MFM Live: The Good, Bad, & Ugly of Your First Apartment

Kyle Mitchell & Brian Kochendorfer drop nuggets about recent apartment buildings they have purchased

Raw unedited footage from our recent Online Meetup with Kyle Mitchell & Brian Kochendorfer where each of them talk about recent apartment buildings they have purchased.

Kyle Mitchell owns 100+ apartments in Phoenix Arizona and has an awesome multifamily podcast where he delivers top notch information every week.

Brian Kochendorfer is a commercial broker and investor from Chicago who runs a Multifamily Masters Meet-Up in that market.

VIDEO TRANSCRIPTION

00:00
this computer go ahead now
00:03
that means Faris you need to be on the
00:05
ball of those hackers are ready boarded
00:08
everything don’t worry just to give you
00:10
guys the heads up if we do get Zoom
00:12
bombed we will be ending this for
00:15
everybody hit the same link log back in
00:18
and last time nobody showed up
00:20
so hopefully we don’t have any naked old
00:22
fat white men doing anything on this
00:25
multi-family agrestic scar ah so I hit
00:29
the record button I am going to make
00:30
Faris the host boom Faris is now the
00:35
host and my name is garrison Gilbert
00:38
this is multi family masters live
00:41
what is multi family masters live we are
00:43
in the process with my two business
00:46
partners mr. Farris Musa mr. pouchy and
00:48
I should say my three business partners
00:50
mr. Bethany Smith who makes this thing
00:52
rock and roll and we have a bunch of our
00:55
other leaders in here one of them being
00:57
Mitchell Chris Collins I don’t know if
00:59
koalas in here Leone Tran is probably
01:01
running around here somewhere and we got
01:04
the whole team in the house but we are
01:05
multifamily masters and we are creating
01:07
the world’s largest multifamily the
01:09
world’s largest real estate the world’s
01:12
largest cash flowing platform we have 70
01:16
Plus meetups all across the world if you
01:19
are interested in hosting a meet-up
01:20
if you are interested in becoming a
01:22
professional in your local market it’s
01:25
an it’s an easier way to raise capital
01:27
it’s an easier way to have more deal
01:29
flow it’s an easier way to network if
01:31
you want to become that professional in
01:32
your space reach out to myself feel free
01:35
to shoot me a PM send me a text message
01:39
for 108 hundred seven five five five
01:41
shoot me over an email garrison at
01:44
garrison Gilbert calm feel free to jump
01:48
in our Facebook group multifamily
01:50
masters comm Facebook group Bethany in
01:53
the chat below this and on the Facebook
01:55
live can you please link up our Facebook
01:58
group please yeah I’m so we’re in the
02:03
process of creating the world’s largest
02:04
multifamily platform we have an awesome
02:07
Facebook group with about 5,000 members
02:09
right now if you’re not a member of that
02:10
group get on Facebook search for a multi
02:13
family masters comm we have a mastermind
02:16
if you are interested in learning
02:18
sharing networking growing and making
02:21
this business happen this is a team
02:22
sport surround yourself with a bunch of
02:24
winners reach out to us we have an
02:27
awesome mastermind program it doesn’t
02:29
matter how an experience or how
02:30
experienced you are we can help take you
02:33
to the next level you want to surround
02:35
yourself with like-minded people and we
02:37
are here to help you
02:38
we’re here to hold you accountable we
02:40
are here to look over your shoulder make
02:43
sure you don’t make some of the mistakes
02:44
that we’ve made and most importantly we
02:46
want to partner with you that’s how we
02:47
grow our inventory I have 600 plus
02:50
apartments how has 600 plus apartments
02:52
Faris has 13 15 hundred plus apartments
02:56
we have a YouTube channel we have a
02:59
monthly newsletter we have a mastermind
03:01
that I just described that’s pretty much
03:05
it about myself that’s pretty much it
03:07
about us I’m gonna let mr. Farris Musa
03:09
my business partner mr. Powe Chi take it
03:11
over from here and let them introduce
03:13
themselves
03:14
awesome awesome I appreciate that
03:17
garrison Gerson always brings it the
03:19
beginning of the the beginning you got
03:21
to bring some energy and I would always
03:22
love the energy that garrison brings I
03:24
lay a good practice in this everyday man
03:26
and hit all the points didn’t forget a
03:29
single thing every week I would like to
03:35
introduce mr. pouchy appreciate it thank
03:39
you well everybody my name is pouch II
03:42
live in Los Angeles real estate investor
03:45
entrepreneur
03:47
most of my businesses are around real
03:49
estate although I do have one in digital
03:50
marketing as well began my began my
03:55
investing about three years ago in
03:58
multifamily with a 40 unit building in
04:00
Indianapolis although I live in LA all
04:03
of my properties are out of state so
04:05
that’s what’s one of the original
04:06
reasons why I started this group was to
04:08
find other people who could who are
04:10
interested investing distance-wise and
04:13
this has helped us grow where you can
04:15
now invest in many different cities and
04:17
you have many different contacts from
04:19
all these people in this group where you
04:21
can reach out to people if you’re
04:22
interested or people are interested in
04:24
your city and you can find deals they
04:26
certainly great ways
04:27
to connect with people here that’s one
04:29
of the major things that we brought to
04:31
the table here since then I’ve been
04:34
invested in at several other
04:35
syndications 2005 was involved in i’m
04:39
2019 i was involved in five syndications
04:42
so kind of a total of over a thousand
04:44
units at this point and actively looking
04:47
to get more so that’s a little about me
04:49
go ahead curse alright so I guess I’ll
04:52
go next so for those of you that don’t
04:55
know me my name is Faris Musa I am based
04:57
here in Houston I’m actually back at
04:59
home down out of the office I have a
05:01
company called disrupt equity kind of we
05:03
have basically apartments you know
05:05
anywhere from 100 to 300 units
05:06
throughout the country really be focused
05:08
kind of Georgia and Texas our two
05:09
markets but again we’re happy to look at
05:11
other markets we are vertically
05:13
integrated we have kind of our own
05:14
in-house management company as well and
05:16
you know happy to talk about anything
05:18
real estate so me palem garrison and
05:20
Bethany and cocktails and quoi we
05:22
probably talk more real estate than do
05:24
anything else but really MFM is kind of
05:25
our baby we’re excited to see it really
05:27
bro its continuing to grow and really
05:29
it’s meant to be a platform for you all
05:30
right so hosting Xenophon lives is
05:32
really just one piece of that right it’s
05:34
really about how do we put on high
05:35
quality content quality speakers or
05:37
things that people want to hear about so
05:38
if you have anything specific you guys
05:40
want to see in a future one please let
05:42
us know feel free to reach out to me or
05:43
anyone else on the team whether it’s
05:45
Facebook slack or something else we’re
05:47
always happy to kind of entertain ideas
05:48
and if we can’t talk about it between us
05:52
or someone we’re closed networks we know
05:53
people that know people as well so if
05:55
you guys want to get Bill Gates on pal
05:56
we’ll figure that one out but you know
05:58
really we’re happy to kind of
05:58
accommodate but you know with that said
06:01
you know kind of today’s goal is really
06:02
another thing that people I think
06:04
everyone starting wants to know about
06:06
right it’s really how do you get started
06:08
right what is the art of the first deal
06:11
what are people’s experiences with that
06:12
first deal right well they’re good bad
06:14
and ugly and you know I think everyone’s
06:16
always had their first experience and
06:18
multi-family just like other things in
06:20
life right and that’s the one that you
06:21
kind of remember the most cuz you’re
06:23
constantly learning right I remember for
06:24
my first deal it was kind of being shot
06:26
out of a cannon lots of different things
06:28
and so we figured you know really let’s
06:30
do the small kind of a little bit more
06:32
of an intimate panel right and kind of
06:34
two people and really talk a little bit
06:36
more about what it’s like to get started
06:37
and so really all kind of moderate this
06:40
and kind of ask some questions dive in a
06:42
little bit
06:42
Khalid garrison also chimed in as needed
06:44
and really you know feel free to add in
06:47
questions right I will look at the
06:48
questions being asked to kind of help
06:50
you know guide the moderation but really
06:52
again this is meant for you all right so
06:54
please feel free to leverage it please
06:55
feel free to ask questions and so we’ll
06:57
go for about 45 minutes to an hour ish
07:00
and then we’ll do a breakouts at the
07:01
very last basically 20 minutes right 15
07:04
minutes a break 15 20 minutes of
07:05
breakouts and that’s basically where we
07:07
will randomly split up this entire group
07:09
into you know smaller groups of five six
07:11
seven people so you can get to know the
07:13
people around you right like Garrison
07:15
mentioned like comment this is
07:17
absolutely team sport so if you’re newer
07:19
to multifamily get to know other people
07:21
right I mean you know we’ve only been
07:23
able to grow because we know you know
07:25
the people around us and put you know
07:26
partner with them whether it’s on a deal
07:27
whether it’s on a relationship or advice
07:29
and so you know that’s kind of a name of
07:31
the game that’s really the goal of the
07:32
breakouts is just uh you know you have a
07:34
smaller group and get to know the other
07:35
people where do they live what are they
07:37
working on what is the date of it they
07:38
have one what have they done real estate
07:40
what are they looking real so those are
07:41
all great kind of conversation topics
07:43
and so I’ve said a lot I will probably
07:47
shut up now and I will go ahead and let
07:50
our two panelists introduce themselves
07:51
so you know first panelist is our you
07:53
know friend Kyle very involved in MFM
07:55
helps us kind of keep all the wheels
07:57
humming along kyle is based out of
07:59
California and I will let him introduce
08:00
himself so Kyle you want to go first
08:02
yeah absolutely thanks Faris Kyle
08:04
Mitchell our company’s apt Capital Group
08:07
you may have known me before moment with
08:08
States me and my business partner just
08:10
recently merged company so we’re apt
08:12
Capital Group now and we focus in
08:14
multi-family value add out in the
08:16
