JF1788: Best Ever Interview Lessons #FollowAlongFriday with Jason Yarusi and Theo

Theo has a new co host for today’s episode, Jason Yarusi. They will share with us a few things they learned last week that we as investors can also learn from. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

Best Ever Tweet:

“Take time to get to know the person first and the deal second” – Jason Yarusi

Free Document:

http://bit.ly/brandingresource1

Evicting a tenant can be painful, costing as much as $10,000 in court costs and legal fees, and take as long as four weeks to complete.

TransUnion SmartMove’s online tenant screening solution can help you quickly understand if you’re getting a reliable tenant, which can help you avoid potential problems such as non-payment and evictions.  For a limited time, listeners of this podcast are invited to try SmartMove tenant screening for 25% off.

Go to tenantscreening.com and enter code FAIRLESS for 25% off your next screening.

 

TRANSCRIPTION

Theo Hicks: Hi, Best Ever listeners. Welcome to the best real estate investing advice ever show. I’m your host today, Theo Hicks. Well, it’s Friday, so that means it’s Follow Along Friday, where we talk about the lessons that we learned from the previous week’s interviews.

This week it’s gonna be a little bit different. As you can see, this is  not Joe talking. We have a new co-host for this episode, a new Theo, and that is Jason Yarusi. Jason, how are you doing today?

Jason Yarusi: I’m doing great, thanks for having me Theo.

Theo Hicks: I appreciate you being here. We’re gonna stick to the standard Follow Along Friday template, but before we begin, I wanted Jason just to quickly introduce himself, let you guys know who he is, what he does, where you can find him, and then we’re gonna jump into the lessons that I learned from interviews last week.

Jason Yarusi: Awesome. Thanks for having me, Theo. I’m really excited to be here. I’m Jason Yarusi of Yarusi Holdings, based here in New Jersey. We invest in multifamily assets in the Midwest and the South-East with general partners on about 450 units right now. I come from a heavy construction background where we’d lift and move buildings, a lot of it for flood reasons. I have a beautiful wife and three small children, and I run a ton; so if you wanna find me at YarusiHoldings.com, or check me out on Instagram at @jasonyarusi and you can see a bunch of the crazy runs I do every week.

Theo Hicks: What’s the longest run you’ve done the past seven days?

Jason Yarusi: The past seven days would be 17 miles; past two months would have been I did a 51-mile race.

Theo Hicks: Is it just you running in the morning on your own, or are those actual races?

Jason Yarusi: The 51-mile was an actual race; the long run – I usually do a long run every Sunday, and it’s just me running.

Theo Hicks: That’s funny. My wife is training for a 10k right now. Now, keep in mind, she’s had a baby four months ago.

Jason Yarusi: Oh wow, good for her. Congrats.

Theo Hicks: 10k is five miles, and you probably just run five miles for your warm-up, probably.

Jason Yarusi: Yeah, you have 6,2 miles, so that’s where it’s at. She’s getting ready for it. But yeah, I’m gonna do a 100-miler, I’m planning on it late September. That’s gonna be a beast. It’s mental first, and then just running second.

Theo Hicks: Good advice, because it seems like you’re pretty into fitness… Before we get into real the real estate stuff, what advice do you have for someone who’s been struggling to start a new workout regimen, or [unintelligible [00:04:15].04] what’s the first thing that you’d do?

Jason Yarusi: Okay, so one thing is nobody wants to get out there and do it; you’ve just gotta get out there and do it. But the other thing is you’re not gonna go from sitting on the couch to running a marathon, or sitting on the couch to bench-pressing weekly 300 pounds. It’s getting out there and just creating constant small habits, and those build over time.

People come out of the gates — it’s like new year’s resolution. You come out there, you get to the gym, you work out for three days, you’re so sore you can’t move for a week, and you’re out again. It’s just getting out there, doing small, consistent habits, just like you do in your real estate business, to improve over the long-term… Because this is just like real estate, it’s a long play; you wanna be healthy and happy for 50 years, not just workout, crush yourself and not be able to do something for two weeks.

Theo Hicks: I appreciate that. You learn something new every day on Follow Along Friday, not just real estate related… But obviously I’m sure running 100 miles is a lot more difficult than anything you do for the real estate business, that’s for sure.

Jason Yarusi: I’ll report back. I’ll come back in October/November and let you know what happened here.

Theo Hicks: I was listening to a podcast for a guy who did the 100-mile run; it’s kind of tough, but he did it. I think he actually does one of those every single year.

Jason Yarusi: Wow.

Theo Hicks: I can’t remember what his name is; I think he’s like an ex-Navy SEAL though.

Jason Yarusi: Yeah, there’s some incredible people out there just crushing some massive goals that you wouldn’t think are achievable. You see people doing races that are like 260 miles, and you’re like “Wow…!”

Theo Hicks: A hundred first.

Jason Yarusi: Yeah, exactly, a hundred first.

Theo Hicks: Alright, so last week I did one interview. I interviewed a passive investor who goes by the moniker X-ray Vision. He’s anonymous, and we kept it that way. He actually is a radiologist, hence the X-Ray Vision moniker. He’s a passive real estate investor and  a blogger. His entire story is around him making a comeback after losing seven figures – almost basically a million dollars in a divorce. Then from there he discovered passive real estate investing and was able to climb out of that hole and achieve financial independence in his 40’s.

He was actually a -$800,000 net worth when he turned 40 years old. By the end of that decade — actually, I think he’s still in his forties right now, so I think he said by 48 he was able to achieve financial independence. A very powerful interview that will probably come out sometime in October, and I wanted to go over a few things that I learned from him.

One thing was obviously he’s a passive investor, he’s invested in a ton of deals with a ton of different sponsors… So I asked him what’s the best way to qualify a syndicator. Obviously, this is something that’s helpful for passive investors who are looking to find syndicators, but also it’s more important for people who wanna be a syndicator, because you can see from the perspective of the passive investor what they’re actually looking for out of you.

So a few things that he said – this isn’t anything too profound, but it’s simple and to the point, and still interesting… So obviously, you wanna do your due diligence on that individual and that company, but it’s less about looking at their experience level and how many deals they’ve done and more about how you actually feel about them as a person, and how you feel about their actual niche.

Obviously, in order to determine how you feel about them, you’re gonna want to make sure you set up an interview with them on the phone… Remembering that it’s actually a two-way street, so you interviewing them and they’re technically also interviewing you.

At the same time you wanna do all of your typical research online and determine “Okay, so if they’re investing in mobile homes, am I comfortable with that niche? Are they investing in multifamily – am I comfortable with that niche?” Retail, office, whatever – is it something that you’re actually comfortable with? Because at the end of the day, he was saying how no matter what niche you invest in, no matter who you invest with, that first deal is gonna be a leap of faith, and you’re gonna have lots of doubts just because it’s your first time giving someone else $50,000 to $100,000. So don’t let that stop you from doing it… Just make sure that you’re comfortable with the actual individual and you’re comfortable with the actual niche that they’re investing in.

And then one more thing that he said before I toss it over to Jason is obviously after your [unintelligible [00:08:04].11] you’re gonna wanna get a list of people who are investing in their deals currently, and actually in a sense interview those people as well, and talk friendly with them and just kind of determine how the deals actually performed compared to how they were projected, and then compared to how the syndicator said their deals performed during that initial conversation.

I know I’ve mentioned a lot there Jason, so you can just pick it apart… Any thoughts on that?

Jason Yarusi: Yeah, so there’s actually so much good stuff said there, and even more in the last part… Following up with people who have invested in their deals prior, just because a lot of people can put together a deal that looks great on paper, but actually when you get into the deal it’s really about the things that are gonna come up, because when you have an apartment building where there’s 100-200 people living in it, how did they react when they have to make a decision on there and how are they following back with those investors? Are the investors in tune to what’s happening on the deal?

Another point you’ve mentioned that’s key is that if that person hasn’t done this deal before or hasn’t done a multifamily deal, what’s their track record in life and in business before that? What else have they been doing, what else have they been making of themselves? Honestly, you may be a passive investor in this deal, but ultimately you’re partnering with this person from three, to five, to seven years. So if you don’t really agree with their views or agree with their take on investments, just having a good deal may not be enough for you to invest with them… Because you’re gonna be partnered with this person for that amount of time, and their reaction now is not gonna change; they’re still gonna have a reaction that may not suit you over time… So take your time to really dive into the person first, and then the deal second, because it’s gonna be the person that you’re gonna build with over the years.

Theo Hicks: Yeah. I didn’t ask this question to X-ray, but I did have a conversation with a passive investor and a syndicator – I think it was two weeks ago – and I was asking him “What would someone need to do if they’ve never done a deal before to essentially convince him to invest in the deal?” And you actually hit on that when you said that you wanna see someone that has experience in business. So have they started a business before in the past? It doesn’t have to be anywhere closely related to real estate; I wish I could remember what business he had started, but it had nothing to do with real estate… But because the act of starting a business, the act of starting something from nothing and dealing with all of the obvious hurdles that come along the way, you can take the skills that you’ve learned and then apply that to raising capital and doing a deal.

Obviously, I didn’t ask X-ray, but for people who haven’t done a deal before, and obviously, every single person who’s done a deal before has been someone who hasn’t done a deal before… And one of the best ways to get over that objection from a passive investor – “Well, I wanna wait until you do one deal first to see how it goes, because while I invest with you, it’s ideal that you have some sort of track record in some other industry that you can rely upon.” It can even be something like you got promoted every year for ten years at a company, and you’re a director, or whatever.

