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.

The 7 Most Recommended Books of 2021

The 7 Most Recommended Books of 2021

With 2021 in the rearview, most people are looking to create an amazing 2022. One of the best ways to prepare for success in the new year is by reading good books. However, there are a plethora of available options so sifting through the various titles can be a challenge.

To help give you a place to start, we reviewed all of the 2021 episodes of the Multifamily Insights podcast, which included over 100 guest interviews. On each episode, I ask guests to share the book they recommended most in the last year. From those discussions, we’ve compiled a list of the books that were mentioned most frequently.

These books range in categories from self-help to business and real estate. The top seven books are highlighted below, so review the list and see which ones might help you crush your goals in 2022.

 

7. Atomic Habits by James Clear

Coming in at number seven is the book that I’ve probably recommended the most. Atomic Habits is a great depiction of how small habits can lead to big results. The thing that readers love most is the immediate application of the lessons in the book. I highly recommend it, as did other investors including Brian C. Adams.

Buy on Amazon

 

6. How to Buy and Sell Apartment Buildings by Eugene E. Vollucci

This is a fundamental book on apartment investing. While it was originally published in 1993, the principles are timeless. This one was recommended by multiple investors, including Lee Johnson and Samson Jagoras.

Buy on Amazon

 

5. Never Split the Difference by Christopher Voss and Tahl Raz

This has become a favorite book for real estate investors for the insights it provides on negotiations. Author Christopher Voss leverages his experience as an international hostage negotiator for the FBI to share insights to help you get what you want out of a negotiation.

Buy on Amazon

 

4. Raising Capital for Real Estate by Hunter Thompson

This book breaks down the process for raising capital for real estate deals. Thompson does an excellent job of detailing key steps and important aspects of capital raising. Brian Briscoe is one of the guests who recommended this book and mentioned that he likes it so much that he has a hard copy, the Kindle version, and the audio version.

Buy on Amazon

 

3. How to Win Friends and Influence People by Dale Carnegie

This is a classic and classics never go out of style. This book has been the authority on networking and influence for sales professionals for generations. Originally published in 1936, this book has stood the test of time sharing some of the best tips and insights to build credibility and connections with others. Lee Kiser is one of the guests that listed this book as his most recommended of 2021.

Buy on Amazon

 

2. Who Not How: The Formula to Achieve Bigger Goals Through Accelerating Teamwork by Dan Sullivan

This book was recommended so much that it quickly leaped from my “wish list” to my library. Jonathan Greene and Larry Pendleton are just two of the guests who raved about the impact this book has had on their businesses and approach. In the book, Sullivan shares a formula to help you build a successful business without killing yourself in the hustle and grind culture of entrepreneurship.

Buy on Amazon

 

1. The ONE Thing by Gary Keller

The most popular book of 2021 was The ONE Thing by Gary Keller. The book’s focus and clarity helped make it a #1 Wall Street Journal Best Seller, New York Times Best Seller, and USA Today Best Seller — and the most recommended book on the Multifamily Insights podcast. Gustavo Munoz Castro is one of many who selected this as their most recommended book of 2021.

Buy on Amazon

 

Other Noteworthy Books

Best Ever Apartment Syndication Book by Joe Fairless and Theo Hicks

While this is a list of the top seven, there are certainly other noteworthy books you should check out. The first one I want to suggest is the Best Ever Apartment Syndication Book by Joe Fairless and Theo Hicks. This is an excellent guide on apartment investing, even if you don’t plan on syndicating deals with other investors. Joe and Theo do an excellent job of detailing the key steps of apartment investing, including selecting a market, building your team, finding a deal, and raising capital.

Buy on Amazon

 

Can’t Hurt Me by David Goggins

This is another bonus book. David shares his journey filled with abnormal perseverance and struggle. He shares how he built up his mental toughness to push through all sorts of obstacles and challenges. I highly recommend the audiobook as the additional commentary serves as a podcast within the book and David’s commentary is engaging. His language is colorful, but the message is powerful.

Buy on Amazon

 

The 80/80 Marriage by Kaley Klemp and Nate Klemp

The last book has nothing to do with real estate or business but does focus on relationships. The 80/80 Marriage is an excellent read on strengthening your most important relationships. It’s not solely for married couples and touches on the mindset of doing what’s best for the partnership, as opposed to seeking equality.

Buy on Amazon

 

Final Thoughts

Our top seven recommendations along with these bonus books can give you the clarity, motivation, and/or insights you’re seeking. Be sure to add these books to your list for 2022. Do you have a favorite book from the list or one that wasn’t listed? Tell us about it in the comments.

 

About the Author:

John Casmon has helped families invest passively in over $90 million worth of apartments. He is also the host of the #1 rated multifamily podcast, Target Market Insights: Multifamily + Marketing. Prior to multifamily, John was a marketing executive overseeing campaigns for Buick, Nike, Coors Light, and Mtn Dew: casmoncapital.com

 

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A Tip for Reading More Books

A Tip for Reading More Books

(Plus 4 Books I’m Reading Now)

Recently I realized that I’m not reading as many books as I used to. And that’s a problem because when I’m not reading, I feel like my mind isn’t as sharp and my business doesn’t evolve to the degree that it should.

I think that’s the main benefit for me when it comes to reading books — they help me evolve both personally and professionally. And we either evolve or die, right? Right. So, needless to say, I’ve doubled down on making reading a priority again.

Here’s one idea that works for me to help me get back into reading consistently. I read multiple books at a time and put each book in a place in my house where I might be sitting for 10 or more minutes at a time. That way picking up the book is convenient, and I can knock out a paragraph, a page, or even a chapter at a time. This is also a great way to decrease my screen time since I have a book right there for me to pick up and read instead. Super convenient.

Here are the four books I’m reading now and where they are placed. I’m about 30% through with each of them so far, but I recommend them all just as they were recommended to me.

 

1. The Cold Start Problem by Andrew Chen

A Tip for Reading More Books — The Cold Start Problem

What It’s About: “A startup executive and investor draws on expertise developed at the premier venture capital firm Andreessen Horowitz and as an executive at Uber to address how tech’s most successful products have solved the dreaded ‘cold start problem’ — by leveraging network effects to launch and scale toward billions of users.”

Buy on Amazon

 

2. The Wealthy Gardener by John Soforic

A Tip for Reading More Books: The Wealthy Gardener

What It’s About: “A heartwarming series of stories and practical wisdom on entrepreneurship and wealth in the vein of Rich Dad, Poor Dad, written by a financially independent father for his ambitious son.”

Buy on Amazon

 

3. The Ultimate Sales Machine by Chet Holmes

A Tip for Reading More Books — The Ultimate Sales Machine

What It’s About: “What if you could create the finest, most profitable, and best-run version of your business without wasting precious dollars on a thousand different strategies? Legendary sales expert Chet Holmes says you can. All you need is to focus on 12 key areas of improvement — and practice them over and over with pigheaded discipline.”

Buy on Amazon

 

4. Reclaiming Conversation by Sherry Turkle

A Tip for Reading More Books — Reclaiming Conversation

In addition to having books in predetermined spots, I have a floater book that I take with me on trips.

What It’s About: “Renowned media scholar Sherry Turkle investigates how a flight from conversation undermines our relationships, creativity, and productivity — and why reclaiming face-to-face conversation can help us regain lost ground.”

Buy on Amazon

 

It’s a simple tip, but putting my books in proximity to where I will be has helped me make progress with reading them. Hope you find it helpful, too.

 

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Top 10 Best Ever Blog Posts of 2021

Top 10 Best Ever Blog Posts of 2021

This year, we published 312 articles on the Best Ever blog. Using Google Analytics, we were able to narrow that number down to the top 10 most-read blog posts of 2021, just in time for the new year.

Hot topics included everything from goals and success habits to expert insights and market analyses. Take a look through the reader-curated list below to see if your favorite article made the cut.

 

10. 6 Best Ways to Find Commercial Real Estate Syndicators

6 Best Ways to Find Commercial Real Estate Syndicators

Author: Theo Hicks
What You’ll Learn: Six of the best strategies for finding commercial real estate syndicators to passively invest with, based on CIO and Spartan Investment Group co-founder Ryan Gibson’s presentation at last year’s Best Ever Conference.
Best Ever Blog Quote: “Once you find one operator to passively invest with, they can be a great source for other syndicators. They likely know other operators who are syndicating projects, either in the same niche or different niches.”
Read the full article.

 

9. Sacrificing Short-Term Satisfaction for Long-Term Happiness

Sacrificing Short-Term Satisfaction for Long-Term Happiness

Author: Theo Hicks
What You’ll Learn: Why balancing short-term satisfaction and long-term reward is essential to your success as an investor, and what steps you can take to achieve that balance.
Best Ever Blog Quote: “The path you take depends on your resources and why you got into investing in the first place. In some cases, you can take and enjoy both paths. Make several investments that pay off quickly, but you can also make at least one long-term investment that grows over the years.”
Read the full article.

 

8. 10 States with the Most Net Migration in 2020

10 States with the Most Net Migration in 2020

Author: Joe Fairless
What You’ll Learn: Which 10 states had the most net migration in 2020 according to U-Haul’s ranking based on the net gain of one-way U-Haul trucks entering a state versus leaving that state during the calendar year — and what that ranking means for you as an investor.
Best Ever Blog Quote: “While U-Haul migration trends do not correlate directly to population or economic growth, the Company’s growth data is an effective gauge of how well cities and states are attracting and maintaining residents.” —U-Haul
Read the full article.

 

7. Cash Flow vs. Appreciation: 5 Expert Investors Share Their Insights

Cash Flow vs. Appreciation: 5 Expert Investors Share Their Insights

Author: Agnes A Gaddis
What You’ll Learn: Whether five expert investors choose to focus on cash flow or appreciation, why they tend to prioritize one over the other, and the pros and cons of each strategy.
Best Ever Blog Quote: “While I agree that taking advantage of current market trends can yield excellent short-term capital returns for investors, the net cash flow from rental units can provide an excellent source of income for investors that are seeking to expand their real estate businesses even further.” —Julius Mansa, M.Fin., Investment Analyst and Lecturer
Read the full article.

 

6. Key Investment Tips for Real Estate During Inflation

Key Investment Tips for Real Estate During Inflation

Author: Seth Bradley, Law Capital Partners
What You’ll Learn: What causes inflation, how it is measured, and what you need to know about investing during inflation.
Best Ever Blog Quote: “Inflation is neither good nor bad. Instead, whether inflation is beneficial depends on your personal financial situation.”
Read the full article.

 

5. How a Passive Apartment Investor Interprets a Schedule K-1 Tax Report

How a Passive Apartment Investor Interprets a Schedule K-1 Tax Report

Author: Theo Hicks
What You’ll Learn: How a Schedule K-1 tax report works, who is responsible for creating and filing it, and the three boxes that passive investors care about most.
Best Ever Blog Quote: “Each year, the general partner’s accountant creates a Schedule K-1 for the limited partners for each apartment syndicate deal. The passive investors file the K-1 with their tax returns to report their share of the investment’s profits, losses, deductions, and credits to the IRS, including any depreciation expense that was passed through to them.”
Read the full article.

 

4. The Pros and Cons of Opportunity Zone Funds for the Passive Investor

The Pros and Cons of Opportunity Zone Funds for the Passive Investor

Author: Joe Fairless
What You’ll Learn: What an opportunity zone is, how an opportunity zone fund works, who can invest, and the benefits and risks that come along with this type of investment.
Best Ever Blog Quote: “With the 2017 Tax Cuts and Jobs Act, the United States government created a new wealth-building vehicle for investors. This legislation established opportunity zone funds as a way for investors to improve struggling communities while receiving capital gains tax breaks.”
Read the full article.

 

3. Why You Should Consider Using the Deferred Sales Trust (DST) Now More Than Ever

Why You Should Consider Using the Deferred Sales Trust (DST) Now More Than Ever

Author: Brett Swarts, Capital Gains Tax Solutions, LLC
What You’ll Learn: How the Deferred Sales Trust can be used as an alternative to a 1031 exchange when it comes to deferring capital gains taxes on the sale of highly appreciated assets.
Best Ever Blog Quote: “With the new Biden Administration taking office, investment real estate and tax strategists are thinking more about Deferred Sales Trusts since the 1031 exchange appears to be in danger.”
Read the full article.

 

2. Top 10 Markets to Buy Multifamily in 2021

Top 10 Markets to Buy Multifamily in 2021

Author: Joe Fairless
What You’ll Learn: Which 10 cities had the most “buy” recommendations for 2021 according to the annual Emerging Trends in Real Estate report from PwC and the Urban Land Institute.
Best Ever Blog Quote: “Just because a market isn’t on this list doesn’t mean it is a bad market. But it might be! Also, just because your market is on this list doesn’t mean EVERY deal in that market is a good deal.”
Read the full article.

 

1. 7 Real Estate Experts on What to Do If There Is a Housing Market Crash in 2022

7 Real Estate Experts on What to Do If There Is a Housing Market Crash in 2022

Author: Agnes A Gaddis
What You’ll Learn: What strategies real estate experts would use to keep their businesses afloat if the housing market were to crash in the near future.
Best Ever Blog Quote: “All great real estate agents need to be able to adjust to their environment. Whether that means learning something new, investing more money back into their business, or doing something different. Change is inevitable.” —Bill Gassett, Realtor and Owner of Maximum Real Estate Exposure
Read the full article.

 

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Wall Street vs. Main Street

Wall Street vs. Main Street

Wall Street

Today we’re going for a stroll through the neighborhood. We’ll start by walking down Wall Street. You may not realize it, but you know this street very well. You’ve been hanging out here for years.

It’s likely that when you were growing up, the only financial education you received came from Wall Street. They told you that the smartest thing you can do is invest in stocks, bonds, mutual funds, and a 401(k). Work 9 to 5 ‘til 65. Then, BOOM, you can retire and live out the rest of your days sipping a coconut drink on the beach. Sounds great — or does it?

