I’ve been tracking the U.S. economy for some time. Most everyone from economists to multifamily real estate experts agrees that a recession is coming. Billionaire hedge fund investor Ray Dalio agrees that a recession is likely, we just don’t know when. As of today, mid-April 2019, I would venture to guess that we are…
Since we are now officially in tax season, I’m sure many of you are wondering how to protect your wealth from it being taken by the IRS. I have covered some of the tax benefits when it comes to multifamily, but I want to go a little deeper in the benefits and what it…
Everyone, from the major national mortgage brokers to Kiplinger Magazine, are all saying the same thing: 2019 is still a hot market. Cheap debt and plenty of investor cash looking for returns in the multifamily market have supported the increased property values in recent years. If you are buying multifamily, you are probably seeing…
For many families and individuals, pets are more than just companions. They are an extension of the family. Many multifamily owners and landlords recognize this and have shifted to more of a “pet-friendly” model. For other owners, they do not want pets in their units as they may cause damage or bother the other…
In my live events and webinars, many people ask me, “Why multifamily?” or “Is multifamily a good investment?”. While I may be biased, I have personally done the single-family rental game, tried my hand at day trading and even thought of wholesaling early in my real estate career. The main issue with all these…
When you are working with a lender or broker on a commercial loan, one item you will want to pay close attention to are prepayment penalties. Overlooking this would be an expensive mistake if you want to shorten your refinance period or make a significant reduction to your loan balance. For those that aren’t…
If you’ve been listening for a while, you know that we are always talking about cashflow deals. From the first time you underwrite a property, we are looking for deals that not only cashflow, but also deliver returns for you and your investors. This is especially critical for people doing their first deal. I…
As landlords and syndicators, our job is to preserve the investments we have made in our multifamily deals. Typically, A & B Class properties have many amenities and are newer and are in better overall condition. If you own an older, C-Class property, a little luxury can go a long way. As buyers of…
Today, I will explore a touchy subject and explain why buying a home is a terrible investment. Before we go into why, let’s define how the dictionary defines an “investment”. According to the Merriam-Webster dictionary, it is “the outlay of money usually for income or profit”. To paraphrase, an investment is anything you put…
Today, I want to explain to friends, family, and anyone that is not familiar with multifamily syndication – the basics of what my partners and I do when we put a deal together. In real estate, as well as just about any industry a syndication is when a group of people or companies put…
I do a lot of meetups and talk to many that say they want to get into real estate and multifamily real estate. There is always a recurring theme of reasons why they don’t start up their real estate dream. It’s either “I’ll wait until the crash,” “I’ll wait until my kids get into…
The other day, I did a talk about forcing appreciation and I mentioned how I only buy for cash flow. This led to a barrage of questions around buying for appreciation. So, I thought I would answer it here. As a recap, there are two basic ways a multifamily deal makes you money: 1)…
As value investors, we are always looking for multifamily deals we can get into, improve and drive revenue to increase the net operating income. This is referred to as ‘forced appreciation’, when you, as the investor, are actively working on the property to improve cash flow and reduce expenses. This is different from ‘natural…
According to the U.S. Apartment list, five large cities saw a decline in the median rental rates over the past 12 months: Baltimore, Chicago, Pittsburgh, Portland, and Seattle. No city or region of the country is safe from declining rents. As landlords, we need to track our local market and make adjustments to maintain…
Millenials have been dominating the conversation as a consumer category and even more so in the world of multifamily. However, it’s now time to start talking about Generation Z. These people were born between 1998 and 2016. This means that the older ones are already in college or the workforce. If you are a…
You did the networking, called the brokers, and trained on taking down multifamily deals. After doing all that work, a broker sends you a deal that seems to add up. In fact, it’s a great deal, but you don’t have the money raised. What do you do next? This is the part when most…
Doctor Maya Angelou once pointed out that people will forget what you said and what you did, but people will never forget how you made them feel. This statement is important to remember because it does not end with your close personal relationships. It is true for everything we do, as we interact with…
We are in a competitive market today. When you are preparing an offer on a deal that you want to buy, you need to do your best to be easy to work with, aggressive and able to close. This means handing over a Letter of Intent that is strong and has the best chance…
There are many ways to getting started on building your real estate career. Whether it’s flipping houses, buying land, or wholesaling, there is something you will like and feel comfortable doing.There are so many niches and asset classes to choose from. At our live events, all people are interested in building a portfolio in…
Like most things in life, there is more than one way to look at something. When it comes to money, there are two predominant ways: there is scarcity thinking and abundance thinking. The financial industry has been built around marketing scarcity thinking to people. Financial advisors make huge commissions convincing the masses to live…
