Passive Income Through Multifamily Real Estate

Latest Episodes:

Episode #157: Asset Protection with Wayne Patton Dec 14, 2020

Show notes

Asset protection is a crucial part of growing your wealth, yet it is often overlooked by entrepreneurs. Today’s guest, Wayne Patton is an asset protection attorney, and he is here to share his expertise with us. In this episode, Wayne explains how he approaches asset protection for his clients, and then how he helps them mitigate risk. We also hear about some of the key changes that the pandemic has brought to the space. Not only are more people thinking about the importance of asset protection, but it has also given them the time to put the right plans in place. As Wayne highlights, protecting your assets requires a proactive approach, and it cannot be done as a reactionary measure when a business is in trouble. Asset protection must be an integral part of an overall scaling strategy. Along with this, Wayne also sheds light on why operators should protect themselves, how limited partners can look after their assets, and separating personal and business assets to ensure maximum protection. To hear more about this key piece of your syndication business from a seasoned expert, join us today!

Key Points From This Episode:

Wayne’s background and the work he currently does in asset protection planning.
How asset protection plans work to stack the deck to favor settlements.
Some of the changes that have happened in the asset protection space due to COVID-19.
The importance of being proactive with asset protection planning and an example of Wayne’s client’s success.
Important things that operators should know about protection from liability.
Why the best asset protection plans are the long-running ones according to Wayne.
How limited partners benefit from the operator’s asset protection.
The types of protection anyone who uses leverage can utilize.
That separating your personal and business lines of credit is crucial.
Asset protection needs to be part of the strategy of growing your business.
Final Four Question with Wayne: The tools that he can’t do without, his biggest mistake people make in real estate investing, and more!

Tweetables:

“I have one area of focus and that is asset protection planning. What that means is I dig really deep into individual situations. I try to identify or help clients identify risks that they have that they face and that they might not have any idea that they have that they face. And then we figure out ways to mitigate that.” — Wayne Patton [0:01:48]

“If you’re thinking about this last minute, post hoc, after the fact, after the pandemic hits, you’re in a really bad situation because the poker chips are already on the table and you can’t pull them off once your cards have been dealt.” — Wayne Patton [0:06:24]

“The worst thing you can do is have your business lines of credit at the same place where you have your home mortgage and all of your bank accounts because the banks will just go berserk in terms of taking your assets if your business line isn’t current. I have seen it happen a number of times.” — Wayne Patton [0:19:17]

“Surround yourself with a great team of people, including an asset protection attorney.” — Wayne Patton [0:26:22]

Links Mentioned in Today’s Episode:

Asset Protection Attorney Wayne Patton

Wayne Patton Phone Number

Passive Income Through Multifamily Real Estate Podcast Episode 51

Vanderbilt University

Force majeure and contractual obligations

Episode #156: Scaling with Jeff Klotz Dec 11, 2020

Show notes

Scaling is probably one of the ultimate goals of any business, so it’s important to be prepared to manage this growth properly. In today’s episode, Jeff Klotz, of The Klotz Group of Companies joins us to discuss scaling and how they have successfully managed to do it. We hear about the importance of timing, how a good team makes all the difference, and why you need to be ready to face many roadblocks. Along with this, we also talk about Jeff’s obsession with KPIs and how they help the team make informed decisions, and why getting your mind right will get you to the next level every time. If you are looking for some advice on how to effectively scale, this is the show for you!

Key Points From This Episode:

Hear about Jeff’s background, and what the Klotz Group of Companies does.
The key factors and decisions that contributed to Jeff being able to scale his business.
Some of the ways Jeff and his team overcame the obstacles of multifamily.
The role that KPIs have played in Jeff’s decision-making.
Using technology to get ahead and some of the software Jeff and his team utilize.
Jeff’s take on mindset and how they think about excellence.

Tweetables:

“I think the real challenge in scaling was adding so many new people to that team so quick a period of rapid growth. I’d give credit to the people. I surrounded myself by the absolute best people I could find and we were obsessed with figuring out how to work the best we could together. That’s what really enabled us to grow at such a lightning-fast speed that we did about 10, 12 years ago.” — @JeffKlotz [0:02:19]

“When you’re all working together as one team, with one common goal, you’re dealing with the problems, you’re dealing with the successes, you’re celebrating the wins and victories, it makes a big difference.” — @JeffKlotz [0:03:57]

“It is easy to grow an organization. It is hard to maintain an organization and run an organization that has grown.” — @JeffKlotz [0:09:15]

Links Mentioned in Today’s Episode:

