Passive Income Through Multifamily Real Estate

Latest Episodes:

Episode #248: Unlocking the $10T Pool of Untapped Retirement Assets with Dan Kryzanowski Jun 27, 2022

Show notes

Everyone wants a comfortable retirement. Passive investing is one tool you can use to ensure you spend your retirement years doing what you love, but there are ways to make your 401k work for you in the meantime! Today’s guest is Dan Kryzanowski, an active capital raiser, equity owner, and passive investor generating double-digit yields and lower taxes via commercial real estate. His investment portfolio includes more than 2,600 storage units, over 1,500 apartment units, and dozens of industrial infrastructure properties. Dan has personally raised millions of dollars from accredited investors and family offices and is the Founding Vice President of Rocket Dollar, unlocking the $10 trillion pool of untapped retirement assets for the alternative investment community. He previously led commercial real estate initiatives for GE Capital in Mexico and South America, and his superpowers include self-storage and self-directed accounts. In this episode, Dan outlines the steps necessary to unlock your untapped retirement assets and explains how a self-funded IRA or solo 401k can give you the same flexibility and access to capital as your piggy bank checking account, plus so much more! Make sure not to miss today’s insightful episode with Dan Kryzanowski, who is considered a pro when it comes to advising you on how to invest your retirement dollars into real estate for big gains!

Key Points From This Episode:

What Dan’s connection is with Scranton, Pennsylvania.
Insight into his time at GE Capital, which he describes as a “dynamite experience.”
Why Dan is considered a knowledge leader when it comes to self-directed accounts.
Some of the obstacles people encounter when using their retirement accounts to invest.
Outlining the steps necessary to unlock your untapped retirement assets.
How your self-funded IRA or solo 401k can give you the same flexibility and access to capital as your piggy bank checking account.
What Dan has learned from working with accredited investors and family offices.
Why he believes that investors are more interested in cash flow versus appreciation.
The trend away from value add into development and the returns that self-storage offers.
How you can benefit from investing in the community in the town you grew up in.
How Dan is preparing himself and his business for future recessions.
A key insight from Dan’s discussions with over 500 investors: small dollars, small mistakes!
Advice Dan would have given himself five years ago: don't act like a lawyer if you're not one.

Links Mentioned in Today’s Episode:

Dan Kryzanowski on LinkedIn

Dan Kryzanowski on Twitter

BV Capital

Rocket Dollar — Coupon Code: DKRYZANOWSKI

Vertical Street Ventures

Passive Income Through Multifamily Real Estate Facebook Group

Peter Pomoroy on LinkedIn

Peter Pomeroy Email

Episode #247: A Practical Guide to Note Investing with Fred Moskowitz Jun 20, 2022

Show notes

There are no hard and fast rules when it comes to note investing, but a little guidance goes a long way for those who are unfamiliar with this particular investment strategy. Today’s guest is Fred Moskowitz, an educator and a bestselling author who has trained countless investors from all walks of life on how to create passive income streams of their own. As a fund manager, Fred manages a mortgage note investment fund and is considered an industry veteran within the note investing arena. He prides himself on being a trusted and valued resource in the arena of alternative investments and his book, The Little Green Book Of Note Investing, offers readers a practical guide to the exciting world of investing in mortgage notes. In this episode of Passive Income Through Multifamily Real Estate, you’ll learn the essentials of building passive income with note investing and Fred debunks some commonly held misconceptions. It’s not just for the big Wall Street institutional players. Note investing is available to all investors, and Fred Moskowitz wants to help you get started today!

Key Points From This Episode:

Debunking some misconceptions about note investing; it’s not just for ‘big players’!
Insight into the secondary market at work; different types of notes you can invest in.
Some of the variables that contribute to the value and loan balance of a note.
Why Fred believes that diversification is important for note investors.
Borrowing to buy notes and why Fred doesn’t recommend it for those just starting out.
Understanding what due diligence entails when buying a note.
The importance of building and maintaining relationships as a note investor.
Various players in the note investing world, from vendors to attorneys and more.
Hold periods and how note investors are impacted by rising interest rates and inflation.
How mortgage notes add predictability, stability, and cashflow to your diversified portfolio.
Advice for those starting their own investment business: get educated and build relationships!

