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.

Residential Lenders Tighten Their Lending Standards – Why This Is Good News for Multifamily Investors

A little more than a year before the onset of the coronavirus pandemic, I wrote a blog post entitled “Why I Am Confident Multifamily Will Thrive During and After the Next Economic Correction” (which you can read here).

The economy was experiencing a record long expansion and showed no signs of stopping. However, like most economic expansions, various economic and real estate experts were warning about an impending recession.

“The stock market is inflated” and “real estate prices and rents will not increase forever” they said. 

However, whether the economy continued chugging along or experienced a minor or massive correction, I was confident is multifamily real estate’s ability to continue to perform. 

My confidence was not emotionally driven or biased because I am a multifamily investor. It was based on my analysis of the facts. The most telling fact was the change in renter population

Historically, more people rent during recessions (which is one of the reasons why I was attracted to multifamily in the first place) and more people buy during economic expansions. The former held true for the 2008 recession as more people began to rent. However, during the post-2008 economic expansion, the portion of renters continued to increase (more US households were renting in 2016 than at any point in 50 years). 

Therefore, I predicted that the portion of renters would increase or, at minimum, remain the same during and after the next correction. 

Then, coronavirus hit and induced an economic correction (or a temporary slowdown, depending on who you ask).

But, sure enough, a study published on June 17th, 2020 projected a decline in homeownership and concluded that  “the demand for rental housing will increase somewhere between 33% and 49%” between 2020 and 2025.

In both my January 2019 article and the June 2020 study, one of the reasons why more people are renting is due to tightened lending standards (other reasons were student loan debt, inability to make a down payment, poor credit, and people starting families later).

A metric that is used to measure lending standards is the Mortgage Credit Availability Index (MCAI). The MCAI is based on a benchmark of 100 set in March of 2012 and is the only standardized quantitative index that solely focuses on mortgage credit. A decline in the MCAI indicates that lending standards are tightening while an increase in the index are indicative of loosening credit.

Between December 2012 and November 2019, the MCAI was steadily trending in the positive direction, increasing from the high-80s to the high-180s.

  

However, starting in December 2019, the MCAI began to decline. The three largest drops were in March 2020 (decline of 16.1% to 152.1), April 2020 (decline of 12.2% to 133.5), and August 2020 (decline of 4.7% to 120.9, the lowest since March 2014).

Joel Kan, Mortgage Bankers Association’s Associate Vice President of Economic and Industry Forecasting said in the August 2020 report, “credit continues to tighten because of uncertainty still looming around the health of the job market, even as other data on loan applications and home sales shows a sharp rebound. A further reduction in loan programs with low credit scores, high LTVs, and reduced documentation requirements also continued to drive the overall decline in credit availability.”

People will always need a place to live. Their only two options are to rent or to own. As indicated by the massive MCAI declines since the end of 2019, less and less people will be able to qualify for residential mortgages. The programs available to people with low credit or who cannot afford a high down payment have disappeared. 

Therefore, by default, more people will be forced to rent.

One last interesting thing to point out is how the MCAI during the current economic predicament compares to the 2008 recession. 

Here is an expanded MCAI graph that shows credit availability back to 2004. The pre-2011 data was generated biannually, making it less accurate than the post-2011 monthly generated data. However, the graph still highlights an important point. At least as it relates to the availability of credit at the time of this blog post, the current economic recession is nowhere near as severe as the 2008 recession.

To receive the monthly MCAI report, click here.

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The CashFlow Quadrant – How I Save Thousands on Taxes (Legally) 

One of the most life-changing discoveries came to me years ago when I realized I was earning income the wrong way. This was uncovered when I read the book, “Cashflow Quadrant” by Robert Kiyosaki. It’s a powerful book that helped guide me to become a full-time investor and to make financial freedom a top priority. Additionally, this book has single-handedly helped me save thousands in taxes over the years.  

Source: https://www.richdad.com/taxes-stealing-your-money

 

As you can see in the diagram above, each quadrant (E, S, B and I) represents a different way to generate income. Some people earn money in only one of the quadrants, while some earn money in multiple quadrants. There are advantages and disadvantages to each quadrant.

The two quadrants on the right side (B and I) are the primary paths to financial freedom. The majority of the Cashflow Quadrant book is about the unique skills and mindsets required to succeed on this path. If you haven’t checked out this book, it’s a worthwhile read. You can learn more here.  

Let’s Explore Each of The Four Quadrants:

E – Employee

An employee earns income via a job. This is the quadrant where most people earn their income. The job itself is owned by a business, which could be a single person or a large corporation. The employee exchanges his or her time, energy, and skills to an employer in exchange for a paycheck and often other benefits such as healthcare coverage and/or a retirement account match.

Employees can make a little or a lot of money, but when an employee stops working, or if the business goes under, the income stops.

The lack of control over income is a serious consideration of the E quadrant and something I became intimately aware of when I worked in the oil industry and layoffs began to occur around 2015. An employee’s financial freedom is dependent upon the success of the employer and the ability to show up to work and exchange time for money. 

Kiyosaki points out that the reason as to why most E quadrant workers pay around 40% of their income in taxes (as shown in the diagram above) is simply because most personal expenses aren’t deductible. You can’t, for example, deduct the expense of your personal car from your taxable income. Below is a simple illustration for educational purposes only. Please seek professional, licensed tax advice from a CPA for more information. 

 

Tax Example: 

Federal Tax: 27% 

State Income Tax: 5% 

Social Security Tax Rate: 6.2% (half paid by the employer) 

Medicare Tax Rate: 1.45% (half paid by the employer)

Total = 39.65% in Tax

 

S – Self-Employed

Many employees eventually get tired of the lack of control over their pay and schedule and choose to work for themselves instead. A self-employed individual still exchanges time for money, but they “own” their job. 

Common examples of the S quadrant workers include dentists, doctors, insurance agents, realtors, handymen, among many other skilled trades. It is possible as a self-employed individual to earn a large income, but like an employee in the E quadrant, when they stop working, so does their income.

Self-employed workers have more control compared to an employee, but more often than not, they also have more responsibility. As a result, success usually means working harder and working longer hours. Over time, this can lead to burn out and fatigue as I also experienced first-hand in 2015 when I was actively investing in real estate with fix and flips and vacation rentals. 

Kiyosaki points out that the reason why most S quadrant workers pay the highest taxes, around 60% of their income (as shown in the diagram above) is that Social Security and Medicare Taxes are paid 100% by the self-employed individual (they are not split by the employer as is the case with an employee). Additionally, an S quadrant individual often earns more income compared to an employee and therefore can be in a higher tax bracket. Below is a simple illustration for educational purposes only. Please seek professional, licensed tax advice from a CPA for more information.

 

Tax Example: 

Federal Tax: 37% 

State Income Tax: 5% 

Social Security Tax Rate: 12.4%

Medicare Tax Rate: 2.9% 

Total = 57.3% in Tax

 

B – Business Owner

Those in the B quadrant own a business system and they lead other people. In this quadrant, the business often has 500 or more employees. The systems and employees who work for the business can run successfully without the business owner’s daily involvement.

Unlike the S quadrant where a plumber, for example, might own and work in his own plumbing business, a B quadrant business owner might create a plumbing company and hire 500 or more plumbers, administrators, managers, and other staff to run the systems in the company.  

 

The wealthiest individuals in the world typically own B quadrant businesses. A few of these individuals include Bill Gates of Microsoft, Jeff Bezos of Amazon, and Mark Zuckerberg of Facebook.

Kiyosaki points out that the reason why most B quadrant business owners pay around 20% in taxes (as shown in the diagram above) is because businesses can deduct a wide variety of expenses from the income of the business, which can lower the businesses income taxes. Additionally, the recently passed Tax Cuts and Jobs Act in 2017 allows for a qualified business income tax deduction of an additional 20% for eligible businesses. You can learn more here. Below is a simple illustration for educational purposes only. Please seek professional, licensed tax advice from a CPA for more information.

Tax Example: 

C-Corporation Flat Rate Tax Rate = 21% 

Total = 21% in Tax

 

I – Investors

Now to my favorite quadrant. The I quadrant is comprised of investors who own assets that produce income. This is the quadrant for truly passive income.

Investors in this quadrant have usually accumulated capital that was earned in one or more of the other quadrants and now they place that capital into income-producing investments to produce even more income. This is the magic formula for financial freedom. 

For example, an investor might purchase shares of a company privately or publicly owned in the form of stock. This influx of capital from the investor helps to fuel the systems created by the business owner, and this fuel can lead to even more growth in the business and for everyone involved. Investing in real estate is a common example of an asset that can produce passive income from collected rents and other income-generating aspects on the property. Investing passively in private placements (apartment syndications) has been my preferred asset class in the I quadrant. 

Kiyosaki points out that the reason why most I quadrant investors often pay as little as 0% in taxes, legally (as shown in the diagram above) is that long-term capital gains tax rates (for assets like stocks or real estate held the long-term) are between 0% and 20% depending on the individual’s tax situation. You can learn more here. Below is a simple illustration for educational purposes only. Please seek professional, licensed tax advice from a CPA for more information.

 

Tax Example: 

2020 Long-Term Capital Gains Tax Rate (For Single Individuals) Earning $78,750 or Less = 0% 

Total = 0% in Tax

 

Conclusion:

There are many paths to financial independence, but most of them lead to the right side of the Cashflow Quadrant – B and I. If you want to achieve financial freedom, it will pay to learn the skills and mindset required to make this move to the right side. I have earned income in the E, S, and I quadrants but the I quadrant has been the most impactful. This is because of a concept I refer to as “Time Freedom”. Which to me, means having freedom and flexibility over your time. When you have more passive income than you have lifestyle expenses, you become financially free. This is where a new world of opportunities and possibilities open up and the world becomes your oyster.     

To Your Success

Travis Watts 

Disclaimer: Travis Watts does not provide tax, legal, or accounting advice. This material in this blog/article has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction, investment, or other change. 

 

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The CDC Eviction Moratorium – What You NEED To Know

You may have seen recent headlines referring to an “eviction crisis”: 

The COVID-19 Eviction Crisis: an Estimated 30-40 Million People in America Are at Risk – The Aspen Institute 

 

Experts fear the end of eviction moratoriums could plunge thousands of people into homelessness – CNBC

President Trump signed an eviction moratorium order that effectively bans evictions nationwide through the end of the year. According to the Centers for Disease Control and Prevention (“CDC”), the moratorium order has been issued to provide housing stability and to prevent the further spread of COVID-19. However, it is important to note that rent is NOT cancelled through the end of the year. Let’s dive into how this order effects landlords and owners of real estate…

 

According to the moratorium, there are stipulations in order to receive this “eviction protection.”

