Multifamily Missteps Hosted by Jerome Myers

Aiming for a huge target is not at all bad, but the harsh reality should also be considered. In this episode, we feature Matthew Drouin and his story of doing a deal that entails facing problematic neighborhoods and people down on their luck. He talks about his experience of regret looking upon himself as a hero and brings the invaluable lessons he learned from it. [00:00 - 08:51] When the Harsh Truth Slaps, We Go Back to What MattersBack into real estate by accident as a residential agentThe struggles of being poor in an affluent neighborhoodWitnessing his parents die young without time to enjoy life[08:52 - 18:19] From Hero Complex to Midas Syndrome: The Horror StoryWhen there is a level of sketchiness in the neighborhoodFacing the mental stress of pulling off a risky dealRealizing the significance of sticking to your principles[18:20 - 19:16] Closing SegmentUnexpected things can happenFinal words Tweetable Quote:“ The biggest mistake I made on this whole thing was right in the beginning, I got the hero  complex and also the Midas syndrome on this. And I was not doing it based upon logical reasoning in terms of sticking to my guns and all the principles that had made me successful.” - Matthew Drouin Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show https://www.facebook.com/groups/157335752156211/Support the show

Holding your money too tightly to invest for inspection would be a big mistake. Michael Sampson notes that it's important to work with a good real estate broker and have professional inspections done on your properties to make sure they're in good condition. He also advises patience when growing a real estate portfolio, as successes can take time to build. [00:00 - 07:13] Lessons Learned from Multifamily InvestingSpend money upfront for inspectionDo your research and work with a good real estate brokerHave an exit plan in place if things go wrong[07:14 - 10:37] Multifamily Operator Finds Success with New FrameworkBe wary of residents with no presentable referencesMichael shares his tips for getting started in multifamily real estateGet educated and build your network through meet-ups[10:38 - 13:06] Closing SegmentGet the education you needFinal words Tweetable Quote:“ You just have to go out and do it. It can be frightening at first, but once you get into it, it's almost just like a single-family home. It's just a bigger asset. And then you have to spend some money upfront on an inspection. That's the cost of doing business.” - Michael Sampson Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show https://www.facebook.com/groups/157335752156211/Support the show

How much do we know about the property before we make a deal?  In this episode, Tommy Brant addresses the importance of financial due diligence and how knowing the owners is just as essential as knowing the assets. Tommy also shares how taking the lead on the deal helped create value for him and his partners. [00:01 - 17:18] The Deal that Eluded Me Tommy shares how he got his start in real estateForming a team with the broker's contactFinding problems during financial due diligence[17:19 -19:44 ] How to Avoid Mistakes During Financial Due DiligenceUnderstand the previous owners and the propertyEducate yourself about the marketNetwork with like-minded people[18:37 - 20:06] Closing SegmentLook for people to mentor youFinal words Tweetable Quote:“You really need to understand the previous owners. What are the operators like? Did they have a business plan? What did they neglect? Is there a theme that we're seeing in all the units, So whenever people are talking about hard earned money, I wanna know the owners just as much as, I would know, the asset.” - Tommy Brant  Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show (https://www.facebook.com/groups/157335752156211/)Support the show

Planning to get the deal requires consideration of a strategic exit too. In this episode, Sam Wilson talks about his investment and exit strategies, avoiding mistakes in the future, and how important it is to make sure that there are out clauses in contracts in order to protect oneself. Listen closely as Sam provides listeners with valuable advice on how to make life count by doing the things that don't always count. [00:01 - 13:36] How to Secure a Contractual Agreement with SellersHave reasons for walking away from a deal, even if it's difficultSam discusses his background in the real estate spaceSlow down and get to know the seller before getting into a contract[13:37 - 18:36] Simple Contracting Tips to Protect Yourself from Multifamily MisstepsHave a written contract that outlines the terms of the dealHave an exit strategy and ensure to understand the seller's motivation to sellContracts should be simple and easy to read, with no hidden fees or penalties[18:37 - 20:06] Closing SegmentMake life countFinal words Tweetable Quotes:“There are unfinanceable deals out there. So, you know, whatever your reasons are, make there’s enough in there that’s broad enough to get out of the deal… Don’t be like me who is afraid to walk away from deals.” - Sam Wilson“That’s the thing about mistakes. I think that entrepreneurs, in particular, are willing to fail… And we’re going to fail… And when you do that, you just got to be able to learn from that lesson and remember those mistakes.” - Sam Wilson Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