Tweetables:

“When you become a note investor, you’re buying that debt. You’re stepping into the shoes of the bank and you become the one that is receiving those monthly payments instead of the one making the monthly payments.” — Fred Moskowitz [0:05:44]

“In this business, one of the highest values to focus on is building relationships.” — Fred Moskowitz [0:14:54]

“Mortgage notes add so much predictability, stability, and cashflow [to your portfolio]. It’s an income-based investment. It’s not a speculative investment. It’s not going to give you change in value, but it is going to give you cashflow that’s constant and predictable.” — Fred Moskowitz [0:29:58]

Links Mentioned in Today’s Episode:

Fred Moskowitz

Fred Moskowitz on LinkedIn

Fred Moskowitz on Instagram

Text ‘MONEY’ to 215-461-4433

The Little Green Book of Note Investing

Vertical Street Ventures

Passive Income Through Multifamily Real Estate Facebook Group

Peter Pomeroy Email

Peter Pomeroy on LinkedIn

Episode #246: Collecting that Mailbox Money with Bronson Hill Jun 15, 2022

Show notes

Raising capital and building relationships with your investors is always going to be a central part of multifamily real estate, and to provide you with some fresh perspective and double down on some inspiration, we have invited the one and only Bronson Hill from Bronson Equity onto the show today to talk about his philosophy, history in the space, and where he is headed next! Bronson opens up about creating a good experience for your investors, his process for nurturing relationships, and why these relationships are central to success down the line. We also discuss his thoughts on balancing the online and in-person avenues of his company, and why he prioritizes content creation and physical meetups. Listeners can expect a whole lot of information about what it takes to get repeat investors, what keeps Bronson motivated, and the types of dangers to be aware of in early deals. So to catch all this, and then some, be sure to press play!

Key Points From This Episode:

Bronson's capital raising process and how this has evolved over time.
Highlighting the most important factors for successful funding strategies!
Finding repeat investors; the time and energy that it takes to make this happen.
A few of the biggest lessons that Bronson has learned about dealing with investors.
Why being personable and interested in investors can serve everyone's needs.
Bronson comments on where his capital raising strategy is headed in the near-future.
Common needs, issues, and concerns that Bronson encounters in his conversations with investors.
Bronson talks about the dangers of inflation and why these are increasing.
Increased interest rates and what these will mean for valuations and returns in the world of real estate.
A little about Bronson's love of traveling and the lessons he has learned abroad.
We hear about Bronson's involvement with the Dressember Foundation and their impactful work against human trafficking.
Where to find and learn more about Bronson and his great resources!

Tweetables:

“It's like when you're trying to roll something heavy, it’s very difficult in the beginning and once it gets going, you have some momentum going for you.” — Bronson Hill [0:02:15]

“A lot of it comes from relationships. It comes from people that you know over time and now we’ve had some deals that are performing really well and so we’re starting with some referrals.” — Bronson Hill [0:05:26]

“What people really want to know is that it’s going to be a good experience. That it’s going to be stable, that they’re going to be able to communicate with you.” — Bronson Hill [0:06:10]

Links Mentioned in Today’s Episode:

Vertical Street Ventures

Bronson Hill on LinkedIn

Bronson Equity

Mailbox Money Show

The Single Best Investment Strategy During (or After) a Pandemic

Dressember

Passive Income Through Multifamily Real Estate Facebook Group

Episode #245: A Data Scientist’s Journey in Real Estate with Neal Bawa Jun 06, 2022

Show notes

Neal Bawa, otherwise known as the Mad Scientist of Multifamily, joins us today for a discussion about how he has used his data science background to make a memorable mark on the real estate industry. Neal’s insatiable curiosity, his persistence, and his drive to disrupt have led to him being in charge of a $1 billion multifamily portfolio with 700 team members, not to mention that he is one of the most in-demand speakers in the commercial real estate space! During this episode, Neal explains what Super Value Add projects are, what drove him to start doing them, and why he would recommend them over ground-up construction projects. We also delve into the structures that Neal has put in place which allow him to do 30 projects a year and work only 35 hours a week, why he prioritizes his mental and physical health, and the plans that he has to give back to society in a very meaningful way.