Arizona market so we’ve got property out
08:18
in Tucson and also in Phoenix you’ve got
08:20
a podcast that hosts goes on every
08:22
Monday and Friday passive income for
08:24
multi-family real estate but just here
08:26
to answer any questions add value any
08:28
way I can so happy to be on here all
08:31
right and our second panelist we have
08:35
today I really wish I had that radio
08:36
voice kind of drumroll in the background
08:38
next time Chris we’ll have you have your
08:39
drum set ready to go but uh let’s have
08:42
Brian do you want to go ahead and
08:43
traduced yourself as well there’s a
08:45
nurse did not pronounce your last name
08:47
either
08:47
Brian give it to people more time I
08:49
figured I would I keep myself better not
08:54
even try yeah Brian coking over overhead
08:57
I’m out in Chicago and my company is our
09:01
equity group AARC
09:02
equity group and I focused primarily on
09:04
properties in the Midwest
09:06
I have properties in both the Chicago
09:07
area as well as Indiana I have also been
09:10
a multifamily broker for the last 13
09:12
years here in Chicago so a lot of
09:15
experience from that side
09:17
I started passively investing in 2017 so
09:20
I did a couple larger deals from the
09:22
passive side and then I started actually
09:24
buying in 2019 and picked up three
09:27
properties about 180 units total just in
09:29
2019 so looking for more under contract
09:32
with a couple smaller profits now and
09:33
open up keep building up so happy to add
09:36
value as well anyway can awesome so you
09:39
guys heard that I mean both of them are
09:40
basically investing you know away from
09:42
their hometown right so keep that in
09:44
mind you know that’s obviously probably
09:45
plays into this but maybe I guess to
09:48
each one of you just want to go through
09:50
really maybe tell us about your first
09:51
deal where it was located how you found
09:54
it and then we can kind of maybe go into
09:57
a little bit more of the mechanics of
09:58
the closing you know what happened
10:00
etcetera so Colleen gonna go first you
10:03
want me to go first sure yeah
10:05
so our first property was in Tucson
10:08
Arizona it’s a 42 unit property and the
10:11
way we found it was if you’ve heard the
10:13
stories on other podcasts I’ve been on
10:15
we used to drive to Tucson my wife and I
10:18
on our only day off during the week so
10:20
on Wednesday was typically when we left
10:22
and we drive out there cuz flights are
10:24
limited and so we would leave at 2:00 in
10:25
the morning get there at 9:00 a.m. and
10:27
we would set up tours all day long with
10:30
our property management company that we
10:32
selected and drive home at night get
10:34
home at like 12:00 or 1:00 the next
10:36
morning so we did that once a month and
10:38
one of those drives one of the brokers
10:40
you know I was coming to town he
10:41
actually called me and said hey
10:42
literally just got this listing today
10:44
I’ve not seen inside the units just got
10:46
the keys do you want to tour this
10:48
property with us and we said yes and our
10:51
property management came with us and we
10:53
were the first investors to see that
10:55
property so you know we got a chance to
10:58
take a look at the property and then
10:59
also tour the comps why we were out
11:00
there
11:00
since our property management company
11:02
was there so that was about three weeks
11:03
before it went to market and we had done
11:06
a massive amount of due diligence and
11:08
underwriting prior to it going to market
11:10
we were able to make a competitive offer
11:12
and get it under contract within a week
11:15
but essentially we found it by driving
11:17
out there and being there on the day
11:19
that the broker happened half the deal
11:21
and I think that’s the name of the game
11:23
right one of the most important things
11:25
in this business is really broker
11:26
relationships brian is a broker will
11:28
ahem probably touch on that here shortly
11:30
but you know get to know your brokers
11:32
right treat them as friends treat them
11:35
as you know business relationships to
11:36
write and be methodical write about your
11:39
relationship with them take notes
11:41
understand what they’re doing how many
11:42
kids do they have and you know don’t
11:44
waste their time is there probably the
11:45
most important thing I kind of really
11:47
respect that relationship and so you
11:49
know it’s common mention right Totti if
11:51
you happen to catch the broker on the
11:53
right time on the right day in the right
11:55
mood right that’s how you get a deal and
11:57
so there’s a lot of info you probably
11:59
for people that are new or you hear a
12:00
lot about off market properties and
12:01
really in this market especially with
12:04
kind of the web and everything else
12:06
really deals pretty much 90% of deals
12:08
still go through brokers right I mean
12:11
it’s you know my not me
12:12
shared broadly but it’s still going
12:14
through a broker so definitely important
12:16
to kind of understand I’m and Brian
12:19
maybe do you want to go ahead and give
12:20
the same parallel to the story and then
12:21
maybe yeah I’ve been asked your
12:23
questions after that yeah sure
12:25
so the first deal that I bought was
12:27
about a little just about a year ago
12:29
there’s actually Northwest Indiana in
12:31
Chesterton and it’s about an hour
12:33
outside of Chicago and I’d actually been
12:35
looking in the Indianapolis market and
12:37
had built some relationships with
12:39
brokers down there and one of the
12:41
Indianapolis brokers that I had talked
12:42
to you I had come across this property
12:44
in Northwest Indiana he knew we were
12:46
looking in Indiana didn’t want to buy in
12:48
Illinois and so he called us as Lebanon
12:50
helps our outside of Chicago and they
12:53
had quite a few offers on the property
12:55
it was one of those where there’s a
12:56
first round second round best and final
12:58
a little frustrating we went through all
13:00
the steps and then the seller decided
13:02
you know what we’re not getting her
13:03
number of screws can go ahead and
13:04
refinance instead and so you know
13:07
everything just went cold and about 45
13:09
to 60 days later we got a call back from
13:11
the broker that you know seller
13:14
not in fact it’s a number that he wanted
13:16
on a refi they are better off selling
13:17
and our other a couple competitors had
13:20
moved on to another property so we were
13:22
so interested we can go ahead and take
13:24
it down so little bit of a different
13:25
approach thing Kyle’s first one buttons
13:28
you know garrison and Palin thing I saw
13:34
some parallels there right Indian today
13:35
he’s still talking to the broker at the
13:37
right-wing time right in same thing I’m
13:39
we’ve gotten deals the exact same thing
13:41
give a good offer and just wait I you
13:44
know you I told Brooke as I can’t
13:46
usually I can’t come up on my price
13:47
because that’s tied to my return but I
13:49
can come up on my wrist right so what’s
13:50
gonna take the deal to get done whether
13:51
it’s let someone else waste the time and
13:53
if they can’t perform the comeback you
13:55
know 60 days later so um but again it’s
13:57
still going through the brokers but let
13:59
me ask you both this question really
14:01
quickly do you guys try anything size
14:04
brokers meaning that either of you guys
14:06
try to do what a lot of people do right
14:08
around you know whether it’s
14:09
skip-tracing or letters or some of the
14:12
other kind of mechanics that I know a
14:13
lot of people that come from residential
14:15
typically like to start often good right
14:19
um you know I’m doing a little bit of
14:22
that in Northwest Indiana obviously
14:23
being a broker in Chicago I have access
14:25
to you know co-stars on those other
14:27
sites and so I have a small database and
14:30
some contacts in Northwest Indiana so
14:32
we’re doing some letters and you know
14:34
cold calls and reaching out to owners
14:36
directly you know building relationships
14:39
I don’t think it’s not something you can
14:40
just send one postcard or make one phone
14:42
call and get a deal it’s more my goal
14:45
with that is to try to stay in front of
14:47
people you know what three four times a
14:49
year hopefully when the time is right
14:51
from the cell I’ll be top of the mind so
14:53
I am doing some of that in the same set
14:55
or limit further out like Indianapolis
14:57
Cincinnati I’m relying more on brokers
14:59
for that right now you know and
15:01
everything in this business whether it’s
15:02
straight through a broker or it is cold
15:04
calling and letters and whatnot it’s all
15:06
about one thing consistency absolutely
15:09
again going back to being methodical
15:11
yeah so you know it’s like I’m stroking
15:15
all day with my partner Ben about this
15:16
but it’s about being not just efficient
15:19
but being effective right it’s a little
15:21
bit of both and so um something to keep
15:23
in mind there’s a difference between
15:23
being effective and being efficient hey
15:25
Bryan here’s a random off-topic question
15:27
what do you
15:28
juergen you got a water is that a water
15:29
bottle of water well some brown water
15:31
what you got a little cool down Chicago
15:35
brewed whiskey nice good for you man
15:37
cow what are you drinking water my man
15:43
sorry so give you guys drunking water
15:45
whenever you met the broker or not I
15:47
mean what are they kind of darillium
15:48
you know what’s the take aways there
15:51
what’s that bears I said were you guys
15:54
drinking water whenever you met the
15:55
broker remember it because I was driving
15:57
to Tucson so so maybe going back so you
16:04
know both you guys first still obviously
16:07
weren’t really expecting it it just kind
16:09
of happened right as we kind of went
16:10
through but obviously you guys are
16:12
excited what you know once you maybe my
16:16
question is really once you thought you
16:18
had the dealer had that it was the next
16:19
thing you did right the next phone call
16:21
you made was to who and why yeah for me
16:25
it was our SEC attorney just to make
16:27
sure I had all the ducks in a row
16:28
you know ours was a smaller property 42
16:30
units so we could have Jay beat it for
16:32
sure but my long-term goals were to be a
16:34
multi-family syndicator right so I want
16:36
to go through that whole process so my
16:38
first call other than with the broker
16:40
negotiating the the PSA obviously was to
16:43
the SEC attorney to get the timeline of
16:45
when everything needed to be done to get
16:48
my ducks in a row Brian yeah same thing
16:52
for me once we got property under Li
16:54
first call us to our attorney and we had
16:57
an attorney lined up from before we even
16:58