Investing in multifamily real estate is nothing new. Many have invested as active and passive investors in deals as a strategy to offset their W2 income while making great returns, especially since the popularity of crowdfunding has really caught on over the past several years. The “crowdfunding concept” has only accelerated the flow of…
If you have seen my previous videos, you may already know that I got my start in real estate with single-family and small multifamily. When I wanted to kick it up to larger multifamily, I called up an attorney friend of mine who was very much into real estate and asked him how I…
We are ramping up our 2019 and I hope you guys are getting after your goals. One of the things I’ve been thinking about is the amazing interviews I’ve had on the Bulletproof Cashflow podcast. I’ve been fortunate enough to meet so many successful syndicators, authors, and masters in the field of real estate…
If you have shopped for anything online, you already know that product reviews are always helpful in helping us make the decision and hit that “buy now” button. Online retailers know that good reviews provide an edge to moving their product and even beat the competition, and the same is true for the real…
A big part of building a portfolio of multifamily properties is fundraising. I’m sure that many of you out there are afraid of asking friends and family to help fund your deal for fear that it may go sideways and lose all their money. So that begs the question: Should you let friends and…
Having the right mindset affects us positively. If you are looking to build your business, a growth mindset is the best approach to life. For those who have a growth mindset prosper in what they do because their “basic abilities” – or their mindset – acts as the foundation for their future. They work…
Whether you have owned your property for a while or just taking it down today, there are many ways of boosting revenue. Keeping an eye out for opportunities to increase income is not only important to cash flow, but also to improve the overall valuation of the property. Here are my 5 ways of…
One of the greatest strengths of buying cash-producing multifamily real estate is the ability to use leverage to buy that property. The US is one of the few places in the world where you can put down a percentage of the total on a large multifamily deal, finance the rest at a good rate…
When you are ready to make the leap from duplexes and fourplexes to multifamily and commercial deals, you will need to understand some of the nuances of a commercial mortgage versus a standard residential loan. Residential loans are pretty much “cookie-cutter” loans by most banks. But if you want to get more than 5…
In a previous video, I covered the first 5 rules of successful real estate investing that I discovered through my personal experience and by speaking with successful real estate investors. If you haven’t seen that video, you will find it in the description below. Anyway, these rules reminded me what to do to thrive in…
Having been a real estate investor and entrepreneur for about 15 years, I created a set of rules that I follow and review on a regular basis. I discovered these rules through my personal experience and by speaking with successful real estate investors. They remind me what to do to thrive in good market cycles…
I’ll give you four ways to get confidence to know if your deal is a good deal to invest in. 1. Look at MANY Deals – I look at hundreds of deals before I find one. 2. Know the Numbers – Do the numbers look accurate to you? If you are looking at a deal…
When you are looking at long term real estate, you have to KNOW the area, going rate for rents, and improvement opportunities to improve cashflow. You will not only be making a commitment after you take it down, but you will also need to put a great deal of time in pursuit of the deal.…
Here are the five things you will need to do to take down your first multifamily deal: 1. Find a deal — You need to network with brokers. When you do, you need to convey the confidence you can actually close the deal (and get the broker paid!) It doesn’t always need to be through…
As I mentioned in my previous videos, the bank is your partner in the multifamily deals you make. However, finding the right bank is just as important as finding the right partner. While you may be crazy about multifamily cashflow, not all banks specialize in doing multifamily. Here’s an example: I am working on a…
I had a meeting earlier today with an investor on an awesome multi-million deal my partners and I are working on just outside of Cleveland. He asked me about what value do syndicators like me provide to investors like him. Meaning, why should he invest alongside us in a deal. Before I go into that,…
Capital Expenses, or CapEx, is money spent to improve or maintain your property. A common mistake many real estate investors and syndicators make when renovating a property is to overspend on CapEx. Specifically, they spend cash on upgrades and improvements that may look nice in or on the property, but will not yield more rent…
Getting into your first multifamily deal can be exciting and nerve-wracking at the same time. If you do it right, getting into good multifamily deals will allow those involved to get closer to achieving their financial goals. For some, realizing true financial freedom, is an illusion without the right way to get there. If you…
Getting into your first multifamily deal can be exciting and nerve-wracking at the same time. If you do it right, getting into good multifamily deals will allow those involved to get closer to achieving their financial goals. For some, realizing true financial freedom, is an illusion without the right way to get there. If you…
It’s no secret that interest rates are on the rise. What are you doing to protect your assets and maximizing returns? Position yourself for maximum cashflow. Make improvements and move rents to market while providing value to your residents. Create stability to attract funds from lenders and investors alike.
