By the time you listen to this episode, Justin Richards and Aaron Lenartz will have closed on a 144-unit Class C Apartment Building in Memphis Tennessee. And they'll have raised $1.3 Million from investors to do so. I thought it would be interesting to sit down & talk with them about what they went through to find, inspect, and acquire this property while its fresh in their minds.
What you're about to hear is the nuts & bolts process from two investors and syndicators who have learned a great deal from the experience of closing their first large apartment syndication. We'll talk about the importance of broker relationships, Best & Final offers, what it means to be a lifestyle investor, working with attorneys, and securing a bridge loan to complete necessary repairs.
You'll also learn how Justin and Aaron were able to be taken seriously as investors even though they'd never closed a deal this large. They also share the process they went through to raise $1.3 Million from qualified investors, as well as the amount of their own money they had to put up along the way.
Justin and Aaron host a meetup group every third Wednesday of the month at the Buffalo Wild Wings in Wyoming, MI on 44th Street. Their next meetup is this Wednesday, September 19th, 2018 at 5:45. You can find out more information by going to https://www.meetup.com/Think-Multifamily-Real-Estate-Investing/events/253982654/
And you can contact Justin and Aaron through their website:
Like many of us, Daniel Breslin started investing in real estate after reading "Rich Dad, Poor Dad". The only difference is that he read it while serving time in prison.
Daniel was able to scrape together $5,000 to do his first deal, and 12 years later he's now the Founder & President of Diamond Equity Investments, a real estate investment company specializing in Fix & Flips and Wholesaling.
Daniel talks about the first deal he did after getting out of jail and how it changed his life, his philosophy on the Velocity of Money and how he likes to get in & out of a deal as quickly as possible, how he funds his deals and vets his partners, techniques on negotiating for the best sales price, tips on marketing to find good leads, and the historical biographies that inspire him.
Theres a lot of great info packed into this episode that I know you're going to enjoy. Daniel is also the author of the book "Become a Wholesale Real Estate Master: Buy & Sell Houses With No Money Down" and he can be contacted through his website: www.REIDiamonds.com
Gino Barbaro is an experienced investor in multifamily and apartments with over 900 units under his control, and he's built that portfolio without syndicating through his Refi & Roll strategy.
Today Gino is going to share his unique perspective with us on many areas of investing and life skills: multi-faceted multifamily and creating multiple streams of income, how Life Coaching helped get him to where he wanted to be, the challenges he faced in building his portfolio, and the partnership that accelerated his success.
Gino is also the co-host of the "Jake & Gino Wheelbarrow Profits Podcast", and the co-author of "Wheelbarrow Profits: How to Create Passive Income, Build Wealth, and Take Control of your Destiny Through Multifamily Real Estate Investing".
Gino is a super successful and motivated investor with a lot of experience and helpful techniques. I know you're going to enjoy this conversation as much as I did.
You can contact Gino through email or his website:
Any investor who has dreamed of quitting their job and investing in Real Estate full time must consider this. Health care costs can be one of the largest line item expenses for any business. But understanding your options and plans available can be confusing and frustrating.
So I thought it would be helpful to bring in my health insurance broker, Chad Creasey from RCB & Associates, to break it all down for us: What options are available to real estate investors, what are the pitfalls of choosing your own insurance, how to project whether you'll qualify for Obamacare subsidies, and who you can turn to for help.
Open enrollment season is also coming up starting November 1st and running through December 15th. If you're going through a change in employment and need advice on finding your own health insurance, then you definitely need to have someone like Chad on your team. Best of all, when you go through an agent or broker for health insurance, there is no additional cost to you.
I'd also like to welcome Chad and RCB & Associates as new sponsors to this show. They're a strong supporter of the RPOA and I've been benefiting from Chad's advice for the past five years.
Chad can be reached by cell, email, or his website:
In today's tight housing market, landlords can be much more selective in who they rent their properties to. Because of this, there are certain groups of tenants that are finding it more and more difficult to find affordable housing.
Today we're going to talk about one of these groups and the efforts by the state and West Michigan community to help them.