It’s all about how you position it to the investor. At the end of the day they have to trust you with their money, and if you graduated college and didn’t work for five years and then all of a sudden you’re wanting to raise capital, well you’re gonna have a little trouble doing that… Whereas if you didn’t do anything real estate related at all, or maybe you did a few deals on the side, but you worked for a big Fortune 500 company and climbed the ladder there, or if you started your own small business that was successful a.k.a. generated a profit, then you can leverage that to essentially convince people to trust you and invest with you.

Jason Yarusi: Yeah, absolutely. When you think about it — you’re spot on, we all start without having done a deal before, and it just comes down to what we’ve built up in the rest of the parts of our life. I was just having a talk with someone the other day – they’re successful in opening restaurants, but they want to now start raising capital to help others achieve financial freedom through investing in apartment buildings. He’s like “I don’t think people will take me seriously.” I’m like “Well, why not?” He’s like “Well, I haven’t done this before.” “Well, yeah, everybody’s gonna start at that point. But you’ve opened three successful businesses. Do you have employees there?” “Yes, I do.” “Well, are the employees now being paid, doing their job successfully because of what you’ve put together? Are they now feeding their families from what you’ve put together? Think about that track record and use that to your advantage. You’ve done that successfully, you’ve built your team, you’ve built your processes through that; allow that to transfer over to this business.”

Theo Hicks: Yeah, building a team is also a big one too, because obviously in syndications 100% of the success is dependent on the syndicator themselves… But they have to select the right team, because the team is gonna be managing the deal from a day-to-day operations perspective, [unintelligible [00:12:28].24] a business before and you’ve got  actual employees, that’s huge. Obviously, if it was successful and it was profitable, that’s also…

One more note on this one, and then we’ll probably move to the second point I wanted to talk about, which is he mentioned a big red flag that he would see. So he talked about what he does not wanna see, and the one red flag that he mentioned was unrealistically high or inflated returns. It’s kind of implying that the person who is a passive investor has experience analyzing deals. He mentioned that he analyzed a ton of deals from a ton of different sponsors. So that’s one thing that you should do as a passive investors – analyze a lot of deals – because then you can recognize “Okay, I’ve looked at 100 deals. 99 of those deals had between 8% and 10% return, but this guy is telling me he can get 15% cash-on-cash return with a very similar deal – I know something is most likely going on here.”

Or if you’re even better at crunching the numbers and able to analyze the actual — not the actual cashflow calculator, because they’re not gonna send you that, but just looking at their proforma, and seeing “Wait a minute, this expense seems like it’s really low”, or “I think they’re missing this expense” or “Wow, they’re gonna raise rents by this much money by only investing $1,000/unit?” Something that just looks unrealistic, but really the only way to know what’s realistic and what’s not realistic is to analyze a bunch of investment summaries and go on a bunch of those new investment conference calls or webinars.

Jason Yarusi: Yeah. This is a great point for people that wanna be active and wanna be the syndicator themselves and raising money and buying deals… Because ultimately, you say “Well, I can’t find a good deal” – well, you should be analyzing as many bad deals as possible, because as soon as a good deal comes across your table, you’re gonna know it so quickly because you’ve already gone through all the bad deals that are out there on sites and are just being pushed around from person to person.

Theo Hicks: Exactly. So this X-ray guy, and then other passive investors I’ve interviewed – they’re on all the email lists, so whenever a syndicator gets a new deal that gets sent to them, they’ll go on the conference call. It only takes a few hours a week. If you look at one deal a week, it’s maybe a few hours in a conference call, and then maybe another hour reviewing the deal… So spending five hours, maybe an hour a night, and over time you’ll learn what’s good and what’s bad. Not even that, you’ll be identifying what’s good and what’s bad. And then, as Jason mentioned, once that good deal comes, you’ll be able to see that.

The second point I wanted to mention – and this is short – we were talking about his blog focuses on financial freedom and helping people achieve financial freedom through passive investing… I was asking him, “Do you know a different definition of financial freedom and different ways to go about doing it?” For him, he gave me two different categories of financial freedom. One was called lean fire; Jason is lean… But I guess this is kind of the opposite of that, because the lean fire is you just doing your basic needs; so figure out exactly how much money you need to make to cover your house, your food, your family and whatnot. That’s lean fire, and where that number is, that’s your goal.

Then on the opposite end of the spectrum is fat fire, which is your basic needs plus let’s say you wanna splurge on vacations, you wanna buy a really fancy house, and buy a new car every year… So depending on what your definition of financial freedom is, you need to set a number based on that. So first you figure out your burn rate – your lean fire rate; the basic amount of money you’re gonna make per month in order to survive. And then whatever else you wanna make on top of that, you add that to your basic needs number, and those two together is your total number that you want to make per year. And then obviously you work backwards to figure out exactly how much money you need to invest passive at x% return to make that money.

Something else that was interesting that he mentioned was something called the Trinity Study. This can go either way, so let’s say you know exactly how much you want to spend each year in expenses; then your nest egg that you’re gonna need to retire is gonna be that number times 25. And the other way around is if you have a nest egg of whatever, and you wanna figure out how much money you can spend each year, you divide that by 25. And the whole idea behind that, I’m pretty sure — [unintelligible [00:16:30].15] live for 25 more years, or it’s that the return you get on that nest egg is gonna be 4%, and then that’s what you’re gonna be living off of, is that 4%.

Jason Yarusi: Huh. That’s a pretty cool way to think about it, but what’s just key here is he’s breaking it down to real actual numbers. We all talk about we want financial freedom, but what that means for me versus what that means for Theo and what it means to everybody listening to this is gonna be completely different. But if you think about that – your basic needs, if you wanna add on top of that and start breaking it down and looking at your investments, well now it becomes real and it can become concrete, because you can put steps to it, put actual steps to it.

Theo Hicks: Yeah, and I like the whole concept of reverse-engineering it, so saying “Okay, I’m gonna make 50k a year. Okay, well how much money will I need to invest from a passive investor’s perspective? How much money do I need to passively invest in deals in order to reach that number? Okay, well how many deals do I need to do per year, to passive invest in? Alright, so how many deals do I need to look at in order to passively invest in that many deals? Okay, how many syndicators do I need to talk to?” Kind of just breaking it down to “What do I need to do every single day in order to make my goal?”

We kind of talk about the same thing on Syndication School about apartment syndications. Let’s say your goal is to make 100k/year. Well, you don’t wanna just stop there and be like “Well, based on the structure of my syndicated deals, what size deal do I need to do, or total size deals do I need to per year in order to make that $100,000 goal?” I’ll just do a basic number – “I need to do a million dollars’ worth of deals per year. Well, how much money do I need to raise in order to do a million dollars’ worth of deals? Okay, so I need to raise $350,000. Okay, well how many passive investors do I need? If I need ten passive investors, how many passive investor conversations do I need to have per week or per day in order to get those ten passive investors?” So taking it from a very high level and breaking it down into what you have to do every single day, as Jason mentioned, makes it real.

Jason Yarusi: Yeah, absolutely.

Theo Hicks: It makes it more tangible and gives you probably less anxiety about achieving it. Because if I just say “I wanna make $100,000 this year in syndication.” Well, what do I need to do? Do I need to do 10 million dollars, 100 million dollars, a billion dollars worth of deals to make $100,000? I don’t know.” So if you break it down, you know exactly what you need to do in order to get there.

Jason Yarusi: Yeah, and 100% attainable. If you say “Well, I just wanna go buy a million dollar apartment building because I think that can get me $100,000”, but you don’t know if you can actually put the work to be able to find that many people you can help and raise money from… Well, now you get that, and the stress is now “You HAVE TO raise this money.” This is about going out there and finding people that align with your investment criteria and align with your investment goals and helping them across, and now you’re ready to find out apartment buildings; you’re basically building yourself backwards into it.

Theo Hicks: Exactly. So those were the two long lessons I learned from a single interview last week.

Jason Yarusi: Yeah. I keep thinking the anonymous guy is like — you know, there’s an old Chevy Chase movie where he keeps being invisible and he’s running around in a suit; that’s this anonymous guy. I wonder what he goes under when he invests in these deals.

Theo Hicks: I know what his name is… [unintelligible [00:19:25].03] his blog is anonymous, but I’m pretty sure when he invests in the deals he just goes under his real name.

Jason Yarusi: I’m gonna keep thinking it’s the other way. Just give me some good thoughts here.

Theo Hicks: There you go. Alright, so moving on to the last two items… We have the trivia question; this is the month of the global trivia questions. I guess this is gonna be the last week of the global trivia questions. Last week I asked Joe what country has the highest percentage of renters, so renter-occupied units, highest-percentage. I think he said France. I mentioned it was in Europe. The answer is actually Switzerland. In Switzerland 56.6% of the population rents.

I’m pretty sure it might be one of the only countries that has over a 50% renting rate. [unintelligible [00:20:13].17] one more, but I thought that was interesting.

So we’re gonna go at the opposite rent of the spectrum, and this week’s question is “What country has the highest homeownership rate?” This number is 96.4% of the population owns their own home. I’ll give you a hint, too; this is a European country, and it’s actually an Easter-European country, so I’ll give you something even more specific.

Jason Yarusi: Croatia.

Theo Hicks: That’s a good guess. So if you want to win a free copy of the first Best Ever book, either submit your question via email to info@JoeFairless.com, or in the comment section of the YouTube video. As I mentioned, the winner will get a free copy of our book.

And then lastly, we’re discussing the free documents that we have on Syndication School. As a reminder, Syndication School goes live every Wednesday and Thursday, where I talk about the how-to’s of apartment syndications. Right now we are on series number 20, so we’ve got almost 100 episodes of that aired now.

