Podcast Summary
Access to reliable contact info and phone numbers for real estate investing, unlimited and free: DealMachine offers free access to high-quality contact info and phone numbers for real estate investing, Rent to Retirement offers turnkey rentals with no money down, private real estate funds provide passive income, and successful partnerships come from learning from past mistakes
DealMachine offers unlimited access to high-quality, reliable contact information and phone numbers for real estate investing, all fully compliant with the federal do not call list, at no extra cost. Additionally, Rent to Retirement allows investors to buy new construction turnkey rental properties with little to no money down. For passive income, investing in a private real estate fund like PPR Capital Management can provide monthly income without the hassle of property management. And finally, building a successful real estate investing partnership involves finding someone who has made mistakes and learned from them. The BiggerPockets podcast provides valuable insights from experienced investors and resources for those looking to learn about real estate investing.
Learn, Network, and Meet Industry Experts at the Bigger Pockets Conference: Secure tickets early for the October 6th-8th event in Nashville, hear from Brandon and David, learn about syndication, investing with a spouse, and raising money, and gain insights from successful investors like the Kenny's and David's inspiring analogy.
The Bigger Pockets Conference is an excellent opportunity to learn, network, and meet industry experts. The event, which will take place on October 6th through 8th, 2019, in Nashville, is expected to sell out quickly, so securing tickets before they're gone is essential. During the conference, Brandon and David will be present, and attendees can learn about various topics, including syndication, investing with a spouse, and raising money. Mark and Tamille Kenny, who were discovered at the Pacific Northwest Conference, will share their experience of growing from a few deals to having thousands of units through syndication. They will also discuss their journey of investing with their spouse and offer advice on raising money. Additionally, David will share an inspiring analogy about the Chicago Cubs and how the same principles can help individuals succeed in their real estate ventures. Overall, the conference promises to be an enriching experience for anyone interested in expanding their knowledge and network in the real estate industry.
Learning from passive investing in real estate deals: Gain experience in real estate through passive investing, learn valuable lessons, and consider hiring a property manager to avoid personal liability.
Gaining experience as a passive investor in real estate deals can be an effective way to learn the ropes before diving into larger syndication projects. However, being a passive investor does not automatically make one ready to become a syndicator. The speaker shared their personal experience of managing smaller properties themselves and learning valuable lessons, including the importance of having a third-party property manager and avoiding personal liability. While the work involved in managing smaller properties can be more time-consuming due to self-management, the process becomes more complex when raising capital for larger syndication projects. Ultimately, the level of involvement and cost-effectiveness depend on individual preferences and capabilities.
Learning from smaller deals and seeking partnerships: Start small to learn the ropes, make mistakes on smaller deals, and seek partnerships with experienced individuals to grow your real estate business.
Starting small in real estate can be beneficial for learning the ropes and minimizing potential losses, but partnering with experienced individuals can help accelerate growth. The speakers shared their experiences of starting small and eventually growing their portfolio to over 5,000 units. They emphasized the importance of gaining experience and making mistakes on smaller deals before moving onto larger ones. They also highlighted the value of having a partner with prior experience to help navigate the complexities of larger deals and avoid costly mistakes. Overall, their advice for those starting out is to take action, learn from smaller deals, and seek out partnerships with experienced individuals to help grow their business.
Partnering with experienced pros for first syndication deals: Start small, build relationships, learn skills, add value, and communicate effectively to secure syndication deals with credibility
Starting small and building relationships is key to getting your first syndication deal in real estate. When you're starting out and have a few properties, it can be challenging to gain credibility with brokers and sellers. One effective strategy is to partner with someone who has experience and a proven track record. This not only helps you learn the ropes but also adds value to the deal. Be patient and focus on building long-term relationships. Don't be desperate to close a deal quickly, and always strive to add value to the partnership. Additionally, learn the necessary skills, such as underwriting and raising money, to become a valuable partner. Remember, people want to do business with those they know, like, and trust. So, be respectful, reliable, and communicate effectively to build a strong network.