Jeff Klotz

The Klotz Group of Companies

Jeff Klotz on Twitter

Timberline

PowerBroker

The Garzella Group
redIQ

APT Capital Group

APT Capital Group on YouTube

Passive Income Through Multifamily Real Estate Facebook Group

Episode #155: Getting Started in Real Estate Investing with Ali Mahdavi Dec 07, 2020

Show notes

With the wealth of resources available online, anybody can teach themselves about investing, but some knowledge can only be gained through experience. Here to talk about his investment journey and the lessons he has learned along the way is data-driven investor, mindset coach, and realtor Ali Mahdavi! Being an immigrant born in Iran, Ali quickly learned to adapt, which has allowed him to successfully grow personally and financially. We hear from Ali about his college education in the U.S and how he only learned about investing after graduating. By devouring podcasts, books, and videos, Ali taught himself what he could, and he solidified his knowledge through networking and taking action on what he learned. Ali talks about his first real estate investment, a condo in LA, and what he learned about investing in appreciating but negative cash flow assets from it. From there, we get into some of Ali’s investing tips, and he weighs in on diversification, how to underwrite deals and syndications, how to manage properties in far off locations, and what he plans to invest in going forward. We wrap up for the day with our final four questions for Ali, hearing him talk about the value of conservative financial underwriting, learning by teaching, and why his phone is his greatest tool! Don’t miss out on today’s awesome conversation about investing with Ali!

Key Points From This Episode:

Ali’s childhood in Iran and how he learned about investing after moving to the U.S.
Getting into real estate by purchasing a condo; negative cash flow on an appreciating asset.
Investing in an appreciation market with negative cash flow versus investing in cash flow assets.
How Ali educates himself about money and verifies information by consulting multiple sources.
Diversification and conservative financials; lessons learned about investing.
Mindset-related investing hurdles Ali has overcome: leveraging staff, technology, and personal action.
Tips for how to underwrite and manage properties that are in far off locations.
Syndications and single-family homes Ali is invested in, and his investing plans going forward.
Markets, GPs, and the asset class – things Ali assesses before investing in syndications.
What Ali would tell his former self about investing if he could rewind time.
Lalita’s final four questions with Ali: his best tool, biggest mistake, growth strategy, and more.
Where people can find Ali online and learn more about what he does.

Tweetables:

“I like the cash flow market far more than the West Coast appreciating market.” — Ali Mahdavi [0:07:06]

“One of the things I love is diversification. Not only just investing in a condo or in one market, but maybe extending it a little bit more.” — Ali Mahdavi [0:09:02]

“The general partners are, for me, the most important thing.” — Ali Mahdavi [0:16:15]

Links Mentioned in Today’s Episode:

Ali Mahdavi on Instagram

BiggerPockets

Ticketmaster

APT Capital Group

Passive Income Through Multifamily Real Estate on Facebook

Schedule a Call with Kyle Mitchell
Bullpen

Episode #154: Managing Your Team with Amy Tiemann Dec 04, 2020

Show notes

Today we get to hear from Amy Tiemann, a real estate syndicator who also owns and manages apartment complexes. Being both a property manager and multifamily investor, Amy has a rare advantage when it comes to asset management. For her, it is imperative to first gain experience as a property manager before you can truly be great at asset management. In this episode, Amy talks about the pros and cons of being vertically integrated, the importance of hiring for company culture fit, and why she believes in employing cross-functional team members rather than ones who are skilled at only a single role. She also advises on retaining your best workers and making data-driven decisions. Be sure to listen in!

Key Points From This Episode:

What Amy does and the areas she is currently focused on.
The advantages and disadvantages of being vertically integrated.
Hear how Amy goes about building her teams around her company culture philosophy.
How their team collaborates cross-functionally and why it is beneficial to all the parties.
Why Amy would rather hire someone with a broader skillset than just a leasing agent.
The importance of paying people well and giving them a purpose if you want to retain them.
How property management and investing in multifamily makes her a better asset manager.
Amy shares her two asset managers superpowers, including interpreting the data!