Right now we’re talking about how to asset-manage deals, so make sure you check out those episodes that came out yesterday and the day before… But also check out all the previous series as well if you wanna learn how to do deals.

The free document I wanna talk about this week is from series number seven, which is where we talk about the power of the apartment syndication brand. So me and Jason were talking about today one way to get credibility in the eyes of potential passive investors is to have business experience. Another way to do that if you don’t have business experience is to focus on building a brand, a thought leadership platform – something like this, where we’re talking to expert real estate investors. Through them you gain knowledge, but also you’re perceived by other people as an expert because you’re out there actually talking to experts.

We have a lot of free documents from that episode, so I’ll talk about the rest of those in the next few episodes, but the first one we gave away was a branding resources document; essentially, it’s a list of all of the websites and different tips for constructing your brand: creating business cards, creating a website… So kind of the foundation of the brand. And then we go into more details on how to actually create a website, how to actually create your podcast or your channel or whatever. All that is available at SyndicationSchool.com. The branding resources are from episode 1534, or we’ll have it in the show notes of this episode.

Jason, I appreciate it that we got you on the show.

Jason Yarusi: Awesome. Thanks, Theo.

Theo Hicks: Just one last time, where can people reach you and learn more about you?

Jason Yarusi: Sure, you can find me at YarusiHoldings.com. Follow me on Instagram at @jasonyarusi, and the podcast is The Real Estate Investing Foundation Podcast with Jason and Pili. You cand find all the notes on the website, and all the other channels you’re finding… Joe and Theo for the Best Ever Show.

Theo Hicks: There you go. Alright, Jason, I appreciate it. Best Ever listeners, thanks for tuning in. Have a best ever day and a best ever weekend, and we’ll talk to you soon.

JF1787: How to Asset Manage A Newly Acquired Apartment Syndication Deal Part 2 of 8 | Syndication School with Theo Hicks

Theo continues the long series on asset management. Today he covers more of the top 10 asset management duties. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

Best Ever Tweet:

“The majority of the information is included in the free weekly review document”

Free Document:

http://bit.ly/weeklyperformancereview

Evicting a tenant can be painful, costing as much as $10,000 in court costs and legal fees, and take as long as four weeks to complete.

TransUnion SmartMove’s online tenant screening solution can help you quickly understand if you’re getting a reliable tenant, which can help you avoid potential problems such as non-payment and evictions.  For a limited time, listeners of this podcast are invited to try SmartMove tenant screening for 25% off.

Go to tenantscreening.com and enter code FAIRLESS for 25% off your next screening.

 

TRANSCRIPTION

Joe Fairless: There needed to be a resource on apartment syndication that not only talked about each aspect of the syndication process, but how to actually do each of the things, and go into it in detail… And we thought “Hey, why not make it free, too?” That’s why we launched Syndication School.

Theo Hicks will go through a particular aspect of apartment syndication on today’s episode, and get into the details of how to do that particular thing. Enjoy this episode, and for more on apartment syndication and how to do things, go to apartmentsyndication.com, or to learn more about the Apartment Syndication School, go to syndicationschool.com, so you can listen to all the previous episodes.

 

Theo Hicks: Hi, Best Ever listeners. Welcome back to another episode of the Syndication School series, a free resource focused on the how-to’s of apartment syndication. As always, I’m your host, Theo Hicks.

As you know, each week we air two podcast episodes that are part of  a larger podcast series that’s focused on a specific aspect of the apartment syndication investment strategy. For nearly all of the series we offer some sort of document, spreadsheet, template for you to download for free. All of these free documents for the past Syndication School series, as well as the actual Syndication School series episodes – all that can be found at SyndicationSchool.com.

This is going to be part two of a series we started yesterday – or if you are listening to this in the future, the podcast episode before this one – entitled “How to asset-manage a newly-acquired apartment syndication deal.”

At this point in the process you’ve gone from being a complete newb to actually closing on your first deal, and now we are going to go over exactly what you need to do in order to make sure you’re able to successfully implement and execute your business plan.

As I mentioned yesterday, this is going to be the longest timeframe of the entire process, most likely, because this is when you buy the deal to when you sell the deal, which could be five years, ten years, or maybe even longer. So these are the things that you need to do in order to ensure that the deal is successful during those 5 to 10+ years.

We began by giving a general overview of the top ten duties of the person who’s responsible for asset-managing the deal. We went through the first five yesterday, or the podcast episode before this one, in part one, and we’re gonna go over the next five today.

Just to review what we went over in part one – the first five duties we went over was 1) to implement the business plan, which involves reviewing the financials on a weekly and monthly basis, and then comparing that to your budget to determine any discrepancies. 2) Have weekly performance reviews with your property management company, and we offered a free weekly performance review template that you can send to your management company so they can fill it out, so you can track all of the KPIs (key performance indicators). 3) Making sure you’re sending out the correct investor distributions on tie. 4) Manage the renovations, manage the interior and the exterior renovations. 5) Maintaining the economic occupancy rate.

Make sure you check out part one, so you know specifically what the best practices are for those first five asset management duties, and today we’re gonna finish out the top ten with duties six through ten.

Duty number six is going to be the investor communications. As I mentioned in part one, these asset management duties aren’t going to be solely the responsibility of just the asset manager. Every single aspect of these duties are not performed by the asset manager; most of them are in tandem with the management company, and then others are in tandem with the person who’s responsible for raising capital – if that person is different from the asset manager – and investor communications is one of those. This is going to be a team effort on these investor communications.

Obviously, just like you notified your investors of the new deal, you presented information in the conference call, you notified investors of the close, you’re also gonna want to notify your investors of updates on an ongoing basis.

For Joe’s business, what he does is he provides a recap email to his investors each month, that recaps the activities of the previous months. We’ve just sent out our June recap emails in July. When June ends we gather all the information during the first few weeks of July, we put it together in a nice, organized email, and then we send that out to investors by the middle of the month. I’ll go over specifically what goes in those emails in a second, but we also send out financials on a quarterly basis. So each quarter we also send out an up-to-date T12 with the income and the expenses, as well as a current rent roll.

And then on an annual basis the recap email includes the K1. That is the tax documentation that you provide to the investors, so they can file their taxes properly. For that you wanna make sure you talk to your CPA, so you can determine exactly when they are gonna prepare and complete these K1’s, so you let your investors know starting with that update that goes out in January when they can expect to receive these K1s.

More specifically, here are the things that we include, and that you should probably also include, in your monthly email. And before I go into that, the process for obtaining this information is to have the asset manager – or whoever is the interface between you, the syndicators, and the management company – reach out and say ” Hey, each month can you please send me this information?”, obviously letting them know before you close that this is what you’re going to do. So you set expectations, so that when you close you don’t say “Hey, by the way, on a monthly basis can you send me this and this?”

The majority of the information is actually going to be included in the weekly performance review document that we talked about in part one, and that is the free download, so technically, you could just use that… But it’s still nice to make sure that you’re getting the most up-to-date information, so when you click Send you know that you’ve got the best and most current data for your investors.

So the asset manager will get that from the management company, and then the asset manager will forward that on to the persons responsible for raising capital… Because you want the person who raised the capital from that person to be the person that’s responsible for the ongoing communication to them, just because it’d be weird if for the first six months, year, or however long it was you were talking to Joe, and then all of a sudden once the deal closes they’re talking to some random Billy Bob Joe, and they don’t really know who that is.

So keep the communication consistent with your investors. Then obviously the person who is responsible for  writing these emails will obviously send these emails out as well.

Now that we got that out of the way, what actually goes into these emails? Here’s a checklist that you can use in order to make sure you’re including all of the relevant information in the email.

Number one, what you wanna lead off with is any information about them getting paid. If you’re doing monthly distributions, then in that first recap email you want to explain to them – or remind them, because the information should already be in the investor guide – how they’re gonna get paid, how much money they’re gonna get paid, and when they’re gonna get paid.

It’s something as simple “Welcome to your first recap email. As a reminder, download the investor guide for information on the timing of distributions, tax timing etc. Expect to receive your first distribution by this date. Since we closed on this date, it’s gonna cover…” For example, let’s say you closed on June 15th, 2019; you’ll say “You’ll receive your first distribution by the end of August. It will cover the time we owned the property from June 15th to July 31st.” Then after that what’s it gonna be? Well, after that it’ll  be whatever your preferred return is, on whatever your frequency is. If you’re doing it monthly, you can say it will be a prorated 8% preferred return each month.

Then you’ll also wanna explain that – again, this is only if you’re doing this – “Every 12 months we’re gonna evaluate the performance of the property to determine if we can distribute money above that preferred return.” If you remember, you’ve got your preferred return most likely, and then a profit split most likely. So you distribute that 8% preferred return… At the end of the year let’s say you’ve made 9% — or let’s say you projected 9% and you made 10%. Then you can tell your investors at that 12-month point “We’ve owned the property for 12 months; we’ve evaluated our performance. I know  we’ve projected a 9% return to you, but we were actually able to hit a 10% return, so in your next distribution, in addition to your normal 8% prorated return, you’re also going to receive an extra 2%.” And then say “For example, if you invested $100,000, it’ll be this much money.”

So really you wanna lead off the email each month with any information with them getting paid. That’ll change each month, obviously. Then for the months where it’s just a regular 8% prorated return (or whatever your preferred return is), you don’t need to say that every single month. Just set expectations in that first email, and whenever it changes is when you want to actually disclose the information.

Next, if it’s on a quarterly basis, you’ll wanna include a link to the actual financials. What we do is we have a Dropbox folder for each property, and any relevant information – pictures, links etc. – goes into that folder. Then in our emails we’ll copy that Dropbox link and hyperlink it in the email so they can click on it. It’ll open up their web browser and they’ll be presented with the financials, or with a picture.

