Joe Fairless is the host of "The Best Real Estate Investing Advice Ever" Podcast and today he's in the studio to tell us how he grew his portfolio from Four Single-Family Rentals to an apartment portfolio worth over $160 Million within the span of three years.
Joe shares the details on his 'Best Ever' investment, a 250 Unit complex in Houston Texas, and how he increased it's value from $16.1 Million to $21.6 Million in two years.
Joe also discusses the types of apartment investments he buys, his Return on Investment goals, and the steps he takes to increase the Net Operating Income. He'll also take us through his 3-step approach to scaling his business through strategic partnerships, as well as what he looks for in potential partners and what skills he brings to the table.
Joe also has a marketing background, and we discuss how important marketing is to raising money and being a successful investor. Joe also tells the story of his brief career in stand-up comedy and how that's helped him get past the fear of talking with investors.
Whether you're familiar with Joe's podcast or not, I know you'll learn a lot of great information from this episode. You can contact Joe through his email or website, and by listening to his podcast:
In 2011 Tim VandenToorn took a leap of faith and invested $30,000 from his savings and ROTH IRA into a four-unit foreclosure. That was his first step into real estate investing and he's been going strong ever since, building a portfolio worth over $1 Million dollars. In this episode, you'll find out how he did it.
Tim and I also discuss his previous career in law enforcement, and why he traded that in to work with his family in property management at United Properties of West Michigan. Tim started as a maintenance tech and has since worked his way up to Managing Partner, where he oversees over 500 properties in the West Michigan area. Tim also started United Realty, which assists investors with the acquisition of investment properties.
Tim shares a lot of the experience he's gained during this time, such as buying multiple properties from tax sales, understanding the true expenses of investment property, the power of using 'other people's money', budgeting for capital improvements, and the functional issues tenants look at when deciding whether they should rent your unit.
Tim also spends a lot of time working with first-time investors, and shares his tips on managing your expectations in this hot real estate market, defining your goals, and where he sees the opportunities going forward.
There's a lot of great information packed into this conversation. If you'd like to contact Tim or United Properties, you can do so by email or website:
Tim can also be found on Bigger Pockets.
Many investors are struggling to find deals in this tight real estate market, and ending up increasingly frustrated by the lack of inventory and high asking prices they're encountering in the Primary market in which these properties are traded.
But there is a Secondary market in which these properties can be acquired for a fraction of their value by purchasing the note, or underlying mortgage.
Gene Chandler, the Asset Manager for Chandler & Chandler Financial, LLC, is in the studio with me today to share his experiences over the past decade in buying one-off and small pools of distressed assets directly from banks, hedge funds, and private equity groups.
Gene will explain the differences between the primary and secondary markets, performing v.s. non-performing loans, and traditional rehabs and flips v.s. 'fixing' a note.
You'll also learn the lingo Gene uses when talking to the bank's special asset manager, the types of properties he prefers, and many examples of the notes he's purchased and the profits he's made.
There's a lot of great information packed into this episode. If you've ever wondered what it takes to purchase the note directly from the lender, you owe it to yourself to check out this episode.
Gene can be contacted through his website or email:
Abandoned and Dilapidated for the past ten years, it was a two-unit property that no investor wanted anything to do with. I would drive by and wonder when the city would get around to tearing it down.
And then, Mike VanderWoude came along.
Mike is a broker at 616 Places, and he saw something that no one else did. He saw money.
Today, Mike takes us step-by-step through the acquisition and rehab of this two-unit property. How he negotiated the purchase price, acquired a construction loan, and checked with the city to make sure that it was indeed, a 2-unit property.
Mike also talks about the dynamics of Grand Rapids' West Side neighborhoods, how he researched what residents want in a home, whether they prefer a tub or shower, and the value of having great photos for marketing.
I know you'll enjoy learning from Mike's experience bringing a 2-unit back to life. You can find out more about Mike on the web:
Enjoy the show!
Bert Heyboer, President of S&G Property Management Company, has been investing in & managing rental properties since 2003. Today he shares his stories from the trenches, including the Most Evil Woman on Earth, the Cat Woman, and difficult conversations with tenants who can't pay their rent.
Bert also shares his expert advice on how to get started in owning rental property, managing your cashflow expectations, and making sacrifices now so that you can reap the rewards later.
Bert's also passionate about the legislation affecting rental property owners, and chairs the RPOA's government affairs committee where he works closely with local & state lawmakers to prevent bad bills from happening.
