How do real estate investors identify potential markets for multifamily investing?

 

Today, Jen and Stacy Conkey, two experienced real estate investors, discuss strategies for scaling up in real estate investing - especially in multifamily- such as looking at job and population growth to narrow down market searches, having a contingency plan, and going beyond one's local area for greater opportunities. They emphasize that teams can provide expertise and knowledge that an individual investor may lack but urge investors to build relationships with team members for successful investing. They suggest starting small with manageable deals before going deep into it, speaking confidently by using the word “we,” and having the right motivation (not wanting to get rich quick), sufficient time, and support from family or friends. Let's dive in!

 

 

[00:01 - 06:48] How to Build Wealth with Real Estate: The Remote Multifamily Investing Academy

• How to build wealth with multifamily real estate

The Remote Multifamily Investing Academy

• How to select markets and reasons why people fail in multifamily

• What flippers and single-family investors need to know to take real estate to the next level

 

[06:49 - 13:46] Digging Deeper Into Scaling and Multifamily Real Estate Investing

• Network is vital in real estate investing, no matter the asset class or strategy

• The misconception that people need to touch, see, and feel real estate to invest

• Look at properties from a perspective of what if things hit the fan and have a contingency plan

• In-person market due diligence is essential for boots-on-the-ground experience

 

[13:47 - 20:09] How to Acquire Your First Multifamily Property

• How to lead teams to identify the best possible team in a market

• Data-driven decisions and use of technology to have eyes on the property

• Build relationships with team members motivated by money and grow wealth together

• Educate yourself and prepare for conversations

 

[20:10 - 26:26] The Key to Real Estate Success is Growing Your Network

• Use the word 'we' when talking to people and practice in a market you're not planning on investing in

• People fail in real estate due to wrong motivation, wrong expectations, lack of time, and lack of support

• Mastery takes time, and people should not jump into bigger buildings without understanding what they're doing

• The significance of joining networks and growing them

 

[26:27 - 34:42] Closing Segment

• Best investment: Joining networks and masterminds

• Worst investment: A motel that required staff and an understanding of seasonality

• Most important lesson learned: Due diligence and surrounding yourself with people playing at a higher level

 

 

Quotes:

 

"Anytime you're in a market, you're looking at things, filtering everything through your experience, whether positive or negative. And that might have absolutely nothing to do with how the real estate will perform." - Jen & Stacy Conkey

 

"We all make decisions based on emotions. That's where we're naturally drawn. But when you pull yourself, and you have that distance, you look at the numbers, if they don't pencil out, you're going to be less inclined to be emotionally attached to the experience you had while you were there." - Jen & Stacy Conkey

 

 

Connect with Jen & Stacy:

 

Facebook: Apartment Investing with Jen & Stacy

Website: rmfiacademy.com

 

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

 

Please leave a review and help others escape Wall Street and build wealth on Main Street!

What does it take to scale up a high-volume real estate wholesaling business?

 

TJ Kosen shares his experience building a thriving real estate wholesaling company doing hundreds of deals per year. He provides insights into scaling up through hiring the right people, investing in marketing and leads, and developing processes to repeatedly close transactions.

 

TJ has been in the market since 2006. He has owned and managed residential real estate from 1 to 112 units in addition to a residential Real Estate note portfolio and self-storage facilities. His Dallas-based investment company TNT Property Solutions moves a high volume of distressed and retail-grade residential properties in the Texas and Florida markets. TNT is a tight-knit DFW-based company that sources direct-to-seller distressed properties, recapitalizes them, and either holds them in their portfolio or positions them for resale on either the retail, wholesale, or seller finance markets.

 

We don’t believe in a “one-size-fits-all all” business model. We believe members and students should build the business they want - to suit their lifestyles and goals. To that end, we facilitate their success through a robust community whose guiding principle is “brutal honesty” when it comes to business development.

 

[00:02:18 - 00:03:45] Opening Segment

TJ bought his first 112 unit apartment complex off Craigslist in 2006, just before the 2008 housing crisis caused him to lose millions.

He restarted with house flipping in San Diego before moving to Texas to scale up his volume.

 

[00:03:45 - 00:05:35] Transitioning from a Dealer to Building a Business

TJ disliked talking to sellers, so he started hiring people to do it instead.

He realized he had to shift from a transactional dealer mindset to building out the business.

This involved developing processes that could be repeated and finding employees passionate about acquisition.

 

[00:05:35 - 00:08:21] Generating High-Quality Leads at Scale

TJ uses PPC, direct mail, referrals, and targeted Facebook ads to drive leads.

