Where do you want to be in ten or twenty years from total monthly income perspective? Are you interested in passive real estate investments that will allow to live off the money you make on them in the meantime, while also continuing to increase in value? Today’s guest is David Gwilt, an active duty USAF Officer, Realtor, Real Estate Investor, and financial analyst for an apartment investing firm. David and his wife, Tasha, purchase apartments to create passive income and generational wealth, and they’re helping others do the same. Find out about David’s real estate journey, and why he chose to get into multifamily real estate in the first place. He also shares with us what he looks for when choosing to make an investment and some possible red flags that might cause him to pass up on a deal. Tune in for some great advice on beginning with your end financial goal in mind!Key Points From This Episode:David gives us a glimpse into his background and his multifamily real estate journey.Concerns prior to investing in multifamily syndications.Why David and his wife chose multifamily real estate.Adjusting projections as investments progress based on actual returns.David tells us about his first passive multifamily investment and what attracted him to it.Delayed distributions during the pandemic from a passive investor’s perspective.David discusses some red flags and potential reasons to pass on a deal.How David decides on other investment criteria like property class.What retirement looks like for David and his wife.Active versus passive investment in real estate.David shares with us his biggest mistake in real estate investing and what he learned.Tweetables:“In the multifamily space, we can scale a lot quicker, so we can do more passive investments, we can do bigger passive investments” – David Gwilt [0:06:40]“That’s… [what] really got us into this space, is the ability to have an asset that throws off cash that we can live off of and enjoy while the asset is also increasing in value, so it gives us something of a legacy to leave to our family” – David Gwilt [0:09:52]“The operators, for me, are key. A good operator can take an average deal and make it great. A bad operator can take an excellent deal and make it bad” – David Gwilt [0:16:04]Links Mentioned in Today’s Episode:APT Capital GroupAPT Captial Group on FacebookSchedule a call with Kyle MitchellPowell Chee – MultiFamily MastersThe Lifetime CashFlow Through Real Estate Podcast with Rob KhliefWayne PattonWayne Patton’s Asset ProtectionCall Wayne Patton – (877) 727-109

Passive Income through Multifamily Real Estate

Episode #119: Begin with the End in Mind with David Gwilt

With the right approach to your value-add strategy, you can be sure that your dollars are being well spent, you’re up to speed with your competition, and that you’ll lease up faster! Today on the show, Kyle interviews Gary and the two talk shop about best practices for value-add! It’s important to start your value-add process from the very beginning, and Gary tells us that he’s already thinking about it from the time he receives the EOM. Another great tip Gary mentions is to keep touring your comps, even after a deal closes. Constantly assessing metrics like ROI and staying in the know about where you sit in relation to your competitors is vital! Equally important is how to know when to deviate from a value-add plan, and our hosts have a few golden nuggets to share in that regard. Gary also suggests that investors should focus on exterior renovations first, and shares a few of his top-performing cosmetic additions, such as billboards, paint jobs, and amenities. Lastly, we get into some ways that you can know whether your value-add strategy is working, and Gary lists a few very clear indicators, such as if you’re successfully bumping rents! Tune in for some amazing pointers for your next value-add strategy today!Key Points From This Episode:Gary’s entrepreneurial childhood and road into real estate investing with Kyle.The beginning of a value-add strategy starting with the EOM, comps, and pictures.Typical players Gary involves in his value-add strategies.Gauging comps and the current environment, and when to deviate from a value-add plan.Constantly watching comps and other facets of asset management.The three most impactful strategies for getting tenants: signage, paint, and extra amenities.How to assess a value-add strategy and tell it’s working: rent bumps and conversion rates.Being vigilant by tracking data and reassessing return on investment constantly.Gary’s asset management superpower: being a numbers guy.Tweetables:“You're constantly evaluating. You’re dealing with market conditions, and being able to pivot is so important to your business plan.” — @garylipsky [0:04:17]“We push our property management team to provide the best customer experience for our tenants and the best investor experience for our investors. That means we’re constantly staying on top of all the facets of asset management.” — @garylipsky [0:05:00]Links Mentioned in Today’s Episode:Gary LipskyGary Lipsky Email AddressWayne Patton Asset ProtectionPassive Income Through Multifamily Real Estate Facebook GroupKyle Mitchell on FacebookLalita Mitchell on FacebookGarzella Group