From there, you want to also make sure you’re including occupancy information. You want to explain what’s the current occupancy, and then what’s the pre-lease occupancy. If you want to go above and beyond, something else you can do is track each month to see if your occupancy is going up, so that if it does go up, you can mention that in bold.

You can say “Our occupancy rate has increased to 95%, up from 94% last month.” Or even better, “Our occupancy rate has increased for the third straight month, from this to this.”

Then you also want to mention what the pre-lease occupancy is, so that 1) your investors know what the expected occupancy is going to be  from the end of the month, just because a current snapshot is great, but what are we trending at? Is it trending upwards, is it trending downwards, is it remaining the same? Plus, in the beginning, when the occupancy level is a little bit low, they’ll be able to see that “Okay, well it may be below 90% right now, but by the end of the month we expect it to be at 90+ percent.”

Next you wanna provide an update on the interior renovations. You want to say how many units have been renovated since you’ve bought the property, and then how many units were renovated the previous months, and then you’ll want to provide information on what rental premium you’re demanding. Ideally, at the very least you say that “We are achieving our projected rents.” Even better is if you’re achieving a number which is higher than your projections.

If you remember back in the episode about the investment summary, when you’re presenting the deal to investors, you wanna make sure you’re conservative with your rental premium numbers, so that you can say “We are projecting a $100 increase in rents based on our renovations program. Properties in the area that have undergone similar renovations programs have seen an increase of $150.” That way if the deal still makes sense at $100, and you’re able to get $150, that’s just more money for you and your investors, and more positive information you can include in the email.

Then in the beginning once your model unit is done, or if you don’t have a model unit, just one of your first units that are renovated, send your investors some pictures. You don’t want it to just be a bunch of words; investors are gonna want to see exactly what you’re doing to those units. So provide them a picture of the kitchen, the bathroom, the living room, things like that.

Next you’re gonna want to talk about the other improvements, the other cap-ex projects that are going on at the property. For example, you can say that “We’ve installed all the carports, and we plan on leasing them at $25/space, which will increase our net operating income by whatever dollars per month.” Or “We’ve just rebranded our property to ABC Apartments, and are in the process of designing a new monument sign.” Then in three months, when that monument sign is done, you can say “Our monument sign is installed. Click here for HD pictures.”

So not only do you wanna provide updates and make sure that these are consistent each month… So during the first month you talk about ten different things – you want to make sure you continue to bring those ten things up until they’re done. Then once they’re done, you wanna provide pictures of the completed project.

Something else you wanna include are any type of events you’re hosting for your residents… We’ll go over this in a lot more detail in a later episode, but a very strong lead generation and retention strategy is to host resident appreciation parties, in  a sense. We’ll go over specifically what those are, but if you’re hosting any sort of party or event for your residents, you’ll wanna include that in the email.

And then lastly, and news item that’s relevant to the market that the deal is located in. If a new company has moved to the area, you can say “Amazon just opened up a new distribution center. They’re investing 100 million dollars. It’s planning on generating 1,000 new jobs, and hey, it’s actually a short ten-minute drive from the property. This reinforces our thoughts on the continued strength of the market.”

That’s really an exhaustive list of things you can include in your email. You can include all of that, you can brainstorm more things to include in the email, you can include less things… It’s really up to you. That’s what we include in our updates each month, so you can use that as a guide to creating your own emails.

A few extra things to think about for these emails… Number one is the timing. Make sure you set expectations with your investors about the timing of these updates. Whatever you tell them in the beginning in that investor guide or in your closing email in regard to the frequency of these updates, make sure you’re actually doing that. If you say “We’re gonna send updates each month by the 14th”, then make sure you send updates each month by the 14th. If you say the updates are gonna include X, Y and Z, make sure the updates include X, Y, Z. If you say that you’re going to send these emails out by a certain date, make sure you’re not waiting until the day before to write the emails, especially starting out.

Eventually, you can get to the point where you’ll probably write them with a few days’ notice, but at first, the second the month ends you wanna get that data from the management company within the first few days – or whenever they have the data inputted – and then you wanna instantly start working on those emails, so that you can send them out on time. Sending them out earlier is even better.

Then a few other things – and I’ve mentioned some of these already, but I’m just gonna reiterate… These are some important milestones, things that aren’t something that you’ll include in every single month; it’ll be something that changes in your email throughout the year.

As I mentioned, at the end of each quarter you’re gonna want to send your investors the financials; you’re gonna send them a rent roll on the profit and loss statement. Make sure you’re not including any personal investor information in those financials. Sometimes the property management company will put the money that got distributed to investors at the bottom of the rent roll, at the bottom of the T-12… So take that out of there, so that your other investors don’t know who invested what.

And then also, it’s better to put those in PDF form as well, just because people can look at PDF on their phone pretty easily, whereas Excel might be a little tough; the formatting might not work on the phone. And then if you have a monthly pay out, so if you plan on paying investors each month, in the first recap email or the recap email before that first distribution goes out, let them know when they’re gonna receive it, and provide an example of how much money they will receive based on a $100,000, or a $200,000, or a million dollar investment, depending on how big your deals are.

If it’s a quarterly payout, in the first recap email and then in the email before they get their first quarterly payment make sure you let them know “Hey, this is when you’re gonna receive your payment, and here’s how much to expect to make, based on an example.” And then the same thing for an annual distribution. The first recap email and then the month before that annual distribution goes out – when they’re gonna receive that payment and how much money are they actually going to make.

And then lastly is that tax documentation. Once you’ve had your conversation with your CPA and they say “Hey, we will have those K1’s to you by the end of February, or by mid-March, and here’s the process for sending them out”, starting that first recap email of the new year, let them know the process and then each month let them know “Hey, as a reminder, here’s the process”, so that you’re not getting an influx of emails in February, March, April timeframe asking “Where is the K1s? When am I getting the K1s? How does the K1 process work?” They’re already prepared, they already know what the process is, and the only way you’re gonna be getting a bunch of emails is if you don’t hit that date you communicated to them.

And then a few other best practices – one, how do you actually make these emails? Sure, you can use your Outlook or whatever email service you use, and make one email template and then copy and paste that into individual emails, copy-paste the emails in there, and then send those out individually. You probably don’t wanna do that, because it’s gonna be pretty time-consuming, but technically you can. What’s a better method – and we’ve already discussed this service – is MailChimp. There’s other things you can use too, like Active Campaign, Constant Contact or Aweber, or whatever other email service that you want to use… But use some sort of email service that allows you to automate these things; you type in a template and then it’ll automatically send out that email to your imported list of investors, it’ll put their name in the subject line, and things like that. You’re not gonna want to make these emails individually; that’s just gonna take too much time.

And then I kind of already mentioned this, but when you’re sending out any images, any financial documents, create a Dropbox account – if you have to, buy the upgraded storage amount – and just make an individual folder for each property, and then each month upload any documents, any  pictures to that file, and then copy and paste those into your email. The reason why is because let’s say you’ve completed the monument sign, and you’ve got really nice HD pictures that are 200, 300, 400 MB in size, and you insert that into your email… And then let’s say you’ve got ten more of those pictures in the email – the email is never gonna load for your investors. If it does load, it’s gonna eat up a ton of their data… Whereas if you just do the link, they can click on the link, go to the browser, and they’ll easily be able to see “Okay, here’s the pictures that he’s talking about.” Plus, the email might not even go through, the email might take forever to go through, a lot of emails might fail to send, the investors folder might be so big that your investors’ email can’t even handle it… So to avoid all these issues, just use Dropbox. It’s pretty simple.

And then I also mentioned the thing about converting the financials to a PDF as well.

That was just one duty that I went over, the investor communication. We’re going to stop there for today and we will wrap up the remaining asset management duties next week, and then we will move into more specifics on some of the top ten asset management duties that we’ve discussed. Again, I wanted to do first a general overview of what your responsibilities are, and then kind of not necessarily go through each one in more detail, but just provide overall “Hey, here are some more things to be thinking about when you are asset-managing your property.”

Until next week, I recommend listening to part one for sure, to learn about those first five asset management duties, and we talked about number six today, and we’ll do seven through ten next week. Listen to the other Syndication School series we’ve done so far. This is series number 20, so you’ve got 19 other Syndication School series to listen to to get all caught up… As well as download the free document that we gave away in part one, which is that weekly performance review… And then also download the other free documents we’ve given away. We’ve given away at least 20-25 documents for free at SyndicationSchool.com that will help you start, launch and grow and scale your apartment syndication business.

Thank you for listening, and I will talk to you next week.

JF1786: How to Asset Manage A Newly Acquired Apartment Syndication Deal Part 1 of 8 | Syndication School with Theo Hicks

Now that we’ve talked about everything there is to talk about as it pertains to purchasing your first apartment syndication deal, it’s time to discuss asset management. This will be the longest period of time that you will be dealing with the property, and the investors. You’ll want to come with paper and pencil for this series! If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

 

Best Ever Tweet:

“The way to sell that is to tell them you are upgrading the unit at no cost to them”

 

Free Document:

http://bit.ly/weeklyperformancereview

 


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Go to tenantscreening.com and enter code FAIRLESS for 25% off your next screening.


 

TRANSCRIPTION

Joe Fairless: There needed to be a resource on apartment syndication that not only talked about each aspect of the syndication process, but how to actually do each of the things, and go into it in detail… And we thought “Hey, why not make it free, too?” That’s why we launched Syndication School.

