As the Federal Reserve is expected to keep interest rates elevated through 2024, investors face challenges as they come out of loan periods that began when the market was high, and cap rates were low. This has caused transactional velocity and financing costs to go up, potentially creating a housing undersupply issue. Adam Finkel shares his experience investing in commercial real estate, providing insight into debt and equity markets and how lenders deal in this current market cycle. He also advises finding the best capital sources, bringing more equity, looking for different equity sources, and focusing on deals with longer-term time horizons. Listen to this informative episode to learn more about what lenders look for when considering an investment, how to act with integrity when conducting business, and what investors should consider when matching their financing to their time horizon.

 

[00:01 - 06:58] Dealing with Rising Interest Rates in Commercial Real Estate: How Investors are Adapting to the New Market Cycle

Interest rates have been kept low by the Federal Reserve to support a healthy economy

The Federal Reserve has recently increased interest rates to fight inflation

Banks and private equity groups are having a hard time valuing assets

Investors are dealing with higher rates by bringing more equity to the table or looking for different equity sources

 

[06:59 - 15:30] Investors Face Challenges in a Changing Interest Rate Environment

Investors are facing challenges due to the current market environment.

Options for those with loans coming due include bringing equity, getting a lower-leverage loan, or adding a supplemental loan.

Those with variable interest rate loans can look to lock in fixed-rate debt

The Federal Reserve is expected to continue increasing rates through spring and potentially into 2024

 

[15:39 - 24:53] Commercial Real Estate Investing: Risk and Reward in an Era of Reduced Liquidity and Increased Focus on the Sponsor

Commercial real estate as an asset class has become riskier

When investing, return is always a balance of risk and reward

Developers are finding it challenging to find capital for their projects

When looking at a business plan or underwriting package for a new acquisition, lenders focus on the sponsor's experience, market studies, net worth, liquidity, and team members

Lenders are looking at the borrower and not just the property when assessing a loan

 

[24:54 - 31:13] Closing Segment

The best investment was a value add a multi-family project with a 3.5x return in 2.5 years

The worst investment was in a condominium fix and flip with an inexperienced partner

See the links below to connect with Adam

Connect with Adam through www.TowerCapLLC.com and [email protected]. 

 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your terms.

Join our Passive Investor Club to access passive commercial real estate investment opportunities.

LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or clicking here to listen to our previous episodes.

 

Quotes:

"The old adage of 'real estate, location, location, location' now it's really sponsor, sponsor, sponsor." - Adam Finkel

Taylor interviews Trevor Crow, an experienced attorney who specializes in real estate syndication law. They dive into what institutional investors look for when investing as a limited partner in a syndication deal and how Main Street investors can apply those lessons and strategies to their investments. From understanding the typical size of deals that Trevor works on, ranging from one-off syndicated deals to packages of 16 hotels at a time, to the negotiation process between individual investors and larger capital providers, this conversation offers valuable insight into the potential risks and protections that passive investors need to be aware of. Listen in as they discuss key factors such as fees and decision rights, removal of the manager for gross negligence or fraud, arbitration agreements, and bankruptcy of the manager - all so you can make sure you're protected when investing in a syndication deal!

 

[00:01 - 05:01] Digging into Institutional Real Estate Investors: What Big Guys Look for in Syndicated Deals with Trevor Crow

Trevor discusses his experience working with institutional investors and what they look for when investing as a limited partner in real estate Syndications

How Main Street investors can apply the strategies of institutional investors to their investments in real estate syndications

Deals range from first-time syndicators to 150-million-dollar real estate funds

Negotiations are different depending on the size of the deal

 

[05:02 - 14:31] Negotiating Terms of Deals with Large Capital Providers: Fraud, Loss of Promote, and Removal of Manager

LP-sided document vs. sponsor-favorable documents

Major decision section requiring approval for certain actions

Negotiation of fees and distribution waterfall

Tiered structure to ensure capital provider receives money along the way

Removal of manager and loss of promotion due to fraud, gross negligence, reckless conduct, etc.

 

[14:32 - 21:55] Protecting Yourself as a Passive Investor in Syndication Deals

Fraud, gross negligence, breach of contract, and taking unauthorized actions are key issues to look out for

The bankruptcy of the manager can lead to a loss of promote

Arbitration agreements should be tailored to the situation and may not always be faster or cheaper than court

Check if there are any major decision rights granted

Be aware that retail investors may have less power in these situations

 

[21:56 - 27:01] Closing Segment

What is the best investment you ever made: buying a town in 2007

See the links below to connect with Trevor

Connect with Trevor through [email protected], or visit www.DoidaCrow.com. 

