Passive Income Through Multifamily Real Estate

Passive Income through Multifamily Real Estate Group on Facebook

Episode #96: Natural Disasters & Curveballs with Anna Myers May 15, 2020

Show notes

We can all agree that this moment is unprecedented and now is the time to be working on the best strategies for coping and laying foundations to weather similar future storms. Joining us today to speak about how her company is dodging curveballs is Anna Myers from Grocapitus Investments. Anna shares some valuable advice for listeners both from an asset management standpoint as well as with regard to how teams should be working together. She weighs in strongly on the value of working with property management firms who have a disaster plan in place, and people shouldn't be scared of using each other’s ideas if they are good ones. It’s about implementing whatever knowledge we can to survive right now. Anna also talks about how her team has switched their mindset from a wealth generation to a capital preservation focus. Our guest gets into some of the specifics of how Grocapitus is dealing with tenants right now, touching on the fine line between offering assistance, filling units, keeping rents paid, and making sure not to accept people who might cause trouble. For some great tips for switching gears and traversing this unfamiliar terrain be sure to tune in.

Key Points From This Episode:

An introduction into Anna and the value-add/constructed units at Grocapitus.
The use of management firms and tech in Grocapitus’ systems.
Anna’s first call in a crisis: her property managers.
Best practices that are happening right now as far as survival is concerned: collaboration.
Things to focus on from an asset management standpoint: preserving, not producing, capital.
Looking out for delinquency rates and how to judge normal ones presently.
Focusing on occupancy but being cautious because bad tenants can’t be evicted now.
Different processes to focus on after the crisis is over.
Continuing to build a ‘war chest’ to buffer future crises; taking on fewer expenses.
Percentages of drops in net operating income Anna foresees.
Why people will use their stimulus dollars to pay rent.
Anna’s superpower: organizing people and data.

Tweetables:

“We really have to team up with our property managers on this. We have to have really, really tight communication. This is a whole emerging world we're in.” — Anna Myers [0:03:21]

“We don't normally have this type of situation where we can't use the eviction as a threat.” — Anna Myers [0:06:02]

“Our number one initiative right now as asset managers is capital preservation of our investors.” — Anna Myers [0:07:59]

“Yes, you can buy real estate in this time.” — Anna Myers [0:11:28]

Links Mentioned in Today’s Episode:

Anna Myers

Grocapitus Investments

Gary Lipsky

Multifamily University

Neal Bawa

Lake Growth Financial Services

Episode #95: Becoming Better than Debt Free with Mark Willis May 11, 2020

Show notes

For a long time, it seemed that the only way to increase your wealth was to invest in the stock market. And while Wall Street wants us to believe that this is still true, it is far from being the best option to ensure long-term financial prosperity. Investing in real estate, while not the be-all-and-end-all, is a far more stable and predictable way to grow your wealth. Our guest today, Mark Willis, has experienced the value of real estate investing first-hand. He is a certified financial planner, a two-time number one bestselling author, and the owner of Lake Growth Financial Services, a financial firm in Chicago, Illinois. He has not only helped hundreds of clients in taking back control of their financial futures, through tax-efficient solutions, but he has also changed his own life by altering his investment strategy. Along with his impressive resume, Mark is also the co-host of the Not Your Average Financial Podcast. In this episode, Mark sheds light on why tax-deferred accounts are traps to keep you poor in retirement. He shares the importance of asking what you want your money to do for you to understand how to structure your investment portfolio.

Key Points From This Episode:

Learn more about Mark’s background and what led him to start Lake Growth.
The ticking time bomb: Why Mark advises against tax-deferred retirement accounts.
Find out what the real rate of return on the stock market over 30 years has been.
Some of the characteristics of the ideal investment portfolio.
Why we have to accept that we are all part of the banking system in one way or another.
The difference between whole life insurance and infinite banking.
The importance of using a suitably qualified financial professional for infinite banking.
Rate of return vs rate of income: Why we should always be looking at ROI.
How a whole life policy with non-direct loans and other features are better than debt-free.
Final four questions with Mark: Investment tools he can’t live without, his biggest real estate mistake and more!