PPC provides high-intent inbound leads that convert quickly. It's expensive but optimized over 5+ years.

He adds team members only after increasing leads to ensure their success.

[00:08:21 - 00:10:18] Coaching Employees from Junior to Senior Roles

New hires start assisting on calls before taking the lead to build confidence.

Inbound leads require closing fast, so junior team members are coached to convert high-intent sellers.

This training helps transition them into fully independent roles.

[00:10:18 - 00:12:37] Transitioning from Deal Focus to Process Focus

TJ doesn't worry about margins on lower-profit deals. He cares about repeating the process.

This means focusing on marketing costs, conversion rates, and closing costs rather than profit per deal.

Empowered employees can negotiate both low and high-profit deals effectively.

Best deal: His primary residences with more than 1 Million in Equity

Worst deal: Buying two apartment complexes right before the 2008 financial crisis 

Top lesson learned: Hitting a stress limit is a sign you need to hire and delegate tasks to others.

 

Quotes:

 

"I didn't like talking to sellers. Just, they bummed me out. I mean, you're motivated by two things, right? Pain or pleasure. And the pain of talking to sellers was worse than the pain of having to pay people to talk to sellers." - TJ Kosen

 

"Invest in people because yeah, just invest in people. That's the only way to get out of doing all the stuff yourself. It's going to be a headache. It's going to be expensive. It's going to be stressful. But, once you hit a certain stress level, just doing more stuff, it doesn't actually provide more stress. It just means you prioritize what's actually important." - TJ Kosen

 

Connect with TJ:

 

Instagram: https://www.instagram.com/tjkosen/

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

Real estate investors! Are you ready for the massive regulatory change coming on January 1st, 2024?

Let's talk about what's coming. Taylor also covers something that's been troubling him lately.

The article we're discussing: https://www.wolterskluwer.com/en/expert-insights/real-estate-considerations-for-boi-reporting-requirements

FinCEN's FAQ: https://www.fincen.gov/boi-faqs#C_2

The 23 Exemptions: https://www.wolterskluwer.com/en/expert-insights/the-23-exemptions-from-the-corporate-transparency-act

What would you do if you suddenly lost your job before reaching financial freedom?

 

This episode of The Passive Wealth Strategy Show features host Taylor Loht interviewing real estate investor Paul David Thompson. Paul shares his journey to financial freedom through real estate investing, and how he accelerated his path when he unexpectedly lost his high-earning corporate job. He provides advice for busy professionals on getting started with real estate investing while working full-time, and the key steps to take if you find yourself laid off before reaching your financial goals.

 

Paul is a Full-Time Real Estate Investor, top-selling author, coach, and someone who lends money for real estate projects. He helps both new and experienced investors understand how to make deals in real estate. But his bigger mission is to help people who want to escape boring jobs and find success in their own businesses.

 

 

(00:03:05 - 00:05:50) Opening Segment

Start small to gain competence and confidence

You can make progress while working full-time by putting in extra hours on nights and weekends

Attend conferences and seminars to accelerate your real estate education

 

(00:07:12 - 00:09:56) Dealing with an Unexpected Layoff

Have an alternative income stream in case you lose your job

Build assets that generate residual income, not just trading time for money

Commit fully once you choose real estate as your path

 

(00:14:00 - 00:16:49) Accelerating Financial Freedom

Use extra time to find and close more deals

Invest retirement accounts in real estate

Earn money from multiple strategies like flipping, rentals, and education

 

(00:16:49 - 00:19:27) Running Your Real Estate Business

Hire experienced professionals to handle important tasks

Focus your time on the highest-value activities

Get feedback from your team to improve decisions

 

(00:21:49 - 00:29:26) Tips for Busy Professionals

Make use of lunch breaks, nights, and weekends to work on deals

Attend conferences and seminars to accelerate learning

Get family support for the time commitment

Best deal: His first investment

Worst deal: Due to overconfidence, Paul overpaid for a property in his hometown.

Top lesson learned: Owning equity and creating not linear exchanges of value, but parabolic exchanges of value.

 

Quotes

 

"The first deal broke the seal and got me started. It gave me the confidence boost I needed." - Paul David Thompson

 

"Think exponentially and create parabolic exchanges of value, not linear ones." - Paul David Thompson

 

Connect with Paul:

Website: https://pauldavidthompson.com/

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

 

Please leave a review and help others escape Wall Street and build wealth on Main Street!