Those who are eligible must meet additional criteria before presenting their landlords with a declaration, which will be made available on the CDC website. This criteria includes: 

  1. The resident has sought all available government rental assistance
  2. The resident will earn no more than $99,000 in 2020 (or $198,000, if filing jointly)
  3. The resident can’t pay their rent in full due to a substantial loss of income 
  4. The resident is trying to make timely partial payments, to the extent they can afford to do so
  5. The resident would, if evicted, likely end up homeless or forced to live in a shared living situation

What to do if you (the landlord) receives a CDC Declaration from a tenant?

 

According to Colton Addy from Snell & Wilmer Law, if a landlord receives a CDC Declaration from a tenant, the landlord should respond in writing to the tenant to encourage the tenant to make partial payments of rent (and similar housing-related payments) to the extent the tenant is able, in accordance with the CDC Declaration. Additionally, the landlord’s written correspondence should remind tenants that the rental amounts are not forgiven and will ultimately need to be paid. 

 

Additionally, many tenants may not be aware of the government assistance programs that are available to tenants to help tenants pay their rent during the COVID-19 Pandemic. Landlords should include a list of available resources that tenants can use to pay their rent. The Department of Housing and Urban Development (HUD) has stated that nonprofits that received Emergency Solutions Grants (ESG) or Community Development Block Grant (CDBG) funds under the CARES Act may use these funds to provide temporary rental assistance to tenants. 

 

The following websites provide information on federal assistance that is available:

 

www.hudexchange.info/programsupport

https://www.hud.gov/coronavirus

https://home.treasury.gov/policyissues/cares/state-and-local-governments 

 

Additionally, landlords should include other programs that may be applicable in their jurisdiction. Landlords may also consider filing an eviction proceeding for one of the reasons permitted by the CDC Order, but landlords should use caution in pursuing such actions as eviction proceedings in the current climate are likely to draw additional judicial scrutiny.

 

Penalties:

 

The penalties for individuals who violate the Order are severe, including:

 

 

  • A fine of up to $100,000 and up to one year in jail, if the violation does not result in a death; or
  • A fine of up to $250,000 and up to one year in jail, if the violation results in a death.

 

The penalties for an organization violating the Order are even more severe.

In summary, the moratorium order provides temporary relief to those residential tenants facing eviction who submit the required declaration, through the end of the year.  The order, however, does not absolve a tenant from paying rent or restrict a landlord from applying penalties, interest, or late fees on the tenant’s account for non-payment of rent.  Additionally, the order does not relieve landlords of their debt service obligations if a tenant seeks relief under the order. 

 

Disclaimer: The materials contained in this blog post are for educational and informational purposes only. Nothing in this blog post is to be considered as the rendering of legal advice. Readers are advised to obtain legal advice from their own legal counsel. Additionally, please note that the orders and laws related to the COVID-19 Pandemic are changing on a daily basis and your jurisdiction may have stricter rules related to evictions in place. Please verify the rules currently affecting your property at any given time.

 

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9 Things to Consider When Converting Apartments to Condominiums

Besides the traditional three apartment investment strategies (turnkey, distressed, and value-add), condo conversions is another less common business plan that can be very lucrative.

The condo conversion investment strategy involves purchasing an apartment community, converting it from individual rental units to individual condos, and reselling the individual condos for a profit.

This post isn’t going to discuss which investment strategy is the best, because like most things in real estate, it depends on what you are interested in and what your goals are. However, if you do decide to pursue the condo conversion investment strategy, here are the 9 things you need to consider:

 

  • Speak to an attorney: First and foremost, speak with a real estate attorney that specializes in condo conversion projections. You need to know the state and local laws on condo conversions and the step-by-step process you must follow.
  • Vacating the property: The largest potential challenge is the process for vacating the apartment building. An attorney will tell you the laws that protect the rights of the existing residents. In some markets, the residents must be given a specific time frame of the notice to vacate. You may even be required to cover their relocation costs and give them a chance to purchase a completed condo. The longer it takes and the more expensive it is to vacate the property, the greater the holding costs.
  • Hidden fees: There are a lot of hidden fees involved in condo conversions, which the attorney can help you uncover. There are application fees with the city, surveying fees, attorney fees, and fees related to code compliance. Once the conversion is completed, the city will inspect the condominium for code violations, which you will be required to address. Therefore, another fee is associated with hiring a private condo pre-inspection specialist to inspect the property to give you an opinion on potential code violations and the costs of the repairs. Another hidden fee is the increase in insurance costs. Insurance on condominiums is generally higher than apartment insurance, so make sure you obtain a quote for the new insurance premium. Last are the upfront and backend fees you charge for putting together and managing the project.
  • Financing: You will need to speak with a mortgage broker who specializes in condo conversion projects to securing financing. This conversion needs to begin prior to placing the deal under contract so that you can estimate the debt service and other important loan terms, like I/O periods, loan term, interest rates, prepayment penalties, financing fees, and closing costs.
  • Timing: To determine the holding costs and hold period, you need to know the estimated timelines for each step in the condo conversion process. First, how long will it take to vacate the building? Once vacated, how long will the renovations take? How long will it take to list the condo units for sale after the renovations are completed (i.e., post-conversion requirements like setting up the HOA, inspections, etc.)? Lastly, what is the average days on market and closing timeline? Add these all together and you have the hold period and can calculate the holding costs.
  • Holding costs: The holding costs are the ongoing expenses paid during the hold period. These include insurance, taxes, utilities, and debt service. Since you will be generating no cash flow (or some cash flow in the beginning while vacating the property), these expenses must be covered by initial equity.
  • Renovation costs: There are four aspects of the renovation costs to consider. One is the cost to convert the apartment units into individual condos. Two is the investment amount is required for the common areas. Three is the cost to address deferred maintenance. Last is the size of the contingency budget.
  • Sales process: The first thing you need to know is the projected after-repair value of the condominium units, which requires a sales comparable analysis. You also need to consider the costs associated with marketing and selling (i.e., the broker’s commission) the condo units.
  • Limited partner compensation: Lastly, you need to determine the compensation structure offered to the limited partners who invest. What type of return will you offer (i.e., preferred return, profit split, or both) and when are they paid (i.e., after each condo is sold or when all condos are sold)?

 

To address all the above, you will need to work with at minimum an attorney, a mortgage broker, and listing broker, and a contractor – all who specialize in condo conversions.

Purchasing an apartment community and converting the rental units into individual condo units is an alternative to the traditional apartment investment strategies. However, you need to understand the laws surrounding condo conversions, the added costs, and the required team members to properly underwrite the deal, successfully complete the conversion and conserve and grow the investors capital investment.

 

 

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Why Multi-Family? Why Now?

Why Real Estate? 

Most people who are career focused and have money to invest or people who are coming to the end of a professional career, often look to real estate as a viable investment option either for building equity or for income generation. Unfortunately, real estate investing is typically thought to be a sole ownership strategy. Very few people are aware of the passive investing opportunities in multi-family private placements or “apartment syndications”. 

Why Multi-Family?

Syndications and/or private placement offerings are all about “pooling” your money together with other investors to purchase large assets that may otherwise be unattainable as a sole ownership purchase (for example, a 300-unit apartment building). If you have 10 million dollars to use as a down payment, you might have the means of purchasing an asset like this individually; however, if you prefer to only invest $100,000, that’s where a syndication structure can be a huge benefit and allow you to participate in a deal of this size. 

Why Value-Add?

I tend to invest in value-add projects. In this business model, the General Partner or Managing Partners and their teams often add value to the apartment community in a number of ways. Common value-add strategies include renovating the units, updating to modern appliances, countertops, in-wall USB ports, smart thermostats, on-site storage lockers, improve the landscaping, renovate the clubhouse, gym, pool, parking lots etc. Every property is unique and the business plan will be different for each; the overall goal is to update the property and match the current market demand while increasing below market rents along the way.

The value (price) of an apartment complex is primarily derived from the NOI (net operating income), which is comprised of the total collected rents and income minus expenses to operate the property. When the net operating income increases, the value of the complex increases. For example, let’s say the annual net operating income on a property increases by $100,000 a year. A $100,000 a year rent increase could potentially bump the purchase price up by nearly one million dollars (for example/educational purposes only). 

Why Invest? 

Multi-family real estate investing has a lot to do with diversification of an investment portfolio. There are two common reasons why people invest in real estate. Most people either invest and wait for the property to increase in value or “force” the appreciation (equity investing) or they rent it out and collect the cash flow (income investing). Why not do both? Value-add business plans are often designed to capture both of these strategies. 

Multi-family real estate is a diversified asset in itself. This is largely due to the fact that when you buy an apartment building, you are investing in many units. With single-family homes, you have (1) unit and (1) tenant. If your tenant moves out or doesn’t pay rent, you are 100% vacant and 100% unprofitable. With a 300-unit property, it is not uncommon to have the ability to lose 70-90 tenants at any given time, and still be profitable. The diversification does not stop there. Many people invest passively in syndications because they can spread out their risk geographically among several properties and Sponsors.  

Why I Decided to Invest in Multi-Family

In 2015, after a complete burnout of trying to expand my single-family portfolio, I decided to return to the drawing board in search of a more sustainable and scalable approach to investing in real estate. I was desperate to become a hands-off investor after realizing how active this business can be. In 2015, after reading 52 books, listening to podcasts, networking in real estate groups and seeking mentors, I ultimately decided that multi-family real estate was my solution. More specifically, investing passively in apartment communities via private placement offerings (syndications). 

These Were a Few of My Reasons:

  • I needed a hands-off approach to invest in real estate 
  • I wanted tax advantages equal to or exceeding single-family 
  • I wanted geographic and asset type diversification 
  • I was seeking a recession-resistant asset class
  • There was (and still is) a nationwide demand for affordable housing 
  • I wanted to leverage other people’s expertise, track record and deal flow

Whether you decide to be active or passive in the multi-family space, I wish you success in your journey. This asset class has truly been a blessing for my family and I. I have a passion for helping educate others in real estate. If you have any questions, please reach out anytime. I would be happy to connect on a call or email to help in any way I can.  

 

To Your Success

Travis Watts 

 

 

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“It is Too Difficult to Invest Out-of-State” Real Estate Investing Myth Debunked

There are three phases to a real estate rental investment. 

  • Find the deal
  • Acquire the deal
  • Manage the deal

Most real estate investors find it is easier to handle the three phases in a local market. 

