If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablerei

Join us as Kevin and I discuss the nuances of investing in parking lots and mobile home parks, as well as investing in syndication deals as a passive investor, and what to look out for when hiring a third-party property manager. 

Kevin is the Founder & CEO of Sunrise Capital Investors, which has a long track record of investing in mobile home parks, parking lots, apartments, offices, and single family homes across the US. He’s also the host of the Mobile Home Academy podcast and the highly rated Real Estate Investing for Cash Flow Podcast.

Helpful Links:

https://sunrisecapitalinvestors.com/

https://www.kevinbupp.com/

Episode Highlights:

• The parking lot industry is highly fragmented, run by a lot of mom and pop operators. Because of this, a lot of them are run using cash, which opens up a pandora’s box of employee theft.
• When Kevin hired third-party property managers interests were not aligned. The property managers were not profit driven and often went over budget on things. Kevin and his team ultimately determined that it was best to bring the property management aspect of their business in house so that they could ensure that they can continue to provide reliable, consistent returns to their investors.
• Sometimes mobile home parks are only licensed for a portion of the total lots that they are selling you. Always check with the city and county to determine the number of lots that are currently permitted.
• The underwriting for a deal is an imperfect process and always a best guess. If the asset is good and located in a good market, then it really comes down to the sponsor’s ability to execute the business plan. 
• When considering investing in deals as a passive investor (LP) you need to first look at the sponsor’s track record. How long has she/he been doing it? How many properties have they taken full cycle from acquisition to disposition? What does their personal balance sheet look like (i.e., do they have any personal assets to go after if the deal blows up)? What is the experience other investors have had that have been investing with the sponsor for several years already?

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablerei

Jeff Holzmann is CEO of IRM, a company formed solely to acquire and wind down nearly $2.0 billion in real estate assets invested through the now defunct crowdfunding platform RealtyShares. After the failure of RealtyShares, IRM struck a deal to take over their portfolio and has been able to fix many deals, provide clear and accurate communications to thousands of investors that were left in the dark when RealtyShares ceased operations.  In this episode we go in depth on what happens when you invest with a bad sponsor, and the not so sexy reality of operating assets after they’re acquired, even if they’re not making any money.

Helpful Links:

https://www.iintoo.com/

https://rreaf.com/team-collection/jeff-holzman

Episode Highlights:

• Two of the biggest risks with investing in syndications is (1) execution risk and (2) how the deal is structured. From an execution standpoint, the sponsor may lack experience and a successful track record. While she or he might have had success using their own money on a smaller scale, when tasked with deploying millions of dollars into the same asset class it often requires an entirely different business plan.  For how the deal is structured, do not invest in second lien debt. If the deal goes sideways and the sponsor loses interest because they’re not making any money on the deal, the first lien debtholders will begin to foreclose and the second lien debt (and equity) will be severely impaired and out of the money.
  
  
• A lot of risks associated with syndications can be effectively mitigated with the right sponsor. Speak with investors that have been investing with the sponsor for multiple years. Look at the results of properties that the sponsor has completed full cycle. You also need to understand if the syndicator is a professional operator with a validated, tested business plan and a lot of experience, and not going to simply apply a “mom and pop” approach and hope for the best. You should also consider the net worth of the sponsor. If the sponsor doesn’t have any assets, then there won’t be anything to collect if they are sued for doing a poor job on a bad deal.
  
  
• IRM categorizes their deals into 3 tiers with tier 1 being the best and tier 3 being the worst. Approximately 50% of the total deals are tier 1, while 25% are tier 2 and the remaining 25% tier 3. The tier 3 deals are often single family sponsors that were not able to effectively scale their business or execute their business plan.
  
  
• Before suing the sponsor for losing investors’ money, IRM must balance that with the cost to litigate. Even if you win a lawsuit, you may still lose in the end if the defendant doesn’t have any value for you to collect. 

Best way to contact your host, Mason Klement:

[email protected]

https://www.masonklement.com/

Be sure not to miss any future episodes by subscribing to the Scalable Real Estate Investing Podcast using the links below.

YouTube channel: https://www.youtube.com/channel/UCgDaSaSQP0KLoVCgydDd9Hw

Buzzsprout: https://www.buzzsprout.com/1131344 

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablerei

Stacy Rossetti is an expert in acquiring and operating self-storage facilities. Currently, she owns and operates 6 facilities with over 500 units. In this episode we discuss everything from finding a self-storage facility to successfully implementing value-add strategies.