Episode #118: Value Add Strategy with Gary Lipsky

Our guest today on the show is the founder and owner of Bakerson, Bruce B. Wuollet! We talk to Bruce about his history in the multifamily game, the founding of his company, and the family legacy that led to the naming of Bakerson. He explains their investment strategies and how these have evolved over the years, moving to larger, longer-term deals and the shifts that go along with this. Bruce tells us about finding a rough in the diamond — a bad property in a great area and how he can work this in his favor. The conversation also covers the issue of rent control and the damages that these measures can make to the market in the long run. Bruce shares some of the tougher lessons he has learned and how these informed his decision to steer completely clear of speculative buying. The philosophy at Bakerson is one of conservative purchases that make sense today! We also cover moving into new markets and what it takes to break into one of these in today's climate before Bruce shares some of the tools and strategies that are central to his work at the company. He is fully committed to staying abreast of the changing world, believing that education and reading, in particular, are the gateways to success. For all of this and then some, join us today!Key Points From This Episode:Bruce's background, the story behind the name 'Bakerson' and the idea of 'togetherments'. The progression of Bruce's business, moving from wholesaling to ownership.Shifts that have occurred in the industry and how Bruce used these to build. Bruce's early forays into multifamily and what his first acquisition looked like! The types of properties that Bruce and Bakerson have typically targeted.Small pivots that Bakerson has made to remain profitable; geographic and unit expansion. The idea of moving into new markets and considering the pros and cons. Looking at the current real estate markets in Tucson and Albuquerque. The mental transition from short turnarounds to a longer-term, buy and hold model. Challenges posed to the real estate business by affordable housing and gaps in the market. The importance of spreadsheets in Bruce's work and crunching the numbers!One of the biggest mistakes Bruce and his team made with regards to land development. Embracing the new generation; Bruce's goal for learning about the changing world. How to get into contact with Bakerson and Bruce directly!  Tweetables:“We always look at whether it is a good deal today, we do not do speculative buying.” — Bruce B. Wuollet [0:08:43]“I like Albuquerque since it is a similar size to Tucson but I think it's got a better infrastructure. It's more positioned for growth, long-term.” — Bruce B. Wuollet [0:11:57]“In this information age that we live in, market shifts are going to be fast and they are going to be sudden.” — Bruce B. Wuollet [0:15:02]Links Mentioned in Today’s Episode:BakersonBruce B. Wuollet on LinkedInBruce B. Wuollet Phone Number — 520 808 9111Bruce B. Wuollet EmailWayne PattonWayne Patton’s Asset ProtectionPassive Income through Multifamily Real Estate Group on FacebookLalita Mitchell on FacebookKyle Mitchell on Facebook

Episode #117: Serving the Underserved with Bruce B. Wuollet

For this edition of Asset Management Fridays, we are joined by the up and coming Spencer Hilligoss from Madison Investing! As a relatively young mind in the multifamily game, Spencer brings enthusiasm and a sense of purpose to his work, believing strongly in communication and authenticity. Our conversation today centers on relations with investors and Spencer shares some great lessons he has learned about giving investors what they need while taking care of assets in the best way for everybody. We discuss frequency of communication, the best things to share and update on, and keeping a difficult conversation on course and timely. Spencer does not shy away from talking about the touchy stuff and states that if done in the right way, investors will be thankful. For this great chat with a fresh talent in the world of multifamily, join us today!  Key Points From This Episode:Spencer's path to real estate and how he landed in multi-family recently. Communicating with investors and Spencer's approach to this task. What to include in investor reports and why Spencer focusses on pictures. The biggest lessons that Spencer has learned thus far! Important factors for investors; timely and adult communication.Spencer's asset management superpowers; authenticity and communication.  Tweetables:“We do a monthly update for the vast majority of our projects.” — @SpenceHilligoss [0:02:34]“I try to really go above and beyond and communicate with both authenticity as well as just keeping it clean and simple on the monthly updates.” — @SpenceHilligoss [0:03:30]Links Mentioned in Today’s Episode:Spencer Hilligoss on TwitterSpencer Hilligoss on LinkedInMadison InvestingPassive Income through Multifamily Real Estate Group on FacebookKyle Mitchell on FacebookLimitless EstatesGarzella Group

Episode #116: Investor Relations with Spencer Hilligoss

After the 2008 crash, a lot of people either lost most or all of their money and one of the biggest reasons was they were held hostage to a 1031 exchange. Even today, the conventional 1031 strategy presents many downsides, a major one being that once you sell, you have a limited timeframe before which you have to rebuy. Enter Brett Swarts, today’s guest and founder of Capital Gains Tax Solutions, a firm that offers a solution to the 1031 called the deferred sales trust. The DST offers an exit strategy that helps business owners escape feeling hostage to capital gains tax as well as venture capital to fund their next business deal. In today’s show, Brett gives listeners the lowdown on how the DST works and the many benefits it offers in comparison to the 1031 exchange. He talks about how it enables a client to sell, and then park their money for as long as they like and also reinvest it in many more asset types than the 1031 exchange allows. We hear from Brett how the DST allows boomers to preserve wealth and pass it down to the next generation, and how it can also help the US get a more liquid net worth. Brett also weighs in on the flexibility and seamless partner separation it provides in the context of syndications. In addition, our conversation covers what the DST can do to stop the dreaded 40% debt tax on taxable estates over 20 million. After hearing what Brett has to say, you’ll wonder why you even considered the 1031 exchange at all, so don’t miss this one!Key Points From This Episode:Introducing Brett who offers the deferred sales trust as a solution to the 1031 exchange.How a DST allows you to delay a rebuy in contrast to the 1031 exchange which doesn’t.Brett’s service: to help facilitate the legal process that clients undergo to do a DST.How people often buy higher-priced properties on a 1031 exchange, getting more debt.Parking your money and reinvesting in any asset through DSTs.Traveling 1031 depreciation schedules and new depreciation schedules provided by a DST.How baby boomers want to preserve wealth and 50% of the USA’s net worth is illiquid. The flexibility of options DSTs give investors in syndications: they can take their money out.Reinvesting into a new syndication deal via a brand new LLC through the DST.Reasons for the DST asking 20% for a reserve account after forming a new LLC.The risk tolerance question and what options a client has with dictating where the 20% goes.Links Mentioned in Today’s Episode:Brett Swarts LinkedInBrett Swarts on Twitter Capital Gains Tax SolutionsCapital Gains Tax Solutions on YouTubeMarcus and MillichapAmerican Banker’s AssociationRussell BrunsonWayne PattonWayne Patton’s Asset ProtectionPassive Income through Multifamily Real Estate group on FacebookLalita Mitchell on FacebookKyle Mitchell on FacebookLimitless Estates

Episode #115: Deferred Sales Trusts with Brett Swarts

The period that follows the closing of the deal is vital in the outcomes of your investment. Here on this edition of Asset Management Fridays to talk of their practices in the 30 to 90 days following a purchase is Mark Hentemann! Mark is a television writer, having worked on high-profile shows such as Family Guy and with David Letterman! Mark explains his particular type of investing and how he got into the business after moving to Hollywood to be a writer. He is a specialist in restoring older buildings with vintage value and appeal. Much of this tendency comes from Mark's creative side, as he loves to visualize what something dilapidated and out of favor could be! Mark speaks about his strategy for the first few months, which entails a lot of observing, waiting, and evaluating. From there, he gives attention to the exterior and what he calls curb appeal, moving to the entranceways and then into the actual apartments. He believes in providing convenience and value for tenants with particular attention given to kitchens, floors, bathrooms, and electrical fixtures. Mark also talks about opening spaces up, aiming for more natural light and how much he enjoys this restoration process, so make sure to join us today to hear it all!Key Points From This Episode:Mark's career as a TV writer and why he decided to invest in real estate. The first 30 to 90 days after the close for Mark; tenant value creation. Adding value after the initial period and Mark's early focus on the exterior. Tools for property management; companies and personal management to coordinate with. The distinct and different roles for property management and how Mark differentiates these.The value that tenants place on kitchens, floors and bathrooms!Looking at the trends away from confined spaces to more open-plan living. Mark's asset management superpower! Seeing the beauty in something old and dumpy!Tweetables:“I pumped my first payments once I got any kind of traction into real estate and immediately got hooked and I’ve been doing it ever since and plan to do it until I’m a hundred.” — Mark Hentemann  [0:01:36]“I, out of sheer necessity, gravitated towards the cheapest properties I could find.” — Mark Hentemann  [0:02:18]“I don’t want to start spending or jumping to a major project until I get to know the property a little bit and see where the flaws are or where the issues are.” — Mark Hentemann [0:03:23]Links Mentioned in Today’s Episode:Mark Hentemann EmailQuantum CapitalWild West Real Estate ShowFamily GuyDavid LettermanThe EmmysAmerican GreetingsAPT Capital GroupPassive Income through Multifamily Real Estate Group on FacebookKyle Mitchell on FacebookLimitless EstatesGarzella Group

Episode #114: Post-Close with Mark Hentemann

There comes a time in real estate investors’ careers when they can no longer manage all the tasks and wear all the hats required to succeed in the industry. This is when virtual assistants (VAs) might be just what they need. Bob Lachance is a nationally recognized speaker, mentor, and trainer who specializes in helping customers build their businesses through automation and outsourcing. He acquired his first flip in 2004 and has done over 700 transactions since, and has also started two successful real state coaching programs and three virtual assistant staffing companies. He is the owner of REVA Global LLC, which focuses on offering trained real estate virtual assistants to real estate professionals. In this episode, Bob tells listeners when they might start thinking about outsourcing some of the tasks, what they can expect to pay for virtual assistants, and advises on acquiring a full-time employee versus hiring a VA for each of their specialized tasks. He also discusses VA’s retention rates, how investors can hang on to good ones, and the importance of having clearly defined responsibilities to maximize the chances of success. Key Points From This Episode:Find out who Bob Lachance is and about his real estate career thus far. Recognizing a need for mentoring and developing two coaching programs in response. Starting his first company after spotting the opportunity to provide virtual assistant services. When it is time for investors to think about automating and outsourcing certain tasks. Guidelines around the cost of VA services and why it need not cost a fortune. Factors to consider when deciding to hire a full-time employee versus a virtual assistant. Thoughts on hiring several VAs for each specific area or hiring one or two to manage it all. Suggestions for getting started on training your VA in their tasks and responsibilities. How Bob and his team go about finding, screening, and interviewing candidates.Hear what automation outsourcing means to Bob and examples of how it works.The average retention rates of VAs and tips for retaining that person on your staff. Why you should know the area you invest in and avoid shiny object syndrome. Tweetables:“If I have to hammer the phones all day long, that would zap my energy. I need to outsource that to somebody else. Guess what? I can work on building my business. I don't have to work at that specific task that will zap all of my energy.” — Bob Lachance [0:07:00]“I would 100% recommend just sticking within the tasks that that particular individual is good at.” — Bob Lachance [0:09:45]“Our clients that have the most success with their virtual assistants are the ones that treat them like they’re in-house.” — Bob Lachance [0:17:48]Links Mentioned in Today’s Episode:Bob Lachance on LinkedInBob Lachance EmailREVA Global Google SheetsRealeflowLimitless EstatesWayne PattonWayne Patton’s Asset ProtectionPassive Income Through Multifamily Real Estate Facebook GroupKyle Mitchell on FacebookLalita Mitchell on Facebook

Episode #113: Automation & Outsourcing with Bob Lachance

If you are in the real estate game currently or are thinking about diving in, chances are you have heard the term 'refinancing'. If you have not, do not fear, we have James Kandasamy from Achieve Investment Group here to explain the idea and share his wisdom on the subject! James joins us for this edition of Asset Management Fridays and we go through all the important points about refinancing and how James has used it to build his business. He has experienced amazing growth and success in a relatively short period of time and we hear all about his impressive business before jumping into what refinancing entails. We unpack the intricacies of the topic, talking about return on capital versus return of capital and which types of loans might suit your needs best. James gives us some insight into fees that are associated with refinancing and he warns us about pre-payment penalties and other hazards. We learn a bunch of lessons from James today about your DSCR, avoiding bridge lenders, and more, so make sure to join us on the show to get it all!Key Points From This Episode:James' business and how large his company has grown in the last five years.The tricky business of refinancing; smart times to do it and the power that it offers.Return on capital versus return of capital and the dilution of the term 'cashflow'.Possible difficulties that arise in the refinancing cycle and during the deal.James' ideas on long-term debt and the use of bridge loans. Avoiding pre-payment penalties and making use of conventional bank loans. The array of rates and fees that go into a refinance and the two ways to approach it.James' asset management superpowers: controlling expenses, using data, and more!Tweetables:“When I buy a deal, I already know that that I can refinance this deal in one or two years.” — James Kandasamy [0:01:53]“The power of commercial real estate, especially on a deep value add deal, is on refinances.” — James Kandasamy [0:02:46]Links Mentioned in Today’s Episode:James Kanasamy EmailMulti-family Investors Facebook GroupJames Kandasamy on LinkedInAchieve Investment GroupAchieve Wealth Through Value Add Real Estate Investing PodcastFannie MaeZillowApartments.comGarzella Group

Episode #112: Refinancing with James Kandasamy

Like many forms of investing, real estate investing is a long-term wealth accumulation strategy with long-term outcomes. When you understand this basic principle, you go through market fluctuations with more ease and remain confident about the returns you will reap in the future. At the same time, however, it is about realizing that investing always carries some risk. Joining us to speak on this topic is Tamar Hermes, a full-time real estate investor, and educator. She is the CEO of Wealth Warrior Woman where she guides women on how to become financially free by teaching them to understand the numbers, options, and strategies in real estate. Tamar discusses what she as a passive investor is doing to mitigate the risks of the current recession, what deal sponsors can do to be proactive, and advises investors about how they should think about the possible postponement of their distributions. For her, this is a unique opportunity for people in the industry to reset their mindsets about investing and part with the fears they often revert to in times of crisis. She also shares her views on how multifamily will do in the next five years and tells listeners more about her coaching program and private consultancy. Key Points From This Episode:Helping other women to understand the opportunities in real estate investing. What motivated Tamar to get into real estate investing and multifamily more recently.The importance of understanding that investing is a long-term endeavor.Tamar’s strategy for mitigating the risks of the current economic crisis.Ideas for what sponsors can do to be proactive in these circumstances. Tamar’s thoughts when she was told that distributions would be postponed for the time being. Why this is an opportunity for investors to adjust their mindsets and approach. The two phases of a sponsor: wealth generation and capital preservation. How Tamar’s anticipates the recession to impact her returns as an investor.Thoughts on how multifamily will perform over the next three to five years. Advice to help people overcome the scarcity mindset and fear of investing in real estate. Learn about Tamar’s coaching program and private consultancy for women. Why it is necessary to fully understand the paperwork when buying a property.Tweetables:“I am a long-term investor and I think that is something that we all need to take to heart right now. Because like any investment, it is really a long-term game if you want to grow wealth.” — @tamarhermesintl [0:14:43]“We like to be comfortable and whenever we step into those uncharted waters, it feels really scary for a lot of people and so I think part of it is taking small steps.” — @tamarhermesintl [0:14:43]Links Mentioned in Today’s Episode:Tamar Hermes on LinkedInTamar Hermes on TwitterWealth Warrior Woman10-Step List to Vet SponsorsAirbnbWayne PattonWayne Patton’s Asset ProtectionPassive Income through Multifamily Real Estate group on FacebookLalita Mitchell on FacebookKyle Mitchell on FacebookLimitless Estates

Episode #111: The Passive Investing Queen with Tamar Hermes

Our guest today is Mauricio Rauld, the CEO and founder of Premier Law Group where he also acts as one of the syndication attorneys who help real estate syndicators to raise the capital to pursue their dreams of financial independence. Mauricio gives listeners some helpful advice around signing purchase and sales agreements, setting up LLCs, and keeping the asset management entity separate from the one owning the relevant share of the building. We also get into the issue of asset managers being legally responsible for the property managers they hire and the importance of including them in your insurance. Mauricio tells listeners what information lawyers require from their clients to set up a private placement memorandum and why the value of the PPM lies in its details, and then he gets into the “gray area” of conditioning the market versus merely adding value and educating. Be sure to join the conversation to also learn more about closing out an entity after a property is sold.   Key Points From This Episode:An overview of the Premier Law Group and Mauricio’s capital raising role.The dos and don’ts of signing a purchase and sale agreements (PSAs) and creating an LLC. Separating the entity that does the asset management from the one owning your share of the building. Recognizing that as the asset manager, you are legally responsible for the property manager. Getting the insurance in place to cover you should the property manager perpetrate.The information your attorney needs to set up a private placement memorandum (PPM). Why you should not simply use a random PPM or one from the internet. The most cringe-worthy posts people make about their deals from a legal point of view. Navigating the fine line between conditioning the market and adding value. Examples of pre-conditioning the market without having an active deal at the time. What you need to do from a legal perspective to close out the entity after the property is sold. A breakdown of the three entities operators need to establish for legal purposes.  Tweetables:“We always create the LLC in the state where the property is located.” — @Mauricio_Rauld  [0:02:26]“You really want to reach out to your attorney right away. As soon as you enter into an LOI or have an LOI accepted, reach out to the attorney and the first thing you’re going to have to bring to your attorney is that business plan.” — @Mauricio_Rauld [0:04:19]“The PPM in and of itself is kind of worthless if you just pull one from the internet or use a template. It’s what you put into the PPM that’s important.” — @Mauricio_Rauld [0:05:03] Links Mentioned in Today’s Episode:Mauricio Rauld on LinkedInMauricio Rauld on YouTube Mauricio Rauld on TwitterPremier Law GroupPassive Income through Multifamily Real Estate Group on FacebookGary Lipsky on TwitterKyle Mitchell on FacebookGarzella Group

Episode #110: The Legal Side of Things with Mauricio Rauld

Many multifamily syndicators have either transitioned or are currently transitioning from a full-time W2 into the world of real estate. Taking the plunge can be daunting and going through the transition is demanding on time, finances, and one's emotions too. Luckily there is an art to it, and Jens Nielsen who is our guest for today is doing a great job of mastering it. Jens enjoyed working his W2 in the IT world for many years, but always wanted to find a way of clocking fewer hours while still making a good income. When he discovered real estate he dove in wholeheartedly and today specializes in underwriting, capital raising, and investor relations while still working his W2. In today’s episode, we speak to Jens about how he is managing the fear, time costs, social pressures, and risks involved in moving from his W2 into full-time syndication and coaching. He stresses the value of his time management skills, and also his dedication to remaining transparent with his W2 coworkers so as not to burn any bridges. Indeed, his boss has even invested in a few of his deals! If you’re looking for that push to finally quit your job and enter the world of passive income, this is the episode for you!Key Points From This Episode:Introducing Jens, a specialist in underwriting, capital raising, investor relations, and coaching.Jens’s previous life: enjoying saving through his W2 in IT before going the real estate route.How Jens had always wanted a passive income and then discovered real estate investing.Jens’s journey into real estate buying fourplexes and educating himself through partnerships.How Jens balances his W2 with real estate: early mornings, time management, and no kids!When Jens might leave his W2 and the lost deal opportunities he faces while staying.Transparency issues around keeping relations good at work while pivoting into real estate.Financial risks that come with leaving a W2 and transitioning into a freelance career.Advice for people getting into real estate: have support, build some savings, and get a coach.Using the worst-case scenario mental exercise to get over the fear of entrepreneurship.Jens’s five-year plan: sell smaller properties, keep coaching, and partner with his students.Tweetables:“For years I’ve been thinking about what I can do that doesn’t require me to punch the clock.” — Jens Nielsen [0:03:02]“It really is that shift from relying on one source – that W2 that comes every other week – to going out there and just creating your own future.” — Jens Nielsen [0:10:00]Links Mentioned in Today’s Episode:Jens Nielsen on LinkedInJens’ Email AddressOpen Doors CapitalThe 4-Hour Work WeekWayne PattonWayne Patton’s Asset ProtectionStreakPassive Income through Multifamily Real Estate group on FacebookLalita Mitchell on FacebookKyle Mitchell on FacebookLimitless Estates

Episode #109: Juggling a W2 While Scaling your Real Estate Portfolio with Jens Nielsen

Creating air-tight budgets, which factor in all expenses, no matter how small, is no easy feat. It requires patience, commitment, and an eye to detail. Danny Randazzo, our guest today, certainly possesses these skills. As an asset management and budgeting whizz, he knows how to get the maximum NOI on properties. In this episode, Danny walks us through the current budget he is doing, and how his company creates multiple budgets to come up with a solid end number. He also talks about why they choose to do cost per door as well as the importance of being market-specific. Geographic location can shift several budget factors, so it is important to be cognizant of this. Along with this, Danny sheds light on the importance of having strict criteria that you stick to when looking for properties. We learned a great deal in today’s show, and we know you will too. Be sure to tune in today!Key Points From This Episode:Learn more about Danny’s background and what he is currently involved in.Find out about Danny’s budgeting process on a new property he is underwriting.The differentiating line items to look for when creating a budget.Gary unpacks how location plays a role in budget differentiation.Why Danny believes focusing on one market and knowing it well will lead to greater success.How having strict criteria can help you stay conservative.Danny’s asset management superpower and his top tip for success.Tweetables:“When we budget, we look at what the previous owner’s performance was. And we understand how they operated it because likely, them being a pretty decent owner-operator, their numbers shouldn’t be too far off.” — Danny Randazzo [0:02:48]“You need to have a strict set of criteria and stick to it. If a deal doesn’t work because your criteria is conservative then it is not the deal for you.” — Danny Randazzo [0:10:18]“Every single dollar counts when you are looking at asset management.” — Danny Randazzo [0:13:48]Links Mentioned in Today’s Episode:Danny Randazzo Danny Randazzo on LinkedIn Danny Randazzo on Instagram Danny Randazzo on Facebook PassiveInvesting.com Sam WaltonCoStarPassive Income through Multifamily Real Estate Group on FacebookGary Lipsky on TwitterKyle Mitchell on FacebookGarzella Group