Finding deals requires implementing lead generation strategies. Lead generation strategies are either remote (i.e., direct mail, online advertising, cold-calling) or in-person (i.e., bandit signs, driving for dollars, door knocking). If you are investing in your local market, you can take advantage of both lead generation categories.

Once you find a deal, you can drive to the home or building yourself to perform due diligence to determine and offer price. 

After you have acquired the deal, you can either self-manage or oversee a third-party property management company.

When investing out-of-state, your options for finding, acquiring, and managing deals are limited…or are they?

Theo recently interviewed Andrea Weule on my podcast, Best Real Estate Investing Advice Ever. She lives in the highly competitive Denver, CO market, so she buys rentals out-of-state. In that interview, Andrea debunks the myth that you cannot invest out-of-state and provides interesting ways to generate leads and perform due diligence remotely.

The first phase is to find a deal. Andrea finds her out-of-state deals in three ways. First, she works with a real estate agent who sends her on-market deals off the MLS. She says that ignoring the MLS results in ignoring low hanging fruit. 

Secondly, she creates a list of motivated sellers. Andrea’s targets home that have been owned for more than 20 years and where the owner is 55 years old or older. She finds that these owners are often motivated to sell. They are approaching retirement and are thinking about the next phase in their life, which may require the selling of their home.

Andrea uses ListSource to create this list.

Then, she sends a sequence of three mailers for each address. Rather than using a generic “we buy houses” letter, she creates a message that speaks more directly to the 55+ years old demographic. The letters include questions like “are you looking for your next adventure?” or “do you want to eliminate the stress of owning a home?” 

These first two strategies (direct mail and MLS) are remote lead generation strategies. The third strategy Andrea implements is traditionally performed in-person – bandit signs. However, rather than flying to the market and placing the bandit signs herself, Andrea hires someone local to the area.

The process is simple. She creates a job posting in the “gigs” section on Craigslist with the purpose of hiring someone to place bandit signs in the local market. Andrea sends them the bandit signs, which have a GPS tracker. The GPS tracker allows her to confirm that the sign was places in the correct location. Once the bandit sign is place, she requests that they send her a picture. Lastly, Andrea will send them their payment via PayPal.

Andrea uses a similar strategy for the second phase of the real estate investing process – the acquisition. If someone is interested in selling her their property, she performs basic due diligence to determine an offer price. 

Back to Craigslist. She will create another job posting. But this time, she is hiring someone to take pictures of the prospective property, as well as to do a Zoom Tour. With the combination of the pictures and video from the Zoom tour, she has all the information she needs in order to submit an offer.

 

Overall, it is a myth that it is harder to or that you cannot invest out-of-state. All it takes is a little creativity and the use of technologies.

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A Life Changing Technique – How to Read 52 Books A Year

A key ingredient to success is having the ability to consistently expand your knowledge and skills through reading. While it is true that many successful millionaires and billionaires dropped out of school early in life, most have continued the pursuit of knowledge and education in order to improve themselves.

Tony Robbins, a world-famous success coach coined the term “CANI”, which stands for Constant-And-Never-Ending-Improvement. Robbins emphasizes the importance of reading and improving ourselves if we want to be successful in our lives. From his book “Money: Master The Game” Robbins says…

“As a young man, I decided I was going to read a book a day. I didn’t quite read a book a day, but over seven years, I did read more than 700 books…”

 

A Few Additional Case Studies

Warren Buffet

The Chairman and CEO of Berkshire Hathaway and one of the richest men in the world spends 5 to 6 hours a day reading.

Bill Gates

The former CEO of Microsoft and one of the richest men in the world said that he reads about 50 books a year. 

Mark Cuban

Mark Cuban, a billionaire and the owner of Dallas Mavericks spends about 3 hours reading every day and he attributed his early career success in life to reading. 

Oprah Winfrey

Oprah is widely known for being an advocate for reading and she strongly recommends her talk-show viewers to adopt the habit of reading. Oprah often refers to reading as her “path to freedom” due to the tough start in her career. 

Mark Zuckerberg

Mark Zuckerberg, the founder of Facebook and a billionaire with a net worth of more than $70 billion is a strong believer in reading. Mark believes that if you want to improve the quality of your life, you must commit to personal growth and development. 

Elon Musk

Like many other successful billionaires, Elon Musk devoted a huge chunk of his time to reading when he was young. When he was in grade school, he read about ten hours a day. 

How Can YOU Benefit?

 

After realizing how many successful “reading advocates” there are, I decided to take a stab at an aggressive reading strategy in 2015, in the midst of transitioning from an active real estate investor to a passive real estate investor. 

 

I made a New Year’s Resolution in 2015 to read 52 books in one year (one book a week). But I knew I would fail if I tried to read books in the traditional fashion… one page at a time, front cover to back cover. So I decided to take a couple speed reading courses and I learned a powerful reading technique from a mentor of mine. Below is a technique that allowed me to read 52 books in one year. I continue to use this strategy today when I read non-fiction “How-To” or “Self-Improvement” books. 

 

A Reading Technique That Can Change Your Life 

 

Step 1 – Set aside (3) 15 minute or 20 minute intervals for reading each day (ie morning, afternoon, evening) and set a timer if needed.

Step 2 – Decide ahead of time what your goal is for reading the book. What are you seeking to learn from the book and how will that help you in your life or career? 

Step 3 Use a bookmark or sticky notes to save important pages or sections, use a pen to circle or underline key tips or ideas.

Step 4 – Read the front cover first, then the inside jacket, and then the foreword/introduction and first chapter. 

Step 5 – Then read the last chapter in the book. Next, circle back to the table of contents and select the most relevant chapters for your goals and only read those. 

 

The goal of using this technique is to extract a few key ideas, concepts, or takeaways that you can implement in your life. Statistically, most people only retain about 10% of what they read. This reading technique allows you to retain information quicker, more efficiently and offers you the ability to go back later and skip directly to the most relevant information by using bookmarks, notes and annotations. I hope this technique helps you expand your knowledge and skill sets and I’m sorry you were never taught this in school.  

 

To Your Success

Travis Watts 

 

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Turn a Decade Into a Year – How to “Knowledge Hack”

I love helping other people cut the learning curve. There have been several instances in my life where I condensed years and even decades of time by using a simple “Knowledge Hack” strategy. 

 

I Have a Question For You…

Have you considered having a mentor? Is it worth your time to read books, listen to podcasts, watch how-to videos, and network with others? 

 

Today I was researching some of the most successful people in America from the Forbes 400 List and realized that almost all of them had mentors at some point, and many still have mentors today. 

 

A Few Examples Include:

 

  • Bill Gates had Ed Roberts as a mentor
  • Oprah Winfrey had Mary Duncan as a mentor
  • Mark Zuckerberg had Steve Jobs as a mentor
  • Warren Buffet had Benjamin Graham as a mentor
  • Sam Walton (And family) had L.S. Robson as a mentor
  • Michael Dell had Lee Walker as a mentor 

 

Rather than thinking about having a “mentor” think of the word “coach” instead. It’s essentially the same thing, but using the word “coach” helped me put all of this into perspective years ago.   

 

A Quick Story

From 2009 to 2015 I did everything on my own as an active real estate investor in the single-family home space. It wasn’t because I thought I knew it all, it was because I did not see the need for a mentor or coach at the time. 

 

What I finally realized in 2015 (after 7 years of trial and error), was there were other people in the active real estate investing space who were operating much more efficiently than I was. They had more connections and were finding better deals and had a broader range of skill sets and ultimately… they were more profitable than I was. I had to do some soul searching, self-reflection, and take a long, hard, look in the mirror. Was active investing really the best use of my time and skills? 

 

What Happened Next?

I made a decision to start partnering with investment firms who had better skill sets, track record, connections, and efficiencies than I did. I essentially “piggybacked” off their success by becoming a limited partner investor in other people’s private placement offerings (mostly in multifamily apartments). This provided a hands-off approach to investing where I had the best of both worlds. I could participate in real estate, which I love and enjoy, while not having to be “in the business” of real estate in an active way, which I did not enjoy. 

 

After dedicating some time to networking, reading, listening to podcasts, watching how-to videos and seeking mentors, I inevitably became a full-time passive investor in real estate. I left the active single-family strategy behind because I was tired and burned out from trying to do it all myself, trying to make the right calls and know all the ends and outs. In addition, the hands-on approach was taking too much time away from the things I loved doing. I had far less spare time because my real estate projects were consuming more and more of my availability. 2015 was the beginning of an entirely new education process that has been life-changing to say the least.  

 

Takeaway

Mentors can come in many forms. The best advice I ever received was to seek out a mentor or “coach” who is doing what you want to do and is successful at doing it…because success leaves clues. 

“If I have seen further than others, it is by standing upon the shoulders of giants” – Sir Isaac Newton

 

To Your Success

 

Travis Watts

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Can You Digitally Invest In Real Estate?

Can You Digitally Invest in Real Estate? – How to Leverage Technology in 2020

Welcome to the digital world of real estate. Though it’s not an entirely new concept, it can be done 100% online…if you choose to embrace a digital model.

Do you remember…

  • Driving local neighborhoods looking for properties?
  • Meeting with brokers and realtors to walk the properties?
  • Going to your rental properties to show them to a potential resident?

Those days are still here…but they are completely optional. Today you can also…

  • Take virtual tours of properties and read through detailed property overviews
  • Leave walkthroughs and broker meetups to a General Partner or Sponsor Team
  • Leave resident showings to a professional property management company

The digital model I am referring to is investing in apartment communities through a syndication. Real estate syndications are a way for investors to “pool” their capital together in order to invest in properties much larger than most can afford or want to manage on their own. For example, let’s say a 300-unit apartment building requires an $8,000,000 down payment. This property could be purchased by 80 individual investors who each invest $100,000 and then share in the profits.

A Quick Story

I made a life-changing decision in 2015. From 2009 to 2015 I was actively investing in real estate, buying my own properties, managing my own properties, and building my own network. The problem was, the more I expanded my real estate portfolio, the less time I had. I had set out in 2009 with a goal to one day acquire 50+ single-family homes and retire with the “good life”. Before reaching 20% of my goal, I was already burning out and I was increasing my stress levels with each property I acquired. Was I building a life of freedom or a part-time job?

The Break-Through

After a mental reboot and several months of educating myself on how to become a passive investor, I finally found the solution; investing in syndications. More importantly, it was exciting to learn how to reap the benefits of real estate that I loved so much (the debt leverage, the tax advantages, the cash flow and the appreciation) without having to be hands-on and without having to trade time in exchange for money. Partnering with an experienced team and leveraging their resources opened a new world for me. The best part was, it was much easier than what I was doing already.