we’re looking at properties so I think
17:00
it’s important to you get some of those
17:02
basic team members on board so you know
17:05
who to call when you get a proper tender
17:06
line you’re not scrambling for its or
17:08
any last-minute so first of all for all
17:10
to see it’s ready
17:13
yeah Brian makes a good point there too
17:15
is once you get a property under LOI
17:18
things happen very quickly I mean 45 to
17:20
60 days later you’re closing hopefully
17:22
right so you don’t want to be putting
17:24
together your team once you have a
17:25
property under LOI you should know the
17:28
property management company that you’re
17:30
going with you should know the attorneys
17:31
the transactional attorney and this SCC
17:34
attorneys are going with construction
17:37
crews if you’re gonna go outside of your
17:39
property management company so all those
17:41
things
17:41
in advance otherwise there’s just too
17:43
much going on I mean first of all you
17:45
gotta have your SEC documents done then
17:48
you’ve got to raise the money if you
17:49
have all this stuff going on at once
17:51
you’re just not gonna be able to put it
17:52
together in time or efficiently and
17:54
effectively kind of as Ferris was
17:56
mentioning and it really damaged the
17:58
clothes no and then and I think that was
18:01
kind of really that’s a huge point right
18:02
just to really reiterate it it’s you
18:06
don’t go into a deal with saying once I
18:08
get to deal in a country I want to
18:09
figure out the rest right because it is
18:11
very much a time situation I like to say
18:14
what we do is project management on
18:15
steroids right I used to work at
18:17
Microsoft my background project
18:18
management and that gave me a lot of the
18:20
right skill set for doing this because
18:22
there’s 20 different things going on and
18:23
so it’s important to have your team and
18:26
yeah that team can vary by markets right
18:28
make sure you know how you’re gonna do
18:30
that do you have a good mortgage broker
18:31
on your team make sure you understand
18:33
how you’re gonna do your property
18:35
minutes do you have a good property
18:36
manager team what about insurance right
18:38
what about you know all it would read
18:41
like comments if you’re gonna do a lot
18:42
of rehab of construction what does that
18:44
look like right really starts identify
18:46
these pieces and this is where again
18:47
having relationships matters right
18:49
everyone here on this call you know we
18:52
all have different ways tips different
18:53
people we’re happy to recommend right
18:55
people we’ve worked with people who have
18:56
experience with so definitely start to
18:58
line up that team of yours as you start
19:01
to get into the business right and so
19:03
Brian I know I had Collins that question
19:05
maybe kind of anything to add maybe at
19:08
that point yeah I would just to kind of
19:10
go off what you just said Ferris is we
19:12
had all those people lined up before we
19:14
had our first deal under ally we had our
19:16
insurance person our lender our property
19:19
manager and you know your property
19:21
manager might be different depending on
19:22
what area you’re buying it but if you’re
19:23
looking in a couple different areas
19:25
start talking to property managers
19:26
that’s probably one of the most
19:27
important things too because they also
19:29
have direct access to not only property
19:31
owners but brokers as well so they can
19:34
help give you other contacts that you
19:36
might need whether it’s insurance people
19:37
or lenders so property managers and
19:40
talking to them are one of the most
19:41
important things right behind a broker
19:43
yeah absolutely
19:44
um yeah and I feel like I had another
19:48
thought there but I guess it’s gone so
19:51
then you know let’s talk a little bit
19:52
more so
19:54
I don’t remember did you say to get your
19:55
deal as well no stars in the joint
19:58
venture it’s true yeah as part of mining
20:01
with one primary equity partner so we
20:03
just live it as a baby God and so for
20:05
those who don’t know right what is the
20:06
what is the difference between the two
20:07
syndication is basically if I have you
20:09
know let’s just say I have let’s say I
20:11
have $10 to go invest in a candy store
20:13
all right well I can only buy so much
20:15
candy but if me and 50 friends have $10
20:17
well guess what we can buy part of the
20:19
candy store right and we have someone
20:21
that we designate to kind of run the
20:22
business right so to speak so that’s
20:24
what syndication is you’re basically
20:25
pulling together you and other people’s
20:27
money to go and accomplish a bigger
20:29
better thing right in our space you’re
20:31
buying the large apartment complex right
20:33
you have hopefully professional
20:35
management you are you know basically
20:37
doing it with us with the mindset that
20:39
hey someone is gonna run it while all
20:41
the other people are kind of in the back
20:42
seat right and so that’s what
20:43
syndication is in Brian’s situation
20:45
there was him and a few other people
20:47
write to each kind of had a
20:48
responsibility but it was kind of much
20:50
more limited set of people and usually
20:52
they all kind of have some degree of
20:54
involvement some kind of control so
20:56
that’s kind of the difference between
20:57
the two but maybe going into the
20:59
syndication track I’ll what what did you
21:02
learn at your first deal that was kind
21:04
of interesting to you I guess so I might
21:07
answer on this when I’m curious to kind
21:08
of hear elite thoughts yeah I learned a
21:10
lot definitely have a team set up before
21:14
going into a deal kind of like I said
21:15
with the rest of it with a lender
21:18
property management but not just them
21:20
but people who are gonna sign on the
21:21
loan bring net worth and liquidity you
21:25
know when we did our first deal it was
21:27
giving my wife and I our parents were
21:28
going to sign on the loan so essentially
21:30
zero multifamily experience and we got a
21:34
little gun-shy with the raising of the
21:36
capital we could have gotten there but
21:38
we just wanted to make sure that we can
21:39
close so last minute we actually brought
21:42
on partners had to switch lenders
21:44
because certain that lender would not
21:46
allow us to bring on partners so we
21:48
actually jump ship 29 days before close
21:51
I had already used an extension and we
21:55
ended up closing just on that last day
21:57
the thing that I learned is how much
21:58
control the lender has I mean they’re
22:00
lending you 70 to 80 percent of the
22:02
purchase price right they control the
22:04
cards they can tell you yes or no on
22:06
anything
22:07
one day could be yes and tomorrow it can
22:09
be no and they don’t really have that
22:11
reasonable explanation for it they’re
22:12
lending you the capital they’re gonna
22:14
make a decision so it’s extremely
22:15
important to understand the landing
22:18
environment to be transparent with the
22:21
lender to get as much communication
22:22
going on with the lender because at any
22:25
moment that that can turn on a dime and
22:27
you know we really learned that on both
22:28
the deals that we’ve done last last year
22:31
is when on our second deal when Fannie
22:33
and Freddie said hey we really can’t
22:35
loan anymore we’re over our amount for
22:38
the year the interest rate shot up like
22:40
crazy you know we had to actually hit
22:42
pause on our acquisition because we
22:43
didn’t know what was gonna happen
22:44
luckily they turn the spigots back on
22:47
and they’re able to land again but you
22:49
know the lender controls a lot of the
22:51
cards and so if you don’t understand
22:52
that you need to have someone on your
22:53
team that does so it can protect you
22:55
from your downside you’re always gonna
22:57
risk but it’s about protecting your
22:59
downside as much as possible no
23:01
absolutely and you know it’s important
23:04
to realize that it’s really not your
23:05
property it’s more the lenders property
23:07
you just happen to kind of be involved
23:08
right and really have to look at it that
23:10
way the lender is a partner right they
23:12
are funding 70% of the deal right if
23:14
you’re not performing guess what the
23:16
lender will step in and get involved and
23:18
they have a lot of their lending
23:19
documents really tied to the tea right
23:23
with around all the rules because
23:24
they’ve seen it all done it all and
23:25
again right I mean you’re starting to
23:27
already see deals right now we have a
23:28
deal where we were brought in to help
23:30
manage because the same problem right
23:31
there was funny about the problems
23:32
lenders are happy to make that change or
23:34
force that change and so it’s important
23:36
to realize that and make sure you have a
23:38
good pathway on the lender and this is
23:41
where having a good broker you know is
23:43
90 day I mean we experienced the problem
23:44
on our first still – right around the
23:47
wrong broker really you know you got to
23:48
make sure you don’t get over-promised
23:50
and under-delivered
23:51
because that’s the worst place to be in
23:52
right at I mean you’re trying to raise a
23:53
certain amount of money you’re expecting
23:55
this and all of a sudden lending
23:56
completely blows up and so this is where
23:58
having a good broker that knows hey what
24:00
the appetite of different lenders are in
24:02
different markets right can helps kind
24:04
of navigate you in terms of picking the
24:07
right underlying debt the right rates
24:09
and understands what the best things
24:11
aren’t really where the risks are and
24:12
I’ll give you guys a real example right
24:14
so we have multiple deals in Atlanta and
24:16
we’ve learned from experience and this
24:18
is where an experienced broker would all
24:19
to know this that if you’re doing a C
24:21
Class B – deal in Atlanta Greystone does
24:25
not like Atlanta their offices are in
24:27
Atlanta and you know to them they just
24:29
don’t see past how Atlanta was ten years
24:30
ago right and so this is where having a
24:33
good mortgage broker will help kind of
24:35
steer you and make sure hey this makes
24:37
sense for this deal for this lender with
24:38
this type of appetite right because it
24:41
does suck having a larger experience to
24:43
get far and closing and then all things
24:45
start to you know shift and you have
24:47
them to basically backtrack and
24:48
backpedal and so again keep that in mind
24:51
that is a critical piece of the team a
24:53
team member Brian
24:56
so maybe kind of on the JV side I know
25:00
Kyle I was asking about more about the
25:02
syndication but again it goes back to
25:04
making sure you get your investors
25:06
