The Real Estate Launchpad: The ultimate toolkit for multifamily and other property investing success

Jonathan's brother, Dave Twombly, is an exclusive buyer's agent in Boston, Massachusetts. He works in residential real estate, and he chooses to only represent buyers. Dave shares how he got into real estate and why he willingly gave up half of the business of real estate to represent only buyers. In this episode, you will hear Dave share why you may want an exclusive buyer's agent to represent you in the buying process and if you're new to real estate, why you may want to focus on the buyer's side. Listen along - this is an episode you won't want to miss!

Why use an exclusive buyer's agent?

In the past, realtors did not have to tell clients who they represented or what side of a deal they were on. When buyers looked for properties, realtors took them immediately to their own listings or listings of colleagues. Because of this, buyers were not getting fair representation. Exclusive buyer's agents represent only buyers and not sellers, so they are purely dedicated to the buyer. There is never an instance where the agent could be representing the buyer and the seller. It gives the buyer an advisor who thinks only of his needs.

The key to getting referrals

All realtors rely heavily on referrals. In this episode, Dave shares several things that help him get good referrals from clients.

• He focuses heavily on customer service.
• He always responds to potential clients and existing clients quickly.
• In a real estate world where the more clients the better, Dave chooses to only take on a handful of clients at a time. This gives him the chance to walk every property with a customer, explain the process of home buying, and cater to their individual needs.

Hear Dave talk more on the importance of referrals and how he went from 0% to 80% of his clientele being from a referral from a previous client.

The process of working with Dave as an exclusive buyer's agent

When Dave works with buyers, he has an initial conversation either face-to-face or on the phone to get general information. He wants to learn the buying situation: price range, timetable, what size of home his client is looking for. He then spends time explaining how he operates. Before signing a contract, he will take potential clients out to look at properties. Dave says it is important to know if he and a potential client will work well together. He is looking for a client that he clicks with, as well as someone who will listen to his advice. If these things all check out, Dave will then sign a contract with a client. Be sure to listen in to hear more on his process of representing buyers.

Short-term greed vs long-term greed in real estate

Patience is a virtue for an exclusive buyer's agent. He says that it is more beneficial to take a year for a client to find the right property than to find something that isn't perfect quickly. Dave notes that by taking time to find the best thing for the client, he is creating a happy client. Happy clients give good referrals. Even though selling a home in a shorter period of time produces money quicker, it does not all always create a good process and happy clients. Dave chooses to look in the long term, so he creates clients for life and referrals.

In This Episode Dave Twombly says...

• [2:06] Who he is, and what an exclusive buyer's agent does
• [5:12] How he built his business
• [8:04] How he reached a turning point in his career
• [9:29] The key to getting referrals
• [11:32] The process to working with Dave
• [14:19] Why you should work with an exclusive buyer's agent
• [19:00] How working with Dave affects a buyer's comission
• [24:47] Short term green vs long term greed in real estate
• [31:14] Current housing market in Boston, Massachusetts

Resources Mentioned In The Episode

• Multifamily Launchpad Membership Community - Join the waitlist for 1 of 100 discounted charter memberships available January of 2019
• Bellwether Enterprise (sponsor) - contact Will Oldham [email protected]

Connect with Dave Twombly

• www.4BuyersRE.com
• Dave (at) 4BuyersRE.com
• Dave on Zillow

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

Subscribe to REAL ESTATE LAUNCHPAD onApple Podcasts|| Google Podcasts|| Android|| SpotifyStitcher|| TuneIn Radio|| Google Play Music

 

Ever wonder what it takes to break into multifamily investing? Former school teacher, turned multifamily investor Todd Dexheimer joins Jonathan on this episode. Listen in to hear Todd explain how many rentals he needed to quit his job as a shop teacher, why he switched from single family to multifamily, why he gave up on smaller multifamily to focus on 100+ units, and how he overcame the prejudice multifamily investors have against single family investors looking to make the switch. This is an episode you won't want to miss!

Market research is key

Knowing your market is vital to know where to invest in real estate. Todd began his market research by driving around neighborhoods. He saw the local businesses, knew trendy bars, and interacted with the people living there. Todd even ran through neighborhoods to get a closer look - to see the sights in slow motion, not from a protected car.

When the time came for Todd to invest in his first two deals, many people told him the properties were in bad areas. They advised him not to move forward. However, Todd had done his market research. He had visited the areas and seen the growth in local businesses. Because he knew the market, he knew it was wise to move forward. Hear Todd share more on market research on this episode.

Why Todd gave up buy and hold to invest in multifamily

Todd began his real estate investing career in rentals and flipping homes. However, he always had his sights set on multifamily. Several years into his real estate career, Todd realized flipping homes was a distraction and was not allowing him the time or money to build the portfolio he wanted. He saw that his ROI was better on rentals than his flips, so he stopped buying flips.