The Digital World of Real Estate

After switching investment models, I began to realize the impact digital tools can have on your real estate success. For example, the ability for a California-based investor to meet a New York-based Syndicator over a Zoom call. Or the ability to attend a webinar or conference from the comfort of your home, or the convenience of using Google Maps to drive out of state neighborhoods to vet out investment opportunities. Over the years, I developed a passion for helping investors learn how to scale their real estate portfolios digitally and passively, so they too can benefit from the power of “Time Freedom” which has had a major impact on my life and the lives of many others.

What Is Time Freedom?

Time Freedom is the ability to do what you want, when you want, as much as you want with your time. It is essentially having freedom over your time, but it is not for everyone. If you are looking to create more time in your life and focus on the things you love doing and reduce the time you spend on the things you do not enjoy doing, then it might be worth pursuing. It has been an enlightening journey to be an educator on this topic and to help others achieve success. Feel free to reach out anytime if you or someone who know would like to learn more about passive investing and how it could benefit your specific situation.

“Being Rich is Having Money; Being Wealthy Is Having Time” – Stephen Swid

To Your Success In 2020,
Travis Watts

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Wealth Education For Your Children

Wealth Education For Your Children

If you’re a parent with a high net worth who cares about your children’s future, teaching youngsters about wealth management is imperative. Without the proper guidance, it’s easy for privileged progeny to quickly squander their money. Even worse, kids who don’t know how to handle money responsibly are far less likely to develop good character. Here are a few tips to ensure that your offspring can manage money intelligently.

Demystify Compound Interest Early

Without a doubt, understanding the nature of compound interest and learning how to leverage it wisely is the key to long-term financial success. Adolescents need to learn early on that compounding interest is often the albatross that sinks even the sturdiest of ships. Setting up a savings account that compounds monthly for a child will show them the power of compound interest in an extremely visceral way.

Help Them Start a Small Business

Few things in life teach an adolescent more about wealth creation and preservation than running an enterprise of their own. Whether it’s a lemonade stand or a leaf-raking service, operating a part-time business will teach kids the value of hard work and perseverance. Furthermore, starting a small business will allow children to familiarize themselves with the legal and bureaucratic hurdles that entrepreneurs have to negotiate.

Get Them Started Trading Stocks

Sooner or later, children need to understand the importance of investing in publicly traded companies when it comes to building wealth. Encourage them to play around with a trading simulator like MarketWatch Virtual Stock Exchange or Wall Street Survivor to get their feet wet. Stress the importance of structuring a portfolio that boasts a sensible mix of blue-chip stocks that pay dividends and more speculative start-up plays.

Put Them to Work on the Ground Floor

Those who’ve never held down a high school job that pays minimum wage have missed an amazing opportunity to grow as people. Quite a few notable wealthy parents push their kids into working entry-level jobs for a variety of reasons. Flipping burgers and washing dishes at a young age makes you a more empathetic and fiscally prudent adult later on in life.

Involve Them in a Rental Investment

If you want to show a young adult the surest path to financial success, introducing them to property rentals is a solid idea. You don’t even need to own an apartment complex or a mere duplex to get started. Buying a small parking lot or even a single space in a congested area works just as well. Showing them how to invest in REITs is another solid alternative.

Teach Them to Manage a Budget

Sticking to a budget is often the difference between long-term financial success and utter ruin. You can teach kids the importance of prudent financial management during their most impressionable years with an allowance. Give them a specific amount of money per month to spend and hold the line when it runs out early. Doing so will ensure that they develop discipline and a dedication to saving.

Stress the Importance of Charity

When you examine the lives of ultra-successful people, you often find that the most charitable characters make the most money. They also seem to enjoy their lives far more than those that don’t give back to society. Get your kids to contribute what money they can to charitable organizations early and often. Better yet, help them to organize a charity of their own for a worthy cause.

The Key to Effective Wealth Education for Kids

Bombarding youngsters with a lot of information all at once is a bad way to teach any lesson. Starting early and doling out little nuggets of wisdom gradually is the best way to develop a healthy understanding of wealth management and growth. No matter how smart a kid might be, he or she can’t possibly learn everything there is to know about managing money in a day.

 

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The 2 Secrets to a Successful Lemonade Stand

It started with a Facebook post.

“Our 5-year-old wants to do a lemonade and popcorn stand during our community yard sale this weekend. As her business consultants, we need to provide her some market research to help maximize profits. So we need your help:

  1. How much would you pay for a glass of fresh lemonade?
  2. What size cup of lemonade would you like for that price?
  3. Would you prefer fresh lemonade from actual lemon juice or the fake Country Time kind?

Any and all other advice is also welcome!”

I felt the need to reply because the responses suggested the flavor of lemonade, the pricing of lemonade, the brand of lemonade, the types of cups, etc. All relevant things but all were, in my opinion, missing two keys to an incredibly profitable day.

I won’t get into the details on how to execute a lemonade stand. There are plenty of helpful articles already written about – here a just a few examples:

However, I will discuss two critical elements to your lemonade stand that most people don’t consider.

 

Key #1: If you are a commodity business then get out as quick as you can.

The definition of a commodity is a mass-produced unspecialized product. Lemonade is definitely a commodity.

People expect to pay a certain price because they know how much lemonade should cost. They know the cost of lemons (or Country Time) and the cost of cups. However, if she adds a bonus gift to each paying customer, she is no longer selling a commodity and, as a result, can charge much more.

One suggestion I provided in my Facebook reply for a bonus gift was a custom drawing by the 5-year-old. She could create 20 drawings leading up to the lemonade sale. This would give her limitless upside on her price point.

 

Key #2: Location matters. You can do the right thing at the right time but if you’re in the wrong location then it won’t work.

I came across a lemonade stand while I was on a jog. The kids had strategically placed their stand at the beginning of a dead-end road that was next to a well-traveled road that had a stop sign. It was brilliant. Potential customers had to step at the stop sign, which forced them to make eye contact with the kids who also had massive signs promoting their delicious lemonade. Don’t want to get out of the car? No problem, as the kids offered a drive-thru feature where they’d conduct the transaction at your window.

So, my advice for the 5-year-old’s lemonade stand: find an intersection where there are stop signs and a safe way for people to pull to the side to buy a cup of lemonade. And the number one priority is to stay SAFE. It won’t be successful lemonade business if hospital visits are part of the business plan. Clearly, you want to be on a street with a low speed limit and has sidewalks. The main thing to keep in mind, in addition to safety, is where do people usually stop? And be in those spots.

After my Facebook podcast, I talked about it on my podcast (click here for a clip of the part I talked about the lemonade stand). I have received a lot of feedback on this episode. One person even emailed me and said he and his son implemented by advice. Here is his unedited email:

“FYI this is Dan Nunney, the Golf Cart Guy. I’ve invested in two of your most recent DFW deals.

Thought I’d share this with you because, well, this was your idea. I heard it on one of your podcasts and thought it was perfect. We took it one step further and added mystery pokemon cards to the offering. People loved the drawings along with their names incorrectly spelled out.

This right here is an entrepreneur in the making. Like any good businessman, he immediately started counting his money at the end of the day. $18 GROSS, $4.49 COGS (extra ice), $13.51 NET. It didn’t hurt that we had a captive audience b/c the park water fountain was broken!

Thanks for the recommendation.

-DN

PS: We came out a little too strong at $2/per, and had to quickly drop to $1, and then the dollar bills started flowing. Great learning experience.”

Here are a few pictures from the stand:

How can you apply these lessons to your real estate investing business?

First, offer services that are not commodities. For example, in addition to offering our passive investor a solid return on investment for our deals, we send them monthly Best Ever reports in the mail, I send them free copies of my books, I hosted in-person happy hours across the country, and I have many other unique ideas in the works. Ask yourself, “how can I be unique, stand apart from my competitors, and not offer a commodity?”

Secondly, make sure you are investing in the best locations. I am not going to go into this point in more detail. If you want to learn how to follow this lesson, click here for my ultimate guide to selecting a target real estate market.

 

Are you an accredited investor who is interested in learning more about passively investing in apartment communities? Click here for the only comprehensive resource for passive apartment investors.

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Best Ever Conference

The First Timer’s Guide to the Best Real Estate Investing Advice Ever Conference

The Best Ever Conference is the only world-class real estate investing conference built around your goals.

Our speaker selection process isn’t about who we know. It’s about what you want to know!

With over 50 industry influencing speakers and over 1000 attendees from across the globe that last year represented an estimated $20B assets under management and 1.4M monthly podcast downloads, the conference can be overwhelming for a first-time attendee. So, we developed this First Timer’s guide to ease your mind and help you get the most value out of your time at the Best Ever Conference.

 

1. Preparation

What to Wear: Our advice is to wear whatever you feel most confident in. Want to wear a t-shirt and jeans? No problem. You won’t be alone. Want to ball out in your designer suit? Other’s will as well. And, of course, anything in-between is fair game too.

Dress to impress, but don’t wear a specific outfit because you think you are supposed to look a certain way. Best Ever attendees cover a wide-range of real estate investing niches, so you will fit in no matter what you wear.  I would, however, avoid wearing fitness shorts or sweat pants.

Also, keep in mind that the Best Ever Conference is in Denver, CO, at mile-high altitude in February.  So make sure you bring your winter gear (or buy winter gear if you are lucky enough to live in a state that doesn’t experience harsh winters) if you are venturing outside the Gaylord Rockies resort.

There are also happy hours and after parties at night, so you may want to bring a change of clothes for the evenings (and your dancing shoes).

Lastly, some Best Ever attendees use the conference as an opportunity to vacation in Colorado either before or after the conference – skiing and snowboarding being the most popular. If this is the case for you, don’t forget to pack your snowboard, skiing, or sledding gear.