Tweetables:

“When you’re looking at, from asset management to property management, there are so many things that then overlap. Being the property manager on a property and also being the asset manager, allows you to really get in-depth and really understand the operations of what everything is going on in that property.” — @amybethtiemann [0:01:30]

“But I would much rather have somebody with a higher skillset of project management that I could teach the leasing to because they’re going to get it.” — @amybethtiemann [0:06:40]

Links Mentioned in Today’s Episode:

Amy Tiemann

Amy Tiemann on LinkedIn

Amy Tiemann on Twitter

DISC Personality Test

Tableau

Garzella Group
redIQ

APT Capital Group

APT Capital Group on YouTube

Passive Income Through Multifamily Real Estate Facebook Group

Free Call with Kyle or Lalita

Episode #153: Starting Your Own Property Management Company with Colin Douthit Nov 30, 2020

Show notes

Why would someone start their own property management company instead of just hiring a third party? Today’s guest, Colin Douthit has some answers. Colin is the founder and owner of Atlas Property Management, has been in the real estate space for just three years, and already manages over 360 doors, with another hundred in the pipeline. In this episode, we talk about why Colin decided to start his own property management company, and the pros and cons of doing do versus hiring a third party. He explains some of the challenges, standard operating procedures, and tools he uses, as well as some tips about what owners can do to partner with property management companies to make it a little easier for both parties. Don’t miss this episode!

Key Points From This Episode:

Colin introduces himself and explains how he got into real estate as an investor.
The pros and cons of starting your own management company versus hiring a third party.
Inversely, why someone would hire a third party versus starting their own company.
Some challenges with owning a property management company, like investors and tenants.
Dealing with the balance between the goals of different customers, particularly disparities in desired rent and maintenance pricing.
Standard operating procedures when running a successful property management company.
Colin talks about using Buildium property management software and why it is a great service.
The three top skills one needs as an investor before starting a property management company: Understanding investors, organization, and business acumen.
The number of doors necessary per property manager to start a profitable company.
The specialized approach that Colin takes to focus the work that property managers do.
Colin talks a bit more about the role his leasing agent plays and the commission she takes.
What owners can do to partner with property management companies to make it easier.
How COVID-19 has impacted Colin’s business and projected long term implications.
Why Colin can’t do without G Suite, and why you should always take out a construction loan.

Tweetables:

“There’s a certain number of doors that you need per property manager to, at least in our analysis, every company’s going to run it differently, but to be profitable, right?” — Colin Douthit [0:10:53]

“As much as we wanted to give as much attention to the owners is we can, once we hit 30, 40 owners, you might not always remember all the plans that you had set forth. So like, ‘Hey, what was the goal on this one again?’ Just be understanding that we’re trying to execute your goal. We want it to be as successful as possible.” — Colin Douthit [0:15:28]

Links Mentioned in Today’s Episode:

Colin Douthit on LinkedIn

Atlas Property Management

Atlas Property Management on LinkedIn

Atlas Property Management on Instagram

Atlas Property Management on Facebook

Buildium

G Suite

APT Capital Group

Passive Income Through Multifamily Real Estate on Facebook

Schedule a Call with Kyle Mitchell
Bullpen

Episode #152: Renewal Management with Chris Jackson Nov 27, 2020

Show notes

For this Asset Management Fridays edition of the show, Chris Jackson from Sharpline Equity joins us to talk about renewal management now versus a few months back! Chris is a multifamily investor and syndicator with 10 years of experience, who has raised over 12 million dollars and completed over 500 unit transactions. Chris weighs in on the value of having more communication touchpoints with tenants now that so many people are canceling leases. This strategy also works when it comes to keeping track of whether a renewal plan is working – simply gauge if tenants are staying or leaving and you’ll know! In sum, Chris swears by the importance of being a good people person when it comes to asset management, talking about how it benefits everything from renewal management to delinquency management, resident marketing, community development, and teams on-site. Other takeaways from Chris today include how renewal management should change on a property over time, and a few lessons he learned after trying to scale a single-family portfolio by applying a multifamily lens to it. Tune in for a brief but informative chat about best practices for renewals with Chris Jackson today!

Key Points From This Episode:

Chris’s real estate credentials and passion for bringing technology into asset management.
Perspectives on how much asset management has changed in the last two months.
How to approach residents about renewals and units in the current climate: more touchpoints.
The cycle of how renewal management changes overtime after a property is bought.
A story of things going awry while scaling a single-family portfolio with a multifamily lens.
How Chris tracks, if a renewal plan is working; are residents staying after the renewal?
Our guest’s views on renewal management changing over the next five years.
Chris’s superpower and the use of relationship-building for good asset management.
Different forms of communication Chris uses to suit his tenants’ preferences.

