Owning multifamily properties and running a successful real estate investment company were not things Gino Barbaro ever thought would be in his future. He was actively working long hours in his family's restaurant business and expected that was his lot in life. But when he recognized that he wasn't doing anything of lasting value and decided it was time for a change, he looked to real estate investing - and after 2 years of educating himself, Gino quickly became prominent as a multifamily property investor, along with his partner Jake. This episode tells the story of Gino's transition from restaurants to real estate, explains why he partnered with his friend Jake, describes their "backward" way of getting into the business, and more. Gino shares his story and his advice freely, so be sure you listen.

The 4 basic roles in a successful multifamily operation

One of the themes you'll hear as you listen to the conversations Jonathan has had on this podcast is that real estate investing is a team sport. Gino's story demonstrates it to be true once again. He and Jake started out as a two-man team, doing everything required to set up and close successful multifamily deals. But in order to grow the business, they couldn't continue to do all the work themselves. Gino says that a multifamily business requires 4 primary roles - Someone to underwrite the deals, someone with a strong balance sheet or net worth to bring a base of financial stability to them, another person to run the operations, and a final person to be in charge of raising the remaining capital needed. Gino discusses how he and Jake have gone about building those roles into their latest syndications and how you can set your sights and get started with multifamily properties yourself. It's hard work, but it can be done - even in the most competitive markets.

Look for properties that are poorly managed or need improvement

If you look at what's happening in the hot markets like Denver, you'll see that multifamily property investing is a big business. Apartment buildings are being constructed at a rapid pace and there aren't many multifamily properties available for sale. But Gino says you have to work hard to find the good deals - and that they can be found. He and Jake have learned that there is great value to be had in C and C+ level apartment communities, but you have to work hard to find them and work harder to make them work for you. The two of them typically look for "mom and pop" run properties that are poorly managed or in need of major improvements. Those are indications of potential profits from streamlining things administratively or adding value that supports slightly higher rents. Find out why Gino wants to stay in that apartment class and what he recommends to those wanting to step into multifamily investing, on this episode.

Why investors are risking it by pushing C+ properties to A property levels

Many multifamily investors are short-sighted in their goals, looking primarily to immediate increases in income. You can see it in the things they do to the Class C or Class B properties they purchase. They immediately start pushing to get into the Class A market so they can ask for higher rents by adding top-of-the-line improvements to the units, like granite countertops. There's a problem with that approach. They are dealing with an older building, which is a fact that cannot be changed. What happens when the market takes a downturn and tenants in the market for Class A units have to make a choice between their property and the newer development down the street? Gino says they will choose the newer property - and the investor who worked so hard to upgrade their property will be forced to accept lower rents and decrease their bottom line profits. There is a better way, and Gino describes how it works in this conversation.

Gino's trinity of success: focus, structure, discipline

One of the most appealing things about Gino is that he's a regular guy. He knows what it's like to work hard, work long hours, and do what needs to be done to pay the bills. But he has also experienced the success that many hard-working people long for. He says anyone can succeed - in life or in multifamily property investing - by applying a trio of things: focus, structure, and discipline. Listen to hear how Gino describes these three and to understand why he feels they are so important. You'll also learn how he applied them in his own life to achieve the incredible success he has.

In This Episode Gino Barbaro says...

• [2:04] Why Gino thinks he and his partner Jake did things backwards
• [5:02] Gino's transition from restaurants to real estate
• [8:01] Why Gino decided on multifamily investing over other forms of real estate
• [15:20] The synergy and success that came from finding a great partner
• [19:36] Decisions about who does what in the business - get it clear from the beginning
• [23:26] The genesis of Gino's podcast and what has come from publishing it
• [26:50] Using a coaching model to learn about the real estate business yourself
• [34:30] What Gino and Jake are doing differently now than they were in the beginning
• [41:58] The transferrable skills Gino learned in the restaurant business and uses today
• [45:40] The Trinity of success: focus, structure, discipline

Resources Mentioned In The Episode

• Bigger Pockets
• Joe Fairless
• Appfolio
• SureDeposit
• LeaseLock
• The Entrepreneur Operating System
• [email protected] - Learn to be an asset manager and Investor
• Bellwether Enterprise (sponsor) - contact Will Oldham [email protected]

Connect with Gino Barbaro

• www.JakeAndGino.com - Gino's website or Gino (at) JakeAndGino.com
• The Wheelbarrow Profits Podcast

Connect With Jonathan and Real Estate Launchpad

• To invest with me go to www.TwoBridgesMgmt.com/investors
• To learn from me go to www.MultifamilyLaunchpad.com
• Join my free Facebook community

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