 

What to Bring: In addition to your attire, here are some other items you’ll want to pack:

  • Cell phone and charger: I know, this is likely a no brainer and for most of us our phones don’t leave our sides anyways. But your cell phone or tablet will be invaluable during your time at the Best Ever conference. Capturing contact information. Scheduling future meetings. Using the Best Ever Whova app (see below). Taking pictures with your favorite speakers. Etc. While there will be plenty of outlets to use for ongoing charges, I recommend buying one of those portable chargers. You won’t want to miss out on a speaker or networking opportunity because you’re stuck in the lobby charging your phone.
  • Recorder: All of the speaker’s presentations are available for download on the Whova app. However, most of the best content provided won’t be in the presentation. A great way to make sure you don’t miss anything and to re-listen to your favorite presentation is to record it. Bring a standalone recorder or use your cell phone.
  • Business Cards: While I don’t recommend handing out as many business cards as possible, you’ll still want to bring some to pass out after having an in-depth conversation with someone. Some people only use digital business cards (i.e., saving other’s contact information in their phone), but since the Best Ever conference has a vast diversity of attendees, others still like the old school, tangible business cards. Again: don’t hand out as many business cards as you can! Not an effective strategy (see “One New Relationship Per Day” below)
  • Notebook and pen: You will be provided with a notebook and pen at the Best Ever Conference. And you can also take notes in the Whova app. But most of our attendees bring their own personal notebooks and writing utensils anyways. As I will outline below, you will also want to do some reconnaissance prior to attending the conference, so make sure you bring the notebook with your recon notes.
  • Extra room in your luggage: Plan to leave extra room in your luggage for free swag you pick up at the booths, items you buy in Denver, and – if you are lucky – the giveaway prize you won!
  • Outcome for Attending: This is the most important – make sure you have a specifically defined outcome for attending the conference. By the end of the conference, what do you want to achieve? How many new relationships do you want to form? How many follow-up meetings do you want to schedule? What speaker or attendee do you want to speak with?
  • Snow-sport Equipment: If you’re an avid skier or boarder, there will be plenty of rental and demo gear at Keystone mountain or any other mountain in CO. But if you prefer your own set, then bring it along for some epic mountain networking!

Download the Best Ever Whova App: Once you purchase your ticket to the Best Ever Conference, download the Whova application in the app store on your smart phone. The Whova app is where you will find the full agenda for the conference, speaker list, event details, giveaways, everyone else who is attending the conference, and much more.

We will send you the code to join the Best Ever application prior to the conference.

When you download the Best Ever app, you will receive email alerts prior to the conference with important information you need to know. You will receive ongoing alerts during the conference for each session and messages from other attendees. After the conference, you will receive ongoing email alerts with surveys, photos, job openings, and session notes and videos.

Explore the Best Ever app prior to attending the conference so that you are able to effectively use it during and after the conference.

Read Up on the Speakers: The full list of speakers, what they will talk about, and when they will be speaking will be available at BestEverConference.com and on the Whova application. We recommend investigating each of the speakers prior to attending.

Determine which speaker’s sessions you want to attend. Write out a list of questions you want to ask them one-on-one (that’s right, you’ll have plenty of opportunities to speak with each of the presenters). A great way to stand out in the mind of a speaker is to bring up a piece of relevant personal information when talking to them – like something you both have in common. It shows that you were prepared!

Two days may seem like a lot of time, but it will go by faster than you think. The attendees who get the most out of their experience and the Best Ever conference plan their days ahead of time, which requires knowing which sessions to attend based on the speakers, their investment niche, and their outcome for the conference.

 

2. At the Conference

You’ve made it to Keystone. You’ve set your alarm extra early. You show up to day 1 ready to learn and network. Here are some tips for getting the most out of your time at the Best Ever Conference.

Speakers, Booths, Networking Balance: The three main things you’ll do at the Best Ever Conference are listen to speakers, browse the exhibitor booths, and network with speakers and attendees. All of these are important so you’ll need to focus on how to get the most out of all there.

First, research each of the speakers before the conference. Break the different sessions into three categories: must attend, would like to attend, don’t need to attend. Now, the first part of your schedule is set – you know that you will be listening to the must attend sessions and may be listening to the would like to attend sessions.

Next, take a look at the exhibitors at the Best Ever conference. Which exhibitors do you want to meet? During one of the “don’t need to attend” sessions, try to make your rounds to the exhibitors based on your preparations.

The remaining time should be spent networking with speakers and other 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 before their presentation or later on in the day/the next day after they’ve presented.

When it comes to networking with attendees, do your best to research them on the Whova app. As I mentioned in the beginning of this post, there will be over 500 attendees. Rather than only talking to random people (which is still something we recommend), find out who you want to speak to beforehand, message them on the Whova app, and schedule a time to meet. It can be during a session, during breakfast, lunch, or dinner, or at the after-party.

One New Relationship Per Day: Handing out as many business cards is not the most effective use of your time at the Best Ever Conference. Instead, I recommend focusing on creating one new deep relationship each day. Day 1, find someone (ideally someone you’ve researched beforehand and you know you want to meet) and form a relationship with this person throughout the course of the day. Sit next to them during sessions. Grab breakfast, lunch, and/or dinner with them. Form a relationship that is more than just surface level. Learn about their outcome for attending the conference. Learn about their business and goals. Learn about them personally. And most importantly, find out how you can add value to their business. More on this later in the post.

When you form this deeper relationship, you will know how to add more value to their business (and vice versa) compared to speaking with them for a few minutes, handing them a business card, and repeating the process with someone else.

One deeper relationship is better than speaking with tens of people for a few minutes and handing them a business card. Trust me!

Use the Best Ever Whova App: The Whova app is going to be your best friend during the Best Ever conference.

  • You can create a profile so other attendees can learn more about you
  • You can view the entire agenda for the conference
  • You will receive notifications when a new session begins
  • You can download the speakers’ presentations, click on their biography, and leave comments on about what you learned.
  • You can browse the list of conference attendees
  • You can send and receive messages from attendees, speakers, and exhibitors
  • You can create a post or browse existing posts in the community forums
  • You can browse open job listings
  • You can post pictures
  • You can participate in giveaways
  • You can earn points the more you use the app
  • And much more

Download the Whova app prior to the conference and spend a few minutes getting familiar with the app’s functionalities.

Don’t Leave Until Sunday!: If possible, stay for the entire duration of the conference. Most attendees fly in Wednesday night or Thursday morning so they can register early, start attending social events before the conference, and take advantage of the mountain resort while ensuring they are rested and ready to rock-and-roll for the first official event. And most attendees fly out Sunday night or later so they can maximize their time at the conference, attend  after-parties for fun, and do even more networking.

I understand that you have a busy business and personal schedule. But by flying out Saturday night, you’ll miss the last few sessions, a chance to win one of the giveaways, the group picture, the after-party, and time to network with attendees and speakers.

 

3. Post-Conference

The value from the Best Ever Conference doesn’t stop at the end of the after party. Here are some tips to continue to get the most out of the Best Ever Conference after you’ve returned home.

 

Follow-Up: One of the first things you should do the Monday after the Best Ever conference is to follow-up with all the new people you met. The sooner you follow-up, the better. It will increase your credibility with the other person. Plus, the content of your conversation will be top of mind.

My go to strategy after attending a conference is to send a follow-up message on LinkedIn. In this message, I include a piece of information that was brought up during our conversation. Also, I try to immediately add value to their business. When you spoke with this person, what was their outcome for the conference? What are their grander business goals? How did you determine you could add value to their business? If you can do something for them that helps them achieve their outcome or goals, do so in the message. Offer to help them yourself or provide them with a reference to someone who can.

If you spoke with someone at the conference and made a commitment to them, whether it’s scheduling a meeting, sending them a referral, sending them a piece of content, etc., do so one Monday as well.

Implement Lessons Learned: When you leave the Best Ever Conference, you are going to have a MASSIVE amount of motivation! Don’t let that go to waste.

Immediately start taking steps to implement any lessons or strategies you learned at the conference into your business.

Discount for Future Conferences: An advantage of attending your first conference is the discounted price on next year’s event. Buy your ticket within the defined time frame at a significantly discounted price.

 

Click here to learn more about the conference, see the confirmed speakers, and buy your ticket today.

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student with books standing in a hall

What Students Will be Looking for in Housing Real Estate this Fall

The fall semester is around the corner, and, as a real estate investor, you couldn’t be more excited. 

You love renting out properties to college students, as these tenants offer consistent income during the fall and spring semesters. The question is, as you focus on filling vacant units, do you truly understand what students will be looking for in housing real estate this fall?

Here’s a rundown on what co-eds expect in their student housing real estate so that you can stay one step ahead of the competition with your housing amenities both now and in the future. 

Offer Value

A large number of students today claim that living in dorms on campus is becoming increasingly expensive. After all, although parents were historically the ones concerned about housing costs, budget-conscious students are now the ones looking for affordable options.

Specifically, research shows that students are conducting online research and shopping around for the best housing deals. In addition, they are not as easily motivated by giveaways as they were in the past. For example, giving a tenant a gift card or complimentary iPad when he or she signs a lease at your apartment community is not as enticing as simply offering an affordable, yet quality, housing option.

So, be sure to offer rent amounts that align with today’s fair market prices while still being relatively affordable to college students. Also, note that many students will divide their rent with roommates in an effort to lower their personal costs and, thus, more easily cover other expenses. 

There Are Many Options for Student Housing Real Estate

Today’s student tenants are also looking for many housing options at several price points. So, even though the current trend is toward budget-conscious housing, it is a wise move to offer options that will appeal to students with varying budgets. This is the same strategy that has been used in the hospitality world for decades.

For example, you may want to promote lower-cost apartment real estate options to undergraduate students, whereas you can target graduate students for your higher-rent properties. After all, graduate students tend to spend more money on housing than their undergraduate counterparts do.

Student Housing Real Estate with Excellent Housing Amenities

Today’s students are looking for practical amenities. For instance, it’s critical that you offer perks, such as parking, a gym, furnished units, and fast Internet. 

You’ll make your rental units more appealing if you optimize them to come with high-quality Internet with package and provider options. In addition, you could make Wi-Fi a bonus housing amenity that you wrap up in your rent prices or offer for free. In doing this, you eliminate a bill for students and provide them with the added convenience they’re looking for.

Convenient Laundry Capability

Offering a common laundry room or washers and dryers in your rental units is also a good idea if you want to attract students to your student housing real estate this fall. 

As a general rule of thumb, most busy students find it a hassle to go to the laundromat. Therefore, if you make washing their clothes easier for them, you’ll quickly become a winner in their eyes. 

Additional Popular Housing Amenities

Students are also interested in having access to a center where they can print items for free, and they wouldn’t mind having access to a fitness center. Popular amenities also include dedicated parking spots for tenants, along with plenty of storage space, excellent cell phone reception, and private bathrooms. 

Note that furnished apartments are also a major priority for today’s student tenants. So, be sure that each rental unit features basic appliances in the kitchen, tableware, and furnishings in the living room and bedrooms. Offering bathroom necessities, like shower curtains, can also make your units more attractive in a simple and inexpensive way. 

Student Housing Real Estate That is Near Campus and the City

This is, naturally, a major priority for many college students, so it’s a wise idea to purchase rental properties that are as close to campus as possible. Note that students generally want to be able to walk rather than having to bike or drive to their classes, campus jobs, or extracurricular activities. Therefore, housing within a mile of the college campus is preferable. 