Is it possible to generate passive income while on active duty? Of course! Listen in as Tim Kelly and Jerome Myers emphasize the importance of education and networking to becoming successful in real estate investing. In this episode, Tim explains how to create a community of like-minded individuals in order to leverage relationships and access opportunities. Tune in as he shares stories of his own successes and failures. This is a signal for you to take the necessary steps to achieve your own goals. [00:01 - 10:23] Creating Financial Freedom on the Way to SuccessThe importance of education and connecting with successful peopleLearning allows for avoiding mistakes and achieving success fasterFinding a community of people who share your goals[10:24 - 22:03] Finding Like-Minded Individuals for Support and AccountabilityHelping veterans transition into civilian life and create freedomUnderstanding unique experiences is key to building relationshipsHow the ADPI fund helps investors in commercial multifamily projects[22:04 - 25:53] Closing SegmentContinue your personal developmentFinal words Tweetable Quotes:“You can learn the mechanics. The more important part is adapting and growing your mindset.” - Tim Kelly “There is no such thing as failure. You either win or you learn and move forward.” - Tim Kelly  Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

Many people can get involved as you start your real estate journey, so how do we make sure that the people we have are worthy of our trust? Verifying information and clear communication are keys. In today’s episode, Jerome Myers interviews Dave Seymour, who has a background as a firefighter turned into a real estate investor. Listen as he shares his struggles with the consequences of the downturn in the market.  They discuss how property values can go down, even in good times, and how this affects their decision-making. [00:01 - 04:41] Opening Segment Suffering financial pain and being forced into entrepreneurshipProgressing the business and educating peopleRiding the roller coaster of real estate[04:42 - 19:01] Understand Who Controls the MoneyThe one who controls the money winsThe effects of high inflation and current eventsBeing solid in predictions than someone who is just starting outStaying in the trenches and never giving up[19:02 - 24:04] Be Careful of Whom You TrustThe harsh truth when you are taken advantage ofCreating a flow chart to make it easier for potential investorsAdvice on verifying information before taking any action[24:05 - 25:53] Closing SegmentNever give upFinal words Tweetable Quotes:“He who controls the money wins his race” - Dave Seymour“Never give up, never lay down, never surrender trust, but verify.” - Dave Seymour Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

Wisdom comes from experience and learning from mistakes. Perhaps for those starting in multifamily investing, being a bit more conservative at first and taking calculated risks is the way. Do not take for granted the relationships you are developing along the way as this may turn out to be more valuable than what you are earning. My guest, Justin Britto, talks about how he became an investor, what mistakes he has made in the past, and how he has learned from them. He also shares advice for aspiring investors.[00:01 - 05:40] Opening Segment Observing a lot of demand coming in from both buyers and rentersHow the economy in Phoenix has been growing rapidlyThe aim to mitigate risk and make money for investors[05:41 - 16:12] Transparency is Always KeyBroker relationships to move quickly and efficiently in the private capital marketIndependently analyzing deals and owning a property management companyGaining trust despite a lack of track record -  transparency is keyTactics to employ for saving money on renovations through system integration[16:13 - 25:44] Addressing the Barriers to Get StartedFear as a limiting factor in the ability to invest in day trading stocksHow relationships can be more valuable than moneyOpt for your own financing if possible for a lower interest rate on a purchaseYou don’t need a perfect partner - do the work and put in the effort[25:45 - 27:24] Closing SegmentKeep the fortitude so you won’t have to turn backFinal wordsTweetable Quotes:“The important thing in the situation for me is just being transparent with the investors and just letting them know along the way, hey, this is what's going on.” - Justin Britto“Don't wait. You don't need to have the perfect team in place. You don't need to have the perfect partner in place to get started. It's just put in the action, put the footwork in, and do your due diligence research, and you'll figure stuff out along the way.” - Justin BrittoLearn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