Key Points From This Episode:

How an applied statistics course changed Neal’s life.
Where Neal’s real estate journey began.
An overview of what Neal’s journey in the real estate space has looked like to date.
The three major real estate categories that Neal focuses on.
Why Neal feels an affinity towards physicist, Richard P. Feynman.
Neal explains why he is less bullish about Multifamily Value Add projects than he was 5 years ago.
Challenges that Neal ran into when he decided to combine Multifamily Value Add with construction.
The brand new equity tranche that Neal invented.
Why building trust is a key to the success of a Super Value Add project.
27 days; the length of time it took Neal to fill his Park Canyon apartment block.
Neal’s upcoming Super Value Add project.
The optimal property price for a Super Value Add project.
Why Neal would recommend doing a Super Value Add over a ground-up construction project.
The responsibility that you have to look after your physical and mental health when you are managing other people’s money.
What Neal sees as the ideal number of weekly working hours.
Neal’s 2 to 3 year plans to give back to the world in a meaningful way.

Links Mentioned in Today’s Episode:

Neal Bawa on LinkedIn

Grocapitus Investments

Ugro Capital

Multifamily University

NeighborhoodScout

Surely You're Joking, Mr. Feynman!

StretchLab

Peter Pomeroy Email Address

Peter Pomeroy on LinkedIn

Vertical Street Ventures

Passive Income Through Multifamily Real Estate Facebook Group

Episode #244: High-Level Pattern Recognition with Nick Santonastasso May 30, 2022

Show notes

By now, most of us have heard about why coaching is so central to any sort of professional or personal progress. Here on the show today to drill down on this subject and share his amazing journey and philosophy toward growth is Nick Santonastasso, the author of Victim to Victor: How to Overcome the Victim Mentality to Live the Life You Love. Nick is also a keynote speaker at our upcoming Vertical Street Ventures National Conference. This conversation serves as a great introduction to Nick's passion and insight and is sure to get you even more motivated to go and get your ticket, if you have not already! Being born with Hanhart Syndrome, Nick has faced many challenges that are foreign to much of the population and, as you will hear in our chat, Nick believes this equipped him with a vital solution-oriented mindset; something he believes is indispensable to success. We hear from our guest about his ideas around pattern recognition, the AIA framework for change, gratitude practices, and his best advice for changing an emotional and mental state. For a fresh dose of energy and wisdom from a young man making waves, be sure to listen in to this great episode!

Key Points From This Episode:

Background on Nick and how his journey with Hanhart Syndrome has affected his outlook.
Important lessons that Nick learned early about failure and solutions.
The conditioned and unconscious thought patterns that govern the majority of what we do.
Taking steps to become aware of dangerous mindsets and thought patterns.
How self-inducement works and why our focus dictates how we feel.
The ever-present possibility to change; why rewiring the brain is always an option.
Confronting the victim mindset and our limiting beliefs!
Contextualizing weaknesses and realistic expectations for how much progress we can make.
The core of our limiting beliefs and how feeling worthy can impact this.
How Nick uses questions to help his clients make breakthroughs.
Nick's thought's on gratitude and his own practice around fostering it.
The small promises that can aid us in building self-confidence and momentum.
Nick explains his idea of finding leverage as a means for change.
How to get in contact with Nick and looking forward to his keynote speech at the Vertical Street Ventures National Conference!