Also, offer units within walking distance to entertainment, shopping, and dining. In this way, your properties will be more convenient for students all around and will also save them on fuel or bus fee costs. Even if your housing isn’t necessarily within walking distance to town, it should be near public transportation so that your tenants can easily get to town when they need to.

Start Attracting Students to Your Student Housing Real Estate Properties This Fall!

Drawing students to your student housing real estate option with the right housing amenities can seem like a daunting task considering the vast competition you face near a college campus. 

Start with developing an understanding of your target audience in your area and offer housing options that will appeal to them semester after semester. Work with me to learn more about how to maximize your potential as a real estate investor in a college town this year and the years ahead.

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Looking at The Sales Comparison Approach (SCA)

The approach is used as the basis for comparative market analysis (C.M.A.), which is an analysis of the prices of recently sold properties that are similar and within the same geographic area. It’s important to note that the sales comparison approach is not an official appraisal, and if a property is unique, a formal appraisal might be needed. One of the best ways to determine multifamily and commercial investment real estate value is by doing a thorough analysis of the property’s physical and financial status. CAP rates are another good way to compare your sale price with others who have sold in your area.

To get sales comparison information you can do things like:

  1. Visit websites like apartments.com and craigslist.com to search for similar properties and units
  2. Get the comparison from your broker
  3. Get survey for rents from your property manager
  4. Access a local MLS listing
  5. Walk the property and visit apartments yourself physically

Make sure that you compile all that data to the spreadsheet and focus on rent per square foot mainly to compare your property to another.

A few great places to start your search is by looking at research from the major real estate brokerage companies in your area as well.  A few of the national real estate brokerage firms that have great research reports are Marcus and Millichap and CBRE.

These companies produce research reports each quarter that you can get for free by registering on their websites.  These research reports can tell you very valuable information such as; what properties have sold in your area, what they sold for, going CAP rates in your area, and comparable price per unit sales information.  They can also tell you how your area compares to the rest of the US and their forecasts for how these numbers might change in the future.

As you may know we have a book when it comes to starting your syndication business from the ground up called “Best Ever Apartment Syndication Book”, so make sure you grab your copy and start making investments in yourself and building your real estate business and if you are you an accredited investor who is interested in learning more about passively investing in apartment communities? Click here for the only comprehensive resource for passive apartment investors.

 

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Two Common Real Estate Scenarios: Communication and Protection

Two Common Real Estate Scenarios: Communication and Protection

In this blog post, we’re going to be looking at two niche real estate scenarios that can happen to just about any investors.

The first scenario involves dealing with older potential clients and original buildings. If you’ve been in this situation before, you know that it can be quite a delicate process getting older owners to sell.

Communication Issues

Imagine this: You just found a potentially amazing off-market apartment building deal. It has 150 units and a $4 billion portfolio. It was purchased back in 1978, just over the 39-year expiration of the depreciation tax benefits law. The owner is in his late 80’s and purchased these buildings when they were first built at the time. You give him a call and ask him if he has any interest in selling, but he has trouble hearing you. He hands the phone to his caregiver, who abruptly says no and hangs up. What solution is there?

What one should do in this situation is to get curious. Start asking yourself some questions, then draft a letter to them. This is how you can learn more about their situation while introducing yourself to them. This is your chance to say, “I’m not sure where you’re at in this stage of owning these properties, but I can tell you that you might be worried about tax liability when you sell them. I have experience purchasing these types of buildings and I’d be happy to talk about some solutions any challenges you might be having.”

Penning a handwritten letter shows care and integrity. Keep in mind that many people of a certain age are struggling to keep up with the constant innovations and growth in the tech and digital world. A handwritten letter could be a breath of fresh air and a means to communicate that potential sellers may appreciate.

Protection From Embezzlement

Now, think of this scenario: You’re embarking on a general partnership in the real estate industry. It is your first time committing to such a project, and you’ve heard horror stories from colleagues involving embezzlement, fraud, and massive loss of funds. The general partner controls the business plan as well as the financial account connected to the project. You’re wondering how you can protect yourself from them embezzling funds from the operational account, and what auditing protocol you can use to protect yourself as a passive investor from theft.

There are several ways to approach this, but we can look at the most tried and true method.

You can have some checks and balances before the deal is done, which won’t be very much. After the deal is closed, though, you can do a lot more. For this scenario, we’ll look mostly at what a beginner real estate investor can do preemptively to stay safe in a general partnership.

There is no money for a potentially untrustworthy or shady general partner to take before the deal, but you can do some due diligence prior to a deal. If a shady partner is going to steal money from the entity itself, then they would have to do it afterward. This is because that is when the money is physically in the bank account.

Before the deal closes, there are a few things you should do. First off, you should absolutely take the time to look at the overall structure of the deal to make sure that there is at least an 8% preferred return. Make sure that the general partner is getting paid an asset management fee if and only if they are actually performing. If they’re proving themselves and they’re returning the preferred return, they can get that asset management fee. Otherwise, they get nothing.

Obviously, these are things that aren’t going to outright prevent someone from stealing money in a general partnership. When it comes down to it, they’re just small things you can do to ensure that the deal itself is set up in the mutual favor of you and your general partner, so that you have an alignment of interest.

Those are some things you can do before the deal. Another thing you should absolutely be doing before signing on anything with a general partner is to check those references. You can absolutely not go into a general partnership blind with no knowledge of who you’re working with. Even if the hearsay is overwhelmingly positive, you absolutely need to still check in with the partner’s references. By doing so, you’re going to get a really good picture of what the partner is all about.

Call their references and listen to what they have to say. We’re talking about past partners, firms, project managers, any business colleagues or people who have worked with this particular partner. Even if you get glowing reviews, you should then Google your partner. Those are things you’re probably already doing, but it really can’t be optional if you’re a baby real estate investor. You can be seen as an easy target because you don’t necessarily know the signs and symptoms of a parasite real estate partner. When you Google them, look for the partner’s name or firm title. And don’t be afraid to dig deep.

This doesn’t directly answer the question of how to make sure they’re not embezzling money, and we’re aware of that. However, there is some prep work that needs to be done on the front end to mitigate the risk of getting in with a group that is known for criminal activity. Sometimes that front end research is really all you need to check out.

What do you think about these two scenarios in real estate? Have you experienced either situation in your career? Tell us your real estate story in the comments below!

Image courtesy of Pixabay

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The Most Comprehensive Guide of Real Estate Conferences in 2019

In-person meetups and conferences are invaluable to real estate investors. Not only do we receive a world-class education from experienced real estate professionals, but we also network with other active investors, creating life-long relationships and maybe even future partnerships.

We recently hosted our third annual Best Ever Conference in Denver, Colorado. If you are looking for other conferences to attend this year, we put together this comprehensive list of real estate conferences in the second half of 2019.

If you are hosting a conference or know of a conference that is not on this list, please let us know by emailing info@joefairless.com and we’ll add it to the list.

 

Cruise to Freedom 2019

Host – Think Multifamily

Date – June 19th to 24th

Location – Enchantment Of The Seas Cruise Ship departing from Galveston, TX

Cost – Starting at $949

Who should attend? – Multifamily real estate professionals

Summary – Educational and pleasure cruise, where you’ll have opportunities to learn, as well as network and have plenty of time to relax and have fun together.

Conference Website

 

Connect Apartments

Host – Connect Conferences

Date – June 20th

Location – Los Angeles, CA

Cost – $299

Who should attend? – Multifamily real estate professionals

Summary – Multifamily’s most active players from across the country gather for insightful panels and networking to get deals done.

Conference Website

 

Connect Bay Area

Host – Connect Conferences

Date – July 18th

Location – San Francisco, CA

Cost – $149

Who should attend? – Commercial real estate professionals involved in the San Francisco market

Summary – Connect Bay Area will highlight the factors that are driving San Francisco’s commercial real estate growth, address critical shifting demands, identify who’s maintaining this momentum, and explain the best opportunities in the market not just today but in the near future.

Conference Website

 

Connect Texas Multifamily

Host – Connect Conferences

Date – August 15th

Location – Dallas, TX

Cost – $149

Who should attend? – Multifamily real estate professionals involved in the Texas market

Summary – Texas is home to three of the biggest multifamily markets in the nation – Dallas, Houston, and Austin – and tertiary markets where there is continuous growth. Connect Texas Multifamily highlights the multifamily market from a statewide perspective while addressing the important macro-economic issues and trends impacting the industry.

Conference Website

  

Connect Orange County

Host – Connect Conferences

Date – August 22nd

Location – Newport Coast, CA

Cost – $175

Who should attend? – Real estate professionals involved in the Orange County, CA real estate market

Summary – Join Orange County’s best for networking, conversation, leadership insights and a real take on what’s happening in the market

Conference Website

 

Ultimate Partnering 2019

Host – RE Mentor

Date – July 19th to 21st

Location – Boston, MA

Cost – $695

Who should attend? – All real estate professionals who are looking to grow their business, get money for deals, create a consistent cash flow stream and create a breakthrough to have your best year of personal and financial growth ever

Summary – Meet new partners, map out joint ventures, do more deals, do bigger deals, do higher profit deals, and cash more checks in an event format designed for you to discover the missing link in your business that’s needed to give you that big breakthrough you’ve been looking for.

Conference Website

 

Deal Maker Live

Host – Michael Blank

Date – July 25th to 27th

Location – Dallas, TX

Cost – $697 (regular ticket) and $1,597 (VIP ticket)

Who should attend? – Multifamily investors and syndicators

Summary – Syndicators and speakers will be  revealing how to get started, how to find deals, how to raise money, how to overcome challenges, how to scale your business, and how to get big payouts

Conference Website

 

Secrets of Successful Syndication

Host – The Real Estate Guys

Date – September 27th and 28th

Location – Dallas, TX

Cost – $997

Who should attend? – Current and aspiring syndicators

Summary – Discover how you can start, fund, and operate your own real estate investing business by helping wealthy people grow their wealth through real estate.

Conference Website

 

Apartment Investor Mastery National Conference (AIMNATCON)

Host – Brad Sumrok

Date – August 10th

Location – Dallas, TX

Cost – Starting at $97 and up to $297 for a VIP ticket

Who should attend? – Apartment investors

SummaryI’ll leave you with this special message about AIMNATCON from keynote speaker Robert Kiyosaki

Conference Website

 

Florida Multifamily Summit

Host – RealInsight

Date – October 16th

Location – Miami, FL

Cost – $299 to $999

Who should attend? – Full-time multifamily investors, managers, and developers

Summary – Hundreds of the most active and prominent investors, developers, owners, and operators in apartment and condos come together to gain critical market data and fresh insights on how to best win in today’s Florida hotter than hot multifamily landscape.

