Episodes

  • Our guest for this episode, Drew Kniffin, is the president of Nighthawk Equity, a syndication group focused exclusively on buying C plus and B class multifamily assets. The topic today is leasing, and as an expert in this field, Drew shares what a good leasing strategy should look like, including the performance indicators for leases and leasing agents and how they have had to temporarily adjust their approach amid the COVID-19 outbreak. He talks about their trusted formulation and striking the balance between maximum rent versus maximum occupancy, and how they go about getting property managers on the same page. In terms of hiring the right people for your team, he encourages listeners to look for those guys who are adept at selling who will ensure that your properties get leased out. 

    Key Points From This Episode:

    Learn about our guest’s role at Nighthawk Equity and the asset classes they focus on. Drew’s leasing formulation: maximum rent versus maximum occupancy. The asset manager’s role in communicating the leasing formulation with property managers. Other key performance indicators for leases and leasing agents. Nighthawk Equity's target numbers in terms of conversion and closing rates. What Drew and his team are doing to optimize their leasing strategy. Advice for newbies at the leasing game — spoiler alert — keep track of the data! How the COVID-19 crisis has impacted their team’s leasing strategy.  

    Tweetables:

    “When we’re looking at leasing, we want to be about 95% occupancy on our properties.” —  @DrewKniffin [0:02:05]

    “Leasing is the fountainhead of our industry. Everything flows from it and if your leasing is great, mostly everything else will fall into place.” — @DrewKniffin [0:05:25]

    Links Mentioned in Today’s Episode:

    Drew Kniffin on LinkedIn

    Drew Kniffin on Twitter

    Drew Kniffin Email

    Nighthawk Equity

    Passive Income through Multifamily Real Estate Group on Facebook

    Kyle Mitchell on Facebook

    Garzella Group

    redIQ

  • Where do you want to be in ten or twenty years from total monthly income perspective? Are you interested in passive real estate investments that will allow to live off the money you make on them in the meantime, while also continuing to increase in value? Today’s guest is David Gwilt, an active duty USAF Officer, Realtor, Real Estate Investor, and financial analyst for an apartment investing firm. David and his wife, Tasha, purchase apartments to create passive income and generational wealth, and they’re helping others do the same. Find out about David’s real estate journey, and why he chose to get into multifamily real estate in the first place. He also shares with us what he looks for when choosing to make an investment and some possible red flags that might cause him to pass up on a deal. Tune in for some great advice on beginning with your end financial goal in mind!

    Key Points From This Episode:

    David gives us a glimpse into his background and his multifamily real estate journey.Concerns prior to investing in multifamily syndications.Why David and his wife chose multifamily real estate.Adjusting projections as investments progress based on actual returns.David tells us about his first passive multifamily investment and what attracted him to it.Delayed distributions during the pandemic from a passive investor’s perspective.David discusses some red flags and potential reasons to pass on a deal.How David decides on other investment criteria like property class.What retirement looks like for David and his wife.Active versus passive investment in real estate.David shares with us his biggest mistake in real estate investing and what he learned.

    Tweetables:

    “In the multifamily space, we can scale a lot quicker, so we can do more passive investments, we can do bigger passive investments” – David Gwilt [0:06:40]

    “That’s… [what] really got us into this space, is the ability to have an asset that throws off cash that we can live off of and enjoy while the asset is also increasing in value, so it gives us something of a legacy to leave to our family” – David Gwilt [0:09:52]

    “The operators, for me, are key. A good operator can take an average deal and make it great. A bad operator can take an excellent deal and make it bad” – David Gwilt [0:16:04]

    Links Mentioned in Today’s Episode:

    APT Capital Group

    APT Captial Group on Facebook

    Schedule a call with Kyle Mitchell

    Powell Chee – MultiFamily Masters

    The Lifetime CashFlow Through Real Estate Podcast with Rob Khlief

    Wayne Patton

    Wayne Patton’s Asset Protection

    Call Wayne Patton – (877) 727-109

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  • With the right approach to your value-add strategy, you can be sure that your dollars are being well spent, you’re up to speed with your competition, and that you’ll lease up faster! Today on the show, Kyle interviews Gary and the two talk shop about best practices for value-add! It’s important to start your value-add process from the very beginning, and Gary tells us that he’s already thinking about it from the time he receives the EOM. Another great tip Gary mentions is to keep touring your comps, even after a deal closes. Constantly assessing metrics like ROI and staying in the know about where you sit in relation to your competitors is vital! Equally important is how to know when to deviate from a value-add plan, and our hosts have a few golden nuggets to share in that regard. Gary also suggests that investors should focus on exterior renovations first, and shares a few of his top-performing cosmetic additions, such as billboards, paint jobs, and amenities. Lastly, we get into some ways that you can know whether your value-add strategy is working, and Gary lists a few very clear indicators, such as if you’re successfully bumping rents! Tune in for some amazing pointers for your next value-add strategy today!

    Key Points From This Episode:

    Gary’s entrepreneurial childhood and road into real estate investing with Kyle.The beginning of a value-add strategy starting with the EOM, comps, and pictures.Typical players Gary involves in his value-add strategies.Gauging comps and the current environment, and when to deviate from a value-add plan.Constantly watching comps and other facets of asset management.The three most impactful strategies for getting tenants: signage, paint, and extra amenities.How to assess a value-add strategy and tell it’s working: rent bumps and conversion rates.Being vigilant by tracking data and reassessing return on investment constantly.Gary’s asset management superpower: being a numbers guy.