Theo Hicks will go through a particular aspect of apartment syndication on today’s episode, and get into the details of how to do that particular thing. Enjoy this episode, and for more on apartment syndication and how to do things, go to apartmentsyndication.com, or to learn more about the Apartment Syndication School, go to syndicationschool.com, so you can listen to all the previous episodes.

 

Theo Hicks: Hi, Best Ever listeners. Welcome back to another episode of the Syndication School series, a free resource focused on the how-to’s of apartment syndication. As always, I’m your host, Theo Hicks.

Each week, as you know, we air two podcast episodes, every Wednesday and Thursday, and those are typically a part of a larger podcast series where we focus on a specific aspect of the apartment syndication investment strategy. For the majority of these series – in fact, almost all of this series – we offer some sort of document, spreadsheet, template, some sort of resource for you to download for free, to help you in your apartment syndication journeys. All these documents and all of these Syndication School podcast episodes can be found at SyndicationSchool.com.

Now, we are at the second-to-last step in the apartment syndication process. We’ve been going in chronological order, starting from someone who really has no experience whatsoever with apartment syndications, all the way up to the point where in the last series we discussed how to close on your first deal, and the process surrounding that.

Now, as I mentioned, the second-to-last step is going to be to asset-manage that deal, to execute your business plan, with the last step obviously being selling the asset.

This is the beginning of that asset management series, and it’s entitled “How to asset-manage a newly-acquired apartment syndication deal.” This is part one. This will probably be an eight-part series; I’m not 100% sure, but it’ll likely be an eight-part series, because we’ve got a lot to cover. This is most likely going to be the longest timeframe of the entire process, depending on how long you plan on holding on to the deal for… But this is 5 to 10+ years of work.

So what we’re going to do is we’re going to start off by going over the top ten asset management duties. These are high-level ten things the asset manager is responsible for doing once a deal is closed on. If you remember all the way back to when you were forming your team, this might be the same person who did everything else – you might be a one-man team – or you might have the duties broken apart to the person who raises the capital and the person that maybe underwrites and asset-manages the deal.

So for all these duties, most of them will be done by the asset manager, but some of them will also involve the person who’s responsible for raising capital… Because ideally, the person who actually raised the capital is gonna be the face to the investors; you don’t wanna pull a Switcheroosky on them and have one person raise all the capital, build the relationship, send them the deal, send them the closing email, and then all of a sudden some brand new person is talking to them, that they either know little about or don’t know at all.

I’m gonna try to get through all ten of these duties in parts one and part two, so we can move on to other things in the later episodes. These first two episodes are gonna kind of set the foundation for this series, and then from there I’m going to go into some more details on things that the asset manager needs to think about, as well as things they can do in order to optimize the business plan.

Speaking of which, the first duty of the asset manager is going to be to implement the business plan. That’s going to be the main responsibility, and really I guess everything else falls under the umbrella of managing the business plan. So in order to ensure that the business plan is implemented successfully, obviously this starts off by making sure that your budget, from an expense standpoint (ongoing operating expenses) is accurate, that your projected rental premiums are accurate. This is done before closing by having the conversation with your property management company. To learn more about that, make sure you check out the series about underwriting and the series about performing due diligence.

At this point you should have your budget of “Okay, this is how much money we plan on spending each month and then each year, and then here’s how much we expect the rents to increase based on a set renovation or cap-ex budget.” Again, this needs to be included before you close; I just wanted to mention that again. So you’re gonna have this information in front of you, and your goal is to implement the business plan such that you’re able to achieve these projections and assumptions.

So once you close, you’re going to oversee this budget. Ideally, you’re able to gain access to the property management software, because you don’t wanna be spending your time inputting these numbers each month. That should be a duty performed by your actual property management company. So at the end of each month you’re gonna want to go ahead and access that software or ask your management company to send you the financials, so you can review the monthly financials.

The things you wanna look at – what was your projected/budgeted expenses and your projected/budgeted income figures, and how do those compare to the actual figures? Ideally, it’s something along the lines of you’ve got your actuals – this month, January, and then on the column side these are the income factors, these are the expense factors, and it’s got the numbers. Then next to that it has either your budgeted numbers, or at least a variance. So it’ll say “Hey, for loss to lease we projected a $10,000 loss, but we actually ended up getting a $20,000 loss.” Then you have that for every single income and expense line item.

Obviously, what you’re looking at are any discrepancies from your budget, compared to the actuals. If there are discrepancies, you’re gonna want to jump on top of those right away, which is why we’re looking at these on a monthly basis… And you’re gonna wanna work with your property management company to confirm 1) what is the cause of the discrepancy; why was your loss to lease budget way off from the actual loss to lease. And then 2) you wanna formulate a plan to get back on track.

This brings us into duty number two, which is to do your weekly performance reviews with your property management company. Now, technically these could be monthly or quarterly, but the best syndicators will have weekly performance reviews… Because if anything were to come up, if there were any issues, not only will you know about them within a maximum of seven days, but you can start thinking of solutions right away as well. Ideally, those solutions are in place before you notify your investors with a new recap email, which we’ll get into later on in the series.

So the purpose of these weekly performance reviews is to help you track the progress of your business plan, and more specifically, track any key performance indicators (KPIs) that you and/or your property management company has set and decided to track.

For Joe’s business, he has these KPIs that are broken into three distinct categories. The little anagram that we use in the book was MOM – money, occupancy and management. So make sure that you always are taking care of MOM. That’s the key when you’re asset-managing apartment syndication deals; making sure you’re taking care of MOM.

We’re actually gonna give away a free document with this series – there’s going to be at least one free document, and as of now, it’s going to be a weekly performance review template. It’s gonna have the money, the occupancy, and the management KPIs, so specifically what we track for money, specifically what we track for occupancy, and specifically what we track for management, in order to confirm that we are on track with our business plan.

The goal would be to send this tracker to your management company and have them fill it out each week, and then send it to you before your call. Then the purpose of the call is to review the KPIs. And I guess on a monthly basis the meeting might be a little bit longer if you did identify some discrepancies in that monthly financial document.

So just really quickly I’m gonna go over these MOMs. I’ll briefly define these terms, but if you go all the way back to the “Master the lingo” episode, we’ve kind of exhaustively gone over what all of these terms mean, and provided examples of each of them… But I’ll do my best to explain them not as well.

For Money, there’s five different KPIs we’re looking at. Number one is the gross potential income. That is how much money would the property bring in if all units were rented at market rates. Then there’s the gross occupied income, which is the actual income; so not how much money it would be bringing in if we assumed all units were occupied, but how much money are we bringing in based on the units that are currently occupied. This is kind of like an economic income.

Next, how much money was actually collected that week. Next is the month-to-date collected and the month-to-date delinquent. Obviously, a week might let you know if you’re short or high that week, but the month-to-date collected is most likely going to be more important, because you wanna make sure that you’re hitting that collection number each month. And obviously, if you aren’t, then the difference between what you should be getting and what you’re actually getting is going to be that delinquent.

So if there is a lot of money delinquent, you’ll wanna know why, and you’ll wanna know what your property management company is doing to make sure that they are going to be able to actually collect that money. So that’s the Money.

Next is the Occupancy. A few things you’re gonna want to know – and there’s 7 different KPIs for this… Number one is the number of units that are pre-leased. These are units that are either vacant currently, or have a lease expiring at the end of the month and they are already leased by a new resident. You’ll wanna know the number of notices that were given this week (eviction notices), so you know how many people of that overall occupancy are actually going to be gone by the end of the month.

Then you wanna know the total number of notices you have on the book. Obviously, if I send out an eviction the first week of the month and they’re not leaving until the end of the month, then week three that notice is not gonna be accounted for, and the notice is given that week, so you wanna know how many of those are actually going to be evicted.

Next is the number of set outs scheduled.

Next is the number of applications you have denied, just to make sure that your property management company are getting qualified leads.

Next are the number of renewals. So of the leases that are expiring, how many of those residents have actually renewed the lease for a new 12-month term.

Then lastly, the number of people on the waiting list. Ideally, you’ve got a waiting list, because the property is in such demand that you’ve got a list of people who want to move in, so that if you have an eviction or if someone is moving out just because their lease ends, you’ve already got a list of pre-qualified people that you can lease that unit to. That’s Occupancy.

Then next is going to be Management, which there’s a whole lot of KPIs for management. First there’s going to be the current occupancy rate percentage; pretty self-explanatory – what percentage of the units are occupied. Next is the total number of occupied units this week; obviously, if you’ve got a 10% vacancy rate, how many of those units are going to be occupied or were occupied that week. Also, you want the total number of occupied units from the prior week, as well… Plus total number of move-ins; who all moved in last week, how many new tenants moved in the previous week.

Next is what’s the projected total number of occupied units, and then the projected occupancy percentage. This is pre-leased. So you’ve got your current occupancy, which is today, but as I mentioned before, you’ve got some units that are pre-leased, you’ve got some people who are going to be renewing, and then you’ve also got people who are gonna be moving out for some reason or another, so you’ll wanna know what is the projected occupancy by the end of the month. That’s covered by the total occupied units projected, and the projected occupancy percentage.

Next is the number of evictions filed, number of skips, number of transfers… Skips are when people skip out; they’re supposed to be moving in, but they for some reason just don’t move in on that date. The number of transfers is pretty self-explanatory – I’m moving from unit one to unit ten. Number of units that are currently vacant, and then of those vacant units, how many of them are rent-ready and how many of them are not rent-ready.

For some of these there’s a specific number you projected. For the current occupancy you kind of have an idea of what you want your occupancy rate to be… But there’s really no absolute “Hey, if I have this many evictions filed, then I’m having an issue”, it’s more of something you wanna track. If you’re having ten evictions one week and then eight the next week, you’re trending positively. If you’ve got two evictions, and then four, and then six, and then eight, and then ten, something’s going on. You wanna track the trends, so ideally all these are trending in that positive direction, which means for example the number of units that are vacant is trending positively would mean the number of vacant units is actually decreasing… Whereas the number of skips – you want that to be as close to zero as possible.

