The Investor Mindset - Name Your Number Show [$]

Latest Episodes:

E139: Investment Summary - Track Record & Deal Structure - Steven Pesavento Aug 10, 2020

Show notes

This week we're going to focus on the investor summary. This is an all-in marketing piece that outlines the core business plan, explains the underwriting assumptions, along with sharing photos and the overall strategy of the investment. This is an essential document and a key element that you need to understand and have a solid grasp of when investing with an operator.

So join me and The Investor Mindset community as we dive deep into this subject to get a true understanding of what the investor summary is and how you can use it to your advantage.

KEY TAKEAWAYS

1. Understand what your investment goals actually are and then look at the investment opportunity and analyze how it aligns with those goals.

2. An equity model typically returns 50% to 75% to the investor. The return percentage is tied to the profit that is expected from the deal. With this model you can benefit greatly but there's also risk of losing capital.

3. A preferred return model means that you get paid out before anyone else. For example: a 6% preferred return would mean that you receive the first 6% return and management take the remaining percentage.

4. There's also a hybrid model where you have a prefered return on the front end and another that's paid out on equity gain. This is a more conservative approach or for investors who want to take a high risk but still have some level of security.

5. Another strategy is called the performance hardle. AKA "waterfalls" are when a certain level of return is being provided to investors, at that point in the return structure changes. So if you have 6% preferred return, then no one else will see returns until you have that 6% in full.

6. Look at how the sponsors are compensated when it comes to fees. Management will receive fees to "keep the lights on" and manage the property and this is normal... but if they are high... ask why.

BOOKS

The Passive Investing Playbook - https://theinvestormindset.com/passive

LINKS

Learn more about investing with Steven at

https://theinvestormindset.com/invest

Join InvestorMindset.com for more!

E138: Master & Maintain Your Wealth - Chris Larsen Aug 06, 2020

Show notes

Chris has been investing in and managing real estate for over 20 years. He began syndicating deals in 2016, has raised more than $15M and been actively involved in over $150M of real estate acquisitions. In addition to real estate, Chris has invested in equities, oil & gas, and small business lending, as well as being active in Venture South, one of the nation’s Top 10 Angel Investing groups.

Chris lives with his wife and two boys in Asheville, NC where he loves spending time with them outdoors and enjoying the food and culture that the region has to offer.

KEY TAKEAWAYS

1. Think about what you’ve got, what you're grateful for and what that means to you.

2. To have passive income you can either: grow wealth by building a company and cashing out or you can make money and then invest into something.

3. It's wise to save 50% (after tax) of what you make.

4. 2 key strategies to help maintain your wealth: 1. Find a tax specialist and 2. Avoid interest paying tax via high cash value life insurance.

5. With multifamily you can retain tax benefits even as a high income earner.

6. A 1031 exchange means you can take the growth income of your investment and roll it tax free into another investment.

7. Compared to other investing markets, real estate has cash flow, appreciation and tax benefits.

8. Multifamily risk can be: 1. Market Risk 2. Operator experience 3. The deal itself.

BOOKS

Next Level Income - Chris Larson

https://www.nextlevelincome.com/ebook

LINKS

www.nextlevelincome.com

https://www.instagram.com/christopheralarsen/

https://www.facebook.com/nextlevelincomeshow

Join InvestorMindset.com for more!

E137: How Syndication Works & Why to Consider It - Steven Pesavento Aug 03, 2020

Show notes

What is real estate syndication, how does it work and why is it such a powerful tool for real estate investing? On this episode we go into all these essential details so you can fully understand syndication and why it can lead to real success in your investing career. This episode is packed full of free information that can increase your wealth... don't miss it!

KEY TAKEAWAYS

1. The SEC protects investors who do business with operators.

2. Syndication is a security and a security is a tradable financial instrument.

3. You have a managing partner and a limited partner. The former makes all the day to day decisions and the later just invests the capital and is not liable for any decisions made for the property.

4. A private placement memorandum (PPM) is a legal document provided to prospective investors when entering a deal. This lays out everything about the deal including: risk, operations, payouts and more.

5. Typically a syndication team consists of: General partners (sponsors) including the key principal, the loan guarantor, asset manager, investor relations and acquisitions.

6. You will find multiple professionals that are in on a deal including the syndication team, property managers, mortgage brokers, real estate attorneys, tax consultants and more.

7. The sponsorship team goes out and purchases the asset, executes the business plan and manages the day to day of the property. Then they sell it and the return shares are provided to the investors.

8. Many times private syndication deals perform better than public real estate offerings for private investors because there's less fees and overheads.

9. A syndication deal means you don't need to manage a property manager and you go into a partnership with expert operators who make all the key decisions and have incentive to produce the biggest return possible for your investment.

BOOKS

The Passive Investing Playbook - https://theinvestormindset.com/passive

LINKS

Learn more about investing with Steven at

https://theinvestormindset.com/invest

Join InvestorMindset.com for more!