I know you'll enjoy today's conversation with Bert. You can contact Bert and S&G Property Management by web or phone:
If you're a buyer or seller of apartment communities in the Michigan and Ohio area, chances are you've talked to Al Beachum, an associate broker with Income Property Organization.
Al was recently named a 2016 Costar Power Broker with 47 commercial apartment transactions in 2016. Since 2007 Al has brokered over 230 multifamily properties worth over a half-billion dollars.
Today Al and I discuss his legal background and how it gives him an edge in working through the complex legal challenges that often happen during acquisitions. We also talk about the differences in scale and efficiencies between single family and apartment investing, and how to strategically deploy funds to improve apartment values.
Al works with a lot of first-time apartment investors and shares how he vets potential buyers to determine where their capital is coming from, whether they're properly funded, and what qualifications and track record they bring to the table.
We also discuss the Michigan market and Al's outlook on the changes he sees happening in the next several years.
If you're interested in investing in apartment communities, then this is a 'must-listen' episode!
You can contact Al through Income Property Organization's website:
When it comes to Real Estate Investing, Marty Green has had a wild ride. He made millions of dollars Rehabbing and Flipping Houses, and then lost it all during the Great Recession. After licking his wounds for about a week, he decided to start his own property management company, and in the process has flipped the traditional property management style upside down.
Today Marty discusses how he took everything he dislikes about traditional property management and created a company that does things very differently. Marty discusses the philosophy and strategies that align his companies' goals and profit with those of the owners they manage for.
Marty also shares some colorful stories of his early days managing rough properties and the confrontations he's had with past tenants. He also shares the story of how he was recruited by the Grand Rapids Vice Squad to become an undercover informant in order to rid his properties of criminal characters.
We're also thrilled that Marty's company, Green Property Management, will now be an official sponsor of this podcast! You can get in touch with Marty, or Green Property Management by website, phone, or email:
Because you Demanded it! Justin Workman & Rob Minch are back in the studio today to answer more questions from our listeners:
How much money should you set aside for maintenance & capital expenses?
What repairs should you know how to do yourself v.s. what should you hire someone to do?
How do you avoid evictions?
Who do you need on your team to make the lender happy?
Resources for improving your Negotiation Skills.
How do you quit your job and live of of rents?
Justin, Rob & Brian also discuss the signs they're seeing in the marketplace and economy that are affecting their decisions & investments.
Enjoy the show!
In 2012 Lonnie Shields and his wife were driving down the Beltline when their lives changed forever in an auto accident. Today Lonnie & I talk about that accident, and the role real estate investing has played on their road to recovery.
Lonnie shares his thought process in determining to sell off his small Multifamilies in Grand Rapids and invest in Single-Family Homes in a new, less expensive market. We discuss the 1031 exchange he's currently doing by selling a 5-unit and purchasing 8 to 10 Single Families in Muskegon, Michigan.
We also talk about Self-Directed IRA's, and how Lonnie prefers using his SDIRA as a way to invest in two SFHs instead of the stock market, where he was losing money every year. Lonnie also talks about reconciling his Christian faith with the realities of being an investor and landlord, and the effect it has on his trust in sellers, contractors and tenants.
Lonnie is also a big believer in the benefits of being an RPOA member. If you'd like to learn more about the RPOA, go to www.rpoaonline.org And please be sure to give this podcast a review & rating on itunes.
Benjamin Mcclellan grew up with eight brothers & sisters, few material possessions, and even less money. Many of his meals consisted of rice, beans, and popcorn. But his parents instilled in him a strong work ethic and a lifelong passion for learning.
That passion has led Benjamin to invest in 14 Buy & Hold Rentals, as well as 3 Flips in the Grand Rapids area. He's also done what I'd call "Extreme House Hacking" by buying foreclosed properties with no running water, gas or heat, and living there while he does the rehab. This strategy has led to interesting encounters with homeless squatters, thieving neighbors, and frozen pipes, but its also set Benjamin on the path to financial independence.
Benjamin also has a knack for creating relationships with sellers and note holders that has helped him acquire his properties for very little money down with unique deal structures. He shares the nuts and bolts of those deals in today's conversation.
If you want to know what it takes to start with very little and build it into a strong portfolio of real estate assets, then I know you're going to enjoy today's conversation.
Should you be forced to allow residents to smoke medical marijuana in your properties? Are you concerned about Rent Control Laws affecting your bottom line? Who should pay the cost of getting rid of Bed Bugs? Is it your responsibility to make sure your residents are registered to vote?