 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your terms.

Join our Passive Investor Club for access to passive commercial real estate investment opportunities.

LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or clicking here to listen to our previous episodes.

Quotes:

 

"I've learned that the network is a much better way of getting out there and finding qualified clients that are good fits." - Trevor Crow

 

"Getting rid of risk, but make sure that it's not fully written in this indicator's favor, and you're just up a creek without a paddle." - Trevor Crow

Taylor is joined by Robert Preston, a former Marine Pilot who now invests in RV parks. Robert shares his incredible journey, starting with very little money and time while serving in the military, getting into wholesaling and flipping houses, transitioning to single and multifamily real estate investing, and finally, successfully investing in RV parks. He dives into his strategies for finding and managing these deals, as well as why they provide an opportunity to build wealth. Robert also provides advice for service members on how to use their credit from a government paycheck to invest. This conversation highlights the potential of RV park investments and reminds us that having the right people on board can make a big difference in our investments. Tune in to learn how Robert went from flipping houses to investing in commercial real estate, to apartment investing, and eventually transitioning to RV parks - you don't want to miss it!

[00:07 - 08:01] Opening Segment

Robert Preston is a former Marine Pilot who started investing in real estate while serving in the military

He has transitioned from flipping and wholesaling to single and multifamily real estate investing

VA loan is a great way for service members to get into real estate investing with no money down

Flipping was an initial way to generate capital to invest

Rental property is a great way to generate passive income

 

[08:02 - 16:54] Leveraging Military Credibility to Invest in RV Parks: A Journey from Flipping Houses to Managing Private Parks

Transitioned from flipping houses to commercial real estate and then to apartment investing, then RV parks

Realized how much money could be made in RV parks and the lack of government intervention

Had banking credibility from military service which helped when becoming self-employed

RV park management is a huge barrier to entry for investors

 

[16:55 - 23:59] Navigating the Unique Challenges of RV Park Management for Higher Returns

RV parks require more management expertise than other asset classes

RV parks require hospitality, customer service, and daily operations

An internal property management system was built to manage RV parks

Hospitality expenses may increase but maintenance and repair expenses are lower

The target pad count or gross revenue is roughly 75 to 100 pads or sites and $500,000 of gross revenue

 

[24:40 - 28:16] Closing Segment

The best investment Robert has made is his motorhome

The worst investment Robert has made was a multi-family asset that ended up breaking even

The most important lesson Robert has learned in business and investing is to have the right people on your team or in your deal structure

Connect with Robert by visiting www.ClimbCapital.com. 

 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your terms.

Join our Passive Investor Club for access to passive commercial real estate investment opportunities.

LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or clicking here to listen to our previous episodes.

Quotes:

 

"One of the things that are extremely powerful from a real estate perspective is to remember the VA loan itself is a phenomenal way just to get started." - Robert Preston

 

"It's important to leverage that, you know, four or five years preemptive to when you get out. Because when you become ‘self-employed’ or you don't have a paycheck anymore if you have not built that credibility and net worth, you're shooting yourself in the foot.” - Robert Preston

Join us as we speak with Glenn Gonzalez, a maintenance man-turned-millionaire who has invested in multi-family real estate for the past 25 years. From managing a 60-unit apartment complex to building his portfolio and growing it to 6,000 units, Glenn shares his experience, insights, and strategies on how to find and finance deals in the current market. He explains his reasons for selling off his portfolio, including taking advantage of lower cap rates and increasing rent prices. Hear some of his strategies such as buying partnership shares from existing LLCs and finding distressed owners in need of financing. Additionally, he shares details on how he and his business partner are conservative in their underwriting and how they are searching for construction financing. He also mentions his favorite book and a team member who has helped them stay organized throughout their business journey. Get ready to learn about Glenn’s success story in multi-family real estate investing and gain valuable knowledge on ways to make successful investments!

