MFM Live: Our 1st Online Monthly Meetup with Q&A

Ever want to pick the brains of 3 people who have 30+ years of real estate experience, have purchased 1200+ properties, and currently own/control 2000+ apartments? Well here is your chance with an extensive Q&A

VIDEO TRANSCRIPTION

00:00
but let’s do it let’s go awesome I’m a
00:02
how many people do we have logged in
00:04
right now is there 100 right now we had
00:05
to cap a hundred yeah we are awesome
00:09
love it can we have more can we get
00:13
leeway from well you know we’re gonna
00:16
let it go with 100 right now we had 250
00:18
people register we’re gonna record it
00:21
and then we’re going to share it into
00:22
our Facebook group but because then
00:25
we’re going to do this every month we
00:26
want to make sure that people stay
00:27
pretty active we might open it up to a
00:29
larger group later but we want to keep
00:31
it to a hundred max at this time with
00:34
that being said thank everyone very much
00:37
for attending our first multifamily
00:40
masters live online zoom meetup we’re
00:47
going to do this every month typically
00:49
the third Monday of the month 9 p.m.
00:52
Eastern 6 p.m. Pacific that gives
00:54
everybody kind of a s for work you
00:59
should be a little bit flexible
00:59
hopefully everybody can make it but if
01:01
you can’t it will be recorded and we
01:03
probably will be sharing it with the
01:05
public with that being said what is
01:08
multifamily masters we’re in the process
01:11
of creating the world’s largest
01:13
multifamily cash flowing platform right
01:18
now in the last 4 months or so we have
01:20
about 60 meetup chapters across the
01:22
world we just launched our first one in
01:24
Hong Kong and we’re in several markets
01:26
across the US every week we’re getting
01:30
more and more requests so if you’re
01:32
interested in becoming a professional in
01:34
this space you would like to host your
01:36
own multifamily masters meetup in your
01:39
local region reach out to us we will
01:43
make it happen there is an interview
01:45
process because demand has been very
01:47
high what our goal is to get to 200
01:50
meetups before some time this summer I
01:53
don’t have an exact date for it I think
01:55
we can accomplish it I’m a hundred
01:56
percent sure we can accomplish it we
01:58
have an awesome team of people behind us
02:00
and I’m super proud of what we are
02:02
creating we have a large Facebook group
02:05
hopefully someone will put that Facebook
02:08
group in the comments below share it to
02:11
the comments below make sure you join
02:12
that Facebook group
02:14
and our goal is to create or add as much
02:17
value as much content as possible we
02:21
have a monthly newsletter and of course
02:23
we have this and this is the first one
02:26
our first multifamily master’s online
02:28
Meetup our goal is to touch people kind
02:31
of three times a month we have the
02:34
chapters across the US that’s awesome we
02:36
understand it’s a little bit tough for a
02:38
lot of people to get babysitters to get
02:40
off of work to do what you have to do to
02:41
attend your local Meetup so with that
02:44
being said we’re going to do a monthly
02:45
one we’re going to add as much value in
02:47
content as possible what sets us apart
02:50
or reaches huge Jutes are large scale
02:55
and our meetups every ditch between
02:57
people to start new chapters in
02:59
different cities I’m super happy and
03:00
super proud about that this group is
03:04
spearheaded by three individuals with
03:06
over 30 years real estate experience
03:08
they’re currently owner control around
03:10
3,000 apartments and what’s really cool
03:13
about that is this is not a one-man show
03:15
this is three people with three ideas
03:18
three different game plans even though
03:20
we’re all looking to collect more
03:21
apartment more cash flow we all come
03:24
from different angles and we can add a
03:26
lot of different value from different
03:28
perspectives the three of us met
03:32
speaking across the country several
03:34
times we’ve set next to each other on
03:36
stages where we’ve been speaking in
03:39
front of 600 plus people just yesterday
03:41
and the day before POW and myself were
03:44
in Los Angeles speaking at a conference
03:46
six hundred and eight people were in
03:48
that room really all we did was that as
03:52
much value as possible super happy about
03:55
the weekend Ferris wasn’t able to make
03:57
that meeting that’s the first one that
03:59
he’s missed I missed him at that meeting
04:02
but he was at another conference doing
04:04
what he does and what does he do he adds
04:07
value he adds content the guy knows real
04:09
estate inside and out so now I’m going
04:14
to introduce my two partners a little
04:16
bit and that’s mr. pouchy and mr. Farris
04:18
Moussa so pal go ahead and take it my
04:21
man yeah for sure so we’ll get into a
04:24
real quick Senate intro you know just
04:25
wanted to give you a little bit of back
04:27
kind of who we are so that you kind of
04:29
have some name to the face and things
04:31
like that but I’ve been doing real
04:33
estate for about four years but really
04:36
multifamily real estate for about three
04:38
years so I bought my first multi-family
04:40
property in January of 2017
04:45
so exactly two years three years ago and
04:47
since then I purchased I think a total
04:51
of involved in seven different
04:53
transactions yeah seven different
04:55
transactions all part of the general
04:57
partnerships all totaled over a thousand
05:00
units at this time and so that’s
05:03
primarily where I am I’ll bet you Ferris
05:05
about you alright hello everyone thank
05:08
you all for coming on I guess for those
05:10
of you that don’t know me my name is
05:11
Paris Moussa I am uh I guess my
05:14
background is actually software so I
05:15
know there’s a lot of engineers and
05:17
computer people in this space I think we
05:19
just naturally gravitate to it so I’m
05:20
definitely one of those people kind of
05:22
for me you have a computer science
05:24
degree worked at Microsoft and then got
05:26
into real estate and loved it and so
05:28
currently I’m a partner at disrupt
05:29
equity so me and Ben’s levels for those
05:31
who they don’t know where the the main
05:32
ting people that kind of run disrupt
05:34
equity and behind us we have our teams
05:35
and currently we’re at about fifteen
05:37
hundred units that we you know full
05:39
assets under management and you never
05:42
continuing to grow right we are becoming
05:43
more and more vertically integrated and
05:45
kind of excited to see with 20/20 bills
05:46
but you know more importantly I mean
05:49
we’re excited to be here help you know I
05:51
think for us we’re always happy to hop
05:52
on and answer questions and by us I mean
05:54
me garrison and pals right the more
05:56
value we can add that naturally leads to
05:58
relationships partnerships and you know
06:00
I’ve met countless partners through
06:02
these kind of endeavors right and real
06:04
fit is definitely a team sport and I
06:05
think that’s what a little not it’s so
06:07
excited to kind of you know meet new
06:08
people and help continue to grow my name
06:14
is garrison Gilbert 19 years experience
06:17
I’ve done absolutely nothing but real
06:20
estate since 2001 finish college
06:23
couldn’t find a job I did what any smart
06:25
21 year old guy would do I bought a
06:26
house in the hood picture that with my
06:28
two hands and kept going with it I grew
06:31
that into 1,200 houses sounds awesome
06:34
not so much ridiculously unmanageable
06:40
2004 or two
06:41
thousand six two thousand seven I lost
06:43
seventeen million dollars then I
06:46
realized you know what cash flow is the
06:47
name of the game that’s kind of what
06:49
propelled me into the multifamily