    Tweetables:

    “You're constantly evaluating. You’re dealing with market conditions, and being able to pivot is so important to your business plan.” — @garylipsky [0:04:17]

    “We push our property management team to provide the best customer experience for our tenants and the best investor experience for our investors. That means we’re constantly staying on top of all the facets of asset management.” — @garylipsky [0:05:00]

    Links Mentioned in Today’s Episode:

    Gary Lipsky

    Gary Lipsky Email Address

    redIQ

    Passive Income Through Multifamily Real Estate Facebook Group

    Kyle Mitchell on Facebook

    Lalita Mitchell on Facebook

    Garzella Group

  • Our guest today on the show is the founder and owner of Bakerson, Bruce B. Wuollet! We talk to Bruce about his history in the multifamily game, the founding of his company, and the family legacy that led to the naming of Bakerson. He explains their investment strategies and how these have evolved over the years, moving to larger, longer-term deals and the shifts that go along with this. Bruce tells us about finding a rough in the diamond — a bad property in a great area and how he can work this in his favor. The conversation also covers the issue of rent control and the damages that these measures can make to the market in the long run. Bruce shares some of the tougher lessons he has learned and how these informed his decision to steer completely clear of speculative buying. The philosophy at Bakerson is one of conservative purchases that make sense today! We also cover moving into new markets and what it takes to break into one of these in today's climate before Bruce shares some of the tools and strategies that are central to his work at the company. He is fully committed to staying abreast of the changing world, believing that education and reading, in particular, are the gateways to success. For all of this and then some, join us today!

    Key Points From This Episode:

    Bruce's background, the story behind the name 'Bakerson' and the idea of 'togetherments'. The progression of Bruce's business, moving from wholesaling to ownership.Shifts that have occurred in the industry and how Bruce used these to build. Bruce's early forays into multifamily and what his first acquisition looked like! The types of properties that Bruce and Bakerson have typically targeted.Small pivots that Bakerson has made to remain profitable; geographic and unit expansion. The idea of moving into new markets and considering the pros and cons. Looking at the current real estate markets in Tucson and Albuquerque. The mental transition from short turnarounds to a longer-term, buy and hold model. Challenges posed to the real estate business by affordable housing and gaps in the market. The importance of spreadsheets in Bruce's work and crunching the numbers!One of the biggest mistakes Bruce and his team made with regards to land development. Embracing the new generation; Bruce's goal for learning about the changing world. How to get into contact with Bakerson and Bruce directly!  

    Tweetables:

    “We always look at whether it is a good deal today, we do not do speculative buying.” — Bruce B. Wuollet [0:08:43]

    “I like Albuquerque since it is a similar size to Tucson but I think it's got a better infrastructure. It's more positioned for growth, long-term.” — Bruce B. Wuollet [0:11:57]

    “In this information age that we live in, market shifts are going to be fast and they are going to be sudden.” — Bruce B. Wuollet [0:15:02]

    Links Mentioned in Today’s Episode:

    Bakerson

    Bruce B. Wuollet on LinkedIn

    Bruce B. Wuollet Phone Number — 520 808 9111

    Bruce B. Wuollet Email

    Wayne Patton

    Wayne Patton’s Asset Protection

    Passive Income through Multifamily Real Estate Group on Facebook

    Lalita Mitchell on Facebook

    Kyle Mitchell on Facebook

  • For this edition of Asset Management Fridays, we are joined by the up and coming Spencer Hilligoss from Madison Investing! As a relatively young mind in the multifamily game, Spencer brings enthusiasm and a sense of purpose to his work, believing strongly in communication and authenticity. Our conversation today centers on relations with investors and Spencer shares some great lessons he has learned about giving investors what they need while taking care of assets in the best way for everybody. We discuss frequency of communication, the best things to share and update on, and keeping a difficult conversation on course and timely. Spencer does not shy away from talking about the touchy stuff and states that if done in the right way, investors will be thankful. For this great chat with a fresh talent in the world of multifamily, join us today! 

     

    Key Points From This Episode:

    Spencer's path to real estate and how he landed in multi-family recently. Communicating with investors and Spencer's approach to this task. What to include in investor reports and why Spencer focusses on pictures. The biggest lessons that Spencer has learned thus far! Important factors for investors; timely and adult communication.Spencer's asset management superpowers; authenticity and communication.  

    Tweetables:

    “We do a monthly update for the vast majority of our projects.” — @SpenceHilligoss

     [0:02:34]

    “I try to really go above and beyond and communicate with both authenticity as well as just keeping it clean and simple on the monthly updates.” — @SpenceHilligoss [0:03:30]

    Links Mentioned in Today’s Episode:

    Spencer Hilligoss on Twitter

    Spencer Hilligoss on LinkedIn

    Madison Investing

    Passive Income through Multifamily Real Estate Group on Facebook

    Kyle Mitchell on Facebook

    Garzella Group

  • After the 2008 crash, a lot of people either lost most or all of their money and one of the biggest reasons was they were held hostage to a 1031 exchange. Even today, the conventional 1031 strategy presents many downsides, a major one being that once you sell, you have a limited timeframe before which you have to rebuy. Enter Brett Swarts, today’s guest and founder of Capital Gains Tax Solutions, a firm that offers a solution to the 1031 called the deferred sales trust. The DST offers an exit strategy that helps business owners escape feeling hostage to capital gains tax as well as venture capital to fund their next business deal. In today’s show, Brett gives listeners the lowdown on how the DST works and the many benefits it offers in comparison to the 1031 exchange. He talks about how it enables a client to sell, and then park their money for as long as they like and also reinvest it in many more asset types than the 1031 exchange allows. We hear from Brett how the DST allows boomers to preserve wealth and pass it down to the next generation, and how it can also help the US get a more liquid net worth. Brett also weighs in on the flexibility and seamless partner separation it provides in the context of syndications. In addition, our conversation covers what the DST can do to stop the dreaded 40% debt tax on taxable estates over 20 million. After hearing what Brett has to say, you’ll wonder why you even considered the 1031 exchange at all, so don’t miss this one!