Todd moved from duplexes, to 10-20 unit buildings, to apartments, and then to syndication. On this episode, he notes many reasons to move to multifamily. He says that a 100 unit building is easier than a 20 unit building. Scaling makes running a larger unit easier and more efficient. You can purchase paint in bulk, service things in bulk, and you typically have a property manager. In single family, if you lose a tenant, you are 100% vacant. In multifamily, you are not likely to be 100% vacant.

How to get bigger brokers to trust you

Being a new player in multifamily investing, it is hard to get bigger brokers to trust you. You want brokers to bring you good deals, but how do you do it with little experience? Todd mentions several tips to gaining bigger brokers' trust. He says to identify and tell brokers exactly what multifamily you're looking for (age, number of units, price). Experienced brokers can sniff out a rookie quickly, so Todd advises to learn the terms and language of industry. He says you must understand how things operate. He suggests new multifamily investors hire a mentor to walk you through things you don't know.

A good approach to deals in today's market

Todd believes that in the current real estate market, things are closer to the top than the bottom. There is less room for the market to go up before it eventually crashes. This does not mean to stop buying multifamily, but it does cause Todd to approach deals conservatively. He no longer assumes that he can buy and sell an apartment in 3 years. Before purchasing a multifamily deal, he wants to be sure that he can hold for 15 years and still have cash flow. Todd suggests looking where the break-even point is and whether a down cycle can be endured. Looking at the past for the worst vacancy rates is helpful in knowing how a property could perform. Todd says to leverage based on what you would actually pay for a piece of real estate. He also reminds investors to make sure they are in a good place cash-wise, so they do not have to pay for things out of their cash flow. Be sure to listen in to hear more of his suggestions for investing in today's market.

In This Episode Todd Dexheimer says...

• [3:04] Why real estate investing?
• [8:30] The benefits of market research and understanding neighborhoods
• [10:43] Todd's first two real estate deals
• [14:08] Why Todd ramped up buying real estate when others sat out
• [22:33] Todd's journey: from school teacher to multifamily investing
• [28:40] The importance of investors
• [35:22] How to get bigger brokers to trust a new multifamily investors
• [37:09] Where Todd sees the current market
• [40:35] How to approach deals with current market

Resources Mentioned In The Episode

• Jonathan (at) MultifamilyLaunchpad.com - Learn to be an asset manager and Investor
• Bellwether Enterprise(sponsor) - contact Will Oldham: Will (at) bwecap.com
• www.CarletonSheets.com

Connect with Todd Dexheimer

• Todd (at) VentureDProperties.com
• www.VentureDProperties.com
• www.PillarsofWealthCreation.com

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

Subscribe to REAL ESTATE LAUNCHPAD onApple Podcasts|| Google Podcasts|| Android|| SpotifyStitcher|| TuneIn Radio|| Google Play Music

Did you know skills you develop in your current job translate to multifamily investing? In this episode, Dan Handford shares how his background in owning multiple medical practices influenced his approach to multifamily investing. Hear why Dan decided to leave the day-to-day operations of his medical practices to invest in real estate. You won't want to miss this episode as he explains why he paid a mentor for real estate investing, how he chose his mentor, and ultimately why he chose multifamily.

Entrepreneur at heart: the road to multifamily investing

Dan is an entrepreneur at heart. Even as a child he looked for opportunities like mowing grass to make money. Early in his career, he started developing websites. Dan landed in the medical field after designing a website for a local chiropractor. This piqued his interest in medical services, which eventually led to his 5 clinics in South Carolina.

Though he was the CEO of these clinics, Dan wondered if there was something more out there for him. He walked away from the day-to-day of his business to find his new calling. Dan was reminded of his love of real estate by a friend, which led to multifamily investing. Dan realized his entrepreneurial drive paired exceptionally well with real estate investing, allowing him to build things from the ground up with multifamily deals.

Why you need a mentor to break into multifamily investing

Prior to multifamily investing, Dan always had a mentor. When he decided to invest in real estate, he knew he needed someone who had more knowledge than himself to teach him the ropes. Finding a mentor who worked well with his personality was very important. He also wanted to find a mentor who could interact well with others, not just bulldoze a conversation. He looked to podcasts, blogs, and websites to help him find the ideal mentor for him.

Dan says that having a personal relationship with his mentor was key. He did not want a group phone call once a week. It was very important to him to be able to call his mentor with questions in the middle of a deal and have access to his mentor.

The importance of learning from mistakes

As a real estate investor, you don't always have the perfect deal. Sometimes they go sideways or don't succeed. Dan points out in this episode that you can learn from your mistakes AND from other people's mistakes. These experiences teach you to handle when things are not perfect. Dan says that bad situations make you better and sharpen you as an investor. These deals allow investors to learn more about multifamily investing. Listen in to hear how to gain knowledge and experience through mistakes and less than ideal conditions.