Links Mentioned in Today’s Episode:

Nick Santonastasso on Instagram

Nick Santonastasso on Twitter

Vertical Street Ventures

Vertical Street Ventures National Conference

Peter Pomeroy on LinkedIn

Peter Pomeroy Email

Passive Income Through Multifamily Real Estate Facebook Group

Vertical Street Ventures National Conference 2022

Episode #243: Creating Communities Out of Apartments with Bruce Wuollet May 23, 2022

Show notes

Today’s guest is Bruce Wuollet, the Founder and Owner of Bakerson LLC. Growing up in the bakery business in the Twin Cities in Minnesota, Bruce wanted to pay homage to his late father (hence the name, Bakerson). After trying his hands in a few different ventures in Minnesota, Chicago, and Phoenix, he finally found his niche in real estate. With a proven track record of success throughout Bakerson’s 20-year history and thousands of individual units bought, repositioned, and sold, Bruce has overseen all aspects of the business, from operations, acquisition, and project leadership to equity fund management, syndications, legal, finance, and more! His focus is finding good deals while his passion is serving residents, building relationships, and creating communities out of apartments. Listening in, you’ll learn why Bruce attributes Bakerson’s success to their hyper focus on workforce housing, coupled with their reputation for tackling ‘tough’ projects, which has provided them with tremendous credibility. Bruce also shares how his business has evolved over the last two decades and offers some insight into the value adds his tenants care about, some of the unique challenges and opportunities that come with workforce housing, and his innovative approach when it comes to long-term hold periods, as well as how his father taught him to value relationships, and so much more! Tune in today to learn more!

Key Points From This Episode:

A glimpse into the early days of Bakerson and how the business has evolved since.
Why Bruce believes it was a mistake not to embrace wholesaling through technology.
Insight into Bakerson’s focus on an underserved demographic: workforce housing.
Defining who Bakerson serves as lower middle class and upper lower class.
Value adds that Bruces’ tenants care most about: safe, functional, durable, and clean.
Why amenities are less important than curb appeal for workforce housing.
The pros and cons of working with properties built in the 1960s and ‘70s.
Some of the biggest challenges and opportunities unique to workforce housing.
Why Bruce values his connections with the communities that he invests in.
Bruce shares his innovative approach when it comes to long-term hold periods.
The three types of investors attracted to this model.
Progress on the 65-unit motel conversion project Bruce is working on in Sierra Vista.
Buying per square foot, having multiple contractors work in sync, and other key takeaways.
How underwriting is impacted by inflation and supply chain delays.
Hear the story behind the company name, Bakerson, and how it honors Bruce’s father.
Bruces shares his vision for Bakerson in 10 years’ time; living off cashflow alone.

Links Mentioned in Today’s Episode:

Bruce Wuollet on LinkedIn

Bakerson LLC

Bakerson LLC on LinkedIn

Bakerson LLC on Facebook

Peter Pomeroy on LinkedIn

Peter Pomeroy Email

Vertical Street Ventures

Passive Income Through Multifamily Real Estate Facebook Group

Vertical Street Ventures National Conference 2022

Episode #242: Leveraging the Expertise of Others for Greater Success with Diana Lin May 16, 2022

Show notes

You’ve probably heard that the three most important things in real estate are location, location, location, but today’s guest believes that successful deals are more often about the people you invest with than anything else! Today, Peter Pomeroy speaks with architect and multifamily investor, Diana Lin, who focuses on acquisitions, strategic direction, and asset management at Navi Ventures. She is also an AIA Licensed architect with over 10 years of experience as a Project Manager and Project Architect in New York, Texas, and China. In her career as an architect, Diana designed and managed large-scale, award-winning buildings in office, multifamily, hospitality, and retail properties. In today’s episode, she sheds some light on her journey as a multifamily investor. From why she suggests joining a mentorship group to the benefits of prioritizing effective communication, Diana has some valuable insights to share, including her belief that it’s the people you partner with that make all the difference. Ultimately, she maintains that you can't do it by yourself; you have to leverage the expertise of others to help you be successful! Tune in today to learn more in this thought-provoking conversation with Diana Lin!