[00:01 - 06:41] Glenn Gonzalez: From Maintenance Man to Multimillionaire Real Estate Investor

Glenn Gonzalez is the maintenance man who became a millionaire through multi-family real estate investing

He started in the industry 25 years ago as a maintenance man while he was going to college

He transitioned to a part-time manager and part-time maintenance at a 60-unit apartment complex

He worked for equity Residential, Pacific Property Company, and Marcus Mill chap

 

[06:42 - 15:30] Navigating Difficult Market Conditions: How One Investor is Positioning for Success

Deals were picked over and cap rates were 3-3.25%

Cash on cash return of 9% from day one

Cap rates have not adjusted with interest rates

Looking for deals with bridge loans that can't refinance

Structuring deals where investors can cash out their shares

 

[15:31 - 23:44] Obsidian Capital's Strategies for Conservative Underwriting and Securing Construction Financing

Looking for deals where current owners had shorter-term financing at lower interest rates

Structuring deals to buy out existing partnerships, cover the debt, or make a deal work

The strategy of bringing investors together to pay cash for a property

Underwriting conservatively with no rent increases and significant reserves

Building properties from the ground up in the Austin area

Taking advantage of other people's failed exit strategies

Building new properties from the ground up for less than open market prices

Holding investments for 10 years to ride out any market disruptions

 

[23:45 - 30:22] Closing Segment

Favorite book: The Bible and Maintenance Man to Millionaire

Essential tool/team member: Transaction Manager Vivi, who is now a partner in the deals

Connect with Glenn by visiting www.ObsidianCapitalCo.com  

 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your terms.

Join our Passive Investor Club for access to passive commercial real estate investment opportunities.

LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or clicking here to listen to our previous episodes.

 

Quotes:

 

"Most of the people that are making a lot of money in the multi-family business were the ones that owned it, not the ones that managed it." - Glenn Gonzales

 

"My job is to make money for other people. And when they make money, they pay me because they're happy. That's what I do." - Glenn Gonzales

 

"We like to create an environment in our office where people come to work because they like to come to work, not because they have to come to work." - Glenn Gonzales

Join Taylor Loht as he interviews 23-year veteran real estate investor, Peter Vekselman. With 3,600+ deals to his name and financial freedom achieved, Peter shares his story and provides insight into how he went from losing it all to becoming a successful real estate investor. He recounts his mistakes of trusting the wrong people and emphasizes that learning from those mistakes has been key to his success. Learn the importance of building a team when it comes to real estate investing, how to work with people, how to scale up by having the right people in the correct positions, and how to invest in others even when there is little money available. Peter also explains his partner-driven investing model which includes providing training and leads as well as handling the back office. This model aims to reduce the low success rate of real estate investors by providing them with all of the necessary tools and resources needed to be successful. Tune in for this engaging conversation about real estate investing!

[00:01 - 08:05] Peter Vekselman's Journey from Stumbling to 3,600 Deals

Peter Vekselman has done 3,600 real estate deals through a partner-driven investing model

Peter's journey started as an entrepreneur and he stumbled and lost it all before getting back on track

Peter's biggest mistake was trusting the wrong people in the real estate business

 

[08:06 - 15:11] How to Build a Team and Scale Your Real Estate Investing Business

Mistakes made: trusting the wrong people and diving too hard right at the beginning

The first hire should not be a secretary; focus on developing marketing infrastructure

Short-term pain, and long-term gain when making early hires

Buying the right deals is important, but connecting with sellers and putting deals together is key to making money in real estate.

 

[15:12 - 22:41] Unlocking the Mystery of Real Estate Investing: How Partner-Driven Strategies Can Help You Achieve Success

Real estate has an extremely poor success rate of only 5%

Most people don't know how to bring on the right people, train them, or know who to bring on board

One good deal can make a big impact in the beginning stages

Partner-driven real estate investing solves the mystery of why the industry has such a low success rate.

The strategy involves getting trained, generating leads, handling back office tasks, constructing, and marketing

 

[22:42 - 28:13] Closing Segment

The importance of staying in your lane and scaling that lane

The best investment you can make is in relationships

The most important lesson learned: it's not about working hard or getting good grades, it's about aligning yourself with successful people.

Connect with Peter Vekselman through Instagram

 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your terms.

Join our Passive Investor Club for access to passive commercial real estate investment opportunities.

LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or clicking here to listen to our previous episodes.