Invest with Taylor at www.investwithtaylor.com

Open your self directed IRA at www.passivewealthstrategy.com/rocket/

Julie Holly is a successful real estate investor with experience in multifamily and ground-up development. She is the founder of Three Keys Investments and is passionate about making a positive impact in the communities she invests in. Summary: Julie Holly shares her journey into the assisted living space and how she approaches due diligence on opportunities, teams, and markets. She emphasizes the importance of focusing on the people first, including the employees and residents of assisted living facilities. Julie discusses the scale of employees in assisted living compared to multifamily and highlights the need to keep employees happy and retain quality staff. She also explains how she adds value to assisted living facilities by optimizing the business side, negotiating contracts, and improving the quality of care. Julie shares her approach to building relationships with partners and vetting them before entering into deals. She also discusses the challenges of investing in markets outside of her local area and the importance of physical due diligence. Julie concludes by emphasizing the need to trust your instincts and focus on the present reality rather than potential future outcomes.

Key Takeaways:

Assisted living facilities require a larger number of employees compared to multifamily properties.

Due diligence in the assisted living space involves evaluating the value of the real estate, the business, and the human collateral.

Building strong relationships with partners is crucial and should involve getting to know them for at least a year before entering into deals. Physical due diligence in remote markets requires time, travel, and careful evaluation of the asset and market.

Adding value to assisted living facilities involves optimizing the business, negotiating contracts, and improving the quality of care. Trust your instincts and focus on the present reality rather than potential future outcomes.

Quotes:

"I don't like to take on anything new into the portfolio unless we have people that are experienced leading the charge." - Julie Holly

"For every resident in an assisted living facility, you're picking up a staff of a minimum of 80 people." - Julie Holly

"Trust your instincts. If something feels off, something's probably off." - Julie Holly

What untapped real estate niches could offer high returns with less competition?

 

In this episode, host Taylor Loht interviews Neil Timmins, a real estate investor who focuses on industrial properties in the Midwest. Neil shares his journey from a successful real estate agent to getting into single-family and then industrial investing. He provides an overview of how industrial real estate works, what to look for in deals, and the benefits of this overlooked niche.

 

Having completed hundreds of Fix & Flips, Wholesales, Wholetails, Novations, and Owner-Financed deals, Neil longed to quit forfeiting time for dollars. After building a portfolio of single-family rentals to produce passive income, he found the strategy to be anything but passive.

 

Neil, however, didn’t go looking for his first commercial deal, he actually stumbled into it. Since then, he has refined the process of analyzing and buying commercial properties that produce stellar cash flow.

 

Neil has been involved in over $300,000,000 in real estate transactions. While his holdings in commercial asset classes include apartments, offices, mobile home parks, and self-storage units, his passion is industrial property. Neil now has verticals in residential real estate, multiple commercial asset classes, brokerage, publishing, and this successful podcast.

 

[00:00 - 04:45] Becoming a Real Estate Agent and Getting Burnt Out

Neil started as a real estate agent and became very successful, but the lifestyle was unsustainable

He decided to leave and focus on investing instead

Realtors can get burnt out trying to constantly prospect for new clients, investing provides more control

 

[04:45 - 07:15]Getting Into Single Family Investing

Neil got into fixing/flipping and buying rentals after leaving his brokerage

He built up a portfolio of around 40 single-family properties

Single-family investing was a natural transition from real estate agent, portfolio was built over time

 

[07:15 - 10:15] Pivoting to Industrial Real Estate Investing

A broker presented an off-market industrial deal 5-6 years ago

The set-and-forget nature was appealing compared to management-intensive single family

Industrial caught Neil's attention due to passive nature, he still owns other commercial asset classes

 

[10:15 - 20:00] Industrial Real Estate Investing Works

Look for properties from 20k - 100k square feet, with features like dock doors and clear ceiling heights

Class B/C+ properties built 15-40 years ago offer value-add opportunities

Industrial is different than multifamily - need creditworthy tenants on long-term leases

 

[20:00 - 23:00] Reaching Financial Independence

Neil can be very selective and doesn't have to invest just to make money

Gets to choose who to work with and focus on helping other realtors

Money serves a purpose - to create lifestyle freedom

 

[23:00 - 25:00] Getting Started in Industrial Real Estate Today

It's an overlooked niche with huge opportunities

Best deal: Medical offices.

Worst Deal: A Dome Single Family.

Top Lesson learned: Get a coach and educate yourself as much as you can.

