joeljvirtue

[joeljvirtue]

Mike Morawski - Multifamily Investing Insights on Metrics, Market Shifts, and Tax Strategies

Key Takeaways

Institutional investors may require a higher preferred return but typically accept a smaller equity share, offering flexibility in deal structuring.

Policies like rent control can hinder cash flow, especially in areas with rising costs, affecting property valuations and investor returns.

Population and job growth, along with household income, are vital indicators of a market’s potential to sustain rental growth and value appreciation.

Diverse employment sectors mitigate risks during economic downturns, providing stability in occupancy and rental income.

Working with city officials and economic development teams can ease processes like zoning, permitting, and provide incentives, benefiting both the property and local community.

Investors should clarify if they’re prioritizing immediate cash flow or long-term appreciation to align with property performance expectations.

Cost segregation is a powerful tool that enables investors to accelerate depreciation, significantly reducing taxable income and offering potential financial advantages.

Episode Timeline

[0:00 - 3:15] Introduction and background of the guest.

[3:16 - 8:3] Exploring the impact of institutional money in multifamily deals.

[8:31 - 12:45] The role of market conditions in deal success.

[12:46 - 17:20] Key metrics for evaluating multifamily markets, including population and job growth.

[17:21 - 23:00] Understanding the importance of NOI and cap rates in property valuation.

[23:01 - 26:35] The significance of demographics and crime statistics in asset positioning.

[26:36 - 30:10] Social impact through safe housing and community involvement.

[30:11 - 34:50] Tax benefits for real estate investors and wealth-building strategies.

[34:51 - 38:00] Final thoughts, tips for new investors, and closing remarks.

Contact

Website: https://mikemorawski.com/

Email: mike@mikemorawski.com

Check out this Insider Secrets episode!

[joeljvirtue]

Mike Morawski - Business Structures for Success

Key Takeaways

Start by establishing your company identity with a strong business name and an LLC, set up by a business attorney to provide a solid foundation.

Building a website is essential—even a simple one boosts credibility and acts as a digital business card to attract investors.

To develop relationships and begin raising capital, focus on networking to build valuable connections, as strong relationships are key to securing investment funding.

Use a database to nurture leads effectively. Tools like Capitalist Pro help centralize contacts, streamlining communication to guide leads into active investments.

Creating a company thesis/slide deck allows you to showcase your business to investors with clarity and polish, setting you up to make a lasting impression.

Episode Timeline

[00:00 - 01:00] Introduction

[01:00 - 03:30] Establishing Your Business Name

[03:30 - 06:00] Forming Your LLC

[06:00 - 08:30] Importance of having a professional Website

[08:30 - 12:00] Building Relationships for Capital Raising

[12:00 - 13:00] Importance of a Database

[13:00 - 14:30] Implementing Capitalist Pro as a powerful CRM tool

[14:30 - 16:30] Nurturing Leads with the Eight-by-Eight Program

[16:30 - 18:00] Mindset and Approach to Competition

[18:00 - 19:00] Introducing Mike’s New Book: Multifamily Investment Secrets

[19:00 - 20:00] Closing Remarks

Contact

Website: https://mikemorawski.com/

Email: mike@mikemorawski.com

Check out this Insider Secrets episode!

[joeljvirtue]

Mike Morawski - Mastering Multifamily Investing

Key Takeaways

Assembling a knowledgeable and trustworthy team is essential for navigating the complexities of real estate syndication and investment.

Evaluating risks associated with multifamily properties, such as market fluctuations and property management issues, is vital for protecting investments.

Understanding the capital stack is crucial, as it explains how different levels of financing work together in a multifamily deal.

Establishing a property-level LLC adds a layer of protection by separating the investor from the property.

Regular updates and transparent communication with investors build trust and foster long-term relationships.

Profits in real estate come from rental income, property appreciation, and tax benefits from depreciation.