inform the deal is changing what’s going
25:08
on there making sure everyone’s happy
25:09
right Brian on your side the jb is a
25:12
little bit different right you don’t
25:13
have kind of larger pool of investors to
25:15
really follow back up it’s just you’d
25:17
probably handful people so Amy I guess
25:20
maybe my questions any issues on the
25:21
lending side kind of through your first
25:23
deal so we really didn’t have any issues
25:25
on the lending side it went pretty
25:27
smooth our equity partner was you know
25:29
very well capitalized and had a lot of
25:31
experience we did have a couple issues
25:33
though you know when we first folks and
25:35
one mistake that we made was that we
25:38
didn’t we were doing a renovation loan
25:40
so we got about a million dollars in the
25:42
renovation money which we have female to
25:44
escrow account so we weren’t really too
25:46
concerned or didn’t think about I guess
25:48
I should say operating capital upfront
25:49
for those first few months now the
25:51
property was mostly occupied but as soon
25:54
as we took over and started making some
25:56
improvements we had about 10 to 12
25:58
percent of our tenants just leak within
26:00
the first 3045 days so we were pretty
26:03
close to you know just barely breaking
26:05
even that first month or to you and we
26:07
didn’t think to bring an extra two three
26:09
four months operating capital so going
26:11
forward I would never do a deal where I
26:13
don’t have at least three to six months
26:14
worth of all bills paid upfront just
26:17
sitting in an account doesn’t change the
26:18
numbers that much but you will sleep a
26:20
lot better at night if something goes
26:21
wrong reserves are critical let me have
26:25
some lulu that’s you have to make better
26:27
– every day I mean you just don’t know
26:28
what’s gonna happen you don’t know if a
26:30
co good virus is gonna show up because
26:31
you know clearly
26:32
for that right but I know you know think
26:34
it’s important to have reserves always
26:37
have that in your lender a lot of times
26:38
before some of that too right like Brian
26:40
mentioned he’s so for those that don’t
26:41
know the way the rehab heart works
26:42
depending on the loan right different
26:44
lenders do different things but usually
26:45
in this case he said he did a little
26:47
over a million dollars of rehab so that
26:49
million dollars will get parked in an
26:50
account and basically you have to do
26:52
some works prove it to the lender and
26:54
then you trawl some of that money so for
26:56
example Brian you probably spent a
26:57
hundred thousand dollars doing let’s
26:59
just say roots well you have to show
27:01
proof of that because the payment you
27:03
submit that to the lender then they
27:04
release that money from my experience
27:06
the worst part of syndication is the
27:08
servicing right that part of it where
27:10
you’re dealing with you know submitting
27:12
proof to the lenders getting payments
27:14
it’s a huge headache so but that’s what
27:16
he means by the construction side and
27:17
anyone out there as a lender has a
27:19
fantastic servicing Department please
27:21
let me know it would love to because to
27:22
me the honestly it’s painful write it
27:24
once especially I have multiple deals it
27:25
becomes a big burden but it’s it’s again
27:28
it’s it’s a necessary evil of the
27:30
business but in addition to the
27:31
construction part right the both of you
27:33
the lenders require you to have what’s
27:36
called a place reserves are
27:40
just did not requires to raise any money
27:42
up front we were we had the money in
27:44
escrow for the rehab and so they were
27:46
okay with that we just had as through I
27:48
think six months worth of taxes that was
27:50
it but that’s it you didn’t have to do
27:52
replacement insurance ongoing now well a
27:55
small portion ongoing gets put into a
27:57
replacement reserve account because we
27:59
get upfront like they are doing today
28:01
entitle you as well I’m guessing yeah
28:03
between 200 and 300 dollars but kind of
28:05
on top of that there’s also what’s
28:08
called and this is more for agency debt
28:11
and banked at but an immediate repair
28:13
list an re RL which is direct from the
28:16
lender and I think a lot of people don’t
28:17
know about until you go through this is
28:19
another thing I learned which luckily we
28:21
plan to do all the rehab the lender
28:22
wants to do but the lender is gonna go
28:25
audit the property and appraise the
28:26
property and take a look at it and let’s
28:29
just say the roofs are shot and you
28:30
don’t have that in your plans to do it
28:32
well the lender is gonna give you an
28:34
immediate repair list and it’s gonna
28:35
have a date on it when it needs to be
28:37
done so roofs in the next 12 months
28:40
parking on the next six months whatever
28:42
it is you know handicapped spot in the
28:44
next three months and if you don’t have
28:46
that budgeted you’re gonna have to put
28:47
it in your budget because the lenders
28:49
gonna make you do those things and so
28:51
that’s added on top of what your capex
28:52
budget already is so you’re not you’re
28:55
not gonna get away with not doing a lot
28:57
of the deferred maintenance on these
28:59
properties the lender is gonna find it
29:00
and they’re gonna go through that
29:01
property with a fine-tooth comb so you
29:03
need to have those reserves that we’re
29:05
talking about just in case or something
29:06
on that immediate repair list that the
29:09
lent that you may have missed that you
29:10
didn’t see because as soon as they tell
29:12
you that that needs to be done you’re
29:13
gonna have to raise additional funds I’m
29:15
just gonna hurt your numbers obviously
29:17
or you’re gonna have to dip into another
29:19
part of your rehab budget which you
29:21
probably don’t want to do yeah so
29:23
remember what I said guys about how it’s
29:24
the lenders deal and you’re just kind of
29:26
helping right that’s them mandating
29:28
requiring you to do that or immediate
29:29
repairs list and so if you guys keep
29:36
capex money you keep three to six months
29:39
of mortgage money how much extra
29:42
liquidity do you guys keep one on hand
29:44
for each apartment building right we’re
29:49
going forward
29:50
want to keep at least six to twelve
29:52
months if possible raise it up front and
29:53
one thing with agencies right now Fannie
29:56
and Freddie they’re making you raise
29:58
anywhere from 6 to 18 months of
30:01
principal and interest upfront they’re
30:04
saying you can get it back in about 12
30:05
months so I’m just under 18 for that
30:07
initial cost upfront and whenever they
30:09
get that money back I’m not counting it
30:11
as a capital expense I’m just going to
30:12
keep that my reserve account for future
30:14
capex projects and for those who don’t
30:16
know that’s that’s ultimately one of the
30:19
biggest things it’s kind of screwing
30:21
with acquisitions right now the past 3-4
30:23
months white with kool-aid basically the
30:25
fact that the lenders are mandating much
30:27
much more reserves than he used to have
30:28
again that’s money you have to raise and
30:31
have it on hand and give it to the
30:32
lender and after a while they’ll give it
30:34
back to you but again that just changes
30:35
the numbers change the return profile
30:37
yeah and you have to analyze your deals
30:39
accordingly because it is going to throw
30:41
off your numbers on the back end and you
30:43
don’t want to be a little shortchanged
30:44
when you got to pay off your investors a
30:46
refinance your deal or make your monthly
30:48
distribution checks and then Kyle did
30:53
you have anything more to add than you
30:54
get it yeah I mean we have three to six
30:56
months of working capital plus extra
30:59
reserves plus a contingency of 10% on
31:01
our tire capex project so we build in a
31:04
lot of reserves there just in case
31:05
because again just like you said first
31:08
once you hit a Cove in we would have
31:10
never know and we’re not through this
31:11
yet right I mean in fact here are the
31:14
easy
31:14
michael–ah through the really easy part
31:16
right checks out people have money you
31:20
know people are on unemployment I mean
31:22
I’m more curious see what happens later
31:24
heroes act acids as is today there’s
31:26
another 12 months a moratorium on
31:28
addictions I don’t think it will at that
31:30
but we don’t know what’s gonna happen
31:31
for the next 12 months so you know if
31:34
you’re out of reserves now you’re gonna
31:35
be in trouble I think I think September
31:37
and October are gonna be difficult on in
31:39
might be ya know for sure so um
31:42
definitely have reserves and also to one
31:45
other thing to add that I think neither
31:46
that maybe they kind of touched on it
31:48
but if you’re doing a deeper value-add
31:51
deal plan for so much more reserves you
31:54
just never know what’s gonna happen
31:56
right because it could be the situation
31:57
where the lender is holding on your
31:59
money which I’ve experienced personally
32:00
right
32:01
where the lender will literally say the
32:03
best turnaround they’ve ever seen
32:04
but then they’re gonna be a complete
32:05
pain to release any money that’s a loan
32:07
to own lender right I chose the wrong
32:09
letter but again having extra cash on
32:11
hand and help because the problem is if
32:13
you’re doing a deeper value add you
32:14
actually need that money to get things
32:16
ready so you can rent them in cash flow
32:18
otherwise you’re gonna stay in the red
32:19
and it gets worse and so you know
32:21
definitely gauge the amount of reserves
32:23
tied to the risk of the deal is an
32:26
important thing too it’s mean it’s not
32:27
just a one-size-fits-all thing um so
32:31
there may be kind of continuing on the
32:32
store because I do want to make sure we
32:34
have enough time for questions as well I
32:35
know there’s a lot of questions coming
32:36
up so I’m gonna start to go through them
32:38
shortly but let’s finish through the
32:39
life cycle of that deal right so yeah
32:41
he’s kind of starting to put together
32:42
the team obviously Capital encontró
32:44
started putting in the team
32:45
what about closing kind of any hiccups
32:48
any surprises on closing or anything the
32:51
interesting guys learned either of you
32:53
yeah for me it was switching lenders at
32:56
the last minute you know we had 29 days
32:58
to go we end up getting very lucky we
32:59
got an 81 basis point discount on her
33:01
interest rate so went for 5.0 one to 4.2
33:05
but that was that zero skill involved
33:08
right so it was definitely more luck
33:12
than anything but it’s just to have all
33:15
your ducks in a row before you start I
33:17
mean even if you have all your ducks in