That’s MOM. As I mentioned, we’re gonna go ahead and give away a free document, so all of those KPIs will be in this spreadsheet we’re giving away, so you can just send that to your management company, and maybe add some colors to it, add your logo to it, customize it however you see fit, add or subtract certain KPIs based on your business plan and the types of things that you wanna track, and then go ahead and send that to your management company.

One last note on the weekly performance reviews – I mentioned this in the Syndication School episode when we were talking about how to actually qualify and interview a property management company… You want to set expectations for these reviews. You don’t want to not really say anything to your management company about these reviews, and then when you close, say “Hey, by the way, I want to schedule a weekly call with you, and I want you to fill out this template each week, and I want  you to send me the financials each month.” You wanna set expectations for all of that upfront. Obviously, not during the first conversation with the property management company; you don’t wanna have a list of all these things you need them to do… But just mention “Hey, once we actually close on the deal, can we do weekly calls?” And they say “Yeah, sure.” Then once you actually find the deal, say “Hey, on these weekly calls here’s what we wanna do. Are you still on board with that?” If they say no, then you either need to not do that – but you’re gonna want to do that, so you might need to find another property management company or figure out a way to work with them in order to get that data. So that’s number two, weekly performance reviews.

The third asset management duty is going to be the investor distributions – you paying your investors. Whatever frequency you’ve determined – whether that’s monthly, quarterly or annual basis, you’re going to need to send out the correct distributions to your investors. So whatever that preferred return is that you offer to your investors, you need to distribute that to your investors each month, each quarter, each year, by the way that you set out in your investor guide, which we talked about in the previous series. That’s the guide that talks about timing, and distributions, and other important information; you communicate that to your investors in that closing email.

Ideally, your property management company handles these distributions with your oversight. They’re the ones that are collecting the money, so they should also be the ones that are sending the money out… So however your investors want to receive their returns, whether that’s through the direct deposit or a monthly check, make sure (again) you set expectations with your property management company and let them know “Hey, I wanna send out monthly distributions either through check or through direct deposit. Is that something you’re capable of doing?” They might say “Yeah, sure” or they might say “Well, we only do direct deposit and we do it quarterly.” So it’s a negotiation. If they say they can only do it quarterly and that’s okay with you, then do it quarterly. If not, then you might need to find another management company or figure out a way to negotiate those monthly distributions, and ask them what you can do to help them make that happen. So that is number three.

Number four is actually investor communications. We’re gonna skip that one for now, because that’s very detailed. We’re gonna start tomorrow’s episode by talking about the ongoing investor communications.

For implementing the business plan and the weekly performance reviews – those are gonna be the responsibilities of whoever is responsible for asset management. Whoever that asset manager is will be on those weekly calls and will be focused on implementing the business plan, reviewing the financials each month, having that conversation with the management company if there are any discrepancies.

Investor distributions can either be managed by the asset manager or the person who’s responsible for ongoing investor communications, or whoever your money raiser is… Just because this is not really something that the person who’s sending out the distributions — I mean, they’re kind of interfacing with the investors because they’re sending out the distributions, but there’s really no conversation about that; it’s more of they look at their bank account and the money is in there or it’s not in there, or they open up their mailbox and the check is in there or the check is not in there. Then obviously if they don’t have the correct distribution, they’re going to reach out to the money raiser and say “Hey, what’s going on with this distribution?” at which point they can either reach out to the management company or they could tell the asset manager, because the asset manager is the one who’s going to be in frequent communication with the property manager.

Number four is one that’s going to be the responsibility of both parties, but we’ll get more into the investor communication tomorrow, as I mentioned.

Number five – and this is the last thing we’ll talk about today; we’re going through these four, and then six through the rest tomorrow… So number five is managing the renovations. If you’re a value-add apartment syndicator or a distressed syndicator, or even if you’re a turnkey syndicator, you’re likely going to have some sort of renovation you’re going to do to the property, whether that’s interior or exterior, or just upgrading some amenity. So the asset manager is gonna be responsible for making sure those renovations are done at the right cost and on time.

There’s really two ways that these renovations get funded. They’re funded out of the capital that was raised, or they’re funded by the bank. If they’re funded by the money that was raised, then you have a bank account and the money comes out of there to pay the contractors and pay for the supplies… But if you did some sort of renovation loan where these renovation costs were included in your financing, then there’s gonna be extra responsibility, which is having that constant communication with the lender during the renovation period… Because typically how it works is you’re not gonna get a lump sum dollar amount upfront; if your renovations are ten million dollars, you’re not gonna get a check for ten million dollars at closing. It’s gonna be based on draws from the bank, based on your budget and your cap ex timeline that you provided to the lender before closing… So you’re gonna need to interact with someone at the bank in order to make sure you’re getting those construction draws, so you can pay for those cap ex projects.

Typically, your general contractor and your property management company should know beforehand 1) that you’re getting a renovation loan, and 2) they should have an idea of how that process works… Because again, you’re hiring a property management company who has experience repositioning these types of properties.

In reality, you’re managing the people who are managing the renovations, because ideally, your property management company is the one that’s doing the day-to-day work; you’re just making sure each week that they are on track.

And if your renovations are not included in the actual budget and you’re covering the costs out of the money raised from your investors, then you’ve got a lot more control on when you can get projects done and when you can pay people for doing those projects… And you won’t have to have that extra responsibility of going back and forth with the lender.

We’re gonna go over one more actually, so we’re gonna do number six. So we’ll do four, and then seven through ten tomorrow. Number six is the asset manager is responsible for maintaining the economic occupancy.

Once you’ve taken over the property, obviously you’re gonna begin implementing your value-add business plan, which requires performing renovations, both interior and exterior. If you remember, during the underwriting we accounted for a higher vacancy rate, or a lower economic occupancy rate during the renovation period, which would be the first 12-24 months, depending on the level of renovation. But even though you’re projecting a lower number, that doesn’t mean you can just not think about occupancy at all during the renovations, right? You still wanna make sure that you’re hitting that projected number. So if it was 8%, you wanna make sure that each month (technically each week) your occupancy is not dropping below 92%. If you projected 10%, that number is 90%.

We’re gonna go over in a future episode specifically how to maintain the economic occupancy; the whole list of ways to essentially bring in high-quality tenants, where a high-quality tenant is someone who pays on time and actually stays in the property, takes care of it, resigns the lease. But if you don’t hit your economic occupancy goal, then you’re not gonna hit your return goals either, which means you can’t distribute your money to your investors.

Now ideally, this is not solely the responsibility of the asset manager. Like all of these responsibilities, your property management company should be involved and should be implementing the best practices. For this particular duty, your property management company should be implementing the best practices for maintaining that economic occupancy rate, through advertising, marketing, making sure they’re adjusting rental rates properly… But you are the asset manager, or your partner is the asset manager, so it’s your responsibility to oversee and advise your management company. Specifically, you need to let them know how quickly you want the renovations to be made, and making sure that they can actually do the renovations… So you don’t wanna say “Hey, I wanna do 30 renovations a month”, and they’re like “Well, we can only do 10”, and you say “No, I’m gonna force you to do 30.” You don’t wanna do that. You need to make sure that you are adhering to their abilities.

So you don’t wanna force them to do renovations too quickly, you don’t want to be too aggressive with the pace you do renovations either… So you don’t wanna go in there with the plan of doing ten a month and then all of a sudden deciding you wanna do 15-20 a month. Stick to whatever your pre-approved renovation plan and budgets were based on your conversation with your property management company, as well as your pre-approved rental premiums that you specified during the underwriting and the due diligence phase.

Now, before we wrap up, a quick note on how to actually renovate units… Because if you’re a value-add investor, you’re buying a property that’s already stabilized, so the occupancy rate is 85%+… So obviously you can renovate those 15 vacant units pretty quickly, or ones that want to be turned over within the end of the month… But what about the other units? You most likely don’t want to wait for those 85 units, you don’t wanna wait for all those leases to expire to actually renovate the units, so here are a few tricks to renovate your units at a faster pace, without having to wait for the leases to naturally end.

One would be once you’ve renovated those 15% vacant units in our example, then you can offer those newly-renovated units to a resident who currently lives in a non-renovated unit, so that you can renovate their unit. So if you can technically transfer  15% of your unrenovated unit tenants to the 15% that are now newly-renovated, and do those next 15%, and then continue that on until you’ve done all of the units – obviously, in combination with a few other strategies…

We can also increase the rents on the unrenovated units to promote turnover.  For example, if a lease were to expire and the person wants to resign their lease, you can increase the rent by whatever your projected rental premium is… Let’s say you plan on spending 10k on a unit and raise the rent by $150. Then if someone who is living in an unrenovated unit’s lease expires, you can raise the rent by $150. If they accept it, then great; you’ve got essentially $10,000 worth of work for free. If they don’t and they move out, then you can renovate that unit.

But obviously, you don’t wanna have a large influx of vacant, unrenovated units, and if you do, don’t feel like you have to renovate every single one of them. If you take over and then 15% of the people’s leases expires and you say “Hey, I’m raising the rent by $150” and they leave, don’t feel like you have to renovate all 15% of the units. Just make sure you stick to your plan. If you’re gonna only renovate (let’s say) half of them, then lease the rest back and renovate those the next 12 months.