Skills that transfer from one profession into real estate

Dan gained many skills from his career in the medical field. He shares several of those in this episode. Dan became a very good delegator as the CEO of 5 medical practices. He could do every job, but in order to scale and get to the next level, he had to delegate. He built a team. He got the right people on this team so that he could hand off jobs and feel confident that they were being done well. The same practice was necessary for multifamily investing. He needed to build a team of people who were good at what they do. He delegated and trusted others to do their jobs so he could focus on building his investments.

In This Episode Dan Handford says...

• [2:23] Dan's journey from medical practice to real estate investing
• [6:05] How Dan scaled his medical business
• [9:20] Dan's key to marketing his medical clinics
• [11:17] How Dan found multifamily investing
• [17:48] Reasons Dan hired a paid mentor
• [19:11] How to pick a mentor
• [27:00] Benefits of multifamily investing
• [30:42] Dan's first investment steps
• [37:23] Skills that transfer from the medical field to real estate

Resources Mentioned In The Episode

• Jonathan (at) MultifamilyLaunchpad.com - Learn to be an asset manager and Investor
• Bellwether Enterprise(sponsor) - contact Will Oldham will (at) bwecap.com

Connect with Dan Handford

• Dan's Podcast: www.ToughDecisions.net
• Dan's Multifamily Investment Firm: www.HandfordCapital.com

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

Subscribe to REAL ESTATE LAUNCHPAD onApple Podcasts|| Google Podcasts|| Android|| SpotifyStitcher|| TuneIn Radio|| Google Play Music

Pat Hiban hasn't always been a real estate investor. He spent 25 years as a real estate agent. He was Remax's #1 Agent and later Keller Williams' #1 Agent. However, he chose to leave his career as a successful realtor and become a real estate investor. Pat built a great team as a real estate agent and proceeded to build an even better team as an investor. On this episode, hear why Pat left selling real estate to become an investor. You'll want to listen in as he draws from his years of experience in the market as a realtor and an investor to give his opinion on where the market is now and where he believes it is going.

Why successful people build teams

Pat attributes his success as a real estate agent to building a team. He hired people based on their strengths and placed them in job positions where they would excel. It was this team that propelled him to his #1 position in sales. He says that successful people build teams to allow them to focus on what they are best. As a real estate investor, Pat believes that he should focus on his highest use. He chooses to spend time on things that no one else can do. He focuses on delegating tasks and ensuring others are doing their job. When his team is performing as it should, Pat is free to work on his business and not in his business.

The benefits of becoming a real estate investor

Becoming a real estate investor had many benefits for Pat. He felt liberated to walk away from the duties and hands-on nature of being a real estate agent. His transition from a realtor to an investor came at a time where selling homes was not fun or lucrative for him.

Horizontal income attracted him to real estate investing. Though it is not entirely passive, it paid his living expenses by bringing in a steady amount of money each month. In addition to horizontal income, real estate investing also brings in money when properties are sold. Pat has found that his investments in real estate have played out much better than his other business ventures and have much greater returns.

What Pat is seeing in the real estate market

When asked what he is seeing in the real estate market, Pat answered: "Cranes." There is a massive amount of construction, and cranes are everywhere building real estate. He sees growth and massive inventory being added. Multifamily properties are built left and right. He wonders if there is enough demand for this and thinks that with all this real estate growth, it will force rent down in other investments because of the competition.

Many of Pat's investing friends believe the market has 3-4 more years of growth. Pat points to the government and economy as indicators of the market. However, Pat is personally more concerned about where the market is going. He advises those breaking into the market to be prepared to" flip and get out" or be ready to "sit on it."

How technology has influenced the real estate market

Pat Hiban explains that compared to past upward trends in the market, the public now seems more comfortable investing in real estatet. One large factor contributing to this is technology. There is more information to be accessed about the state of the market and how to break into it. Podcasts, blogs, and forums online provide knowledge to the average person. The public can locate educational resources concerning real estate online on computers, tablets or phones. The internet has allowed people to find and buy homes where they don't live, electronically. With this information, people feel as though they are making more informed decisions.

In This Episode Pat Hiban says...

• [2:20] Pat's story: From agent to investor
• [4:30] The key to Pat becoming the #1 real estate agent with two companies
• [6:37] How Pat chose people for his real estate team
• [11:07] The importance of delegating and focussing on your highest and best use
• [13:25] The tasks Pat is currently focused on and why
• [18:36] Why he made the switch from being a real estate agent to an investor
• [26:25] The benefits to investing in real estate as opposed to small businesses
• [29:17] What he is seeing currently in the real estate market
• [38:34] Technology's effects on the current real estate market
• [44:16] Pat's advice to those hoping to break into the market

Resources Mentioned In The Episode

• Jonathan (at) MultifamilyLaunchpad.com - Learn to be an asset manager and Investor
• Bellwether Enterprise(sponsor) - contact Will Oldham [email protected]
• Real Estate Rockstar Radio - www.HibanDigital.com
• www.FreeSixStepsBook.com

Connect with Pat Hiban

• www.PatHiban.com

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

Subscribe to REAL ESTATE LAUNCHPAD onApple Podcasts|| Google Podcasts|| Android|| SpotifyStitcher|| TuneIn Radio|| Google Play Music

 

Two women real estate investors join host Jonathan on this episode. Veena Jetti and Puja Talati give their backgrounds and share with the audience how they broke into multifamily investing. Listen to this episode and hear these female partners at Enzo Multifamily offer a wealth of knowledge on how to choose markets and submarkets for investing, factors influencing which B Class assets to purchase and how they use their position as women and wives of physicians to network and empower women.