Approaching a Real Estate Agent Relationship as a Partnership: Clear communication, defining roles, transparency about goals, and a long-term focus are crucial for a successful real estate agent partnership. Both parties should contribute their unique abilities and be aware of their limitations.
Approaching a relationship with a real estate agent as a partnership is crucial for a successful experience. Unlike a traditional employer-employee dynamic, both parties must win for the partnership to thrive. This means having clear communication about expectations, personalities, and skill sets. Many people overlook this aspect and end up with disappointing results. It's essential to have an open conversation about each other's strengths and weaknesses and define roles and responsibilities. This partnership mindset can lead to a more productive and harmonious working relationship. Moreover, having this conversation early on can prevent misunderstandings and set the foundation for a long-term, fruitful partnership. It's important to remember that both parties should contribute their unique abilities to the partnership and be aware of their own limitations. This approach not only applies to real estate agents but also to other business relationships and partnerships. Another important aspect is being transparent about goals and expectations, and making sure that everyone is on the same page. This can help prevent potential conflicts and misunderstandings down the line. Lastly, it's essential to remember that building a successful partnership takes time and effort. It's not something that can be achieved overnight. The first year may not yield significant progress, but it's a necessary step in laying the groundwork for a strong and productive partnership.
Being specific about investment criteria for success: Define clear criteria, understand investor pool, and gain experience to make successful real estate investments
Having a clearly defined criteria and being specific about what you're looking for in real estate investments is crucial for success. This not only makes you appear more serious to brokers and agents, but also helps them identify opportunities that fit your needs. Being too general or fearful of missing out on potential deals can lead to wasted time and opportunities. Additionally, understanding your investor pool and their preferences is essential for a successful investment strategy. The speaker also emphasized the importance of gaining experience and becoming more confident in your abilities, which can help you make more offers and ultimately lead to more deals. Overall, being specific, understanding your criteria and investor pool, and gaining experience are key components for real estate investment success.
Focusing on a specific niche or criteria in multifamily syndication: Being clear about your niche and offering to investors can lead to greater success in multifamily syndication. Effective communication, deal analysis, and relationship building are essential skills.
Focusing on a specific niche or criteria in multifamily syndication can lead to greater success. By being clear about what you do best and what you're offering to investors, you can build a strong track record, improve your skills, and attract better deals. This was emphasized in the discussion about the importance of having a clear criteria for deal underwriting and focusing on a specific market or property type. The analogy of a graphic design company that does everything versus one that specializes in logos was used to illustrate this point. Additionally, effective communication with investors and understanding their interests and risk tolerance is crucial for successful syndication. Skills such as deal analysis and relationship building are essential for success in multifamily syndication. It's important to remember that investors have many options, and being clear and focused can help set you apart from the competition.
Building relationships for fundraising success: Authentic relationship building and follow-up are crucial for raising funds. Start small, use social media, and leverage existing networks. Be genuine and maintain connections through digital tools like LinkedIn.
Building relationships and having access to money are crucial in business, whether it's real estate or any other industry. Having the ability to raise funds, either through personal networks or events, is valuable, but it requires follow-through and authentic relationship building. In the beginning, starting small and leveraging existing networks can help in raising funds. At events, instead of handing out business cards, use social media to connect and follow up. The importance of follow-up cannot be overstated, as it sets you apart from others and keeps the relationship alive. In today's digital age, social media is an effective tool for follow-up and maintaining connections. Additionally, millennials are increasingly using LinkedIn for networking, making it an essential platform to consider. Remember, being genuine and building meaningful relationships is key to raising funds and succeeding in business.
Building relationships for business growth: Effectively convert potential investors by building relationships through multiple conversations, understanding their perspective, having common interests, and using effective communication skills.
Building a strong database of contacts through email addresses or phone numbers is crucial for maintaining relationships and growing a business, as social media platforms and companies have the power to cut off access at any time. To effectively convert potential investors, it's essential to build a relationship through multiple conversations, being persistent but not pushy, and understanding their perspective. Additionally, having common interests or relatability can significantly impact the likelihood of doing business together. Effective communication skills, such as active listening and asking thoughtful questions, can help build likability and strengthen relationships.