First of all, for most of us, “nine to five” is a pipe dream. We’re working more than that. Second, do we really want to spend the best days of our lives slaving away on Wall Street?

Most of us go to school to learn how to work, but of course, we aren’t provided any real financial education. We do this for about 20 years, then we work, work, work, like a Rihanna song on repeat, for 40 years. If we’re lucky enough to live the average American lifespan of 78 years, we sip from coconuts for 13 years. That’s assuming that we’re physically and mentally healthy enough to do so.

As all this time goes by, Wall Street’s financial advisors, stockbrokers, mutual and hedge fund managers make money off of your hard work whether they provide returns to you or not. These are the people who promise that they can beat the stock market fail 95% of the time. This is according to SPIVA (S&P Indices vs. Active) who keeps a scorecard of the performance of professionally managed funds vs. the S&P 500.

You can expect average returns from Wall Street. You can research thousands of data points and different studies, but over the long run, bull, and bear, you should expect around a 5% return.

Additionally, Wall Street doesn’t look like a freeway in North Dakota. It looks more like Lombard Street in San Francisco. It’s curvy, up and down, and volatile. Remember 2001? 2008? How about March of 2020?

 

Main Street

Main Street, on the other hand, looks a little different. There is hustle and bustle, but people are enjoying their day. This is the street you knew about growing up, but maybe you didn’t think it was possible to get here. Maybe you thought real estate, private equity, or owning your own business was too expensive, too risky, or too much work. But that’s because you’re used to Wall Street telling you how to invest.

I’m here to tell you that you can walk on Main Street all day. All are welcome. It’s not too expensive. You need money to invest, of course, but you don’t need millions of dollars. It’s not too risky.

This is how the ultra-wealthy and institutional investors invest. It’s not too much work. Depending on the investment vehicle you choose, it can be completely passive, with just a little bit of legwork upfront in order to make educated decisions.

And the payoff? Well, we need to beat that volatile 5% from Wall Street. Here’s a secret. What Wall Street investors don’t know is that high returns of 8%, 9%, and beyond are not only realistic, but probable. You just can’t find these returns on a consistent basis on Wall Street. They exist in private markets on Main Street.

The historic problem on Main Street is that there hasn’t previously been a road map showing how to get there. Investing in Main Street was not openly available to the general public. However, times are changing, the map is available, and people are flocking to Main Street.

The SEC recently expanded the definition of an accredited investor to effectively make private investments more accessible to a greater pool of qualified investors.

In late 2019, Mark Wiseman, the global head of equities at BlackRock, Inc., one of the world’s largest investment management firms with $6.9 trillion in assets under management, reported that 50% of BlackRock institutional investors are actively reallocating their assets from public to private markets. In other words, from Wall Street to Main Street.

In mid-2020 at the PLI Investment Management Institute 2020, Dalia Blass, the Director of the Division of Investment Management at the SEC made a stunning suggestion: Individual investors need more access to private markets — specifically through their 401(k)s. Maybe it’s no coincidence that Ms. Blass’ speech came at a time when many 401(k) participants saw their portfolios plummet in the onslaught of the COVID-19 pandemic. It’s been a roll of the dice at the craps table ever since.

 

The Value of Private Investments

The message is clear: Private investments should be a bigger part of your asset allocation. The value of private investments in alternative assets like commercial real estate, private equity, and commodities is nothing new to institutional investors like private pension plans and university endowments. They have known for decades that private investments in alternatives offer cash flow, capital growth, and wealth preservation, which are fundamental in recessionary times.

The ultra-wealthy and institutional investors have always favored the private markets — not only because of their non-correlation to Wall Street, but for the types of returns not found on Wall Street.

One such example is the Yale University Endowment, which invests heavily in commercial real estate because of its superior returns, lower risk, and low correlation to Wall Street. In 2018, while the S&P was down 4.38%, the Yale Endowment reported a return of 12.3%. Another example is Tiger 21, a private investment group that requires its investors to have at least $10M in investable assets.

Main Street private investments in alternative assets like commercial real estate offer the two pillars of wealth-building — cash flow and capital growth. Wall Street public equities just can’t compete. Consistent income, appreciation, and non-correlation to Wall Street are why Main Street private investments can offer investors above-market risk-adjusted returns.

The Wall Street mob will tell you that you must have a higher tolerance for risk to invest in Main Street alternative investments. This is simply not true. They’ll tell you that if you are risk-averse, to stay the course, take your volatile 5%, 9-to-5 ‘til 65, and sip your coconut.

I’m here to tell you there is a different way. Follow me to Main Street. Achieving above-market risk-adjusted returns is not just possible but probable — and likely.

 

About the Author:

Seth Bradley is a real estate entrepreneur and an expert at creating passive income while still working as a highly paid professional. He’s the managing partner of Law Capital Partners, a private equity firm focused on multifamily and opportunistic acquisitions. https://passiveincomeattorney.com/special-report/

 

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12 Most Downloaded Best Ever Podcast Episodes of 2021

12 Most Downloaded ‘Best Ever’ Podcast Episodes of 2021

Congratulations! We’ve (almost) made it through another year, and for Best Ever listeners, it’s been a year packed with daily no-fluff advice to guide their investing journeys.

We highlighted the top 12 episodes our listeners couldn’t get enough of in 2021 to inspire you as you prepare to kick off the new year. Whether you missed them the first time around or listened on repeat, these 12 episodes are sure to help set you up for success in 2022.

 

12. Attaining Your Passive Income Goal

John Soforic
Guest: John Soforic
Guest Bio:
John is a full-time property manager and author with 25 years of real estate experience. At the time of this interview, he had attained a net passive income of $20,000 per month, a portfolio consisting of 110 doors freely owned, and had flipped 75 properties while working full-time.
Best Ever Quote: “
Let’s really talk about turning off that TV. Let’s talk about all the frivolous things that we can do. I had to do that. I stopped reading books that I liked, magazines that I liked, I stopped watching TV that I liked — you sacrifice.”
Listen to the full episode.

 

11. 80 Units in 1.5 Years

Blake Selby

Guest: Blake Selby
Guest Bio:
When Blake Selby started his real estate journey as an investor, he tried a little bit of everything before eventually morphing into a private lender. But not before scaling to 80 units within 1.5 years, then turning that into 100 units free and clear.
Best Ever Quote:
“Selectively choose who you listen to. Make sure people you’re listening to actually have done what they’re saying and aren’t making the majority of their money on education. Make sure they’re making the majority of their money on deals.”
Listen to the full episode.

 

10. Learning the Secrets of the Rich

Chris Naugle

Guest: Chris Naugle
Guest Bio:
Chris is the co-founder and CEO of FlipOut Academy, The Money School, and Money Mentor. Based in Buffalo, NY, he has 16 years of real estate investing experience with a portfolio consisting of more than 500 real estate deals including flips, wholesales, and rentals.
Best Ever Quote:
“It’s going to feel like everything around you is collapsing, falling apart, but you know what that feeling is? That is the feeling where you need to rise up, be the leader that you were meant to be — be the light in the dark for all those that follow you.” 
Listen to the full episode.

 

9. Cash Flow or Equity Gains: Which Strategy Is Best? | Actively Passive Investing Show

Actively Passive Show

Hosts: Travis Watts & Theo Hicks
What You’ll Learn: The difference between investing in cash flow vs. equity gain, and the pros and cons of each. 
Best Ever Quote: “Sometimes early on, if you’re young or you just absolutely don’t have capital, it’s going to be frugality. It’s going to be your budget. It’s going to be your choices of how you spend money that’s going to have the greatest impact.” —Travis Watts
Listen to the full episode.

 

8. Current State of the Multifamily Market | Actively Passive Investing Show

Actively Passive Show 2

Host: Travis Watts
What You’ll Learn:
The five metrics you should pay attention to when looking at new deals, whether or not it’s a good time to invest, and the migration trends that have been beginning to appear since the pandemic.
Best Ever Quote:
“Forty percent of U.S. dollars — all the U.S. currency — was printed in the last 12 months. So what do you think that means for real estate?”
Listen to the full episode.

 

7. Finding Your Next Cash Flow Monster

Adam Craig

Guest: Adam Craig
Guest Bio:
After starting a profitable online retail business right out of college, Adam Craig decided to get started in real estate investing with single-family homes. He has now been actively involved in real estate investing for nine years, including acquisition, rehab, leasing, and selling.
Best Ever Quote:
“Take the action. Just like my office building — I was scared, I had all the same fears. And then after you do it, you keep waiting for some kind of shoe to fall or some kind of hiccup, and then when it doesn’t come, you realize, ‘Wow, much easier than I thought.’ Just like everything else in life.”
Listen to the full episode.

 

6. Becoming Your Own Bank #SkillsetSunday

Chris Naugle 2

Guest: Chris Naugle
Guest Bio:
Chris is the co-founder and CEO of FlipOut Academy, The Money School, and Money Mentor. Based in Buffalo, NY, he has 16 years of real estate investing experience with a portfolio consisting of more than 500 real estate deals including flips, wholesales, and rentals.
Best Ever Quote:
“What they were talking about was something so different than anything I’d ever heard about in all my training, all my high-level years doing the advisory thing. I remember thinking to myself, ‘If I don’t know this, what else do I not know? What do the wealthy know that I don’t?’”
Listen to the full episode.

 

5. Managing Property Managers: 101

Yosef Lee

Guest: Yosef Lee
Guest Bio:
From working multiple part-time jobs to becoming a full-time civil litigation lawyer, this father of three quickly learned to manage his time when he became a multifamily investor during nights and weekends. Yosef joined a multifamily mentorship group in early 2020, and by the end of the year, his first 44-unit deal was closed.
Best Ever Quote:
“Forming a team is very important. Partnership is very important. But to do so, you’ve got to know what kind of value you can bring in. So you’ve got to reflect on yourself first, and then find out what value you can add. Then you’ve got to find the partners who can complement your skill set.”
Listen to the full episode.

 

4. Building Financial Independence | Actively Passive Investing Show

Actively Passive Show 4

Host: Travis Watts
What You’ll Learn:
How host Travis Watts got started in real estate with house hacking, the pivotal moment that kickstarted his financial freedom, and the four key steps he took to get there. 
Best Ever Quote:
“What are my goals, short-term and long-term? What is the best investment strategy that can help get me there? That was a fundamental shift in my thinking.”
Listen to the full episode.

 

3. The 15 Best Ways to Generate Passive Income | Actively Passive Investing Show

Actively Passive Show 3

Hosts: Travis Watts & Theo Hicks
What You’ll Learn:
Insights about investment opportunities, private placement investing, the concept of being a passive investor, and the effective ways to generate passive income.
Best Ever Quote:
“Really, anyone who I ever talked to that talks about getting into investing in real estate, this is really one of the best ways. It’s a really low down payment,  you’re managing a property that — you’re there, so you don’t have to travel around everywhere. And once you leave, you can rent it out and have a really high cash-on-cash return.” —Theo Hicks
Listen to the full episode.

 

2. 3 Essential Tips for Selecting Investment Markets | Best of Best Ever

Best of Best Ever

Guests: Marco Santarelli, Brent Maxwell, and Adiel Gorel
Guest Bios:
Marco, based in Orange County, CA, is the founder of Norada Real Estate Investments. Brent is a real estate investor with a passion for restoring Detroit, MI, and Adiel is the CEO of ICG, a real estate investment firm based in San Francisco, CA.
Best Ever Quote:
“You want to see job stability in a diverse economy. If you don’t see that, that may be a market that you should avoid. Because let’s face it, there are so many other markets that you can choose from, and the United States is such a large market geographically speaking, that it’s really made up of over 400 metropolitan statistical areas and probably over 600 if you include micro markets.” —Marco Santarelli 
Listen to the full episode.

 

1. $15,000 a Month Passive Income

Rachel Richards

Guest: Rachel Richards
Guest Bio:
Rachel is a former financial advisor, and now a real estate investor with a portfolio of 40 doors. At 27 years of age, she quit her job and retired with $15,000 a month in passive income.
Best Ever Quote:
“You have to be able to recognize the point at which you’ve learned enough and it is time to take action. Because you’re never going to feel 100% prepared. It’s always going to be scary to take that first step.”
Listen to the full episode.

 

Thank you for an incredible year, Best Ever listeners — here’s to even more expert insights, education, and prosperity in 2022.

Did your favorite episode make the cut? Leave a comment below and let us know!

 

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How to Effectively Network at Multifamily Meetups & Conferences

How to Effectively Network at Multifamily Meetups & Conferences

Apartment syndication is a process with many aspects to address and learning how to go through each step of the process in detail is extremely helpful. What if you had a manual containing this valuable information for anyone interested in how to increase their effectiveness and network during conferences and multifamily meetups? The value added to any investor is instantly made clear.

 

Multifamily Network Skills for Real Estate Investors

There are different approaches that can be used to break into the industry of apartment syndication. Getting a mentor or investor is a huge hurdle, so this needs to be addressed directly. The goal is to build relationships that create opportunities, add value, and lead to developing partnerships over time.

Start with the prospect of improving your positioning within any situation. Going to a conference requires a strategy. Even if you have the right attitude and outlook going into the conference room, you still need to get yourself in a position to earn the trust of the potential partner or investor. This can require practice, so you have to be prepared to do this again and again.

The issue of how and where to find investors, file legal documents, and complete other forms of paperwork are compounded by the need to properly raise funds. In addition, the structure of the partnership with the investor is important. Communication style also has an impact.

 

Preparing to Meet Investors

Prepare to meet investors, podcasters, or others who are doing things that you hope to be doing in the future. The mindset should reflect your preparations. Ask yourself how you can add value to each and every interaction. The perception of adding value goes a long way in building your first impression in the eyes of others.