How to choose target markets and submarkets

Veena and Puja give insight into how their company identifies target markets and submarkets. Enzo Multifamily invests primarily in Florida and Texas. They chose these markets because they are both continually growing. Some of the qualities of those areas that make it ideal for the type of investing they do:

• There are people moving to the area needing housing.
• Neither state has income tax
• Both states have climates that are friendly retirees. This is important because it means there are people with the financial ability to invest.

They also point to several leading identifiers for submarkets for multifamily investing. It must have strong population grown, strong economic growth, and overall job growth. They want to know if the market can weather a storm. If population and rent growth are in a positive trajectory, there will also be stability in the area.

Expanding healthcare systems act as an indicator for growing markets

Veena and Puja use expanding healthcare systems as an indicator of a growing market. Since both women are married to physicians,hey hear when large hospital systems are expanding and hiring. This means several things to them as it relates to multifamily investing.

1: Healthcare can indicate what is coming down the road in terms of population growth. Population growth is a good sign of a strong market.

2: There will be an influx of people to invest in deals.

3: There will be cash buyers who will purchase property. The more single-family homes that are taken off the market, the less buying power tenants (of their multifamily assets) will have.

Why Enzo Multifamily focuses on B Class Assets

Enzo Multifamily focuses on B Class Assets because they are stable. It is the best for risk-adjusted return. Veena and Puja note that Class A is the most stable asset class because of the type of tenant it attracts (white collar, higher education, better-paying jobs). However, the returns are often less. They do not want something with a lower return for lower risk. B Class Assets sit on the perfect place on the risk-reward curve. C Assets would only be done by Enzo Multifamily if they could bring the asset up to a B.

The pros and cons of being a female entrepreneur in the male-dominated field of multifamily investing

Both women speak about being female in a male-dominated industry. These two women make up half of the partners at Enzo Multifamily. They say that their male business partners at Enzo Multifamily as well as their husbands help prop them up and propel them forward.

Veena sees being a female in this industry as unique - with challenges and upsides. At commercial walkthroughs, she is often questioned on when her husband or a decision maker will be showing up. However, she sees being a woman in this industry as important. She is breaking down barriers that were previously there. It has also allowed her to help other female friends get involved in multifamily investing. Puja developed strong relationships with other women talking about finances. She helps guide and share what she has learned along the way. Be sure to listen to this episode and hear them speak more on multifamily investing and their experience as female entrepreneurs.

 

In This Episode Veena Jetti & Puja Talati say...

• [3:01] The background of Enzo Multifamily Investments, and why is was started
• [5:48] Why Enzo focuses on Texas and Florida markets and how they choose markets
• [9:53] Leading identifiers to help pick submarkets
• [14:51] Making the most of being the wives of physicians
• [19:03] Why it is important to see what new building permits have been pulled
• [24:10] Why their company chooses Class B assets
• [30:56] Veena's background and how her family's experience led to where she is now
• [37:06] How Puja's background helps her create investor relations and brand their company
• [40:54] How friends and family are important investors
• [44:02] Veena's experience on being a woman in a male dominated industry: the pros and cons

Resources Mentioned In The Episode

• [email protected] - Learn to be an asset manager and Investor
• Bellwether Enterprise(sponsor) - contact Will Oldham [email protected]

Connect with Veena Jetti & Puja Talati

• Hello (at) EnzoVentures.com
• www.EnzoMultifamily.com

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

Subscribe to REAL ESTATE LAUNCHPAD onApple Podcasts|| Google Podcasts|| Android|| SpotifyStitcher|| TuneIn Radio|| Google Play Music

When you think about real estate investing, do you think of multifamily investing? Many think of single-family homes. Their minds jump to flipping homes to sell or to keep as rentals. BUT, what about apartments? On this episode, Michael Blank shares why multifamily investing is often easier for investors and more profitable. He demonstrates that it can be very profitable, even without previous experience. Listen to this episode and hear Michael explain how to break into the market of multifamily investing.

Multifamily investing has many advantages

Multifamily investing has many advantages over single-family investing. Michael gives us several reasons why.

1: There is unlimited financing with lower interest rates. Plus, there is no personal guarantee.

2: The investor can control the value of commercial real estate. You can take an underperforming apartment and help it perform better.

3: It is much more passive than single family investing. It has a professional property manager built into its model, taking the weight of dealing with the day-to-day off of the investor.

