategist, brings money strategies and stories straight from today’s top business minds.

 

My recommendation is to pick at least one podcast from this list and subscribe (of course, starting with my podcast :). Because, as I said, it is a trend amongst the most successful real estate entrepreneurs to listen to multiple podcasts to stay up-to-speed and competitive in the ever-changing economic landscape.

 

In the comment section, post your favorite real estate or personal development podcast, either from this list or something new.

 

Subscribe to my weekly newsletter for even more Best Ever advice www.BestEverNewsletter.com

Complex clock and gears

If You Had a Time Machine, What Would Be Your First Investment?

Each week, we post a new question to the Best Ever Show Community on Facebook. The Best Ever Show Community is a place where real estate entrepreneurs of all stripes and sizes can come together to interact with each other, me, and the guests featured on my podcast with the purpose of everyone helping each other reach the next level in their businesses and their lives.

 

What better way to add value than to ask you, the community, for your Best Ever advice on a variety of different real estate topics. This week, the question was if you  were starting real estate investing over again, what would be your first purchase?

 

The poll is closed, the responses are in and here are your answers:

 

 

Brandon Moryl

 

Brandon would acquire as many turnkey single-family residences as he could. In his market, Cincinnati, he can purchase a $100,000 turnkey SFR with $15,000 in out-of-pocket costs that rents for $1,250 per month.  Great cash-on-cash return, longer tenants compared to multifamily, and easy to sell.

 

 

Harrison Liu

 

16 years ago, Harrison acquired his first investment – two triplexes situated right next to each other in a class C market. Today, the area is going through gentrification, so the rents have doubled and the property values have tripled. However, being in a C market, Harrison has had a few tenant issues over the years, including two evictions and being taken to small claims court.

 

Therefore, if he was starting over, he would have purchased a fourplex in a B location. Instead of two loans, he would have one. Also, he would have had access to higher quality renters, which means he likely wouldn’t have been taken to small claims court.

 

 

Ryan Murdock & Glen Sutherland

 

If they were starting over, Ryan and Glen would have purchased a three or four-unit property with an owner-occupied loan, living in one unit and renting out the others. Also known as housing hacking, they would have been able to acquire a rental property with little money out-of-pocket (generally 3.5% of the purchase price) and lived “rent free.”

 

 

Devin Elder & Whitney Sewell

 

Both Devin and Whitney said, if they were starting over, they would find a mentor.

 

 

Neil Henderson

 

Neil Henderson would have skipped over the single-family residence and smaller multifamily investments and went straight for a 100-unit apartment community.

 

 

Charlie Kao

 

When Charlie was starting out, he considered purchasing a condo from a bankrupt builder. Originally, the builder was offering the condos for $356,00 to $410,000. However, the people who agreed to purchase the condos couldn’t qualify for financing. So, the builder greatly reduced the sales prices.

 

Charlie was considering a 2-bedroom condo listed at $160,000. If he could go back, he would have purchased that condo, because today the current value exceeds $650,000.

 

 

Robert Lawry II

 

Robert kept it simple and humorous. If he was starting over, his first investment would have been business cards.

 

Make sure you join the Best Ever Community on Facebook. Check the group page every Wednesday and answer the weekly questions for an opportunity to be featured in next week’s blog post!

 

In the comment section, post what your first purchase would be if you were starting over again.

 

Subscribe to my weekly newsletter for even more Best Ever advice www.BestEverNewsletter.com

 

 

 

library architecture

What’s Your Favorite Real Estate or Personal Development Book?

 Each week, we post a new question to the Best Ever Show Community on Facebook. The Best Ever Show Community is a place where real estate entrepreneurs of all stripes and sizes can come together to interact with each other, me, and the guests featured on my podcast with the purpose of everyone helping each other reach the next level in their businesses and their lives.

 

What better way to add value than to ask you, the community, for your Best Ever advice on a variety of different real estate topics. This week, the question was what’s your favorite real estate or personal development book?

 

The poll is closed, the responses are in and here are your answers:

 

Garrett White:  The Compound Effect by Darren Hardy

 

 

Ryan Gronene: Think and Grow Rich by Napoleon Hill

 

 

Lennon Lee of BLD Capital Group, Carlos Altamirano of CFA Investment, Mauricio Rauld and Harrison Liu: The One Thing by Gary Keller

 

 

Whitney Sewell: Never Eat Along by Keith Ferrazzi

 

 

Ryan Gibson of Spartan Investment Group: Tax-Free Wealth by Tom Wheelwright

 

 

Chibuzor Nnaji Jr.: The Go-Giver by Bob Burg

 

 

Danny Randazzo of Randazzo Capital: Mistakes Millionaires Make by Harry Clark

 

 

Dave Van Horn of PPR Note Co.: Leading an Inspired Life by Jim Rohn

 

 

Charlie Kao of MCK Property Management: Maximum Achievement by Brian Tracy

 

 

Justin Kling: Investing in Duplexes, Triplexes and Quads by Larry B. Loftis


Make sure you join the Best Ever Community on Facebook. Check the group page every Wednesday and answer the weekly questions for an opportunity to be featured in next week’s blog post!

 

In the comment section, post your favorite real estate or personal development book.

 

Subscribe to my weekly newsletter for even more Best Ever advice: http://eepurl.com/01dAD

 

mentor

How to Approach Hiring a Real Estate Investing Mentor

Ask a successful investor for their opinion on hiring a mentor and you’re not likely going to receive the same answer twice. One investor will swear by mentors, saying it’s impossible to reach the highest levels of success without one. Another investor will say that mentors are unnecessary and a complete waste of money. And yet another investor will have an opinion of mentors that is somewhere in-between these two extremes.

 

My personal philosophy is more similar to the former than the latter. However, I can find truth in the arguments from both sides, because like most things in real estate, it depends. It depends on what your expectations are of a mentor. It also depends on why you want to hire a mentor in the first place.

 

In this post, I outline what to and not to expect from a mentor, as well as when it is the right time to hire one. You will also learn how to find a mentor, which you should pursue only if you’re expectations and current situation align with the reality of what a mentor actually does.

What should I expect?

 

There are four main things you should expect to get out of a relationship with a mentor.

 

Number one is expertise on how to do what you’re wanting to do. The mentor should not only have experience in the same field you’re pursuing, but they should be active as well. If you are a wholesaler, for example, a good mentor is someone who has a successful track record as a wholesaler and is still completing deals to this day. A poor mentor is someone who has never wholesaled a deal or someone who has stopped wholesaling, even if they have a long list of clients who are actively and successfully wholesaling deals.

 

Secondly, you should expect a mentor to provide you with a do-it-yourself system for how to replicate their success.

 

Thirdly, and – in my opinion – most importantly, a mentor should be an ally that you can call upon to only talk to about yourself and work out any problem you’re facing, real estate or personal. Since you are paying this person, you don’t have to feel guilty about being selfish or asking questions about the other person. You don’t even need to be interesting. You can and should talk about whatever it is you need at the moment.

 

The fourth thing you should expect are connections. Since the mentor should be active, they will have relationships with all the movers and shakers in your investment niche. Therefore, they should connect you will team members relevant to growing your business.

What shouldn’t I expect?

 

There are two main things you should NOT expect when hiring a mentor.

 

A mentor will not be your savior or your knight in shining armor. Do not expect to hire a mentor and poof, have all of your problems solved. Yes, they should offer expertise, be an ally, and provide connections, but you will still be required to take action. Moreover, the best mentors, rather than being your knight and shining armor, should give you the tools and knowledge so that you become your own savior!