Another strategy is to renovate the units while someone’s currently living there. The way to solve that is you say “Hey, we’re gonna renovate your unit and you will get the new, upgraded unit for really no cost to you.” This will depend on the level of renovation, but you can do it while they’re at work, basically. If you want to, you can put them in a hotel; if something crazy happens at the unit from a maintenance issue perspective, you can put people up in hotels… Again, these are just ideas; it’s really up to you and what your budget allows.

So one is renovate them as people move out, two is offering a newly-renovated unit to someone who’s already living there for a small charge, or even for free. Three would be to renovate the units while someone is actually living there, and then four would be to increase the rent on a non-renovated unit, so that you promote some turnover.

And again, if you have 100 vacant units, don’t feel like you have to renovate all of those, ten a month, for ten months, and you’ve got all these vacant units sitting there. It’s okay if you’ve got 5-6 units that become vacant; you renovate only half of them and then lease the remaining units back to the market unrenovated, and then catch them on the next cycle… As long as your plan was to renovate these units over a 24-month period.

Overall, you want to renovate at a pace that will not adversely affect your occupancy rate, plus it will not make your property management company go insane. It needs to be based on what you and your property management company agreed to.

So those are five of the ten top asset management duties. Just to review – number one is implement the business plan. Number two is the weekly performance reviews, and we gave away that free weekly performance review document; three is investor distributions, four is the investor communications, which we’re going over tomorrow… So the real four is managing renovations, and then five is maintaining economic occupancy. In part two we’re gonna go over these last five top asset management duties – that’s six through ten.

In the meantime, make sure you check out the other Syndication School series that we have about the how-to’s of apartment syndications, and download that free weekly performance review tracker. All of that can be found at SyndicationSchool.com.

Thank you for listening, and I will talk to you tomorrow.

Best Ever Show Real Estate Advice from experts

JF737: How He Bought a 32 Unit Apartment Building at 6% and Wrapped It!

Today’s guest is extremely creative and is willing to do complex real estate transactions. Hear what he did with a 32 unit giveaway at 6% interest and sold it to another fellow Investor.

Jim Ingersoll Real Estate Background:

-Founder of The Investor Success Mastermind
-Author of Cash Flow Now: How to Create Multiple Streams of Real Estate Income
-Based in Richmond, VA
-Say hi at investingnownetwork.com
-Best Ever Book: Never Split the Difference

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JF36: Flipping Properties in Bad, BAD Neighborhoods

Flipping properties in bad neighborhoods can be scary and profitable. Today’s Best Ever guest talks about what it is like working in some of the roughest Las Vegas neighborhoods. He also gives invaluable tips how to effectively manage contractors.

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

Jacob Cherrington’s real estate background:

–        Has done over 150 flips in Las Vegas since 2009

–        Largest deal is a 200 unit flip

–        Currently flipping three 30 unit properties

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JF33: Using All Sorts of Financing to Build Your Empire

401k, banks, and hard money lenders oh my!

Plus owner financing, cash and mortgage brokers. Today’s Best Ever guest has financed properties through all these ways and shares with you tips for how to decide which one makes the most sense based on the property.

Plus, we talk about the keys to picking the right tenant and how that approach can influence your buying strategy.

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

Bill Shaffer’s real estate background:

–        He and his wife own 10 properties with 22 units in Colorado and Wyoming

–        Been investing for over 12 years in real estate

–        Real estate agent and also a civil engineer – unique combo, right?!?

 

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JF32: How to Collect the Most on an Insurance Claim

You’re standing in 4 feet of water. What’s your next step to getting the problem fixed and reimbursed for the damages? Today’s Best Ever guest is a public adjuster who represents property owners when they file insurance claims.

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

Les Weitman’s real estate background:

– Works as a public adjuster representing property owners who file insurance claims

– Became a real estate agent at age of 18

– Host of popular real estate investing podcast called Life on PIRE

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JF31: Scale the Top of the Real Estate Mountain by Learning This One Skill

What if, instead of specializing on a particular niche in real estate investing, you raised money for the deals and partnered with experienced real estate investors who actually manage and execute the deals?

Today’s Best Ever guest considers himself a money manager.  He believes raising and organizing money is the top of the real estate mountain and thinks other investors should learn the skillset. I agree.

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

Bryan Hancock’s real estate background:

– Currently has over 40 development projects in Austin, Texas

– His funds have raised more than $13,000,000 for real estate development in Austin, Texas over last 2 years

– Plans to raise $25,000,000 in the next year

– Founder of Inner 10 Capital (http://www.inner10capital.com/)

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JF30: Mo Problems. Mo Income. What?! Yep. Turning Problems Into Income.

Every property has at least one problem. What if you could turn that problem into actual income? Jacob shares with you a story where his team turned two poorly functioning laundry rooms into cash money.

Jacob Durtschi’s real estate background:

–        Investing in real estate for over 11 years

–        Founded Jacob Grant Property Management (http://jacobgrant.com/)

–        Manages over 400 properties in Idaho while continuing to rapidly expand

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JF 29: Questions You Need Answers to Prior to Your 1st Convo with Commercial Broker

First impressions go a long way. When you first meet a commercial broker it’s important to make a good impression so that you can build a good relationship with him or her over time. That increases the amount of deals you see and close on.

So, how do you make a good first impression? Bart Weprin shares the questions you should have answers to prior to speaking with a broker.

Bart Weprin’s real estate background:

–        90 transactions valued at nearly 300MM over last 3 years

–        Received award as #1 ranked Eastern Region broker for Sperry Van Ness

–        Over 20 years experience in commercial real estate

–        Managing Director at Sperry Van Ness and focused on multifamily

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JF 28: Investing in Dirty Words

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

Arndt Nicklisch’s real estate background:

–        Closed on almost $1.2BN in real estate transactions

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

–        Focused on investing in suburban office real estate

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JF27: Slashing Expenses, Staffing Properties, and Making Mooola

Amy Bors founded Winfield Property Mangement in 2006 and has since grown her company from 300 units under management to over 2,000. She is based in Tulsa, Oklahoma and shares her best advice ever on staffing properties, slashing expenses and making money.

Amy Bors’s real estate background:

–        Founder of Winfield Property Management (http://www.winfieldliving.com/)

–        President of Tulsa Apartment Association

–        President of Oklahoma State Apartment Association

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

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

Listen to hear his best advice ever!

Jonathan Twombly’s real estate background:

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

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JF25: Overseas Real Estate Strategies Making Money Right Now

Taylor has bought and sold in 5 countries. He’s actively doing deals and shares with us strategies he is currently using to buy real estate overseas.

Tune in to hear his best advice ever!

Taylor White’s real estate background:

  • Buys and sells one property every 3 months on average
  • Host of Overseas Property Insider podcast
  • Bought and sold in 5 different countries

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JF24: I Screen, You Screen, We All Screen for Tenant Screen…ing Tips!

Buckle up partner. Joanna Weber shares with you her best ever tenant screening tips. With the amount of money you save form lower tenant turnover after listening to her you’ll be able to buy your own ice cream store.

Get ready. She’s about to share with you her best real estate investing advice ever!

Joanna Weber’s real estate background:

  • Full time real estate agent in Boise, Idaho
  • Owner of 11 single family homes with a 12th under contract
  • Owner of a property management company in Boise Idaho

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JF23: The OTHER Ways to Invest in Real Estate

Being a landlord ain’t easy. Helen Stephens, a Certified Financial Planner of 20 years, shares with us other ways to invest in real estate without being a landlord.

Tune in to hear her best advice ever!

Helen Stephens’s real estate background:

  • Started as a banker in commercial lending
  • Has over 20 years experience as a Certified Financial Planner and is based in DFW
  • Founced www.aspenwealthmgmt.com

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JF 22: Effective Ways to Add Value in Multifamily Properties

Michael Becker controls 800 units and is well on his way to 1200. And, he has done it all within the last 12 months! Crazy, right? He shares how he did it, how to find value add opportunities and, of course…his best advice ever!

Michael Becker’s real estate background:

  • Originated over $250MM worth of debt as a commercial lender
  • Controls 800 multifamily units and is close to another 400
  • Lives and invests in Dallas/Fort Worth

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JF 21: Bouncing Back. Methodically Scaling. Big Results.

Louis’s first investment property didn’t go according to plan. He bought in New Orleans right before Katrina hit. It wiped out the property but taught him some valuable life lessons. Lessons he has applied to become an over of 173 multifamily units. Want to hear his advice?

Listen to the show to hear his Best Real Estate Investing Advice Ever!

Louie Rodriguez’s real estate background:

  • Lives in New Orleans, LA and bought first property before Katrina in 2005
  • Currently owns a 16 unit, 37 unit and 120 unit
  • Focused on buying next multifamily of over 150 units

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JF 20: Two Stories of Not Choosing Wisely & Lessons Learned

Our success depends on making the right choices. From who to partner with to if we did the property due diligence to close on a property. Ed Cox has over 19 years as a lawyer and works with real estate investors on a daily basis. He shares with us two stories of NOT choosing wisely and lessons to be learned from them.

Listen to the show to hear his Best Real Estate Investing Advice Ever!

Ed Cox’s real estate background:

  • 19 years practicing as a real estate attorney
  • Founder of Ed Cox Law (www.edcoxlaw.com)
  • Received Martindale Hubbell AV Preeminent Award that recognizes lawyers with the highest ethical and practice standards as voted on by judges and lawyers

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JF 19: Mastering the Master Lease Option Strategy with a Master Lease Option Master

53 Master Lease Options in 4 years on multifamily properties. I think it’s safe to say that Bill has mastered the Master Lease Option strategy. Want to learn about it and how you can communicate it to sellers so they understand and agree to it?

Great, then listen to the show to hear his Best Real Estate Investing Advice Ever!