Helpful Links

More information about Stacy: https://bit.ly/32UfBZQ 

Bigger Pockets Book called  “Profit like the Pros” which features Stacy Rossetti:

https://amzn.to/3brjZ4W

Episode Highlights

• Fix and flips take a lot of time, energy, and money. Stacy’s deals average at least $50k each in renovation work.
  
  
• Be the first to get to the seller before any brokers do.
  
  
• Create your own market and contact storage facilities that aren’t online.
  
  
• Analyze the supply and demand of your local market. Depending on your market, typically the square foot per capita (per person) needs to be between 6 to 8 square feet or less. If it’s significantly more than 8 square feet per capita, it indicates that the market may be oversatured, which will lower your occupancy rate, and make it more difficult to operate your storage facility profitably.
  
  
• For mismanaged facilities, you’ll need to chase the tenants more because they’re accustomed to abusing the system and taking advantage of the owner. That’s why you must train your tenants to prevent them from walking all over you. 
  
  
• Focus on making enough to cover the mortgage on the property every month.
  
  
• The first 2 to 3 months after closing is the most time intensive time to stabilize a property.
  
  
• Use social media to post your personal wins and goals to build credibility with your network.

Best way to contact your host, Mason Klement:

[email protected]

https://www.masonklement.com/

Be sure not to miss any future episodes by subscribing to the Scalable Real Estate Investing Podcast using the links below.

YouTube channel: https://www.youtube.com/channel/UCgDaSaSQP0KLoVCgydDd9Hw

Buzzsprout: https://www.buzzsprout.com/1131344 

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablerei

In this episode Randy Hughes and I go into detail about what a land trust is, and why every real estate investor should be using one on virtually every deal. Randy has purchased over 200 houses and is currently in his 50th year of his real estate career. Over this time he has become an expert in everything land trusts, hence his nickname "Mr. Land Trust." Randy's primary goal today is to help people break the cycle of poverty by educating them on some of the best real estate investment practices, including how to protect your assets using land trusts.

Episode Highlights:

• Nothing in this episode should be relied upon as legal advice.
  
  
• Land trusts are your first line of defense for asset protection in that they provide privacy. However, you still need to make your LLC the beneficiary interest for legal protection.
  
  
• Attorneys often charge $300 to $1,500 to set up a trust, but you can actually set up trusts yourself for free if you know what you’re doing.
  
  
• Never put your properties in your own name or your LLC’s name. Even if it’s in your LLC’s name the owners of the LLC can be looked up, unless it’s a WY or NM LLC.
  
  
• Revocable land trusts are considered pass-through entities by the IRS so you still get all of the same tax benefits that you would when not using a trust.

Helpful Links:

https://www.landtrustsmadesimple.com/

https://www.facebook.com/landtrustsmadesimple

Best Way to Contact Randy:

https://www.facebook.com/landtrustsmadesimple

Best way to contact your host, Mason Klement:

[email protected]

https://www.masonklement.com/

Be sure not to miss any future episodes by subscribing to the Scalable Real Estate Investing Podcast using the links below.

YouTube channel: https://www.youtube.com/channel/UCgDaSaSQP0KLoVCgydDd9Hw

Buzzsprout: https://www.buzzsprout.com/1131344 

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablerei

Join us as we speak with Chris Seveney about his note investing business. Chris is founder of 7E Investments, a firm that specializes in investing in first lien performing and non-performing notes backed by real estate. He has grown his note portfolio to over $5 million and his overall real estate portfolio to $7 million. He is also a director of construction at a Washington, D.C. based development firm where he has developed over $750 million in real estate.

Chris is also co-host of the Good Deeds Note Investing Podcast.

Episode Highlights:

• What makes this business scalable? Once you source the deal and get payments set up you can move onto the next one. You can also scale by progressively buying larger notes, eventually growing to notes on commercial properties such as multi-family.
  
  
• A great way to get started is using an online platform called paperstac.com
  
  
• Build a relationship with an attorney in the state you plan to buy notes in. Each state has its own foreclosure rules and procedures so you need to find an expert to help you with that process.
  
  
• Evictions and foreclosures across Chris’s entire portfolio is less than 10% so if that’s a fear, don’t let that hold you back.
  
  
• Another interesting thing mentioned is that the note is worth more when the borrower stays in the home and it doesn’t go to foreclosure.
  