 

Also, do not expect a “done for you” program. Actually, if you find a mentor who indeed does offer such a program, run! If a mentor promises you anything that doesn’t require any work on your part, run! The problem with “done for you” programs, assuming it truly is and is not just a scam, is that you’re not learning anything. You are not building the foundation of knowledge required to sustain a business. Even if you are able to attain a high level of success using one of these programs, it is unstable. And once you lose that program, you lose your progress as well.

 

When do I hire a mentor?

You are ready to hire a mentor when you have defined a specific outcome you want to achieve by hiring a mentor. Do you want immediate access to expert advice about your investment niche? Do you want a system for reaching financial freedom? Do you need an unbiased person to selfishly speak with? Do you need to find connections people in the industry? These are all defined outcomes that can be solved by hiring a mentor.

 

Do you want a mentor because you were told you were supposed to? Do you want a knight and shining armor who will do all the work for you? Do you want a “done for you” program so that you can sit back, relax, and enjoy the returns? These are wrong reasons to hire a mentor.

 

How do I find a mentor?

 

There is really only one effective way to find a mentor – word of mouth referrals. That is the only way that I have found to verify the legitimacy of a certain mentor.

 

If you don’t know someone with a mentor, or if you don’t know where to go to get a referral, then you’re probably not ready to hire a mentor. You’ll need to get out in the field and start meeting investors.

 

Conclusion

 

There are many differing opinions on the benefits of a hiring a mentor. I believe that a mentor can be extremely useful as long as you have the correct expectations and have defined a specific outcome.

 

Assuming your expectations and outcomes are in line with the reality of what a mentor can offer, the most effective way to find one is through word of mouth referrals.

 

Did you like this blog post? If so, please feel free to share it using the social media buttons on this page.

 

Also, subscribe to my weekly newsletter for even more Best Ever advice: http://eepurl.com/01dAD

                       

If you have any comments or questions, leave a comment below.

 

 

investment cash

How a Wannabe or Experienced Investor Can Obtain a FREE or PAID Real Estate Education

One of my most popular blog posts was based on an interview I had with Master Tony Robbins’ coach Trevor McGregor, where he outlined the 5 reasons why you aren’t scaling your business (read the full article here).

 

One of the five main reasons investors fail to scale their business is due to lack of accountability. You don’t have somebody holding your feel to the fire to make you follow through with what you say you are going to do. Or when the going gets tough, you don’t have an experienced person to turn to. Instead, you follow the path of least resistance and cheat yourself out of what could have been.

 

While Trevor’s advice was specifically in reference to investors who already have a few deals under their belts, it can apply to the wannabe investor who is having difficultly buying that first deal, sending that first direct mailer, or attending that first meet-up group.

 

How can we find that accountability we need to overcome that initial barrier to entry? Trevor believes finding an accountability partner is the solution. However, like many things in life, there are always multiple solutions to a problem.

 

Another solution, along the same lines as an accountability partner, is to find an experience investor to take you under their wing. In a conversation with a wholesaler Josiah Rosebury in early 2017, he explained how he was able to enter the investing arena through apprenticeship. First, Josiah offered to be the boots on the ground for an experienced rehabber for free. Instead of paying hundreds – if not thousands – of dollars for a mentor, he exchanged his time and effort for knowledge, which allowed him to scale his business to the point where he was wholesaling two deals a month for an entire year.

 

Once Josiah scaled his business to two wholesale deals a month, he wanted to pursue fix-and-flipping as a second revenue stream. Again, instead of paying a mentor, he partnered with another experience rehabber, helping to finance their deals. With this approach, not only did he get paid, but he received first-hand knowledge of fix-and-flipping, which he was able to then apply to his own business.

 

Related: Two Ways to Gain Direct Knowledge From Experienced Investors for FREE

 

Education is a must if you want to be a successful real estate investor. And there is many “free” ways to learn how to become a real estate investor without having to hire a mentor or stumble your way through your own failures.

 

David Phelps, a nationally recognized speaker and full-time passive investor, echoed this educational and accountability/apprenticeship advice in our recent conversation.

 

What was David’s best ever advice? “Before anybody starts investing, I would tell you today to start by being an apprentice,” he said. “It means find somebody in your marketplace, in the space… Just find the best person who you know well enough that has a great platform and is doing something that interests you and you believe they have a lifestyle also that reflects what you’re really looking for in the long-term.”

 

Once you find that person (here is an article for how to do so), David said, “tell that person, ‘Hey, I’ll come work for you for free for a period of time.’” In fact, that person may actually pay you, so, like Josiah’s situation, you may have the dual benefit of education and money coming in.

 

Like Trevor and Josiah, David stressed the importance, and in fact, the requirement of investing in your education if you want to efficiently scale your business. “Mentorship, apprenticeship to me that is the fastest track, inclusive of just reading a lot, being around the people, going to conferences, seminars, listening to podcasts,” he said. “All those are great, but I think actually being able to tag along with somebody who has already created the path and can show you so many things so quickly about life in general, business principles, finance principles, specifically about real estate – you can learn so much faster and kind of skip your own training wheel, which for most of us are wobbly at first. We fall off and scrape our knees and there’s nothing wrong with that, but if there’s a faster track where I don’t have to have patches in my knees and elbows as often and as long, then I’ll take that path every time.”

 

Did you like this blog post? If so, please feel free to share it using the social media buttons on this page.

 

I’d also be VERY grateful if you could rate, review, and subscribe to the Best Ever Show on iTunes by clicking this link: http://bit.ly/2m2XyM1

 

That all helps a lot in ranking the show and would be greatly appreciated. And if you have any comments or questions, leave a comment below.

 

 

 

 

Library books

The Top 14 Best Ever Apartment Investing Books

Many people ask me how I was able to go from making $30,000 a year in a corporate 9 to 5 job to controlling over $400,000,000 in real estate. In a three-part interview series, I outlined my journey in full detail (click here for part 1, part 2, and part 3).

In this interview series, I stressed the importance of education. Before I began my multifamily investment journey, I read all the best investing books on apartment investing I could get my hands on.

So, if you’re trying to figure out where to get investment advice you can take action on, here is a list of 13 books I read (or wrote) that I recommend you read. These will help you understand the ins and outs of apartment investing before or during the process of starting your multifamily real estate investment career.

 

 

Best Ever Apartment Syndication Book by Joe FairlessBest Ever Apartment Syndication Book by Joe Fairless and Theo Hicks

If you want to raise money to purchase an apartment community, this is the ONLY book that provides a step-by-step system for how to complete your first apartment syndication deal and how to build a multimillion or multibillion dollar apartment investing empire. You will learn the exact process that Joe followed to go from making $30,000 each year at a New York City advertising firm to controlling over $400,000,000 in apartment communities.

 

 

 

 

 

Commercial Real Estate Investing By RoosCommercial Real Estate Investing by Dolf De Roos

Roos reveals all the differences between residential and commercial investing and shows you how to make a bundle. He also explores the different sectors—retail, office space, industrial, hospitality, or specialist—to help you discover which is right for you. Finally, Roos shares key insights on finding tenants and avoiding vacancies, financing large investments, managing property, setting a tax-smart corporate structure, and taking full advantage of tax breaks.

 

 

 

 

The Complete Guide to Buying and Selling Apartment Buildings by BergesThe Complete Guide to Buying and Selling Apartment Buildings by Steve Berges

This is another one of the best investing books if you’re interested in apartment real estate, as it helps you map out your future, find apartment buildings at a fair price, finance purchases, and manage your properties. Berges includes tax planning advice, case studies of real acquisitions, and appendixes that add detail to the big picture. Plus, it includes a handy glossary of all the terms investors need to know, helpful sample forms that make paperwork quick and easy, and updated real estate forecasts. With this comprehensive guide at hand, you’ll find profits easy to come by.