Links Mentioned in Today’s Episode:

Mark Willis on LinkedIn

Mark Willis on Twitter

Not Your Average Financial Podcast

Quantitative Analysis of Investor Behavior

Bank On Yourself Authorized Advisors

Wade Pfau

David Blanchett

Dave Ramsey

Asset Protection Attorney Wayne Patton

The Vision Driven Leader

Bank on Yourself

Passive Income Through Multifamily Real Estate Facebook Group

Episode #94: Marketing with Neal Bawa May 08, 2020

Show notes

Our guest today is Neal Bawa from Multifamily University and he is here to speak to us about his business and how he uses technology and data to stand out in the real estate market! Neal believes that doing your own marketing is preferable and this means going out and making sure you are seen! He explains his ideas of mega marketing and mega leasing and how they fit into his business model. These concepts are not necessarily for everyone but there might be a way that they can be incorporated into different size businesses, as Neal admits that his mega leasing strategy only makes money in a large scale model. Our guest also emphasizes his reliance on data and how following the numbers in the industry enables him to stay ahead of the game. We finish off our conversation thinking about the constant work that is required in multifamily real estate and how to address the never-ending line of bottlenecks that arise. For all this, join us on another great edition of our Asset Management Fridays, here at the Passive Income Through Multifamily Real Estate podcast!

Key Points From This Episode:

Neal's attitude toward third-party property management for marketing.
The concepts of mega marketing and mega leasing and how Neal employs these.
The services and site where Neal posts ads and how he makes sure not to get buried.
Considering how to employ Neal's strategies at a smaller scale.
Neal's asset management superpower! Using data and trends to excel!
Addressing issues and relieving bottlenecks constantly for successful asset management.

Tweetables:

“I believe that syndicators should be doing their own marketing in just about every instance.” — @nealbawa [0:02:24]

“Mega marketing is the process of generating a large number of tenant leads or prospect tenant leads by actively engaging tenants and doing a very large number of listings across the board.” — @nealbawa [0:02:57]

“Basically, almost all of the profit in the apartment industry is between the 87% and the 97% mark.” — @nealbawa [0:06:32]

Links Mentioned in Today’s Episode:

Multifamily University

Passive Income through Multifamily Real Estate Group on Facebook

Camilla Jeffs on LinkedIn

Episode #93: It's a Family Business with Camila Jeffs May 04, 2020

Show notes

Investing in real estate of any sort is a great idea, but some might say that things really get going when you make the switch to passive multifamily. Our guest on the show, Camilla Jeffs, has a journey in the business that has given her this viewpoint, and she joins us today to speak all about it! Camilla is an HR business partner, real estate investor, triathlete, musician, and mother of five awesome kids. After self-managing single-family properties for many years, Camilla and her family moved states and couldn’t take such a hands-on approach to their properties anymore. This was her passive investing ‘aha’ moment in disguise though because after hiring a property management company to take care of her properties, the only work she had to do was pick up a check! In today’s show, Camilla shares more about her journey with passive investing, telling us about how she stepped things up and got involved in multifamily syndication after moving yet again, this time to Arizona. She tells us about how entering multifamily through passive syndication was a great segue into the business. Joining this conversation, listeners will also hear Camilla’s thoughts about how she evaluates deals, stays up to date, and makes sure she only works with the best operators too.

Key Points From This Episode:

An introduction to Camilla, an HR business partner, real estate investor, and a happy mom.
How Camilla moved from active to passive investing after hiring a property management firm.
Camilla’s love of education and her favorite podcasts about real estate and motivation.
Advice for meeting and building relationships with good operators through meetups.
Attributes of good operators: trustworthiness, good communication skills, and experience.
The story of Camilla’s first passive investment: stepping up to multifamily after moving to Arizona.
How helpful meetups and joining a syndication are for getting into passive multifamily.
Camilla’s experience with the operator in charge of her first passive investment.
How Camilla learned how to evaluate deals and understand concepts specific to multifamily.
Tax benefits in passive multifamily; using techniques such as cost segregation.
The amount of income streams Camilla wants and how she arrived at that number.

Links Mentioned in Today’s Episode:

Camilla Jeffs on Facebook

Steady Stream Investments

Steady Stream Investments on Instagram

Smart Passive Income with Pat Flynn

InvestHer

Moneeka Sawyer

Liz Faircloth

RISE Podcast
Rachel Hollis

Wayne Patton

Wayne Patton’s Asset Protection

Passive Income through Multifamily Real Estate Group on Facebook

Lalita Mitchell on Facebook

Episode #92: Post Close with Matt Picheny May 01, 2020

Show notes

In this episode, listeners can look forward to hearing about the 30 to 90-day post-close process from Matt Picheny, a managing partner at MJP Property Group. He discusses the importance of establishing a plan for each of the three intervals so that action can be taken as soon as each new step of the acquisition process is finalized. As you will learn from Matt, the post-close process, in fact, starts pre-close, in particular, in the period between due diligence and the deal closing. Matt also gives suggestions for burning off the loss to lease, adding value to a property right away, and he gives examples of how tenants can be eased into higher rates. Tuning in, listeners will also hear how Excel dashboards can be used to stay organized and in step with property managers and Matt explains why attention to detail is a superpower.