    Key Points From This Episode:

    Introducing Brett who offers the deferred sales trust as a solution to the 1031 exchange.How a DST allows you to delay a rebuy in contrast to the 1031 exchange which doesn’t.Brett’s service: to help facilitate the legal process that clients undergo to do a DST.How people often buy higher-priced properties on a 1031 exchange, getting more debt.Parking your money and reinvesting in any asset through DSTs.Traveling 1031 depreciation schedules and new depreciation schedules provided by a DST.How baby boomers want to preserve wealth and 50% of the USA’s net worth is illiquid. The flexibility of options DSTs give investors in syndications: they can take their money out.Reinvesting into a new syndication deal via a brand new LLC through the DST.Reasons for the DST asking 20% for a reserve account after forming a new LLC.The risk tolerance question and what options a client has with dictating where the 20% goes.

    Links Mentioned in Today’s Episode:

    Brett Swarts LinkedIn

    Brett Swarts on Twitter
    Capital Gains Tax Solutions

    Capital Gains Tax Solutions on YouTube

    Marcus and Millichap

    American Banker’s Association

    Russell Brunson

    Wayne Patton

    Wayne Patton’s Asset Protection

    Passive Income through Multifamily Real Estate group on Facebook

    Lalita Mitchell on Facebook

    Kyle Mitchell on Facebook

    Limitless Estates

  • The period that follows the closing of the deal is vital in the outcomes of your investment. Here on this edition of Asset Management Fridays to talk of their practices in the 30 to 90 days following a purchase is Mark Hentemann! Mark is a television writer, having worked on high-profile shows such as Family Guy and with David Letterman! Mark explains his particular type of investing and how he got into the business after moving to Hollywood to be a writer. He is a specialist in restoring older buildings with vintage value and appeal. Much of this tendency comes from Mark's creative side, as he loves to visualize what something dilapidated and out of favor could be! Mark speaks about his strategy for the first few months, which entails a lot of observing, waiting, and evaluating. From there, he gives attention to the exterior and what he calls curb appeal, moving to the entranceways and then into the actual apartments. He believes in providing convenience and value for tenants with particular attention given to kitchens, floors, bathrooms, and electrical fixtures. Mark also talks about opening spaces up, aiming for more natural light and how much he enjoys this restoration process, so make sure to join us today to hear it all!

    Key Points From This Episode:

    Mark's career as a TV writer and why he decided to invest in real estate. The first 30 to 90 days after the close for Mark; tenant value creation. Adding value after the initial period and Mark's early focus on the exterior. Tools for property management; companies and personal management to coordinate with. The distinct and different roles for property management and how Mark differentiates these.The value that tenants place on kitchens, floors and bathrooms!Looking at the trends away from confined spaces to more open-plan living. Mark's asset management superpower! Seeing the beauty in something old and dumpy!

    Tweetables:

    “I pumped my first payments once I got any kind of traction into real estate and immediately got hooked and I’ve been doing it ever since and plan to do it until I’m a hundred.” — Mark Hentemann  [0:01:36]

    “I, out of sheer necessity, gravitated towards the cheapest properties I could find.” — Mark Hentemann  [0:02:18]

    “I don’t want to start spending or jumping to a major project until I get to know the property a little bit and see where the flaws are or where the issues are.” — Mark Hentemann [0:03:23]

    Links Mentioned in Today’s Episode:

    Mark Hentemann Email

    Quantum Capital

    Wild West Real Estate Show

    Family Guy

    David Letterman

    The Emmys

    American Greetings

    APT Capital Group

    Passive Income through Multifamily Real Estate Group on Facebook

    Kyle Mitchell on Facebook

    Limitless Estates

    Garzella Group

  • There comes a time in real estate investors’ careers when they can no longer manage all the tasks and wear all the hats required to succeed in the industry. This is when virtual assistants (VAs) might be just what they need. Bob Lachance is a nationally recognized speaker, mentor, and trainer who specializes in helping customers build their businesses through automation and outsourcing. He acquired his first flip in 2004 and has done over 700 transactions since, and has also started two successful real state coaching programs and three virtual assistant staffing companies. He is the owner of REVA Global LLC, which focuses on offering trained real estate virtual assistants to real estate professionals. In this episode, Bob tells listeners when they might start thinking about outsourcing some of the tasks, what they can expect to pay for virtual assistants, and advises on acquiring a full-time employee versus hiring a VA for each of their specialized tasks. He also discusses VA’s retention rates, how investors can hang on to good ones, and the importance of having clearly defined responsibilities to maximize the chances of success. 

    Key Points From This Episode:

    Find out who Bob Lachance is and about his real estate career thus far. Recognizing a need for mentoring and developing two coaching programs in response. Starting his first company after spotting the opportunity to provide virtual assistant services. When it is time for investors to think about automating and outsourcing certain tasks. Guidelines around the cost of VA services and why it need not cost a fortune. Factors to consider when deciding to hire a full-time employee versus a virtual assistant. Thoughts on hiring several VAs for each specific area or hiring one or two to manage it all. Suggestions for getting started on training your VA in their tasks and responsibilities. How Bob and his team go about finding, screening, and interviewing candidates.Hear what automation outsourcing means to Bob and examples of how it works.The average retention rates of VAs and tips for retaining that person on your staff. Why you should know the area you invest in and avoid shiny object syndrome. 