Quotes:

-"Real estate done really well is boring. It is literally get an asset, follow this process to put it in place so that thing just generates cashflow." - Neil Timmins

 

-"Get an educator, get a coach, get a trainer, get a partner, get somebody who knows more than you can shortcut your path, your success. You're going to pay them or you're going to pay the street. And the street is more expensive." - Neil Timmins

 

Connect with Neil:

 

Website: https://legacyimpactinvestors.com/

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

 

Please leave a review and help others escape Wall Street and build wealth on Main Street!

How can you successfully tackle distressed real estate investing when so many others fail?

 

Noel Parnell shares his journey from getting started with distressed real estate investing to now owning over 400 units. He provides specific tactics on how he was able to rehab properties down to the studs, manage contractors effectively, and scale his portfolio.

 

Noel Parnell, a Philadelphia native, has been interested in real estate for as long as he can remember. Always a visionary, Noel recognized an entry point into the field that he had once dreamed about during the peak of the 2007 Great Recession. What was a loss for some, was the launchpad for a dynamic and fulfilling career. Noel’s initial work was focused on rehabilitation. Relying on his strong work ethic, an intimate knowledge of his hometown and an innate business savvy, Noel acquired severely distressed properties and transformed them into beautiful homes.

 

During this period, Noel’s childhood interest changed into his passion. He became a dedicated student of the business of real estate, learning both through traditional study and hands-on practical experience. To date, Noel has engaged in over 100 real estate transactions in the United States and abroad. He has amassed a portfolio of over $6 million, which includes undeveloped/underdeveloped land, single and multifamily units as well as commercial properties. Prior to the takeoff of his real estate career, Noel worked as a scientist for GlaxoSmithKline as well as in program management for several prominent pharmaceutical companies. He was a member of the 2008 Olympic team for the US Paralympic Team. He is an avid runner, swimmer, cross fitter, jiu-jitsu and Muay Thai athlete. Noel has successfully leveraged the discipline, creativity and organization skills developed during these experiences to inform his current business strategy.

 

(00:03:10 - 00:05:53) Opening Segment

 

Noel was motivated to invest in real estate after losing his job in the 2008 financial crisis.

He started knocking on doors of distressed properties, trying to help homeowners avoid foreclosure.

It took 3 years of persistence before he got his first deal.

 

(00:05:54 - 00:09:25) House Hacking and Learning Construction

 

Noel house hacked a distressed property he bought from a retiring landlord.

A bad contractor experience motivated him to learn construction himself.

He studied real estate and construction books at the library to gain knowledge.

 

(00:09:26 - 00:16:56) Managing Contractors and Crews

 

Noel takes accountability when contractors underperform instead of blaming them.

He learns about his crew's culture and schedules to lead effectively.

Following detailed processes and check-ins keeps projects on track

 

(00:16:57 - 00:22:29) Pivoting from Distressed to Multifamily Investing

 

Noel fixed up about 95% of his 136 doors.

He pivoted to multifamily to increase net worth faster.

He still buys distressed properties for his son's portfolio.

 

(00:22:30 - 00:29:00) Closing segment

 

Best deal: A 20 unit complex in Houston, Texas

Worst deal: A house flip

Top lesson learned: Never accept the No from someone who doesn’t have the power to tell you Yes.

 

Quotes:

 

"Never accept the No from someone that doesn’t have the power to tell you Yes." - Noel Parnell

"When contractors underperform, it's on me to hire them." - Noel Parnell

 

Connect with Noel:

 

Website:

https://crowncapitalcorp.com/

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

 

Please leave a review and help others escape Wall Street and build wealth on Main Street!

Investing with Taylor at www.investwithtaylor.com 

Maria Zondervan is a former wildlife biologist who transitioned into real estate investing and entrepreneurship. She started investing in real estate in 1996 and slowly built up her portfolio while working as a wildlife biologist. Eventually, she decided to leave her day job and focus on real estate investing full-time. Maria's motivation for building wealth through real estate was to secure a future for her son, who has autism.

In addition to her real estate investments, Maria also co-owns a franchise business, which has provided her with additional income and opportunities. She emphasizes the importance of networking and surrounding yourself with the right people in order to succeed in real estate investing. Maria also highlights the significance of property management and finding the right property manager to ensure the success of your investments.

Key Takeaways:

Maria Zondervan transitioned from being a wildlife biologist to a full-time real estate investor and entrepreneur.

She started investing in real estate in 1996 and gradually built up her portfolio while working her day job.