  

Helpful Links:
https://paperstac.com/


Best Ways to Contact Chris:
https://www.7einvestments.com
https://gooddeedsnoteinvesting.com/
[email protected]
https://www.linkedin.com/in/christopherseveney/
Notes and Bolts Facebook group: https://www.facebook.com/groups/101028197428726/

Best way to contact your host, Mason Klement:

[email protected]

https://www.masonklement.com/

Be sure not to miss any future episodes by subscribing to the Scalable Real Estate Investing Podcast using the links below.

YouTube channel: https://www.youtube.com/channel/UCgDaSaSQP0KLoVCgydDd9Hw

Buzzsprout: https://www.buzzsprout.com/1131344 

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablerei

Mark is founder of Lake Growth Financial Services based in Chicago, best-selling author of 3 books, and co-host of the Not Your Average Financial Podcast.

In this episode Mark and I discuss why you should reconsider investing in tax-deferred retirement accounts like an IRA or 401k, how to leverage dividend paying whole life insurance policies to replace your bank, and how to scale your cash to become debt free.

Episode Highlights:

• Dividend paying whole life insurance policies are one of a few tools that you can leverage to live in a 0% tax bracket when you retire. The other two mentioned are HECOM Loan reverse mortgages and Roth IRAs.
• These policies grow uninterrupted by contractual obligations based on a clear schedule, independent of the stock market fluctuations.
• Some companies allow you to borrow up to 85% to 90% of cash value versus a loan against your 401k, which is capped at 50% of the account value.

Helpful Links:

What are Dividend Paying Whole Life Insurance Policies?

Not Your Average Financial Podcast

Books:

Secret to Lifetime Financial Security

How to be an Amazon Legend and Fire Your Banker

Real Estate Investing for Women

Best Way to Contact Mark:
notyouraveragefinancialpodcast.com
https://growmorewealth.com

Best way to contact your host, Mason Klement:

[email protected]

https://www.masonklement.com/

Be sure not to miss any future episodes by subscribing to the Scalable Real Estate Investing Podcast using the links below.

YouTube channel: https://www.youtube.com/channel/UCgDaSaSQP0KLoVCgydDd9Hw

Buzzsprout: https://www.buzzsprout.com/1131344 

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablerei

Join us as we speak with Paul Moore, found of Wellings Capital. Paul started his career at Ford Motor Company, went on to co-found a staffing firm that he later sold, and then got involved in real estate. After investing in single families he progressed to multi-family properties, and then evolved to self-storage and mobile home parks.

In this episode we go into detail about how to maximize your NOI, and force appreciation in self-storage properties by adding additional income beyond your normal rents. We also discuss different tax strategies that every commercial real estate investor should be using, how to find tax strategists instead of just CPAs, how to find cost seg analysts and more.

Tax Strategies Mentioned in the Episode: 

• You need to fire your CPA if they’re not a tax strategist
• 1031 exchange
• Delaware Statutory Trusts
• Cost Segregation and Engineering Cost Segregation Study - accelerate depreciation
• Section 179 - ensures capex is pushed into 1st year rather than over 15 years
• Reset Basis at Death - Heirs can reset the basis on the asset that you 1031’ed over the years
• Qualified Real Estate Professional (QREP)

Best Way to Contact Paul:

https://www.wellingscapital.com/

Helpful Links:

Store Local - self-storage co-op that shares marketing expenses and ideas

How to Lose Money podcast

Getting There Book

Best way to contact your host, Mason Klement:

[email protected]

https://www.masonklement.com/

Be sure not to miss any future episodes by subscribing to the Scalable Real Estate Investing Podcast using the links below.

YouTube channel: https://www.youtube.com/channel/UCgDaSaSQP0KLoVCgydDd9Hw

Buzzsprout: https://www.buzzsprout.com/1131344 

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablerei

Join us as we speak with Sri Latha about how she has consistently grown her real estate portfolio exponentially on every deal she’s done. Sri Lathata is a multifamily investor in the San Francisco Bay area that uses out of the box thinking to make her BRRR strategy work for over 50 multifamily units in high cost of living areas. Sri is also currently in contract on a 115 unit hotel to multifamily conversion deal.

Episode Highlights:

- Despite rent-controlled units, you can force appreciation on your properties by implementing a cash for keys strategy

- Even in high cost MSAs you can add tremendous value to your multifamily property by creating units via ADUs (Accessory Dwelling Units)

- Understand zoning to convert properties into other types of assets and work with multiple contractors to understand the cost of converting

- Grow your assets exponentially by doubling your capital on each investment; while you may not cash flow $100K on your first property, it’s definitely possible on your subsequent investments

Best Way to Contact Sri:

https://www.thesrilathagroup.com/

[email protected]

Instagram: bayarea_multifamily

Best way to contact your host, Mason Klement:

[email protected]

https://www.masonklement.com/

Be sure not to miss any future episodes by subscribing to the Scalable Real Estate Investing Podcast using the links below.