33:20
a row before you start there’s gonna be
33:22
hurdles and challenges along the way
33:23
with the lender with due diligence with
33:26
whatever and so you want to have as much
33:27
stuff done before you even get the
33:30
property under contract so that you can
33:33
handle the things and the fires as they
33:34
come up on you know what is always gonna
33:37
happen versus having nothing set up
33:40
scrambling and then having to deal with
33:41
the fires as well you’re gonna miss
33:43
things and really those first 30 days
33:45
out to get a property under contract is
33:47
crucial that you have your full focus
33:49
and attention on the property cuz that’s
33:51
the point where you want to ask yourself
33:53
mmm what am I missing
33:55
why is this not a good deal you want to
33:57
talk yourself out of it and if you don’t
34:00
have your full focus and attention
34:01
because you’re dealing with other stuff
34:03
you’re gonna miss something we have a
34:07
couple
34:07
as we had were one as cattle mentioned
34:09
before the lender comes to do when does
34:11
their immediate repair lists so we got
34:14
that list pretty late in the game wasn’t
34:15
too bad you know we had a couple things
34:18
on there already in our budget but there
34:20
was a couple that we did not have so we
34:21
had to figure out you know how to absorb
34:24
that and put that into the budget and
34:25
then about a week before closing we
34:27
found out that another you know five or
34:29
seven tenants left and it was already
34:31
you know we had 100 units we assumed her
34:34
taking it over with about 90 percent
34:36
occupancy then we found out that it was
34:38
really 83 84 percent occupancy and it
34:41
became clear that the owner the prior
34:43
year had just put bodies in there just
34:45
to fill it up to show good occupancy oh
34:47
man it was yeah it was a pretty apparent
34:51
within 30 days as Kyle said the first 30
34:54
days are really important but we were
34:55
down to you you know mid studies I can
34:57
see in pretty short time so thankfully
34:59
all those units we were planning on
35:00
rehabbing anyway so we got a jump
35:02
started on that but was a little bit
35:04
unexpected and you know we made it
35:06
through okay but I definitely made sure
35:08
to have more of an operating budget the
35:10
next time yeah absolutely
35:13
so then economy I guess sounds like
35:18
really nothing too crazy on the closing
35:19
right now post closings kind of where I
35:21
think you guys were starting to have
35:22
hiccups but you know kind of what
35:25
takeaways was there on just the business
35:27
plan signs they closed what it would it
35:29
take over look like maybes one question
35:31
for you guys right so I know you know
35:33
most of the time that’s the first time
35:34
you ever seen that takeover process
35:35
right so what does that look like and
35:37
then what do you guys learn after the
35:38
fact you know how’d that go and kind of
35:40
you know why down the story before we
35:42
hop into questions yeah so we started
35:46
our takeover was fairly easy there was
35:48
one full time property manager one full
35:50
time making sky on site and we kept both
35:52
of them so it was pretty smooth until we
35:54
realized that the property manager was
35:56
really you know not what we were looking
35:57
for
35:58
so our maintenance guy over there is
36:00
awesome and I would love to find more
36:02
properties to have them work on because
36:04
he is amazing and we have good people
36:05
you want to keep him and keep him happy
36:07
but our property manager was doing a
36:09
terrible job and she was a recent hire
36:12
of the prior company as well so again
36:14
somebody that they just kind of filled
36:15
the seat in really care who they hired
36:16
so we had to get a new property manager
36:19
about three to four months in
36:21
but since then our occupancy went from
36:23
mid-80s to 100% in about 60 days so a
36:26
proper manager makes all the difference
36:27
but that was really the only hiccup upon
36:29
takeover but it did affect our first
36:31
couple months of performance yeah
36:33
and I mean you had to me that that
36:35
property manager will make or break your
36:37
deal right you let him slide for you
36:40
know really a little slide for one month
36:43
you end up paying for for the next six
36:44
months right so I mean kind what about
36:47
you anything you kind of add to that no
36:49
hiccups per se but you know we’re the
36:51
type of group that likes to hit the
36:53
ground running so on day one we’re
36:55
starting renovation we’re not gonna wait
36:57
a month to see how the property’s gonna
36:58
react really hit the ground and go and
37:00
so I think the important part is to be
37:02
patient when you’re raising rents it
37:05
does depend on the property but what we
37:07
like to do is hit deferred maintenance
37:08
and curb appeal all exterior items as
37:11
soon as possible because it gives a
37:13
current resident base a sense that you
37:16
ownership cares about the property and
37:18
is making it more inviting more
37:19
appealing and hopefully a safer place
37:21
work orders are getting to be done
37:24
quicker and so you may retain a lot more
37:27
the resident base than you anticipated
37:29
now if you’re doing a turnover and you
37:31
want to change the resident base it
37:32
could be totally different but in our
37:34
first property we were okay with the
37:36
resident base but we had 16 month two
37:39
months of a forty two unit property so
37:41
that’s a little bit scary and we
37:43
anticipated 14 to 16 of them leaving but
37:46
when we went in fixed the deferred
37:47
maintenance first hit the property with
37:50
you know we changed out they were
37:51
sliding glass doors we changed out with
37:53
hardwood doors redid all the the
37:57
railings painted the property and all of
38:00
a sudden the property looks fantastic
38:02
fourteen and a 16-month a month’s ended
38:04
up staying and that completely changed
38:07
the performance of the property from
38:08
being you know on target to well above
38:11
target pretty immediately so we’re big
38:13
fans of any different maintenance and
38:15
exterior stuff first so that you can
38:17
retain more of your resident base Brian
38:26
yeah it was that was the question that
38:28
both Stanford I think oh sorry all right
38:32
well maybe my last question before I hop
38:33
on okay would you guys happy with it
38:37
would you guys change sure what would
38:38
you change maybe I’m not to ask you
38:39
would you I’m gonna make you guys answer
38:41
it what would you change if you do one
38:42
thing differently Kyle and you can’t say
38:44
lending because your your questions
38:46
obviously an obvious answer can I say a
38:49
piece of the lending because I think
38:51
it’s a big deal yeah go for it
38:53
yeah the prepayment penalty we want
38:55
would yield maintenance and this is a
38:57
huge problem right now and a lot of
38:59
people would kill maintenance because
39:01
they wanted a lower rate it’s 30 to 40
39:03
basis points cheaper to do yield
39:04
maintenance then step down right and
39:07
step down is where you can basically
39:08
plan out what your people in penalties
39:10
can be 5 percent 5 percent 4 percent 4
39:13
percent 3 percent depending on the year
39:15
you’re selling yield maintenance is a
39:17
very confusing calculation but it has to
39:20
do with where the ten year Treasury is
39:21
and the lower the rates go the higher
39:23
your prepayment penalty goes up the low
39:26
and then the opposite happens but
39:28
basically earlier you want to sell it
39:30
the more your prepayment penalty is
39:32
going to be so on the property on this
39:34
42 unit we’re actually we listed it pre
39:37
Tobit about a week before and as the
39:40
rates have dropped for the last three
39:41
months our yield maintance prepayment
39:43
penalty has tripled okay so it one
39:45
hundred fifty thousand it’s it’s over
39:47
four hundred thousand and so we’re stuck
39:49
in a situation where property is doing
39:51
great you don’t have to sell but if we
39:53
didn’t have this yield maintenance we’d
39:54
be able to sell it pretty quickly at a
39:56
price that we didn’t even anticipate we
39:58
would get six years from now but that
40:00
$450,000 fidelity is absolutely killing
40:02
the deal so it’s got to be an assumption
40:04
now which limits the buyer pool and also
40:08
means that when you’re doing an
40:10
assumption that the new buyer he’s
40:13
probably gonna have to put down closer
40:14
to 40 to 50 percent so it’s very
40:17
difficult to get that to work and so
40:20
we’re in a position now again we don’t
40:21
have to sell but we’d like to sell where
40:24
that yield maintenance prepayment
40:26
penalty is really gonna end up hurting
40:27
us ya know and I think that one’s
40:29
critical thinking well no one really
40:30
thinks about it on the first deal right
40:33
and you know what to look for us it was
40:34
bridge so you know but is what Kyle’s
40:38
talking about is for any agency
40:40
you have to basically go in do any kind
40:43
of one of the couple of options right
40:45
there’s Ephesians there’s prepaying
40:46
there step down and essentially it’s to
40:48
lend they’re guaranteeing that they’re
40:50
gonna make a certain amount of interest
40:51
for the life of the loan Belinda doesn’t
40:53
care if you sell it in a year you still
40:54
have to pay that interest right and so
40:56
it’s being mindful that even though Kyle
40:59
I’m guessing you went in with probably a
41:00
five six year play thinking that that
41:02
was kind of your horizon but obviously
41:04
you went in and you know you can make it
41:06
you can make it even more quickly
41:08
well the lender doesn’t care you
41:10
something pay up that at that prepay and
41:11
so be mindful of day cuz a lot of times
41:13
it’s really not more much more cost wise
41:16
or much more of a horse loan to request
41:18
to step down and request a different
41:21
kind of structure but it is something
41:23
that will cost you hundreds of thousands
41:25
of dollars later right easily so I mean
41:28
and we had a deal where we just paint it
41:29
maybe still sold the deal we paid that a
41:32
huge penalty cuz you know it’s still a
41:34
fantastic return but that would have
41:36
been nice to keep right so um definitely
41:39
an important one and Brian Brian how
41:42
about yourself yeah I try to do a little
41:44
more homework on if you’re taking over
41:46
property I’m gonna keep anything
41:47
existing staff try to do a little bit
41:49
more diligence on staff interviews and
41:52
you know not rely on the current owners
41:55
words much I guess and the other thing
41:58
you know we did somebody mentioned lease
42:00
audits in the comments here we did do a
42:02
full lease audit and if they come up to