Who is helping to shape the legislation that answers these questions?
The Rental Property Owners Association ("RPOA") is, that's who.
And today, we talk with Clay Powell, the Director of the RPOA, about a little understood, yet vital function of the RPOA, which is to work with local and state legislators to prevent laws that could make owning rental property more expensive and cumbersome for Landlords and Investors.
Clay and I discuss recent successes in preventing mandated inspections for Lead Paint, requiring landlords to register their residents to vote, expensive requirements for new smoke detector technology, and many other issues that affect our bottom line.
The RPOA is protecting your rights as a Landlord and Investor, whether you're a member or not. You can help out by becoming a member:
You can also contribute to the Political Action Committee ("PAC") by calling 616-454-3385 with your donation.
Enjoy the show!
A year ago Cameron & Emily Walker, in their own words, 'knew nothing' about buying rental property and real estate investing.
Cut to today's conversation where they share how they came across the concept of House Hacking, located & purchased a duplex, and are now living in one unit and using the rent from the other unit to pay their bills.
It wasn't an easy learning experience, and Cameron & Emily are going to tell us how they raised money for their down payment from their wedding registry, evicted their tenant while on their honeymoon, and how they're using their extra house hacking income to pay off their student loans.
We also debate whether or not they should pay off their Private Mortgage Insurance (PMI) immediately, or apply those payments to their next house hack.
I know you'll enjoy today's episode. Cameron & Emily never thought they'd be home owners so soon, let alone rental property owners. If you're already an investor this conversation will remind you what it was like when you began. If you're not yet an investor, this episode will inspire you to get started!
And if you like what you hear, do me a favor and go to to itunes to give us a review & rating.
As a syndicator in large apartment investments, I've certainly spent a lot of time and effort raising money from private investors.
"Magnetic Capital: How to Raise All the Money You Need for ANY Worthy Venture" is a book that I wish I'd had when I was just starting out.
Victor J. Menasce, the author, joins me today to share the secrets he's learned about raising Other People's Money. We'll discuss the five fundamental elements to raising money: Relationship, Trust, Results, Compelling Opportunity, and Allignment, and how they apply to Real Estate Opportunities.
Victor will also provide insight into the Psychology of raising money, how to avoid being 'creepy', The Art of the Pitch, Rookie Mistakes to Avoid, and whether or not you need a business plan.
Victor has also appeared on "Dragon's Den", which is the Canadian equivalent of "Shark Tank", and he'll share that interesting experience with us.
You can purchase "Magnetic Capital" by going to Victor's website:
There's a lot of great actionable content in today's episode that I know you'll enjoy. One action you can take right now is to give us a review & rating on itunes!
Brad Tacia and Mark Yuschak both come from a successful background in the corporate world, and they've each had their share of real estate success. So it made a lot of sense for them to partner up, and doing so has had enormous benefits.
Today Brad and Mark discuss the two deals they've done together - a 23 unit community in Fowlerville, and a 63 unit Senior Housing Property in Lansing, Michigan.
We'll discuss how they found these deals, the negotiations they had with the sellers, and the efficiencies they were able to bring that provided a huge upside in their Net Operating Income. We also discuss a busted condo community that Brad purchased during the recession, and how Brad and Mark analyze their deals.
Brad and Mark are also laying the groundwork for their first syndication, and we discuss the type of deal they're looking for, the types of returns they hope to project, and how they share their information with potential investors.
I know you'll enjoy this show. Please go to itunes to subscribe, rate & review!
You can get in touch with Brad and Mark through email & facebook:
facebook: Apartment Investors of Michigan
I first met today's guest, Jordan Anderson, at a Multi-Family Bootcamp several years ago when he had just purchased two-four units in Philadelphia.
Today we discuss what Jordan learned at that bootcamp about multi-family, his successful flipping business, and a triplex he purchased recently with vacant commercial space.
Jordan also shares what happens when you don't listen to your mentor, the contractor who took advantage of him, and the out-of-town investors who might be overpaying in the Philadelphia market.
We also talk about the mindset difference between flipping and multi-family, nurturing relationships with prospective sellers, and using private money.
There's a lot of great information in this episode that I know you'll enjoy. Please take a moment to give us a review & rating on itunes.
For the first time ever on the podcast we answer questions posed by our listeners.
I've invited Rob Minch and Justin Workman back into the studio to help me answer many important questions...