Quotes:

 

"Making money is a no-brainer. Being successful is just part of the trait. I think we all kind of have our own set of circumstances or have our own set of issues." - Peter Vekselman

 

"It's short-term pain, long-term gain, and, I would almost argue the point that you have to cut back if you know how to bring the right people on board." - Peter Vekselman

"The shortest shortcut to success is the ability to align yourself with more successful people." - Peter Vekselman

 

“It's not just about money. It's about time, it's about lifestyle, it's about control.” - Peter Vekselman

We hear from Geoffrey Buscho as he shares his experience of buying a carwash with an SBA loan. He reveals how he found the deal, negotiated it, and explains the advantages and disadvantages of using an SBA loan for real estate investments. We'll also hear about the complexities of a first-time commercial property purchase and securing an SBA loan. Geoffrey will cover the three different entities involved (the primary lender, CDC, and SBA) and the timeframes associated with each. Plus, he'll discuss the fees associated with an SBA loan, as well as emphasize the importance of researching lenders ahead of time to better understand the fee structure and timeline before entering a contract. Finally, Geoffrey will share his key takeaway from this experience - that no matter what you are doing, never take no for an answer and always be creative in finding solutions. Tune in to this episode to gain insight into how to invest in real estate with a non-traditional loan option - an SBA loan.

[00:01 - 06:54] Acquiring a Carwash with an SBA Loan

Geoffrey Buscho recently acquired a carwash with an SBA loan

The property was appealing due to its location, condition, and potential for passive income

Jeffrey is a new investor who pivoted from residential real estate investing to commercial real estate

He is active on Bigger Pockets and has invested over 150 million in multi-family and self-storage acquisitions

 

[06:46 - 13:16] Exploring the Benefits and Complexities of an SBA Loan for Real Estate Investment

Updated financials and interest rate fluctuations caused the third offer to be lower

SBA loans are chosen due to less risk for the bank and more favorable lending rates

SBA loans take longer to close and have fees associated with them

 

[13:17 - 24:40] Navigating the Complexities of an SBA Loan

The SBA loan process typically takes 75 days to close

Involves three entities: primary lender, CDC (certified development company), and SBA

Questions to ask at the beginning: who is the CDC and how confident are they in their ability to underwrite

Shop around for different SBA lenders to get an idea of fees, structure, timeline

 

[24:41 - 28:15] Closing Segment

Geoffrey’s best investment: a daily planner to increase productivity

Geoffrey’s worst investment: not applicable as all investments have yielded some benefit

Most important lesson learned in business and investing is to approach all investments with no expectations

 

Connect with Geoffrey through Facebook, and Bigger Pockets.  

 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your terms.

Join our Passive Investor Club for access to passive commercial real estate investment opportunities.

LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or click here to listen to our previous episodes        

Quotes:

"It has been extremely important to think very quickly, very critically, and very creative in how to solve problems. It's very easy that this deal could have been dead in the water if we didn't have some quick reaction.” - Geoffrey Buscho

Taylor welcomes Benjamin Fredericks, an experienced note investor and mortgage professional. They discuss Benjamin's unique approach to note investing and participating in the note space. Learn how Benjamin got his start by buying rental properties and then transitioning into buying properties in bulk at auction and selling them on terms of seller finance to create notes. He has a background in mortgages, which helps him understand how to underwrite credit and what to look for when creating notes. Find out how he focuses on C-level properties in working-class neighborhoods, providing opportunities for people who may not qualify for traditional mortgages. 

 

[00:01 - 05:50] Opening Segment

Benjamin Fredericks’s unique approach to investing and participating in the note space

Most of the properties he buys are C-level, working class neighborhoods in smaller towns in the Midwest

He creates notes by buying properties at auction in bulk and then selling them on terms seller finance

His approach involves underwriting borrowers who may not have 20% to put down or have had credit hiccups in the past

 

[05:51 - 13:35] Selling Notes in a Rising Interest Rate Environment: Understanding the Basics of Note Sales

Compliance with the Dodd-Frank Act is required

Returns on notes are typically between 20-50%, sometimes infinite

Notes can be sold in the secondary market

Buyers of notes are typically people with self-directed IRA funds

Rates for notes are typically between 9-10%

Payment history affects the value of a note in the secondary market

Rising interest rates have not impacted note rates

 

[13:36 - 19:20] Digging Into Partials: Exploring the Benefits of Investing in Real Estate Notes

Interest rate is a non-factor

Partials are an interesting way of practicing in the real estate space

Utilizing other people's money in deals through a joint venture or private money lenders

Making connections with note investors through events like Noteworthy and local Real Estate Investment Organizations (REIOs)

 

[19:21 - 23:34] What to Do Before Buying Properties

Physical due diligence of properties when buying online is minimal

Knowing how to do proper due diligence when buying a note

Maximizing the value of a note by having the right paperwork in the package

[23:35 - 29:20] Closing Segment

The biggest mistake for new note investors is not having enough education on due diligence and maximizing the value of notes

The worst investment is a lake lot that is a drain on finances every month

The most important lesson learned in business and investing is to stick to data, not drama

Connect with Benjamin by visiting www.NoteWorthyUSA.com 

 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your terms.