Be aware that getting an investor isn’t the only goal. It’s also important to build up a kind of infrastructure of solutions, so you can be in a position to refer people to others who can help them to meet their most pressing needs. This strategy is more effective than the direct approach because you build value during each interaction and generate a reputation in circles connected to the investors.

 

Investor Network and Meetups

High-quality referrals can get you noticed: This is the strategy, in a nutshell.

Instead of angling for direct attention as you network, as so many do at these conferences, seek to connect the target person with someone else who has the skill set or network that they need. Providing value in this way does require a long-term outlook, but that’s exactly why it’s so advantageous. If you’re capable of playing the long game, this is a winning hand to play.

This strategy shows the potential investor your ability to perceive the problem and design an effective solution. Target a specific person with the skill set necessary to solve a particular real estate issue. If the issue requires a specific type of knowledge, outsource the work to someone who has a solid background in this area.

This approach is simple, effective, and requires little extra time. Think about how it can be applied at real estate conferences, meetups, or in casual settings in general. First, don’t think about setting an arbitrary goal like the number of business cards you can get passed out to people. Quantitative goals often eat up time that can be better spent in crafting valuable relationships.

Building one relationship each day might be a feasible goal for a conference that lasts several days. However, the focus should remain on quality instead of quantity. Get past the surface of the conversation and create value in any way that you can think of at the time. At the very least, communicate your understanding of the issues your clients are facing inside their business.

 

Getting Started in Apartment Syndication

Apartment syndication is often pursued after an initial period of activity. During this time, the potential partner might have done fix-and-flip deals before transitioning into multifamily units. Once they reach this stage, they might become interested in apartment syndication, but they often lack the ability to raise the necessary capital to close the deals.

Just imagine meeting someone at a conference at this stage of the process and being able to instantly produce a manual that comprehensively outlines the apartment syndication process from start to finish. Now, that makes quite an impression!

The idea is the same: Add value to the person’s life in an immediate way that addresses their major pain points.

 

Building and Maintaining Relationships

If this isn’t possible, the next best thing is to schedule a follow-up meeting or connect them with someone else who can help. Make sure to get enough information to conduct these activities while maintaining your presence in the mind of your new contact. This could be a small piece of relevant personal information, for example. Use it to remind them of how you helped them to solve a problem.

Finally, don’t be dissuaded if you meet someone at a conference who is new to making these deals. The person might control considerable resources or have a net worth that they’re interested in using as leverage. They came to the conference seeking information, so be the person to provide them with relevant answers.

 

Summary

Use this strategy to network with everyone you meet. Don’t reserve it just for people who you think are likely prospects; this can blind you to the presence of a real gem in the room. Find out how you can add value to the lives of the people you meet. Let it lead to the opportunities you seek. This can help you to find a new partner, investor, or even a friend. You never know what the results will be until you go through the process of actually doing it.

 

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3 Ways to Measure Investment Returns

3 Ways to Measure Investment Returns

To say that investors want to make a profit on their investment is a truism. Of course, investors want to make a profit! However, in the real estate world, there are several things to consider. Return on investment (ROI), capitalization rate (cap rate), and the 1%–2% rule — the list could go on. What are these different measurements and how do you use them?

 

1. ROI

In simple terms, return on investment (ROI) measures the percentage of return over a certain period of time. The formula includes debt service and the amount of money used to purchase the property instead of the entire property value.

This formula divides the annual cash generated by your property after you account for your operating expenses and the mortgage payment by the total amount of money you invested. It looks like this:

ROI = Annual Return/Total Investment

For example, say you are investing in a property of $100,000 that generates $10,000 before debt service. With a down payment of 25%, your total investment would be $25,000. The loan is $75,000 over 15 years at 3.75% for a monthly payment of $545.42 (principal and interest, or P&I).

$3,454.96/$25,000 = 0.13819 or 13.819%

A rental property with a higher ROI is typically the best investment. By using different down payment amounts, you will see the ROI change and you can decide how best to leverage your investment.

Investors focused on maximizing ROI will want to use as little money down as possible despite the lower annual return. That said, I typically advise investors to put some skin in the game by staking out good equity in the event that their market is seeing appreciation rise year over year. Higher down payments also generally receive more favorable rates from the banks.

 

2. Cap Rate

The cap rate is a formula that divides the net operating income (NOI) generated by the property before the debt service (P&I) by the property value or its asking price. The formula looks like this:

Cap Rate = NOI/Property Value

Debt for the mortgage payment should be excluded from the cap rate calculation because investors leverage property differently.

For example, say that you’re looking at a property with an annual gross income of $24,000 per year. If your normal operating expenses are 50% of your annual gross income, the NOI will be $12,000 per year. If the property has an asking price of $240,000, the projected cap rate will be 5%.

$12,000/$240,000 = 0.05 or  5%

Cap rates are going to be different depending on the market you are looking to invest in. For example, Nashville, Tennessee is going to be different than Stowe, Vermont. Generally, the higher the cap rate, the better the investment since the potential return is going to be higher, all things being equal.

That said, if there is a property with a cap rate outside the norm for the market, take some extra time and dig into the due diligence. What is it that sets that property apart? While it may not always be an indicator of a problem property, it does merit some more investigation. You may have found a diamond in the rough — or you may have found a dumpster fire.

It is wise to continually evaluate your cap rate. If the property values drop, if rents get depressed, etc., then you need to evaluate what is affecting your cap rate and your investment.

 

3. The 1%–2% Rule

My personal favorite evaluation of real estate investment is called the 1% or 2% rule. This means that after all expenses are paid, you will net 1% or 2% of the purchase price of the property each month. This means that if you buy a $100,000 property, you net $1,000 a month after you have paid all the expenses. However, with real estate so hot right now, I have moved to a modified 1% rule.

The Modified Rule

If an investor buys a property for $125,000 and is able to rent that property for $1,250 a month, that is still a good return on the investment. Not only is the tenant paying the note and the utilities, hopefully, but your property is also appreciating. This rule of thumb requires market research of rental rates to see what is possible. However, if you know what the rental rates are, then the calculation is easier than the other two.

 

Final Thoughts

Regardless of the formula you use to evaluate a property’s potential, these formulas are going to be tossed around the investment world. These are good things to know so that you can speak with some understanding with possible buyers and sellers.

 

About the Author:

Brian T. Boyd, JD, LLM, www.BoydLegal.co

 

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Is the Multifamily Market Softening?

How Software Can Improve Your Real Estate Investing Efficiency

Like many successful sales professionals, Matt Whitermore’s career has developed to meet various needs that he has identified over the years. While he was in college, he worked as a real estate agent connecting renters with property managers and landlords. Today, he is an experienced real estate investor with a wealth of hands-on commercial real estate experience. More than that, he is a consultant for Investor Management Services, a firm that specializes in selling software solutions to syndicators and investment firms.

Through his connections in college with landlords and property managers, he was able to shift gears from being a leasing agent to focusing on selling investment properties. After gaining extensive experience in this space, he jumped into the analytics side of the business to learn the ropes from a different angle. In addition to making the transition from sales to analytics to technology as a means of rounding out his knowledge, Matt Whitermore wanted the flexibility to become a seasoned investor as well. Today, he is looking at investing in a multifamily property in Albany with his fiancee.

The majority of Matt’s professional attention is focused on selling Investor Management Services’ solutions. The solutions offer a variety of resources that ultimately promote investor efficiency. The cost ranges between $1,000 to $5,000 per month depending on the features. These features include everything from an investor portal to a CRM. Subscribers can do everything from accessing K-1s to monitoring their portfolio’s performance.

The solution stands apart from other products on the market with its back-office automation features. For example, it enables different investors in a syndication to monitor their distributions in real time. These calculations are made automatically, so the solution enhances efficiency and ensures accuracy. This unique aspect of the software has been developed based on the review of thousands of operating agreements. Because of this, it is a robust tool that is practical in most syndication structures. It is fully functioning today.

Matt Whitermore describes the main objection that potential customers have with the Investor Management Services solution as cost. Often, this objection is with newer investors who are focused on running a lean ship. However, Matt has noticed that the prevalence of this objection has decreased in recent years as investment managers have been eager to leverage technology.

Matt has been involved with Investor Management Services for approximately 18 months. Since he joined the company, he has seen the solution evolve considerably. For example, some early clients provided feedback on the overall layout of the solution. Investor Management Services took that feedback to heart to make thoughtful updates. Today, it has more than 500 clients, and the solution has a great feedback system. This enables the developer to progressively improve the solution and to add features that its clients ask for.

Most recently, Investor Management Services has focused on evolving the program to meet the more complex needs of funds and larger investment firms. For example, some institutional clients often have a layer of syndicated equity that is not present with other clients. In some cases, investment groups also have an option for investors to exit their position. These are only a few of the situations that add to the complexity of needs that Investor Management Services’ larger clients may have.

While the solution is relevant to large commercial real estate groups, it is equally beneficial to small or one-person operations. Matt Whitermore states that many of the one-person entities that he works with initially are using email and Excel as their primary technologies. With this in mind, the main objection that Matt faces relates to the need for a more advanced product. Because the software solution is scalable from the smallest investor to institutional investors, it is a solution that can grow with a client’s unique needs.

For a smaller client, one person often wears many hats in the operation. The solution promotes investing efficiency by migrating asset management, distributions, and other factors to a single platform. This saves time and energy. More than that, it becomes increasingly important as that small investor grows his or her portfolio.

For both one-man shops and smaller syndications, the solution has a range of other beneficial tools. The ability to portray a professional, established image is essential when these entities are trying to gain investor interest and achieve other goals. The solution enables the easy production of professional investor statements and other documents that have the entity’s logo on them.

When Matt Whitermore talks about the progression of his career, he discusses how important his previous experience with investment sales and analytics has been to his current role. He understands customers’ needs and expectations. At the same time, he understands what his solution offers and how it can help clients achieve their goals. This enables him to bridge the gap and to truly help his clients find a solution that offers true benefits to them.

While many industries have wholeheartedly embraced technology, real estate has been a hold-out in this area. However, Matt states that true investing efficiency is rooted in identifying opportunities that technology offers. This extends far beyond what Excel can do. For example, the Investor Management Services solution has automated functions that are crucial for a waterfall structure and other purposes. These functions are simply not feasible through Excel and they offer true value to investors. Regardless of the size of the commercial real estate investor’s portfolio, there may be ample room to leverage technology more robustly.

 

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Meet Best Ever Conference Co-founder Ben Lapidus

Meet Best Ever Conference Co-founder Ben Lapidus

We sat down with Ben Lapidus, co-founder and host of the Best Ever Conference, to find out what he’s looking forward to most at BEC2022.

First, a little about Ben: He is the Chief Financial Officer for Spartan Investment Group LLC, where he has applied his finance and business development skills to construct a portfolio of over $300M assets under management from scratch, build the corporate finance backbone for the organization, and organize over $100M of debt capital from the firm.

In addition to completing over 50 real estate transactions at and prior to Spartan, Ben is the managing partner of Indigo Ownerships LLC. Before Spartan, Ben founded and sold a multimillion-dollar study abroad company and worked with several start-ups through IPO or acquisition. He graduated from Rutgers University with dual degrees in finance and economics, where he founded the Rutgers Entrepreneurial Society.

We asked Ben some questions about what to expect at this year’s conference — here’s what he had to say:

 

What are you most excited about for the BEC2022?

“What I’m most excited about is the opportunity that has presented itself in the operating environment for commercial real estate investors. Since this conference began in 2016, we’ve been talking about a market correction from which syndicators can execute a scaling strategy. For all of its destruction, the silver lining of the global health crisis is that it has accelerated or formed new trends that will allow for new creative investing and operating strategies.

“To take advantage of this for BEC2022, we are marrying all of our learnings from the past five years and compounding them with new partnerships. We are incorporating the components of virtual programming that worked in 2021, the networking that worked in 2020, the location that worked in 2019, and the late-night networking that worked in 2018. We have our biggest production budget yet to make sure it’s high quality, peak energy, and massive impact.”

 

Tell us about the experience. What can attendees expect?

“From the moment you register, you’re going to feel like you’re coming home. This is not a conference for beginner investors or tire kickers. Ninety-six percent of our attendees have transacted or invested in one or more commercial real estate deals in the last six months. There is no other conference with this kind of concentration of high-quality networking, and those who have attended before know that, so they treat every new handshake as an opportunity to make a new friend or partner. It’s an incredibly inviting atmosphere.

“When you first enter the main stage, you’ll be drinking from a fire hose. We like to start off the conference with back-to-back economic updates from those with access to massive datasets who are fantastic presenters. We’ll keep you well-fed and intellectually stimulated throughout the day so that you have the energy to carry the relationship-building into the evening where the real connections are made.

“You won’t find yourself avoiding the gaze of our sponsor tables as we’ve filtered them in advance and they’re likely to be highly relevant to your business or investing needs. Two years ago, we had a deal funded by a lender two business days after the connection was made at the Best Ever Conference.

“Finally, this will all take place at the newly built Gaylord Rockies in the peak winter season, which means you’ll have access to indoor water parks and some of the best skiing in the world.”

 

In your opinion, what are the top three reasons to attend the Best Ever Conference?

“Learn. Network. Invest. People come to the conference attracted to the speakers and subjects presented on stage, and this year will be the best yet. Our lineup is next level and with such a volatile year, there are endless subject matters to touch on to support the professional investor navigating the year ahead.

“But the true value that our audience walks away with is the networking, which ultimately leads to a new investment of dollars, time, or energy. Countless companies have been formed out of Best Ever connections, and hundreds of millions of dollars in capital have been placed in our community’s deals.

“And of course, we can’t forget the partying. If you are active in the syndication space, you’ve likely corresponded with dozens of folks who you’ve never met in person; the Best Ever Conference is the place to finally connect in person over a beer — or three.”