06:51
industry before that I did 1200
06:54
single-family residences bought
06:57
proximately 400 non-performing real
06:59
estate notes all across the US I did
07:01
beach houses up and down the East Coast
07:03
high-end fix and flips real estate wise
07:06
you name it I’ve probably been there
07:07
done that I’m a little bit different
07:10
than these guys these guys buy one two
07:12
three hundred unit apartment buildings
07:14
I’m into that that’s awesome but I’m
07:16
also not scared to buy a 5 10 15 unit
07:20
right now we are constructing and
07:22
renovating a 74 unit office space so I’m
07:28
pretty diverse in real estate I’m here
07:29
to add as much value as possible
07:31
hopefully you guys know me at least a
07:33
little bit from social media pretty much
07:35
in general multifamily masters let’s
07:37
rock and roll
07:38
I’m here to help you guys I’m here to
07:40
grow I’m here to build teams I’m here to
07:41
network let’s go let’s grow awesome
07:46
awesome so hey we’re gonna go ahead and
07:49
we’re gonna get started a little bit and
07:51
just talk about where we got started but
07:54
before we do that you just want to make
07:57
sure that you guys know that’s more
07:59
amount of this is that we’re really
08:00
going to take the bulk of this this
08:02
first multi-family a master’s live event
08:05
to do QA all right so we’re gonna so we
08:08
want your questions so if you would
08:10
start putting them in in the chat start
08:12
asking questions you know whatever we’re
08:15
gonna basically try to answer as many
08:16
questions as we can kind of get – we do
08:18
have a 60-minute time limit so we’re
08:20
going to end at 7 o’clock Pacific ten
08:23
ten o’clock Eastern okay so get your
08:26
questions in early start to write them
08:29
in right now I know you know we actually
08:32
had a couple people ask a few questions
08:33
earlier but we’ll be getting into that
08:36
really quickly here soon so go ahead and
08:38
ask yeah and enjoy and feel free to ask
08:41
anything I mean really you know this is
08:43
here for you write it for most people’s
08:45
meetups right I think the most valuable
08:47
part in any meet-up whether it’s online
08:48
or in person is the Q&A right everyone
08:51
has a different story everyone has a
08:52
different nugget to share so you know
08:54
there’s not a dumb question
08:55
feel free to ask what you guys want so
08:57
then I think with that said I think the
08:59
very first question we’ll go ahead and
09:00
kick it off but I think it’s Justin the
09:02
first one we’ll each probably answer
09:03
this but you know if you were getting
09:05
started a day what would you do first
09:06
right okay first I thought we were gonna
09:09
do the how we got started
09:11
oh you’re right okay you’re right you’re
09:14
right but you can go ahead you start
09:16
with your first all right I’ll do my
09:22
toughest no for me I got started almost
09:25
accidentally right I you know I had
09:27
extra capital looking to deploy learned
09:30
about real estate investing off my
09:31
bigger pockets and a bunch of podcasts
09:33
read a lot of books and then just kind
09:34
of hopped in and before I moved back to
09:37
Houston some of those you don’t know I’m
09:38
based in Houston but before I move back
09:40
you sent a four-plex under contract boss
09:42
that got a taste of multiply family but
09:44
for those who don’t know Houston very
09:46
well there’s not a lot of good for
09:47
plexus in Houston right land is so cheap
09:49
there’s a lot of houses so I bought a
09:50
bunch of houses and you know got to the
09:52
point where I just realize it doesn’t
09:54
scale very well right there are you know
09:57
twelve different loans 12 innocent
09:59
insurance policies and you know because
10:02
the big headache so got into
10:03
multi-family and love it and you know in
10:05
syndication as well and just realize
10:07
this to mix the two things I like which
10:08
is really people and numbers and kind of
10:10
a third pieces processes and components
10:12
so maybe that’s you know a little bit of
10:14
how I got into it and kind of the rushes
10:16
history from there I got into apartment
10:20
buildings and I’m located in Baltimore
10:23
Maryland I got into apartment buildings
10:25
where I lived in China for a year that
10:28
was 2012 and I brought a lot of capital
10:31
home from China and at that time I was
10:33
doing a lot of high-end fix and flips
10:35
multi-million dollar projects the level
10:38
of detail was here and my contractors
10:42
were horrible I lost a lot I shouldn’t
10:44
say I lost a lot of money I didn’t make
10:45
as much money as I hoped and for lack of
10:48
inventory in that space and then the
10:50
smaller fix and flip space my business
10:52
partners kept telling me to buy
10:53
apartment buildings by apartment
10:55
buildings by apartment buildings I was
10:56
so against it I had some horror stories
10:58
when it comes to tenants in a
11:00
single-family space and the last thing I
11:02
wanted was a portfolio of tennis but
11:05
long story short we bought a couple of
11:08
five unit
11:09
ended up buying a bunch of 2030 unit
11:11
ility next door to that now I have a
11:14
portfolio of 200 or so apartments right
11:16
around Hopkins University in Baltimore
11:18
and have 400 Apartments spread around
11:22
other regions in the country
11:26
go ahead pal
11:29
I’ll cement ok so uh I’m pouchy and I
11:32
live here in Los Angeles but all of my
11:35
investing is done out of state so I
11:37
don’t do anything inside of California
11:39
all my self is out of state and so when
11:41
I got started you know I started with a
11:45
single-family but then I quickly moved
11:46
from one single family to apartment
11:49
building it was a 40 unit apartment
11:50
building in Indianapolis and like I said
11:53
I mentioned before that was January 2017
11:56
so my first multi-family was a 40 unit I
12:01
really did it by myself so that I didn’t
12:03
have any partners at the time my idea
12:05
was okay I’m going to get into this
12:07
multifamily business but I don’t want to
12:10
take down any partners or any other
12:12
person’s money because if I’m going to
12:15
prove it I gotta prove it to myself a
12:17
little first before I can start to ask
12:18
anybody else that they want to partner
12:19
with me and so that’s what I did I did
12:24
that and from there you know have just
12:27
continues to try to scale up get more
12:29
partners get more people involved and
12:32
look at other markets so although I’m in
12:35
Indianapolis right now I’m also in
12:37
several other markets across the United
12:39
States are probably Phoenix Atlanta
12:42
Dallas San Antonio Jacksonville Hill I’m
12:47
pretty market agnostic I just try to
12:49
choose markets that are on the larger
12:51
side but me getting started was that
12:53
first 40-unit building that I did by
12:56
myself but after that it’s really kind
12:58
of partnering with everybody else so
13:05
what we write so then I guess yeah let’s
13:08
go ahead and start going through
13:09
questions so first one you know let’s
13:10
just kick it off with the first one that
13:12
we had altar which is just kind of you
13:14
were getting started today right what’s
13:15
the first thing that you would do
13:16
differently so pal you want to answer
13:19
this one first and get it go
13:22
you know if I was to start today and you
13:26
know like think about like what I want
13:27
to do differently
13:30
you know I think the I think I would
13:33
have bedded my property managers a
13:34
little bit better I mean really that’s
13:36
sort of a struggle that I’ve had and
13:38
that with my early ones is that really
13:40
that need to make sure heading your
13:42
property managers pretty well so you
13:44
want to make sure that you’re taking not
13:48