Bill Walston’s real estate background:

  • Closed on 52 multifamily deals via a Master Lease Option strategy in the last 4 years
  • Former CPA and has a graduate degree in Tax Law 
  • Master Lease and Tax Strategist (http://www.billonbusiness.net/) based in Memphis, TN

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JF 18: Sneaky Small Stuff that Leads to Big Revelations

What do window tracks, outlet covers and the sides of dishwashers have in common? Well, Mark Ahern is about to tell you and, more importantly, why knowing the answer will help you initially evaluate the condition of a property faster.

He’s seen plenty of properties in his 25 years of property management experience and is ready to share his findings with you.

Listen to the show to hear his Best Real Estate Investing Advice Ever!

Mark Ahern’s background:

  • Over 25 years in property management mainly focused on multifamily properties
  • Currently oversees management of 1,600 units
  • District Manager at Sundance Property Management located in Cincinnati, Ohio (http://www.sundancemanagement.com/)

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JF 17: Focused on Numbers? Fugget About It!

Raise your hand if you are guilty of looking at the numbers on a property before learning how the property should be operated. You are not alone. Ok, I’ll put my hand down now too.

Chris Winterhalter shares priceless advice on the importance of fully understanding the operations as well as other incredibly valuable tips from investing overseas to hotel construction and everything in between.

Listen to the show to hear his Best Real Estate Investing Advice Ever!

Chris Winterhalter’s background:

  • His company has completed 9 major hotel construction projects totaling over 1,500 guestrooms
  • He and his partner own 118 units with no outside investors
  • Co-founder and managing member of KGC Partners
  • Focused on multifamily acquisition and hotel construction

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JF 16: How to Amass a Large Portfolio, Lose Most of It, and Come Back Stronger

By 2008 Kevin Bupp had amassed an impressive portfolio of over 100 properties including single and multifamily properties. He owned a mortgage company, a printing company and had streams of cash flow coming in on a monthly basis. Then the crash it and he lost 90% of his portfolio. Fast forward today and he’s successfully investing in multifamily properties with an emphasis on mobile home parks. Think he’s got some valuable lessons to share? You’re right – he does!

Listen to the show to hear his Best Real Estate Investing Advice Ever!

Kevin Bupp’s background:

  • Personally done more than $40,000,000 worth of real estate transactions
  • Investing for over 14 years in real estate
  • Serial entrepreneur – has owned a mortgage company, event company and printing company
  • Host of very popular podcast called Real Estate Investing for Cash Flow
  • Website is www.kevinbupp.com and is based in Clearwater, Florida

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JF15: From 100 Hours in Rat Race to 100 Homes

Andrew Lanoie had a full time job working over 100 hours a week and lived in a market that didn’t cash flow. Ouch. Can you relate? He found a way to put together a team of experts who helped him buy over 100 properties in 6 years. He is now doing real estate investing full time. Hooray!!! Listen to the show to hear his Best Real Estate Investing Advice Ever!

Andrew Lanoie’s real estate background:

  • Has done over 100 single family home deals in 6 years (while he had his full-time job!)
  • Successfully invested in Dallas, Memphis and Atlanta markets
  • Currently transitioning to larger deals – has a 44-unit under contract
  • Created Real Asset  Academy (http://realassetacademy.org/) to help investors with real estate deals

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JF 14 : Leveraging Your Real Estate Asset Without Selling It

J. Massey has amassed a portfolio of over 300 residential and commercial properties in six years. He has been though some very challenging times both personally and professionally and shares his story with us while providing practical real estate advice.

J.’s real estate background:

  • Owns over 300 residential and commercial properties
  • Successfully executed hundreds of real estate transactions

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Listen to the show to hear his Best Real Estate Investing Advice Ever!

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JF 13: Learn the REAL Story Behind a Property

Justin Bajema founded a property management company that has managed over 500 buildings. He tells us how to learn the REAL story behind how a property is performing. He’s also a Marine who received a Purple Heart and is a leading expert on the topic of veterans and entrepreneurship. It was an honor to speak with him for many reasons.

Justin’s real estate background:

  • Founded Access Property Management Group based in Grand Rapids, Michigan 
  • Purchased, rehabbed and managed homes across Western Michigan
  • Actively involved in multifamily and deal syndication 

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Listen to the show to hear his Best Real Estate Investing Advice Ever!

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JF 12 : Continually Evolve Your Approach…or Become Extinct

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

Ankit’s real estate background:

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

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Listen to the show to hear his Best Real Estate Investing Advice Ever!

 

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JF 11: Learn the Truth Behind a Property with this One Document

Bill Pederson is focused on self storage investing. He loves it and shares with you why. However, his Best Advice Ever is applicable to ANY real estate investing transaction. This advice can save you mucho dinero.

BIll’s real estate background:

  • Developed and owns a 250+ self storage facility (https://www.lockitandleaveitstorage.com/)
  • Participated in syndicated deals in office, retail and multifamily
  • Commercial broker based in Sioux Falls, South Dakota

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Listen to the show to hear his Best Real Estate Investing Advice Ever!

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JF 10: Ignore the Crazy Talk and Follow Your Vision

Lisa Phillips buys homes for 30k or less. That’s her model and despite all the people who said she was crazy buying at that price point in suspect neighborhoods, she followed her vision and continues to reap the rewards.

Lisa’s real estate background:

  • Purchased 4 single family homes at around 30k or less 
  • Developed a system for analyzing properties in neighborhoods that will cash flow but aren’t a war zone (www.affordablerealestateinvestments.com) and is based in Arlington, Virginia 

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Listen to the show to hear her Best Real Estate Investing Advice Ever!

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JF 08: Insurance Expert Talks about Risky Investments

The term “risky” can be a bit vague when it comes to investing but not when you speak to an insurance expert. They underwrite based on historical performance of properties and the characteristics the property has. 

Brian Huwel’s real estate background:

  • Over 15 years of experience in the insurance industry
  • Purchased investment property so see things from both perspectives – the investor & the insurance company
  • Recently created his own company, Huwel Insurance Agency, based in Cincinnati, OH

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Listen to the show to hear his Best Real Estate Investing Advice Ever!

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JF 07: Uncovering Why Real Estate Crowdfunding is So HOTTT

Matt Rodak recently launched a crowdfunding real estate website called Fund that Flip. He talks to us about crowdfunding rules and why it’s beginning to take off in a big way.

Matt’s real estate background:

  • Founder of Fund that Flip (www.fundthatflip.com), a crowdfunding platform for residential flips – based in New York City
  • Worked with major real estate companies in a variety of capacities including most recently as a business development executive for FM Global, a commercial real estate insurance company

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JF 06: Cautionary Tale of Joint Ventures from an Attorney

Douglas Dowell has been involved in many areas of real estate but we’re going to focus on his background as a real estate attorney. He gives us incredible insight into joint venture agreements and what to look for prior to creating one. He also talks about raising money for syndicated deals.

Douglas’s real estate background:

  • Over 4+ years as an attorney working on litigation and landlord/tenant cases
  • Worked at Marcus & Millichap, the nation’s largest commercial real estate brokerage firm

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JF 05: Get Apt Investing Advice from the Guy Who Wrote the Book on It

Peter Harris literally wrote the book on apartment investing (see below) and has learned from some very successful apartment investors. Learn what he has to say and hear some inspiring case studies.

Peter’s real estate background:

  • Owns over 1,000 apartment units
  • Purchased over $20,000,000 worth of apartment communities 
  • Co-author of Commercial Real Estate Investing for Dummies
  • Been in the business over 10 years and is based in San Francisco, California

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Listen to the show to hear his Best Real Estate Investing Advice Ever!

p.s. I made a rookie mistake when I didn’t mute my mic so you can hear some background noise towards the end of our call. So sorry! Lesson learned.

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JF 04: Experienced Property Manager Shares His Best Ever Advice

Ford Butler and his team currently manages my portfolio of single family homes in Dallas-Fort Worth and I can’t speak highly enough about my experience with their team. They have single family property management down to a science.

Ford’s real estate background:

  • Co-founded Emerald Residential Property Management based in Dallas-Fort Worth 
  • His company manages over 400 residential units with a focus on single family homes
  • Been in the business over 10 years

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Listen to the show to hear his Best Real Estate Investing Advice Ever!

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JF 03: Learn Why Accredited Investors Invest in Your Deal

So often we hear from the people putting syndicated deals together but rarely (ever?) do the actual investors in the deals get interviewed. Wouldn’t it be interesting to hear from an investor on WHY he investors in deals and WHAT he looks for?

Brandon Evans’s real estate background:

  • Passive investor in multiple multifamily syndicated deals
  • Successful NYC entrepreneur who has created or co-created 4 companies

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Listen to the show and learn how to appeal to investors when you are raising money! (aka – Best Advice Ever!)

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JF 02: Real Estate Syndication and One Lawsuit Happy Tenant

I always love speaking with Michael Blank as we share a similar philosophy about getting your mind right before you get your money right.

Michael’s real estate background:

  • Put together multiple syndicated deals
  • Flipped over 30 homes in 2 years
  • Consults investors on apartment investing, raising money and deal syndication

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Listen to the show to hear his Best Advice Ever!

 

 

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JF 01: Lending Advice from a Billion Dollar Lender

Want to hear from a billion dollar lender? Thought so.

Mic Ginnever’s real estate background:

  • Principal at BlueMark Capital headquartered in Cincinnati, OH
  • Originated over $1,000,000,000 (yes, billion) worth of loans on commercial real estate
  • Been in the lending business over 25 years

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Listen to the show to hear his Best Real Estate Investing Advice Ever!

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