Having been in the real estate game for about 15 years, I have been through city and state recessions and booms as well as the 2008 crash. Those were some tough times with some lessons learned. Using history as our guide, we know that market cycles are inevitable. We know that before they happen, it’s…
Any real estate entrepreneur and investor will tell you that relationships are key to building your business. I can tell you that it was through my relationships with property managers, brokers, but most of all potential passive investors, that we were all able to not only forge new friendships but also close several deals. If…
Whether you have owned your property for a while or just taking it down today, there are many ways of boosting revenue. Keeping an eye out for opportunities to increase income is not only important to cash flow, but also to improve the overall valuation of the property. Here are my 5 ways of boosting…
Here is a question that comes up in conversation: How to I make the jump from single family to multifamily. As subtle as the differences look, the contrast between single and multifamily properties can be big. If you are looking to take down a 5 unit or greater, the additional units under the same roof…
Have you felt like you wanted a deal so bad you could taste it? I know the feeling, believe me. I’ve been the real estate business for more than 15 years. It wasn’t until I set my sights for multifamily that now I’m always looking for my next killer deal. The other day, someone reached…
I had someone reach out to me the other day. He indicated that getting to 500 units is not possible for most of the people that follow me on social. The thing is, if you allow negativity and have a “can’t do” attitude, you will not only NOT reach your goal of anything, but you…
What are your deal breakers? Evaluating a deal varies from property to property. My focus these days are Class C and Class B deals, so it really depends on the business plan for the property which drives the underwriting process. This includes gathering the expense and income data, building a financial model, performing rent and…
A common term I hear in real estate is “The bigger the deal, the easier it is.” It wasn’t until I had begun to acquire a large portfolio of single-family homes many years ago that this fully resonated with me. I can tell you from first hand experience the bigger the deal, the easier it…
When we are going after a goal, we spend most of our time focused on the journey. When we do finally reach that goal, often, we acknowledge it, and then move on to the next goal. Since hitting the goals most times takes longer than it takes to acknowledge our success, we need to ensure…
Here are the four tips that came out of the meeting: 1. Build Your Network I’m sure that some of you have heard the quote “Your Network is Your Net Worth”. This is where it all begins. Many of the wealthiest people in the world spend time forging relationships and networks with others. This is…
As value-add real estate investors, we are looking for deals that need to be improved to increase the property’s value. I’d say one of the most difficult things to do is finding solid contractors that you can rely on to show up on time and do quality work, and won’t rip you off. With more…
If you are a real estate entrepreneur or investor, you questioned what the role of U.S. politics – specifically the presidency – has on the market and on your investments. Since President Trump made his millions in real estate development, one could assume that he wouldn’t make a decision that would adversely impact his investments.…
As real estate entrepreneurs, we are doing more than buying properties and chasing cashflow; We are actively building businesses. One of the key elements of building a successful business is your ability to sell. Throughout my years as an IT executive at large public and private companies, I have had to sell multi-million-dollar projects to…
Many years ago, I took up boxing and Muay Thai to get into shape. I’ve been fortunate enough to have been trained by many excellent coaches and even a heavyweight world champion that took on Wladimir Klitschko and won. There was a lot that went into the training from these masters and my teammates. However,…
As you go through the acquisition process, you will surely encounter the need for insurance on the property. I can tell you that not all policies are created equal. If you sign up for the wrong policy and you experience a problem, it could become a major problem for you and your investors. As real…
Closing on a new deal is very exciting! But now that you closed, the work begins on ramping up your vision of why you bought it. On-boarding the property can be a challenge if you do not prepare for it upfront. So here are the 10 steps you need to do once you take down…
As humans, we tend to procrastinate when we don’t see the consequence for our lack of action very clearly. If we had a time machine that could propel us forward in time to see what our life could be if we made decisions quicker or stuck to that diet and workout routine, I’m think we…
A long time ago, a family member was in a near fatal accident that continues to impact her life to this very day. As you can imagine, it was a devastating blow to our family, as it was obviously unexpected, and she was only in her early 40’s when it happened. There is a…
In the world of multifamily real estate, people starting out focus on locating a deal or even raising money. These things are important, but one important item is often overlooked: the financing. The wrong financing can kill a deal – or it can make it. To me, it is just as important as raising the…