only are you vetting them upfront and
13:50
doing you know taking down I would say
13:53
referrals and you know going over your
13:55
contracts and making sure that you’re
13:57
very comfortable what they’re going to
13:58
do but get into the reporting side of it
14:01
what is where the reports are they going
14:03
to give you how often you’re going to
14:04
speak to them what type of expectations
14:06
you’re going to have with them but then
14:07
I what I feel is that you also want to
14:10
hire the backup and you want to have
14:11
somebody that’s on the back side of it
14:13
that it doesn’t really work out that you
14:15
really can kind of guard sort of betted
14:16
that other person as well so initially I
14:19
think that’s what I would do a little
14:20
bit different if I was to start over on
14:23
my first one today right for myself if I
14:29
was going to start right now in
14:30
multifamily or real estate in general
14:33
for the first 15 years of my career I
14:36
honestly thought that I could do this
14:37
alone I did not realize the team aspect
14:41
of this in the last three years or so
14:44
I’ve really tried to build out my teams
14:45
and build on my network and be more
14:47
social I could not have been less social
14:50
for the first 15 years I hid behind the
14:51
veil of intellicus calm if you call me
14:55
up I don’t want to meet you for lunch I
14:56
don’t want to hang out with you I want
14:58
to show you some property let’s make
14:59
some money and move on
15:00
since then last three years I’ve tried
15:03
to build my team and really build my
15:05
network and my goodness I would have
15:07
started this 15 years ago I would be on
15:09
fire and I’d probably be sitting on an
15:10
island somewhere versus this zoom call
15:12
at the moment but that’s what I would
15:14
change alright and then maybe myself too
15:18
it’s just I mean it’s kind of the same
15:20
point as garrison right luckily me I did
15:22
partner on early on but really kind of
15:24
taking that and pushing it right not
15:26
being scared of you know I remember one
15:28
case where had two deals going on and a
15:29
third deal showed up that we just have
15:31
to tap on because we’re just too scared
15:33
right and we had too many going on but
15:34
now just knowing hey there you
15:36
it’s a big ego system there’s a lot of
15:37
ways to partner and you know if it’s a
15:39
true deal don’t pass up on it and
15:41
coincidentally that deal is actually
15:43
here in Orlando which is where I’m at
15:44
right now
15:45
cool so then let’s just keep going on so
15:47
next question super pal how did you
15:50
start sorry how did he jump straight
15:52
into multiply family over single family
15:53
three years ago I know you’ve middle
15:57
area pal but maybe you kind of briefly
15:58
recap yeah yeah sure so you know I
16:02
started with single family started with
16:03
one house and then it took me about a
16:05
year of learning a year of analyzing
16:10
deals a year of going through a lot of
16:13
analysis kissing a lot of frogs talking
16:16
to a lot of brokers and figuring out
16:18
really on the sort of the underwriting
16:21
side that I was comfortable enough to
16:22
figure out where and what a good
16:25
property would look like so it did take
16:27
me a year to get through to my next
16:29
property which was that for a unit in
16:32
Indianapolis and that was kind of what I
16:35
was doing up until that so it was a lot
16:38
of underwriting a lot of calling brokers
16:40
a lot of analysis and trying to put
16:45
together my you know what would be my
16:46
team at that point at but really it was
16:49
a lot of that upfront
16:50
you know just grinding through a lot of
16:53
things that I think a lot of people are
16:55
probably can probably relate to that you
16:57
have to grind a lot and you and it takes
16:59
you a while to get your first one all
17:03
right next question is from Erin do you
17:05
have an experience or the water screws I
17:07
think event savings products and what
17:09
type of percentage saving can you expect
17:11
from low flowing unit maybe I’ll take
17:14
that one so for those of you that don’t
17:15
know right the debt that we usually like
17:17
to do is call you know it’s agency debt
17:19
agency really means think of it as
17:21
government back Fannie Freddie products
17:23
and you know yes we do bridge debt as
17:25
well I know we all do it but kind of the
17:27
most beautiful of it is agency debt it’s
17:29
the best that you can possibly get
17:31
usually you’re going in you know 7080
17:33
percent leverage 30-year amortization
17:35
ten years no ten twelve your notes and
17:38
you know one seven years I owe and so
17:41
with that Fanny for the longest time had
17:44
a product that’s kind of going away
17:45
right now called the green program so
17:47
essentially if you’re doing what we
17:49
typically do which is
17:50
un product you can actually ask for the
17:52
green program which would give you a
17:53
better interest rate and they would
17:56
actually give you that money as part of
17:58
your rehab to do the work and then last
18:00
but not least you usually can get more
18:01
leverage because you’re you know
18:02
essentially what they’re doing is
18:04
they’re modeling what your expenses are
18:06
post green program and so fundamentally
18:09
Prine program is exactly what it sounds
18:10
like right you are improving the green
18:12
efficiencies of an apartment and it’s
18:14
usually boils down to low water savings
18:16
and electric savings and so for us you
18:19
know we’ve done green degree program I
18:21
probably three of our properties and yes
18:23
I think three of them and there are
18:25
savings I mean they are substantial it
18:27
varies by property so I don’t think it’s
18:29
really can give you an exact answer
18:31
right but I imagine you know ten twenty
18:34
percent I’ve seen a deal where literally
18:35
the water dropped I think forty percent
18:37
and so you know if you have a big water
18:39
problem on a property you can really fix
18:41
the issue but you know the thing to keep
18:43
in mind is that it’s it is valuable and
18:46
that does boost your and a why right and
18:48
you’re getting more leverage so you know
18:50
it’s it’s almost a no-brainer the
18:52
complexity though and the reason why
18:53
this is going away is that a for Fannie
18:56
it became a hard problem to maintain
18:58
right and so there were set of
18:59
requirements around what you had to do
19:02
and then you know did that actually
19:04
result in the savings and so it’s not
19:05
going to be as available but as an owner
19:07
right if I had an older property that
19:09
didn’t have any water savings this is
19:11
absolutely must do right one thing we do
19:13
a lot actually will take over a property
19:15
will walk every unit we will you know go
19:17
through and see if there’s any leaks
19:18
anywhere go replace all of the toilets
19:20
laughs all of the seals and then on top
19:23
of that if there’s an opportunity to
19:24
implement low-flow I mean it you know it
19:26
pays for itself it’s not expensive and
19:28
it’s actually I want to win situation so
19:30
I won’t leave it at that if you have
19:36
anything else to add if not so I’ll move
19:37
on next question from Jeff and as a
19:40
newbie if you can learn how to find and
19:42
analyze deals is that considered
19:44
valuable if you’re good at Karason go
19:53
for it
19:53
now I was just going to say if you’re
19:55
good at it and you can become good at
19:56
and numbers is your thing anything you
19:59
can do to add value to other people and
20:00
build your network and build your circle
20:03
and build your team
20:04
it’s awesome a lot of people are afraid
20:06
of the numbers if you can excel at that
20:08
go for it you can add a lot of value to
20:10
other people it can be very very very