Do you have an exit strategy? A lot of risks go into your investment if you do have one. In today’s episode, my guest, Ben Fraser, discusses the implications of ensuring assets worth more in the future and being able to protect the investment at the same time. Listen closely as he talks about the dangers of over-leveraging in the current market environment and how to avoid getting trapped in a cycle of debt.[00:01 - 05:26] Opening Segment Ben Fraser on the managing real estate turbulenceFiguring out deals that make sense in the current market[05:27 - 17:31] Understand the Cyclical Nature of the EconomyBad capital structures and deals cause huge lossWhy taking out the finance to sell during a recession is a bad ideaBen’s thoughts on the current state of the economy[17:32 - 21:44] Be Aware of the Capital StructuresThe need to be mindful of inflation when doing dealsHow the current economy is affecting the business of real estateAdjusting the budget arises from economical trends[23:46 - 25:18] Closing SegmentBe careful not to lock in a lossFinal wordsTweetable Quotes:“Inflation - it kind of cures all ills in a lot of senses, but it only cures them if you can hold on to the asset through the challenges.” - Ben Fraser“Watch out for the greater fool strategy, which is ‘I'm just going to do this plan and hope that the next person is willing to pay what I just paid for this and I can manage through it.’ ” - Ben FraserLearn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

What makes the real estate industry attractive is how you can attain a huge cash flow passively. However, is that the truth or is there something more? In today's episode, Axel Ragnarsson discloses his story and reminds us of the due diligence to establish when assessing deals, the ramifications of not working with key persons in transactions, and the dangers of complacency and how it can put you in a tough spot.[00:01 - 04:49] Opening Segment Get to know today's guest, Axel RagnarssonHe shares his podcasting and real estate journeyMissing out on the best deal because of his job[04:50 - 13:31] Pulling the Lever on Equity, Not Just CashflowThe danger of not understanding the construction side of the businessCost basis approach: Why this is importantMore than cashflow and passive income[13:32 - 22:45] Complacency Puts You in a Tough SpotAxel shares the challenges in his first few deals on refinancingThe financial ramifications of not having a brokerGood deals no longer growing from trees[22:46 - 24:20] Closing SegmentCheck out Axel’s podcast and reach out to him!Final wordsTweetable Quotes:“You learn a ton of stuff as you grow. Right? I think we all obviously do. And there's so many things you'll learn. ” - Axel Ragnarsson“Real estate's a game where we all get into it for cash flow and passive income. And I think that's what entices a lot of people to or brings a lot of people to real estate, but you really make money by growing the equity and growing the value of a property or, you know, buying something below market taking your cash out buying something else.” - Axel Ragnarsson“I think that we're at this point in the business where good deals, they're not just growing on trees, right? It's not like it's easy to go out there and, and get a good deal. So you really got to maximize what you have, like in front of you.” - Axel Ragnarsson Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

It is perfectly normal for some people to leave you and come into your life. In real estate, however, it should not be. When the people leaving your properties are more than those who come in, you should realize there’s a problem, and you need to pinpoint and address that problem fast. Luckily for Sonya Rocvil, she realized that there’s something wrong with their property and they were able to address it. [00:01 - 03:07] Opening Segment I welcome today’s guest, Sonya Rocvil Connect with SonyaLinks below[03:08 - 13:46] More People Moving Out Than Moving In How she landed in the real estate space Why their occupancy rates were not going upWhat she learned about this misstep[13:47 - 23:02 Digging Deep into The Issues Learn how to leverage bridge loans The question you should ask in closing a deal What changed in their process to make sure the misstep will not happen again[23:03 - 25:54] Closing SegmentDon’t miss these words of wisdom from Sonya! Final wordsTweetable Quotes:“You still have to be diligent and you’re screening [potential tenants].” - Sonya Rocvil“You have to be willing to really dig deep sometimes to find out the issues.” - Sonya RocvilYou can connect with Sonya by emailing sonya@bedrockreinvestors.com or get in touch with her on LinkedIn. Check out Bedrock Real Estate Investors to acquire multifamily properties with potential economic growth and opportunities. Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