Key Points From This Episode:

Insight into Diana’s background and career trajectory from architecture to real estate.
Why Diana and her husband started in multifamily and how they educated themselves and built up a network by joining a mentorship group.
Finding her first investment; why Diana encourages listeners to attend multifamily meetups.
Lessons she has learned about underwriting since doing due diligence on that first deal.
Why successful deals are more about the people you invest with than the numbers.
Advice for getting a sense of a deal sponsor prior to investing with them: ask around!
Prioritizing effective communication as well as expected returns to mitigate uncertainty.
Learn more about Navi Ventures and its focus.
Their latest deal in Glendale, Arizona, and how Vertical Street Ventures contributed to it.
The motivations behind doing a 506-B and Diana’s findings at the end of the process.
How Navi Ventures leverages Diana and her husband’s backgrounds to attract investors.
Diana shares her goals for Navi Ventures for the next 12 months and the next five years.
What financial freedom means to Diana: more time with her family.
How building relationships with good partners will take Navi Ventures to the next level.

Links Mentioned in Today’s Episode:

Diana Lin on LinkedIn

Diana Lin Email

Navi Ventures

Vertical Street Ventures

Vertical Street Ventures Academy

Passive Income Through Multifamily Real Estate Facebook Group

Peter Pomeroy on LinkedIn

North Light Growth
Vertical Street Ventures National Conference 2022

Episode #241: Intentional Life Design with Melanie McDaniel May 09, 2022

Show notes

Systems and technology are an important side of any real estate business, but this doesn't mean there is not an equally important human element to what we do. This is one of the messages that today's guest, Melanie McDaniel, underlines in this fascinating conversation. Melanie is the Founder of Freestyle Capital Group, a boutique private equity firm, and we are so happy to welcome her to the show to talk about how she partners with investors, the Freestyle Fund, how she approaches building relationships, and her current investment focuses. We also get a little personal with Melanie, touching on her belief in intentionality and using real estate to design the life you actually want! Our guest talks about traveling and staying open-minded to a life that is not limited by external expectations and pressures, as well as how we might think about transitioning into active investment. So to hear all this inspiring, practical, and thought-provoking wisdom from Melanie, be sure to press play!

Key Points From This Episode:

Melanie's professional background and path to her current work in real estate.
The common sense and learning that guided Melanie's decision to go into multifamily.
Foundations and preparations; the work ethic that Melanie brought forward from her time in the military.
The key steps in what Melanie offers investors through Freestyle Capital Group, and some information on the Freestyle Fund.
How travel plays into and influences Melanie's life and work!
Melanie shares her secret to finding new operating partners at conferences.
The kinds of partners that Melanie aims to work with; a description of her ideal avatar.
Facilitating and building long-term relationships with partners.
Moving through deals and making the most of the nerve-wracking process.
The types of deals that Melanie is currently focused on.
Advice that Melanie would give herself about the temporary nature of things!
Words of wisdom from Melanie for anyone considering getting in active investment.
How and where to find Melanie online to make use of her great services.

Links Mentioned in Today’s Episode:

Vertical Street Ventures

Melanie McDaniel on LinkedIn

Freestyle Capital Group

Melanie McDaniel Email

Melanie McDaniel on Twitter

Rich Dad, Poor Dad

BiggerPockets

Peter Pomeroy on LinkedIn
Vertical Street Ventures National Conference 2022

Episode #240: Achieving Financial Goals through Real Estate Investing with Jenny Gou May 02, 2022

Show notes

Welcome to another episode of Passive Income through Multifamily Real Estate. During today’s conversation, our new host, Peter Pomeroy, speaks with Jenny Gou, a managing partner at Vertical Street Ventures. Jenny has recently been named one of Bigger Pockets Wealth Magazine’s top 40 under 40, and during today’s conversation, she tells us how her humble beginnings keep her thankful for every milestone of success. Listeners will gain insight into Jenny’s career at Procter & Gamble prior to starting Vertical Speed Ventures, how she found her mentor, Steven Louie, and why she made the decision to quit her job before purchasing her first property. We talk about team culture, and Jenny reveals the complementary skills that make her and Kyle such a great team, before chatting property managers, and discussing what motivated Vertical Street Ventures to open up their own academy, and how they went about doing so. We also hear some intriguing details about their upcoming conference in Arizona and the exciting guests that will be speaking, and much more! Tune in to hear more today.