We're going to take a look at Returning Citizens, those who have been incarcerated, served their time, and are looking to re-enter society and find stable housing - which is an important part of preventing recidivism.
This episode will definitely be of interest to landlords who are willing to consider the benefits of renting to returning citizens, as well as anyone interested in understanding the difficulty they face in finding a place to live.
This is a round-table discussion, and we've gathered a great group of guests to share their perspectives:
Angie Sprank is the Community Coordinator for Region 4 Offender Success Program and helps returning citizens remain successful in their transition back to society.
Shellie Cole-Mickens is the Founder and Director of House of Blessings, providing housing and support for women with mental health and substance abuse challenges as well as extensive criminal histories. She is also a returned citizen since 1996.
JoNathan Martin is a returned citizen since 2015, and works closely with other returning citizens to offer them support and guidance.
Ruth Walters is an officer with the Grand Rapids Police Department and runs a program called "CLEAR" for returning citizens to assist them in staying in the community.
For more information on the Offender Success Program in the West Michigan area you can contact Angie Sprank at:
For those outside of Michigan, you can contact your state's Department of Corrections.
Despite the higher turnover and maintenance costs, as well as the additional tenant headaches, investing in C & D rental properties can be more lucrative if you have a plan and know what you're doing.
Dan Essink owns and invests in Lower Income properties in the Muskegon, Michigan area. He also manages them through his company, DICE Property Management. Today, Dan is going to share his experiences and perspective with us: How he got started by house-hacking his first duplex, the true cost of evictions and how he manages to avoid losing additional money on turnovers, and setting your boundaries with residents so they don't consume all of your time and effort.
Dan also talks about the property he's buying on Land contract through both his Self-Directed IRA (SDIRA) and his Health Savings Account (HSA) with only $15,000 down.
We'll also learn Dan's conservative thought process when it comes to investing in 401k's, running APODs, and understanding Amortization Tables and loan terms.
Dan shares a lot of great info in this episode that I know you're going to appreciate. Please take a moment to give us a rating and review on itunes.
Recently I received the following email from RPOA member and podcast listener Maureen Weick:
I have 1.5 acres of vacant land in northern Allegan County. I have been trying to decide what to do with it and would love to hear some opinions. These are my questions/thoughts -
1) Do I just sell outright as vacant land? ---Not a fan of this one - I will have capital gains to pay, unless I can manage the sale under a 1031 Exchange
2) Should I put a used double wide trailer there (this is rural lot) and rent it out? If I did that, should I put on a slab or a full basement?
3) Should I build a small home there and rent it out? Again, basement or slab? I hear it is quite expensive to build right now --but will that ever get any better.....?
If this was your property what would you do?
In order to answer these questions I asked Justin Workman to sit down with us and go over Maureen's options. What followed was a lively discussion about 1031 Exchanges, building spec homes, buying mobile homes, and other possible options that will be of interest to any real estate investor.
Enjoy the show. If you have a question you'd like us to consider for the podcast, please send me an email: email@example.com
Mark Podolsky began investing in Raw Land with only $3,000. Seventeen years later, he's completed over 5,200 land deals with an average Return-on-Investment of 300%.
Today Mark is going to share his Raw Land Investing techniques, and how he teaches other to make huge returns without putting any of their own money at risk.
Mark is the owner of Frontier Properties, a very successful and reputable land investing company. He's also the host of several podcasts, including "The Art of Passive Income Podcast". And he's the author of the recently released book "Dirt Rich: How One Ambitiously Lazy Geek Created Passive Income in Real Estate Without Renters, Renovations, and Rehabs".
Mark will share why you don't need money to get started investing in Raw Land, how he's able to do all of his due diligence on his computer, the ways he's systematized his business, and how he's confronted his fear of death.
There's a lot of great info in this episode, and you can learn more about Mark and investing in raw land by going to his website: www.thelandgeek.com
Also, if you send an email to firstname.lastname@example.org and mention this podcast, Mark will send you a free Passive Income Launch Kit.
As the host of this podcast, I enjoy getting questions from our listeners. As a member of the RPOA, I love having experts on hand to help me answer those questions.