When the property turns out to be way too problematic to handle, it is easier to give up on it. So, should we do it? Alex Moore argues otherwise, saying that as long as you have multiple plans in place, it is even harder not to be successful in real estate investing. Also, she leaves a valuable tip for any investor to avoid huge headaches and uncover deeper issues - touring the property at night - and there are good reasons for that.[00:01 - 04:23] Opening Segment Alex Moore on being a nurse practitioner for ten years and doing multifamilyGood lessons from small multifamily investing - knowing the location very well[04:24 - 08:14] Why You Should Opt for a Walkthrough At NightWhy you should go back at night instead of only a day tourWhen there are more unpleasant outdoor activities at nightThe hard lesson of choosing your tenants[08:15 - 11:39] Do Your Research and Get InvolvedGetting more information when you don’t know who’s payingSelf-management due to smaller marginsApplying the value of reconnaissance to multifamily[11:40 - 15:28] Closing SegmentHaving multiple plans is keyFinal wordsTweetable Quotes:“Go back at night… Nighttime tells you a lot more about what's going on in an area than what's going on while people are either at work, or there are fewer people there.” - Alex Moore“Asking more questions upfront and seeing if you can get more information is also a good thing too, that we learned that hey, are all the tenants paying on time? And if they're not, what's going on right now? What were the circumstances for that tenant? And are we pursuing any legal action at this point?” - Alex Moore“I would encourage everybody who's concerned about all the things that can go wrong in real estate, to still get involved, because honestly, you will make it… You can mess up a lot of ways and still recover as long as you have a plan B and Plan C. So have multiple plans to turn an asset around because that is really the key.” - Alex MooreLearn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

Are you putting your opportunity fund in the right places? Although it is common to think that simply putting your money in the bank account is ideal because it is safe and risk-free, clearly, it is not the way to supercharge your investment. As Rod Zabriskie and Blake Brogan stated, we should consider playing around with the idea of compound interest and get the money working for us. Listen as they discuss the ways to be smart with how you store your opportunity fund.[00:01 - 06:41] Opening Segment Rod Zabriskie and Blake Brogan on the investment optimizer strategyA better way to utilize your opportunity fund - leveraging the dollars[06:42 - 12:40] A Reconsideration of Opportunity Fund StrategyMitigating the risks through insurance policies Taking advantage of the guaranteed growthHow investing in life insurance companies can be safer than the bank[12:41 - 22:03] The Magic Happens with Strategic AllocationWorking with A-rated companies and how they have the upperhandUnderstanding the idea of compound versus simple interestHaving the asset, no loan, acquire the original investment, and repeat[22:04 - 31:10] Get the Money Working for YouWhen banks have lazy money sitting aroundWhy a whole life insurance would be better than termConsidering a source of tax-free income in retirement[31:11 - 36:05] Closing SegmentGet your dollars working more efficientlyFinal wordsTweetable Quotes:“We're utilizing these [insurance] policies as a way to enhance what our dollars are doing in between deals. So then when it comes time to leverage them or utilize the capital, we have the entire balance continuing to earn and grow… then very literally, you can borrow against it or collateralize, or leverage it to go invest in the things that you are already going to invest in anyways.” - Blake Brogan“You, of course, could be building it [life insurance] up for one to three years if you're planning on investing in the future. But this isn't something that's going to restrict any of the active investing that you're going to do.” - Blake Brogan“Sometimes people will say, Okay, well, that's great. I've built all this money in a life insurance policy. And nothing's gonna happen until I die, right? Well, that's not the case. This also becomes a source of tax-free income in retirement for people.” - Rod ZabriskieLearn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