Join our Passive Investor Club for access to passive commercial real estate investment opportunities.

LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or click here to listen to our previous episodes         

 

Quotes:

 

"(The note space) is bad for the people that don't do good business, but it's great for the people that you know do. And I think it's nice because it's a lot easier to form relationships." - Benjamin Fredericks

 

"Sometimes the best deal you ever do is the one you don't do, and so just stick to the data, stick to your numbers, and if it fits your buy box, great. If it doesn't, don't worry about it." - Benjamin Fredericks

Are you looking to break away from the Wall Street Casino and invest in Main Street? In this episode, Taylor interviews Brendan Chisholm about his strategy for investing in distressed multi-family properties in Virginia, Georgia, and South Carolina. They discuss how to do due diligence on a property, including job and population growth, income growth, adjusting debt, and considering the cost of renovations. Brendan shares his story of transitioning into real estate after college and how he found more control over money than trying to “game” the stock market. He then dives into two specific deals that he was involved with and discusses in detail the process he used to give notice to tenants, renovate multiple units at once, and finance the deals. They also talk about using vacant units as storage instead of purchasing trailers within their cost analysis. Lastly, they share their thoughts on debt financing in today's market and how having a relationship with a debt broker was beneficial for them. Tune in now to learn more about how to make successful investments in distressed multi-family properties!

[00:01 - 07:12] Investing in Distressed Multi-Family Properties

Distressed multi-family properties are defined as those with below 85% occupancy and need renovations

The three properties owned by Brendan and his business partners are between 45 and 70 units in size

They focus on value-add, distressed multi-family deals in the Southeast Mid-Atlantic area

Deals are acquired off-market or through a broken sales process

 

[07:13 - 16:39] Refining the Process of Distressed Multi-Family Investing: Quantifying Renovations and Assessing Market Demand

Adding features such as granite countertops, new cabinets, stainless steel appliances, painting, milling, asphalt, barbecues, dog parks, and playgrounds

Following macro and micro trends such as job growth, population growth, and income growth

Quantifying the cost of renovations through the understanding price of cabinets, granite, and floorings

Using rent comp analysis to determine if there is a large enough delta between current rent and what can be achieved after renovation

Brendan’s deal was an apartment complex surrounded by single-family residential homes

Using Capax and Construction Trackers to match invoices to underwriting

 

[16:40 - 24:24] Navigating the Financing Challenges of Distressed Real Estate Deals

Providing notice to tenants for units that need fixing up

Making decisions when buying a property with distressed units

Giving move-out specials to tenants

Grouping units together to save on construction costs

Using vacant units as storage instead of purchasing additional trailers

Doing exterior work first to make interior decisions

 

[24:25 - 28:55] Closing Segment

Connect with Brendan through the links below

The most important lesson learned: work the numbers

Connect with Brendan by sending him an email at [email protected]. Also, visit www.BKCHolding.com and www.BrendanChisholm.com. 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your terms.

Join our Passive Investor Club for access to passive commercial real estate investment opportunities.

LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or click here to listen to our previous episodes         

Quote/s:

"You gotta work the numbers but you also gotta have, you also need to understand that a spreadsheet won't tell you the true numbers based on where you purchased the property." - Brendan Chisholm

Taylor welcomes Henry Washington, a real estate investor who scaled to financial independence with over 70 doors in just five years. Hear how Henry made the decision to become a successful real estate investor and achieved his goal within 90 days by leveraging his network, borrowing from 401Ks, and positioning himself for success. We hear all about the challenges new investors face in real estate and the advice to focus on finding a good deal and leading with service. Learn how providing value and helping others can help you stand out among other investors and how focusing on learning what a good deal looks like in your market can help you find success. Tune in now to get inspired by Henry’s story and learn strategies for becoming a successful real estate investor!