Tweetables:

“Renewal management looked like one thing before. Renewal management now in the last two months looks different.” — Chris Jackson [0:01:27]

“Relationship building affects all of the pillars of asset management from renewal management to delinquency management, resident marketing, community development, and your team on-site.” — Chris Jackson [0:05:38]

Links Mentioned in Today’s Episode

Chris Jackson

Sharpline Equity

Multifamily Unveiled

Passive Income through Multifamily Real Estate group on Facebook

Kyle Mitchell on Facebook

Gary Lipsky

redIQ

APT Capital Group

Episode #151: Why Providing Value Leads to Success with Sterling White Nov 23, 2020

Show notes

Many people will tell you that you need heaps of money to get started in real estate. But Sterling White, today’s guest, is proof that you don’t always need money to start making money. With just under 400 units, Sterling is a top BiggerPockets contributor and hosts the Real Estate Experience Podcast too. We begin our conversation with Sterling giving us some background. He talks about growing up in a “red-zone” neighborhood and how his entrepreneurial spirit led him into real estate investing. Having transitioned from owning 150 single-family homes, we ask him how he got into multi-family investing. In an expensive market, where people were paying more than they should have, Sterling shares how he bypassed the brokers by tracking down owners and dealing with them directly. We discuss his strategy of tracing down owners and then cold calling them. Illustrating the success of his model, Sterling talks about how he landed a deal with a mom and pop run property. Even though they didn’t want to initially sell, Sterling maintained a relationship with the owners so that he was always front-of-mind. Eventually, he got that deal. After providing details on his process, we explore his approach to underwriting and how building his personal brand has been valuable in establishing his credibility and authority. Sterling highlights the importance both of going the extra mile and of providing value. As he explains, it was through providing value to a mentor that he got his start in real estate. Tune in to hear how you can provide value and kick-start your personal brand and career.

Key Points From This Episode:

Sterling’s start in real estate and how his background fueled his entrepreneurial drive.
Why Sterling transitioned from single-family to multi-family investments.
What skip tracing is and details about Sterling’s first multi-family deal.
Instead of waiting for market corrections, going straight to the owner to make a deal.
How Sterling finds his deals by finding apartments and then cold calling.
Building relationships to land a deal if the owner won’t initially sell to you.
Sterling’s process in contacting prospective sellers.
Financing a deal through the seller or through traditional means.
How Sterling approaches underwriting and at what point he conducts a deep analysis.
The importance of building your personal brand — Sterling provides tips on starting out.
How Sterling found a mentor by finding a way to add value to their company.
Hear how Sterling got Grant Cardone on his podcast.

Links Mentioned in Today’s Episode:

Sterling White on BiggerPockets

Sterling White on Instagram

Sterling White on Linketree

The Real Estate Experience Podcast

From Zero to 400 Units

Honda Accord

TruePeopleSearch

BeenVerified

Jab, Jab, Jab, Right Hook

Grant Cardone

Passive Income Through Multifamily Real Estate Facebook Group
Bullpen

Episode #150: Business Plan Execution with Devin Elder Nov 20, 2020

Show notes

Executing your business plan is not always easy as many variables can derail your initial course of action. Today’s guest, Devin Elder, knows the importance of sticking to your guns and has seen firsthand the benefits of persevering with a tried and tested investment thesis. In this episode, Devin sheds light on his company, DJE’s business plan, their desired ROI on money spent on interiors, and the asset classes they invest in. While doing heavy value-adds may not appeal to all operators, for Devin, it’s a chance to be creative. We also touch on systems and how software has helped the businesses streamline their processes for optimal efficiency. Along with this, Devin shares some wise words as well as a look at what his asset management superpower is. Tune in today!

Key Points From This Episode:

Hear about Devin’s background, where he’s based, and his current investment focus.
Devin’s most frequently implemented business plan for apartment purchases.
Why dealing with people is the most challenging part of executing a business plan for Devin.
The double-edged sword of big value-add deals: Opportunity versus challenge.
Why Devin has not veered too far from his workforce housing investment thesis.
The role that software automation plays in being able to execute a business plan.
Two pieces of advice Devin would give his younger self.
Find out what Devin’s asset management superpower is.