    Tweetables:

    “If I have to hammer the phones all day long, that would zap my energy. I need to outsource that to somebody else. Guess what? I can work on building my business. I don't have to work at that specific task that will zap all of my energy.” — Bob Lachance [0:07:00]

    “I would 100% recommend just sticking within the tasks that that particular individual is good at.” — Bob Lachance [0:09:45]

    “Our clients that have the most success with their virtual assistants are the ones that treat them like they’re in-house.” — Bob Lachance [0:17:48]

    Links Mentioned in Today’s Episode:

    Bob Lachance on LinkedIn

    Bob Lachance Email

    REVA Global 

    Google Sheets

    Realeflow

    Limitless Estates

    Wayne Patton

    Wayne Patton’s Asset Protection

    Passive Income Through Multifamily Real Estate Facebook Group

    Kyle Mitchell on Facebook

    Lalita Mitchell on Facebook

  • If you are in the real estate game currently or are thinking about diving in, chances are you have heard the term 'refinancing'. If you have not, do not fear, we have James Kandasamy from Achieve Investment Group here to explain the idea and share his wisdom on the subject! James joins us for this edition of Asset Management Fridays and we go through all the important points about refinancing and how James has used it to build his business. He has experienced amazing growth and success in a relatively short period of time and we hear all about his impressive business before jumping into what refinancing entails. We unpack the intricacies of the topic, talking about return on capital versus return of capital and which types of loans might suit your needs best. James gives us some insight into fees that are associated with refinancing and he warns us about pre-payment penalties and other hazards. We learn a bunch of lessons from James today about your DSCR, avoiding bridge lenders, and more, so make sure to join us on the show to get it all!

    Key Points From This Episode:

    James' business and how large his company has grown in the last five years.The tricky business of refinancing; smart times to do it and the power that it offers.Return on capital versus return of capital and the dilution of the term 'cashflow'.Possible difficulties that arise in the refinancing cycle and during the deal.James' ideas on long-term debt and the use of bridge loans. Avoiding pre-payment penalties and making use of conventional bank loans. The array of rates and fees that go into a refinance and the two ways to approach it.James' asset management superpowers: controlling expenses, using data, and more!

    Tweetables:

    “When I buy a deal, I already know that that I can refinance this deal in one or two years.” — James Kandasamy [0:01:53]

    “The power of commercial real estate, especially on a deep value add deal, is on refinances.” — James Kandasamy [0:02:46]

    Links Mentioned in Today’s Episode:

    James Kanasamy Email

    Multi-family Investors Facebook Group

    James Kandasamy on LinkedIn

    Achieve Investment Group

    Achieve Wealth Through Value Add Real Estate Investing Podcast

    Fannie Mae

    Zillow

    Apartments.com

    Garzella Group

  • Like many forms of investing, real estate investing is a long-term wealth accumulation strategy with long-term outcomes. When you understand this basic principle, you go through market fluctuations with more ease and remain confident about the returns you will reap in the future. At the same time, however, it is about realizing that investing always carries some risk. Joining us to speak on this topic is Tamar Hermes, a full-time real estate investor, and educator. She is the CEO of Wealth Warrior Woman where she guides women on how to become financially free by teaching them to understand the numbers, options, and strategies in real estate. Tamar discusses what she as a passive investor is doing to mitigate the risks of the current recession, what deal sponsors can do to be proactive, and advises investors about how they should think about the possible postponement of their distributions. For her, this is a unique opportunity for people in the industry to reset their mindsets about investing and part with the fears they often revert to in times of crisis. She also shares her views on how multifamily will do in the next five years and tells listeners more about her coaching program and private consultancy. 

    Key Points From This Episode:

    Helping other women to understand the opportunities in real estate investing. What motivated Tamar to get into real estate investing and multifamily more recently.The importance of understanding that investing is a long-term endeavor.Tamar’s strategy for mitigating the risks of the current economic crisis.Ideas for what sponsors can do to be proactive in these circumstances. Tamar’s thoughts when she was told that distributions would be postponed for the time being. Why this is an opportunity for investors to adjust their mindsets and approach. The two phases of a sponsor: wealth generation and capital preservation. How Tamar’s anticipates the recession to impact her returns as an investor.Thoughts on how multifamily will perform over the next three to five years. Advice to help people overcome the scarcity mindset and fear of investing in real estate. Learn about Tamar’s coaching program and private consultancy for women. Why it is necessary to fully understand the paperwork when buying a property.

    Tweetables:

    “I am a long-term investor and I think that is something that we all need to take to heart right now. Because like any investment, it is really a long-term game if you want to grow wealth.” — @tamarhermesintl [0:14:43]

    “We like to be comfortable and whenever we step into those uncharted waters, it feels really scary for a lot of people and so I think part of it is taking small steps.” — @tamarhermesintl [0:14:43]

    Links Mentioned in Today’s Episode:

    Tamar Hermes on LinkedIn

    Tamar Hermes on Twitter

    Wealth Warrior Woman

    10-Step List to Vet Sponsors

    Airbnb

    Wayne Patton

    Wayne Patton’s Asset Protection

    Passive Income through Multifamily Real Estate group on Facebook

    Lalita Mitchell on Facebook

    Kyle Mitchell on Facebook

    Limitless Estates

  • Our guest today is Mauricio Rauld, the CEO and founder of Premier Law Group where he also acts as one of the syndication attorneys who help real estate syndicators to raise the capital to pursue their dreams of financial independence. Mauricio gives listeners some helpful advice around signing purchase and sales agreements, setting up LLCs, and keeping the asset management entity separate from the one owning the relevant share of the building. We also get into the issue of asset managers being legally responsible for the property managers they hire and the importance of including them in your insurance. Mauricio tells listeners what information lawyers require from their clients to set up a private placement memorandum and why the value of the PPM lies in its details, and then he gets into the “gray area” of conditioning the market versus merely adding value and educating. Be sure to join the conversation to also learn more about closing out an entity after a property is sold.   