20:12
valuable and just it I would just add to
20:16
that you know it’s not necessarily
20:18
always the analysis has been getting
20:21
them the numbers but you need to be able
20:22
to find the deals and then analyze them
20:24
to that’s a big part of it too so you
20:26
know because a lot of people can have
20:28
spreadsheets and things like that they
20:30
can plug in so it’s not really getting
20:31
out that you need to cannot you need to
20:33
find it and I’ll analyze it bring it to
20:36
somebody who can help you close it yeah
20:39
and then I guess maybe I’ll add what a
20:40
lot two things to that analyze doesn’t
20:42
just mean you know hey here’s a number
20:44
and you send it off it’s me if you’ve
20:45
actually gone through the exercise if
20:48
you deduce that this is a good deal and
20:50
you’re giving a prospective partner the
20:52
breakdown right we have a lot of people
20:53
out of us forward deals to us and
20:55
unfortunately that’s not that valuable
20:57
right deals are all I mean and by a deal
20:59
right this is kind of for those who that
21:00
newer a deal does not mean a deal right
21:03
really ideal means a property for sale
21:05
so we use that word very loosely but
21:07
being able to take a property for sale
21:09
and determine that if they deal is the
21:10
real value right not just forwarding
21:12
along an email to someone like any of
21:14
the three of us and now we have to go do
21:16
that homework right we already have our
21:17
processes systems and that just doesn’t
21:19
really help as much so really digging in
21:21
and figuring that out and the other
21:23
thing I was going to add it to is a big
21:24
part of this business is relationships
21:26
with brokers right and so finding a deal
21:29
could be that you know you’re the one
21:30
shaking the trees and getting kind of
21:32
that deal flow and maybe you hand it off
21:34
to someone else to help with an analysis
21:36
but there are kind of two parts to that
21:39
all right next question Stacey I’m
21:42
looking to be partners what is the best
21:43
way to determine if the prospective
21:45
partners are the right fit for you what
21:48
have your experiences been I can jump
21:52
into that one a little bit so you know
21:56
I’ll just give an example of what my
21:58
business partner how him and I have kind
22:01
of gravitated towards each other so my
22:04
business partner his name is one yang
22:05
and he actually we met through this
22:08
Meetup so I was holding my meet-up and
22:10
he came to me and he started talking to
22:12
me about what he’s doing it turns out we
22:14
were both investing in
22:15
that was right and so then we started
22:18
okay cool he’s investing in Indianapolis
22:20
he’s looking at like 10 to 20 units I’m
22:22
looking at like 40 units or so and then
22:25
he started to do some analysis and on
22:29
certain properties at least was finding
22:31
and then he would actually send that
22:33
that analysis to me and asked me what I
22:36
thought about the analysis and I was
22:37
like well it was pretty open of him to
22:39
just send me his analysis and tell me
22:41
what deals he’s actually looking at
22:42
trying to put it loi in on you know most
22:45
people are you know want to keep that
22:46
close to the best of where they’re where
22:48
they’re actually investing him so he
22:51
kept doing that to me and then I kept
22:52
sending him back what he’d want
22:54
you know why opinions were on the
22:56
property and then we just started we
22:57
actually started bidding as a competitor
22:59
to each other on certain properties and
23:02
then we started figuring out well why
23:04
don’t we just work together you know we
23:05
understand our each other’s underwriting
23:07
we like each other so eventually we just
23:10
came partners so to connect that quick
23:12
story you know as a quick story is that
23:14
he started offering me a lot of value
23:16
and it was very open about it it was
23:19
wasn’t trying to hide anything and so to
23:21
me I was like this guy’s sounds you know
23:24
something could partner with so we ended
23:26
up being partners so we grew up yeah
23:30
and maybe another thing to add to that
23:32
too is right there’s kind of in this
23:33
businesses really maybe three kinds of
23:35
partnerships right there’s one
23:37
partnership which is an exclusive
23:39
partnership so me and my partner right
23:41
we have an exclusive partnership meaning
23:42
we partner together on everything right
23:44
in kind of what you look for and that
23:46
kind of partnership is very different
23:47
than others and so you know I’ve had a
23:49
couple different businesses throughout
23:50
my career and you start to identify
23:52
things that make a really good partner
23:54
right and maybe for me the what I’ve
23:56
learned is the most important one is
23:57
find someone that has the same work
23:59
ethic right I can literally call my
24:01
partner Ben right now and we’ll talk to
24:02
our person you know we’re both you know
24:04
we’re on the same frequency we’re
24:05
talking to each other 10 times a day
24:07
right we had that same work ethic the
24:09
second really important one is the same
24:10
long term goal right both of us are
24:13
happy to essentially put all the money
24:15
back that we’re making back into the
24:17
business and grow it because our goal is
24:19
you know a much much bigger goal right
24:21
and so make sure you’re aligned with
24:23
your partners in terms of what your
24:24
long-term goals are as well as what your
24:26
work ethic is and then maybe you know to
24:28
kind of just go
24:29
I mentioned the other two right
24:30
non-exclusive really you know people
24:32
partner by it with people on based on
24:34
the deal and based on how each person’s
24:35
adding value and then you kind of have
24:37
the the middle of the ground right where
24:38
sometimes it’s the same people sometimes
24:40
it’s not um alright we’ll move on from
24:44
that question so next question from
24:45
jasmine again one market I’m interested
24:48
in is Houston do you think Houston is a
24:49
good market for multi-family I’ll take
24:51
that one since I’m based in Houston
24:53
unless I Garrison’s I wanna add
24:54
something I guess what I would say about
24:57
Houston so for us we owned zero
24:59
properties in Houston right we have
25:01
properties in Atlanta we have properties
25:03
in Beaumont Texas was just east of
25:05
Houston San Antonio we don’t know
25:07
anything Houston the question is why
25:09
right well the reason we left used in
25:12
two years ago in wint Atlanta was
25:14
because we were able to in Atlanta find
25:17
a strong growing market which Houston is
25:19
that had properties for sell at the
25:22
right price point and that’s the
25:23
important thing right because you know a
25:25
fund of months that we are looking for
25:27
cash flow and if I can buy the property
25:29
that cash flows a certain amount for
25:31
sixty thousand dollars a door in Atlanta
25:34
right whereas that same property that
25:36
same cash flow might sell for eighty
25:37
thousand dollars a door in Houston you
25:40
know obviously Atlanta one’s a lot more
25:41
attractive and so Houston’s kind of a
25:43
weird City because back in the 80s and
25:45
90s for those who don’t know you know
25:47
oil fell right we had a kind of Houston
25:49
had a little mini recession nothing got
25:51
built in the 80s and 90s and so
25:53
essentially you have this over build of
25:54
a class properties in Houston and you
25:56
have a lot of feed properties that are
25:58
essentially lipstick on a pig three
26:00
times over that pretend like they’re
26:01
bees right and so if you’re want to get
26:04
into Houston you’re essentially gonna
26:05
have to probably pay up for see you’re
26:06
paying more than publishing because it
26:08
really pretending like it’s a bee or you
26:10
go into the age and so for us you know
26:12
it just didn’t make sense there just
26:13
wasn’t enough value you add on the deals
26:16
and on top of that they just weren’t the
26:18
right price point to get the returns
26:19
that we want for our investors and so
26:20
you said it self is a great market I
26:22
think it’s just a struggle to find the
26:24
right deals and so for us our strategy
26:26
for Houston is gonna be new construction
26:27
that’s something we’re kicking off kind
26:29
of this summer in terms of you know we
26:30
can build not a class properties but
26:32
really fill that b-class gap where we
26:34
can build a properties brand new for
26:36
eighty to ninety thousand dollars door
26:38
um alright next question
26:43
Hunter says I went to buy a quat
26:45
four-plex with an FHA loan and house
26:48
hack the first year and then move back
26:50
in with my parents and rent out all four
26:51
units I guess that’s a statement it’s
26:55
not a question that gets you in on your
26:59
first dealer I mean I might go for it
27:03
it’s what I feel like yeah there’s
27:05
nothing wrong with house acting you have
27:06
a deliberative Mitchell I mean use what
27:08
you have right if you’re in the army and
27:10
you can get you know the army loans
27:12
those are fantastic too so there’s a lot
27:13
of gaming search for house hacking
27:15
online there’s a lot of strategies if
27:16
you’re into if you’re looking for that
27:17
right and so it’s a good way to maybe
27:19
build a base but there’s also nothing
27:21
wrong with jumping to bigger properties
27:23
right there’s a lot of reason and it’s
27:25
possible to do it you know if you have a
27:26
team together and you know a little bit
27:31
a lot of people get caught up in the
27:33
whole multifamily space with I need to
27:35
buy a hundred unit view I need to buy a
27:37
hundred unit deal our goal is for you to
27:40
take action our goal is for you to get
27:42
your first door our goal is for you to
27:45
obtain cash flow this is not a race I
27:48
love the idea of how hiking I don’t care
27:50
what the to unit a three unit or four
27:52
unit you do what works for you what
27:54
works for your goals what works for your
27:55
family and as long as it’s a win keep on
27:58
going and keep pushing it my man
28:01
exactly right all right next question
28:05
pal you’re popular Powell did you self
28:07
fund that first deal these two love it
28:10
yeah self-funded they’ll have it so you
28:13
know just kind of fly with my own cash
28:17
all right next question from Def and
28:20
again when doing deals with partners is
28:22
syndication the only way or is there
28:24
other ways to do deals with partners
28:26
about syndication is it a good idea to
28:28
have a property management company and
28:29
routine before us actually that’s a
28:30
different question so okay well spot
28:31
there so when doing deals with partners
28:33
of syndication the only way or is there
28:34
another way to do them and so maybe I’ll
28:37
take this one so for those of you that
28:38
don’t know what a syndication right so
28:40
if you think about you know if if I had
28:43
$50,000 to go invest right today that
28:46
means I can buy essentially roughly
28:47
about $200,000 of real estate if I’m
28:49
leveraged right now the problem with
28:51
that is that what are they gave me that
28:52
gets me a house in Houston right but now
28:54
if me garrison pal and ten of our
28:56
friends all have $50,000 right how much
28:59
do we have now well now we have
29:01
collectively $600,000 right if you’re
29:04
lever is that six hundred thousand gets
29:06
you into a three million dollar property
29:07
right so we were able to pull together
29:10
all of our resources or all of our
29:12
downpayment to go buy a much bigger
29:13
better asset and what makes it bigger
29:16
and better
29:16
well it really just economies of scale
29:18
right we can have full-time staff you
29:20
know we can pick the markets who are in
29:21
and we can do probably a different kind
29:24
of value add play we reinforce the in a
29:25
wine appreciation then we might be able
29:27
to the house and so that’s what
29:29
syndication is now you know with
29:31
syndication there’s a lot of things you
29:33
have to kind of know what you’re doing
29:34
in terms of yes you see falling into
29:36
seeing laws and things like that right
29:38
that’s one common way but that’s not the
29:40
only way you know I know many guys that
29:42
literally own two three four thousand
29:44
units alone right they do it just
29:46
themselves all their own money that’s
29:48
another way a different way as well as
29:50
what’s called a JV right so in a
29:53
syndication usually it’s like an LP GP
29:55
structure which means you have kind of
29:57
the LPS which has limited partners which
29:59
is are your investors you have the GPS
30:00
which is the general partners right the
30:02
people are putting together and managing
30:03
it well when the JV structure imagine
30:06
you basically have everyone equals so
30:07
maybe me pal and Garrison each put in
30:09
you know a million dollars and now we
30:11
have three million dollars of equity to
30:13
go by you know nine million dollar asset
30:15
and so that’s more of a JV structure and
30:17
so you could really structure it
30:19
structuring is its own big interesting
30:23
thing right a lot of times you can make
30:24
any deal work if you can structure it
30:25
appropriately but that’s just kind of
30:28
the maybe the most common three outside
30:29
garrison pal did you guys have anything
30:31
to add to that
30:32
no now you covered it alright next
30:36
question from the same person is it a
30:38
good idea to have a property management
30:39
company on your team before speaking
30:41
with a broker ms-excel yeah exactly it’s
30:51
not necessary I mean the you want the
30:53
property manager to help you kind of
30:55
point out what areas you should go to or
30:57
not like you know we had a property
30:59
manager that literally would tell us if
31:00
you bought this deal I will not manage
31:02
it that’s how much they don’t like it I
31:03
want that kind of property manager so
31:05
but that’s yeah I mean they’re very
31:07
different calls you know and all right
31:09
now
31:10
to do with my property managers is I
31:12
like to build relationships with several
31:14
property managers in any certain region
31:16
that we’re looking to invest in and a
31:18
lot of times I’ll build that
31:19
relationship with the hopes that they’re
31:21
going to manage my properties because I
31:24
want them to introduce me to the brokers
31:26
if they can introduce me to the brokers
31:28
the burghers let’s start calling me
31:30
versus me chasing down burgers which
31:32
makes life a little bit easier yes
31:37
alright the next question from Austin
31:40
how do you feel how do you all feel
31:41
about becoming an LP and it’s indication
31:43
is a good entry point to learning how to
31:45
be a syndicator I’ll answer this one so
31:49
I actually think that’s probably the
31:51
best way I mean I personally did that
31:53
right so for me my goal is to be the
31:54
best indicator I could be well how do I
31:56
do that I said know what else everyone
31:57
else is doing so I invested with several
31:59
people and kind of you see the good the
32:01
bad and the ugly you can make sure you
32:02
do the good and avoid the bad and so I
32:04
tell people you know I’ve had several
32:06
people that are approached me saying hey
32:08
I have you know million dollars I want
32:09
to put into your next deal I tell them
32:10
first divided up across deals so you’re
32:12
reducing risk but also try different
32:14
people write difference indicators have
32:16
different appetites of risk some of them
32:18
can perform some of them don’t and as a
32:20
person that wants to be a syndicator you
32:22
learn a lot really being an LP how did
32:25
that syndicator present the deal right
32:27
and what were the markets that are
32:28
looking in and what they like about the
32:30
deal how did they do things like their
32:32
ppm s and all of the the paperwork right
32:34
you know were you comfortable in that
32:36
process right did you feel comfortable
32:37
wiring them your chunk of money right
32:39
because honestly you have to realize
32:41
most people never wire more than ten
32:44
thousand dollars to anyone right besides
32:47
the house that they’re buying so for
32:48
people that are wiring in 50 hundred 150
32:51
thousand dollars you know chunks of
32:53
money will for the time I mean that’s
32:54
probably the only time they’re doing
32:55
that and so as a syndicator you have to
32:57
realize that and make sure that you show
32:58
you know that you’re buttoned up and
33:00
everyone knows that as well so as a LLP
33:02
you’re learning a lot by doing you know
33:04
becoming an LP right and then you see
33:06
how is that syndicated doing their
33:08
monthly report how are they performing
33:10
on the deal itself how are they doing
33:11
the distributions right and so for us so
33:14
we got this rep equity we actually have
33:15
a 2020 goal which is to really
33:17
white-glove our LP experience end to end
33:19
and so you know how that’s just
33:21
something to kind of keep in mind but on
33:22
this indicator you learn a lot
33:24
to see what other people are doing so I
33:26
highly recommend that it’s easiest way
33:27
to at least get started and start to
33:29
just become comfortable with the
33:30
terminology and what’s going on and all
33:32
the moving pieces yeah I was going to
33:36
say it you know just just for me like if
33:39
you already have what I’ve pulled a
33:41
couple feel if you already have a good
33:43
financial engine that is basically
33:44
giving you a good amount of income and
33:47
you know you can use that to then invest
33:50
in as an LP and get into the syndication
33:54
and that’s probably what I think may be
33:55
the better way to go about it if you’ve
33:57
already got a good financial engine
33:59
going right but if you are trying to be
34:02
a syndicator
34:03
and you want to syndicate this that is
34:05
another business that is another
34:06
financial engine so if you need to
34:07
you’re creating another business so if
34:09
you don’t want to create a whole other
34:11
business because you’re already got a
34:12
good job or you’ve got already got a
34:14
good business then you’re just adding a
34:17
lot to your plate to try to become a
34:18
syndicator right away so sometimes I
34:20
think it’s honestly a little bit better
34:22
too if you’ve already got a good you
34:25
know like I said financial engine it’s
34:27
going pretty well you’ve got a good job
34:28
or a good business that’s bringing you a
34:30
good amount of money honestly I think
34:32
why you add trying to be a syndicator on
34:35
top of it or try to try to you know I
34:38
would think that being an LP would be at
34:39
that point be a lot better yeah and to
34:41
reiterate just one quick thing and
34:43
that’ll move on you know two pals point
34:45
I mean buying you know being a
34:47
syndicator you have to know how to run a
34:48
multi-million dollar business because
34:49
these properties are multi-million
34:51
dollar businesses so you gotta be
34:52
comfortable doing that know what you’re
34:54
doing because you’re also dealing with
34:55
other people’s money
34:56
so we’ll kind of maybe move on from that
34:59
because I know there’s a ton of
35:00
questions got enough so next question
35:02
from Ariel how do we build broker
35:03
relationships when you’re our newbie
35:08
name it’s garrison or do you want that
35:10
one Harrison yeah go ahead pal no I mean
35:14
I was just going to say character don’t
35:15
know how much you enjoy doing broker
35:17
stuff but I know for me you know I do
35:19
broker suffer for far away so like I’m
35:21
looking in you know Kansas City right
35:24
now so you have to you have to take this
35:26
broker relationship very serious so that
35:28
means you have to when you get something
35:30
from them like you ask them for
35:32
something right you’re trying to build a
35:34
relationship you ask them you show me
35:35
your good show me your deal right
35:38
they’re gonna say okay sure sure okay
35:39
you sound like a person I could buy this
35:41
here’s a deal that I could show you now
35:44
we’re going to show you a deal but you
35:45
need to take that that exercise very
35:48
serious so you need to analyze that deal
35:50
very fast very quick and get back to
35:52
them within you know within 24 hours and
35:55
tell them what you’d like or don’t like
35:57
about that deal and tell them with some
35:59
numbers to back it up I don’t like it
36:01
because the NOI is this separate is this
36:03
whatever my calculations for the income
36:06
or expenses are this it doesn’t seem
36:07
like it’s going to work for me but let’s
36:09
talk about what else you have what are
36:11
your other what are the properties do
36:13
you have that are in the million to 1.5
36:17
million range or whatever else you
36:18
whatever your range is at that time oh
36:20
right honestly when it comes down to
36:22
taking taking brokers relationships very
36:25
serious which means getting back to them
36:26
right away you don’t want to have them
36:28
send you something and then you don’t
36:29
talk to them because you don’t like the
36:31
deal that’s just not the way to go you
36:33
know something I’m stressed what Pao
36:35
just talked about is I want to reply to
36:37
every broker and every deal that they
36:39
send me because I want them to see the
36:40
name garrison Gilbert pop across their
36:42
email address or their email INBOX I
36:45
should say because I want them to know
36:47
that when I call them about a deal that
36:48
I’ve taken it seriously and whether I’ve
36:50
looked at it dug deep into it or just
36:52
kind of did a a big aerial view of it I
36:55
want them to know that I’m serious about
36:57
this business because next time some
36:58
off-market deal pops up I want them to
37:00
think of my name and reach out to me
37:02
because they know I’m serious about it
37:04
now into Garrison’s Point be front and
37:06
center right so the brooke relationship
37:08
is key to getting growth in this
37:09
business that’s why I’m here in Orlando
37:10
right now and I need to Emmett mmhc cuz
37:12
I’m gonna meet all the brokers I know
37:13
tomorrow the next day right take notes
37:15
on all your brokers know how many kids
37:16
they have know what they’re up to what
37:18
they’re doing follow up with them every
37:19
few weeks and you know the garrisons
37:21
point respond in medium I always give
37:23
them feedback don’t ever blow them off
37:25
because there’s got 20 other guys I can
37:27
go talk to all the waste your time with
37:28
you so let’s keep going so uh the
37:33
question basically boils down to how is
37:35
the stress has conducted on properties
37:39
repeat that fair isn’t it basically
37:42
whenever you know how do you stress test
37:44
a a deal right that’s what it’s asking
37:47
so maybe I’ll take this one so you know
37:49
stress testing a deal you want to look
37:51
at Haytham
37:51
Architects of disk what are the you know
37:54
where’s the deal in a position right you
37:55
look at what does occupancy look like so
37:57
if you know if you drop the occupancy
37:58
maybe the market the ninety five percent
38:00
occupied your you know physical and
38:02
you’re basically saying okay what
38:03
happens if we fall to 85 percent what
38:05
happens if we buy the dealer we don’t
38:06
get the rent pops that we want and we
38:08
fall to 85 percent occupancy what