Conference Website

 

New York Multifamily Summit

Host – RealInsight

Date – October 31st

Location – New York City, NY

Cost – Invite only (must request an initiation)

Who should attend? – Qualified multifamily principals, service providers, and vendors

Summary – Hundreds of the most active and influential multifamily players from the greater New York City area come together at this highly interactive event that will address today’s toughest challenges in investment, development, financing, construction, deal flow, and property management.

Conference Website

 

Deal Analysis Workshop

Host – Think Multifamily

Date – November 15th and 16th

Location – Plano, TX

Cost – Waiting List

Who should attend? – Apartment investors

Summary – Learn about the many factors typically ignored when underwriting apartment deals and the key factors that must be considered before investing in an apartment deal. Through individual and group learning techniques, you are sure to leave this workshop with more confidence, more clarity, and more connections.

Conference Website

 

Residential Assisted Living National Conference

Host – Gene Guarino

Date – October 3rd to 5th

Location – Phoenix, AZ

Cost – Starting at $495

Who should attend? – Current or aspiring residential assisted living investors

Summary – Assisted living and senior housing are the hot topics in real estate, business, and investing and will only get hotter over the next 20 years. This convention is your chance to be at the forefront of this incredible opportunity in residential assisted living right now.

Conference Website

 

New Orleans Investment Conference

Host – Jefferson Financials

Date – November 1st to 4th

Location – New Orleans, LA

Cost – Starting at $595

Who should attend? – All investors

Summary – The one place where the world’s most sophisticated investors gather every year to discover new opportunities and strategies, exchange ideas, plan for the coming year, and enjoy the camaraderie of like-minded individuals in America’s most fascinating and entertaining city.

Conference Website

 

Multifamily Mastery Live 

Host – Jake and Gino

Date – October 19th and 20th

Location – Orlando, FL

Cost – Starting at $297

Who should attend? – Multifamily investors

Summary – Learn how to explode your wealth, create passive income, and become financially free by investing in Mom & Pop apartments.

Conference Website

 

NorthStar Real Estate Conference 

Host – NorthStar

Date – September 20th and 21st

Location – Minneapolis, MN

Cost – $295 (type in “earlybird” for a $100 discount through July)

Who should attend? – Multifamily, commercial, and residential real estate investors

Summary – This event gives 100% of the proceeds to charity. Speakers from across the nation will share how to grow and do more deals. This event will help you take your real estate investing to the next level.

Conference Website

 

Event or conference missing from this list? Let us know by emailing info@jeofairless.com.

 

Thank you to Jason Stubblefield for contributing to the creation of this comprehensive list.

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FOUR (LITTLE KNOWN) KEYS TO FINDING THE BEST MULTI-FAMILY DEALS IN YOUR MARKET

Four (Little Known) Keys To Finding The Best Multi-Family Deals In Your Market

Finding the best apartment deals can be a bit tough if you have no idea how to go about it.

You find yourself asking questions like:

  • How do I go about it?
  • Do I use a broker or not?
  • Where can I find the best apartment deals?
  • How can I get these deals when I find them?

It’s alright; everyone starts somewhere. And today, you’re going to learn a straight forward, direct approach to finding off-market deals in your area.

Let’s get started!

 

Start on the internet.

Sounds simple right?

That’s because it is…

No matter what your investing criteria, chances are you can find a list of matching properties on ListSource. From there you can skip trace to find the owner’s contact information.

Get in contact with the owners by sending them emails, using cold calls and sending text messages – using multiple contact channels increases your likelihood of getting them on the phone (which is where most real estate deals actually get done).

 

Buy directly from the seller if you can

I interviewed James Kandasamy, owner of Achievement Investment Group, who told us “Both of my first two properties were bought directly from the seller. We use our own strategy to get in touch with the sellers and work directly with them. That’s the primary point on why we were able to get it at a good price/door.”

It’s hard to depend on brokers because they have a responsibility to make sure that they get the highest price for the sellers as well. The best deals will typically come directly from the owner.

There are a lot of sellers out there with problems that they do not want to bring to the market, which makes it easier to get the best price directly from them.

The key is to build a relationship with the seller. Any real estate deal of this type needs to based on trust; without it, you’ll be lucky to get past the front door, much less to the signing table.

How do you build trust with a seller? By being honest and true to your word over time. But beyond that, the way you communicate and carry yourself throughout the deal will have a big effect on whether the seller feels they can depend on you.

As an example, here’s the text James Kandasamy sent directly his sellers;

“Hi, I’m an apartment investor in this region (Central Texas) and I saw your property at XYZ, and I’m interested in buying it. You can sell it directly to me, without any broker’s commission. Would you like to talk further?”

 

You have to be persistent.

Truth is you might have to send over 500 text messages to get a deal. The response you’ll get back will be about 1%.

But all the money is within that 1%. It’s a numbers game, like so much in our industry.

The key to building a stable deal pipeline is persistence in following up and staying in contact with the sellers. Most investors follow up once or twice and lose interest. See this as what it is: an opportunity. A truly dedicated and dogged investor can make headway, even in a crowded market.

 

Be a problem solver.

James Kandasamy advises, “The money you make is a direct correlation to the value you provide. For me, it’s always you have to solve some problem to get extraordinary returns. If you are doing a deal which is stabilized you may get a good deal, but you’ll get a much better deal if there’s a problem in that deal and you’re able to solve it.”

Be a problem solver and you’ll be able to handle deals that other investors will be forced to walk away from.

Let us know in the comments about some of the biggest problems you’ve solved in your deals!

 

Image credit: Pixabay

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Best Ever Apartment Syndication Book Named Top RE Investing Book to Read in 2019

The Best Ever Apartment Syndication Book was included on UpJourney’s list of Best Real Estate Investment Books (To Read in 2019).

The author of the list said, “after reading many books on real estate investing and trying all types of investing, Joe Fairless’ Best Ever Apartment Syndication Book was the most helpful in getting me to think differently. Instead of spending hours investing in single family homes or flipping houses, Fairless explains how to invest money in real estate that has a sponsor who manages the project for a pool of investors. This is the best book ever for learning the apartment building investment syndication process.”

Check out the full list here for other books that are inspiring active real estate professionals. And if you haven’t so already, pick up your copy of the Best Ever Apartment Syndication Book today!

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A clear blue sky behind the Statue of Liberty

10 Fastest Appreciating Housing Markets in the US

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

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

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

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

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

 

10. Seattle-Tacoma-Bellevue, Washington

The Seattle city skyline showing the Space Needle

Belkins Northeast

 

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

 

9. Denver-Aurora-Broomfield, Colorado

A pink and blue sky behind Denver skyline at dusk

Denver.org

 

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

 

8. San Francisco-Oakland-Fremont, California

The San Francisco skyline behind a cloud-covered Golden Gate Bridge

Lonely Planet

 

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

 

7. Reno-Sparks, Nevada

Residential houses and tall buildings in front of large, sandy mountains

Think Stock

 

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

 

6. Carson City, Nevada

"Welcome to Carson City, Nevada's Capital" road sign

Flickr

 

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

 

5. Olympia, Washington

Blooming cherry blossom trees in front of Olympia capitol building

Wild Tales Of

 

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

 

4. Bellingham, Washington

A Bellingham, WA aerial view showing harbor, land, and mountains

Wikipedia

 

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

 

3. Las Vegas-Paradise, Nevada

An aerial view of Las Vegas lit up at night

Time Out

 

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

 

2. Boise City-Nampa, Idaho

Snowy mountains behind Boise City cityscape

OneClass

 

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

 

1. Bremerton-Silverdale, Washington

A Bremerton-Silverdale, WA aerial view

Wikipedia

 

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

 

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

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paper decor for Thanksgiving on a table

What 16 Real Estate Investors Are Grateful For This Thanksgiving

This blog post was originally constructed and written for Thanksgiving of 2018. We enjoyed reading about what our fellow real estate investors are thankful for so much, we wanted to refresh this post for 2019. In the lines that follow, you’ll read about what some real estate investors from our Facebook group were thankful for last year, and what (if anything) they would change or add, along with some new perspectives from fresh faces. Specifically, we hear from real investors sharing what has helped them get to where they are in the business. Surrounding yourself with the right people, reading the right books, attending seminars and conferences, all has a direct impact on your success in this business. Here are what some successful investors say has been the most influential part of their business in 2019.

Happy Thanksgiving!

Real estate investing is a field that rewards hustling. Most of us are chasing down opportunities seven days a week. With Thanksgiving upon us, I thought it would be a could time to reach out to other leading investors to find out what they are thankful for. So I posed the question many of the country’s leading real estate entrepreneurs, What is a property or deal, person, experience, book, video, or conference that has been influential to your business’s success and you are grateful for?

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

Best Ever People

  1. Theo HicksJoe Fairless. Would have never gotten the confidence to pursue my first apartment syndication deal if I had never met Joe!
    • 2019: Theo’s update for 2019 might take the cake. As a new dad in 2019, Theo is thankful for his son. Writing this update right now, I can’t help but think about how his first answer was Joe Fairless, and now it’s his son. Theo has done fantastic work for Joe and in a way, is being taught the real estate investing world (and now teaching others too) through his work with Joe. Now Theo takes on the mentor role for his son. Full circle.
  2. Holly Williams – I would say this really smart kid named Joe Fairless from Texas in the Big City. Happy Thanksgiving to the Growing Fairless clan, my friend.
  3. Whitney Elkins HuttenLane Kawaoka and Chris Miles. Future Apartment Syndication Goals: Joe Fairless.
  4. Mike Knudstrup – 1. My local real estate entrepreneur group where a few presenters owned MHP’s (mobile home parks). 2. Parents of friends and acquaintances who owned parks and it worked for them.
    • 2019: This year, Mike takes a moment to appreciate all those who are loyal, honest, and faithful. In his words: “I especially include those people who work with/for me but also my tenants who honor their agreements. This year it has become increasingly apparent that I am unable to keep this thing going without them” being thankful for those who surround and support you is what this holiday is all about.
  5. Julia Bykhovskaia – My man Tony Robbins! It was at the right place at the right time for me two years ago. All I’ve heard is “you have to burn the boats,” have to “make a decision and have absolute certainty,” and “you don’t need to know how; the how will come.” Three months later I read Rich Dad, Poor Dad and got even more convinced that being an employee is not the way to go. Fifteen months later, I left my J.O.B.! the “how” of course became real estate.
    • 2019: Julia mentions that nothing has changed for herself, the answer is still Tony Robbins. She does add that a strong mindset, taking consistent action, and managing your emotional state are all crucial for success in business and life. I’m slightly jealous of her attending Date with Destiny next week, definitely a bucket list item. If you’re unfamiliar with Date with Destiny, check out “I Am Not Your Guru” on Netflix.