Key Points From This Episode:

Hear how many units Matt is invested in and the ratio of active to passive.
Putting together a list of 30, 60, and 90-day goals following the close of a deal.
Looking for immediate add value and burning off the loss to lease as soon as possible.
Things you can do to soften the blow of bringing the rent up to the full market.
Gathering the post-close team in the period between due diligence and the deal closing.
Find out which software and tools Matt uses to keep organized.
Critical pieces on the Excel dashboard that are discussed with proper managers.
Matt’s asset management superpower: laser-focused attention to detail.

Tweetables:

“I like to put together a list of 30, 60 and 90-day goals that I look to accomplish once I've closed on a property.” — Matt Picheny [0:01:57]

“What I found is those tools are only as good as the input that's going into them. If all of your team members aren't on board and familiar with that software, it doesn't really work very well.” — Matt Picheny [0:07:22]

Links Mentioned in Today’s Episode:

Matt Picheny

Matt Picheny on LinkedIn

Matt Picheny Email

Passive Income through Multifamily Real Estate Group on Facebook

Asana

Apartments.com

Gary Lipsky on Twitter

Pillars of Wealth Creation

Episode #91: High School Shop Teacher to Successful Real Estate Investor with Todd Dexheimer Apr 27, 2020

Show notes

With enough effort and the right amount of education you can transition from an unfulfilling job into real estate, but don’t expect it to be easy! Our guest for today is Todd Dexheimer and he joins us to talk about his amazing success in the business after quitting his high school teaching job a few years earlier. Todd didn't love teaching and it was at this point that he started looking around for something that fit him a little better. He sniffed out entrepreneurship and real estate investing by reading a few books and the next thing he was obsessed. A few years and some very thorough preparations later, Todd had finally bought his first property! In our conversation with Todd today we talk about how to get into real estate, what it was like starting out in 2008, and some best practices for raising capital and keeping investor relations secure. We hear about Todd’s dedication and smart use of partnerships taking him from fix and flips to multifamily despite the 2008 recession and ample naysayers. Todd then weighs in on the value of very clear communication and other key steps for ensuring you have the right lenders and that everybody is on the same page.

Key Points From This Episode:

Background on Todd and his projects from fix and flip to multifamily.
Why Todd didn’t enjoy being a school teacher and began educating himself about real estate.
The timeline toward Todd buying his first property in 2008 after sticking teaching out.
Extensively researching before engaging; real estate can’t be learned fast.
What to do before getting into real estate: have patience and educate yourself.
How easy it is to think real estate is simple thanks to social media.
Getting into the game in 2008 and succeeding in projects despite naysayers.
How Todd managed to raise money and buy deals through different partnerships near 2008.
Investor relation best practices, from educating and raising early to good communication.
How to handle communicating with investors without coming across as desperate or pushy.
Quarterly updates Todd uses to keep in touch with investors outside of deals.
How Todd originally found his investors and finds new ones.
Which investor relations types tend to create consistent investors.
Todd’s number one tool and how valuable brokers are to his process.

Tweetables:

“Through a lot of research and just reading books and digging into things, entrepreneurship made sense, then real estate started making sense. I started really diving into it and got interested in it.” — @Pillarswealth [0:03:37]

“I was looking for properties for six months before I found my first property. It's not it just happened overnight.” — @Pillarswealth [0:06:27]

Links Mentioned in Today’s Episode:

Todd Dexheimer

Venture D Properties

BiggerPockets

Wayne Patten Asset Protection

Passive Income Through Multifamily Real Estate Facebook Group

Lalita Mitchell on Facebook

Episode #90: Property Management with Maureen Miles Apr 24, 2020

Show notes

Welcome back to the show and another edition of our Asset Management Fridays! Here to talk about her management process, systems and style is Maureen Miles from 4M Capital. As a returning guest, Maureen has so much to offer, with success in many avenues of real estate having branched out from a simple investment team to a multi-faceted company taking care of almost all areas of the business. For Maureen, this was a necessity after the frustrations of working with contractors who did not deliver — so she decided to handle it all! During our chat, she gives some great tips, including making sure that you are the signer on all your accounts to avoid being locked out of your money! We talk about the operations manual that is available to new employees at 4M and Maureen tells us about the software stack they use and how they are hoping to upgrade areas of it. We get into some future aspirations and our wonderful guest explains why she loves challenging deals that need some work! For all this and a bunch more from us here at the show, tune in!