 

Any other exciting tips or best practices for attendees?

“Don’t set out to peddle an investment offering at the Best Ever Conference. There are dedicated spaces where that’s appropriate, and you can reach out to the Best Ever team if you’d like to take advantage of that. Rather, set out to make a few deep, high-quality relationships without an endpoint in mind.

“The deeper you can make a single relationship, the further it will carry your business or portfolio to success. Take the blinders off your periphery and identify how adding value to someone else’s life could creatively compound an outcome in yours. The more you learn about someone under a non-transactional premise, the deeper the reward will ultimately be.”

 

How will this year be better than ever?

“This year, we are leaning into the mantra, ‘collaboration beats competition,’ and partnering with several other communities outside of Best Ever to create an audience composition that will surely be the ‘best ever.’

“In partnering with investment groups, we are increasing the amount of available capital searching for real estate syndications. By partnering with other sponsor-facing organizations, we are increasing the exposure of high-quality commercial real estate sponsors to the passive investor community.

“Our audience might show up for the marquee content, but they leave pointing to the networking opportunities as the most valuable component of the experience. By investing in getting the right people in the room, we know more deals will get done, more capital will be placed, and more lifelong partnerships will form.”

 

How can attendees plan to make the most out of the Best Ever Conference?

“Set an intention — one relationship or one nugget of wisdom that you’d like to walk away from the conference with.”

To learn more or purchase your BEC2022 ticket, visit us at besteverconference.com.

 

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How Mini Masterminds Set Investors Up for Success

How Mini Masterminds Set Investors Up for Success

In some of our previous blog posts about the Best Ever Conference, we’ve mentioned something called Mini Masterminds. These educational small-group sessions are a favorite among Best Ever Conference attendees, but how much do you actually know about them? Here, we’ve compiled everything you need to know about the Mini Masterminds experience and how it may be the key to reaching your business goals.

 

What Are Mini Masterminds?

Every year The Best Ever Conference welcomes the best-in-class real estate professionals who are looking to make an impact on their business. BEC2022 attendees have the exclusive opportunity to join our Mini Mastermind program once they register for the conference. These sessions are made up of small groups with 6–8 peers who meet virtually to connect prior to the conference. 

In these sessions, attendees will begin to learn from one another, share best practices, and continue to build relationships in an intimate setting. The groups meet monthly to discuss various real estate topics such as:

  • Business goals
  • Identifying opportunities
  • Marketing to the right audience
  • Networking and building connections
  • Preferred asset types
  • Strengths and weaknesses
  • Vulnerabilities and risk mitigation 

 

Who You’ll Meet

Mini Mastermind members enjoy the immediate benefit of networking with other BEC attendees, generating ideas to build their businesses, and receiving feedback and support. The sessions provide the rare opportunity to connect with other professionals in a way that fosters education and growth. What do you want to learn? Who do you want to meet? It’s a group that you will continue to grow with leading up to the conference.

Below are testimonials from just a few Mini Masterminds participants:

 

Andrea Weule of AC Investment Group

Andrea said, “I love being able to meet with a group of investors with different backgrounds from across the country. I’ve gained new insight into our investments. It’s great to be able to contribute to others’ success and pick their brains for ideas as well. Looking forward to continuing our relationships for years to come.”

Frank Rush of East West Property Management 

After completing his first meetup, Frank said,It seemed like a diverse group of entrepreneurs, and I am excited about the upcoming sessions and to eventually meet in person at the conference. I am sure there will be some great benefits that come from it all with the possibility of working directly with a member of the group on a future deal in some shape or form!”

 

Kris Kohlstedt

“The Mastermind has been a great networking tool allowing me to build deeper relationships than what I’d get in person in one meeting,” Kris said of his experience. “I get to ask questions and share in a group that I feel can provide great experience and knowledge to my obstacles in business.”

 

How You Can Get Involved

The Mini Mastermind program is included with the purchase of each BEC2022 ticket, and once you sign up, you will have the opportunity to start connecting with other attendees immediately. 

Participants who sign up now will have the opportunity to begin connecting early in the year and to continue to build these relationships well before finally meeting in person at the conference. The BEC team will coordinate your Mini Mastermind group with you and send out the invitation details.

Purchase your ticket to the Best Ever Conference today to see for yourself what you can gain from Mini Masterminds.

 

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The First Timer’s Guide to the Best Ever Conference

The First Timer’s Guide to the Best Ever Conference

With a name like “Best Ever,” it’s easy to get excited, and maybe even a little intimidated, about attending your first Best Ever Conference. You might be wondering what makes it the best ever, and how you can get the most out of this conference. And we want to help!

That’s why we’ve developed our First Timer’s Guide for your first Best Ever Conference to ease your mind and help you get the most value out of your time.

 

How the Best Ever Conference Is Designed

The Best Ever Conference, known throughout the commercial real estate industry as the BEC2022, is designed specifically for commercial real estate professionals to focus on relationships and education that will directly impact growth for both you and your portfolio.

 

Our Speakers

Our speaker selection process isn’t about who we know, it’s about what YOU want to know!

Our team listens to and actively engages with commercial real estate investors like you all year round to ensure we stay at the forefront of the commercial real estate investing industry, choosing speakers with expertise and topics that you want to learn about most.

Past speakers have included industry giants such as:

And more importantly, past topics have included:

  • How to Scale Your Syndication Business
  • Lessons in Becoming a Better Leader
  • How to Build a Powerhouse Investing Team, and
  • Multiplying Your Real Estate Portfolio

 

Here are some tips for getting the most out of your time at the BEC2022:

 

Before the Conference

In the weeks leading up to the conference, take some time to create a game plan for your experience. Consider who you want to meet, which services and vendors you might be interested in learning more about, and what topics and insight will be most valuable to you and your goals.

 

Set Your Speaker Session Lineup

First, we encourage you to check out the BEC2022 speaker lineup on our website at besteverconference.com. We will update the conference website regularly as new speakers are confirmed.

Research each of the BEC2022 speakers before the conference. Get to know who they are, what they bring to your table, and the type of information that will be presented. Consider how this information can help you grow your business and portfolio.

It is also a good idea to make note of any questions that come up during your research that you would like to ask the presenters.

Now, break the different speaker sessions into three categories to set your custom speaker session schedule:

  • Must attend
  • Would like to attend
  • Don’t need to attend

 

Shortlist Your Exhibitor Interests

Another good way to make the most of your time at your first Best Ever Conference is to take a look at the exhibitors that will be present. Which exhibitors do you want to learn more about?

Next, go ahead and make a shortlist of the exhibitors you’re most interested in and keep this in your back pocket to make the most of your downtime between sessions at the conference.

 

At the Conference

Balance Your Time

As with most conferences, the top three things you’ll do at the BEC are learn from speakers, network with speakers and other attendees, and browse the exhibitor booths. To get the most out of the Best Ever Conference, you’ll want to strike a balance for the way you spend your time.

Set your speaker schedule into your calendar with locations and reminders so you’re never late to your “must attend” speaker sessions.

During your “don’t need to attend” sessions, try to make your rounds to the exhibitors based on your preparations. Spread these visits out to allow for plenty of time to take care of your basic needs and stay comfortable, fresh, and energized throughout the conference.

And last but certainly not least, plan to spend the rest of your time networking with speakers and other conference attendees.

Most likely, you’ll have questions for the “must attend” speakers — either prepared questions from your pre-conference recon or questions that came up during the presentation. Here is an insider tip: Don’t try to talk to the speaker immediately after their presentation. That’s when everyone is going to want to talk to them and you’ll spend a lot of time waiting in line or look like a weirdo running up to them to get to the front of the line. Instead, talk to them between sessions, at private events, and in the additional group events and parties that will take place at night.

All Work and No Play — Not Us!

Lastly, we’re excited to announce that the BEC2022 will be held at the Gaylord Rockies Resort in Denver, Colorado.

Many BEC attendees use the conference as an opportunity to vacation in Colorado either before or after the conference — skiing and snowboarding are the most popular activities. If this is the case for you, don’t forget to pack your snowboard, skiing, or sledding gear!

 

After the Conference

The value from the BEC doesn’t stop at the end of the conference, it only continues. The relationships you will develop and the knowledge that you take away can be implemented immediately and last a lifetime.

If you haven’t already, check out www.besteverconference.com to learn more about the Best Ever Conference and reserve your ticket today. Check back often for updates, and we’ll see you at the Best Ever Conference in February 2022!

 

 

 

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What Your Financial Advisor Doesn’t Want You to Know

Financial advisors have historically played an important role in the financial planning industry. In the United States alone, there are hundreds of thousands of financial planners and advisors, each with varying specializations, experience, and portfolio preferences.

Many people like to work with financial advisors because, at least on the surface, these individuals seem to know quite a bit about finance. They offer you advice, help you pick assets to invest in, and answer the many questions you might have.

Unfortunately, however, many financial advisors will recommend investments that are in their best interests rather than your best interests. They may even discourage you from investing in lucrative, sound investments such as private placements because investing in such vehicles would yield them zero commissions.

Understanding how your financial advisor gets paid can help you recognize any biases that may be at play. If you met your financial advisor through a life insurance agency, for example, there is no doubt that they will sway you into investing in life insurance. This is not to say that all life insurance policies are necessarily bad, rather, that the recommendation was simply made with a strong degree of self-interest.

These direct conflicts of interest can create problems for unknowing investors. Below, we’ll discuss some of the things financial advisors don’t want you to know and explain why lucrative private placement opportunities are often overlooked and avoided.

 

Follow the Money

In the world of finance, nothing is free. Even if someone is offering you free information or a free consultation, they are likely only doing so to potentially sell you a product or service someday in the future. If you are working with a financial advisor, be sure to ask them how they get paid.

If you aren’t inclined to ask, I’ll just tell you. Financial advisors get paid in many different ways. Some get paid hourly, others get paid by commission, and some even get paid for the specific products they sell. They still get paid, even if you don’t. Think about that. If someone’s livelihood depends on their ability to recommend one product over an alternative, it’s pretty easy to guess what they are most likely to recommend. If their interests aren’t aligned with yours, then self-interest creeps in.

We’re certainly not suggesting that traditional financial advisors are malicious in any way, however, when interests are not aligned, things tend to go awry. This misalignment of interests is an industry-wide problem and is not something that should readily be dismissed or overlooked.

 

Yours or Mine

It’s obvious that many financial advisors, particularly those that work for a specific company within some facet of the financial industry can be easily pressured to push specific financial products even when it’s not the best investment for you.

But what many people don’t realize is that there may also be active forces preventing them from making specific recommendations. For example, investment vehicles that are often kept out of sight and out of mind are private placements. These assets can offer extraordinary returns for you, so what’s the problem? The problem is financial advisors make no commissions if you invest in private placements, so where is their incentive to encourage you to invest in these types of investments?

In fact, many financial advisors will actively speak out against private placement investments without ever clearly stating why. They might say they prefer more traditional ways to access global equity markets or blame illiquidity, but those reasons alone are insufficient to dissuade you from investing in some of the most lucrative and consistent investments available.

What they aren’t telling you is the main reason they make their specific recommendations: it is good for them, personally.

 

Financial Illiteracy

When you ask a financial advisor, “Why do you recommend this specific investment?” they’ll probably say something about expected returns, or diversification, or various other factors that can make a prospective investment appealing.

All of these things may be true. After all, they are well-aware of the game that they need to meet your baseline expectations if they want to continue working as your advisor into the future. However, more times than not, financial advisors are financially illiterate. Let me explain.

They may know their products because it’s their job to know, and it’s how they get paid. But how many financial advisors are well-versed in real estate investing? Not REITs, but actually owning real estate directly. How many know about private equity, real estate syndications, cryptocurrencies, or running a business? Not many.

It is still okay to listen to your financial advisor and they probably have some decent advice. But, at the end of the day, take the advice with a grain of salt, because you now know that they have underlying self-interests. Know that you are ultimately the one who has control over your portfolio and will be responsible for the outcome of your investing decisions. You will always be free to move your capital elsewhere if your advisor prohibits you from exploring a particular asset class you are interested in. Take control, your future depends on it.

Here are some additional insights from actual financial experts.

 

Financial Advisors Fear Losing Control

Most financial advisors have worked hard to be where they are and, like anyone, they do not want to be made obsolete. However, you can find profitable investment opportunities on your own. You can make investments and generate sizable returns without the need to pay someone a commission every time you want to make a trade or move funds.

Financial advisors are often hesitant to make that clear – that is, that they fear the veil will be lifted and that their profit-generating services will no longer be needed. The clout they’ve worked hard to establish can easily go away. You can take control of your own future and do a good job at it.

These financial advisors may be experienced, but they don’t know anything you can’t learn (rather quickly) on your own. For instance, if you find a private placement, such as a real estate syndication, that on a risk-adjusted basis appears to be an incredible opportunity, educate yourself and take action. Invest as the ultra-wealthy have for decades.

While financial advisors are not going away any time soon, their roles will continue to change. Today, the consumer investor are the ones who rightly have the power to control their own destiny. If this means investing in private placements or other alternative wealth-building vehicles, now more than ever, you are empowered to do it.

 

About the Author

Seth Bradley is a real estate entrepreneur and expert at creating passive income while still working as a highly paid professional. He’s the managing partner of Law Capital Partners, a private equity firm focused on multifamily and opportunistic acquisitions, and the host of the Passive Income Attorney Podcast. Get started building a future full of freedom by snagging The Billables to Abundance Bible at www.escapethebillable.com.