When it seems like everything is going as planned, suddenly, you went way under budget for the renovation. That was the problem Chris Grenzig had to face in his deal. He shares the importance of surrounding yourself with people who know more than you and why you should always ask more questions and look for potential drawbacks to plan for contingencies. Listen as he shares this huge hurdle that was eventually turned around with a better plan and increasing rental growth.[00:01 - 06:28] Opening Segment Chris Grenzig on getting his feet wet in the business worldHow COVID-19 triggers the shift in focus on the world and business[06:29 - 17:03] A Huge Budget Deficit for Renovations Saved by Rent IncreaseSurrounding yourself with those operating at a higher levelA major underbudget mistake from 13k to 30k per unitPushing from the initial partial renovation to a full-on revampIncreasing rent growth higher than the projection[17:04 - 24:49] Closing SegmentAsk more questions and look for potential pitfallsFinal wordsTweetable Quotes:“If you're starting from scratch on everything, you're basically at everybody else's mercy at that point.” - Jerome Myers“I probably should have brought in more experience earlier on and leaned on them heavier than I did, I think I was probably a little naive… and not really asking the questions of like, ‘Hey, what can go wrong with this plan?’ and not really looking at contingencies and backups and potential pitfalls.” - Chris GrenzigLearn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

We always hear about the importance of due diligence. Well, we can never say it enough as Ayal Joshua shares his real estate experience of a costly fix that shouldn’t have happened. He goes over the turn of events and the steps he had to undertake to make the property function without compromise and worked on lowering the cost. He emphasizes the value of going beyond what’s required and practicing caveat emptor: “Let the buyer beware.”[00:01 - 03:49] Opening Segment Ayal Joshua on getting into multifamily as an electrical engineerInvesting in your own backyard to see all the bad, the good, and the ugly[03:50 - 12:46] Costly Fixes That Shouldn’t Have HappenedWhy you should go granular and do the septic system inspectionA costly mistake that could have been avoided through due diligenceFrom $400 to $60 a month for city water and sewer[12:47 - 15:32] Considerations for Cutting Down CostCutting down costs without the compromiseThe virtue of doing more than is required[15:33 - 19:24] Closing SegmentDo your due diligence and do the inspectionFinal wordsTweetable Quotes: “It all starts when you're purchasing the property. It all starts with your due diligence… The other thing is, you've got some properties that are connected to the city sewer, so they have septic tanks, and many people don't do the septic tank inspection. Sometimes that's critical.” - Ayal Joshua“You have to exercise the letter buyer beware, you know, the caveat emptor. Do your due diligence, do the inspection.” - Ayal JoshuaLearn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCGo to rentometer.com to get a free 7-day trial and try it out for yourself.Rentometer: your source for local rents, comps, trends, property details, and more.Support the show

You enter a deal and the underwriting reveals that there is too much expense allocation for the property topped with bandaid fixes to solve… What happens then? Williams Edwards shares this noteworthy experience that ended up with reduced expenses, replaced property management team, and even lower tax burden. He also highlights the value of consultancy for better tax benefits. Listen as he shares his story of starting from the ground up and now investing in 5000 units.[00:01 - 04:29] Opening Segment Williams Edwards on the W-2, the software systems, then to real estateWhen multifamily ticks all the boxes as a GP and a KP[04:30 - 12:21] The Dangers of Overlooked Bandaid FixesGoing for a 37-unit instead of a 100-unit…why?The perks of operating with your own moneyWhen the maintenance only go for bandaid fixes without replacement[12:22 - 21:44] Steps to Take for Better PositioningUndertaking the steps to vetting the property managersWhen the underwriting reveals too much expense allocationConsidering loans, interest rates, and tax valuation for better positioning[21:45 - 24:49] Closing SegmentDo your best and follow your heartFinal wordsTweetable Quotes:“A lot of people who come into the space think, ‘Oh, it's gonna work from day one, like it's new, out of the box.’ And that's just not the case. ” - Jerome Myers“You don't really know what you got out of the gate, you know? Just do your best job. Follow your heart.” - Williams EdwardsLearn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCGo to rentometer.com to get a free 7-day trial and try it out for yourself.Rentometer: your source for local rents, comps, trends, property details, and more.Support the show