Tweetables:

“We’re looking for a substantial component of units that haven’t been renovated that we can go in, update, and see an ROI 20% or better on an annualized basis.” — Devin Elder [0:02:15]

“Real estate is easy, people are hard.” — Devin Elder [0:02:33]

“We are scared of the unknown, right? And it looks scary at night when you can’t see anything and in the morning it is silly that you are scared of it. So, you have to get the other side of that fear.” — Devin Elder [0:09:29]

Links Mentioned in Today’s Episode:

The Garzella Group

DJE Texas Management Group

Devin Elder

Gary Keller

APT Capital Group

APT Capital Group on YouTube
redIQ

Passive Income Through Multifamily Real Estate Facebook Group

Free Call with Kyle or Lalita

Episode #149: Starting a Fund with Dave Seymour Nov 16, 2020

Show notes

A fund is probably one of the most powerful and safest ways to diversify your assets, but how do you know when you’re ready to start a fund? And which markets should you invest in? Today’s guest, Dave Seymour, has some experience in this area. After 16 years as a firefighter and paramedic, Dave launched his real estate career, rapidly becoming one of the nation’s top real estate investors. Within his first few years, Dave has transacted millions of dollars of real estate and had become a leading expert in both residential and commercial transactions. Some of Dave’s areas of expertise lie in lending, commercial multifamily, financing, and retirement strategies. In this episode, we’re talking all there is to know about funds: how they work, how to start one, and how to know when you’re ready. Dave shares his experience with his partner, Walter Novicki, and shares some key advice for starting a fund of your own. Tune in today to find out more!

Key Points From This Episode:

Dave introduces himself and shares why he got into real estate to change his circumstances.
Flipping single-family houses on Flipping Boston while holding commercial real estate.
Transitioning from a W-2 into real estate required a change in Dave’s mindset and hard work.
Looking for a hand up rather than putting a handout – there has to be reciprocity in business.
Dave explains how a fund works and shares a bit about the fund he started with his partner.
Why a fund is probably one of the most powerful and safest ways to diversify your assets.
What Dave’s day-to-day looks like as a fund manager – he raises money all day, every day.
Which markets his fund invests in, and why Dave avoids the big 200+ apartment complexes.
The core-plus business model of taking an underperforming asset and turning it, and how Dave does it faster.
Why Dave has included a 10% allocation for direct lending in the buy, fix, and flip space.
Dave explains that fund two will be a $250 million fund, potentially structured as a Reg-A.
When Dave and his team were ready to start a fund and how COVID has created massive opportunities for them.
The tools in real estate that Dave can’t do without is his network and his team.
Dave’s biggest investment mistake and his main takeaway – educate, don’t speculate.
Why Dave needs to convince his wife to sell their primary residence and take the equity out.

Links Mentioned in Today’s Episode:

Dave Seymour on Twitter

Dave Seymour on LinkedIn

Dave Seymour on Facebook

Freedom Venture Investments

The Flipping Formula

APT Capital Group

Passive Income Through Multifamily Real Estate Facebook Group

Free Call with Kyle or Lalita
Bullpen

Episode #148: Raising Capital with Brian Adams Nov 13, 2020

Show notes

When it comes to raising and managing capital, it’s all about putting the investor first. Today’s guest is Brian Adams, and he joins us to talk about all lessons he has learned about this syndication fundamental. Brian is the Principal and Founder of Excelsior Capital, and he starts out today talking about his journey into capital raising as well as his focus on buying up multi-tenant office properties in secondary markets in the Midwest and Southeast. From there, Brian gets into how he raised over $60 million of equity in three years after learning the power of listening to his investors’ needs! Brian raised so much capital that managing it brought a whole new bag of challenges, and we hear how this taught him to value things like reporting and transparency as highly as he does. For Brian, networking is key, and he weighs in on how he took the opportunity provided by some family connections initially and used it to build an ever-expanding community of investors who trust him. Brian gets into essential software tools, the value of his CFA certified staff, and of course, his superpower today, too. For all this and more, listen in!

Key Points From This Episode:

Brian’s journey into capital raising, the assets he buys, and his portfolio size.
How Brian learned it’s easier to raise capital by asking key investors what they want to buy.
Lessons learned about effective management after raising more capital than Brian could manage.
The role of family networks in gaining momentum for raising capital initially.
How Brian scooped up his second phase of investors by offering a unique opportunity in the office space.
Indispensable software for Brian including Juniper Square, ETS, and Slack.
The use of Brian’s CFA certified team and why his gift for networking his is superpower.

Tweetables:

“It’s much easier to scale and you will raise much more capital if you actually take the time to sit down with your most logical network of investors. Folks that are likely to give their resources to you and just ask them what they want.”— @ExcelsiorCapit1 [0:02:37]

“We’re very focused on reporting, transparency, and actually, what that experience of the investor is beyond just what the economics over the returns are.” — @ExcelsiorCapit1 [0:04:58]

Links Mentioned in Today’s Episode:

Brian Adams on LinkedIn
Excelsior Capital

Passive Income through Multi-family Real Estate group on Facebook

Gary Lipsky

Kyle Mitchell