Today Mark Troy joins me to answer listener questions and share his wisdom and experience gained over 18 years in the business. Mark is the Managing Broker at Compass Realty Services and the Director of Real Estate Investment at Compass Property Management, both of which he is the original founder and co-owner.
Mark and I discuss whether one of our listeners should raise their tenant's rent, and under what conditions they shouldn't. We also help a listener decide whether they should replace their roof for $12,000, or just patch it for the next 3 to 5 years for $1,500.
We also discuss the "End Game", and common exit strategies investors use to maximize their gains and take their chips off the table.
Mark also talks about 'Managing the Manager', and what he's noticing in today's market in terms of rent increases and sales volume.
Mark manages and has been involved in the acquisition of thousands of rental properties, so I know you're going to learn a lot from his unique perspective.
You can contact Mark through Compass Properties or his email:
Should Rental Application Fees be Banned?
Today we're going to discuss an issue that's happening right here in Grand Rapids, but it affects landlords and rental property owners everywhere. It has to do with the affordable housing challenge communities are facing as rents rise and neighborhoods gentrify. As tenants find it increasingly difficult to locate and afford housing, those communities and their elected representatives are pointing the finger of blame at landlords, investors and property management companies, and looking for ways to legislate our behavior in order to solve this problem.
Just this week the Grand Rapids Mayor and City Commission voted to approve a rental application fee ordinance, which will be very consequential to all of us who provide rental housing. In order to help explain and understand this ordinance, I'm joined by the RPOA's Director, Clay Powell. Clay has been involved in this issue on the RPOA's behalf since its inception, and is going to break it down for us in order to understand how it will impact the way we screen tenants, collect application fees, and advocate for our rights as rental property owners.
You can learn more about the RPOA and become a member by going to www.rpoaonline.org
In today's tight real estate market its very difficult for investors and home buyers to find good investment deals. Believe it or not, there are still plenty of opportunities in Distressed, Foreclosure, and Bank-Owned Properties. One of the ways to find these deals is through Auction.com.
Today I sit down with Casey O'Neill to discuss the transparency Auction.com is bringing to the distressed market, and the emphasis they place on helping potential investors with due diligence.
Casey also warns of the pitfalls and risks in investing in distressed properties that you may not get to inspect fully before purchasing. We'll also talk about the bid process as well as the timeline and costs associated with purchasing. And Casey shares his thoughts on Michigan's Foreclosure laws and how they could be improved.
If you've never used Auction.com, this episode is a great introduction to a potential source of opportunities. If you've ever bid on Auction.com then you'll definitely find some useful tips on how the system works.
I hope you enjoy this episode and ask that you take a moment to give us a review and rating on itunes.
Ratan Khatri is a strong believer in the power of leveraging other people's money through syndication. He's recently completed his first syndication with the purchase of 50 single family homes in Muskegon, Michigan, and he'll be investing in Senior Assisted Living, Mobile Home Parks, Self-Storage, and Multi-Family through syndication as well.
Today Ratan & I discuss his philosophy of investing, and why he believes its better to own 10% of ten things rather than 100% of one thing. Ratan also shares his thoughts on the economy and why he's investing in different asset classes. You'll also learn how Ratan has added additional value to his real estate through simple upgrades and improvements.
Ratan is also the owner of RKP Management, which manages over 200 homes in Muskegon, Michigan, with an emphasis on helping veterans and low-income families. Ratan has been active in improving tenant screening in the Muskegon area, and those efforts have been paying off with decreased turnover for his & other's properties.
Ratan also discusses the immigrant experience, and why certain immigrants are so successful after moving to the United States. You'll learn what separates America from the rest of the world, and why our streets are 'truly paved with Gold'.
I know you'll enjoy this episode and the wisdom Ratan has to share. You can contact Ratan through his property management company, linkedin, or phone:
Vinney Chopra came to America with $7 dollars in his pocket and a dream. Today he Asset Manages a $172 Million dollar portfolio of Multi-Family Properties. He's done over 26 syndications and has over 3,100 apartments under management. The great thing about Vinney is that he can raise $6 to $10 Million dollars without breaking a sweat, but he remains humble and friendly and willing to share how he does it.