 

 

 

How to Take an Apartment Building from Money Pit to Money Maker by HaskellHow to Take an Apartment Building from Money Pit to Money Maker by Craig Haskell

If you’re a struggling apartment owner or manager wondering where to get investment advice, Haskell offers ultimate answers in one of his best investing books by introducing a new step-by-step, 5-stage apartment recovery system that helps owners and managers take their apartment buildings from money pit to money maker. This book really gives apartment owners and managers the tools they need to build a thriving, top-producing rental property.

 

 

 

 

 

Multi-Family Millions by LindahlMulti-Family Millions by David Lindahl

Here, real estate mogul David Lindahl provides expert advice for investors who want to make the transition from single-family homes to more profitable multi-family units. He shows you how to find troubled properties that are ripe for quick profits, how to fix or flip those properties, and how to re-sell at maximum value. With a proven step-by-step system for managing each stage of the process, this book shows you how to get started in money-making, multi-family units, even while you work your day job.

 

 

 

 

The ABCs of Real Estate Investing by McElroyThe ABCs of Real Estate Investing by Ken McElroy

Some of the best investing books include basic, foundational information. In this back-to-basics book, you can learn how to achieve wealth and cash flow through real estate, find property with real potential, unlock the myths that are holding you back, negotiate the deal based on the numbers, evaluate property and purchase price, and increase your income through proven property management tools.
 

 

 

Investing in Apartment Buildings by Martinez

Investing in Apartment Buildings by Matthew Martinez

Are you newer to apartment real estate and trying to learn where to get investment advice? With this book, you can create a reliable stream of income and build long-term wealth. Throughout, Martinez provides step-by-step advice that gives newcomers to real estate investing the practical advice needed to learn the business from the ground up.

 

 

 

 

 

Crushing It in Apartments and Commercial Real Estate by MurrayCrushing It in Apartments and Commercial Real Estate by Brian H. Murray

Murray shares the secrets to his success through straightforward, actionable advice that will help you get started no matter what your experience level, or how much cash you have on hand, which is why I consider it one of the best investing books to learn from. You’ll learn how to find and creatively finance commercial property, grow a portfolio without any help from outside investors and without taking on excessive debt, use your small-investor status as a competitive advantage over corporate investors and identify simple, practical ways to increase profits while keeping costs low.
 

 

Trump: The Best Real Estate Advice I Ever Received by TrumpTrump: The Best Real Estate Advice I Ever Received by Donald Trump

Donald Trump has gathered in one book the best advice on real estate from the 100 brightest and most experienced people in real estate.
 

 

 

The 7 Secrets to Successful Apartment Leasing by CumleyThe 7 Secrets to Successful Apartment Leasing by Eric Cumley

Cumley provides seven proven industry secrets to building the relationships that achieve and maintain high-occupancy levels. From stop qualifying prospects and start interviewing them to follow-up is the extra mile, Cumley provides examples, tips, to-do lists, sample scripts, and more that will help you with filling vacancies and to do so quickly and effectively.

 

 

 

 

 

 

The Definitive Guide to Apartment Marketing by Grillo

The Definitive Guide to Apartment Marketing by Josh Grillo

In this book, Grillo shares insights into new tools, tactics, and terminology that are increasing leads, leases, occupancy, and rents for multifamily companies. This has been called a must-have book for marketing directors, owners, developers, and property management companies that want to get the most out of their marketing.

 

 

 

 

 

2 Years to a Million in Real Estate by Martinez2 Years to a Million in Real Estate by Matthew Martinez

This book contains everything you need to know about securing your financial independence through rental properties, including: how to invest small amounts early-on while working a full-time job, avoid real estate “bubble” risks, get others to pay your mortgage for you, pick a hot property (and spot others that will become hot), simplify the ins-and-outs of financing, negotiate like a pro, screen for reliable tenants, understand how local tenant laws work, hire good people to manage your properties, and know when to sell. It’s probably easy to see why this is in a list of best investing books.

 

 

 

 

Tax-Free Wealth by WheelwrightTax-Free Wealth by Tom Wheelwright

Tax-Free Wealth is about tax planning concepts. It’s about how to use your country’s tax laws to your benefit. In this book, Tom Wheelwright will tell you how the tax laws work, as well as how they are designed to reduce your taxes, not to increase your taxes. Once you understand the basic principles of tax reduction, you can immediately begin reducing your taxes. Eventually, you may even be able to legally eliminate your income taxes and drastically reduce your other taxes. Once you do that, you can live a life of Tax-Free Wealth.

 

 

 

 

Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money by Matt Faircloth

This book outlines a road map for investors looking to inject more private capital into their business, the most effective strategy for growth. You will learn how to develop long-term wealth from the valuable lessons and experiences offered by the author.

 

 

 

 

Want a more exhaustive recommendation list of the best investing books I’m aware of, including books on general entrepreneurship, mindset, and sales and negotiation? Subscribe to my weekly newsletter here, and I will send you the entire list of where to get investment advice and more.

real estate and law books

Guide to Systematizing Your Real Estate Education

Reed Goossens, who is the founder and managing partner of a real estate company that’s currently involved with over 600-units valued at over $50 million, is one of many speakers who will be presenting at the 1st annual Best Real Estate Investing Advice Ever Conference in Denver, CO February 24th to 25th.

In a conversation with Reed all the way back in 2014, he provided his Best Ever advice, which is a sneak preview of the information he will be presenting at the Best Ever Conference.

What was Reed’s advice? He explained the importance of and his approach to systemizing the education process.

Why Systematize My Education?

 

Obviously, since you are reading this blog post, you take your real estate education seriously. However, how do you filter out all of the noise – what I like to call the “fluff” – and get the most actionable insights? Don’t fall victim to SOS (the shiny object syndrome). By that I mean there are lots of shiny objects in the real estate realm that can make you lose your focus. There are so many opportunities out there that it’s important you don’t flail about. Rather focus on one area and get to know it well before moving on to your next adventure in real estate investing. Just like you need an investment strategy… you should have an education strategy, too.

Many new investors start by reading and listening to any real estate advice they can get their hands, eyes, and ears on. However, that shotgun education approach is only beneficial when first starting out. Once you feel as if you’re hitting the same material over and over, Reed recommends that you transition from a shotgun approach to that of a focused sniper. In other words, focus on a specific area of interest that is based on the real estate strategy you have decided to follow.

Once you’ve narrowed the strategy down, the next step is to seek out different experts in your specific area of interest… people who are really using the real estate strategy you have chosen to use. Find a handful of real estate professionals as your go-to information sources and immerse yourself in their educational offerings and materials. Pull knowledge from their experiences and use them as a compass to guide you in the right direction for where you want to go. It’s a great way to stay out of the brambles in your first deals, too. (In other words, learn from other people’s mistakes and use their formulas for success.)

 

Create your own custom educational strategy

 

Step #1 – Start out broad (shotgun approach), immersing yourself in a wide-range of educational sources. Reed’s go-to education sources are books, podcasts, and consultants

Step #2 – Based on your broad approach in Step #1, select the aspect of real estate the you find most interesting.

Step #3 – Select a few go-to sources (podcast, author, another investor, etc.).

Step #4 – Create a defined strategy for when you will set aside time to focus on your education. For example, Reed will have a podcast playing in the background while he sits at his desk working and in the evenings while attending to other tasks.

You can become a millionaire by investing in any type of real estate. This becomes obvious when you realize that other people have done so already… across all niches. Learning about all aspects of real estate and then drilling deep into the niche that you are interested in will shorten your learning curve.

To accelerate your growth as a real estate investor and entrepreneur, surround yourself with those individuals who have become millionaires in your chosen niche. If you surround yourself with millionaires, you will naturally be brought up to their level and join them in the millionaire club yourself.

 

Want to learn more about real estate investment education, as well as information on a wide range of other real estate niches? Attend the 1st Annual Best Ever Conference February 24-25 in Denver, CO. It’s the only real estate investing conference whose content and speakers are curated based on the expressed needs of the audience. Visit www.besteverconference.com to learn more!

 

Related: Best Ever Speak Brie Schmidt Sneak Peek How to Avoid the Shiny Object Syndrome in Real Estate Investor

Related: Best Ever Speaker Kevin Bupp Sneak Peek Lessons Learned From Losing Everything During the Financial Crash

Related: Best Ever Speaker Theresa Bradley-Banta Sneak Peek Don’t Invest in Real Estate on Unfounded Optimism and Emotions

Related: Best Ever Speaker Linda Libertore Best Ever Success Habit of the Nation’s #1 Landlord Aid

Related: Best Ever Speaker Kevin Amolsch Why Moving at a STEADY Pace is the Secret to Real Estate Success

Related: Best Ever Speaker Bob Scott and Jimmy Vreeland How to Acquire over 100 Properties in 24 Months Utilizing the Lease-Option Strategy

Related: Best Ever Speaker Jeremy Roll 3 Essential Factors of Diversification in Passive Real Estate Investing

Related: Best Ever Speaker David Thompson 3 Ways to Raise Over $1M for Your 1st Real Estate Syndication Deal

Related: Best Ever Speaker Al Williamson 4 Ways Showing Leadership Increases Your Property’s Value and Rents

Related: Best Ever Speaker Mark Ferguson The Most Commonly Overlooked Expenses in Real Estate Investing

Related: Best Ever Speaker Marco Santeralli 10 Rules of Successful Real Estate Investing

Related: Best Ever Speaker Steve Bighaus What’s the Cheapest Loan Program in America

Related: Best Ever Speaker Mark Mascia How a Billion Dollar Real Estate Developer Qualifies a Deal

financial growth via investments

10 Laws of Successful Real Estate Investing

Last Updated on 6/15/2018

 

I am personally a follower of The Three Immutable Laws of Real Estate Investing, which are the three things all investors must do when purchasing real estate in order to thrive in any market at any time in the market cycle. And I think a great companion list of laws are the ones laid out by turnkey rental property investor Marco Santeralli.

 

In my conversation with Marco on my podcast, he outlined the 10 laws that he discovered based on personal experience and are common amongst all successful real estate investors. Apply these ten rules in tandem with the Three Immutable Laws to set yourself up for success and to create and scale a sustainable real estate business model.

 

1. Educate Yourself

 

Knowledge is the new currency. Without knowledge, you are going to make a ton of mistakes and fail. If you are already a good investor, gaining knowledge will make you a great investor. If you don’t educate yourself, you are going to be doomed to blindly follow other people’s advice. As Tony Robbins says, “Knowledge is potential power.” We must take action to make it powerful.

 

2. Set Quantifiable Investment Goals

 

You’ve probably heard this advice time and time again. But statistically, you are more likely to achieve financial independence if you write down specific goals, read them often, and try to follow them as best as you can. Marco prefers to quantifiably set his goals and to set goal dates so each can be achieved by a specific date. His main real estate goal, for example, is to control $100,000,000 in real estate before his 50th birthday. That’s a specific and measurable goal. Therefore, it is easy to determine whether or not he reaches it.

 

3. Never Speculate

 

According to Marco, there are a number of investors who still haven’t learned the hard lessons they should have from the crash of 2007-08. Here’s a reminder: It is very dangerous to speculate and chase after appreciation, which is also described in the first Immutable Law of Real Estate Investing. It may be the fastest way to build wealth on paper, but you need to have a longer-term perspective rather than settling for the short-term, riskier forms of growth. To be clear, it is okay to have a strategy to force appreciation via value-add methods like performing renovations, lowering expenses, etc. However, it is not okay to buy a property, sit back, and cross your fingers as you hope it increases in value. That’s just silly. It’s like putting a seed in the dirt and not watering it, just hoping it will grow. It won’t. As with plants, growing your real estate portfolio into a cash flow producing exercise takes a bit of nurturing. You’re going to be involved. Passive does not mean completely disengaged. You don’t get to be a chairside investor.

 

4. Invest for Cash Flow

 

Cash flow is king, and it is the glue that keeps the investment together. Cash flow covers all operating expenses and debt, which in the simplest of terms means that your tenants are buying properties for you over time. Having a positive cash flow allows you to acquire more properties faster, get greater returns from your investments, and ultimately build your net worth over time. Talk about a no-brainer! But maybe you’re asking, “But wait… if I buy a distressed property that won’t cash flow immediately but presents a good opportunity, that’s okay, right?”

It definitely is. But you need a solid, conservative plan to stabilize the property and make it cash flow positive. Marco says he’s spoken to many investors who buy a property at a breakeven point and are okay with that. Rather, they are okay with it until the rental market softens. Then, when they have to start paying the mortgage out of pocket, things get dicey quickly. Don’t put yourself in that situation. Have a plan. Stick to it.

 

5. Be Market-Agnostic

 

Do not go after a market because it’s sexy. Don’t be married to a specific market either. Many investors I’ve met think they have to invest in their own backyards or to invest in properties that are within a one or two hour’s drive from their home. Marco says that’s a mistake and doesn’t make much sense. In reality, you want to put your money where it is going to work the hardest for you, which may mean markets that aren’t close to home.

The United States is a very large country made up of hundreds of local real estate markets. Each market moves up and down independently of one another due to a variety of local factors. As such, you should recognize that there are times when it makes sense to invest in a particular market and times when it does not. Only invest in markets when it makes sense to do so, not because you live there or because you bought property there before.

 

6. Take a Top-Down Approach

 

Always start by selecting the best markets that align with your investment goals. Many investors make the mistake of falling in love with a property because it is pretty, has nice curb appeal, and/or has been nicely renovated. The numbers look attractive on paper, but that doesn’t mean it’s a good investment. These investors don’t stop to consider what is going on in the market, which is a common trap that many international investors fall into. They are sold properties in depressed markets because they don’t know any better. It would be far better for them to do research on the different markets before making their investment decisions. Using a top-down approach means looking at the state, the city, the neighborhood, the local economy, and then the job market, demographics of the population, the growth rate in the area, and the unemployment rate. These are all factors of any good real estate investment decision.

 

7. Diversify Your Portfolio

 

Once you have steps 1 through 6 down, and you have a decent portfolio, diversify across multiple markets. You should have three to five income-producing properties per market. However, this is subjective to the investor – it can be 10, 5, 3… whatever you want – but three to five properties is a great starting point.

After you have three to five properties in a particular market, move to another geographically different market with its own local economy. Ideally, select a market that is in a different state. Build your portfolio to three to five properties in that location and then move to the next market. This is easy to do when you have the right team or are working with a reputable turnkey property provider.

Diversifying within the real estate asset class will help reduce your overall risk. Real estate is one of the few investment vehicles that allows you to control your downside and risk, so be sure to take full advantage of all that real estate investing has to offer by diversifying your portfolio across different markets.