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Top Takeaways From Every BEC2021 Day 2 Speaker

The Top 10 Things to Ask Before Investing

Ryan Gibson, Spartan Investment Group

How to find great operators

  • Online:(506 investor group, forms D)
  • Networking
  • Funds: fund of funds
  • Syndication groups: meetups groups
  • Projects: something you see in your area because most are syndicated
  • Referrals: from other operators

Your interview with the operator

  • Ask open ended questions: When interviewing operators, see if they are interested in what you have to say
  • Write down notes
  • Keep a log of operator Q&A
  • Portfolio projects
  • Referrals
  • Property location

Are they an operator or syndicator? Determine what role the company plays. How are they compensated, how are they aligned with you? Are they aligned with the success of the project?

Tell me about a deal gone bad? This is Ryan’s favorite question. Having no deals that have gone bad indicates low experience or a lie while having deals that have gone bad helps you judge the grit of the syndicator. 

What is their mission, vision, and values? Does their mission, vision, values, align with yours? Ask them to give an example of how they’ve used their values recently.

Who is on the team? Are they a one-man band or do they have a deep bench? Are they vertically integrated? Are they using the fees they charge to hire a great team or to pay themselves?

What is their core business model? Selling education? Working elsewhere? Focused on deals? Gurus?

What is your investor communication plan? Ask for last three communications to get a better understanding of their communication style. Is the plan in writing? Can you verify property performance against projections?

What is the performance of their portfolio?

  • Historical performance (proforma vs actual): comparison is more important than absolute return since it gives you the right context
  • Was it project level IRR or investor IRR: total project may look better than investor level
  • Consistent metrics: Ryan likes to use equity multiple and how long it took gives true time tested return, IRR might be misleading or not the best metric

Obtain reference and conduct a background check

  • Don’t ask for a reference, find your own, because no one gives bad references
  • Find others that have invested in the company
  • BBB, Google reviews, 506 Group, etc. – search for the company name and name of the principles

Insurance

  • Does SEC attorney provide E&O insurance to cover for lawsuits
  • What exclusions are included on their title insurance?
  • Is there property insurance at least from an A rated Carrier?

Decision to exit

  • What would make an operator exit early? What is their justification for selling?
  • Have they sold early in the past? How many time and, how did the actual returns compare to projections?
  • How do they brief investors?

Market-Driven Strategies for Investment and Operations

Greg Willett, Real Page Inc.

Where we are at right now

  • We suffered sizable job losses which have impacted real estate market. However, occupancy rates are at healthy level and we’ve experienced rent growth in some places. Overall, there is huge variability in results in one part of the country and product niche to another – the highest I have ever seen.
  • Best rent growth is about 8% – Inland Empire, Sacramento, Virginia Beach, Memphis, Midwest
  • Gateway metros are really struggling – Bay area and metro New York: rents cut 15% to 20%

Three Investing Strategies

  1. Throttle up your Sun Belt assets. Simply getting in front of renter demand can help fuel performance successReally solid demand results across state of Texas, Carolinas, Tennessee, Atlanta, Phoenix, and Denver. Be careful in Florida markets, because there are a lot of tourism centers. Places like Tampa, Jacksonville are doing well. Don’t rule out the Midwest. Demand is not as strong as it is in the Sunbelt but low supply will drive demand.
  2. Don’t bank on a flight-to-quality. Rent discounts at top-tier product are not delivering move-up renters to the extent experienced during previous economic stumbles: Renters have had the tendency to move down and downgrade to class B and C to save money.
  3. Explore a low capital value add strategy. Lower price points are boosting occupancy and supporting resident retention at lease expiration: Focus on maintenance issues and appearance but hold off on bells and whistles to keep property more affordable for bigger group of renters. Turn around on a vacant unit is faster for lower quality upgrade and leaves money on table for a future buyer.

Three Operational Strategies

  1. It’s the right time to adjust the recipe for your operational “secret sauce.” Measure what’s working now: You don’t want to be doing what worked well in the past, you want to be doing what works well now. Pay attention to what young adults are doing and how it impacts the types of units that are in demand. Then determine how this impacts your marketing needs, because certain strategies are better and worse. The bottom line is to measure everything to see what is different now compared to two years ago
  2. Focus on renewals. Resident retention at initial lease expiration has gotten harder to achieve in some locations and product segments, so make it a priority to hang onto today’s best residents: There is large variability in renewal rates across the country. But the goal is to hang on to the good residents who are making payments. Taking a hit on rents on a renewal lease might be a good thing. Pay attention to the type of units with lower and higher renewal rates and ask yourself, why aren’t they renewing? Pay attention to the non-pricing factors, like maintenance and customer service.
  3. Take back control of your brand. Know what you are selling and who the target for your product and message is in this marketplace: The overall message should focus on service, appearance, ease of living a the property, the location – don’t focus on price.

The Devastating Impact of Climate Change on Your Real Estate Investments in the Next 10 Years

Neal Bawa, Grocapitus

Impact of climate change in 2020 and questions to think about

  • 2020 had $95B in damage from climate disasters
  • What will happen to your investments when taxes increase to pay for massive sea walls?
  • Where will the money come from to fix Texas’s power grid?
  • In California, the six greatest wildfires happened in 2020, and will double in five years. How will this impact California cap rates?
  • Cities with sea level rise exposure are already priced at a 7% discount

Many climate risks may become uninsurable: Insurance companies are starting to buy climate data from Moody’s and creating city-by-city insurance plans.

Climate data is being used to downgrade entire cities: When a city is downgraded, their ability to borrow goes down, making it harder to fund re-construction projects. As a result, people move out, and it continues to spiral.

The end of the 30-year mortgage: Full cities may change to 20 year or 15 year mortgages options

The cities with no climate risk will be the next gold rush.

Overall, the people who set ratings, cap rates, insurance rates, mortgage terms, as well as cities are taking climate risk into account, and so should you.

The State of Fundraising in 2021: Key Risk Areas for Capital Raisers in Today’s Regulatory Environment

H. Gregory Baker, Lowenstein Sandler LLP

Capital raising regulations have been relaxed over the past presidential administrations, but that is changing.

Section 5 of Securities Act: One of the most important rules in the federals securities laws. In 2020, 1/3rd of all SEC enforcement cases concerned offering of securities. The SEC does not need to prove that you intended to violate the rule: they just need to show that you violated the rule,

A security must be registered or have an exemption. The common exemptions are:

  • section 4(a)(2) of securities act, private placement exemption
  • Rule 506(b) of Reg D, private placement safe harbor
  • Rule 506(c) of Reg D, general solicitation
  • Reg. Crowdfunding, 
  • Intrastate offerings

The consequences for violating Section 5 can be severe. The investors can get their money back from you. The SEC can fine you. And your reputation will be harmed.

How people or companies get tripped up on Section 5

  • Relying on 506(c) but failing to ensure that your investors are accredited
  • Relying on 506(b) but you advertise
  • Relying on intrastate exemption but selling to investors in multiple states

Expect to see more of these cases under new leadership. Gregory’s advice is to work with your attorney to ensure you follow rules, and document how you followed rules.

How to Scale Your Syndication Business

Michael Blank, Nighthawk Equity

Who should consider building a thought leadership platform? Anyone raising money for real estate. Anyone who has already raised some money 1 to 1. Anyone who is ready to scale capital raising ability. Anyone who wants to raise millions of dollars in a few days.

What will a thought leadership platform achieve? Automatically attracts the right investor, raise more money so you can do bigger deals, create more revenue, invest revenue back into market to do more deals, effortlessly scale and serve your investors

Three pillars of a thought leadership platform

Attract:

Identify your ideal avatar: in order to attract the “right” audience who is interested in what you have to offer, you have to identify your ideal potential investor

Capture leads: when you attract the attention of your ideal avatar you need to know who they are. The best way to do that is to offer them a “Lead Magnet” in return for their email addresses

Develop:

Serve and lead: Serve your audience and earn their trust with valuable free content that educates them about investing in syndications. Serving = content = trust

Lead them on their investing journey with continuous content

Scale: Make a compelling offer that generates revenue and reinvest a portion of your revenue to attract more leads

How to automatically attract more passive investors

Create a lead magnet: When someone downloads a lead magnet, they get tagged in system as “downloaded”, and put on email list to receive educational emails

Join the club: After downloading the lead magnet, they are invited to fill out a detailed questionnaire, and get tagged as “joined”.

Schedule a call: Included is the option to schedule a call after filling out the questionnaire. After the call, they get tagged as “deal ready” and are now prepared to receive upcoming opportunities

Follow up automation: Automatically send follow-up emails to people tagged with “downloaded” and “joined” until they move forward in the process and set up a phone call or unsubscribe.

Multiplying Your Real Estate Portfolio

Deborah Razo, Women’s Real Estate Network

The secret success system blueprint: find success habits, cultivate habits through repetition, achieve mastery. This is a system that deals with growing systems and expanding your mindset.

The success cycle: potential, action, results, belief. The more we believe in our potential, the more action we will take and the more results we will achieve. The more results we achieve, the more we believe in our potential.

How to cultivate resourcefulness: Write down a problem and come up with three effective, intelligent, and viable solutions. Because one choice is no choice. Two choices is a dilemma. But three options and you are in the space of choices

Accelerate Your Returns Through Construction Management

Ashley Wilson, Bar Down Investments

A team member with construction knowledge is critical to maximizing the investment’s returns

Get creative: There is more than one way to solve a problem, so your focus and end goal should drive your solutions

Balance between evaluation & equity: Your focus should be on increasing equity, not the evaluation.

Time is money: Figuring out ways to decrease the time construction takes will maximize your return on investment

Building a Social Media Content Engine

David Toupin, Obsidian Capital & Real Estate Lab

Social media = attention = influence = income

Where to start

  • Focus on 1-3 platforms at first to get traction
  • Create Facebook, Instagram, and YouTube account to start, or pick one or two that you like and want to go with
  • Block out one day every week to record a few hours of content to stock pile content and post throughout the week
  • Block out 2 hours every day to post and interact with followers: respond to every comment and direct message 

How to create a social media content engine

Create lots of content one or two times per month: Either by yourself of hire a videographer for one or two sessions each month, and upload all the content to a DropBox folder

Hire an editor to create a content database: Use month’s worth of content to create longer videos, shorter videos, and pictures with caption. The goal is to create at least 10 social media posts per one hour of video content

Hire a content manager: The content manager will use the content database to compile one month’s worth of social media posts.

Determine what the focus of your content is going to be: All posts should be directed towards achieving your end goal

You approve the posts: Once the content manager has compiled a month’s worth of posts, you review and approve

Schedule the posts: After you’ve approved the posts, the content manger schedules them throughout the next month.

Rinse and repeat

Top social media tips

  • The number one secret to social media is consistency
  • The number two secret is focusing your niche
  • Be yourself, people will recognize if you’re not being real
  • Interact with your audience
  • Tell your story
  • You will automatically attract people that like the same things you like. That’s how the algorithm works
  • You do not need a fancy camera or equipment. Any modern cell phone is sufficient
  • Don’t worry about your current audience. Create your desired audience over time – either create a new account or start on your personal account
  • Don’t worry about what people might think about you. Have fund with it and be yourself
  • Comment on posts of other big influencers

UTH Workforce Housing: Pairing Private Capital with New Construction Workforce Housing

Scott Choppin, Urban Pacific group of Companies

What is workforce housing?

  • Built-to-rent, non-standard MF in historical terms – SF and attached townhome rental product
  • Below market rate rents
  • Housing for working families at 80% to 120% of median income: service sector/blue collar, large multigenerational family groups with 4-7 people
  • Housing for professional “location agnostic” roommate groups working remotely: location agnostic and use extra bedroom for remote work
  • Locations: urbanized suburbs of most major cities, close to amenities but not central business district

Why chose workforce housing as an investment?

Recession resilient

  • Deeply undersupplied
  • Multi-earner households (families or roommates), 
  • Multi-generational households (reduces poverty rates)
  • Work-from-home is accelerating absorption and rental rates

Sticky, long-term tenant base

  • Strong social networks: kids in school, family nearby
  • Economic sharing lifestyle: share income and expenses across the group
  • Naturally affordable rents without government subsidies

What is urban townhouse (UBH)? Designed and built-to-rent but lives like a house

  • Five bed/four bath, 1750 sqft.
  • Three-story townhouse
  • Two-car direct access private garage
  • Multigenerational and WFH space ground floor bedroom/bath
  • Located in existing urbanized suburban neighborhoods where families and work from home roommates want to live
  • Rent on average $3500 to $4000 per month
    • Value ratio $2 to $2.28 psf. (average 50% below market)
    • Per bedroom rent $700 per (40% to 50% below market)

Extended Stay Model – A Hidden Secret in the Hospitality Industry

Jennifer Maldonado, The Art of Raising Capital Program

Profitability and resiliency are the foundations to long-term profits.

During the pandemic, the extended stay hotel model worked well for first responders and essential workers.

Economy Extend Stay Hotels performed the best during the pandemic.

  • Top tier: occupancy is down 29.7% and average daily rates (ADR) are down 17%
  • Middle tier: occupancy is down 14.8% and ADR is down 13%
  • Economy tier: occupancy is down 3.1% and ADR is down 3.1%

Don’t chase the herd! Chase the returns!

Ash Patel, Rivershore Capital

By searching the MLS five times every day, Ash was able to know about properties before anyone else, even the brokers.

Don’t make excuses when things get hard.

As a commercial real estate landlord, your only job is to make sure that you tenant is successful: treat your tenant like a partner and they will take better care of your property

Success follows selfless acts for others.

Look for unconventional ways to by real estate.

Bringing Property Management In-House: Why, When, and How

Frank Roessler, Ashcroft Capital

Why bring property management in-house

To improve performance: The only real reason you to it. If you can’t do it better, don’t do it at all

Alignment of incentives: Move away from issues of fee-based management. No other clients of higher priority.

Improve communication: Faster awareness of property vitals. More involvement in property operations.

When to bring property management in-house

Pros and cons of bringing property management in-house day 1

  • Pros: 
    • zero disruption
    • small overhead: won’t have to build out an entire organization, which is expensive and time consuming 
    • reduced upfront costs: offices and employee benefits
  • Cons: 
    • no best practices: you will be learning on the job at the detriment of the first few properties
    • starting at a loss: one property will not cover cost of managing the property, won’t breakeven until you have a couple thousand units 
    • no industry top talent: don’t have a track record to attract best of the best

Pros and cons of bringing property management in-house when you have scale

  • Pros
    • Ability to attract top talent: people were eager to jump ship and provide a business plan
    • Starting with a profit margin: breakeven or make a little bit of money
    • Best practices: because you have the top talent
  • Cons
    • Major disruption: terminating contracts, providing notice, transition process, a million moving parts
    • Significant startup costs: hiring a full team before you even have revenue
    • Relationships can be hurt

How to bring property management in-house

  • Create a policies and procedures manual: a how-to guide for every single department and staff member in your portfolio
  • Hire a president to run the company: don’t reinvent the wheel, leverage that person’s knowledge, experience, leadership, and contacts.
  • Build out each department slowly and carefully before you take everything over: learning and development director, digital marketing director, revenue management, CFO, IT, HR, regional and area manager, regional maintenance director
  • Culture matters
  • Provide sufficient notice

Six Lessons in Becoming a Better Leader

Brandon Turner, BiggerPockets

The Four “Therefores”: Happiness and fulfillment is found through growth and achievement therefore, in order to grow, I need to focus on my superpower and less on other tasks therefore I need to hire a partner or outsource my non-superpower tasks, therefore I need to lead those people to where I desire therefore leadership is not an option for an incredible life

How to change your identity: mindset -> actions -> identity -> confidence -> actions …

You can be anything you want to be if you change your identity through your mindset actions and confidence

Brandon’s new mindset about leadership

  • My job is to be a general
  • Management is not leadership and leadership is not management
  • When you work with people you love and care for, it’s not work, it’s a beautiful life, a symbiotic relationship of mutual growth and respect
  • Leadership is the most manly of skills
  • Freedom is found through great leadership
  • Leadership is a skill

6 characteristics of a great leader

  • Quitter: find a way to quit your job as soon as possible by paying an expert to do it
  • Cutter: the one or two things you need to be doing
  • Caster: write down the vision for where you want your company to go
  • Coach: ask the right questions to improve performance of team
  • Scout: find and attract talent
  • Student: recognize you don’t know what you are doing and that you need to continually grow
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Top Takeaways From Every BEC2021 Day 1 Speaker

Four Steps to Build a Team That Lasts

Liz Faircloth, The Real Estate InvestHER

Step 1: Map out where you want to go: Determine your short-term (1 year) and long-term (3 and 5 year) goals. Define an overall vision.

Step 2: Take a personal inventory: Spend half a day figuring out everything you bring to the table from a credit (asset and liabilities), time, experience, skills, personality, and leadership perspective.

Step 3. Determine WHO you need to meet your goals and vision: Based on your business model, figure out the major roles you need to fill. Based on what you bring to the table, determine which roles you will fill and which roles you need a team member to fill

Step 4. Find people to gain alignment and diversity: The biggest mistake when building a team is lack of alignment (values, goals, expectations, entrepreneurial spirit) and lack of diversity (personality, risk, tolerance, skill set, experience). Leverage personality assessments to identify hires who complement your skills and gaps, and who are in complete alignment with your value.

Beyond the Pandemic: Adapting Investment Strategies to the New Normal

John Change, Marcus and Millichap

Vaccines are the key to the economic recovery: The amount of money in money market mutual funds and saving deposits are very high. There is the potential for $4.5 trillion to enter the economy once things are “back to normal” after the roll-out of the COVID vaccine.

Job growth and COVID: A record number of jobs were lost as 10 years worth of job growth were wiped out – 22M jobs. About half those jobs have come back. Hotels and restaurants were hit the worst and have yet to recover.

Retail and COVID: Retail was a mixed bag. It took a hit at the onset of the pandemic, hit a high after economic stimulus and has started dropping again. Restaurants, bars, electronic, and apparel sales were hit the hardest while home repairs and internet sales are at an all-time high.

Huge GDP growth forecasts: GDP is forecasted to grow between 5% and as high as 7.5% in 2021, which would be a 30+ year high.

Top myths of the pandemic

  • Huge wave of evictions are coming: rent collections are down YoY but are much better than expected due to economic stimulus
  • Widespread distress will spark significant discounting: distressed sales are 1% of total transactions, and delinquencies are well below distressed market levels
  • The retail apocalypses: rent collections on retail have surpassed expectations and are being dragged down by entertainment, restaurants, and health centers

2021 Trends

  • Class B and C multifamily: due to record levels of construction, Class A vacancy is increasing while Class B and C vacancy is at record lows
  • Self-storage: occupancy hit all time high Q3 of 2020

 

Seven Lessons Learned With $2.8 Billion of Real Estate During COVID

Jillian Helman, RealtyMogul

Lesson #1. Play defense before an economic crisis, not during a crisis: Three things to do during economic expansion to prepare for economic recessions: underwrite well and don’t do deals that don’t met your underwriting criteria; have a strong property management team in place; have open conversations with your lenders to ensure they will pick up your call during a recession.

Lesson #2. The proforma is always wrong: When creating your proforma for a new opportunity, have a minimum contingency budget of at least 10%, scale back the number of units you expect to renovate and lease, assume an exit cap rate that is 1% greater than cap rate at purchase, and increase vacancy and bad debt to stress test.

Lesson #3. Take a breath and be deliberate: Jillian’s top priorities are the health and safety of residents and team, keeping occupancy up, and shoring up cash reserves. This involved taking a deep breathe and deliberating to determine how to best focus on these priorities. She decided to halt renovations, rent increases, and all nonessential repairs.

Lesson #4. Don’t be afraid to innovate: For example, Jillian began using virtual, self-guided tours.

Lesson #5. Do experiments and test the market: In the example above where Jillian experimented with virtual tours, the conversion rate was higher than in-person tours with a leasing agent. Since the experiment works, she doubled down.

Lesson #6. Be a stellar communicator: Provide detailed monthly updates to investors, communicate what you are proactively doing, and be available and receptive to investors.

Lesson #7. Take a position: During COVID, this started by overcoming fear. Then, Jillian took an offensive position, assumed the world wasn’t ending, that the world would recover, and that data supported that investing still made sense.

What makes her afraid?

  • Silicon valley tenants/master leases with no credit quality a la We Work
  • Office with significant roll over (exception if the cash flow is strong enough to return full principal prior to roll over)
  • Retail unless it is main-and-main
  • Hospitality in all markets
  • Impact of insurance costs rising in markets like Florida and Texas
  • Modeling a refinance with Fannie Freddie debt less than a 4.5% to 5% all-in rate
  • Sitting in cash when inflation starts to rise

Where does she see opportunity?

  • Well-occupied apartments with reasonable bad debt financed with long-term fixed rate debt
  • New construction in growth markets with a late 2022/2033+ delivery
  • Growth markets – Austin, Dallas, Denver, Raleigh, Charlotte, Columbus, Phoenix, Jacksonville, Salt Lake City, Nashville
  • Office with long term credit tenants and a functional need to be in an office
  • NNN with great tenants
  • Retail at main-and-main trading at a discount
  • Not yet, but NYC, LA, Miami in 2022/2033

 

How to Bulletproof Your Mind for Extraordinary Real Estate Success in 2021

Trevor McGregor, Trevor McGregor International

Your mind is like a fertile garden. Whatever you plant, the soil will return, and your thoughts are the seeds. Plant positive powerful thoughts. To avoid too many weeks growing, you must stand guard at the door of your mind.

The two things that happen during the prime years of your life: The prime years of your life are between 25 to 65 years old. This is when you have the most opportunity as well as when the most regrets are formed.

TFEMAR: a thought turns into a feeling; feeling into an emotion; emotion into motivation; motivation to take an action; the action has a result. Therefore, your thoughts equals your results.

The 4S Success Formula: To be successful, you need to be in the right state, have the right story, the right strategy, and the right stands. Your state is your physiology, focus, and language. Your story is your identity – you are either a victim or a victor. Your strategy should be based on a character trait integration – what would so-and-so successful person do?

2021 Forecast for Apartment Investing

Brad Sumrok, Apartment Investor Mastery

2020 performance highlights

  • 2020 ended up a pretty darn good year for apartments
  • Lost 22M jobs and now down 10M – correlated with apartments
  • Occupancy dropped 60bps
  • Rents went down only 1%
  • Price per door went up and cap rates went down, so investors ‘net worth went up by owning deals

Jobs and population growth are the top two economic factors that make multifamily tick: Migration growth is important but the market must also be landlord and business friendly

Sumrok process for double digit returns

  • 1st investment is specialized education
  • Define why, SMART goals, investment criteria
  • Stabilized and value-add
  • Select the right market
  • Leverage OPE, OPT, OPM (including syndication)
  • >60 units for economic of scale
  • C and B class
  • Be dynamic (i.e., now A Class in recessed markets)
  • Exponential and expansive mindset

How to select the right target market

  • Landlord and business friendly
  • Above average cap rates
  • Above average job growth
  • Above average pop growth
  • Above average affordability gap: rent of median apartment unit < PITI of median SFR
  • Understanding local “markets” and cycles: boots on the ground
  • =highest returns and lower risk

2021 Forecast

  • 3,695,100 new jobs up 2.6% and 2.9% in 2022
  • Job growth strongest in white collar (Class A)
  • Occupancy down 40bps due to new supply
  • Rents up 1% in 2021 and 4.1% in 2022
  • Construction up 14.5%
  • Top 2021 markets: Atlanta, DFW, Austin, Houston, Tampa, Jacksonville, Phoenix, Columbus, Denver, CO Springs, NC, Nashville, Knoxville, Indianapolis

In one year from now, if you waited, you will regret it.

How to Write Off Almost Anything

Karlton Dennis, Karla Dennis and Associates

The two kinds of tax payers you don’t want to be

  • Ultra-aggressive: don’t know how to leverage tax codes but goal is pay least amount of taxes as possible
  • Ultra conservative: don’t want to take any of the deductions they qualify for and are afraid to reduce taxes because they’ve been living in fear (listening to info online, news, past CPAs, etc.)

Four simple steps to following the tax code

  • You must have a business: run your business like a business, have a time investment in a business, have a mentor or coach, have a business and strategy
  • Your business expenses must have a business purpose: there is not a list in IRS handbook that says what you can and cannot write off. If it is ordinary, necessary, reasonable in pursuit of income, it can be deducted
  • Proof of payments: keeping copy of receipts is important because it is documentation of exactly what you spend your money on – what is business and what is not business. Take pictures of your receipts
  • Expenses properly reported: If you are trying to do tax planning on your own, you will fail.

Most common tax nuances

  • Not keeping property receipts
  • Recording keeping is muddled
  • Miscategorized expenses
  • Late on bookkeeping

How the wealthy stay in the 0% to 15% tax bracket: organization and a strategic tax plan.

Passive Investor Tips for Investing in Multifamily Syndications

Travis Watts, Ashcroft Capital

What is financial freedom? When your passive income exceeds your lifestyle expenses.

What is the right investment criteria? There is no right or wrong investment criteria. What matters are your goals and your risk tolerance.

Difference between passive and active investing

  • Passive: Lacks time, enjoys reading financial news, likes to own a little bit of a lot, seeks to match not beat the stock market
  • Active: Enjoys the business of real estate, may not value diversification as top priority, seeks to control investments, has an advantage of competition, seeks to beat the market
  • Active is hands on, passive is hands off

2021’s Place in the Housing Cycle

John Burns, Burns Real Estate Consulting

High demand: 

  • Consumers made $1.03T more than usual last year due to government stimulus 
  • Consumers spend $535B less than usually last year, despite spending more on goods
  • Consumers saved an additional $1.6T in 2020 compared to 2020
  • Most homeowners and potential new home buyers are far better off financially today than a year ago
  • Google search has risen 56% for new homes, 9% for new homes
  • Millions of workers no longer need to commute

Low supply: 

  • Home listings are down over 40% YoY
  • New supply has fallen – 10% fewer communities to sell from YoY
  • Unsold new homes dropped 69% YoY

High demand + low supply = 2021 housing boom: John says we are clearly in an upcycle.

Unlocking the Fund of Funds Model

Hunter Thompson, Asym Capital

Traditional real estate partnership: Capital partner and operating partner form management LLC that purchases real estate

Co-GP model: multiple capital partners and operating partner form management LLC that purchases RE – SEC doesn’t like, especially with increasing number of capital partners

SPV/Fund of Funds:

  • SPV: special purpose vehicle
  • Considered a pass through entity
  • Doesn’t mean there are multiple assets
  • A bunch of investors invest in a SPV, there is a manager of the SPV (placement agent) who invests with another operator

Why would anyone invest through an SPV instead of investing directly with an operator?

  • Your clients desire your expertise
  • Gives them access to otherwise unavailable operators: high minimum investment
  • The dream clients you have attracted have picked you to rely on
  • Provides investors an opportunity to defer to your due diligence
  • Most investors are not like you 
  • The economies of scale are not necessarily less favorable

Preferential treatment of SPVs

  • Operators prefer to focus on implementing the business plan not investor relations/fund administration
  • You can leverage what you are bring to the table as a negotiation tool to receive preferential economic treatment
  • Many operators are willing to forego some of the economies in order to receive larger checks

Three Things it Takes to Make the Inc 5000

Defining your culture: Start with your why. why do you do what you do? Why do you go to work in the morning? Then, transcribe your why into a one or two sentence mission statement to inspire you and your team to show up.

Next is to know where you are going and what the end state looks like. This is your vision – what does success look like to you.

Third is to define your values. These are the behaviors you want to see in your organization.