E136: The Secrets to Successful Underwriting - Danny Randazzo Jul 30, 2020

Show notes

This week our special guest is the coveted underwriter Danny Randazzo! Join us as we discuss how to increase your returns with great underwriting.

Danny is a real estate investor, author, entrepreneur, mastermind host, national speaker, podcast host, volunteer with The First Tee and world traveler.

He retired from corporate America at age 30 after working as a financial consultant for over half a decade and building a real estate portfolio that generates monthly income to achieve financial freedom.

Today his company controls over $220,000,000 in real estate assets. When Danny is not investing in real estate you can find him walking with his wife Caitlin and dog George or playing competitive golf.

Understanding the underwriting and analyzing of multifamily apartment deals is vital to a successful return on your investment. If you're a seasoned pro or just getting into investing, then this is a topic you simply can't ignore or ever have enough knowledge on.

So join the conversation as we dive deep into this complex topic and provide you with free professional knowledge that you can use to nail this subject and become a successful investor.

KEY TAKEAWAYS

1. The basic philosophy of investing: 1. Preserve capital and 2. Buy cash flow producing assets for long term gain.

2. When finding a deal look at the market itself and identify the fundamentals that you want from that specific market.

3. Some key fundamentals to look for in a good deal are: 1. Location 2. The business plan 3. The economic growth of the investment area 4. Seller performance 5. Occupancy 6. Income 7. Expenses

4. At this moment in time be conversative with your cost reduction estimates and general underwriting

5. How to judge a market´s future performance: Look at market rent performance and sub market fundamentals reports that are available via brokers. This can tell you what rents will be like and what rental increases there are.

6. Always have an underwriter on your team who can verify all the data and financials when analyzing a market or property.

7. Stress test the deal. Look at return metrics like: vacancy & occupancy numbers, interest rate, expenses and exit cap.

8. You could be saving money on the performance of your property by reducing costs on administrative expenses such as internet, cable and phone packages.

9. You don't have to know a mentor to benefit from their teachings or knowledge. Take and create your own inspiration.

BOOKS

First a Dream - Jim Clayton

https://www.amazon.com/First-Dream-Jim-Clayton/dp/0972638903

LINKS

https://dannyrandazzo.com/

https://www.instagram.com/danny.randazzo/

https://www.facebook.com/dannyrandazzo/

https://twitter.com/dannyrandazzo

https://www.linkedin.com/in/danny-randazzo-61126449/

Join InvestorMindset.com for more!

E135: Active Investing vs Passive Investing - Which is Better? - Steven Pesavento Jul 27, 2020

Show notes

Active vs passive investing... which one is better for you?

Maybe you want to be a "Hands-on" investor or a "hands-off" investor. Maybe you don't even know the difference. Either way you need to understand what these are so you can actually make that decision.

In this week's Mindset Minutes episode we provide real life examples of how the two strategies work and how they can fit your needs. If you have any doubt over which route to take, then don't miss this episode, as it will help answer your questions and give you a clear investing strategy.

KEY TAKEAWAYS

1. Hands-on investors are called "active investors" and they find the deals, manage the properties and are fully responsible for all liability and decisions.

2. Hands-off investors are called "passive investors" and they find syndications, lending and putting capital into experienced operator deals to receive income without managing anything to do with the actual property.

3. Ask yourself three questions:

1. Are you too busy in your fulltime job but still want to invest in real estate?

2. Do you want to invest but worried you don't have the experience or capital?

3. Are comfortable with others making business decisions for your investments?

Watch the episode to find out what your answers mean for you.

BOOKS

The Passive Investing Playbook - https://theinvestormindset.com/passive

LINKS

Learn more about investing with Steven at https://theinvestormindset.com/invest

Join InvestorMindset.com for more!

E134: The Key To Raising Money: Building Relationships - Dan Zitofsky Jul 23, 2020

Show notes

Dan Zitofsky is a real estate investor focused on raising private capital. Over the years he’s flipped 1000’s of houses, worked in commercial real estate, plus he’s the author of the book Passive to Prosperous.

Dan’s driving purpose is to be there for his wife and his kids, and to leave a legacy that makes a difference.

KEY TAKEAWAYS:

Success (in the long run) isn’t about the money

Find a way to add value to everyone you want to work with

Be different

Don’t buy into the “scared money” limited mindset

RECOMMENDED BOOKS:

The Banker’s Code - George Antone - https://amzn.to/2Z4mpT3

Passive to Prosperous - Dan Zitofsky - https://amzn.to/367j0UT

LINKS:

https://www.facebook.com/groups/becomearealestateinvestorwithdanzitofsky/

www.passivewealthacademy.com/42k

www.youtube.com/zitofskycapitalmanagement

Join InvestorMindset.com for more!

E133: 5 Reasons Why Real Estate is the Smartest Investment - Steven Pasavento Jul 20, 2020

Show notes

Maybe you want a tax break… maybe you’re looking for a passive income… or maybe you just want to make sure your retirement plan is more comfortable. If you're new to investing, or thinking of getting involved in investing, then you don't want to miss this episode full of free vital information.