She emphasizes the importance of networking and surrounding yourself with the right people in order to succeed in real estate investing.

Property management is a crucial aspect of real estate investing, and finding the right property manager is essential for success.

Quotes:

"I started letting those folks invest in the things I was investing in. Like, they didn't know how to analyze the properties and all that kind of stuff. So I said, well, invest alongside me." - Maria Zondervan

"I'm one of those people that just always follows my passion. My passion was just calling me in that direction." - Maria Zondervan

"Getting the property management aspect right is the number one thing. So that's probably the lesson I've learned the most." - Maria Zondervan

Find her at www.bluevikingscapital.com

How can high-earning business owners take advantage of real estate investing tax benefits?

 

Michael Guthrie, a successful ATM business owner, made the shift into multifamily real estate investing to leverage tax advantages like depreciation. He and his wife restructured their business so she remained active while he pivoted to real estate and obtained real estate professional status.

 

Michael and Samantha Guthrie have successfully owned and operated a multimillion-dollar automated teller machine distributorship, Automated ATM Solutions, Inc., for more than 25 years, and currently run over 8000 ATMs nationwide, providing a residual income stream used for multifamily investing. They have 23 years of real estate investment experience in single family, multi-family and commercial real estate. Their additional experience includes real estate sales, mortgage brokering, and property management of apartments and single-family homes. After realizing the advantages of multifamily investing for themselves, they have made it their mission to provide others with an avenue to passive income.

 

[00:02:20 - 00:03:07] Opening Segment

Michael and his wife started out buying single-family rentals, acquiring 7 properties within 6 months.

They owned these for 10 years before pivoting into multifamily real estate investing.

 

[00:03:20 - 00:04:11] The Allure of Multifamily Investing

They discovered multifamily investing through a Tony Robbins program and were attracted by the tax benefits.

Multifamily allowed them to offset passive income from rentals with losses from multifamily partnerships.

 

[00:04:31 - 00:05:39] Restructuring the Business for Real Estate Professional Status

They restructured the ATM business so Michael's wife remained active in it and he exited.

This allowed Michael to qualify as a real estate professional and offset his wife's active income with his real estate losses.

 

[00:05:54 - 00:06:58] Avoiding the Tax Tail

Michael focuses on cash-flowing investments, not just tax benefits. Depreciation is a bonus.

He warns against choosing poor investments only for tax purposes.

 

[00:07:25 - 00:08:24] Qualifying for Real Estate Professional Status

Michael is a general partner on deals with substantial duties beyond capital raising.

This gives him the hours and material participation needed to qualify.

 

[00:08:44 - 00:20:41] Forming Multifamily Partnerships

Joined a mastermind with top real estate syndicators

Invested significant capital in multiple deals

Was later brought on as a capital raiser due to large investments

 

[00:20:50 - 00:27:00] Closing segment:

Best deal: A 50,000 deal that doubled in just 14 months.

Worst deal: A partnership with someone he really didn't know

Top lesson learned: Take your time and do your due diligence, but make a decision

 

Quotes:

 

"Our approach was to join a mastermind that of some of the top individuals that are actually out there syndicating deals. And that's how we got started putting money into deals as a limited partner." - Michael Guthrie

 

"If you choose not to decide you still have made a choice." - Michael Guthrie

 

Connect with Michael:

Website: https://pacificcapitalllc.com/

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

 

Please leave a review and help others escape Wall Street and build wealth on Main Street!

Investing with Taylor at https://www.passivewealthstrategy.com/join-the-investor-club/

Start your Self Directed IRA at https://www.passivewealthstrategy.com/rocket/

In this episode, Maria Quattrone shares her insights and experiences in building successful teams in the real estate industry. She emphasizes the importance of teamwork and the need to adapt to difficult market conditions. Maria discusses her screening process for hiring team members and the key qualities she looks for in candidates. She also highlights the importance of perseverance, work ethic, and a positive attitude in achieving success. Maria shares her own journey in the real estate industry and the lessons she has learned along the way.

Key Takeaways:

Building a successful team requires screening candidates for qualities like perseverance and a positive attitude.

Work ethic and persistence are crucial in the real estate industry, especially during challenging market conditions.

Enjoying the journey and having perspective are essential for long-term success in business and investing.

Quotes:

"You have to work as a team. Our agents are our agent partners. They're not our clients."

"You have to put the time and effort in. Work works."

"Enjoy the journey and have perspective. We live in a country with more opportunities to make your dreams happen than anywhere else in the world."