Last is to avoid the say-do gap. Be care that you don’t say one thing and do another, because then your culture isn’t believable.

Developing your plan: Understand what you are going before you do it, but set a time limit. A good rule of thumb is to understand and education yourself for 90 days, develop a plan for 90 days, then go out and take action.

A good strategic plan includes three goals, three to five objectives, and multiple key results over a three year period.

Assemble your team: First, understand your strengths and weaknesses. This is best accomplished by asking your friends, and especially your spouse. Then, find people who fulfill your weaknesses.

When hiring people, focus on their character more than their competencies. You can teach competencies but you cannot teach character. Then, focus on experience but understand their track record to ensure they were successful because of skill and not luck.

Why Consider Industrial: The Case for Industrial Syndications

Monick Halm, Real Estate Investor Goddess

What is industrial real estate: all land and buildings which accommodate industrial activities

Why consider industrial real estate

    • Escape the feeding frenzy that exists in other asset classes
    • Diversify your portfolio
    • Long-term NNN leases with excellent tenants
    • Increasing demand by companies (especially e-commerce)
    • Strongest performing asset class throughout the pandemic

What is the current state of the market for industrial real estate:

  • Industrial spaces are being used by essential businesses –
  • Industrial has been the strong asset class during the COVID pandemic
  • Rents are going up and occupancy is going up

Institutional Capital Demystified

Lance Pederson, Verivest

Having a fund is a more efficient way to capitalize.

Being an operator is like owning a trucking company and having to own a refinery create your own fuel. 

Institutional capital is the equivalent of owning a job

There’s a reason why you’re seeing sponsors with 30+ year track records raising capital on crowdfunding websites because the cost of capital is much cheaper

Create Class A and Class B shares to attract HNWI, SPVs, institutional investors, etc.

Institutional readiness checklist

    • Conviction/differentiated strategy
    • Polished online presence
    • Pitch deck/executive summary
    • Due diligence questionnaire
    • Verified track record
    • Investor references
    • Secure data room
    • Quarterly reporting

If you focus on building your HNWI base, the rest well come.

Five Evolutionary Ideas for Your Business

Joe Fairless, Ashcroft Capital

Protect against biggest liability you’re currently not paying enough attention to: For 99% of syndicators, compliance. Most securities attorneys are really good at answering the questions you ask, but your are still at risk when you aren’t asking the right questions. The solution is to hire a an in-house compliance team member and acquire the proper insurance.

Bring the best out of your team: create a single KPI for each team member or a one sentence description of what their roles is so they know exactly what is expected of them and to motivate them to exceed their KPI for a bonus.

Enjoy better deal flow, deliver better returns, and create more sanity: create a fund instead of single asset purchases. It increases deal flow because you can be more flexible with the types of assets you target. It generates better returns because you can commingle capital within a fund, so there is less ideal capital.

Get better results on your thought leadership platform and in your commercial real estate business: Once your thought leadership platform matures, transition it to other people. They can focus on growing the brand and you can focus on growing the investing business.

The success paradox: The more successful you become in business, the less likely you will receive constructive criticism from your team members. The solution is to find three people in your circle who will provide you with honest feedback. Also, identify an event that didn’t go according to plan and think about how you were responsible for it taking place.

Intellectual Debate: Interest Rates Will Be Higher in 24 Months

Hunter Thompson, Asym Capital; Neal Bawa, Grocapitus Investments; John Chang, Marcus and Millichap; Ryan Smith, Elevation Capital Group

Winner – Interest rates will not be higher in 24 months

  • The question shouldn’t be, “will interest rates be higher,” the question is “how low will interest rates go and when will they go negative?” Hunter says many industrials countries already have zero and negative interest rates.
  • Japan is the new mode: in response to an 80% drop in their stock and real estate markets, they decided to print money to halt unemployment. This money printing will not end in the foreseeable future, and is being mimicked by other industrialized countries. Therefore, rising interest rates would blog up the global economy
  • The trend is your friend and don’t fight the Fed. The trend has been down and to the right for more than 40 years. Fed said they will keep the funds rate at 0% through 2024

Losers – Interest rates will be higher in 24 months

  • There isn’t evidence that the Fed will continue lowering interest rates. The prediction is based on the desire of real estate investors to see lower interest rates
  • Fed will rise interest rates to control inflation: $5 trillion in stimulus money was injected into the economy, increasing the money supply to an all-time high. GDP is forecasted to grow between 5% and 7%, which means inflation.
  • Fed always rises interest rates after recessions
  • Fed sees pandemic as a short-term risk, which means the Fed has changed its position

State of Multifamily Market: Apartments in the Age of COVID

Robert Calhoun, CoStar

The spring leasing season wasn’t lost: It was just pushed back later into the year. We lost 61k units in demand between March and June 2020 and gained 69k units in demand between July to November.

Demand in the suburbs are strong while multifamily continues to underperform in downtown areas

  • One bed rent: drop overall at onset but suburban bounced back while downtown dropped significantly 
  • NYC rents by commute time: 12% increase in rents in areas with 51 to 60 minute commute times, 9% reduction in rents for areas with commute times less than 10 minute
  • Densely populated metro areas had really bad net absorption
  • Change in asking rent from March to Dec: Downtown markets top list of markets with greatest decrease and suburban markets top list of markets with greatest decreases
  • 2021 YTD rent change: mix of downtown and suburban areas with increases in rents
  • Concessions: nearly triple for downtown and only slightly higher for the suburbs
  • Availability rate: spiked nationally, getting better which was driven by suburbs. Rates were massively elevated in downtown areas but improved quickly
  • Rent trends by unit type: two-bed are in more demand than one-bed, underperformance of studios
  • Starts and under construction: massive supply wave over last five years but constructions have rolled over in 2020 especially starts
  • Under construction by star rating: vast majority are high end expensive properties largely in downtown areas, lack of supply of affordable housing
  • Rents by star rating: 3 star rents returns to normal seasonal patterns while 4 and 5 star has underperformed
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My 5 Takeaways from BEC2021 Day 2

The Top 10 Things to Ask Before Investing

Ryan Gibson, Spartan Investment Group

Your interview with the operator

  • Ask open ended questions: When interviewing operators, see if they are interested in what you have to say
  • Write down notes
  • Keep a log of operator Q&A
  • Portfolio projects
  • Referrals
  • Property location

Are they an operator or syndicator? Determine what role the company plays. How are they compensated, how are they aligned with you? Are they aligned with the success of the project?

Tell me about a deal gone bad? This is Ryan’s favorite question. Having no deals that have gone bad indicates low experience or a lie while having deals that have gone bad helps you judge the grit of the syndicator. 

What is their mission, vision, and values? Does their mission, vision, values, align with yours? Ask them to give an example of how they’ve used their values recently.

Who is on the team? Are they a one-man band or do they have a deep bench? Are they vertically integrated? Are they using the fees they charge to hire a great team or to pay themselves?

What is their core business model? Selling education? Working elsewhere? Focused on deals? Gurus?

What is your investor communication plan? Ask for last three communications to get a better understanding of their communication style. Is the plan in writing? Can you verify property performance against projections?

What is the performance of their portfolio?

  • Historical performance (proforma vs actual): comparison is more important than absolute return since it gives you the right context
  • Was it project level IRR or investor IRR: total project may look better than investor level
  • Consistent metrics: Ryan likes to use equity multiple and how long it took gives true time tested return, IRR might be misleading or not the best metric

Obtain reference and conduct a background check

  • Don’t ask for a reference, find your own, because no one gives bad references
  • Find others that have invested in the company
  • BBB, Google reviews, 506 Group, etc. – search for the company name and name of the principles

Insurance

  • Does SEC attorney provide E&O insurance to cover for lawsuits
  • What exclusions are included on their title insurance?
  • Is there property insurance at least from an A rated Carrier?

Decision to exit

  • What would make an operator exit early? What is their justification for selling?
  • Have they sold early in the past? How many time and, how did the actual returns compare to projections?
  • How do they brief investors?

 

The Devastating Impact of Climate Change on Your Real Estate Investments in the Next 10 Years

Neal Bawa, Grocapitus

Impact of climate change in 2020 and questions to think about

  • 2020 had $95B in damage from climate disasters
  • What will happen to your investments when taxes increase to pay for massive sea walls?
  • Where will the money come from to fix Texas’s power grid?
  • In California, the six greatest wildfires happened in 2020, and will double in five years. How will this impact California cap rates?
  • Cities with sea level rise exposure are already priced at a 7% discount

Many climate risks may become uninsurable: Insurance companies are starting to buy climate data from Moody’s and creating city-by-city insurance plans.

Climate data is being used to downgrade entire cities: When a city is downgraded, their ability to borrow goes down, making it harder to fund re-construction projects. As a result, people move out, and it continues to spiral.

The end of the 30-year mortgage: Full cities may change to 20 year or 15 year mortgages options

The cities with no climate risk will be the next gold rush.

Overall, the people who set ratings, cap rates, insurance rates, mortgage terms, as well as cities are taking climate risk into account, and so should you.

How to Automatically Get More Passive Investors

Michael Blank, Nighthawk Equity

Create a lead magnet: When someone downloads a lead magnet, they get tagged in system as “downloaded”, and put on email list to receive educational emails

Join the club: After downloading the lead magnet, they are invited to fill out a detailed questionnaire, and get tagged as “joined”.

Schedule a call: Included is the option to schedule a call after filling out the questionnaire. After the call, they get tagged as “deal ready” and are now prepared to receive upcoming opportunities

Follow up automation: Automatically send follow-up emails to people tagged with “downloaded” and “joined” until they move forward in the process and set up a phone call or unsubscribe.

How to Create a Social Media Content Engine

David Toupin, Obsidian Capital & Real Estate Lab

Create lots of content one or two times per month: Either by yourself of hire a videographer for one or two sessions each month, and upload all the content to a DropBox folder

Hire an editor to create a content database: use month’s worth of content to create longer videos, shorter videos, and pictures with caption. The goal is to create at least 10 social media posts per one hour of video content

Hire a content manager: the content manager will use the content database to compile one month’s worth of social media posts.

Determine what the focus of your content is going to be: All posts should be directed towards achieving your end goal

You will approve the posts: Once the content manager has compiled a month’s worth of posts, you review and approve

Schedule the posts: After you’ve approved the posts, the content manger schedules them throughout the next month.

Rinse and repeat

When to Bring Property Management In-House

Frank Roessler, Ashcroft Capital

Day 1: Pros and cons

Pros: 

  • zero disruption
  • small overhead: won’t have to build out an entire organization, which is expensive and time consuming 
  • reduced upfront costs: offices and employee benefits

Cons: 

  • no best practices: you will be learning on the job at the detriment of the first few properties
  • starting at a loss: one property will not cover cost of managing the property, won’t breakeven until you have a couple thousand units 
  • no industry top talent: don’t have a track record to attract best of the best

When you have scale: Pros and cons

Pros

  • Ability to attract top talent: people were eager to jump ship and provide a business plan
  • Starting with a profit margin: breakeven or make a little bit of money
  • Best practices: because you have the top talent

Cons

  • Major disruption: terminating contracts, providing notice, transition process, a million moving parts
  • Significant startup costs: hiring a full team before you even have revenue
  • Relationships can be hurt
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Webinar Recap: Looking to Note Investing in the Global Health Crisis

The performance of real estate notes was a bellwether for the economy in the last recession, so in this Best Ever Webinar we explored the performance of 1st position and 2nd position notes, how the market has been affected by COVID, and what the data indicates about the real estate market at large.

As a servicer of tens of thousands of first position notes, Jorge Newbery pointed to the $4MM loans currently in forbearance, which are on the precipice of foreclosure after government intervention comes to an end.

The counterargument speared by Kathleen Kramer was that the $4MM homes don’t represent the volume of homes in trouble, but in part those taking advantage of the situation. She also pointed to all-time highs in homeowners equity relative to average debt amounts and record low interest rates that could allow troubled homeowners to be bailed out by refinances.

Jim Maffucio added that we see the unemployment rate dropping and average HHI of homeowners being significantly higher than the last recession where subprime mortgages were provided to low wage earners.

Regardless, all agreed that the amount of unpredictability in the future has returned to normal along with pricing for notes, suggesting that for the time being the market has an optimistic outlook on the future of residential real estate.

What the future holds for commercial notes is a larger question with retail and hotels going to double digit CMBS special servicing rates. Will there be opportunity to buy distressed office notes? Whispers of the opportunity are just beginning and it could be too early to see what the future holds.

Watch the on-demand playback of this webinar and past webinars on our conference platform NOW! Our networking has started for this year’s Best Ever Conference, don’t miss out! Use code WINNERS30 for 30% off your ticket here.

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Beyond the Comfort Zone

Stephane Rochet shares how making a plan for success also means creating a plan to push your own boundaries

In the early 2000s, Stephane Rochet worked as a police officer in his community. During his shifts and interactions with his fellow officers, he noticed many of them were often discussing their real estate investments and what was happening in the world of “alternate investments.” After leaving the police force in 2007, he still recalls that environment as the place where he first learned about the potential of real estate investing.

“It was just a realization that the traditional stocks, bonds, put money into your 401(k) and hope for the best, wasn’t working for me,” remembers Stephane. “So, I started to look for other alternatives, and that’s where it started me [into real estate investing], and then the journey continues.”

Stephane moved with his wife and two children to San Diego, California, to pursue a career in the field of athletic performance, specifically around the strength and conditioning of athletes. He also started investing in single-family houses, kickstarting what would become a very active interest in multifamily syndication and the alternate investments he used to hear so much about.

To grow, Stephane began to seek networking opportunities to build relationships and connections with like-minded investors. After several lackluster experiences with local meetups, Stephane realized that the Best Ever Conference presented serious options for personal growth and learning opportunities.