YouTube channel: https://www.youtube.com/channel/UCgDaSaSQP0KLoVCgydDd9Hw

Buzzsprout: https://www.buzzsprout.com/1131344

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablerei

Join us as we speak with Neal Bawa, the mad scientist of multifamily investing. Neal is founder and CEO of Grocapitus, a commercial real estate investment firm that applies data-driven insights to invest in over 2,000 doors and more than $250 million in both multifamily and self-storage assets. Neal is also CEO of an apartment investing education company called MultifamilyU.

Episode Highlights:

- Real estate overcorrects in a downturn. In the last recession, the biggest swing in values was 70%

- Investors can consolidate more than 10 single family properties into portfolio loans

- Neal’s FREE Udemey real estate course teaches the 5 metrics to analyze a market prior to investing. It goes into detail about finding markets that have Goldilocks demographics less than $70,000 median income but greater than the poverty threshold. If too many people are below the poverty threshold you’ll have a lot higher turnover at your property. The typical stay for a healthy performing property is 2.5 years.

- Out of 8,751 census zones, Neal and his team identified only about 300 that were investment grade. That means that on average, only 3% to 5% of opportunity zones are investable.

Best Way to Contact Neal:

MultifamilyU: https://multifamilyu.com/

Helpful Links:

Neal’s FREE Udemy Course: https://www.udemy.com/course/realfocus/

Data provider for Opportunity Zones: https://investreal.com/#/

MultifamilyU: https://multifamilyu.com/

Best way to contact your host, Mason Klement:

[email protected]

https://www.masonklement.com/

Be sure not to miss any future episodes by subscribing to the Scalable Real Estate Investing Podcast using the links below.

YouTube channel: https://www.youtube.com/channel/UCgDaSaSQP0KLoVCgydDd9Hw

Buzzsprout: https://www.buzzsprout.com/1131344 

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablerei

Leslie Awasom is founder of Xsite Capital Investments, a multifamily syndicator based in Maryland. Join us as we speak with Leslie about how he went from zero capital and experience to eventually running his own 49-unit multifamily deal. Leslie goes into detail about the best ways to grow your real estate investing network using Facebook, Meetup, and word-of-mouth referrals.

Be sure to register for Leslie’s upcoming FREE online Meetup event scheduled for Mondy, August 3, 2020 from 6:00pm to 9:00pm EST where guest speaker Steven Pesavento will go into detail about how to negotiate like an FBI hostage negotiator to increase your conversion rates.

https://www.meetup.com/Exciting-World-of-Multi-Family-Investing-Meetup-Networking/events/hgbqsrybclbfb/

Episode Highlights

- Partnering with more experienced general partners is a great way to start building your real estate company with little to no experience

- The cashflow board game by Robert Kiowasyki helped teach Leslie about his own and his business partners’ beliefs surrounding money.

- It is possible to pursue your real estate investment journey while maintaining your day job. It’s not about time management. It’s about self-management.

- You can’t simply “find the deal” and the money will come. You must build relationships and maintain communication with people over time.

Best Ways to Contact Leslie:

Email: 

[email protected]

Website:

https://www.xsitecapital.com/

Facebook Group:

https://www.facebook.com/groups/559270544605834/

Meetup Group: https://www.meetup.com/Exciting-World-of-Multi-Family-Investing-Meetup-Networking

Leslie’s FREE Virtual Meetup Event Scheduled for Monday, 08/03/20: https://www.meetup.com/Exciting-World-of-Multi-Family-Investing-Meetup-Networking/events/hgbqsrybclbfb/

Helpful Links:

Cash Flow Board Game:

https://amzn.to/3fmU4g3

Second Chance Book by Robert Kiyosaki

https://amzn.to/32aCqZe

Best way to contact your host, Mason Klement:

[email protected]

https://www.masonklement.com/

Be sure not to miss any future episodes by subscribing to the Scalable Real Estate Investing Podcast using the links below.

YouTube channel: https://www.youtube.com/channel/UCgDaSaSQP0KLoVCgydDd9Hw

Buzzsprout: https://www.buzzsprout.com/1131344