"Should I pay $25,000 for Coaching and Training?"
"I hired a new property management company and my occupancy dropped to 83%. Did I make a mistake?"
"Should I do a cash-out refinance and pull out over $200,000, or is setting up a line-of-credit a better option?"
We answer these questions and more, including the podcasts, books, and people that inspire and educate us. This is an episode you don't want to miss!
If you have questions you'd like to have considered for a future episode, please give us a rating and review on itunes, then email me at firstname.lastname@example.org
In the span of three years, Mike Cowper has grown his wholesaling business to become one of the largest in the Eastern Michigan Tri-State area. Mike and his partner do 20 deals a month by marketing to homeowner/sellers and assigning the contracts to investors of all specialties.
Mike did not achieve this success by accident, and he's happy to share how he systematically and deliberately went about building his multi-million dollar business. From defining his team and their duties, to instituting systems and processes, and creating a killer website that is addictive and fun.
Mike and I also discuss the mastermind group he joined that was instrumental in his growth, how solving other people's problems is a key component of his success, and why you can't always believe what the wholesaling gurus tell you.
Mike's contact info:
Whether you love or hate those HGTV shows on Rehabbing and Flipping, you're going to really enjoy today's conversation.
Ramon Huerta and Jeremy Cole host a 'Property Krawl' every month in Kalamazoo, Michigan, where they invite all levels of investors to accompany them on a tour of properties that are ripe for rehabbing, flipping, and buy & hold investing.
Ramon is a realtor/investor, and he chooses the homes to view, while Jeremy uses his contractor skills to help others understand the costs involved in rehabbing the properties. Together, they strive to help beginning investors understand the complexities of acquiring, rehabbing, and owning rental property, while sharing creative strategies with the more experienced investors who also join in.
We also discuss the economic dynamics of Kalamazoo, a city where you can still buy houses for under $10,000.
I highly recommend visiting the facebook page for 'Property Krawl', where you can see videos and photos of the events. You should also take a moment to go to itunes where you can rate and review this podcast!
Joe Delia is the Lead Agent & Owner of The Delia Group, a Keller Williams agency ranked in the top 10 in the state of Michigan with over $65 million in sales last year.
Joe comes from an entrepreneurial background that helped him thrive during the Great Recession. Joe shares his many adventures in real estate; His experience with Trump University, Flipping & Rehabbing homes in Las Vegas & Phoenix, the frustrations of high-end flips, and the reasons why he avoids cheaper properties in 'D' neighborhoods.
Joe's wife, Renee, is a Six-Sigma Blackbelt, and he discusses how she was able to bring operations & lean processes to The Delia Group that helped them land a huge corporate account with Quicken Loans and complete over $65 Million in transactions in 2016.
If you're struggling with building your team and finding 'A' players, then you'll benefit greatly from this episode. Joe describes the process he uses to find, hire & promote the best talent and build the strongest team possible.
You can contact Joe through his email at: email@example.com
I'd also like you to take a moment and give this podcast a rating & review on itunes.
The RPOA's House Hacking Expert Panel from the Annual Conference was so popular that we decided to record it and make it into a podcast episode.
If you've ever wondered what House Hacking is all about, or why it makes sense, this is the episode you don't want to miss. Our expert panel will talk you through every step: how to find the right property, how to secure financing & renovation loans, and how to find the right tenants.
Courtney Sorrell & her husband completed their first house hack last year. Courtney is the Assistant Director of Annual Giving at Davenport University and is the founder of Pika Properties.
Courtney was also a guest on the podcast – episode #30
Kevin Murphy also completed his first house hack last year and used a little know loan to acquire the property and roll in $30k for rehab expenses. Kevin is a Strategic Pricing Analyst for Meijer, as well as a crossfit trainer & public speaker.
You can hear Kevin on Episode #31 of the podcast.
Allison Koetsier is the Rock Star Realtor who helped Courtney find her first house hack. Allison works for Compass Realty Services & is the #1 multi-family broker in West Michigan. She’s a board member of the RPOA and runs the millionaire mastermind group.
You can hear Allison on Episode #38 of the podcast.
Josh Smith was instrumental in helping Kevin remodel his first house hack using an FHA 203k mortgage. Josh was the owner of Front Porch Group, which focused on the niche of remodeling homes using 203k loans, and he’s currently the sales manager at Treadstone Mortgage, which specializes in residential home mortgages including FHA renovation loans.