 

8. Use Professional Property Management

 

Unless you are a property manager yourself, you shouldn’t manage any of your own properties. If you do, you’ll likely find that it is a thankless job and requires a great deal of expertise and even more of your time. At the end of the day, your time is one of your most valuable assets. You should be spending it with your family, on your career, and looking for more properties rather than managing properties. If you’re new to real estate investing, go ahead and manage the first couple of properties. You’ll see what Marco means fairly quickly.

 

9. Maintain Control

 

Many people don’t think about maintaining control, but Marco recommends that you be a direct investor. Control your real estate, own it, and be the boss that calls the shots. You really cannot do that with any other asset class. So why not take full advantage of that if you have the time, desire, and expertise to do so? Marco says he has many passive real estate investment partners who don’t have the time, desire, and/or expertise to source and buy real estate like he does. In that case, it makes sense for them to be passive investors. But if you have the time, desire, and expertise to be active, then you can certainly make more money by maintaining direct control of your properties.

 

10. Leverage Your Investment Capital

 

Marco understands that the beautiful thing about real estate investing is that you can use or borrow other people’s money to purchase and control income producing properties. Sounding like a broken record, you cannot really do that with any other asset class. Banks are willing to lend up to 80% of the purchase price, which only magnifies your overall rate of return, which in turn accelerates your wealth creation.

 

Conclusion

 

Marco’s Best Ever advice were the 10 rules of successful real estate investing:

  1. Educate Yourself
  2. Set Quantifiable Investment Goals
  3. Never Speculate
  4. Invest for Cash Flow
  5. Be Market-Agnostic
  6. Take a Top-Down Approach
  7. Diversify Your Portfolio
  8. Use Professional Property Management
  9. Maintain Control
  10. Leverage Your Investment Capital

 

Subscribe to my weekly newsletter for even more Best Ever advice www.BestEverNewsletter.com

 

Lessons Learned From Losing Everything During the Financial Crash

“What would you attempt to do if you know you could not fail?” – Robert Schuller

 

Kevin Bupp, a Florida-based real estate investor, top iTunes podcast host and serial entrepreneur with over $40 million in real estate transactions, is one of many speakers who will be presenting at the 1st annual Best Real Estate Investing Advice Ever Conference in Denver, CO February 24th to 25th.

 

 

I interviewed Kevin on my podcast a few years ago and he provided his Best Ever advice, which is a sneak peak of the information he will be presenting at the conference. This advice includes:

 

  • How to use partnerships to quickly scale your business
  • Lessons learned from losing everything during the financial crash

 

Originally published in the Best Real Estate Investing Advice Ever: Volume I

 

Kevin Bupp’s Real Estate Background

 

When Kevin was 19 years old, he was introduced to real estate investing by a local investor, David, who he met through a mutual acquaintance. David told him what he was doing in real estate, how he spent his spare time, and provided an overall sense of the lifestyle he lived as a full-time investor. Kevin was very intrigued.

 

As a result of Kevin’s interest in investing, David invited him to attend a 3-day real estate seminar in Philadelphia. David had already purchased two tickets, but his business partner couldn’t attend, so the timing could not have been more perfect! At the seminar, Kevin was able to network with new and experienced investors and also learned how to invest in single-family residences as a wholesaler and fix-and-flipper. After leaving the seminar, Kevin was pumped up and excited about the prospect of taking the knowledge he had gained, and using it to get out in the real estate market to make some money.

 

Learning Through Mentorship

 

The first item on Kevin’s agenda post-seminar was to focus on how to do his first deal, so he reached out to David for advice. Since David had previous experience investing in real estate, he decided to take Kevin under his wing. David wanted Kevin to learn the ins and outs of real estate investing before spending any money so he didn’t make any (or as many) mistakes. Kevin literally followed David around for a year, gaining first hand knowledge on what life was like for a full-time real estate investor. Kevin went to his home office every day, and watched what David did, listened to him talk on the phone, went to see properties, and looked at some of the apartments that David owned.

 

After a year, Kevin decided it was time to pull the trigger and purchase his first property. He found an old, dilapidated property in Harrisburg, PA, purchased it for $26,000 and put in an additional $10,000 in renovations. Kevin funded the project with private money he raised from one of David’s investors. He sold the property for $59,000, making a profit of $5,000, which was about as much money he was making in a year working in his current job.

 

Advice in Action #1: Not only did Kevin learn the ins and outs of real estate investing from his mentor, but he was also able to raise $36,000 in private money from one of his mentor’s investors. Gaining knowledge is not the only benefit from having a mentor. If they are active in the market, they will also have a network of other real estate professionals they can send your way. Commit to finding or hiring some sort of mentor and you will benefit in a many of ways.

 

Scaling Quickly By Starting a Business and Partnering Up

 

Kevin continued doing fix-and-flips as well as a few wholesale deals on the side while finishing up the last two years of community college in Pennsylvania. Upon graduation, he decided to try his luck in a new market, so he quit his job and moved down to Florida. As soon as he arrived, Kevin started pounding the pavement and got involved in two real estate investing clubs. Through these efforts, he found the good areas of town, determined what he wanted to focus on, and discovered the best way to make money in this new market. It took about 8 months of research and networking before Kevin found his first fix-and-flip deal.

 

By continuing to fix-and-flip and network, Kevin became familiar with who the active movers and shakers in the market were and what types of investment strategies they were using. Through these experiences, he was able to form two partnerships, both of which allowed him to quickly scale his real estate business.

 

Partnership #1 – Mortgage Brokerage Firm

 

One year after making the move to Florida, Kevin partnered up with an entrepreneur who owned a mortgage brokerage firm that already employed 12 full-time loan officers. Together, they originated millions of dollars in loans each month, primarily within the sub-prime niche, and sent out 100,000 pieces of direct mail every month.

 

Partnership #2 – Investment Group

 

Kevin had also built a relationship with an experienced investment group in Sarasota. He knew this investment group because he had wholesaled and bought some deals from them in the past. Kevin and this group decided to put their brains together and ended up combining their efforts and partnering up. When Kevin initially met this group, they were doing 10 to 15 deals a month. After the partnership was formed, they were buying 20 properties a month. Their main strategy was long-term buy-and-hold rentals, with the majority of the homes being SFRs, along with a few smaller multifamily properties. By 2007, the partnership had a combined portfolio of 500 SFR rentals. Kevin was not a full partner because this investment group already owned a number of SFRs before he joined, but he was still able to amass a personal portfolio of 100 properties.

 

Advice in Action #2: Both Kevin and this investment group benefited from partnering up. For Kevin, he was able to scale his business to 100 properties, and the investment group was able to purchase an additional five to ten properties each month. It is extremely difficult to quickly scale a real estate business all alone, so if you plan on building a real estate empire, partnering up with another investor or real estate group is very advantageous. However, make sure that you perform your due diligence up-front, because choosing the wrong partner or entering a partnership at the wrong time can get you into a lot of trouble.

 

The Effects of The Financial Crisis

 

Up to this point, everything was going great. Kevin had two successful partnerships and was making a ton of money, but when the market crashed in 2007-08, it started to go downhill fast. First, Kevin sold off his ownership in the mortgage company. This was before the crash was at full force so everything was going okay, but he sold his stake to his partner, who ended up going out of business a year later. Kevin’s other partnership was the one that affected him the most.

 

Leading up to the crash, Kevin and the investment group wanted to mitigate their risk, so they committed to purchase SFR rental properties for no more than 65% of market value. When the financial crisis occurred, not only did property values plummet, but the rental market crashed as well. Homebuilders who had built brand new homes were unable to sell, so they were forced to hold on to them and rent them out. Unfortunately, these brand new properties were renting for the same price as the 20 to 30 year old homes Kevin and the investment group owned. As a result, they ended up giving 90% of their properties back to the banks.