Episode Timeline

[0:00 - 2:30] Introduction to Multifamily Investing and Why It’s a Predictable Asset Class

[2:30 – 5:45] The Importance of Building a Team for Success in Real Estate Syndication

[5:45 - 9:15] Understanding the Capital Stack and Leveraging OPM (Other People’s Money)

[9:15 - 12:40] Identifying and Mitigating Risks in Multifamily Investments.

[12:40 – 16:20] Legal Structures: LLCs, SEC Compliance, and Protecting Investors

[16:20 – 19:50] How Sponsors Earn Fees and Ensure Profits for Investors

[19:50 – 23:10] Networking and Building Relationships in the Real Estate Industry

[23:10 – 26:45] Continuous Learning and the Long-Term Wealth Creation Journey in Real Estate

Contact

Website: https://mikemorawski.com/

Email: mike@mikemorawski.com

Check out this Insider Secrets episode!

[joeljvirtue]

Mike Morawski - Multifamily Underwriting 101

Key Takeaways

Multifamily investing requires a specialized vocabulary to navigate the industry effectively.

A rent roll is a critical document for understanding a property's income potential. Key items include tenant information, unit numbers, market rate rent, collected rent, lease terms, and unit mix.

Understanding operating expenses is crucial for profitability. Key categories include payroll, utilities, repairs and maintenance, insurance, taxes, and property management fees.

Understanding financial metrics like NOI, DSCR, and investor returns (ROI, IRR, cash-on-cash preferred returns) is essential for evaluating a property's performance.

Key terms like general partner (GP), limited partner (LP), share classes, waterfall returns, and sponsor fees are crucial for understanding deal structuring.

Thorough due diligence and underwriting are essential for evaluating a property's potential and risks.

Episode Timeline

[00:00:00] Mike introduces underwriting as a foundational tool for multifamily investing decisions.

[00:04:00] Analyzing income and expenses is crucial for assessing profitability and NOI.

[00:08:00] Capital expenditures significantly impact property value and investor returns.

[00:12:00] Evaluating rent growth and market conditions helps predict future income.

[00:16:00] LTV and LTC ratios determine debt capacity and equity safety.

[00:21:00] Interest rates, amortization, and DSCR are vital for securing financing.

[00:23:00] The GP team’s structure and roles ensure effective collaboration and management.

[00:28:00] Various sponsor fees compensate the GP team for their contributions.

Contact

Website: https://mikemorawski.com/

Email: mike@mikemorawski.com

Check out this Insider Secrets episode!

[joeljvirtue]

Mike Morawski - The Top 3 Fundamentals for Multifamily Investing Success

Key Takeaways

Combine short-term cash flow with long-term generational wealth using tools like IRAs and 1031 exchanges.

Accurate underwriting with reliable data, like CoStar, builds investor confidence.

Regular networking and relationship-building are essential for expanding your investor base.

Use e-books and checklists as lead magnets to attract and nurture potential investors.

A well-maintained contact database is vital for long-term success and investor engagement.

Writing books and speaking at events boost credibility and attract investors.

Episode Timeline

[00:01:00] Mike's Solo Podcast Initiative.

[00:02:00] The three essential fundamentals for success in multifamily investing.

[00:08:00] Understanding underwriting processes and financial metrics.

[00:13:00] Introducing CoStar as a sponsor, describing its value in market data.

[00:15:00] Strategies for raising capital include effective networking.

[00:16:00] Mike compares raising capital to fishing and farming.

[00:18:00] The importance of nurturing leads through email marketing

[00:19:00] Database management and staying in touch with clients & investors.

[00:22:00] Closing remarks about balancing all three strategies

Contact

Website: https://mikemorawski.com/

Email: mike@mikemorawski.com

Check out this Insider Secrets episode!

[joeljvirtue]

Travis Watts - Navigating Multifamily Market Cycles

Key Takeaways

Under promise, over deliver, do a little more than people expect of you.

Now is the time to position yourself in front of the next bull run.

Small incremental efforts, like making one more call or doing one more rep, can lead to significant long-term success.

The current market presents unique opportunities due to increased cap rates and decreased property valuations.

Travis's journey from single-family investments to multifamily syndications highlights the benefits of scaling through syndications.

Episode Timeline

[00:01] – Mike announces the upcoming Multifamily Summit

[00:03] – Introduction of Travis Watts from Ashcroft Capital

[00:06] – Travis’s investment journey from single-family homes to multifamily syndications   

[00:11] – Discussion on the current real estate market cycle

[00:17] – Potential for wealth redistribution through real estate investing

[00:20] – Travis explains the varying conditions in different markets and the importance of staying informed with data

[00:25] – Mike emphasizes the importance of efficiency in operations

[00:33] – Closing remarks and the importance of diversification in real estate investing

Contact

Website: https://speakwithtravis.com/

Check out this Insider Secrets episode!

[joeljvirtue]

Todd Heitner - Optimizing Capital Raising: Mindset, Automation, and Communication

Key Takeaways

Mindset Matters: How you think about capital raising can significantly impact your success. Focusing on the positive aspects and opportunities can make the process easier and more fruitful.

Importance of Follow-Up: A key reason for losing potential investors is the lack of follow-up. Having a mapped-out process ensures that you stay in touch and guide potential investors through their journey.

Automation in Processes: Automating your follow-up processes, including emails and text messages, can help manage leads efficiently and ensure that no potential investor falls through the cracks.

Regular Content is Crucial: Regular contact with potential investors through newsletters, emails, and other content helps maintain top-of-mind awareness.

Diverse Communication Channels: Different people prefer different methods of communication. Utilizing a variety of channels, such as emails, texts, social media, and face-to-face meetings, can help build stronger relationships.

Specialized Tools and Resources: Using specialized tools and services like Apartment Investors Pro can streamline your process of building websites and managing investor relationships, ultimately aiding in raising more capital.

Episode Timeline

[00:01:00] - Introduction by Mike Morawski: The importance of mindset in raising capital

[00:02:00] - Introduction of guest Todd Heitner and discussion on weather

[00:03:00] - Todd Heitner shares his background and business.

[00:05:00] - Todd talks about his transition from cattle ranching to web design.

[00:07:00] - Discussion on the functionality and benefits of specialized websites for real estate investors

[00:09:00] - How Todd’s services include hosting and support.

[00:11:00] - Importance of automated and manual follow-up processes in investor relations/

[00:13:00] - Common mistakes in capital raising and the importance of having a mapped-out process.

[00:15:00] - Mike and Todd discuss the importance of follow-up and process in raising capital.

[00:18:00] - Effective communication methods for capital raising.

[00:19:00] - Discuss Todd's role in helping build processes rather than raising capital directly.

[00:20:00] - How to get started with Apartment Investors Pro and the best ways to drive website traffic.

[00:22:00] - Bonus questions: Todd’s favorite book and tourist attraction.

[00:24:00] - Conclusion and final thoughts by Mike Morawski.

Contact

Website: apartmentinvestorpro.com

Summary

In this episode, Mike Morawski talks with Todd Heitner from Apartment Investors Pro about the importance of mindset in raising capital, the role of automation in follow-up processes, and effective communication strategies for investor relations. Todd emphasizes the significance of having a mapped-out process to ensure no potential investor is left behind and shares insights on how to build a robust system for capital raising. They also discuss the importance of regular content and diverse communication channels in maintaining investor relationships.

Check out this Insider Secrets episode!

[joeljvirtue]

Gib Irons - Capital Raising and Trial Law

Key Takeaways

Success isn't about being the smartest or most talented in the room; it's about the relentless determination to overcome any obstacle in your path.

Remember, it's never too late to pivot towards your dreams and find success in uncharted territories.

In the journey to success, never underestimate the power of forging connections with potential investors. Utilize social media, lead magnets, and referrals to connect and nurture those relationships into invaluable assets.

In the realm of success, transparency reigns supreme. Embrace honesty in your dealings, for investors value openness and the courage to confront challenges head-on.

Harness the power of social media, especially platforms like LinkedIn. Share your journey authentically, for in the depths of your narrative lie the keys to attracting the right investors.

Prioritize tasks wisely, seizing the dawn to conquer the day. In this rhythm lies the secret to sustained productivity.

Timeline

[01:01] Intro to episode guest

[03:41] One word that describes Gib personally and professionally.

[05:17] Gib talks about his background and how he got into the world of capital raising.

[14:30] How about a couple of systems that you have in place that you utilize daily, weekly to help you raise capital?

[20:45] Mike shares how he gained a massive following on LinkedIn.

[24:25] Do you use any lead magnets to attract people to your portal or to lead capture?

[25:58] Do you raise capital for other people's deals and how do you pick a sponsor to work with?

Contact

Website: ironsequity.com

Check out this Insider Secrets episode!

[joeljvirtue]

Gino Barbaro - Navigating Market Cycles and Creative Financing

Key Takeaways

Life comes down to becoming and being persistent.

Focus gave me the clarity to continue to scale the portfolio.

You really need to focus on what you as an investor wants, ultimately what your goals are.

You can always buy real estate. You can always buy it in any part of the market cycle. You can't always sell real estate.

Market cycles have changed dramatically. The decade of from 2010 to 2020, there was no recession.

Understand where your market is and what part of the cycle and recession is trying to buy as much as you can.

Timeline

[01:09] Intro to episode guest

[02:56] One word that describes Gino personally and professionally.

[05:11] Gino talks about his background.

[11:21] What are your top three market choices for the coming year?

[16:47] Where do you think we are in the current market cycle?

[28:08] Gino shares three tips for closing a real estate deal in today's world.

Contact

Email: jakeandgino.com

Check out this Insider Secrets episode!

[joeljvirtue]

Joel Friedland - Industrial Real Estate Opportunities

Key Takeaways

Industrial is the backbone of our country, really of the world. Everything is made in an industrial building.

Companies are coming back. It's called onshoring or reshoring where what they used to do overseas; they now need to do locally.

Real estate is a leveraged business for the most part.

You've got to have your back office. In my case, I've got two guys in my back accounting office that have been with me for 20 years.

Timeline

[02:24] Intro to episode guest

[03:41] One word that describes Joel personally and professionally.

[06:220] Provide a brief overview of your background, detailing your journey over the years, from your initial steps to your current role at Brit Properties.

[15:50] Do you just own your buildings and take care of all the maintenance and issues or are your tenants triple net tenants?

[20:04] So we have said that real estate's a leveraged business. Isn't your IRR or your return to your investors higher with debt on the property than it is when you're all cash?

[30:35] Let's discuss the real estate market briefly. Given that 2023 hasn't been an ideal year for real estate purchases, what has been your experience, and what are your insights on where the markets are headed in the next 12 to 24 months?

Contact

Email: joel@britproperties.com

Check out this Insider Secrets episode!

[joeljvirtue]

Mike Zlotnik - Diversifying Investments for Success

Key Takeaways

Real estate investment is not one size fits all; it's essential to find a model that aligns with your values and business approach.

Operating virtually in real estate is not only feasible but can be advantageous, leveraging technology and avoiding physical constraints.

Mezzanine debt provides equity-like returns with a safer position, offering a bridge for deals facing challenges like rising interest rates.

Prudent preparation involves considering multiple scenarios, both optimistic and pessimistic, to navigate uncertainties in the market.

Lesson number one, diversify. Lesson number two, diversify in time.

Diversify among many dimensions of diversification. Where you invest, location, who do you invest with, what kind of strategy.

Timeline

[03:26] Intro to episode guest

[05:16] One word that describes Mike personally and professionally.

[07:10] Let's talk a little bit about your background, and what you've done and how you got into the investment field and what that looks like for you today?

[13:05] Do you really like sponsors that are more vertically integrated or not?

[18:00] How's your team set up? How's your structure? How does your group operate?

[22:21] Is your team solely focused on raising capital, and what types of investors do you attract—individuals, family offices, or institutional funds?

[26:48] What's your market outlook for the next 12-24 months amid current uncertainties?

Contact

Email: bigmikefund.com

Check out this Insider Secrets episode!

[joeljvirtue]

Emma Powell - Real Estate Balancing Strategies

Key Takeaways

Real estate success is not just about profits; it's about achieving time and financial freedom to lead a more purposeful and playful life.

You have to be able to balance success with your personal life or it's just pointless.

It's hard in the moment when there's uncertainty, but once the problem resolves itself, it'll either work out or it won't.

Our ability to affect the future of the deal is enhanced with us being able to be in there and protect the capital that we've put in there.

I'm a human. I'm going to make mistakes, but I can actually go back and change history to set us up in a better place moving forward.

Vetting involves SEC checks, criminal background checks, Zoom meetings, and local members physically inspecting properties; transparency is key for trust.

Timeline

[01:28] Intro to episode guest

[02:52] One word that describes Emma personally and professionally.

[04:07] Why don’t you let us all know about Emma, your background and how you got into multifamily?

[07:29] Emma talks about her company High Rise Capital and what they do.

[10:47] What specific breakthrough or turning point occurred in your coaching relationship that significantly impacted your perspective and performance?

[17:38] Do you have a particular market you like or a particular asset class?

[23:15] As a potential passive investor, what information do you seek and how do you vet operators before investing in your fund?

Contact 

Email: highrise.group/contact

Check out this Insider Secrets episode!

[joeljvirtue]

Duane Winkel - Relentless Multifamily Business Insights

Key Takeaways

Investors can discern sincerity, and authenticity is a key factor for long-term partnerships.

When rates rise, it can be a good time to buy, and when they fall, it's favorable for selling as property values increase.

Renovating properties with high vacancy rates, despite potential bank reluctance, offers a chance to improve and raise market rents.

I love the journey more than I love the actual outcome of it. it's just that relentless passion.

The relentless pursuit should be fueled by passion, not just for the outcomes but for the entire process, ensuring sustained motivation and satisfaction.

Timeline

[01:40] Intro to episode guest

[02:56] One word that describes Duane personally and professionally.

[05:50] Talk about your background a little bit and how’d you get into this?

[11:26] Duane talks about the business side of multifamily.

[15:02] So what does it cost per unit to put a water conservation package in typically?

[17:10] I know you are working on a deal right now, why don’t we talk about that a little bit?

[21:35] What do you say to the new investor and how do you get them in your wheelhouse?

Contact 

Email: winkelcapital.com

Check out this Insider Secrets episode!

[joeljvirtue]

Brady Slack and Michael Scicluna - Mastering Tax Strategies

Key Takeaways

Confidence is not just about being assertive; it's about the willingness to learn and be coached.

Life is a journey with its ups and downs; winning the small battles leads to winning the war.

Consistency in facing ups and downs allows for success through the big challenges.

The language of business is accounting; understanding that language enhances your chances of success.

Real estate investing has the potential to never be taxed if leveraged with write-offs, expenses, and depreciation.

Don't let the tax tail wag the dog; sometimes, there are valid reasons to exit a property despite tax implications.

Timeline

[02:05] Intro to episode guest

[02:50] One word that describes Brady personally and professionally.

[06:46] Can you share a brief overview of your background, current role, and your company?

[10:10] What are the tax planning strategies for limited partners, and how do they benefit as investors?

[16:36] Brady, discuss business entity structuring and mapping as Mike mentioned. How should people structure their entities?

[20:54] Discuss cost segregation, its mechanics, and how it relates to leveraging depreciation in your investments.

[31:13] Explain what a K1 is and how it's utilized for new investors or passive investors exploring deals.

Contact 

Email: brady@highcountryfinance.com

Instagram: @TheBradySlack

Check out this Insider Secrets episode!

[joeljvirtue]

Shannon Robnett - Navigating the Real Estate Market

Key Takeaways

Understanding the market's cyclic nature is crucial, with an anticipation of improvement over the next 12-18 months.

Have solutions ready for all aspects of a deal. Learn from 2008: be prepared for market turns.

Specializing in one thing becomes crucial as you recognize the depth of your knowledge.

True expertise arises from hands-on experience, embracing challenges, and actively practicing in your field.

If you're taking on a deal, be the source for the completed project. It's about having the solution to all the problems or having access to them.

Syndication is just a fancy word for a partnership. Limited partners provide capital, and general partners create, vet, underwrite, manage, and decide when to sell.

Despite political divides and global uncertainties, with pent-up demand and a shortage of supply, there's significant money on the sidelines.

The market hasn't cooled off as expected. Interest rates haven't slowed much. Wages are rising, and the economy remains strong.

Timeline

[01:50] Intro to episode guest

[02:41] One word that describes Shannon personally and professionally.

[04:16] Can you tap into something that was a bump in the road for you that you learned a valuable lesson from?

[11:17] What is syndication, particularly for new listeners, in a concise way?

[15:09] What's your outlook on the market in the next 12 to 18 months, considering the recurring cycle?

[23:25] Are you currently involved in multifamily projects, or are you focused on light manufacturing and industrial deals?

[26:07] Are you building multifamily or single-family properties?

Contact 

Website: shannonrobnett.com

Check out this Insider Secrets episode!

[joeljvirtue]

Tim Winders - A Story of Self Realization and Growth

Key Takeaways

Discovering our true nature and purpose is a lifelong journey. There are various characteristics and traits that define us, and these qualities evolve over time.

A transformation in one's faith can lead to a fundamental shift in values and perspective on life.

Instead of treating spirituality as a resource to turn to only in times of trouble, it can be a consistent and integral part of one's business endeavors.

Effective communication and genuine interest in what matters to others can lead to stronger connections and partnerships.

Success should be redefined on an individual basis, rather than trying to emulate others. It's essential to discover one's unique definition of success.

Timeline

[00:40] Intro to Podcast

[02:32] Intro to episode guest

[03:56] One word that describes Tim personally and professionally.

[06:16] Do you think that each of us have some word or quality that other people associate you with?

[18:12] Tim shares his background and how he got to where he is today.

[27:10] Are you in the multifamily business or how’d you get into multifamily business?

Contact 

Website: seekgocreate.com

Socials: Seek Go Create

Check out this Insider Secrets episode!

[joeljvirtue]

Rod Khleif - Fundamental Keys You Need to Get Your Arms Around When Starting a Business

Key Takeaways

New multifamily investors should focus on setting clear goals, making decisions, and taking the first step to get started in the business.

It's crucial to focus on the numbers and find deals that make financial sense.

If you find a good deal in multifamily, you can probably show a 15 percent ultimate return on a deal.

Building relationships and networking with industry professionals can lead to mutually beneficial opportunities.

Multifamily remains a resilient and attractive asset class in the real estate industry.

Strong cash flow is a key factor in surviving economic challenges in real estate.

Timeline

[00:50] Intro to Podcast

[02:04] Intro to episode guest

[02:47] One word that describes Rod personally and professionally.

[04:23] Rod shares his background.

[09:00] How do you inspire and retain community members, encouraging them not to quit?

[13:40] What are the three essential fundamentals for success for new multifamily investors entering the business today?

[23:44] What’s your future plan? What’s your future goal?

[27:02] Where do you see rent growth going?

[30:18] What do you think is the best debt out there to find today?

Contact 

Website: https://linktr.ee/rodkhleif

LinkedIn: https://www.linkedin.com/in/rodkhleif

Check out this Insider Secrets episode!