I know you're going to enjoy this special podcast episode. Please take a moment to go to itunes to subscribe, rate & review!
With over 20 years of experience buying, managing, and profiting from Single Family and Apartment rentals, Steve Ferris has certainly had his share of up's & downs.
Today Steve shares the lessons he's learned about hiring professional management, flipping his first house, creative financing and lines of credit, and why buying a bargain does not always lead to big profits.
Steve is a Single Family and Apartment investor in Grand Rapids and Muskegon, Michigan. His first acquisition was in 1995, and his portfolio grew quickly enough to allow him to quit his day job. Steve is still actively acquiring rentals in Muskegon, and during our conversation he shares the numbers and returns he's been able to achieve.
I know you'll enjoy our conversation today. Please show us how much by going to itunes to rate & review the show!
Real Estate Investing offers one of the greatest paths to long-term wealth. However, one of the most important components of building that long-term wealth is often overlooked, or approached with dread & fear. Of course, I'm talking about taxes.
Today, in an effort to get past that fear & confusion, we delve into the tax benefits and reporting methods of real estate investing with Duane Culver, CPA and President of Culver CPA Group.
Duane is going to talk us through year-end tax reporting and what you should know if your are a wholesaler, flipper, rehab-er, or buy & hold investor. Duane explains terms like 'depreciation' & 'basis', the difference between investment & business income, what is a balance sheet and profit & loss statement, retirement planning & IRA's, as well as common mistakes different types of investors typically make when they fill out their tax forms.
If you're about to sit down & do your own taxes, or you have a professional prepare them, it pays to learn as much as possible about tax rules & how they apply to real estate investing. The more you understand, the more you'll be able to use tax law to your advantage, avoid mistakes, and prevent IRS audits.
Duane can be contacted by email, his website, or phone:
Enjoy the show, and please take a moment to go to itunes to subscribe, rate & review.
Twenty years ago, Jeff Wilson attended a free Robert Allen Seminar and shortly after purchased his first Single Family Rental Property for $10,000. That successful investment was the beginning of a portfolio that would take him from Cleveland to Grand Rapids, through boom and bust, and ultimately to a point where he is preparing his properties to see him through retirement.
Jeff and I discuss the up's and down's of his investing career, buying HUD properties, selling on Land Contract, working with Section 8 tenants, and his philosophy of improving his properties by putting the cash flow back into capital expenses.
Jeff is also a successful entrepreneur, and I know you'll enjoy listening to his straight-forward advice on owning, managing, and profiting from rental property.
And if you like what you hear, do me a favor and go to to itunes to give us a review & rating.
If you've ever wondered what it takes to acquire a 40-unit apartment community, then you don't want to miss hearing Josh Sterling take you through the process step-by-step.
You might recognize Josh from Episodes 33 & 34 where he discussed his Buy & Hold portfolio in Single Family, Multifamily & Apartment rentals. Josh is also the owner of Epic Property Management near Detroit, Michigan.
Josh recently acquired this 40-unit in Newport, Michigan, and he's going to walk us through the entire process. Josh discusses the broker relationship that gained him access to this deal, how he ran his initial numbers, the site visit, the Letter of Intent, negotiating the purchase price, the purchase agreement, due diligence, the physical inspection, working with the lender, committing his own money toward earnest funds and bank fees, raising other people's money through syndication, pro-rating property taxes, closing the deal, and managing the property after acquisition.
If you're looking for actionable information that will help you do your next deal, then you owe it to yourself to hear what Josh has to say.
And if you like what you hear, do me a favor and go to to itunes to give us a review & rating.
Brad Sumrok is the #1 nationally known educator and mentor for multifamily investing in the country, and today he's going to tell us how he helps people retire in just 3-8 short years by investing in Apartment Complexes.
Brad spent 17 years in the corporate world and he shares with us how his first several multi-families allowed him to leave that world for good. Brad and I discuss Robert Kiyosaki's cash flow quadrants, ESBI, and the difference between being a W-2 employee, self-employed, business owner & investor.
We also talk about Apartment Syndication and real, achievable returns that investment sponsors and passive investors strive for.
Brad's personal mission is to help as many people as possible obtain more income, freedom, and security, by transferring his 15-plus years of apartment investing experience to those who attend his training.
And you have a chance to hear him speak on Saturday, February 25th, 2017 in Grand Rapids, Michigan, at the RPOA's Annual Conference at Devos Place Convention Center. Registration is FREE at www.rpoaonline.org