 

One would think that someone purchasing properties at 65% of the market value would be able to sustain a crash. However, due to four main factors, this was not the case:

 

  1. The taxes and insurance rates are much higher in Florida compared to the relatively low rates found in the Midwest.
  2. Kevin and the investment group had 500 properties, mostly SFRs, spread across 7 different counties that stretched 200 miles north to south, so they had a large property management company with a lot of inefficiencies.
  3. Many of the markets in Florida had economies revolving around real estate. Once the market crashed, construction workers, real estate agents, and other real estate related employees lost their jobs and their source of income. Kevin and the investment firm were losing tenants and people were leaving Florida faster than they were coming in.
  4. Property values decreased more than 50%, and in some areas, as much as 65%. Properties they purchased at 65% ARV for $60,000 were selling for $35,000 in 2010.

The typical home Kevin and the investment group purchased was a 3 bedroom, 1.5 or 2 baths SFR that would cash flow $150 to $200 a month. Even though they were never paying more than 65% ARV plus repairs, after accounting for the four factors above, there was a very small margin to make a profit. A cash flow of $200 per month ($2400 per year) is very easy to lose, if there is turnover. If anything happens, even something as minor as a tenant tearing up the carpet, the repair expense alone would eliminate any profit expected for that year.

 

Advice in Action #3: Take a look at the four main factors that resulted in Kevin losing 90% of his portfolio and see if any of these apply to your real estate business:

  • Are you investing in an area with higher than average taxes and insurance rates?
  • Is your portfolio spread across a large region?
  • Do you know who the main employers are in your market? Does your market have a few large industries or is there a diverse spread of different industries?
  • When the market crashed, how much did the property values in your market drop?

If you find that one or more of these factors apply to your business, what can you do to mitigate these risks moving forward?

 

Looking back, Kevin believes experiencing the market crash was a good thing, although he didn’t know this at the time. After giving back 90% of his properties, he spent the next few years licking his wounds. He was stuck in a funk and didn’t see the light at the end of the tunnel. Eventually, Kevin took a step back, re-evaluated his life, and instead of being negative and saying “poor me,” he decided to put his focus on something else until he was ready to get back into real estate. As a result, Kevin started a few other businesses, a sports apparel company and a printing company, both of which are still running to this day.

 

Lessons Learned From Losing Everything

 

As time passed, Kevin began reflecting on his experience of going through the real estate crash and losing everything. He realized he had learned a lot about himself and about real estate investing in general, and figured out what he could have done differently. The answer: investing in cash flow rich properties. Looking back, Kevin wishes he had focused more on multifamily properties and learned many lessons, including:

 

  • Invest in multiple larger properties that are closer together. This will spread out your risk and eliminate the inefficiencies of a large property management company. The amount of time and effort it takes to purchase 150 SFRs is also much higher compared to purchasing one 150-unit building with the same type of returns.
  • Out of the 90% of the properties he gave back to the bank, not a single one was a multifamily property. They all survived the crash.
  • Don’t get stuck in your comfort zone. Kevin continued to purchase SFRs because that is what he knew, instead of getting out of his comfort zone and pursuing multifamily investing.
  • Don’t focus on appreciation. Kevin calls appreciation “funny money.” It is not spendable unless you sell it at the right time. Don’t buy based of the expectation that the market will continue to increase indefinitely, year over year.
  • Understand your investment criteria before deciding to purchase. Figure out the return on investment you want and commit to only purchasing properties that meet your criteria.
  • Don’t overleverage. Kevin and the investment group would wait until they had 10 to 15 homes. Then they would take a commercial line of credit, pull the money out, and purchase more properties. When the market crashed, they were unable to obtain lines of credit, so everything fell apart.

Advice in Action #4: The main takeaway is to focus on cash flow. If you are buying for cash flow, you are getting an asset that will continue paying you month after month, no matter what happens with appreciation. Buy for cash flow and have the appreciation be the icing on the cake.

 

 

 

Want to learn more on buy-and-hold investing and a wide range of other real estate niches? Attend the 1st Annual Best Ever Conference February 24-25 in Denver, CO. It’s the only real estate investing conference whose content and speakers are curated based on the expressed needs of the audience. Visit www.besteverconference.com to learn more!

 

Related: Best Ever Speak Brie Schmidt Sneak Peek How to Avoid the Shiny Object Syndrome in Real Estate Investor

 

 

Lessons Learned from Investing Over $1 Million in Education


Mike Agugliaro and his partner, the co-owners of New Jersey’s largest and most respected home services company, had a relatively successful business, making $1 million in annual revenue. However, they were working an insane amount of hours. As a result Mike’s partner threatened to quit. He was burnt out and couldn’t go any further. At that point, Mike said, “what if we found people who knew how to build the business, who already figured it out and we just invested [and] learned from them?” In other words, Mike compared it to “let’s jump off the bridge one last time and we will either land on our feet or die.” Fortunately, this was really the turning point in their business and the main contributing factor towards their success. In our recent conversation, Mike explained the magical lessons he learned from investing in this education and how he applied it to his business to grow it from $1 million to over $30 million in annual gross revenue in 10 years.

 

The Crystal Ball of Business Success

 

From the moment Mike’s partner threatened to quit up until now, he has invested over $1 million into his education. No, that is not a typo! He invested over $1 million into obtaining firsthand knowledge from the most successful business people on the planet.

 

Luckily for us, Mike was willing to distill the advice and wisdom he gained from the $1 million investment into three simple pillars:

 

  1. Mindset – “You have to get your mind right.”
  2. Skill set – “I learned that I needed to learn things I didn’t know how to do.”
  3. Action – “One of the biggest things: You’ve got to take action on your new expanded mind and the new skills that you learned.”

 

Mike calls these three pillars “the crystal ball. If you took [anyone] that wanted to go to the next level – whatever it is. I don’t care if it’s a million or a billion dollars – and said, ‘what would get you there? Would it be a shift in mindset?, would it be a new wisdom or knowledge or skill set?, or would it be [that] you just need to do different actions?,’ that’s like the solve all mystery of what holds anybody back.”

 

Once you are able to identify which one of the three pillars are missing or damaged in your business, you can brainstorm ideas and methods to fill in those gaps. Mike recommends that you ask yourself the question “what would get you there?” and then literally put pencil to paper (or fingers to keyboard) and write out exactly what it is that you need to do to get there (wherever there happens to be). Making it clear will allow you to formulate an effective plan of attack, rather than keeping it pie in the sky and guessing which areas you are weak in or are neglecting.

 

 

The Crystal Ball in Action

 

Mike applied this crystal ball to his business, and more specifically, towards his marketing methods.

 

First, Mike had to change is mindset. “I used to say marketing is everything and everything is marketing … That’s kind of close … Marketing is the only thing, period … If you want something that will change the game – I don’t care what industry or what you do to make wealth or gain yourself greater freedom – it’s about creating repeating buying of existing customers. It’s about positioning for negotiating the closing of higher deals.” According to Mike, this change in mindset “ hands down changed the game for me.”

 

With this new mindset, Mike was able to move to the two pillars – skill set, and then taking action on that new skill set.