38:10
happens we fall to 80 percent right
38:11
you’re basically just looking at you
38:13
know many factors and you know really
38:15
all of the all the things you can edit
38:17
in the sheet are all the factors you
38:18
want to play with and figure out you
38:20
know how many things have to go wrong
38:22
till you’re underwater right and then
38:23
you know from that you can figure out
38:24
okay maybe I’m going into leverage I
38:26
should probably go in seventy percent
38:27
instead of eighty percent I mean there’s
38:29
a deal that we bought we bought a 65
38:31
percent leverage intentionally just a
38:32
reduced risk all right we’ll keep going
38:34
because there’s like 15 other questions
38:36
uh what percent of your total investment
38:37
portfolio you have in real estate and
38:39
why let’s see to answer that one really
38:41
quickly ten seconds ago pal I would say
38:46
the majority I don’t know what percent a
38:48
lot I still have a day job so I do have
38:50
like 401k that I put into but it doesn’t
38:52
have that much money I don’t know so I
38:54
would say it’s a high percent it’s
38:56
probably like eighty eighty four percent
39:00
I would say it’s yours day carry cares
39:03
for me for me at seventy five to eighty
39:05
percent the only reason it’s not 100 is
39:08
because I’m invested into a couple other
39:10
businesses that are big time cash
39:11
flowing businesses and that’s where I
39:13
take capital and put in the multi-family
39:15
yeah and then for me I’d say probably
39:18
70% I freaking love real estate there’s
39:20
not a better long-term investment in
39:21
real estate so that’s why all right how
39:27
do you know who to invest your money
39:28
with amongst all the deals that may come
39:30
through your inbox that’s a fantastic
39:31
question anyone won’t answer that I can
39:35
answer that then all right I would just
39:38
say I mean get to know the sponsor and
39:40
know their track record how many deals
39:41
are there the full cycle who are they
39:43
partnered with right I mean and
39:45
understand that deal to write different
39:46
sponsors operate differently different
39:49
people have different business
39:50
strategies and different appetites of
39:51
risk is that does that deal match what
39:53
your what you’re looking for in a deal
39:55
right as a sponsor I actually try to
39:57
match equity to deals and what I mean by
39:59
that if I have a friend that I know that
40:02
is very you know not
40:05
on the idea they think real estate is
40:06
totally not a good thing I’m not gonna
40:08
go put them in a deal that’s not gonna
40:10
cash flow for two years right I’m gonna
40:11
put the middle kind of cash flow quickly
40:13
so as an investor make sure it matches
40:15
that business plan matches what you’re
40:17
looking for and then on top of that that
40:19
the sponsor can deliver and perform and
40:21
so you know this is we’re talking to
40:22
people like me garrison pal and everyone
40:24
else on this call you can kind of get
40:26
understand what which sponsors are able
40:28
to perform which ones aren’t and which
40:30
ones are newer and which ones aren’t
40:31
there’s nothing wrong with being new but
40:32
it’s just again you know as an investor
40:34
something you want to be kind of um next
40:40
question
40:40
oh he misses any water Scrooge not
40:43
savings okay I was wrong so here someone
40:45
had said water screws it’s a company
40:48
that specializes in tamper resistant low
40:49
flow kits with a per unit cost of around
40:51
$45 I’ve never heard of that
40:54
garrison DiPaola have you guys heard of
40:55
water Scrooge I have not heard of water
40:58
scooter never heard of it I have a
41:00
mechanical engineer that goes everywhere
41:01
with me on our property and whatever he
41:03
says we do so the takeaway is always
41:06
bring a mechanical engineer with you
41:08
everywhere you go
41:08
thanks Erica all right next question how
41:15
do you find your deals from Ross pal
41:20
don’t you go first
41:21
a minor miners primarily through brokers
41:23
right through broker relationships so
41:26
that’s primarily where we’re out finding
41:28
my deals
41:28
I have slacked in the broker
41:31
relationship category throughout the
41:34
last couple years because my opinion is
41:36
the market is tough I’ve gone directly
41:38
to seller direct marketing direct mail
41:40
cold calling things of that sort yeah I
41:45
mean broker relationships the garrisons
41:47
point you know if you’re looking at
41:49
something less than 50 units the direct
41:51
stuff works for usually something kind
41:52
of 80 90 hundred and up really it all
41:55
goes to a broker’s one way or another it
41:57
might be not marked and widely but still
41:59
broker next question sort of add to that
42:02
quickly to it a lot of people are can
42:04
when you’re considering investing out of
42:06
your area like out of state like I do
42:08
direct marketing and things like that
42:11
I’ve found or it’s going to be a little
42:12
bit more difficult because you need to
42:13
be there right away so if they tell you
42:15
yes come come look at my property your
42:18
into the cellar for an AC unit you need
42:20
to go visit them right there and then
42:22
tomorrow so if you’re flying in you’ve
42:25
got to figure you know just cause a lot
42:27
headache if you’re not really in that
42:28
market so if you little more difficult
42:30
to do it’s a direct marketing if you’re
42:31
not in that market no it’s a good point
42:34
all right next question in your opinion
42:36
what are the best multi the miss Marcus
42:38
will multiply family to be more specific
42:39
where the cash flow strong and returns
42:41
are great those are the markets we all
42:43
look for I mean fundamentally you’re
42:45
looking for markets that are safe
42:46
because of job growth population growth
42:48
but at the same time you want to find
42:50
the right price points and so that’s not
42:52
to say that secondary tertiary markets
42:53
aren’t good right because again you know
42:55
those also are attractive cuz usually
42:57
you’re getting more cash flow so it’s a
42:58
it’s kind of a balance between risk and
43:00
cash flow so for us we like Atlanta we
43:02
like Florida where we like Texas you
43:04
know we don’t like Dallas because it’s
43:06
too expensive we don’t like you see
43:07
because it’s too expensive you know we
43:08
we also like secondary and tertiary
43:09
markets we’re doing a deal right now in
43:11
Corpus and we had three deals in
43:13
Beaumont Texas of all places which you
43:15
know we sold two of them for homeruns
43:16
and so you know there’s a deal to be had
43:18
anywhere if there’s growth and so that’s
43:20
maybe I’ll leave it at that
43:23
next point let me run out I do some fire
43:25
we got a dogs I guess yeah right now I
43:28
got minutes really got five minute yes
43:31
around these all right I’m working w2
43:33
that has high demand on my presence so
43:35
my target market is my backyard which
43:36
also happens to be a very hot market
43:38
when I get sent properties that have
43:40
great opportunities but the price is not
43:41
realistic should I send an LOI at a
43:44
price that makes sense yes but it gets a
43:46
point where you know you tell a lie to
43:48
the broker sees you doing stuff but I
43:50
mean if you’re never gonna if you’re not
43:51
even close on these deals you might have
43:52
to reconsider go to a new market okay
43:58
next question I want a 62 unit with my
44:00
team owner pays water do you have any
44:02
recommendations for metering the water
44:05
yeah there are companies that will help
44:07
meter I don’t know what you’re looking
44:10
for exactly just there were condition
44:11
the company that could help I mean
44:13
turning properties that are all built
44:15
into not all bills paid is definitely a
44:16