Effective connection building through active listening and remembering key details: Active listening and remembering key details about people can make them feel valued and confident, leading to deeper relationships. Focusing on personal strengths can help build stronger connections and succeed in business.
Building meaningful connections requires active listening and remembering key details about people. By genuinely engaging in conversations and showing genuine interest, you can make people feel valued and confident, leading them to be more open to deepening the relationship. Josh Dorkin's approach of writing down important details about people after meetings is an effective way to remember these connections. In our own businesses, understanding our roles and what we're passionate about can help us excel and find fulfillment. For me, community building and helping others get their first deal are what fires me up. For Tamille, it's managing broker relationships, deal analysis, and asset management. Remembering these details and focusing on our strengths can help us build stronger relationships and succeed in our endeavors.
Clear, simple structure for successful syndications: Keep it simple: Present deals clearly and avoid unnecessary jargon and complexity to attract investors
Successful syndications require a team effort and a clear, simple structure. Mark's business, for instance, involves a group of individuals with different roles, from deal analysis to fundraising and tech support. They have a team of 15 people, including an assistant, a tech guy, and a 15-year-old tech intern. The business structure includes a one-time 2% acquisition fee, a 70/30 split between investors and the general partnership with an 8% preferred return, and a 1.5%-2% asset management fee. They have explored waterfalls but keep it simple for most investors. Understanding your investor pool and their level of complexity is crucial. Presenting deals in a clear, concise way, avoiding unnecessary jargon and complexity, is key to attracting investors. Simplifying the deal structure and presentation can make a significant difference in securing investments.
Simplify and focus on fundamentals: Success comes from simplifying complexities, focusing on essential skills, and giving to others to build strong relationships.
Simplifying complex information and focusing on fundamental skills and relationships are key to success. Whether it's in business or personal life, overcomplicating things can isolate us from others and hinder progress. Success can be defined in various ways, but being a giver and achieving balance in different areas of life are important. The Chicago Cubs manager's approach to drilling fundamentals with professional baseball players is a great analogy for this concept. By returning to the basics and mastering them, we can experience success and growth. Additionally, the importance of giving and meeting others' needs was emphasized as a crucial aspect of success and building strong relationships.
Balancing Business and Personal Life in Couple Partnerships: Continuously striving for balance in business and personal life is essential, but finding the right balance can be challenging for couples in passionate business partnerships. Off-market deals, which are not publicly listed, can offer more straightforward negotiations and may be a solution for couples seeking a balance between their work and personal lives.
Achieving balance in life, especially in business partnerships, is a continuous effort and not a perfect state to be reached. The authors of "The One Thing" emphasize that it's okay to go a little far one way and a little far the other way sometimes. However, finding the right balance to maintain relationships and individuality outside of business can be a significant challenge for couples who are passionate about their work. In the discussion, the speakers shared their personal experience of balancing their business partnership with their personal relationship and how they are seeking help from a business coach and other married business partners to find a solution. The speakers also shared that they do most of their deals through brokers but now focus more on off-market deals. Off-market deals refer to properties that are not publicly listed and may only be offered to a select few potential buyers. The speakers defined off-market deals as those that are not listed on the website or emailed to a wide list of potential buyers. In their experience, they have found that negotiating the price for off-market deals can be more straightforward since the sellers have a smaller pool of potential buyers.
Negotiating directly with the selling broker and syndicating the deal: Direct negotiation with the selling broker and syndicating the deal with investors can lead to a better real estate transaction, despite the seller's representative role.
In real estate transactions, the primary goal is to get the best possible deal for yourself, not just the lowest price. Negotiation is essential, but it's crucial to understand that the selling broker represents the seller's interests, not yours. In this case, the speakers negotiated directly with the selling broker and chose to syndicate the deal with investors, raising $4.8 million in equity and assuming a loan from the seller. The property, valued at $15.4 million, required significant management improvements due to poor tenant treatment and uncollected rents.
Setting clear expectations and rules with property management: Effective communication, raising sufficient funds, and anticipating unforeseen expenses are essential for successful real estate investments.