 

The first new skill set he adopted was learning how to understand the ideal customer “People might have heard about this before … It’s really digging into the emotional aspect of the avatar – the perfect customer … I want to have an emotional conversation to move them from where they’re at to where I want them to go. I can only do that if I know the right person to talk to at the right time [and] in the right place to move them in a forward direction.” For example, Mike knows that for his business avatar, “in 7 years, they’ll give us $50,000 in residential service work.”

 

Another skill set Mike adopted was how to effectively communicate with his ideal avatar. “One thing we’re really good at,” he said in regards to servicing customers, “is we understand that there is only one thing that has to happen – build a relationship. [That means] really understanding who they are, what they want, when they want it, and who they like doing business with.” This enables Mike to understand how to adequately create his messaging when marketing to that avatar or perfect person, which in turn, says Mike, “helps them move along the funnel or along the line to making a good decision.”

 

 

Conclusion

 

After spending over $1 million on education, Mike distilled his learning into three pillars:

 

  1. Mindset
  2. Skill set
  3. Action

 

By identifying which one of these three areas you need to improve, you will solve any mystery of what’s holding you back from going to the next level.

 

Tactically speaking, Mike applied this advice to his marketing.

 

First, he adopted a new mindset, going from thinking marketing was important to marketing being the most important aspect of his business.

 

Then, Mike acquired a new skill set – how to properly identify and communicate with his ideal customers.

 

Finally, Mike took action and in combination with a new mindset and skill set, he was able to grow his gross revenue from $1 million to over $30 million in a decade.

 

 

Advice in Action: Honestly assess your business or yourself in terms of these three pillars: Which am I good at? Which am I poor at? What action can I take to go from poor to good? What action can I take to go from good to great?

 

 

man standing on a rock

Two Ways to Gain Direct Knowledge From Experienced Investors for FREE

 

Almost every investor stresses the importance of education. A common solution they offer is that you need to go out and hire a mentor. This can be costly, especially for newer, broke investors. Josiah Rosebury, who is a wholesaler that completed 2 deals a month in 2016, provides similar advice, but in our recent conversation, he explains how he discovered two approaches that allow you to learn from experienced pros without having to spend thousands of dollars for a mentor.

 

Strategy #1 – Be the Boots on the Ground

 

First, instead of just paying someone money, Josiah offered to be the boots on the ground for an experienced rehabber. “My exchange to him was I was able to go view properties that he may not be in the state or he may be out of town at the moment. When he found a property that he just couldn’t get to right away, he would call me and I would get there right away. I would take excellent pictures, excellent videos, everything to the T, and be able to send that back to him.” And what did Josiah get in exchange for his efforts? – “I not only got to go out there and start viewing more properties, doing walkthroughs, [but also, the experienced rehabber] was able to get on the phone with me at least once a week and tell me what I needed to do to improve my business.”

 

Strategy #2 – How to Get Paid to Learn

 

Josiah’s second strategy was not only free, but enabled him to make money while getting educated. After successfully wholesaling 2 deals a month for about a year, his company began financing some rehabs for other companies. “That slowly was our way of learning. We put a little bit of money in the deal with other companies that are rehabbing and they [allowed us] to get a return on [our] money. But on top of that, we get to be apart of the rehab.” Josiah is currently involved in a rehab deal that he is financing. “We put some money in that deal and they’re doing a full rehab. They’re actually tearing off the top of the roof and adding another 1,500 square feet. It’s been very interesting getting to learn from those folks.” Josiah is able to observe a complicated rehab first hand and attain all the knowledge that comes as a result. On top of that, since he has his own money in the deal, he gets an annualized return of 30%!

 

 

How to Find Experienced Investors

 

Both of these are highly proactive strategies that will take some effort on your part. It is likely that you will have to reach out to multiple rehabbers (or whoever it is that is experienced in your specific real estate niche) before you find someone that wants to show you the ropes and/or take your money. Josiah stated that “it’s up to you to find the right person that you can build rapport with and build a relationship with that wants to take their time and show you the steps 100% of the way.” Then once you do find this person, it is also up to you to determine “how much time do you want to be [on site]? How much time do you want to devote yourself to be around the construction and understand the process of what they’re having to go through.”

 

To find these investors, Josiah says, “I associate myself with any club that is around me. [It’s] honestly [about] networking and going to these clubs and making yourself a regular face there every single week and people will start to talk to you. They’re going to want to see how motivated you are and how dedicated you are to this business…There’s hundreds and hundreds of people who want to be apart of real estate but they don’t want to do the things necessary to stay in real estate.”

 

Related Post: Four Tips to Successfully Sell Yourself In Real Estate Investing

 

Conclusion

 

Josiah implements two very unique knowledge acquisition strategies. First, he has a mentor, but instead of paying cash, it is an exchange of value. In return for advice and knowledge, Josiah performs walkthroughs for an experienced rehabber.

 

Josiah also has a strategy that is not only free, but actually pays him money. He does this buy investing money into experienced rehabber’s deals and then hangs around the construction site to absorb as much knowledge as possible.

 

These two strategies will require some proactive effort on your part, especially in terms of finding an experienced investor. Josiah recommends that you attend every real estate related club around you and commit to going every single week. Become a familiar face and build that credibility so that the club attendees know you are truly motivated and dedicated to this business.

 

Comment Below: What are some clever, inexpensive or free ways you’ve been able to gain knowledge from experienced investors in your given field?

 

Marketing Outrageously

An Outrageous Book For Real Estate Investors

You must read Marketing Outrageously by Jon Spoelstra.

This book is a no b.s. guide for increasing revenue on a shoe-string budget. I spent years at NYC ad agencies and this book taught me a lot that can be applied to real estate investing.

It was referred to me by one of my clients after I told him about an idea I was implementing. The idea is to give my residents of a large apt community a $1 scratch off lotto ticket if they pay the rent on time and have a zero balance.

mkt out

He said, “oh, that’s marketing outrageously.” I was like, “yeah, I guess so.”

“No, I mean there’s an actual book on those types of tactics,” he said.

And after reading this book, boy did I get inspired to continue and enhance my current outrageous marketing ideas.

Here are my top 10 takeaways:

  1. In every marketing project, think outrageously.
  2. Earn at least a $4 to $1 ratio  of revenue to ad cost
  3. Go for dominance when placing advertisements – forget reach and frequency
  4. Ask these two questions every day:
    1. What’s it going to take to make this to best company in the industry?
    2. What did I do today to make my company money?
  5. Ask what business are you really in? (ex. NBA teams aren’t in basketball biz, they are in entertainment biz)
  6. How to improve revenue:
    1. Get regular customers to buy more
    2. Steal customers from your existing business
  7. How to structure a biz for success:
    1. Adding more salespeople
    2. Having a nice work environment
    3. Training, training and more training
    4. More tools for sales people
    5. Big-time database marketing
  8. Give away product for free them get them to stay for the long haul (ex. AOL did this with their disks)
  9. Invent new ways to market your product every six months
  10. Make the most important people in your business your employees, then customers then investors/shareholders – this hierarchy will produce the best results for all involved

Go buy the book – you’ll learn so much applicable stuff it’s, well, outrageous.

Three Feet from Gold

2 Lessons from My “Three Feet from Gold” Experience

If you haven’t read Three Feet from Gold – do it. It’s a life changing book on personal development, never quitting, finding your purpose and being a servant leader.

9781402767647_p0_v4_s260x420

I won’t give it away (cause I’m sure you’ll go read it) but for some context it’s about a guy named Greg who had a bad attitude and wasn’t doing well financially. Greg then meets a successful business man who introduces him to all these successful people because he wants to see Greg succeed too. Greg is blown away by all the introductions and does all he can to maximize the experience and give back to others afterwards. (ok, that’s all I should say cause I don’t want to tell too much!)