42:04
our attention that you know 40% of the
42:06
tenants had been putting or signed
42:08
leases within the prior eight to nine
42:09
months the owner story was they had
42:12
bought it as distressed property about a
42:14
year and a half before and that was just
42:16
when they were putting tenants on leases
42:17
that they were existing tenants month
42:19
month leases that they were just signing
42:20
them at that time so you know the lease
42:24
on it’s very important if you see a
42:25
bunch of tenants that moved in in the
42:27
prior six months that’s a red flag that
42:29
they’re just you know putting bodies in
42:31
beds and just trying to fill it up for
42:33
Atkins alright well then I guess with
42:39
that said let’s go ahead I’m gonna move
42:40
to questions I’m gonna empower maybe you
42:43
can help me kind of go through these as
42:44
well maybe you want to drive this point
42:45
yeah sure
42:47
and further questions we got a bunch of
42:49
questions so if you’ve got any more
42:50
questions feel free to put them into the
42:52
chat box but well
42:54
if you guys Kyle and Brian maybe just
42:56
when you attack these answers just try
42:59
to answer them kind of quick cuz our us
43:00
we’re gonna have a hard time getting
43:01
through a bunch of foam okay
43:03
and there’s my drama so yeah let’s start
43:05
with Ron Meyer see it’s just asking you
43:08
know he’s really asking about the
43:09
today’s environment so given today’s
43:10
environment how are things change for
43:13
you acquisition wise between you guys is
43:16
it something where you’re you changed
43:18
your strategy from buying whole to going
43:20
slow to still doing value-adds
43:22
and if you kind of had a crystal ball
43:24
what do you think of in the next six
43:26
months how are you two going okay you
43:31
know we’re still buyers right now but
43:33
we’ve definitely changed our
43:34
underwriting you know we’re underwriting
43:35
to 0% rank growth and you’re one 1% year
43:38
to and then back to normal in our market
43:41
in year three four and five
43:43
but that’s constantly changing from week
43:45
to week depending on the information
43:46
that we’re being given so it is very
43:49
market specific you know the
43:51
fundamentals of our market are
43:52
completely different than the
43:53
fundamentals of a different market so
43:54
you’ve got to really understand the
43:56
market that you’re in but we are still
43:58
doing value add but we’re just a lot
43:59
more conservative on the right growth
44:01
and the projections for year one and two
44:03
because we don’t know what’s gonna
44:04
happen but the reason why we’re still
44:06
buyers is because we’re longer-term
44:07
holders right five to seven years and I
44:09
am very bullish on the multifamily
44:10
market interest rates are in an all-time
44:13
low
44:13
so everyone’s looking for this discount
44:15
on Co bid you know on a cap rate
44:17
purchase but you’re still getting a huge
44:19
discount on the interest rate side and
44:21
likely getting more io with it as well
44:23
so there’s advantages there that you can
44:25
take by buying now if you’re a long term
44:27
older and you’re conserving your in your
44:30
underwriting year’s plumbing – so nice
44:34
how about you Brian yeah the same thing
44:37
with the underwriting will be more
44:38
conservative on the rent growth just
44:39
like Kyle said one thing that I’ve
44:41
noticed has changed is that terms are a
44:44
little better for buyers now I wouldn’t
44:45
say it’s a buyers market but three four
44:47
months ago you were not getting a
44:48
finance contingency under any
44:50
circumstance in most markets and now you
44:52
can get a little longer to do diligence
44:53
and finance contingencies I feel like
44:56
it’s a little bit less competitive a lot
44:57
of buyers are sitting on the sidelines
44:59
and I’m looking more towards you know
45:02
yield plays right now not trying to
45:05
focus on too heavy of a value-add
45:07
because it’s
45:08
you don’t know what the next 18 months
45:09
remain to be but you can lock in long
45:11
term fix that at three and a half
45:13
percent in a lot of markets right now so
45:14
if it’s a you know solid property good
45:17
area I’ll take the value I’d risk off
45:19
the table or a little bit lower of a
45:21
stabilized cap rate just to follow up on
45:24
that with you guys both mentioned rent
45:26
growth that you’ve decreasing your your
45:29
the amount of rent growth you’re seeing
45:31
are you keeping your expenses the same
45:34
when they were pre COBIT are you
45:35
decreasing the expenses as well at the
45:37
same rate we really underwrite to $1.00
45:40
per unit so on a percentage basis
45:43
technically they’re going up because our
45:45
rents are not going up but on a per unit
45:49
basis you know they’re really staying
45:51
flat actually maybe a little bit of an
45:54
increase in certain areas maybe like
45:57
payroll or insurance depending so you
46:01
know it’s a case-by-case basis but
46:03
they’re definitely not decreasing on a
46:05
percentage basis good how about you
46:07
Brian same answer we underwrite for the
46:10
most part on a percentage basis
46:11
increasing our reserves are nearly
46:14
reserves
46:15
that’s about them really increasing and
46:17
just making sure that we have enough for
46:19
repairs and maintenance and turnover as
46:21
well okay awesome
46:24
so David Solomon C asked what are some
46:27
what are the best sources online for
46:30
finding deals in pursuing deals so you
46:32
guys could give a few places that your
46:35
sourcing deals online I don’t really use
46:38
online too much I mean I’m I’m on all
46:42
the email list but typically in my
46:45
market everything goes through a broker
46:47
like Farah said right yeah you can find
46:49
off market stuff if you’re as good as
46:51
Bethany and made on their mailers and
46:53
stuff how they got their last deal right
46:55
Bethany you got yours direct rate to
46:56
seller yeah so but I’m mainly going
47:00
through brokers I call brokers I have a
47:02
list of 56 brokers in my market and I
47:05
call them every other week and I pass
47:07
for them and bother them and build
47:08
relationships and I’ve been doing this
47:10
for a year and a half and like Farrah
47:12
said I get to know them get to know if
47:14
they have kids get to know they like
47:16
golf get to know whatever and actually
47:19
during kovin my business partner and I
47:20
bought
47:21
there are gift cards for you know the
47:23
top five brokers in each market and it’s
47:25
just about building relationships
47:26
knowing that they’re real people too and
47:29
you know you’ve got a take time to build
47:31
and establish those relationships so I
47:33
really don’t use online but if you want
47:35
to look online there’s prexy and loopnet
47:37
and I’m sure Brian you canyou can list
47:39
off in me a bunch as well yeah if you
47:42
want to find like what properties are on
47:43
the market right now you know looking at
47:45
crécy coasts are a few habits if you’re
47:48
looking to do research and find owners
47:49
yourself prospect now and Rihanna me are
47:52
two good ones where you can you know
47:55
they’re paid sites but they’re not too
47:56
expensive but you can go in there you
47:58
know pull the list of property owners
47:59
for whatever you know by zip code or
48:01
region whatever area he’s looking at and
48:03
then let’s do the research to break the
48:05
LLC’s lick up the phone numbers but
48:07
that’s how you can start building a
48:08
proper database do you like do you like
48:10
what was that one you said ariana me and
48:13
what was the other one prospect now
48:14
prospect now and Rihanna me yep
48:16
you like prospect now better than
48:18
co-star if someone has access to co-star
48:21
you know what co-star I kind of have a
48:24
love-hate relationship with them you
48:25
know they’re so big and they have a lot
48:27
of data what a lot of the data they have
48:29
is just inaccurate at least in in the
48:32
Midwest it’s just not accurate and
48:34
sometimes address meets prospect now I
48:37
do like quite a bit and they’ve actually
48:39
in but last year or so they released
48:41
something called likely seller so they
48:45
ranked sellers essentially based on if
48:48
they’re out of state how long they’ve
48:49
had their loan when their loan comes up
48:51
so in your target market you can get a
48:53
little list of likely sellers and you
48:56
know start there so that’s a pretty cool
48:59
feature and this prospect now do
49:01
multifamily specifically or multifamily
49:03
and single-family they do both how
49:06
they’re categorized depends on the
49:08
region a lot of times it depends on how
49:10
that particular county categorizes
49:12
things online and so it’s different in
49:15
Illinois than it might be in Washington
49:16
sure I’d say real page is another one to
49:19
look up they’re gonna start to compete
49:21
with co-star here pretty quickly if not
49:22
surpass them that’s a bunch of resources
49:27
you got so I know that a couple of you
49:29
have asked about resources and things
49:31
like that of doing analysis
49:35
um question from Chevelle Chevelle
49:37
Freeman is uh is there a percentage that
49:39
you plan for to cover the initial
49:41
pre-purchase costs so is there a certain
49:44
percentage that you guys use or general
49:46
rule of thumb are we talking about
49:48
closing costs and all that kind of stuff
49:49
yeah I think it’s talking about closing
49:52
costs the the all the stuff that goes
49:53
into besides the you know the down
49:56
payment yeah it really depends on your
49:58
structure you know JB this indication
50:00
are gonna be a lot different than one
50:01
another syndication is also going to
50:03
depend on the size of the deal our first
50:05
deal was a small 42 unit that’s 1.6
50:08
million so the percentage is much higher
50:10
than on a larger 15 million dollar deal
50:12
so when our first deal I would say it
50:14
was six six and a half percent and that
50:17
includes things like construction fee
50:19
contingency acquisition fee and the like
50:22
on the second deal it was closer to two
50:25
and a half percent because it’s a lot
50:27
larger deal so it really depends but
50:29
that is a that’s a big deal
50:31
understanding the fees that you’re gonna
50:33
be taking on especially with our first
50:36
deal was a small balanced loan the
50:38
attorneys were much cheaper for some one
50:40
reason or another on the lender side and
50:42
you do have to pay for the lender
50:43
attorneys the lender attorneys on the
50:45
larger deal a conventional Fannie Mae
50:47
deal were a quadruple the price and so
50:51
if you don’t understand that you know
50:54
there could be some expenses that you’re
50:56
not tied to that to on the bridge side
50:59
they again not all birds loans are the