Best Ever Books/Podcasts/Videos

  1. Grant Rothenburger – Mine is lame but honest: Rich Dad Poor Dad for opening my eyes to real estate in the first place.
    • 2019: Another classic book, Think and Grow Rich, is added to Grant’s running list of what he’s thankful for in 2019.
  2. Trevor McGregorThink and Grow Rich by Napoleon Hill has been a game changer throughout my entire Real Estate Journey. I highly recommend it to anyone who hasn’t read it, or if you have read it, pick it up again or be sure to listen to the Audio Version (When you’re not listening to the Best Real Estate Advice Show Ever – Podcast with Joe). Happy Thanksgiving Everyone!
  3. Glen Sutherland – Long time listener of the show (Best Real Estate Investing Advice Ever). Appreciate all your time you put into it.
  4. Michael CollinsThe Strangest Secret, Earl Nightingale. Timeless advice. Thirty-one minutes long on YouTube, loaded with great information.
  5. Newcomer for 2019: Cody Rubio – Now that Cody is somewhat up with the times, he’s read Rich Dad Poor Dad, and has Think and Grow Rich queued up next. Those are undoubtedly two of the most influential books for many real estate investors. Another classic that Cody attributes some success to is Purple Cow by Seth Godin.

Best Ever Events/Moments

  1. John Jacobus – The first Best Ever Conference in Denver in 2017. This was a game changer in terms of forming new partnerships with real estate entrepreneurs, sparking new actions, and building momentum.
    • 2019: John took that 2017 momentum all the way to the end of 2019. Now with about three hundred mobile home pads across five properties, John has a tremendous start on a growing business. His 2020 is looking up!
  2. Adam AdamsBest Ever Conference
  3. Charlie Kao – A lot of moments but being on my very first podcast which happened to be BiggerPockets. I kept getting asked to be on other podcasts and had a lot of people reaching out to me for advice and it dawned on me how much more I was really capable of. I have doubled or tripled our business every year since the podcast.
    • 2019: This year, Charlie is most thankful for his wife Casity Kao. Thanks to their “explosive growth” they can enjoy the fruits and spend their time a little more freely with each other.
  4. Cory Boatright – 1. My first short sale that I stumbled into with negative equity and created a short-sale empire that made millions in revenue. 2. The first time I sold six-figures in one hour from stage in front of 500 people. 3. My experience at the end of 2012 with thyroid cancer. 4. I am grateful it happened because of GratefulProject.org and the many miracles that came from waking up and being aware of life in a new way. 5. Meeting my wife and two step kids. Skydiving to overcome my fear of heights?
  5. Dustin W. Miles – I wouldn’t say it was any one experience/book/conference, but a collection. One of the first memories I recall is from childhood. I played soccer on a team with a kid (we were around 10). His parents owned many skyscrapers around Fort Worth. I would say that first opened me up to the idea of “why not me?” I would ride my bike around Fort Worth wondering who owned all the other buildings. Fast forward to today, we are working on our ninth syndication in the past five years.
  6. Jason Stofer – For me this is easy…I just came from it! Adam Triple A Adams event Raising Money Summit!! I have already rewritten my business plan, reworked my website, and am now working on my mind-map.
  7. John Fortes – Grateful for real estate entrepreneur communities and networks such as these and all educational platforms whether it comes from books, podcasts, videos, and conferences as you mentioned. At the end of the day, I’m just happy and grateful to be here breathing this beautiful air and sharing this earth with my loved ones. Thank you for asking. Happy Thanksgiving & God bless!
    • 2019: New partnerships through those communities, platforms, and conferences he referenced last year, are what John is most thankful for (in his real estate business) this Thanksgiving. An important part to building relationships, according to John, is to be yourself and listen to them. People enjoy talking about themselves, so ask intelligent questions that allow them to do so.

Conclusion

What are you thankful for? Add your comment below and tune into my Best Ever Show for more conversations between experienced real estate entrepreneurs!

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10 Real Estate Tours Turned Haunted House Experience

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

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

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

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

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

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

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

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

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

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

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

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

Trash piled on top of a toilet in a dirty bathroom

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

 

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

 

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

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20 Tenant Horror Stories

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

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

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

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

 

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

 

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

 

 

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Apartment Syndication School

Apartment Syndication School

Welcome to the Syndication School

We created the Syndication School to provide you with a FREE apartment syndication education so that you have the tools to launch your own investment empire.
Each week, we will release two podcast episodes that focus solely on apartment syndications. For the majority of episodes, we will offer you a FREE resource, which will be available for download below.

Series #1 – Why Apartment Syndications?

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

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

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

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

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

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

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

Free Resource:

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

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

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

In part 1, we cover strategies 1 to 4.

In part 2, we cover strategies 5 to 9.

Series #4 – Tony Robbins’ Ultimate Syndication Success Formula

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

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

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

Free Resources:

  • Click here to download your free resource, the Annual Income Calculator. The Annual Income Calculator is a spreadsheet that automatically calculates how much equity you need to raise from passive investors in order to achieve your 12-month apartment syndication goal.
  • Click here to download your free resource, Tony Robbins Goal Setting Exercise. Watch the 35-minute goal setting video by Tony Robbins and complete the four-step goal setting exercise for your apartment syndication business.

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

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

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

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

Free Resources:

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

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

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

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

Free Resources:

Series #7 – The Power of Your Apartment Syndication Brand

In this Syndication School series, we will discuss the process of creating your unique apartment syndication brand.

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

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

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

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

Free Resources:

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

In this Syndication School series, we will discuss the process of building your apartment syndication team.

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

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

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

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

Free Resource:

Series #9 – How to Raise Capital from Passive Investors

In this Syndication School series, we will discuss the process of raising capital from passive investors.

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

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

In part 3 and part 4, we discuss ways to find passive investors.

In part 5 and part 6, we discuss the process of initially approaching and conversing with interested investors.

In part 7 and part 8, we discuss how to be prepared to respond to the 49 most common questions asked by passive investors.

Free Resource:

Series #10 – How to Structure GP and LP Compensation

In this syndication school series, we will discuss how to create compensation structures for the GP and LP.

In part 1, we discuss how to structure the GP compensation.

In part 2, we discuss how to structure the LP compensation.

Free Resource:

Series #11 – How to Qualify an Apartment Deal

In this Syndication School series, we will discuss how to qualify an apartment deal using a three-step evaluation process.

In part 1, we discuss step 1 of the apartment deal evaluation process – setting your initial investment criteria.

In part 2, we discuss step 2 and step 3 of the apartment deal evaluation process – underwriting and due diligence.

Series #12 – How to Find Your First Apartment Syndication Deal

In this Syndication School series, we will discuss how to find your first apartment syndication deal.

In part 1, we discuss the distinction between on-market and off-market deals.

In part 2, we discuss how to find on-market and off-market deals from real estate brokers.

In part 3, we discuss how to find off-market deals via direct mailing campaigns.

In part 4, we discuss 9 more ways to find off-market apartment deals.

In part 5, we discuss one real-world case study for how a syndicator found an off-market deal.

In part 6, we discuss two more real-world case studies for how a syndicator found an off-market deal.

Free Resource:

Series #13 – Breaking Down the Apartment Financials

In this Syndication School series, we will discuss the three pieces of information you need to underwrite a deal.

In part 1, we discuss the rent roll.

In part 2, we continue our discussion on the rent roll.

In part 3, we discuss the T-12.

In part 4, we continue our discussion on the T-12.

In part 5, we discuss the OM.

In part 6, we continue our discussion on the OM.

Free Resources:

Series #14 – How to Underwrite a Value-Add Apartment Deal

In this Syndication School series, we will discuss the eight-step process of underwriting a value-add apartment deal.

In part 1, we discuss steps 1, 2, and 3 of the underwriting process.

In part 2, we discuss ways to add value to apartment deals.

In part 3, we discuss step 4a of the underwriting process – setting assumptions.

In part 4, we discuss step 4b of the underwriting process – setting the remaining underwriting assumptions.

In part 5, we discuss step 5 – determining an offer price.

In part 6, we discuss step 6 – performing a rental comparable analysis.

In part 7, we discuss step 7 – confirming the rental comps over the phone or in-person.

In part 8, we discuss step 8 – visiting the property and market in person.

Free Resources:

Series #15 – How to Submit an Offer on a Syndicated Apartment Deal

In this Syndication School series, we will discuss the process of submitting an offer on a syndicated apartment deal.

In part 1, we discuss how to create a letter of intent.

In part 2, we discuss what happens after you submit a letter of intent.

Free Resource:

Series #16 – How to Secure Financing for an Apartment Syndication Deal

In this Syndication School series, we will discuss the process of securing the financing (i.e., debt) for your apartment syndications.

In part 1, we discuss the types of debt and financing available.

In part 2, we discuss the first two most common financing programs.

In part 3, we discuss the other common loan programs and what you need to provide to the lender to secure financing.

In part 4, we discuss how to select the ideal apartment loan.

Free Resource:

Series #17 – How to Perform Due Diligence on an Apartment Syndication Deal

In this Syndication School series, we will discuss the process of performing due diligence on your apartment syndications.

In part 1, we discuss the first 5 due diligence reports.

In part 2, we discuss the last five due diligence reports.

In part 3, we discuss how to interpret the results of the first 4 due diligence reports.

In part 4, we discuss how to interpret the results of the last 6 due diligence reports.

Series #18 – How to Secure Commitments From Your Passive Investors

In this Syndication School series, we will discuss the process of securing financial commitments from your passive investors after putting a deal under contract.

In part 1 and part 2, we discuss how to create an investment summary.

In part 3, we discuss how to create an email to notify your investors about your new deal.

In part 4, part 5, and part 6, we discuss the process of a successful new investment offering conference call.

In part 7, we discuss the last step in the process of a successful new investment offering conference call and how to follow-up afterward.

In part 8, we discuss how to finalize investor commitments by sending the correct legal documentation.

Free Resource:

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

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best ever apartment syndication book

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

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

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

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

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

 

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

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

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

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

Listen to my interview with Michael Blank here.

 

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

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

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

Listen to my interview with Justin Grimes here.

 

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

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

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

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

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

Listen to my interview with Hunter Thompson here.

 

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

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

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

Listen to my interview with Ellie Yogev here.

 

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

 

 

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podcast microphone

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

What are your favorite real estate and/or personal development podcasts?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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