Effective communication and clear expectations with all parties involved in a real estate investment deal are crucial. In the discussed deal, the investors learned the importance of setting rules and communicating them clearly to their property management company to avoid unexpected situations. Additionally, they discovered the importance of raising enough funds for a project, understanding the time it takes for lenders to reimburse funds, and being prepared for unforeseen expenses. Overall, the experience taught them valuable lessons that will help them make more informed decisions in future investments.
Exploring Alternative Financing Options for Real Estate Investing: Instead of relying on high-interest credit cards for unexpected expenses, consider alternative financing options such as bringing in an equity partner or thoroughly vetting a syndicator before investing.
When facing unexpected expenses and financial hardships, it's essential to explore alternative financing options instead of relying on high-interest credit cards. For instance, a real estate investor named Ryan is going through a tough time with multiple repairs required on his property, and he's maxed out his credit cards. A better solution for him would be to bring in an equity partner and give up a portion of the ownership while still maintaining control of the management decisions. This move would help him avoid the high-interest rates of credit cards and potentially make the deal more financially viable. Another important takeaway is the significance of thoroughly vetting a syndicator before investing your money with them. Asking questions, checking references, and researching their track record are crucial steps to ensure you're working with a trustworthy and reliable partner. Remember, even if someone seems trustworthy initially, it's essential to do your due diligence to minimize potential risks. Lastly, be cautious when dealing with sellers who refuse to provide detailed financials. This could be a red flag, and it's essential to understand why they're unwilling to share this information. If possible, try to find alternative ways to obtain the financials or consider looking for other investment opportunities.
Evaluating Commercial Real Estate Investments Without Financial Information: Successful investors conduct thorough due diligence when financials are absent, consider lowering offer, and maintain a resilient mindset.
When evaluating a commercial real estate investment opportunity, having access to accurate financial information is crucial. If a seller is unwilling or unable to provide this information, it's essential to conduct extensive due diligence on your own and be prepared to walk away if you're not comfortable. The absence of financials could indicate a range of issues, from simple disorganization to more serious misrepresentations. To incentivize the seller to provide the information, consider proposing a lower price if they refuse. Ultimately, successful real estate investors maintain a resilient mindset and are willing to put in the necessary work to uncover the facts before making a decision.
Navigating Obstacles in Business and Marriage: Grit, mindset, and balance are essential for success in both business and relationships. Persevere through challenges, maintain a confident mindset, and attend networking events to build valuable connections.
Success in business and relationships requires resilience and grit. Mark and Tamille, founders of Think Multifamily, shared their 24-year journey of marriage and business partnership, emphasizing the importance of learning to navigate obstacles and maintaining a confident mindset. While having the right mindset is crucial, action is what ultimately leads to success. The study they mentioned highlights the significance of grit – the ability to persevere through challenges. Both personal and professional relationships require effort and balance, and it's essential to have a system in place to manage both effectively. Mark and Tamille's approach to dividing responsibilities and integrating their personal relationship into their business is an excellent example of this. Additionally, attending meetups and networking events can lead to valuable connections and opportunities. David Green encouraged listeners to take advantage of these opportunities and consider joining his team if they're in the Northern California Bay Area. Overall, the importance of grit, mindset, and balance, along with the power of networking, emerged as key takeaways from this episode.
Maximize your real estate investment journey with local market experts: Working with local experts through BiggerPockets.com/deals can provide valuable insights, help analyze numbers, and build confidence for informed decisions, potentially leading to successful real estate investments.
Working with local market experts through BiggerPockets.com/deals can significantly enhance your real estate investment journey. These experts can provide valuable insights into neighborhoods and market trends, help analyze numbers, and build confidence for making informed decisions. By securing an investor-friendly agent through this free resource, you're one step closer to getting the deal and moving towards financial freedom. Remember, past performance doesn't guarantee future results, and it's essential to consult with qualified advisors before investing. Keep in mind that investing involves risks, and only risk capital you can afford to lose. BiggerPockets LLC disclaims any liability for damages arising from reliance on the information presented in this podcast.