[00:01 - 08:10] Opening Segment

Henry Washington scaled to financial independence through real estate with over 70 doors

Started his journey by getting his financial house in order and saving money

Realized the importance of owning real estate for cash flow, appreciation, passive income, and generational wealth

 

[08:11 - 13:55] How One Man Achieved Financial Freedom Through Real Estate Investing

How Henry decided to become a successful real estate investor

Surrounded himself with successful investors and attended meetings consistently

Introduced himself as an investor to everyone

Found first deal through a friend who needed to sell a property quickly

 

[13:56 - 21:08] Using Mindset and Networking to Scale Business

Changing your mindset helps you position yourself for opportunities

Mindset does not do all the work for you, it just sets you up to take advantage of opportunities

Figuring out how to buy a house without a real estate agent 

Leveraging the network to find the money for a 15% down payment

Borrowing against 401K pre-tax and tenants paid back the loan

 

[21:09 - 26:32] Finding Good Deals and Lead with Service to Stand Out as a New Investor

Real estate can be overwhelming for new investors due to its flexibility and multiple exit strategies

Focus on finding a good deal and buying it, as that is the lowest common denominator for success in real estate

Lead with service by offering to help successful people in networking events without being asked

Provide ideas on how you can help rather than asking someone to give you something to do

Offer what you can do instead of asking a busy person how you can help them

 

[26:09 - 26:33] Closing Segment

What is the best investment you’ve ever made?Buying 8 units early on

What is the worst investment you ever made?Buying 12 units because they looked good on paper

What is the most important lesson you've learned in business and investing?The real estate business is a people business

See the links below to connect with Henry!

Connect with Henry through Instagram, or visit www.HenryWashington.com. 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your own terms.

Join our Passive Investor Club for access to passive commercial real estate investment opportunities.

LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or click here to listen to our previous episodes         

Quotes:

 

"Put the blinders on and don't do anything else until that's what you're good at, then you'll get to figure the rest out along the way." - Henry Washington

 

“It's that your mindset helps you put yourself in a position to be ready to take advantage of the opportunities when they come.” - Henry Washington

Taylor Lot and Ashley Tison dive into the world of Opportunity Zones and discuss the advantages of investing in these areas. From tax reductions to a step up in basis to fair market value, Opportunity Zones provide an incredible opportunity for real estate investors. We also hear Ashley's story of how his investment in a mobile home park allowed him to launch a gun company and pursue impact investing, as well as gain valuable education from it. They provide advice for those wanting to get involved with Opportunity Zones and offer helpful tips on how to get started. Tune in now to learn more about this amazing program and how you can benefit from investing in Opportunity Zones.

 

[00:01 - 08:14] Opening Segment

Opportunity Zones was created by the Tax Cut and Jobs Act of 2017

If invested for a certain period, investors can reduce taxes paid on those gains in 2026

Step up and basis to fair market value eliminates capital gains and depreciation recapture

Tax-free compound interest coupled with cost segregation and bonus depreciation is the ninth wonder of the world

 

[08:15 - 17:18] Invest in Main Street America with Generational Wealth Through Opportunity Zones

Opportunity Zones is still in effect until December 31st, 2026.

Legislation is pending to extend the program out for two years till December 31st, 2028

Investors can avail themselves of a 15% reduction in taxes if they invest for seven years before the expiration date

Step up and basis to fair market value can be availed of up till December 31st, 2026

Investors have 25 years from now to hold onto these assets and let them grow tax-free

To get the step up and basis, investors need to transact with a third party or sell

 

[17:19 - 27:38] Salvaging Failed 1031 Exchanges with Opportunity Zones: A Powerful Distinguisher for Estate Planning

Opportunity Zones do not require identifying opportunities before selling

Investment can be in real estate, operating businesses, startups, or businesses outside of the zone

Exchanges must identify opportunities before selling and applies toward a lifetime exemption amount

Opportunity Zones apply whatever amount initially invested against the lifetime exemption amount

Opportunity Zone Funds allow for the purchase of 95% of complete investment property

Tax benefits include a step into original use and no depreciation recapture on the sale

[27:39 - 34:10] Closing Segment

How Ashley learned the cyclicality of the gun business and what not to do

Riches are in the niches - niche down and focus on the main thing

Stay focused on the main thing and don't get distracted by shiny objects

Connect with Ashley Tison:

Email: [email protected]

Website: www.OZPros.com/taylor/ 

 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your own terms.

Join our Passive Investor Club for access to passive commercial real estate investment opportunities.

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Quotes:

 

"Tax-free compound interest is the eighth wonder of the world. But cap coupling that in with cost 

segregation and bonus depreciation is the ninth wonder of the world." - Ashley Tison

 

"It's not about the capital gain that you have now. It's about the capital gain that you anticipate having in the future." - Ashley Tison