51:01
same but usually bridge lending is the
51:03
wild wild west and you know lending me
51:06
the legal fees on that space is just
51:08
total highway robbery but definitely
51:11
something to keep in mind and you know
51:12
the takeaway really is get the fee
51:15
structure upfront and this is again
51:17
we’re having a good mortgage broker that
51:18
knows the different lenders and kind of
51:20
what they you know how bad they try to
51:22
secure you or not trying to screw you
51:23
right he’s important to kind of have
51:26
that in mind yeah I’d say yeah one and a
51:30
half to three percent on the joint
51:31
venture side I haven’t done a full on
51:33
syndication yet so I’ve only done joint
51:35
venture so far and it’s been between one
51:37
and a half and three depending on the
51:38
deal size sure how about other costs
51:40
like you know other costs of inspections
51:43
and things like that if you you guys
51:45
have any certain percent putting in for
51:48
inspections or
51:49
travel costs or any other soft cost that
51:51
would go into it
51:52
yeah I might concluded in those numbers
51:55
that I gave but you know you have the
51:57
cost segregation in there we have our
51:59
property management company do the
52:01
inspection on our end so they charge X
52:03
dollars per unit but it’s all about
52:06
communicating with people and asking
52:07
like fair said if you get the fee
52:08
schedule upfront and then you talk to
52:10
your property management company to know
52:11
what their fees are and then you know
52:13
what your fees are you’re pretty close
52:15
there so this is just about giving those
52:18
up front but those are all built into
52:19
what I mentioned this part supposing
52:21
cost cleaner okay all right good we got
52:25
another question from asam what tips and
52:28
tricks that successfully worked for you
52:29
when you were raising the capital you
52:31
needed in the proper time frame
52:33
what pitfalls did you run into during
52:36
that process what’d you learn from yeah
52:39
for me I expected everyone who committed
52:41
to say yes that was my biggest mistake
52:44
when you’re raising capital I always say
52:47
this you get a peek behind the curtains
52:49
of people’s lives this is Pete real
52:51
people real life happening here and so
52:53
when you have a deal other people have
52:55
other things going on maybe they’re
52:56
traveling for a month maybe they’re
52:58
closing on a home and they need to show
52:59
liquidity maybe they’re having a baby
53:01
so just because they said they committed
53:03
capital or they did invest in your next
53:05
deal does not mean they will really
53:06
invest in your next deal yeah they’re
53:08
looking to invest in a deal in the
53:10
future but it’s all about timing you
53:12
know maybe someone just invested in two
53:15
other deals and other liquidity slower
53:16
so you’ve really got a plan for that
53:18
you’ve got to always be raising that or
53:20
12 months around around the clock we’re
53:23
raising capital consistently and
53:25
understand that if you have a million
53:26
dollars that is in the bank you know
53:30
committed you’re likely probably only
53:32
gonna bring in to half of that and it
53:34
really depends maybe even less if you’re
53:36
just starting out so it’s really
53:37
understanding a little bit further and
53:40
layer deeper of where your investors are
53:43
in their cycle because their cycle is
53:46
different than what your cycle is and
53:48
the market cycle and all that so yeah
53:51
and for me it was a little different
53:52
since does he’s a one primary equity
53:54
partner but if that one’s partner went
53:57
away at some point during the process
53:58
then we were screwed so I was just I
54:01
stayed on in touch with
54:03
at every single point of the transaction
54:05
whether it was getting a quote for an
54:07
inspector or letting him know when the
54:09
appraisal was just you know
54:10
communication overload he was you know
54:14
he was not necessarily present at every
54:16
event but he knew exactly what day in
54:18
time everything was happening and just
54:20
made sure to stay in front of him if the
54:22
business plan changed he knew about it
54:24
right away so just overly communicating
54:27
so I got a couple questions as well for
54:30
myself and since you’re both are
54:32
investing you know a little bit outside
54:34
of your core market as well I wanted to
54:37
find out sort of the good and bad of
54:39
that right you obviously had to make a
54:40
decision that you’re gonna go ahead and
54:42
and go farther then then you may have
54:44
originally thought you were going to go
54:46
and kind of what went into that process
54:48
and what has been I felt good about that
54:51
and and or as there are bad things about
54:54
going outside of what you thought was
54:56
your local market good right um you know
55:00
my initial thought was to look at
55:03
properties and places where I can get to
55:05
and from in a day so you know from
55:07
Chicago I can get to you know various
55:09
parts of Wisconsin Indiana Michigan and
55:13
Ohio back and forth in the day so I was
55:15
really focused on that three to four
55:17
hour drive max you know downside of not
55:20
being able to just run over to look at
55:22
something is if you do have some kind of
55:23
emergency you really have to trust the
55:25
people that you have on site so you have
55:27
to trust the people that you hire and
55:28
that’s you know like Farrah said earlier
55:32
it’s you just have to hire well a
55:34
property manager and good maintance guy
55:35
to make a break a deal for you so the
55:38
downside of that is that you can’t just
55:39
be somewhere in ten minutes if something
55:41
goes wrong but if you have right amount
55:44
of trust and your staff then you can
55:47
really overcome a lot yeah for me our
55:51
first market was Columbus Ohio and the
55:53
reason one of the reasons that we
55:54
decided to go away from that was because
55:57
of how far it was for us three-hour time
55:59
change plus the flight I you know it
56:01
takes a half a day or a day to get there
56:03
and travel and all that stuff and
56:05
especially when you’re looking for deals
56:06
so that’s why we moved Arizona we didn’t
56:08
choose Arizona just because of that it
56:10
has all the other metrics that you want
56:13
in
56:13
market but it’s a strong factor I’m out
56:16
there every other week I’m traveling
56:17
there this week and so if I’m gonna be
56:19
traveling there for five six years
56:21
during this old am I gonna want to go to
56:23
Columbus Ohio twice you know twice a
56:25
month for five years it’s gonna wear on
56:28
me so Arizona is very easy for us to get
56:30
to which is one of the reasons why you
56:32
know we like it we could drive there we
56:34
can fly there so we’re flexible down
56:36
sides is obviously just like Brian said
56:38
you can’t be there all the time you
56:39
gotta trust your property management
56:40
company but for me it’s actually made us
56:42
a better manager of our properties
56:44
because we’ve had to rely on this
56:45
company so it forces us to be a little
56:48
more diligent choosing those managers
56:50
and staying on top of them let’s go to
56:53
Columbus in January anyways right so the
57:01
other question I had was and I think
57:02
that a lot of people can relate to this
57:04
is when you’re buying your first one you
57:06
guys have mentioned like different size
57:07
properties right and so your what was
57:10
the factors that help you decide what
57:13
size to get right because some people
57:14
are looking at do I buy a do I buy an
57:17
eight Plex or do I buy a 20 you know a
57:20
20 unit or do I buy a 40 unit like Kyle
57:22
or do you know do I go to a 100 unit
57:24
like Brian what’s you know how do I
57:25
decide between buying a 8 unit or what
57:29
am I gonna tell a broker I’m looking for
57:30
anything from a duplex to it to a 100
57:32
unit they’re not really gonna take that
57:34
serious right they’re gonna say you know
57:35
so how do you how do you weigh out in
57:37
terms of what your type the deciding to
57:39
buy in term size yeah for me it’s one of
57:42
your goals you gotta understand your
57:44
goals right for me my goal was always to
57:46
be a syndicator and so for me it need to
57:49
be large enough to be a syndication deal
57:51
but also small enough to learn so for me
57:55
if I would have gotten an 8 unit I would
57:57
not have learned what I need to learn
57:58
which is going through the process of a
58:00
syndication on a deal where I’m raising
58:02
capital so if you want to be an investor
58:05
where you’re buying your own properties
58:06
then buying an 8 unit may be okay I
58:09
would also say that it depends on the
58:11
team that you have with you if you have
58:12
a team that you’re joining and they have
58:14
experience in syndication on 150 units
58:17
and that’s the space you want to be and
58:19
eventually which is space that we’re in
58:20
now then you can start out with that
58:22
team because you have the experience
58:24
right there so but it all comes back to
58:26
what your goals are
58:27
don’t take down a four-unit in my
58:29
opinion don’t take down a four-unit if
58:31
you want to be a multi-family syndicator
58:32
and the hot air plus unit space team up
58:34
with people that can get you there
58:35
faster that you can learn that space
58:37
because that space is completely
58:39
different than the four eight units face
58:41
you know you’re dealing with people’s
58:42
money versus dealing with your own or
58:45
doing a JB so yeah we had our initial
58:49
goals I think we were looking at you
58:51
know forty two hundred fifty initially
58:52
to start so I would say you know like
58:55
I’ll say depending on what your goals
58:56
are come up with your target range and
58:58
that’s all it is is a range we were
59:00
looking at stuff a little bit smaller
59:01
and a little bit bigger you know I don’t
59:03
want to just tell a broker no it’s only
59:04
45 units I’m not going to take a look at
59:06
it so I’ll certainly take a look at
59:08
something and you know honestly
59:09
sometimes part of the broker
59:12
relationship is going and looking at
59:13
other properties that you’re not that
59:14
interested in because it helps them out
59:16
they can tell an owner hey we had an
59:18
extra tour and you know it just helps
59:20
pad their numbers so it also helps build
59:22
relationships so you know have your
59:25
range depending on what your goals are
59:26
but be flexible too and you know work
59:29
with brokers and use that as you know
59:31
face time with them they get to know
59:33
them a little better as well I’d say one
59:35
more thing too is that if you are gonna
59:37
do the deal on your own and you’re the
59:39
person raising the main capital be