4: You can scale these investments very quickly with few transactions.

You don't need experience to break into multifamily investing

Many people think you need experience in single-family to break into multifamily investing. Michael says that this is not true, and this lack of experience can be overcome in just 30 days. Educating oneself helps overcome a lack of experience. There are many resources to help learn the language and create the correct scripts. Toward that end, Michael has authored a book to help: "Financial Freedom with Real Estate Investing: The Blueprint To Quitting Your Job With Real Estate - Even Without Experience Or Cash".

Building a team around you also helps overcome a lack of experience. When you are able to talk about your great property manager or experienced attorney, you can keep investor's focus off of your inexperience and on the competence of the team you've assembled.. Let their accolades and experience prop you up and propel you forward.

How to raise money for multifamily deals

Michael raised money for his multifamily deals by talking to friends and family in his early real estate investing days. He realized from that experience that he could still do projects even if he personally didn't have the cash. But he couldn't always be raising the money from his family and friends, he had to create a system for raising money that could go further. Part of a good fund-raising system is learning to be intentional in conversations with potential investors and to start raising money from day 1.

One of the great strategies Michael came up with to help raise money was to present potential investors with sample deal packages before he had a real investment opportunity available. It gives them the chance to offer feedback and ask questions before you get to a real deal. Michael says it is good to have all of this under your belt so when a contract comes along, investors are ready to go. They already know what you are about. They can look at your specific deal and not be distracted by other questions.

The role of partnerships in real estate investing

There are many types of partnerships in investing.First, there is the team you surround yourself with. These are the people who help you get to the deal and are with you after the deal. These are the attorneys, the property managers, and lenders. They help build you up. There are also partners or co-investors. These people help you raise money or fund the deal.

Michael also speaks of a different kind of partnership, one between the person who finds deals and those who fund it. He says that the "number guys" and the "relationship guys" work well together. They play on each other's strengths to help find secure real estate investments.

This episode is full of great content that will help you feel that multifamily investing is not only possible, but something you can do. Be sure you listen to learn how you can start your journey into apartment investing.

In This Episode Michael Blank says...

• [2:53] How Michael went from failed investments in the restaurant business to investing in single family homes before finding his sweet spot investing in apartments
• [3:54] Why there are multiple advantages to multifamily investments
• [10:10} How to get over the hump of having no experience in multifamily and no cash
• [11:26] You can overcome the lack of experience by gaining education and building a good team
• [17:34] If you don't have money for deals, you have to raise it
• [20:21] The importance of maintaining investor relationships
• [21:42] The role of partnerships in multifamily investing
• [29:50] How to overcome the debt portion without having the networth yourself
• [31:27} There are many reasons why the risk is low for a co-sponsor

Resources Mentioned In The Episode

• Jonathan(at)MultifamilyLaunchpad.com - Learn to be an asset manager and Investor
• Bellwether Enterprise(sponsor) - contact Will Oldham [email protected]

Connect with Michael Blank

• TheMichaelBlank.com

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

Subscribe to REAL ESTATE LAUNCHPAD onApple Podcasts|| Google Podcasts|| Android|| SpotifyStitcher|| TuneIn Radio|| Google Play Music

 

In order to invest in commercial real estate, you need to have a basic understanding of commercial loans. Do you want to know more but don't know where to start? Join us for this week's episode! Will Oldham, show host Jonathan Twombly's own commercial mortgage banker, explains commercial loans. He breaks down the process of obtaining a commercial loan, different types of commercial loans, how he advocates for his borrowers and more! He provides a wealth of knowledge on commercial lending that you simply won't want to miss.

Steps to obtaining a commercial loan

In order to secure a commercial loan, the borrower must first know his goals - is this a long-term deal, or a short-term flip? What is the most important - dollars or a lower interest rate? Once the borrower knows his goals, the loan officer begin to collect initial due diligence information. This includes things such as property information, history on the borrower, and net worth.

Once this is compiled, loan officer create a debt financing package to send to lenders. In Will's case, he tries to be creative, presenting his clients' stories, advocating for them to the lender. His job is to know what each lender is looking for and present them a deal that will be tailored for them. He explains why his borrower is a good fit for their loan.

How a first time buyer can increase his chances of obtaining a commercial loan

Commercial mortgage bankers increase new or early buyers' chances of obtaining a loan by knowing what each lender is looking for and advocating for borrowers. In addition to this, Will says that being transparent and upfront is vital. Deals need to be accurately presented to lenders and numbers correctly represented.

One hurdle less experienced borrowers face is not having enough net worth or liquidity. Lenders want to see borrowers with the financial ability to stick it out with a property, even if it is going through a hard time. Having partners or investors sign with you is a good way of increasing the chances of obtaining a loan.