KEY TAKEAWAYS

1. The 5 benefits of real estate investment are:

1. Monthly cash flow.

2. Equity growth.

3. Leverage.

4. Appreciation.

5. Huge tax benefits.

2. It's very difficult to find the same returns that you can receive from real estate in other markets.

3. You can opt for a safer investment or a more risky higher ROI investment. You can find a plan to suit your personal needs.

BOOKS

The Passive Investing Playbook - https://theinvestormindset.com/passive

LINKS

Learn more about investing with Steven at

https://theinvestormindset.com/invest

Join InvestorMindset.com for more!

E132: Getting Things Done - David Allen Jul 16, 2020

Show notes

Getting things done is a personal productivity methodology that redefines how you approach your life and work with 5 clear steps that apply order to chaos.

After decades of in-the-field research and practice of his productivity methods, David wrote the international best-seller Getting Things Done. Published in over 28 languages, TIME magazine heralded it as “the defining self-help business book of its time.” In 2015, he released a new edition of the book, with new insights, updates, and discoveries about the GTD methodology and its many personal and professional applications.

Today, David Allen is considered the leading authority in the fields of organizational and personal productivity. The David Allen Company, run by David and his wife Kathryn, oversees the certification academy and quality standards for Global Partners offering Getting Things Done courses and coaching around the world.

KEY TAKEAWAYS

1. You don't have to transform yourself, just redirect the way you think.

2. Your mind is for having ideas, not holding them.

3. Your head is just a crappy office. Data shows your mind can only hold 4 things until you have to suboptimize your cognitive process.

4. GTD is a way of thinking. It allows us to disengage with our world but in an effective way.

5. The steps to get control of any situation: 1. Identify the issue 2. Decide if you need an actionable plan 3. Specify the next step in the plan.

6. Completion and Creation. Finish what you put in motion and be accountable for what you put in motion.

BOOKS

Jeff Sutherland - Scrum: The Art of Doing Twice the Work in Half the Time - https://www.amazon.com/Scrum-Doing-Twice-Work-Half/dp/038534645X

Daniel J. Levitin - Successful Aging: A Neuroscientist Explores the Power and Potential of Our Lives - https://www.goodreads.com/en/book/show/46114266-successful-aging

LINKS

https://gettingthingsdone.com/

https://www.instagram.com/gtdtimes/

https://www.facebook.com/gettingthingsdone

https://twitter.com/GTDtimes

Join InvestorMindset.com for more!

E131: Clear Investing Goals: Investing for Cashflow or Appreciation - Steven Pesavento Jul 13, 2020

Show notes

This week we ask: What are your investing goals? Maybe you're looking for cashflow, an income stream, appreciation or a net return.

If this applies to you then make sure you don't miss this episode as we'll be learning how to find investments that fit your criteria and how to use them to achieve goals going forward in your investing career.

The Passive Investing Playbook - https://theinvestormindset.com/passive

KEY TAKEAWAYS

1. Make a decision and get clear on what your investing strategy is. It could be cashflow, appreciation or a blend of both.

2. You can offset some of your income by investing in a property that produces regular monthly cash flow.

3. Appreciation will typically give you more risk but provide a higher ROI. Great if you don't need an income stream but want a longer term investment with bigger bulk returns.

4. A hybrid strategy means investing in cash flow and appreciation returns together. This means you can start building a nest egg for the future but also have some monthly returns from your investment.

BOOKS

The Passive Investing Playbook - https://theinvestormindset.com/passive

LINKS

Learn more about investing with Steven at

https://theinvestormindset.com/invest

Join InvestorMindset.com for more!

E130: Take Inventory of Your Values - David Meltzer Jul 09, 2020

Show notes

David Meltzer is the Co-founder of Sports 1 Marketing and formerly served as CEO of the renowned Leigh Steinberg Sports & Entertainment agency, which was the inspiration for the movie Jerry Maguire.

He is a three-time international best-selling author, a Top 100 Business Coach, the executive producer of Entrepreneur‘s #1 digital business show, Elevator Pitch, and host of the top entrepreneur podcast, The Playbook. His newest book, Game-Time Decision Making, was a #1 new release, David has been recognized by Variety Magazine as their Sports Humanitarian of the Year and awarded the Ellis Island Medal of Honor.

KEY TAKEAWAYS

1. Take inventory of your values and know who you are.

2. Stabilize and then grow. Have the desire to be what you must be and what you can be.

3. Gratitude is the most powerful thing in the world. Live life through a lens of gratitude. The most powerful mindset of an investor is finding the light, the love and the lessons.

4. Lose your ego based consciousness.

5. You need at least 3 mentors in life

BOOKS

Course of Miracles -

https://www.amazon.com/course-Miracles-Foundation-Inner-Peace/dp/1883360269

Built to Serve - Evan Carmichael -

https://believe.evancarmichael.com/builttoserve

Think and Grow Rich by Napoleon Hill -

https://www.amazon.com/Think-Grow-Rich-Napoleon-Hill/dp/0449214923

LINKS

https://dmeltzer.com/

https://www.instagram.com/davidmeltzer