In today's conversation Vinney will tell us how he went from being a failure at door-to-door sales to buying thousands of doors through syndication. You'll learn how Vinney talks with potential investors and the techniques he uses to raise millions of dollars. We'll also discuss the importance of salesmanship and the marketing tips Vinney has learned along the way.
Vinney also shares the return-on-investment he shoots for with his investors, why he started his own property management company, and the people and books who have influenced his thinking in a positive way.
Vinney is one of the most positive and inspiring people you'll ever meet, and I know you're going to enjoy this conversation. You can learn more about Vinney by checking out his website:
Calvin Beeke left college to become a full-time entrepreneur, found success with a business he created, and then decided to become a full-time real estate investor.
Within a short span of time, Calvin has dived right in. He likes to have three flips going in any given period: one that he's just purchased, one that is being rehabbed, and one that is being sold. At the same time, Calvin is building his Buy & Hold portfolio of value-add investments with a focus on mid-sized Multi-family. He owns 17 units on his own, and over 50 units with his investment partners, ranging from a duplex up to a 24 unit Multi-family.
Today Calvin and I discuss how he gets his leads and finds his deals, how he's increased his Net Operating Income by increasing rents and lowering expenses, and the value of purchasing your own laundry machines.
Calvin also takes us through the numbers on a 12-unit he purchased in Lowell Michigan and the mystery of his extraordinarily high water bill. We also discuss the pro's and con's of Freddie Mac and Fannie Mae loans and the different terms to pay attention to.
Calvin has built a profitable portfolio quickly, and I know you're going to enjoy learning how he did it. Enjoy the episode and please take a moment to give us a review & rating on itunes.
Real Estate investors are quite often focused on acquiring assets and building their portfolios. But how often do we stop to think about our 'end game', and when and how we'd like to wind down our investments?
Transition Planning is an important part of every investor's game plan, and having a team that consists of a real estate attorney, CPA, and financial planner can be very helpful in putting this plan in place.
Bobbi S. Hines is an attorney, and a member of Kreis Enderle's Estate Planning and Elder Law Practice Group, and she's in the studio today to discuss transition planning for real estate investors.
We'll be talking about the different transition options investors and business owners consider, how you should be planning your transition plan now, and the mistakes people make in laying the groundwork for their transition plans that can have disastrous consequences for their business and their heirs.
Bobbi will also be teaching the RPOA's "Transition Planning for Real Estate Wealth" course at the RPOA's Grand Rapids office on Tuesday, June 19th @ 10am. You can register for this class by going to www.rpoaonline.org.
You can also contact Bobbi directly by email or phone:
There's a lot of great information packed into this episode that every investor and business owner should be considering and planning for. Enjoy!
Jeremy Garcia and Melanie Hall's path to real estate investing is very different than what you might expect from two successful entrepreneurs. Both have had to overcome the self-doubt and lack of confidence that many of us experience when starting down this road, but Melanie also faced tragedy and bankruptcy along the way.
Today they share their stories of working through that initial bankruptcy with the help of credit restoration companies and the RPOA, the House-Hack that made a $70,000 profit, and the house from hell that the city told them was on fire.
Jeremy also runs us through the numbers he looks for when making an investment and tells us about the police report he just filed on a contractor who was making unauthorized charges on his Home Depot credit card. Melanie explains why color is so important to making their homes feel inviting, and we discuss the purchasing power of women and why all rehabs should be done with them in mind.
This is a great episode to get to know two very interesting RPOA members and hear their true story. Jeremy also owns a landscaping company, and if you'd like to learn more about his services you can contact him through email:
Statistics tell us that one-in-four Americans will be sued in their lifetime, and Real Estate Investors are targeted even more frequently. So what can we do as investors to protect ourselves and our investments?
Our guest today, Scott Smith, is an Asset Protection Specialist and owner of Royal Legal Solutions, which provides business, tax and legal solutions geared exclusively toward real estate investors. Scott is going share his asset protection strategies, as well as stories from the front-lines of the legal system.