    Key Points From This Episode:

    An overview of the Premier Law Group and Mauricio’s capital raising role.The dos and don’ts of signing a purchase and sale agreements (PSAs) and creating an LLC. Separating the entity that does the asset management from the one owning your share of the building. Recognizing that as the asset manager, you are legally responsible for the property manager. Getting the insurance in place to cover you should the property manager perpetrate.The information your attorney needs to set up a private placement memorandum (PPM). Why you should not simply use a random PPM or one from the internet. The most cringe-worthy posts people make about their deals from a legal point of view. Navigating the fine line between conditioning the market and adding value. Examples of pre-conditioning the market without having an active deal at the time. What you need to do from a legal perspective to close out the entity after the property is sold. A breakdown of the three entities operators need to establish for legal purposes.  

    Tweetables:

    “We always create the LLC in the state where the property is located.” — @Mauricio_Rauld  [0:02:26]

    “You really want to reach out to your attorney right away. As soon as you enter into an LOI or have an LOI accepted, reach out to the attorney and the first thing you’re going to have to bring to your attorney is that business plan.” — @Mauricio_Rauld [0:04:19]

    “The PPM in and of itself is kind of worthless if you just pull one from the internet or use a template. It’s what you put into the PPM that’s important.” — @Mauricio_Rauld [0:05:03] 

    Links Mentioned in Today’s Episode:

    Mauricio Rauld on LinkedIn

    Mauricio Rauld on YouTube 

    Mauricio Rauld on Twitter

    Premier Law Group

    Passive Income through Multifamily Real Estate Group on Facebook

    Gary Lipsky on Twitter

    Kyle Mitchell on Facebook

    Garzella Group

  • Many multifamily syndicators have either transitioned or are currently transitioning from a full-time W2 into the world of real estate. Taking the plunge can be daunting and going through the transition is demanding on time, finances, and one's emotions too. Luckily there is an art to it, and Jens Nielsen who is our guest for today is doing a great job of mastering it. Jens enjoyed working his W2 in the IT world for many years, but always wanted to find a way of clocking fewer hours while still making a good income. When he discovered real estate he dove in wholeheartedly and today specializes in underwriting, capital raising, and investor relations while still working his W2. In today’s episode, we speak to Jens about how he is managing the fear, time costs, social pressures, and risks involved in moving from his W2 into full-time syndication and coaching. He stresses the value of his time management skills, and also his dedication to remaining transparent with his W2 coworkers so as not to burn any bridges. Indeed, his boss has even invested in a few of his deals! If you’re looking for that push to finally quit your job and enter the world of passive income, this is the episode for you!

    Key Points From This Episode:

    Introducing Jens, a specialist in underwriting, capital raising, investor relations, and coaching.Jens’s previous life: enjoying saving through his W2 in IT before going the real estate route.How Jens had always wanted a passive income and then discovered real estate investing.Jens’s journey into real estate buying fourplexes and educating himself through partnerships.How Jens balances his W2 with real estate: early mornings, time management, and no kids!When Jens might leave his W2 and the lost deal opportunities he faces while staying.Transparency issues around keeping relations good at work while pivoting into real estate.Financial risks that come with leaving a W2 and transitioning into a freelance career.Advice for people getting into real estate: have support, build some savings, and get a coach.Using the worst-case scenario mental exercise to get over the fear of entrepreneurship.Jens’s five-year plan: sell smaller properties, keep coaching, and partner with his students.

    Tweetables:

    “For years I’ve been thinking about what I can do that doesn’t require me to punch the clock.” — Jens Nielsen [0:03:02]

    “It really is that shift from relying on one source – that W2 that comes every other week – to going out there and just creating your own future.” — Jens Nielsen [0:10:00]

    Links Mentioned in Today’s Episode:

    Jens Nielsen on LinkedIn

    Jens’ Email Address

    Open Doors Capital

    The 4-Hour Work Week

    Wayne Patton

    Wayne Patton’s Asset Protection

    Streak

    Passive Income through Multifamily Real Estate group on Facebook

    Lalita Mitchell on Facebook

    Kyle Mitchell on Facebook

    Limitless Estates

  • Creating air-tight budgets, which factor in all expenses, no matter how small, is no easy feat. It requires patience, commitment, and an eye to detail. Danny Randazzo, our guest today, certainly possesses these skills. As an asset management and budgeting whizz, he knows how to get the maximum NOI on properties. In this episode, Danny walks us through the current budget he is doing, and how his company creates multiple budgets to come up with a solid end number. He also talks about why they choose to do cost per door as well as the importance of being market-specific. Geographic location can shift several budget factors, so it is important to be cognizant of this. Along with this, Danny sheds light on the importance of having strict criteria that you stick to when looking for properties. We learned a great deal in today’s show, and we know you will too. Be sure to tune in today!