The different types of commercial loans available, and when to use them

There are four types of commercial loans: agency loans, life insurance company loans, bridge deals, and CMBS loans. Agency loans are traditionally longer term holds - 10-year fixed rate loans. These are mostly used for multifamily properties, and they are long-term and higher leverage. Loans through life insurance companies are typically lower leverage deals and are more conservative in their underwriting. They max out at around 65-70% loan to value, but their interest rates cannot be beaten. Bridge deals are tailored to shorter-term flips and are very aggressive. They allow you to borrow up to 80-90% of the cost on a two or three-year deal. Last are CMBS loans, which are higher leverage and longer terms. They are typically used for other property types than multifamily.

Listen to this episode to hear more details about the different types of loans to discover which is best for your next deal.

Where is the market going, and what does this mean for you

There is a rising interest rate environment in today's market. Will explains that the US 10 Year Treasury Note is the basis for rates, and it is currently the highest he has seen in his career (though he says historically, it is still low). He is still seeing plenty of deals with interest rates in the 4-5%, and he does not see huge changes within the next few months.

Will says that he is currently pitching to borrowers looking at long-term investments to do a long-term fixed rate deal. This allows for a steady rate throughout a borrower's term in a market that has no downward pressure.

In This Episode Will Oldham says...

• [3:56] The process to getting to a commercial loan
• [7:41] Tailoring the presentation and package to what a specific lender is looking for
• [10:40] Metrics commercial lenders must follow
• [17:14] How to increase a first time or early buyers chances of finding a commercial loan
• [20:42] Why net worth is important
• [24:35] Different types of loans available
• [28:16] Benefits of using each type of loan and when to use them
• [36:58] How to exit loans and different types of prepayment penalties explained
• [42:27] Explanation of what Will sees in today's market

Resources Mentioned In The Episode

• [email protected] - Learn to be an asset manager and Investor
• Bellwether Enterprise(sponsor) - contact Will Oldham will(at)bwecap.com

Connect with Will Oldham

• will(at)bwecap.com

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

Subscribe to REAL ESTATE LAUNCHPAD onApple Podcasts|| Google Podcasts|| Android|| SpotifyStitcher|| TuneIn Radio|| Google Play Music

Commercial Real Estate Investing: How To Go From Zero to Millions, with Reed Goossens, Ep #16

Have you ever thought about commercial real estate investing, but you have no experience? You will want to pay close attention to this episode. Reed Goossens, a structural engineer from Australia came to the United States with no commercial real estate experience. In five short years he has an investor list of thousands of clients and control over 70 million dollars in real estate. In this episode, he talks about how he broke into commercial real estate investing. Listen along and learn why Reed says that if he can do it, so can you!

The power of other people's money

Many times one doesn't have the money to go out and buy commercial real estate. Reed learned early on that going to friends, family, or a mentor to come up with capital is necessary for getting in the game. He raised smaller amounts of money for his mentor's deals and then began to build a network of investors. By doing this, he created a group of people who were primed to do a deal when one came up. In his interview, he explains how you can start building your database by simply looking through your phone contacts for people to reach out to as investors. It is simply about building a network.

Why you need a mentor to get started in commercial real estate

Reed started out on a smaller scale, raising money for his mentor's project. Not only did this get him experience, it helped build credibility in the field. Starting with a small chunk of someone else's commercial real estate investment deal allowed him to build a network of people with no risk. Though being a mentee is not where all the money is made, Reed says that it helps to get a foot in the door. It proves to yourself, investors, and your network that you can do it! Having a positive track record on someone else's deal allows you to start small.

How to find and connect with investors

If you want to connect with investors, you need a compelling story. What makes you different? Reed talks about what made his story unique: giving up everything to move to a foreign country without a job. He says to harness your journey so that people want to know more. Your story enables you to develop rapport and trust with investors.

Reed also explains you should have a dialogue with investors. You don't just tell your story, you need to interact with your database. Reed says how he used monthly newsletters and in-person meetings to further develop investor relationships.

Find your niche and go from there

Early in his commercial real estate journey Reed saw the need to find a niche and own it. That is why he started his own podcast: "Investing in the US." When he started the show, there was no other podcast speaking to international investors on how to invest in the United States. He was the sole influencer in this area. By finding this niche, he created an audience where he was the only voice.

Reed realized that this was not the only area of the market he could speak to. Once he owned that niche, he moved to another. Not only does he speak to international investors about investing in the US now, he has also broadened his spectrum to simply investing in the United States. By doing so, he continues to expand to new audiences and broadens his database. He encourages the listener to also find a niche to help them become influencers as well and create groups of people who would be willing to invest.

In This Episode Reed Goossens says...