Dealing with various properties can be such an interesting journey where you’ll encounter issues you never thought would occur. For Justin Fraser, it was about environmental issues and because of this experience, the need to have contingency plans as you go through deals becomes all the more essential. When this happens, staying positive and practicing due diligence in the process can make all the difference. [00:01 - 05:24] Considering Exits and Doubling the EquityJustin Fraser on handling 670 units as an asset managerThe reason for the exit of a monster dealSelling properties more than double in four years[05:25 - 12:44] The Various Factors in Determining the Strongest OfferHitting the tipping point - the urge to sellThe factors making the strongest offer versus the highest priceWhat to do when environmental issues arise[12:45 - 17:43] The Value of Contingency Plans Dealing with air quality and safety issues in the propertyPlowing through with diligence in the process[17:44 - 21:47] Closing SegmentStay positive and make many plansFinal wordsTweetable Quotes:“There are a million things, we've never dealt with this before. I've never experienced it, but you learn on the fly. And you know, at the end of the day, we would have to do the right thing. We always try to do the right thing.” - Justin Fraser“Stay positive… It's easy to kind of get down on yourself, but just take a breath, make a plan, and if maybe it's a contingency plan A through Z, but make as many plans as you can.” - Justin FraserLearn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

Cheaper is better, right? Well, when it comes to real estate services, that is usually not the case. In fact, the cost for you can even be higher in the long run. Arie van Gemeren highlighted this as he shares the journey of multiple missteps he encountered in his deals. He discusses the dangers of not being properly capitalized - imagine if a significant amount has to be escrowed by the bank a few days before the deal! Arie also stresses the need to understand code compliance for less stress in property management.[00:01 - 06:00] Opening Segment Arie van Gemeren on launching his investment companyThe real estate landscape on the West Coast[06:01 - 12:02] An Empty Bank Account After a DealMaking mistakes with your own moneyThe importance of capital leftover in the bankStrong relationships with your loan broker[12:03 - 23:26] Do Not Pick Services with the Lowest Cost The danger of the cheapest cost providerHow predictability is more important than the priceWhen a unit is not permitted and legal[23:27 - 24:48] Closing SegmentYou better not go with the cheapest contractorFinal wordsTweetable Quotes:“I'm in the investment business. I know, someday, I'll probably want to manage investor money. But I really need to learn with my own money, make my own mistakes on my own dime before I try to go bring money in from investors.” - Arie van Gemeren“My first piece of advice for anyone is to always make sure you have capital leftover in the bank after you buy a deal.” - Arie van Gemeren“Have a strong relationship with your loan broker, ask, make clear the things you're concerned about, and make sure that banks not going to play games with you. ” - Arie van Gemeren“Exhaust all resources to find out if your units are all legal and conforming before you buy something.” - Arie van GemerenLearn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

Let’s talk about tax - that three-letter word is daunting for many people, but when you are guided by a professional, it doesn’t have to be too intimidating. It’s truly discouraging not to acquire the expected income due to unanticipated deductions, so having a professional leading you can help limit this frustration. Larry Pendleton talks about his mission as a CPA – helping people achieve financial freedom through real estate and taxes. He highlights the need for real estate investors to create their tax strategy to successfully grow investments.[00:01 - 06:06] Opening Segment Larry Pendleton on accountancy and being meticulousGetting started with real estate investingStriking the balance to leverage rentals[06:07 - 13:45] The Disclaimer “Talk to Your Tax Advisor”The misconceptions of incentive systems as LPsKnowledge is not as assurance for smooth applicationLeveraging other deals for potential offsetting[13:46 - 21:02] Crafting a Tax Strategy to Grow InvestmentsWhy TurboTax may not be the best optionConversations to have with your advisorThe audit side of real estate investing[21:03 - 25:39] Closing SegmentHave an advisor to limit frustrationsFinal wordsTweetable Quotes:“Who knows if your tax advisor is fully aware of how the tax law works when it comes to real estate?... It becomes this conundrum… How does it all relate to you? It’s when you have to kind of sit down and get the consultation that's needed.” - Larry Pendleton, CPA“You're not going to go to urgent care for heart surgery, and you're not going to go to a dentist if you have a foot problem. So you have to find the right specialist… If you're not getting the value that you're expecting to get, like, those are the upfront conversations that you may be having with whoever is potentially going to be your advisor.” - Larry Pendleton, CPA“My mission in life is to help as many people achieve financial freedom through real estate and taxes.” - Larry Pendleton, CPALearn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