Key Points From This Episode:

Welcoming our new host: Peter Pomeroy.
An introduction to today’s guest, Jenny Gou, and her role at Vertical Street Ventures.
Jenny’s recent mention as one of Bigger Pockets Wealth Magazine’s top 40 under 40.
How she keeps it real despite Vertical Street Ventures’ exponential growth: gratitude.
Her career at Procter and Gamble leading up to becoming managing director at Vertical Street.
The story of how she quit her job before purchasing her first property.
How she found her mentor, Steven, and why coaching is so important.
What the first six months of starting Procter & Gamble were like.
Why she is such a huge believer in team culture and what that means.
How Vertical Street Ventures acquired 86 million in acquisitions throughout COVID.
Where she sees the company in five years time.
What piece of asset management she finds most exciting and why it is so productive to work with Kyle.
Why it is so important to have a good property manager.
Why there is so much to be said for finding your property management sweet spot.
What motivated them to start their own academy to add more value.
What differentiates their academy: it is a true hands-on approach with one-on-one training.
Their upcoming conference on June 4th and 5th in Arizona featuring Hunter Thompson, Bronson Hill, Amanda Han, Michael Becker, and more.
Equinox on Prince, Jenny’s investment property in Tucson.
What is so productive about a market like Tucson or Phoenix.
What Jenny and her husband do to nurture their relationship while working together.

Links Mentioned in Today’s Episode:

Equinox on Prince
Vertical Street Ventures National Conference 2022
Jenny Gou on LinkedIn
Vertical Street Ventures
Northlight Growth Properties
Peter Pomeroy on LinkedIn

Limitless Estates

Passive Income Through Multifamily Real Estate Facebook Group

Episode #239: Cost Segregation, Depreciation, and Tax Deductions with Erik Oliver Apr 25, 2022

Show notes

Dealing with things like depreciation, tax deductions, and cost segregation, can feel overwhelming and inaccessible as a first-time real estate investor, but it doesn’t need to be. Today on the show we chat with Erik Oliver, a Cost Segregation Expert and Regional Manager with Cost Segregation Authority, a company that specializes in Cost Segregation studies. We talk with Erik about how he pivoted to pursue this area of real estate and why he finds so much satisfaction in helping people save on their taxes. Tuning in you’ll hear Erik break down the role of depreciation in real estate, the mechanics of how it works, and how you can capitalize on it under the current tax laws. We also discuss when you can implement a cost segregation study based on the value of your property as well as other elements of your investments. Erik shares his advice for anyone looking to make a career change, as well as insights into how he maintains momentum in his work while raising young kids and making time to spend with his family. We had a great conversation with Erik, and if you’re interested in learning more about cost segregation, depreciation, and tax deductions, make sure you tune in today!

Key Points From This Episode:

Introducing today’s guest Erik Oliver a Cost Segregation Expert and Regional Manager with the company, Cost Segregation Authority.
An overview of the Tax Cuts and Jobs Act and how that relates to cost segregation.
Some of the motivations behind the Tax Cuts and Jobs Act.
The standard depreciation that accumulates when you buy a building.
The benefits of depreciation and why it doesn’t apply to land.
A breakdown of cost segregation and the role it plays in depreciation.
How cost segregation can accelerate depreciation.
The IRS approved guidelines that cost segregation experts use in their processes.
The difference between how personal property and real estate depreciates.
The different approaches companies can take to evaluate a property’s worth.
How a lookback study allows you to reevaluate the value of your property and incorporate a cost segregation study years after you acquired it.
Insights on when to implement a cost segregation study depending on the value of your property and other aspects of your investments.
A breakdown of what bonus depreciation means and how it relates to cost segregation.
Erik’s advice to listeners who are considering a significant career change, particularly towards real estate.
What Erik does to maintain a balance between the momentum in his career and having a family and young kids at home.

Links Mentioned in Today’s Episode:

Cost Segregation Authority

Erik Oliver on Linkedin

Limitless Estates

Passive Income Through Multifamily Real Estate Facebook Group

Vertical Street Ventures

Vertical Street Ventures National Conference 2022