• [4:18] How he transitioned from a structural engineer to a real estate investor
• [6:25] Australia has multiple barriers to entry that the United States does not have for multifamily investing
• [8:27] Explanation of nonrecourse and recourse for lending
• [11:41] The power of other people's money and how to use it
• [12:35] The importance of having a mentor and riding on his coattail
• [19:36] Scaling is necessary - each member of the team should focus on what he is good at
• [23:00] You are not born with years of experience, you must create it.
• [30:37] The importance of building a network of people who will be primed to do a deal when one is ready
• [40:20] Reed explains equity for his general partnership
• [42:45]Find a niche and be ready to pivot to a new one

Resources Mentioned In The Episode

• [email protected] - Learn to be an asset manager and Investor
• Bellwether Enterprise(sponsor) - contact Will Oldham [email protected]

Connect with Reed Goossens

• www.ReedGoossens.com
• Investing in the US Podcast: https://soundcloud.com/investing-in-the-us
• [email protected] or Info (@) ReedGoossens.com

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

Subscribe to REAL ESTATE LAUNCHPAD onApple Podcasts|| Google Podcasts|| Android|| SpotifyStitcher|| TuneIn Radio|| Google Play Music

 

One of the many places where beginning AND experienced real estate investors can make a colossal error is in estimating the cost of commercial property insurance for their deals. It's quite common for due diligence to be done, a deal to be finalized, and then for the actual insurance costs to come in much higher than anticipated. There are many reasons for it, and Jonathan's guest on this episode, J. Darrin Gross explains.

You'll learn what insurers are thinking as they evaluate an insurance quote, what goes into the cost of insurance on their end, why claims history is important to future pricing, and why buyers never get the rates the seller is paying. This is a very enlightening conversation that can keep money in your pocket on your next deal. Don't miss it.

Insurance rates the seller pays are NOT what you will pay as the buyer

Commercial property insurance is commercial property insurance, right? Why would the quote a buyer receives for a property be any higher than what the seller is already paying on the very same property? In this conversation, J. Darrin Gross explains that a new insurance quote can't be compared to an old policy for many reasons, among them being differences in coverage, the condition of the property, inadequate coverages, and more.

Be sure you listen to this episode to understand how to get the right numbers on insurance for your real estate deals. Darrin is an insurance professional and also a real estate investor himself, so he's able to speak to the issue from both sides.

When estimating commercial property insurance costs, the sooner you engage an insurance broker, the better

Because there are so many variables when it comes to commercial property insurance, you don't want to settle for making an educated guess when putting together numbers on a deal. Your best guess is not likely to be anywhere close to the actual numbers. J. Darrin Gross explains why and gives tips for getting as close as you can to an accurate figure in your estimations.

But his best advice is very simple: engage with a commercial insurance broker as soon as you can. With the right information, an insurance professional can get you a number that is more complete, takes into consideration all the variables, and is based on your answers to questions you didn't even know to ask. You'll be glad you listened.

The past may not be a reliable indicator of the future - but for insurance purposes, it's often what is considered

When you're putting together the figures for your next real estate investment possibility, are you going to consider the history of the property in calculating insurance costs? You should. J. Darrin Gross says that though the past is not a reliable indication of what might happen in the future, it's often used as a basis for risk assessment when calculating insurance costs.

In this conversation, Darrin explains what investors can do to put their insurance broker's mind at ease when it comes to issues from the past. If you understand and apply what he explains in this conversation you could save yourself thousands in insurance costs over the life of your investment. Be sure you listen.

Your commercial property insurance quote will be based on 4 primary things

One of the valuable things Darrin explained in this conversation is that the property itself is the main barometer of what commercial property insurance will cost. That's because the property is the best gauge of what claims may be made against the policy in the future. If you can show that the things the insurer is most concerned about are not concerns at all, you'll get a better rate.

The four things most insurers are concerned about are the roof, the electrical system, the heating system, and the plumbing. As you go into a potential deal you'll want to learn the loss history in each of those areas (insurance claims made), know what repairs or upgrades have been made, and plan to make your own contributions to upgrading those systems if they need attention. Doing so will enable you to negotiate the best insurance coverage possible.

In This Episode Darris Gross says...

• [1:07] The issue of commercial insurance: a hornets nest for any investor
• [2:46] How Darrin's insurance business connected him to real estate investing
• [11:38] Why the gap is so big between seller insurance costs and buyer insurance costs
• [14:01] How to navigate the difficulty of estimating insurance costs during underwriting
• [24:38] The things that add cost to the insurance coverage you need for your deals
• [28:32] How loss history (claims) impacts insurance pricing on commercial real estate
• [31:08] What can you do to minimize insurances costs from the start?
• [35:10] Do what you can to keep your policies up to date. Here's why

Resources Mentioned In The Episode

• [email protected] - Learn to be an asset manager and Investor
• Bellwether Enterprise (sponsor) - contact Will Oldham [email protected]

Connect with Darrin Gross

• http://JDarrinGross.com
• The Commercial Real Estate Pro Network: http://commercialrealestatepronetwork.com/
• The CREPN Radiot: http://commercialrealestatepronetwork.com/podcasts/

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

Subscribe to REAL ESTATE LAUNCHPAD onApple Podcasts || Google Podcasts || Android || SpotifyStitcher || TuneIn Radio || Google Play Music

Passive real estate investing may sound like something that doesn't really exist, like a unicorn or mermaid. But it's not. If you are a person with money to invest and are interested in putting your funds to work for you, passive investing in real estate syndications may be the way for you to get the returns you're looking for.