59:41
honest with yourself
59:42
on how much you can handle and how much
59:44
you can raise you know we raised money
59:45
basically we built our Investor list for
59:48
eighteen months before we closed on our
59:49
first deal so we had well over 150
59:51
people on that list you’re just starting
59:53
out you get a property and you take it
59:55
down by yourself can you really raise a
59:56
million dollars you gotta be honest with
59:58
yourself because there’s other people’s
60:00
money at risk here and raising a million
60:03
dollars is not as easy as you know
60:05
having 20 people on a list and just
60:07
getting it done so just be realistic in
60:09
your expectations as well great I’m
60:13
gonna go ahead and go with the last
60:14
question here and this is from Chevelle
60:16
it’s really talks about how to balance
60:18
this with the you know full-time job
60:20
right so if you are in your full-time
60:22
job or you transition from a full-time
60:25
job how do you do this when you are
60:27
working you know a w-2 job so either of
60:30
you go ahead
60:33
full-time job blessed sub-linear
60:35
Savannah has a multi-family broker so
60:37
I’m in the space every day and every
60:39
property had bought so far has actually
60:41
been with clients as partners so for me
60:44
it’s been pretty awesome because I get
60:46
to know people over the years become
60:47
friends with clients and then ultimately
60:49
become partners and that’s just you know
60:51
a great way to go is I’m kind of lucky
60:53
Matt since I don’t have a w-2 where I’m
60:56
you know working in a completely
60:58
different industry all day I’m in the
61:00
industry that I’m working in the
61:01
investment side as well but I do have to
61:03
balance both and you know such when I’m
61:05
looking at properties in the Chicago
61:07
area
61:07
I have to be careful about you know
61:09
client versus broker don’t want to
61:11
compete with my own clients but yes I’m
61:13
in the real estate space full-time yeah
61:16
again it goes down to being it’s about
61:19
your goals right so for me I wanted to
61:20
be a lead sponsor which takes a lot more
61:22
work than just having a piece of the pie
61:24
and multi-family the great thing about
61:26
multifamily is that you can have a very
61:28
small piece of the pie and still take
61:30
down a fifteen million dollar deal
61:31
whether you want to raise capital asset
61:33
managed by the deal bring in that worth
61:35
bringing up from capital I mean there’s
61:37
so many ways to involve so you can
61:39
certainly do it with a full-time job so
61:41
if you want to be a full-time lead
61:44
sponsor you know I did that for eleven
61:46
months but I wasn’t taking down deals
61:48
yet it was about education and finding
61:50
my market and really establishing
61:51
ourselves but as soon as I knew that we
61:54
were gonna start taking down deals I
61:55
actually left my full-time job because
61:57
again if other people’s capital at risk
61:59
you’re the person running the deal so
62:01
you need to have your focus on that deal
62:03
it doesn’t mean you can’t do it there’s
62:05
certain people out there they can
62:07
certainly do it and are doing it but
62:10
it’s about dedication and what your
62:11
goals are I mean while I have my
62:13
full-time job it was weekends at meetups
62:15
weekends working on the business
62:16
weekdays going to pals meetup that he
62:19
first started after work and we’re there
62:21
till 10 o’clock at night and the next
62:23
day I do the same thing right so are you
62:25
gonna be consistent or you know chase
62:27
your goals are you gonna be realistic
62:29
and really are you are you serious about
62:32
this and if you are then you just gotta
62:34
put in the extra work until you get
62:36
there awesome great answer to you guys
62:39
well hey I think Ferriss we can go ahead
62:41
and transition from our Q&A portion to
62:44
move on to our breakout rooms but you
62:46
the breakout rooms real quick Kyle give
62:49
your contact information one more time
62:52
and feel free to give a shout-out to
62:55
your podcast or anything else you have
62:57
going on or any deals you that you’re
62:59
tackling right now yeah maybe just yeah
63:00
thank you guys for coming out definitely
63:02
appreciate it right so we will do
63:03
breakouts they will close off but yeah
63:05
as Garrison said you guys may be each
63:07
big give shout out of information and
63:10
we’ll move on so just so everybody knows
63:12
what we’re about to do I’m gonna have
63:14
these guys introduce themselves one more
63:15
time and just give her their contact
63:17
information and give kau to give his
63:18
podcast and Brian feel free to give any
63:21
information that he wants to pop out but
63:23
then we’re gonna hop into breakout rooms
63:24
but then after the breakout rooms so if
63:27
you’re watching this on Facebook live
63:28
you will see this thing go blank
63:30
for the most part while we’re in the
63:31
breakout rooms I did just fix the link
63:34
that we posted earlier if you want to
63:37
hop on the zoom call and hop in some
63:39
breakout rooms with us pop go into my
63:41
facebook page look in the links section
63:43
or in the comment section and get the
63:44
link but we will be back after the
63:47
breakout session and we’ll wrap
63:49
everything up so stay tuned if you do
63:52
not hop in a breakout room sorry about
63:54
that
63:55
go for it yeah thanks guys really
63:58
appreciate you having the Sun I put my
63:59
contact info in the property or in the
64:02
chat room rather and one cool thing
64:05
we’re doing is as Garrison said before
64:07
we are running the Chicago multi-family
64:09
master’s group and next Tuesday we have
64:13
a passive investor panel so we have
64:16
three passive investors who have done
64:18
tons of deals and they’re going to talk
64:20
about the pros and cons of passive
64:21
investing so anybody has interests in
64:23
that just go to multiple masters com
64:27
click down Chicago you can find it there
64:28
awesome and Brian just one more time and
64:30
I know that you put it in the chat but
64:32
spit it out one more time because we’re
64:33
on Facebook live we’ll have about a
64:35
thousand views on Facebook live and they
64:37
won’t have access
64:38
okay yeah it’s Brian might be Rin at
64:42
Park AARC equity group com so where my
64:45
website is arc equity group com I
64:53
mentioned earlier but I also put some
64:55
stuff in the chat box but Kay Mitchell
64:57
an apt Capital Group podcast is passive
64:59
income through
65:00
family real-estate and then I didn’t
65:02
talk to you guys about this earlier but
65:03
we are doing a summit in September it’s
65:05
a free summit so we’re not selling
65:07
anything here it’s am summit 2020 calm
65:10
and I feel there’s a huge need right now
65:13
for education in Asset Management
65:16
everyone is talking about how to get
65:18
your first deal how to close your first
65:20
deal no one is talking about how you
65:22
operate the property after you closed on
65:24
that first deal and so that’s what this
65:26
summit is all about it’s going to be
65:27
completely free so check that out a.m.
65:30
summit 2020 comm that’ll be in two weeks
65:33
is when the when the website will be
65:35
live awesome and where’s your
65:37
multifamily masters meetup at Kyle it’s
65:39
in Long Beach California and we also
65:41
host one in Phoenix so I fly out to
65:43
Phoenix ever be able to reach and while
65:44
we’re out there we host a Phoenix Meetup
65:46
as well
65:47
definitely check out cows Kyle’s podcast
65:49
he’s one of the few people that I will
65:51
tune in pretty regularly wealth of
65:53
information he knows this business
65:54
inside and out he is relentless on his
65:57
consistency so uh awesome Kyle awesome
66:01
Brian go for it fares feel free to break
66:03
us up into the breakout rooms my man see
66:05
you guys later
66:07
we’ll be back in 15
66:17
you
66:19
you
66:23
you
69:02
you
69:06
you
69:08
you
69:10
you
69:22
you
69:26
you
69:30
you
69:33
you
69:36
you
69:41
you
69:47
you
69:50
you
70:12
you
70:16
you
70:24
you
70:33
you
70:35
you
72:49
yeah laughs from the joke that was but
72:54
regime’ works alright well hopefully
72:58
people got value from that I was kind of
73:00
hopping in a few different rooms saying
73:01
how do people look like people
73:02
definitely enjoying it so glad glad are
73:05
doing these breakout rooms so hopefully
73:07
you guys exchange some information again
73:08
remember it’s a team sport in this
73:10
business so get to know people you never
73:13
know where paths lead you know I mean
73:15
one of those OHS in both people were in
73:16
LA had never met each other right again
73:18
that’s kind of what it’s about get out
73:19
there talk to people don’t be shy and
73:21
yeah happy to help facilitate that
73:23
here’s anyone builds build your network
73:27
get into the multifamily meshes comm
73:29
Facebook group network with these people
73:30
continued attraction continue the
73:32
momentum this is a team sport
73:34
go ahead pal you got any last words
73:37
before I wrap it all up or Ferris you
73:39
got anything you want to close out with
73:40
my man go for it garrison closes would
73:46
you like to add any value other than a
73:48
thumbs up let me buddy okay awesome
73:56
we are multifamily masters this was
73:59
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74:02
appreciative that you tuned in join our
74:04
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74:08
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74:10
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74:12
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74:16
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74:18
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74:21
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74:25
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74:26
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74:28
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74:33
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74:36
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74:38
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74:40
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74:43
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74:46
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74:48
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74:49
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74:53
we got seventy plus meetups across the
74:56
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74:58
meet-up let’s rock and roll
74:59
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75:02
thank you for tuning in we’ll see you in
75:04
two weeks multifamily masters dot-com
75:07
see you guys some night everybody hey I
75:10
did
75:12
[Music]