Key Points From This Episode:

Maureen's company, 4M Capital, and the array of work that they do in real estate.
The frustration that led up to Maureen starting her own property management company.
Why to make sure you are a signer and not a user on all of your accounts.
The operations manual that Maureen and her team put together for the company.
Challenges that arise when starting a property management company and Maureen's advice.
The software tools that Maureen uses; Yardi, Asana, and EOS system.
Maureen's process aimed at becoming a third party property manager.
Recent lessons that Maureen has added to her list of checkups.
What Maureen is looking for in her upgrading from Yardi to more sophisticated software.
Maureen's asset management superpower! Going in for the dirty and unusual opportunities!

Tweetables:

“One of the biggest things I tell anybody that is going to use a third-party management company is to make sure that you are an actual signer on all of your bank accounts.” — Maureen Miles [0:03:20]

“Make sure you have people that are really aligned with you that can help you do it.” — Maureen Miles [0:06:00]

Links Mentioned in Today’s Episode:

Passive Income through Multifamily Real Estate Group on Facebook

First Responders Wealth Network

Episode #89: Helping First Responders Create Real Estate Wealth with Dave Knight Apr 20, 2020

Show notes

Oftentimes first responders, with their intense work lives, can get so consumed by what they’re doing professionally, that they neglect aspects like wealth creation. Our guest today, Dave Knight, is a full-time police officer and founder of First Responder Wealth Network, a platform dedicated to helping first responders achieve their financial goals through real estate investing. In this episode, Dave sheds light on his real estate journey and how he slowly built up the knowledge he needed to succeed. He didn’t want to keep what he had learned to himself, which is why he launched an educational platform. Through his work, Dave hopes that he can tackle the taboo of talking about money that is prevalent in the first responder community. He believes that by showing people different options, they can begin to imagine a different future for themselves. We also discuss which asset classes he is invested in, how he remains so passionate about education, and the importance of surrounding yourself with people who are succeeding. Be sure to tune in today!

Key Points From This Episode:

Learn more about Dave’s background as a police officer and his work in real estate.
How Dave found real estate and why he wanted to share his knowledge with others.
Why Dave wanted to give back to his community of first responders and the reception he’s had.
Find out how Dave is reaching first responders and different asset classes he’s focused on.
Why Dave is not too concerned about having a very particular niche.
A success story that Dave has seen from someone who has taken on his teachings.
Final four questions with Dave: The tool he can’t live without, his biggest mistake and more.

Tweetables:

“There are options out there and just figure out what your goals are and what it is you want to do and how much time and effort you're really wanting to put into it.” — Dave Knight [0:05:37]

“I personally don't feel there are enough people talking to my own community, so I'm stepping up and getting a lot of great people around me to help me with that.” — Dave Knight [0:11:18]

“I would love to grow it to a trusted source, a go-to source for all first responders in Canada and the US to learn about real estate investing. I want to be that trusted source where they can learn and then also provide some education through that.” — Dave Knight [0:14:03]

Links Mentioned in Today’s Episode:

First Responders Wealth Network Podcast

911 Wealth Network on Instagram

Dave Knight on Instagram

Dave Knight’s email

Wayne Patton

Passive Income through Multifamily Real Estate Group on Facebook

Episode #88: Refinancing with Brian Burke Apr 17, 2020

Show notes

In the current climate, we can all do with a little extra advice and support on the different parts of the real estate investing business. On the show today we have Brian Burke to shed some light on refinancing and how to do it to your best advantage. We hear from our guest about his experience in the field of real estate and how he is currently positioned in the space. After that, Brian shares his thoughts on refinancing and his own best practices for the process. He shares parts of the process that have led to trouble and a particular story in which he ran into some difficulties. We discuss amounts of time for holding property before looking to refinance and then get into the different costs that can go into it. Brian makes a strong argument for using floating rates in order to avoid certain risks while taking on smaller ones and we finish off thinking about important aspects to focus on during the corona crisis. Make sure to tune in to get it all!

Key Points From This Episode:

Brian's current setup in multi-family and what his business does.
The refinancing process and how and when Brian goes about it.
Troubles that Brian has faced during the refinancing process and one example.
Periods for holding a property before looking to refinance.
The fees associated with the refinancing process and why Brian prefers floating rates.
Potential downsides of floating rates and how the upside outweighs this for Brian.
Brian's asset management superpower; survival and making it through difficulties.
Advice from Brian for those going through the current turbulence with COVID-19.

Tweetables:

“I’m a real big believer in a buy and watch investment strategy which means we buy the asset and we improve the asset and we improve the income and then we watch the market for the right time to exit.” — Brian Burke [0:01:25]

“For us, it’s really about timing and how long we plan to hold.” — Brian Burke [0:02:11]

Links Mentioned in Today’s Episode:

Praxis Capital

Brian Burke on Instagram

BiggerPockets

Walker and Dunlop

Passive Income through Multifamily Real Estate Group on Facebook