Well, yesterday I had a living, breathing experience that good ole Greg had in Three Feet From Gold.

Let me explain…

I got a message on BiggerPockets from Andrew Lanoie. He said he enjoyed reading my profile and would like to connect. I always like connecting with new people so we set up a call.

Little did I know all the wonderful things that would come out of it…

After we did our introductions on the call Andrew asked me about my background and my focus. I told him I’m working on finding my next large multifamily deal.

And then a flood of help came…

Joe says something like: I’m also doing a podcast and would love to interview you for it.

Andrew says something like: Sure, and I can help you get more people. Would you like to be introduced to…(then he goes on to list 3 seasoned investors who have incredible backgrounds in real estate and life)

Joe says something like:  wow, yes, that would be awesome. (Joe thinking: holy cow, be careful what you ask for because you just might get it!)

10 minutes after the call, I get email, after email, after email of Andrew making introductions. I feel like I’ve just opened up a gold mine of knowledge. I did not expect all of this to happen at once or so quickly. I had lots of stuff planned for the rest of the week but made it a point to follow up with each of the emails after Andrew sent them.

All three people he emailed replied immediately. It was incredible.

2 lessons learned from my Three Feet From Gold experience:

  1. Continue to give, give, give to others. (as Andrew did) Find a way to identify what others are looking for and then help them get connected with someone.
  2. Regardless of how busy you are, if someone goes out of their way to help you make sure you follow up on it. I was extremely busy but so is Andrew. I immediately followed up with the people and, one day later, have spoken to 2 out of 3 and have a call scheduled with the 3rd.

As my boy Tony Robbins says, “The secret to living is giving.” Words to live by. photo (34)

Very Best Multifamily Books for Every Level

I get asked all the time what are the best books to read on multifamily investing. The answer really depends on the reader’s knowledge level. So, here are books to read for every level…

BEGINNER LEVEL 

investing for dummies

Commercial Real Estate Investing for Dummies by Peter Harris and Peter Conti

Granted, Peter Harris is a friend of mine but, before I knew him, this was the first book I ready on multifamily investing and it was incredibly helpful in teaching me the basic principles of multifamily investing. Doesn’t go too deep in analysis but gives you all the tools needed to have enough knowledge on the subject so you can have intelligent conversations with people.

 

BEGINNER-TO-MEDIUM LEVEL

compelte guide to buying and selling real estate

The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges 

This is a fantastic book that takes you through case studies and beginner-to-medium-level advice on acquiring multifamily family properties. One of the things I learned in this book is the disadvantage of assuming loans because, typically, you’ll pay more than you would if you put new debt on the property. I recommend this book to everyone I speak to who wants a good multifamily book.

 

ADVANCED LEVEL 

Money pit

How to Take an Apartment Building from Money Pit to Money Maker by Craig Haskell

For anyone who is or wants to purchase apartment buildings that need some work, this book is for you. The advice in this book is practical and tested. You need to read this BEFORE you actually buy the property so you don’t fall into the trap that a lot of investors fall into with a money-pit.

BONUS

If you’re interested in development then read….

development book

Real Estate Development: Principals & Process

Like, whoa daddy. This is a big book. This book is so big that if you shot a bullet at it you’d feel sorry for the bullet. But it is a comprehensive book on real estate development. I really like how it lays out the step-by-step process of development and gives you case studies along the way. (notice a “I love case studies” theme)

 

 

 

 

Two Life Lessons Learned from Gladiators

I’m always searching for ways to improve my workouts and get in better shape. I just didn’t realize that search would end up teaching me two critical life lessons.

Here’s what happened…

On my last trip to Texas I asked my 50+ year old brother-in-law how he stays in shape because he looks like he’s 35 years old. He told me he runs 2 miles to an outdoor workout station and does three sets of pull-ups, pushups and dips. Then he runs 2 miles back home.

I like that workout approach and figured I’d try it for myself so when I got back to NYC I did just that.

I ran 2 miles then went to an outdoor workout station along the East River to start on my upper body exercises. When I arrived I instantly noticed something about the guys in the area. I couldn’t quite place it but then I eventually realized they could all be American Gladiators or on the cover of Men’s Fitness. They were different ages, ethnicity and heights but all were absolutely ripped. Pretty sure their ears even had a 12-pack.

That gave me a eureka moment…. Clearly I am in the right place if I want to look like these guys do. By being around them the standards for my body physique immediately increased. I’ll start with my brother-in-law’s routine then slowly add in stuff I see these Gladiators doing. Then, voila, I’ll be a Gladiator to.

So the first lesson?

Find those who are already where you want to be then copy what they do

  • The fastest way to results is to borrow a success roadmap from someone who is already where you want to be

But that’s easier said than done as I would soon find out. I consider myself an athletic guy but it became apparent very quickly that it would take some time to transform into Joe the Gladiator.

Why?

Because I suck at pull-ups. By suck I mean I did…like four before I started pretending that my hands were too sweaty to keep going. I’d wipe my hands on my shirt and just shake my head “damn you sweaty hands” meanwhile my biceps ache and the Gladiators roamed all around me.

And that’s just my first set! I had two more to go. And, at this point, I could either do more pushups (much easier for me) or force myself to get back up there and embarrass  myself by doing one or, perhaps, two pull-ups per set.

It took some Eminem to motivate me but I eventually got up there and blocked out everything else. I did a whopping 2 pull-ups on my second set and 2 more on my third set. Then, I got the hell out of there.

Second lesson?

Force yourself to do the uncomfortable (even if it’s initially embarrassing)

  • Trains your body and mind to get used to that activity so you can get better

I know I’ll never get better with pull-ups if I don’t force myself though the beginner challenges. It sucks, really sucks, feeling so inadequate when those around me are accomplishing much more but I know that if I keep their company and push myself past my comfort level I will soon become Joe the Gladiator.

 

 

Top 3 Real Estate Investing Books

I often get asked which books I recommend reading for beginners. I have a rather large library (well, as large as my NYC apartment will hold) of real estate investing books and here is my list of the top three ranked in order of which they should be read.

1.      Investing for Dummies

 

Wait, what? The first book isn’t dedicated to real estate? Correct, my friend. It’s not. It gives you a great overview of the three different types of investing – stocks/bonds, investing in small businesses, and real estate.

And it lists out the pros and cons for each of them. That way you can decide if real estate is the path for you based on the facts.

And, if it is then move on to…

 

2.      Rich Dad, Poor Dad

 

You’ve heard of it and for good reason. My sister mailed me a copy 6ish years ago and I’ve never been so inspired to invest.

Here’s the drawback from the book: it doesn’t go into depth on the deals. And that’s been the knock on the book for years. Also, you might hear people speak negatively about the Rich Dad, Poor Dad seminars. Personally speaking, I’ve been to one and learned a lot but I have friends who said they weren’t worth the money. I think it depends on your instructor – regardless that’s all irrelevant because this book is worth your time.

The advantage is it is absolutely inspirational because it simplifies the investing process and makes it seem accessible (which it is). The principals he teaches in the book set the foundation for being a savvy investor.

 

3.      Equity Happens

 

What a fantastic book written by a couple guys who know real estate investing. The book starts out with a story about two people working at the same company but one is a janitor and the other a high-level executive. The janitor invests in real estate and the sales guy doesn’t. You can probably guess what happens but the story is very insightful despite the predictable ending. The bulk of the book discusses how to generate equity with your real estate purchases. This is a MUST read.

What other books have you read? Feel free to list in the comments below or send me a Tweet – @joefairless.