Jonathan's guests on this episode are a dynamic team - Julie Lam and Annie Dickerson, co-founders of Good Egg Investments. These two ladies have come on the real estate investing scene quickly and in a big way. They've done tens of millions of dollars in deals within a few short months. This conversation highlights how they met, the power of having the right partner, and how they go about building passive real estate deals for investors through multifamily syndications.

There's a big difference between passive and active real estate investing

When you think about real estate investing, what are the approaches that come to mind immediately? Fix and flips? Wholesaling? Apartment building investing? Those are the most common responses these days but there is another option for individuals who have the capital to invest but are not interested in doing deals or managing properties.

Are you ready for this? It's called passive real estate investing. It really does exist.

But if you're going to invest passively in real estate you need to have a trustworthy connection with the experienced syndicators who manage the deals that can make a good return on your money. That's where Julie and Annie of Good Egg Investments come in. In this conversation you'll hear how the Good Egg approach can benefit your investment portfolio in big ways, so be sure you listen.

With Good Egg, successful passive real estate investing begins with education

As with anything, it's important to know what you're getting into and to have realistic expectations when it comes to real estate investing. Julie and Annie understand that fact and have created intentional educational opportunities for their investors. In this conversation, you'll hear them talk about the educational path they walk with their investors, why they feel education is so important for those who invest in real estate passively, and why they are creating their FREE Passive Real Estate Investing Academy (and how you can take advantage of it).

Don't invest in real estate syndications blindly, learn how to do it the right way from Julie and Annie. Learn how they can help, on this episode of The Real Estate Launchpad.

Julie and Annie meet investors many ways, but Facebook is a significant source

It's always surprising to hear about the connections and business success stories that come out of simple social media interactions. When Jonathan asked Julie and Annie how they go about finding the people who invest with Good Egg, they immediately started talking about Facebook.

Facebook? Absolutely. The two of them are actively involved in many Facebook Groups that focus on a variety of family-related topics - and they've learned what to watch for as signs of financial need, investment interest, or other situations where their expertise as bridge-builders in the real estate investing world can benefit the people they interact with. It's a fascinating and successful approach, so don't miss hearing the details of how they make it happen.

Providing families with opportunities to invest passively for a better quality of life

Goodegg Investments started with a dream - a belief that anyone who wants financial freedom should be able to achieve it. The primary vehicle by which that can be done in their view is through real estate investing. In this conversation, Julie and Annie particularly mentioned the benefit passive real estate investing can be to young families and expressed how important it is to them to connect young parents with the opportunities they need to achieve financial independence.

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But it's not only about getting a good return for their investors. They also want to be involved in real estate deals that benefit the communities in which they are happening rather than exploiting them. That's a tall order, but one that the Good Egg team is committed to.

You won't want to miss this conversation. The refreshing way Annie and Julie approach building bridges between investors and syndicators is inspiring and their partnership shows what is possible when two people with complementary skills combine their efforts. Don't miss it.

In This Episode The Good Egg Investments Team says...

• [0:58] Bridging the gap between deal sponsors and passive investors
• [2:24] The purpose and story behind Good Egg Investments: connecting investors & syndicators
• [8:55] The difference between active and passive investing and why it matters
• [14:50] How Julie and Annie met and discovered the synergy possible between them
• [24:02] Getting into their first deal together in Huntsville, Alabama
• [28:19] How Good Egg connects with sponsors, vets them, and builds successful deals
• [35:45] Meeting investors through Facebook is a real strategy the Good Egg team uses
• [39:33] The great experience of being women in a male dominated industry
• [43:11] The 5 year dream for Good Egg Investing: Sponsoring their own deal
• [45:59] Advice for finding and building a great real estate investing partnership

Resources Mentioned In The Episode

• [email protected] - Learn to be an asset manager and Investor
• Bellwether Enterprise (sponsor) - contact Will Oldham [email protected]
• Bigger Pockets - http://BiggerPockets.com

Connect with Good Egg Investments

• Good Egg Investments - https://www.GoodEggInvestments.com/
• The Passive Real Estate Investor Academy - https://GoodEggInvestments.com/learn
• Learn how to invest with Good Egg - https://GoodEggInvestments/invest
• Julie (at) GoodEggInvestments.com
• Annie (at) GoodEggInvestments.com
• Good Egg on Facebook - https://www.facebook.com/goodegginvestments/
• Good Egg on Instagram - https://www.instagram.com/goodegginvestments/
• Good Egg on LinkedIn - https://www.linkedin.com/company/goodegg-investments/

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

Subscribe to REAL ESTATE LAUNCHPAD onApple Podcasts || Google Podcasts || Android || SpotifyStitcher || TuneIn Radio || Google Play Music