Real estate investing can be crazy and scary. Things won’t always go as planned and Angel Williams’ story will get your heart racing knowing the ups and downs their team had to face just to get to the finish line. Sometimes, the members of an LLC had to be restructured and exits can happen for numerous reasons. The important thing is to keep the respect and strive for a clean transition to establish transparency. Angel also reminds us of the benefits of surrounding yourself with experts and the importance of solidifying your documents for a smoother close.[00:01 - 06:12] Opening Segment Angel on closing a deal in a not-so-average method The benefits of good relationships with brokers[06:13 - 17:41] Establishing Respect Through Difficult ConversationsStructuring of teams and dealing with exitsCapital raising and transparency through the switchPositioning oneself in the virtual world through meaningful interaction[17:42 - 23:12] At the End of the Day, It’s All About the CloseThe significance of solidifying the lending documentsWhen several versions of the closing documents appearGetting across the finish line[23:13 - 25:39] Closing SegmentThings don’t always go as planned and that’s okay Final wordsTweetable Quotes:“Teams change, and that's okay… You don't just want one or two people to be thought of as the people that are bringing in all the capital.” - Angel Williams“Transparency is the name of the game. If you want to have trust, there is no way around that.” - Jerome Myers“It's kind of like tennis, you play somebody who's better than you, you're going to get better. If you surround yourself with experts in the real estate, investing space, you're going to get more knowledgeable and you're going to get better.” - Angel Williams“When it gets tough, it's okay. And things aren't gonna go like you think they're gonna go. And that's actually normal. It's gonna be scary, and it's gonna get crazy.” - Angel WilliamsLearn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show

Being a limited partner entails fewer responsibilities. However, what would you do if the GPs disappear when things go wrong? For Marc Weisi, he chose to grab the issues by the horns and save the day. In this episode, he emphasizes the significance of practicing due diligence and putting your head down to do the work to save a good deal. Listen as he shares his experience of going deeper into the ins and outs of managing a deal, the checklist when vetting sponsors, and the sacrifices he had to make to get this done.[00:01 - 04:00] Opening Segment Welcoming today’s guest, Marc WeisiMerging syndicators and acquiring his first deal during COVID-19Taking over the property as a limited partner[04:01 - 12:27] When the GPs Disappear When Things Go WrongThe impact of track records when vetting sponsorsTroubles of an unextinguished old mortgageRestructuring the entity for equal equity distribution[12:28 - 23:34] Saving the Day Triggers a Confidence BoostWhat to look for sponsors - records, references, and partnersPutting your head down and getting the work doneWhen the financials do not tell the whole picture[23:35 - 25:56] Closing SegmentMitigating mistakes and working through themFinal wordsTweetable Quotes:“The first and foremost concern is really, who is running that deal? Because you can have the most smoking deal on paper in the world, [but] when it comes down to it, it's about the execution. Do the people that are running the particular deal, you know, have your best interests in mind, and do they have the experience to allow them to achieve what they're saying they can achieve? ” - Marc Weisi“It just comes down to, you know, putting your head down and doing the work when it's required…. Once we [Marc and an LP] figured out that that deal was going sideways, and we kind of turned it around. That gave us a little bit of confidence. And we started to look out, okay, let's do a deal on our own here. And that, you know, obviously, we had a little bit of a learning lesson along the way there.” - Marc WeisiLearn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCCSupport the show