Scott will share his advice on why you shouldn't hold your property in your personal name, using trusts to shield your assets, traditional v.s. series LLCs, the importance of accurate accounting and how to avoid piercing the corporate veil.
Scott will also tell us why insurance is not a substitute for asset protection and has a $4 million dollar horror story to prove it.
If you own rental property you need to protect yourself and your investment. This conversation is a great place to start.
Scott can be contacted through his website, email & phone #:
Ric Conkey is a true "Do-It-Yourself" Landlord and Multi-Family Investor who grew up helping his father manage their family's rental properties.
Today Ric shares the secrets he's learned over the years on maximizing rent, decreasing turnover time, and marketing to tenants. He also shares the frustrations of being on call for maintenance and repairs, waiting for cleaning crews, and sorting through multiple keys for his 14 units. We also talk about laundry income and the pro's and con's of owning your own machines.
Ric is also a home appraiser for Real Value Group and will give you the inside scoop on how to maximize your properties' appraised value. Ric and I also discuss his epiphany on retirement and how it relates to his passive income from owning real estate.
There are many great nuggets of wisdom in this conversation that will definitely add value and real estate knowledge. If you'd like to contact Ric, his phone # is 616-813-8952, and his email is email@example.com
Lane Kawaoka is an engineer by day, but whenever he's not on the job, he's full-on into Real Estate Investing as the owner of MPFE Investments which is focused on value-add multifamily apartments.
Lane and his partners own over 626 units and he's raised over $2 Million from private investors.
Today we're going to discuss the steps Lane is taking to break the "Golden Handcuffs" of his high paying job, why its important to get started investing, even if you're buying a mediocre single-family, the reasons he doesn't like 1031 exchanges, and the three ways a deal can fail.
Lane also lives in Hawaii, and explains how he's able to invest in other states. He also describes his transition into commercial real estate investing and how he learned to talk with brokers and find strategic partners in new areas. You'll definitely pick up a lot of great information from this episode that will help you in whatever type of investing you're interested in.
You can contact Lane through his website or email:
Enjoy the show!
Tyler Lyons has acquired and rehabbed three houses in the Grand Rapids, Michigan area, and in the process he's added substantial value to each one. Tyler's goal has been to "BRRRR" - Buy, Rehab, Rent, Refinance, and Repeat. But when it came time to put financing on those properties, he wanted to make sure he avoided the pitfalls that led many investors to lose everything during the Great Recession.
How much debt on your rental properties is safe? Should you keep a good amount of equity in your property, or pull out the maximum in order to buy more? What's better, a 15-year mortgage or a 30-year? And are investors making the same mistakes in financing that were being made leading up to the last recession?
These are questions that need to be taken seriously, so who better to help answer them than "Friends of the Show" Justin Workman and Rob Minch. Justin and Rob join Tyler and me in the studio to perform a bit of Real Estate Therapy and Counseling.
Rob calls on his lending background to compare today's loan environment to the one ten years ago. Justin breaks down just how much money Tyler needs to keep in Capital Reserves for his rentals, and what that means to his ROI. And Tyler shares the process he went through in building his portfolio.
This is a great episode that I know you're going to enjoy. And I guarantee that Justin's CapEx breakdown will make you rethink how much money you should be keeping in reserves for your properties.
And if I may ask a favor, please take a moment and go to itunes to give us a rating and review. This will help us increase our listener-ship and continue getting great guests.
Jack Gibson knew early on that having a job and working for someone else just wasn't in his destiny, so he sought out alternative paths to creating wealth.
By the age of 21 Jack was running a successful multi-million dollar business coaching clients on effective nutrition and fitness strategies. Then he realized how profitable real estate investing could be. Now he's the Co-Owner of High Return Real Estate, LLC out of St. Joseph, Michigan, and he's passionate about helping other investor find high-yield cash-flowing properties and investing in them passively.
Today Jack and I discuss his early beginnings as an entrepreneur, Multi-Level Marketing businesses and the important lessons they thought him in sales and marketing, and the effects reading Robert Kiyosaki's "Rich Dad, Poor Dad" had on him.