“I made three simple goals. I’m a little bit of an introvert, so going to this, I said, ‘Hey, look, you have to get out of your comfort zone and meet people.’ There were a few people that I had met with or talk to, or emailed or Facebooked before going, and I said, “Well when I’m there, I’m going to actually meet them in person and talk to them.” remembers Stephane. “I had a list of about four names of people who I had contacted previously, had been in touch with, and I sought them out, met them, we had discussions, and they introduced me to other people.”

Meeting people beyond Stephane’s known network was the ultimate goal. He found it easy to achieve, given the conference’s tools, to connect with attendees and plan your experience before arriving on-site.

“I was just determined to meet five new people every day, and that was easy because you had presenters. You’d go sit in a room with presenters, and you just talked to the people beside you while you’re waiting,” said Stephane. “Because I’m new and learning, I wanted to make sure to take advantage of the presenters that were there, so I looked at the schedule beforehand and set out my schedule and made sure I got to see all the presenters that I was interested in.”

As with most conferences, the real test is what you’re able to do with the knowledge you gained once you arrived home. For Stephane, it was not only useful but remained to be empowering on his real estate journey.

“I don’t know if I really realized it until I was on the flight home, but I just felt really excited and a lot more confidence that A, we could do this thing, B, we were on the right track, and C, you didn’t need to be, especially gifted,” said Stephane. “I mean, obviously, you have to get the knowledge, and you have to have some skills, but there were so many regular people just like me out there that were plugging away and doing the same thing.”

In the landscape of COVID-19, Stephane believes that the environment of meaningful relationships and networking comes slightly more complicated. However, not all things have to get harder. In fact, it’s Stephane’s philosophy on real estate investing as a whole that truly relies on keeping things simple.

“It’s so easy to get into the weeds, but an investor doesn’t really care about that, especially on the first call or anything,” said Stephane. “Just remember to keep it a simple, broad picture, and explain things in a way that people can just grasp it and understand why it’s a good investment or why it’s a good path to follow.”

This year at the Best Ever Conference, taking place February 18-20th, there is a full day dedicated to networking. Start networking now and use code WINNERS30 for 30% off your ticket! Register here.

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Networking in 2021

As any real estate investing pro can attest, networking is an irreplaceable factor in the success of active and passive investors. In a world catapulted into the virtual space during 2020, many investors have struggled to find how to network impactfully.

With meet-up groups delayed and in-person meetings on hold, the virtual space is now the only space to network. While many are postponing conferences, some are taking advantage of the opportunity to join in on virtual networking from right where they are.

A previous conference attendee said, “This is the lowest barrier to entry because you don’t have to leave your living room. You don’t have to buy a plane ticket. So if you’re thinking about going, you really don’t have an excuse.”

The goal of our virtual Best Ever Conference is to provide maximum value to each attendee in both insights and networking opportunities. The conference is filled with speakers and content focused on our audience’s curated needs and interests. We have a whole day set aside for networking and we strongly encourage you to take advantage of our exceptional platform that makes virtual networking easy. Some of the ways you can connect:

• Set 1-on-1 Meetings with Other Attendees
• Join Q&A Rooms for the Latest Topics
• Enter the Networking Lounge with Custom Table Topics
• Speed Networking to Make as Many Connections as Possible
• Playback Any Keynote Speaker on Demand

Our platform is open to attendees NOW. Start your networking. Use code WINNERS30 for 30% off your ticket! Register here.

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To Create Something Meaningful

How artist-at-heart Marc Cortez evolved his technology and media business success into a passive investment career

Creativity and connection fueled the early stages of Marc Cortez’s career. He thrived in competitive, start-up environments where the stakes were high, but the growth opportunities were endless. After building thriving social presences for some of the world’s biggest brands, Marc evolved his business savvy into advising budding entrepreneurs to raise capital and develop their business plans. It didn’t take Marc long to start formulating business plans of his very own.

Almost ten years and several successful ventures later, Marc finds himself exclusively in the investor seat at his firm Cortez Holdings Group. The creation of this investment group was made possible by the successes achieved in his earlier career.

“I’m an artist at heart, but my passion for real estate was inspired by the freedom I can create in my life,” said Marc. “Professionally, I spent the last ten years in tech and media turning big wins into passive investments by way of syndications. I’m consistently pursuing ways to grow my portfolio and increase my cash flow.”

Growing his portfolio and increasing cash flow has been significantly impacted through attending conferences like the Best Ever Conference. A long-time attendee, Marc began attending as a volunteer to help a friend. What started as a simple act of friendship turned into a consistent presence each year, where Marc now ushers VIP guests throughout the event.

Beyond simply attending the event, Marc’s most memorable takeaway is essential for investors of all skill levels to keep in mind.

“Make one really good friend. It’s easy to run around dropping ‘cards’ off and playing the quantity over quality game. But one incredible connection can open up an entire world,” said Marc. “I’ve seen deals and business partnerships sprout and excel from these relationships. So build a healthy connection with at least one person and be amazed at the future potential.”

Personal connections have changed the way that Marc views his personal investments, finding that the personal element often helps propel deals far faster than they would otherwise go.

“Discussing a potential sponsor with people in the same sphere or community also helps with diligence. It’s easier to get a recommendation or review,” shared Marc.

Understanding another key component of relationships is critical in bringing value to investments: how people handle adversity.

“I have a longstanding relationship with the partners [at an investment group], and I trust that my best interest as an investor is a priority, but even more so that a great relationship is a priority,” said Marc. “I can recall countless examples of how they’ve supported me inside the investment and out.”

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Living Life Fully

Dave Allred discusses what it looks like to define a path for success while making the most of each moment along the way

Discussing finances was something that wasn’t done in Dave Allred’s family growing up. Having never had those critical conversations around money or money management, Dave realized in his early adult life that he wanted more for himself around financial understanding and financial freedom.

At age 21, he committed to becoming a lifelong student of finances and investing. While he actively continues pursuing knowledge and personal development today, he credits much of his success, both personally and professionally, to that commitment very early in his life.

“I think it’s really important in our personal development is that we’re always teachable and coachable,” shared Dave. “That’s just been a guiding principle of mine is to always be a lifelong student. Not only in finances but also in real estate, personal development with my own family.”

While networking may be a topic that can make some uncomfortable, Dave rethinks networking as truly prioritizing relationships. It’s authenticity and relevancy that distinguishes the development of relationships from mere networking, which Dave believes can often come across as “gimmicky” or forced in certain situations.

“I feel like relationships are the new currency in business. My best deals, the business that I’m most proud of, has actually been with my friends, with my network,” shared Dave. “They’re people that I trust and that we have similar interests; we’re on the same mission in life.”

Relationship building has never been more critical than in our current environment, where how those relationships are built has had to be rethought due to the ongoing COVID-19 pandemic. While conferences like Best Ever Conference are transitioning to a virtual platform to foster a sense of community and connection, Dave believes that meaningful relationships can continue to form beyond these virtual events.

“The power of social media and staying connected through Facebook groups, my Instagram page allows me to put a lot of content out there just to keep adding value for others. I follow on Instagram a lot of the people that I really respect,” said Dave. “While that’s not as personal as meeting in-person or on a call, I feel like we can still stay very connected, know what we’re working on, what we’re up to. I’m inspired by a lot of others in the space through social media. It’s a very powerful tool to be able to still communicate, add value for each other, and really collaborate.

Beyond a continuous drive to learn also lives a desire to document and measure success. Dave spent a significant amount of time creating his “lifestyle design”, or what he calls a blueprint for his own life. By documenting his core values, mission statement, non-negotiables, and more, he could use those as a foundation to build financial success on top.

“People overestimate what they can accomplish in one year, but they underestimate what they can accomplish in three to five years. I found that to be true over and over,” said Dave. “If we can get clear on what we really want in the long-term and have the right habits and behavior then we can actually accomplish amazing, significant things, but it takes time.”

Start your networking today at the Best Ever Conference, taking place February 18-20th. Use code WINNERS30 for 30% off your ticket! Register here.

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The Art of Doing

Rob Withers explains how the world around him inspires his philosophy behind real estate

Born and raised in Arizona, Rob Withers moved to Colorado for college and found his home. He spent a large bulk of his life fully engrossed in all the outdoor activities that Colorado has to offer. From mountain biking to hiking to skiing, Rob took advantage of being outdoors whenever he could. The only time that seemed not to be possible was when he worked as a technology consultant for more than 25 years but discovered real estate investing on the side.

Only a few years out of college in the 1990s, Rob invested in several single-family rental homes in Arizona and Colorado. The time commitment of his family and a full-time job at a multinational consulting firm kept him from fully investing his time to learn what was necessary to attain true success and the desired returns on his investments. Leaving the investing world feeling discouraged, another opportunity presented itself that changed how Rob invested both then and for his foreseeable future.

“Around 2010, a good friend of mine who was a realtor said to me, “Lakewood Housing Authority is selling off all this inventory, duplexes, single-family homes. The income’s great. You should really look at this. I know you dabbled in real estate a while ago.” And he had the contract to sell off 40 or 50 doors,” remembered Rob. “And so at the time I bought three duplexes, and the math was totally different than it was in the ’90s. Since then, I expanded buying more rentals and developed a partnership with a builder to build single-family homes and duplexes in Denver.”

The transition from single-family properties to duplexes opened Rob’s eyes to the multifamily syndication model. Rob bought and sold a 64 unit multi-family property in 2019. Over the last few years, he’s been transitioning more of his time, energy, and financial resources to diversify his investment portfolio and develop relationships in the real estate investing community.

Attending conferences like the Best Ever Conference in 2019 was an easy decision for Rob to make, given his close geographical proximity to Keystone. He was also inspired to lean into his desire to learn and do more within real estate.

“I was impressed with the quality of the people at the conference. Many have had successful careers and are learning the business” said Rob. “But then there are others that are a little bit more mature and have been around the block a bit longer but are still very approachable and still willing to discuss deals. I feel like I learned a lot and met great people.”

When thinking about the impact of what COVID-19 has on the reality of networking in 2021, Rob believes there are definite impacts for new relationship building, especially if real estate investing is not your primary occupation.

“For me personally, I still feel like there’s so much more I could do on the real estate side, simply around networking if I didn’t have the challenge of 40 to 50 hour a week job. So that does impact me,” reflects Rob. “But there are certainly tools that can help; I think a key for a conference where there’s a larger group setting is to create a form of engagement where there can be joint participation.”

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Eyes on the Skies

Lifelong pilot Tait Duryea shares how his passion for real estate soared after the Best Ever Conference experience.

An active lifestyle was always in the cards for Tait Duryea. Alongside his avid love of flying, Tait had always been intrigued by real estate investing. Not long after he started his career as a pilot, he purchased his first rental property in Las Vegas, Nevada at the age of 24.

“It was just a single-family house in Las Vegas. I put a property manager between me and the tenants, so they wouldn’t know how young I was,” remembered Tait. From that single-family home onward, he fell in and out of real estate investments without a particular strategy. Being newer to real estate, he discovered the Best Ever Conference taking place in Denver in 2019 and decided to take part.

“The catalyst for getting me more active with [real estate] was Best Ever Conference. It was the first conference that I had ever attended and it just catapulted my career from being someone who was new to the ropes from reading books and listening to podcasts, to being someone who did real estate and had a real estate network, because it’s all about relationships,” said Tait. “It launched my true real estate investing career, got me out of single-family [investments] and into commercial and syndication.”

Passive investments, like multi-family syndication, weren’t something that Tait was even aware existed prior to the Best Ever Conference. During the event in 2019, a mock debate whether active or passive investing was better took place, prompting some new thinking.

To many, the concept of networking can seem artificial, forced, or even trite. However, relationship building proved to be an essential element that Tait took from the Best Ever Conference, retaining relationships forged over that weekend into his real estate transactions today. The absolute, exponential power of relationships in the real estate investing business is something that Tait believes is worth experiencing and contributing to.

“Just having a network of like-minded real estate investors who you know personally and that your friends with is rocket fuel,” said Tait. “And unless you’ve been to a conference and you start talking with other people who are doing things like you are and have ideas and contacts and people that can help in what you’re trying to do, it’ll change your investing career.”

Attending the Best Ever Conference ultimately changed how Tait invested, shifting 50% of his investment portfolio into finding, vetting, and investing in limited partnership syndication deals instead of all active investments in single and multi-family homes.

Tait believes there’s never been a better year to try it out.

“This is the lowest barrier to entry because you don’t have to leave your living room,” said Tait. “You don’t have to buy a plane ticket. So if you’re thinking about going, you really don’t have an excuse.”

Start your networking today at the Best Ever Conference, taking place February 18-20th. Use code WINNERS30 for 30% off your ticket! Register here.

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January’s Free Webinar on The Future of COVID-Affected Asset Classes

Covid-19…we all hate the word now. Not that we didn’t before. But, as investors, the multifaceted challenges just keep piling up. If you are in trades, Pfizer and Moderna are probably a good bet. but for us? In real estate? Where should we place our bets? 

With the vaccine, many are expecting to show an increase of earnings. Does that include real estate? What about the US dollar? Commodities? Bonds? 

The widespread economic hardship caused by Covid-19, and the growing dread of it ever truly going away, is crippling. With a vaccine now in place, many are shuffling and preparing for a recovered marketplace and an uptick in the economy, as, hopefully, they should. 

How does this affect the different asset classes? The main focus for our webinar this month is Assisted Living, Retail, and hospitality. These sectors have been hard-hit by Covid and we turn to experts in the field to give a glimpse into their realities and what they feel the future looks like in a Covid-19/post Covid-19 era. 

You should join us as we sit with co-founder of Accountable Equity, Josh McCallen, Dusty Batsell, Executive Vice President of Real Estate for Baceline Investments, and Loe Hornbuckle, CEO of The Sage Oak Boutique Assisted Living and Memory Care. 

Register and join us live here.

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