    Key Points From This Episode:

    Learn more about Danny’s background and what he is currently involved in.Find out about Danny’s budgeting process on a new property he is underwriting.The differentiating line items to look for when creating a budget.Gary unpacks how location plays a role in budget differentiation.Why Danny believes focusing on one market and knowing it well will lead to greater success.How having strict criteria can help you stay conservative.Danny’s asset management superpower and his top tip for success.

    Tweetables:

    “When we budget, we look at what the previous owner’s performance was. And we understand how they operated it because likely, them being a pretty decent owner-operator, their numbers shouldn’t be too far off.” — Danny Randazzo [0:02:48]

    “You need to have a strict set of criteria and stick to it. If a deal doesn’t work because your criteria is conservative then it is not the deal for you.” — Danny Randazzo [0:10:18]

    “Every single dollar counts when you are looking at asset management.” — Danny Randazzo [0:13:48]

    Links Mentioned in Today’s Episode:

    Danny Randazzo 

    Danny Randazzo on LinkedIn 

    Danny Randazzo on Instagram 

    Danny Randazzo on Facebook 

    PassiveInvesting.com 

    Sam Walton

    CoStar

    Passive Income through Multifamily Real Estate Group on Facebook

    Gary Lipsky on Twitter

    Kyle Mitchell on Facebook

    Garzella Group

  • With the right industry knowledge and a risk-mitigating model, any real estate investor could stop trading their time for money and enjoy true mailbox money. Our guest today is Tim Bratz and he joins us on the show to speak about how he has it all figured out in this regard. Tim is the CEO and founder of Legacy Wealth Holdings, a real estate investment company that acquires and transforms distressed commercial and apartment buildings into high-performance investment assets. Tim’s investment companies currently own over 3,700 rental units across eight different states, equivalent to a $300 million portfolio! Today on the show, Tim starts by talking about how he learned real estate through the school of hard knocks, finally coming to see the huge yields offered by apartment flipping. He then moves on to speak about how assistants, partnerships, and having a big business have helped him generate passive income and focus on his strengths: marketing and acquisitions. After that, Tim gets into three procedures for a successful investment firm, and how he mitigates risk using a brilliant and multifaceted business model. Tim then talks about his ‘shoot the net wide’ strategy for weeding out hundreds of bad deals a month and getting to the great ones fast. For top tips from a seasoned pro about leveraging people and generating a risk-free business, you should definitely plug into today’s episode!

    Key Points From This Episode:

    Tim’s path to financial freedom at 25 years old through flipping houses and equity splits.How Tim went broke starting a business then reentered real estate and flipped apartments.A liquidation of Tim’s apartment flipping partnership after which he founded a company.How apartments yielded a 10% time to 90% income ratio leading to Tim closing the company.A tripling of Tim’s income coming after he hired an assistant and focussed on apartment flips.The line between leveraging staff and over-hiring, and how Tim found himself doing the latter.Levels of efficiencies; how it is easier to run a big business than a small one.Joint venturing with people who excel at things you don’t, allowing you to focus on strengths.How Tim leveraged his lawyer’s skills while making him richer too by partnering with him.The idea that by leveraging A players one can have one’s time back and build wealth.Three procedures for mastering real estate: finding deals, raising money, and operations.How Tim’s buying and selling model which emphasizes options mitigates risk.A reminder never to forget to make bold offers because that’s how you find amazing deals.

    Tweetables:

    “I think a lot of us get involved in real estate for that allure of passive income and residual income, that mailbox money. But then we all get stuck in this transactional trap of trading our time for money.” — Tim Bratz [0:03:02]

    “When you lose money, the real character of somebody comes out. God forbid, you make money. People get even nastier, right?” — Tim Bratz [0:07:19]

    “I hired an assistant in March of 2015. In the next 10 months, I tripled my income.” — Tim Bratz [0:12:47]

    Links Mentioned in Today’s Episode:

    Tim Bratz on LinkedIn

    Tim Bratz on Facebook

    Tim Bratz on Instagram

    Legacy Wealth Holdings

    Legacy Wealth on YouTube

    Fundrise

    Warren Buffett

    Wayne Patton

  • Brandon Hall is a CPA who runs a firm called The Real Estate CPA, and in today’s episode, he talks to listeners about taxes. His first recommendation is for syndicators to understand what they are trying to accomplish with their deals and whether they are aiming to tax optimize or simply break even. He goes on the explain the importance of knowing the 2013 tangible property regulations and how it pertains to syndication, and then gets into why electing out of the business interest limitations is advisable in most instances. Brandon walks listeners through the nitty-gritty of the K-1 form, where the most pertinent details are located, and why it is of utmost necessity to keep track of your capital balance as a limited partner.  

    Key Points From This Episode:

    Learn about Brandon’s CPA firm, its clientele, and the number of employees.The three biggest tax considerations that asset managers should pay attention to. Why it is important to know the 2013 tangible property regulations. Establishing whether you are trying to maximize losses or simply break even. Advice for when syndicators should seek help with their taxes. An explanation of what business interest limitations are and how they impact syndicators. A breakdown of what a K1 looks like and the details that are relevant to you.The importance of tracking your capital account balance as a limited partner. 

    Tweetables:

    “If I put 50,000 bucks into a partnership, then my capital account is 50,000 bucks. If the partnership liquidates and it has a gain, first they have to pay me back my 50,000 before it's allowed to distribute gain to anybody else.” — @BHallCPA [0:10:02]

    “The biggest thing that you need to make sure that you very clearly track is that capital count on an ongoing basis.” — @BHallCPA [0:12:08]

    Links Mentioned in Today’s Episode:

    Brandon Hall on LinkedIn

    Brandon Hall on Twitter

    The Real Estate CPA

    Passive Income through Multifamily Real Estate Group on Facebook

    Gary Lipsky on Twitter

    Kyle Mitchell on Facebook

    Garzella Group

  • When it comes to real estate investing, you could have the best investment strategies or the most unique business model, but without the correct mindset, you’re unlikely to make it very far. By continuing to let self-limiting beliefs dictate your choices, you will always make decisions from a position of fear, which will hold you back from your potential. Our guest today, Steven Pasevento, is the host of the Investor Mindset Podcast and an active investor who has flipped over 150 homes within his first two years in the business. One of his core beliefs is that investing in yourself leads to the biggest return on investment, which is why he is a proponent of putting in the work to change your mindset. In this episode, we learn about Steven’s background and how he has managed to achieve real estate success despite starting with very limited capital. By not giving into self-doubt, he was able to achieve more than he ever dreamed of. He wanted to share these lessons with others, which prompted him to start his Investor Mindset podcast. After interviewing over 100 people, who are all at the top of the game, he noticed a pattern: It is important to have your mind in the right place, to have the right thoughts and beliefs so that you can take the right actions in your life.

    Key Points From This Episode:

    Learn more about Steven’s background and his experience in real estate so far.Find out Steven’s motivation for starting The Investor Mindset podcast. What happened when Steven entered into a head-to-head negotiation with Chris Voss.Why embracing challenges rather than running away from them will lead to greater growth.How to build up discipline, which is a crucial mindset tool that will help you succeed.Why adopting a growth mindset helps you reframe mistakes as learning opportunities.A small action you can take today to shift your mindset into a more positive one.Break down your large goal into small, actionable daily steps to not feel overwhelmed. Final four questions with Steven: A tool he can’t live without, his biggest mistake, and more.

    Links Mentioned in Today’s Episode:

    Steven Pesavento

    Steven Pesavento on Instagram

    Steven Pesavento on LinkedIn

    Steven Pesavento on Twitter

    The Investor Mindset

    The Investor Mindset Podcast

    Free eBook

    Christopher Voss

    Chris Voss on The Investor Mindset

    Wayne Patton

    Wayne Patton’s phone number

    Frank Kern

    Limitless Estates

    Limitless Estates on YouTube

    Limitless Estates Monthly Meetup

    Limitless Estates Email

    Passive Income Through Multifamily Real Estate Facebook Group 

    Free Call with Kyle or Lalita

  • In real estate, as in other lines of work, data and information is power. Here to discuss the irreplaceable utility of key performance indicators or KPIs, is Merrill Kaliser. Merrill uses KPIs across his multiple businesses and they make up the foundation of how he stays on top of his different ventures. He speaks to the most important indicators for the real estate business and how he and his team manage the data that comes in. Merrill brings attention to property and asset management statistics as well as information around leads and where they come from. If you cannot measure which avenue of your marketing is working, you will not know where to put more energy! Merrill has so much enthusiasm and insight to share, with the key takeaway being the immediacy of the collected information. He covers rent collection, vacation notice, and work order KPIs before drilling down on the idea of costs per lead converted. For all this in a punchy Friday episode, tune in! 

    Key Points From This Episode:

    The different avenues of Merrill's work and how he stays busy. Merrill's use of KPIs to manage his businesses and how excited he gets about measuring.The KPIs Merrill gives the most attention; property and asset management.Managing the KPI information and the tools Merrill is using to collect and store it. The often-overlooked KPI around leads and why Merrill attaches so much value to it. Why Merrill's asset management superpower lies in his team! 

    Tweetables:

    “We use KPIs on every single business that generates revenue and or has expenses going out.” — @LonghornInvest [0:02:13]

    “The first thing I do when I wake up every morning is I look in my inbox and I have about 17 different KPIs.” — @LonghornInvest [0:02:50]

    Links Mentioned in Today’s Episode:

    Kaliser & Associates

    Merrill Kalister on LinkedIn

    Merrill Kaliser on Twitter

    Longhorn Investments

    Enron

    Tableau

    Yardi

    RENTcafe

    Apartments.com

    Apartment Guide

    APT Capital Group

    Passive Income through Multifamily Real Estate Group on Facebook

    Kyle Mitchell on Facebook

    Limitless Estates

    Garzella Group

  • We know that having a diverse investment portfolio is important for you to be able to weather any storms. So, what if there was a way to use your 401(k) or IRA to invest in real estate? Luckily there is, and today’s guest, Dmitriy Fomichenko, is here to share more on solo 401(k)s and checkbook control, which are both vehicles that help you cast a wider investment net. We kick off the episode by learning more about what self-directed IRAs and solo 401(k)s are. We learn about the advantages of each of them, along with the specific criteria that need to be met to hold either of these investment vehicles. We then move onto why checkbook control is preferable over a custodial account. Not only it is more flexible, but you also save on fees. From there, we look at how W-2 employees can use a side job to benefit from UBIT tax. Finally, we round the show off with some final advice from Dmitriy and his last four questions. Be sure to tune in today!

    Key Points From This Episode:

    Learn more about Dmitriy’s background and what he’s currently involved with.Find out what self-directed IRAs are.Solo 401(k)s: What they are, fulfilling criteria to get one and some powerful benefits.Custodial account versus checkbook control: The differences and pros of a checkbook.Some common prohibited actions associated with 401(k)s and IRAs.Consequences of committing prohibited actions and the importance of knowing the ropes.The benefits of using a solo 401(k) over an IRA for real estate investing.How W-2 employees can benefit from UBIT and the importance of having multiple incomes.Find out how Dmitriy started investing in multifamily syndications.Self-directed IRAs and solo 401(k)s are incredibly versatile investment vehicles!Final four questions with Dmitriy His biggest mistake

     

    Tweetables:

    “Solo 401(k) is a great alternative to self-directed IRA. Solo 401(k) is specifically designed for those people who are self-employed or own a small business..” — @dfomichenko [0:04:36]

    “Solo 401(k) is designed as a trust of which you are the trustee as a client.” — @dfomichenko [0:07:46]

    Links Mentioned in Today’s Episode:

    Sense Financial Services

    Free Sense Financial Services Consultation

    Dmitriy Fomichenko

    Dmitriy Fominchenko on Twitter 

    Fidelity

    Charles Schwab

    Merrill Lynch

    Wayne Patton

    Wayne Patton’s phone number

    Limitless Estates

    Limitless Estates on YouTube

    Limitless Estates Monthly Meetup

    Limitless Estates Email

    Passive Income Through Multifamily Real Estate Facebook Group 

    Free Call with Kyle or Lalita

  • Alain Villegas is a full-time real estate investor based in Dallas, Texas who has over $60 million of properties under asset management, just under 900 doors spread across seven apartments. He has also invested as a limited partner in eight properties, just over 1,200 doors in total. In this episode, Alain talks about real estate reporting, from the reports acquired from property managers to the ones created for internal purposes and to keep investors updated. Tuning in to this episode, you will learn why you should not only pay close attention to monthly and weekly reports but also daily ones to keep abreast of property performance. This also allows asset managers to assume a proactive approach instead of waiting for things to happen. Alain advises on the most important reporting elements to note, how regularly they should be tracked, and how this information can be communicated to the different parties. We also discuss software tools, the ultimate report, and the importance of anticipating challenges. 

    Key Points From This Episode:

    Learn about the number and locations of properties that Alain manages. What the daily, weekly, and monthly reports from third-party property managers include.The three weekly reports: property performance, property make-ready, and status-of reports. The channel through which reporting data is communicated daily. Hear which elements are most important and how frequently they should be tracked. The reports created for internal purposes and the ones used to update investors. Trusted property management software tools to manage various reports. What the ideal report would look like and the kind of information it would provide. Leading by being proactive and anticipating future challenges. 

    Tweetables:

    “For me, the most critical is the budget versus actual net operating income. The reason for this is it is already reflective of the overall performance of your operations, taking into account both your revenue and expense.” — Alain Villegas [0:04:07]

    “Be proactive. Always stay ahead of things. Lead not only in your team but anticipate future challenges.” — Alain Villegas [0:09:37]

    Links Mentioned in Today’s Episode:

    Alain Villegas on LinkedIn

    Alain Villegas Email

    ResMan

    Yardi 

    Passive Income through Multifamily Real Estate Group on Facebook

    Gary Lipsky on Twitter

    Kyle Mitchell on Facebook
    Garzella Group

  • Selling at the bottom of the market in real estate can get you into a lot of trouble, but as long as you have enough reserves to ride things out, you can come out the other end smiling. Today’s guest, Kevin Sharkey, rode out the last downturn and he joins us to talk about house hacking and passive investing in the current one. Kevin is a TV executive who began house hacking in 2003 and is now a partner in two out of state multifamily properties totaling 396 doors. We kick things off chatting to Kevin about his road into real estate beginning when that first value add a property in Philadelphia fell into his lap in 2003. Without knowing what he was getting himself into, Kevin bought a second house hack in Florida at the top of the market in 2006, but he managed to hold onto it right through the downturn. He shares the lessons he learned from this and we talk opportunities for sweeping up deals in downturns and the importance of resisting selling at the bottom of a market. We turn our attention to syndications next and talk to Kevin about what he likes to look for in syndicators and deals before investing, specifically at a time like this. From there, we hear about some hesitations Kevin initially had around passive investing coming from his house hacking background where he was in full control, and how he overcame them. Wrapping up for the day, we talk to Kevin about the value of networking and focus, and what he would have done differently in 2008 if he could wind back the clock. Come along for the ride!

    Key Points From This Episode:

    An introduction to Kevin’s work in TV and limited partnership investments in multifamily.How Kevin fell into real estate after buying a value add property in Philadelphia in 2003.Kevin’s thankfulness having held onto his Florida property bought at the top of the market.Thoughts from Kevin about opportunities in this downturn having gone through one already.Whether Kevin would buy properties or not if he could go back to 2008.What Kevin wants to see from syndication sponsors in terms of underwriting in recessions.Only joining downturn deals with cash reserves, staggered renovation schedules, and more.Overcoming syndication investing hesitations: relinquishing control and trusting operators.Kevin’s thoughts on his investing plans for the next five years in light of COVID.Our guest’s number one tool that helps his business: networking.The biggest mistake Kevin has made: not buying more properties in the last downturn!

    Tweetables:

    “It’s a scary time but it’s an exciting time because, from a market perspective, it’s a great opportunity to get in on properties and investments because a lot of people are liquidating.” — Kevin Sharkey [0:04:50]

    “Be ready or have reserves, either to get you through something or to capitalize on it.” — Kevin Sharkey [0:06:00]

    “When you’re looking at people that are striving to be the number one highest rent, they are probably the first person to start losing renters because they don’t want to pay the highest end of the rent for their class.” — Kevin Sharkey [0:10:35]

    Links Mentioned in Today’s Episode:

    Kevin Sharkey Email

    Asset Protection Attorney Wayne Patton

    Passive Income through Multifamily Real Estate Group on Facebook

    Kyle Mitchell on Facebook

    Lalita Mitchell on Facebook