good value at if you could play it right
44:18
it’s the right market but yeah Scott if
44:20
you have any more questions already feel
44:21
free to reach out directly
44:23
next question from Rodney for buying a
44:25
small multi-family property two to four
44:26
units any thoughts or experiences with
44:29
using a bridge loan or HTML hard money
44:30
lender
44:31
or the down payment garrison with you if
44:34
the numbers work go for it I would I
44:36
don’t know if I’d necessarily go with a
44:37
bridge but hard money all day long I’ve
44:39
borrowed millions and millions and
44:41
billions of dollars at fourteen point
44:42
nine percent three point I know it’s a
44:44
lot cheaper than that if the numbers
44:46
work do what you got to do and this
44:49
excessive risk is the biggest thing
44:50
right and you know what out of the
44:51
market tanks to make sure you’re not
44:52
gonna be upside down next question I’d
44:54
like to put someone about the FHA
44:55
housing hacking goal I didn’t finish my
44:58
real question which was the house
45:00
turning attention investment for-profit
45:01
assessment if it’s would this be the day
45:02
I moved out or when I refinance the
45:04
property to conventional uh the house
45:10
turns into an investment the day you
45:12
move out I think it’s what the answer to
45:15
that question that’s right we got a
45:17
hundred something more complex question
45:19
to send us an email we’re happy to help
45:20
trying to get you answered then next
45:22
question from Jeff and if you can find
45:24
an analyze deals but don’t have the
45:25
money it is still possible to do a deal
45:27
come on answer that all right I won the
45:33
answer answers the other vision there’s
45:36
a lot of ways to get into a deal there’s
45:37
a lot of ways to partner finding a deal
45:39
analyzing a deal are definitely some of
45:40
those and it’s not just about having
45:42
money next question what are the
45:45
important factors that what I wanted to
45:48
know sorry sir it I think this was tied
45:51
to a question you asked earlier which
45:53
I’m not finding right now if you talk
45:55
about the whole question we’ll take a
45:56
look at it again
45:58
could you partner with someone who has
46:00
the money or maybe hole still the deal
46:02
furphy garrisons done that garrison
46:08
do it all the time are you certain one
46:11
of the biggest wholesale companies in a
46:13
Baltimore DC area doing single-family
46:15
smaller multi-family last year I
46:17
wholesale to do and seventy seven units
46:19
Atlanta I put 100 grand in my pocket for
46:22
doing 23 hours worth of work definitely
46:25
possible what’s nice about real things
46:28
there’s a million ways to make money in
46:30
real estate that really is right just
46:32
kind of being creative and doing what’s
46:34
your Humphrey put your creative next
46:36
quote alright next question when
46:40
analyzing deal what are the important
46:41
factors that you consider like cap rate
46:42
etc so I guess there’s two sides to
46:45
right as a passive investor right
46:46
wouldn’t want to look for you want to
46:47
look what is the property currently
46:49
doing what is the business plan and what
46:50
is the syndicator putting in for year
46:52
one in terms of how they expect to go if
46:55
the syndicate is expecting to do a 30%
46:57
pop in income and you’re one of there’s
46:59
no there’s no down units or anything
47:01
like that probably not gonna happen
47:03
right you know so you want to really see
47:05
where the deal is and what the year one
47:07
looks like and your does that match the
47:08
business plan second a bigger question
47:10
you look at yourself is what are your
47:11
rent escalators and your expense
47:12
escalators right kind of industry norm
47:14
is you really want to be two to three
47:15
percent on the income and you know two
47:17
percent on the expense
47:19
sometimes you see guys that put ten
47:20
percent run escalators don’t ask me why
47:22
probably not gonna happen right most
47:24
markets are you know two to four percent
47:26
on the good markets of terms of rent
47:28
growth next thing you want to see is
47:30
really what is that exit cap so the AVA
47:32
cap just means what cap rate are they
47:34
modeling the exit then whatever their
47:36
time to end the deal is in terms of what
47:38
the market is so you know you want to
47:40
see today if it’s a six cap market you
47:42
want to you assume you model that the
47:44
markets going to get worse than it is
47:46
today not better so you want to see that
47:47
you know increasing and yeah I mean
47:51
those are the main ones knee other ones
47:52
all this kind of occupancy right what is
47:54
their occupancy in terms of the market
47:57
next question how do you feel and we’re
48:00
gonna go for another circuit fair some
48:02
time five minutes to go yeah I was gonna
48:07
say a to more questions we’ll wrap it up
48:08
next question how do you feel about
48:10
areas with low population growth plus or
48:12
minus percent one percent but have job
48:14
growth greater than two to three percent
48:18
all I should this one I mean it’s all
48:21
about your business plan if you’re what
48:22
you’re comfortable with it so I mean
48:24
those those are fine right as long as
48:25
it’s growth I don’t like markets that
48:26
are falling personally in terms of
48:28
growth but if there’s population growth
48:30
in you know even if it’s small that’s
48:32
fine if guess what if you have job
48:33
growth that means probably your rents
48:35
are actually gonna increase quicker than
48:36
their anything else and then last but
48:39
not least of questions what are the main
48:46
factors you consider in a stress test I
48:51
think yeah I think three that we
48:53
answered that one earlier right so you
48:56
want to look at you know what is the
48:58
via the property both the economic and
49:00
physical you want to look at what are
49:02
your rents what are the market rents and
49:04
kind of how you’re comparing and what is
49:06
your ret pops and you know what happened
49:08
to cap rates get worse and what you’re
49:10
expecting so fundamentally we’re just we
49:12
the biggest thing we look for is make
49:14
sure how bad does a deal have to get
49:16
before we can’t even service the note
49:18
all right that’s maybe the question
49:19
we’re all trying to answer so with that
49:20
said we’ll stop right there and garrison
49:24
you wanna wrap us up absolutely call to
49:27
action in the comments below we have a
49:31
Facebook group definitely join that
49:34
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49:35
did not get answered here we will answer
49:37
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49:39
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49:41
create the largest content driven
49:44
Facebook group in the world number two
49:49
next month third Monday of the month
49:52
third Monday of every month we’re gonna
49:54
do this it might not be as Q & A driven
49:57
it may be we’re not sure we’re working
49:59
with this if we’re gonna figure this out
50:01
as we grow but it will bring guest
50:03
speakers to ya and we’re definitely
50:05
gonna bring in some big hitters and some
50:07
big guest speakers so it’s not just the
50:08
three of us every time we have an
50:10
awesome team of people behind us our
50:12
goal is to grow with you and number
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50:22
market reach out to us we will have 150
50:26
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50:29
before mid to late summer time reach out
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and everybody well thanks everybody
50:38
we’re gonna close up shop but we will
50:41
talk to you all soon
50:42
see you on Facebook thank you so much
50:46
for attending
50:46
thank you all everybody
50:54
you