Jack also shares the types of returns he strives for in his turn-key properties, the importance of finding the right team, and the $60,000 mistake he made on one of his early investments.
I know you'll enjoy this episode. You can contact Jack through his website:
When it comes to Finding the Money for your purchase of a home or investment property, Seller Financing can help you avoid traditional lenders while setting terms that work for both the buyer and seller.
From a seller's standpoint, seller financing can help you maintain a steady income, while spreading out the tax consequences of a sale.
But with the passage of the Dodd-Frank Consumer Protection Act, a lot of investors are unsure whether Seller Financing is still a viable strategy.
Luckily, the RPOA held, and recorded, an expert panel at it's annual conference where we discussed how Seller Financing works, the legalities to be aware of, and how to do it right. Here are the experts you will hear from:
David Hill, a Real Estate Attorney with Barnes & Thornburg LLP. His specialties are Real Estate and Finance Law. David was also a guest on the podcast – episode #12
Justin Workman, a Residential Redevelopment Specialist, landlord, investor and home buyer. His company is Work’n It Properties LLC, and Justin has experience with various types of seller financing. Justin was also a guest on the podcast – episode #3, 51 & 67
Javier Rodriguez, a real estate broker at Lake Michigan Realty Management who has sold over 500 properties in Kent County. He’s also a former loan originator with experience providing his clients with seller financing options.
Steve Whitteberry has 10 years experience as a real estate investor in West Michigan. He’s done fix & flips, buy/repair & holds, and he’s purchased properties using seller financing and has sold four properties using Seller Financing out of his Self-Directed IRA. Steve has been on the podcast several times, Ep #19 & 20
There is a lot of great information packed into this episode that I know you're going to enjoy and profit from. Please take a moment to go to itunes to give us a five-star rating and review.
Salman Chaudhry didn't expect to buy his first rental property at the first Sheriff's Sale he ever attended...but he did. Salman was also warned against investing in another property he had his eye on...and he bought it anyway. Now Salman owns thirteen Single-Family Homes in Lake Charles, Louisiana, and he's ready to share how his investments have turned out.
Today Salman discusses the uncertain road he traveled at the beginning of his investing career, his recent move to Houston, Texas and the 10,000 Square Foot industrial warehouse he purchased, as well as the mistakes he made in not doing enough due diligence on several of his investments.
Salman also talks about his goal of investing in apartment buildings, and whether he's finding opportunities in the Houston area.
Salman is the Chief Operating Officer of Teezin Wealth Management and can be reached by email:
If you've ever wondered what it would be like to star in one of those Fix & Flip Reality TV shows, then you're going to love this episode.
Last year Jeremy Cole and Ramon Huerta shot a pilot episode for a new series called "Gritty To Pretty". Last month it debuted on the DIY Network, and today they'll share their 'behind-the-scenes' stories and secrets.
You're going to learn how Jeremy and Ramon got comfortable being in front of the camera, how they chose the property to rehab, and why the producers asked them to clean the bathroom before filming began. You'll also find out what its like working with a real Hollywood tv crew, how it affected their rehab schedule, and what a 'clapper' actually does.
Jeremy and Ramon have been on the show before (Episode #65) and they always provide a fun and interesting conversation. Soon they'll be learning whether or not their show will get picked up by HGTV, and you can stay informed by checking out their "Property Krawl" facebook page, or Jeremy's website: www.kzoorestored.com
Enjoy the show!
When it comes to politics, everyone has their reasons for voting for a certain candidate or backing certain issues. And as real estate investors, we need to be aware of which candidates are best suited to support our ability to provide housing for our residents while still making a profit.
Today we're going to talk about the places where politics and Real Estate Investing connect, and how we as real estate investors and landlords can support the candidates and legislation that in turn supports us as investors.
Here to have that conversation is Tom Koetsier, award-winning realtor with Compass Realty Services. Tom also sits on the Grand Rapids Planning Commission, he's the current president of the RPOA, and is also a successful real estate investor as well.
Tom also volunteers on the RPOA Government Affairs Commission, as well as the RPOA Political Action Committee (PAC).
You can support the PAC by following the link below: