Let’s say you have a single-family rental that makes you $100 a month. What if you took advantage of a 1031 exchange to purchase a 5-unit building that generates a dramatically higher monthly income of $1K? When Michael Zuber realized the potential cashflow of multifamily investing and the lack of competition in the market for small apartment buildings, his mindset shifted. He went from seeing real estate as a smart place to keep his money to an opportunity to achieve financial independence.

Michael is a full-time real estate investor who specializes in 5- to 20-unit apartment buildings. After 15 years of real estate investing, Michael quit his W-2 job to start One Rental at a Time, a company focused on helping busy professionals begin their own journey to financial freedom. Michael’s goal is to help 1K people learn the fundamentals of real estate investing through his educational platform. He is also the author of the book, 15 Year Journey to Financial Freedom Via One Rental at a Time

Today, Michael joins me to explain how losing six figures in the stock market led him to real estate investing and describe his initial strategy to buy and hold several single-family homes. He discusses his realization around the cashflow potential of small multifamily properties, sharing how he leveraged the 1031 exchange to transition from eight to 80 units in 18 months—right before the crash in 2008. Michael also offers insight around his strategy during the crash, how he is preparing for the likely market correction, and how he might have accelerated his journey to financial freedom. Listen in to understand how Michael opened his mind to multifamily and learn how he can help you through his new platform, One Rental at a Time.

Key Takeaways

How Michael got into real estate

• Lost six figures in stock market in 48 hours
• Year of research, bought first house

Michael’s initial real estate plan

• Wanted security didn’t have w/ W-2 job
• Buy and hold (while working full-time)

How Michael financed his first deals

• Put own money down on first three houses
• Refinanced for capital to buy more
• Acquired seven houses + duplex

Michael’s transition to multifamily

• Cashflow potential of small multifamily
• 1031 all eight houses prior to crash
• From eight to 80 units in 18 months

The details of Michael’s first multifamily deal

• Looking for deals on local MLS, Loopnet
• Found 5-unit through agent relationship

Michael’s mindset shift

• Assumed multifamily above skill set
• Little competition in 5- to 20-unit range

Michael’s strategy during the crash

• Bought everything that made sense
• Structure of deal most important
• Solve problems for owners, banks

Why Michael waited to quit his job

• Ego, identity wrapped up in job
• Need something to commit to

Michael’s One Rental at a Time YouTube Channel

• Educate busy professionals on investing
• Allows to do good and track outcomes

How Michael could have accelerated the process

• Identify underserved market sooner
• Raise private money much earlier

How Michael is preparing for the market correction

• Continue to play in affordable housing
• Raising cash, selling weaker properties

Michael’s advice for aspiring multifamily investors

• Get four rentals (two-year timeline)
• Finance first on own or with partner
• Track record to raise money for next deal

Connect with Michael

One Rental at a Time on YouTube

Resources

15 Year Journey to Financial Freedom Via One Rental at a Time by Michael Zuber

Loopnet

Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank

Michael’s Website

Michael’s Live Training Webinars

Michael’s Coaching Program

Podcast Show Notes

Review the Podcast on iTunes

To reach the highest levels of success in real estate, it’s important to have your mind—and heart—in the right place. So, what’s driving you? Today, Kent Clothier joins me to explain how shifting his focus from money to mission helps him attract clients and create a fulfilling business and family life.

While syndication is the most popular way to raise money to fund a multifamily deal, it is not the only option. A resourceful real estate investor can leverage a number of other creative possibilities. Jake Stenziano and Gino Barbaro have built an impressive portfolio without syndicating a single deal, but now they are adding the strategy to their repertoire. What drove them to add ‘investor relations’ to their skill set? In what situation might a different approach, like owner financing, be appropriate? What are the pros and cons of syndication?

Jake and Gino are the co-founders of Jake & Gino, LLC, an educational platform that leverages their expertise in multifamily real estate to help others attain financial freedom by way of apartment building investing. A few short years ago, Jake and Gino were a pizza guy and a drug rep; today, they own 900-plus multifamily units. They share their creative approach on the Wheelbarrow Profits Podcast, and they are the co-authors of the Amazon bestseller, Wheelbarrow Profits: How to Create Passive Income, Build Wealth, and Take Control of Your Destiny Through Multifamily Real Estate Investing.

Today, Jake and Gino join me to explain how they were able to build a portfolio without syndication, discussing the benefits of using community bankers and partnering with high-net-worth individuals. They share the case study of a 281-unit owner-financing deal and describe how good broker relationships can reveal creative financing opportunities. Jake and Gino also address the differences between community bank and agency debt and the value in understanding the story behind every deal. Listen in for insight around why Jake and Gino are adding syndication to their list of options and learn the advantages—and the drawbacks—of syndicating a multifamily deal!

Key Takeaways The advantage of using community bankers

Build in rehab budget

Much less cash down (15-20%)

How to address the down payment

Partner with high-net-worth individual

Do day-to-day operations for equity

Jake & Gino’s owner-financed 281-unit deal

No money in, walk away with $150K

Facilitated by track record

The right conditions for owner financing

Understand seller’s motivation

Every deal has own story

Why Jake & Gino are syndicating now

Vision to scale requires capital injection

Comfortable speaking to investors

The disadvantages of syndication

Less equity (10% vs. 30%)

More work on front-end

Meet projections vs. ‘do right thing’

Investors expect liquidity event in year five

The difference between community bank and agency debt

‘Ease of doing business’ with community bank

Community bank requires personal guarantee

Agency debt = nonrecourse, low interest rates

What surprised Jake & Gino about syndication

Timeline once LOI signed

Can’t accept $ until docs in place

How Jake & Gino raised money so quickly

Position as experts in space

Live events (e.g.: investor dinner, meetup)

What’s next for Jake & Gino

Continue to look for big deals

Grow education platform (book in 2019)

Connect with Jake & Gino https://jakeandgino.com/ (Jake & Gino’s Website)

Wheelbarrow Profits Podcast

https://www.facebook.com/jakeandgino (Jake & Gino on Facebook)

https://www.instagram.com/jakeandgino/?hl=en (Jake & Gino on Instagram)

Email [email protected]

Resources Wheelbarrow Profits: How to Create Passive Income, Build Wealth, and Take Control of Your Destiny Through Multifamily Real Estate Investing by Jake Stenziano and Gino Barbaro

http://www.themichaelblank.com/podcasts/session52/ (Gino on Apartment Building Investing EP052)

Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank

http://www.themichaelblank.com/ (Michael’s Website)

http://www.themichaelblank.com/live (Michael’s Live Training Webinars)...

While syndication is the most popular way to raise money to fund a multifamily deal, it is not the only option. A resourceful real estate investor can leverage a number of other creative possibilities. Jake Stenziano and Gino Barbaro have built an impressive portfolio without syndicating a single deal, but now they are adding the strategy to their repertoire. What drove them to add ‘investor relations’ to their skill set? In what situation might a different approach, like owner financing, be appropriate? What are the pros and cons of syndication?

Jake and Gino are the co-founders of Jake & Gino, LLC, an educational platform that leverages their expertise in multifamily real estate to help others attain financial freedom by way of apartment building investing. A few short years ago, Jake and Gino were a pizza guy and a drug rep; today, they own 900-plus multifamily units. They share their creative approach on the Wheelbarrow Profits Podcast, and they are the co-authors of the Amazon bestseller, Wheelbarrow Profits: How to Create Passive Income, Build Wealth, and Take Control of Your Destiny Through Multifamily Real Estate Investing.

Today, Jake and Gino join me to explain how they were able to build a portfolio without syndication, discussing the benefits of using community bankers and partnering with high-net-worth individuals. They share the case study of a 281-unit owner-financing deal and describe how good broker relationships can reveal creative financing opportunities. Jake and Gino also address the differences between community bank and agency debt and the value in understanding the story behind every deal. Listen in for insight around why Jake and Gino are adding syndication to their list of options and learn the advantages—and the drawbacks—of syndicating a multifamily deal!

Key Takeaways

The advantage of using community bankers

• Build in rehab budget
• Much less cash down (15-20%)

How to address the down payment

• Partner with high-net-worth individual
• Do day-to-day operations for equity

Jake & Gino’s owner-financed 281-unit deal

• No money in, walk away with $150K
• Facilitated by track record

The right conditions for owner financing

• Understand seller’s motivation
• Every deal has own story

Why Jake & Gino are syndicating now

• Vision to scale requires capital injection
• Comfortable speaking to investors

The disadvantages of syndication

• Less equity (10% vs. 30%)
• More work on front-end
• Meet projections vs. ‘do right thing’
• Investors expect liquidity event in year five

The difference between community bank and agency debt

• ‘Ease of doing business’ with community bank
• Community bank requires personal guarantee
• Agency debt = nonrecourse, low interest rates

What surprised Jake & Gino about syndication

• Timeline once LOI signed
• Can’t accept $ until docs in place

How Jake & Gino raised money so quickly

• Position as experts in space
• Live events (e.g.: investor dinner, meetup)

What’s next for Jake & Gino

• Continue to look for big deals
• Grow education platform (book in 2019)

Connect with Jake & Gino

Jake & Gino’s Website

Wheelbarrow Profits Podcast

Jake & Gino on Facebook

Jake & Gino on Instagram

Email [email protected]

Resources

Wheelbarrow Profits: How to Create Passive Income, Build Wealth, and Take Control of Your Destiny Through Multifamily Real Estate Investing by Jake Stenziano and Gino Barbaro

Gino on Apartment Building Investing EP052

Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank

Michael’s Website

Michael’s Live Training Webinars

Podcast Show Notes

Review the Podcast on iTunes

Partner with Michael

While syndication is the most popular way to raise money to fund a multifamily deal, it is not the only option. A resourceful real estate investor can leverage a number of other creative possibilities. Jake Stenziano and Gino Barbaro have built an impressive portfolio without syndicating a single deal, but now they are adding the strategy to their repertoire. What drove them to add ‘investor relations’ to their skill set? In what situation might a different approach, like owner financing, be appropriate? What are the pros and cons of syndication?

Jake and Gino are the co-founders of Jake & Gino, LLC, an educational platform that leverages their expertise in multifamily real estate to help others attain financial freedom by way of apartment building investing. A few short years ago, Jake and Gino were a pizza guy and a drug rep; today, they own 900-plus multifamily units. They share their creative approach on the Wheelbarrow Profits Podcast, and they are the co-authors of the Amazon bestseller, Wheelbarrow Profits: How to Create Passive Income, Build Wealth, and Take Control of Your Destiny Through Multifamily Real Estate Investing.

Today, Jake and Gino join me to explain how they were able to build a portfolio without syndication, discussing the benefits of using community bankers and partnering with high-net-worth individuals. They share the case study of a 281-unit owner-financing deal and describe how good broker relationships can reveal creative financing opportunities. Jake and Gino also address the differences between community bank and agency debt and the value in understanding the story behind every deal. Listen in for insight around why Jake and Gino are adding syndication to their list of options and learn the advantages—and the drawbacks—of syndicating a multifamily deal!

Key Takeaways

The advantage of using community bankers

• Build in rehab budget
• Much less cash down (15-20%)

How to address the down payment

• Partner with high-net-worth individual
• Do day-to-day operations for equity

Jake & Gino’s owner-financed 281-unit deal

• No money in, walk away with $150K
• Facilitated by track record

The right conditions for owner financing

• Understand seller’s motivation
• Every deal has own story

Why Jake & Gino are syndicating now

• Vision to scale requires capital injection
• Comfortable speaking to investors

The disadvantages of syndication

• Less equity (10% vs. 30%)
• More work on front-end
• Meet projections vs. ‘do right thing’
• Investors expect liquidity event in year five

The difference between community bank and agency debt

• ‘Ease of doing business’ with community bank
• Community bank requires personal guarantee
• Agency debt = nonrecourse, low interest rates

What surprised Jake & Gino about syndication

• Timeline once LOI signed
• Can’t accept $ until docs in place

How Jake & Gino raised money so quickly

• Position as experts in space
• Live events (e.g.: investor dinner, meetup)

What’s next for Jake & Gino

• Continue to look for big deals
• Grow education platform (book in 2019)

Connect with Jake & Gino

Jake & Gino’s Website

Wheelbarrow Profits Podcast

Jake & Gino on Facebook

Jake & Gino on Instagram

Email [email protected]

Resources

Wheelbarrow Profits: How to Create Passive Income, Build Wealth, and Take Control of Your Destiny Through Multifamily Real Estate Investing by Jake Stenziano and Gino Barbaro

Gino on Apartment Building Investing EP052

Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank

Michael’s Website

Michael’s Live Training Webinars

Podcast Show Notes

Review the Podcast on iTunes

Partner with Michael

Once upon a time, Michael Beeman was struggling. He had a blended family of seven kids, and his corporate salary of $60K was simply not enough. Today, he joins me to explain how he went from working a second job splitting firewood for extra cash to a 64-unit multifamily portfolio in just 18 months!

“When you chase money, money runs. When you’re focused on mission, you attract money.”

To reach the highest levels of success in real estate, it’s important to have your mind—and heart—in the right place. If your WHY is about more than just you, if your mission has meaning, business will come to you. So, what’s driving you?

Kent Clothier is the founder and CEO of Real Estate Worldwide, a real estate software and education platform that offers aspiring investors a curriculum of proven systems and technology as well as national data on real estate cash buyers and private lenders. A serial entrepreneur and digital marketing expert, he also owns and operates the multimillion-dollar brands https://realmarketexperts.com/ (Real Market Experts), 1-800-SELL-NOW FREE, Find Cash Buyers NOW and Find Private Lenders NOW.

Today, Kent joins me to explain how his definition of success has shifted from a focus on money to a focus on impact. He offers insight on designing a meaningful mission and going all-in to reach your goals—without sacrificing your quality of life. Kent describes how he has created a life of balance, sharing the massive lessons learned from losing everything after 13 years of running his first business. Listen in for Kent’s advice on becoming a student of scale and learn the value of people, processes and technology in building a fulfilling real estate business that complements your personal life!

Key Takeaways Kent’s background in real estate

Started as wholesaler in 2002

Turnkey operation (completed 5K flips to date)

Runs software, education business (50K students)

How Kent’s definition of success has changed

Money was driving factor 10 years ago

Massive windfall as shift in focus to mission

What inspired Kent to focus on mission

Uncle/mentor passed away at 61

Standing for something attracts people

Kent’s insight on the necessity of going all-in

Capable of much when back against wall

Success connected to meaningful mission

Kent’s take on the difference between failure and success

NEVER about how much you know

Failing is inevitable but doesn’t define you

‘I will simply never quit’

How Kent connects with his WHY every day

Will somebody say I mattered?

‘This is where my competition will quit’

How Kent creates a life of balance

High quality of life (e.g.: dream house on ocean)

Monthly vacation, walk daughters to school

In business of ‘creating moments’

Kent’s massive lesson around balance

Sacrificed family, personal life in first business

Walked away from company out of arrogance

Tried to pirate employees, customers

Got sued and lost everything

Got serious about systems with new business

Kent’s advice around scaling your business

Good people, systems around you

Document processes as build team

‘Elegance in simplicity’

Kent’s Big Hairy Audacious Goal

Launch new business (Cribs)

Go toe-to-toe with Opendoor

Connect with Kent https://kentclothier.com/ (Kent’s Website)

https://www.facebook.com/kent.clothier (Kent on Facebook)

https://www.instagram.com/kentclothier/ (Kent on Instagram)

Resources Scaling Up: How a Few Companies Make It … and Why the Rest Don’t by Verne Harnish

http://www.themichaelblank.com/podcasts/session79/ (Damion Lupo on Apartment Building Investing EP079)

http://www.financialfreedomthebook.com/ (Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash) by Michael Blank

http://www.themichaelblank.com/live (Michael’s Live Training Webinars)

http://www.themichaelblank.com/session137/ (Podcast Show Notes)

Review the Podcast on iTunes

“When you chase money, money runs. When you’re focused on mission, you attract money.”

To reach the highest levels of success in real estate, it’s important to have your mind—and heart—in the right place. If your WHY is about more than just you, if your mission has meaning, business will come to you. So, what’s driving you?

Kent Clothier is the founder and CEO of Real Estate Worldwide, a real estate software and education platform that offers aspiring investors a curriculum of proven systems and technology as well as national data on real estate cash buyers and private lenders. A serial entrepreneur and digital marketing expert, he also owns and operates the multimillion-dollar brands Real Market Experts, 1-800-SELL-NOW FREE, Find Cash Buyers NOW and Find Private Lenders NOW.

Today, Kent joins me to explain how his definition of success has shifted from a focus on money to a focus on impact. He offers insight on designing a meaningful mission and going all-in to reach your goals—without sacrificing your quality of life. Kent describes how he has created a life of balance, sharing the massive lessons learned from losing everything after 13 years of running his first business. Listen in for Kent’s advice on becoming a student of scale and learn the value of people, processes and technology in building a fulfilling real estate business that complements your personal life!

Key Takeaways

Kent’s background in real estate

• Started as wholesaler in 2002
• Turnkey operation (completed 5K flips to date)
• Runs software, education business (50K students)

How Kent’s definition of success has changed

• Money was driving factor 10 years ago
• Massive windfall as shift in focus to mission

What inspired Kent to focus on mission

• Uncle/mentor passed away at 61
• Standing for something attracts people

Kent’s insight on the necessity of going all-in

• Capable of much when back against wall
• Success connected to meaningful mission

Kent’s take on the difference between failure and success

• NEVER about how much you know
• Failing is inevitable but doesn’t define you
• ‘I will simply never quit’

How Kent connects with his WHY every day

• Will somebody say I mattered?
• ‘This is where my competition will quit’

How Kent creates a life of balance

• High quality of life (e.g.: dream house on ocean)
• Monthly vacation, walk daughters to school
• In business of ‘creating moments’

Kent’s massive lesson around balance

• Sacrificed family, personal life in first business
• Walked away from company out of arrogance
• Tried to pirate employees, customers
• Got sued and lost everything
• Got serious about systems with new business

Kent’s advice around scaling your business

• Good people, systems around you
• Document processes as build team
• ‘Elegance in simplicity’

Kent’s Big Hairy Audacious Goal

• Launch new business (Cribs)
• Go toe-to-toe with Opendoor

Connect with Kent

Kent’s Website

Kent on Facebook

Kent on Instagram

Resources

Scaling Up: How a Few Companies Make It … and Why the Rest Don’t by Verne Harnish

Damion Lupo on Apartment Building Investing EP079

Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank

Michael’s Live Training Webinars

Podcast Show Notes

Review the Podcast on iTunes

“When you chase money, money runs. When you’re focused on mission, you attract money.”

To reach the highest levels of success in real estate, it’s important to have your mind—and heart—in the right place. If your WHY is about more than just you, if your mission has meaning, business will come to you. So, what’s driving you?

Kent Clothier is the founder and CEO of Real Estate Worldwide, a real estate software and education platform that offers aspiring investors a curriculum of proven systems and technology as well as national data on real estate cash buyers and private lenders. A serial entrepreneur and digital marketing expert, he also owns and operates the multimillion-dollar brands Real Market Experts, 1-800-SELL-NOW FREE, Find Cash Buyers NOW and Find Private Lenders NOW.

Today, Kent joins me to explain how his definition of success has shifted from a focus on money to a focus on impact. He offers insight on designing a meaningful mission and going all-in to reach your goals—without sacrificing your quality of life. Kent describes how he has created a life of balance, sharing the massive lessons learned from losing everything after 13 years of running his first business. Listen in for Kent’s advice on becoming a student of scale and learn the value of people, processes and technology in building a fulfilling real estate business that complements your personal life!

Key Takeaways

Kent’s background in real estate

• Started as wholesaler in 2002
• Turnkey operation (completed 5K flips to date)
• Runs software, education business (50K students)

How Kent’s definition of success has changed

• Money was driving factor 10 years ago
• Massive windfall as shift in focus to mission

What inspired Kent to focus on mission

• Uncle/mentor passed away at 61
• Standing for something attracts people

Kent’s insight on the necessity of going all-in

• Capable of much when back against wall
• Success connected to meaningful mission

Kent’s take on the difference between failure and success

• NEVER about how much you know
• Failing is inevitable but doesn’t define you
• ‘I will simply never quit’

How Kent connects with his WHY every day

• Will somebody say I mattered?
• ‘This is where my competition will quit’

How Kent creates a life of balance

• High quality of life (e.g.: dream house on ocean)
• Monthly vacation, walk daughters to school
• In business of ‘creating moments’

Kent’s massive lesson around balance

• Sacrificed family, personal life in first business
• Walked away from company out of arrogance
• Tried to pirate employees, customers
• Got sued and lost everything
• Got serious about systems with new business

Kent’s advice around scaling your business

• Good people, systems around you
• Document processes as build team
• ‘Elegance in simplicity’

Kent’s Big Hairy Audacious Goal

• Launch new business (Cribs)
• Go toe-to-toe with Opendoor

Connect with Kent

Kent’s Website

Kent on Facebook

Kent on Instagram

Resources

Scaling Up: How a Few Companies Make It … and Why the Rest Don’t by Verne Harnish

Damion Lupo on Apartment Building Investing EP079

Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank

Michael’s Live Training Webinars

Podcast Show Notes

Review the Podcast on iTunes

When you know, you know. Once Kyle Collins fell in love with multifamily as an asset class, he didn’t waste any time. Today, he joins me to explain how he went from zero to 112 units in just 9 months and quit his job to pursue real estate investing full time!