Episode #108: Budgeting with Danny Randazzo

With the right industry knowledge and a risk-mitigating model, any real estate investor could stop trading their time for money and enjoy true mailbox money. Our guest today is Tim Bratz and he joins us on the show to speak about how he has it all figured out in this regard. Tim is the CEO and founder of Legacy Wealth Holdings, a real estate investment company that acquires and transforms distressed commercial and apartment buildings into high-performance investment assets. Tim’s investment companies currently own over 3,700 rental units across eight different states, equivalent to a $300 million portfolio! Today on the show, Tim starts by talking about how he learned real estate through the school of hard knocks, finally coming to see the huge yields offered by apartment flipping. He then moves on to speak about how assistants, partnerships, and having a big business have helped him generate passive income and focus on his strengths: marketing and acquisitions. After that, Tim gets into three procedures for a successful investment firm, and how he mitigates risk using a brilliant and multifaceted business model. Tim then talks about his ‘shoot the net wide’ strategy for weeding out hundreds of bad deals a month and getting to the great ones fast. For top tips from a seasoned pro about leveraging people and generating a risk-free business, you should definitely plug into today’s episode!Key Points From This Episode:Tim’s path to financial freedom at 25 years old through flipping houses and equity splits.How Tim went broke starting a business then reentered real estate and flipped apartments.A liquidation of Tim’s apartment flipping partnership after which he founded a company.How apartments yielded a 10% time to 90% income ratio leading to Tim closing the company.A tripling of Tim’s income coming after he hired an assistant and focussed on apartment flips.The line between leveraging staff and over-hiring, and how Tim found himself doing the latter.Levels of efficiencies; how it is easier to run a big business than a small one.Joint venturing with people who excel at things you don’t, allowing you to focus on strengths.How Tim leveraged his lawyer’s skills while making him richer too by partnering with him.The idea that by leveraging A players one can have one’s time back and build wealth.Three procedures for mastering real estate: finding deals, raising money, and operations.How Tim’s buying and selling model which emphasizes options mitigates risk.A reminder never to forget to make bold offers because that’s how you find amazing deals.Tweetables:“I think a lot of us get involved in real estate for that allure of passive income and residual income, that mailbox money. But then we all get stuck in this transactional trap of trading our time for money.” — Tim Bratz [0:03:02]“When you lose money, the real character of somebody comes out. God forbid, you make money. People get even nastier, right?” — Tim Bratz [0:07:19]“I hired an assistant in March of 2015. In the next 10 months, I tripled my income.” — Tim Bratz [0:12:47]Links Mentioned in Today’s Episode:Tim Bratz on LinkedInTim Bratz on FacebookTim Bratz on InstagramLegacy Wealth HoldingsLegacy Wealth on YouTubeFundriseWarren BuffettWayne Patton

Episode #107: Buying Multifamily at Wholesale Prices to Reduce your Risk with Tim Bratz

Brandon Hall is a CPA who runs a firm called The Real Estate CPA, and in today’s episode, he talks to listeners about taxes. His first recommendation is for syndicators to understand what they are trying to accomplish with their deals and whether they are aiming to tax optimize or simply break even. He goes on the explain the importance of knowing the 2013 tangible property regulations and how it pertains to syndication, and then gets into why electing out of the business interest limitations is advisable in most instances. Brandon walks listeners through the nitty-gritty of the K-1 form, where the most pertinent details are located, and why it is of utmost necessity to keep track of your capital balance as a limited partner.  Key Points From This Episode:Learn about Brandon’s CPA firm, its clientele, and the number of employees.The three biggest tax considerations that asset managers should pay attention to. Why it is important to know the 2013 tangible property regulations. Establishing whether you are trying to maximize losses or simply break even. Advice for when syndicators should seek help with their taxes. An explanation of what business interest limitations are and how they impact syndicators. A breakdown of what a K1 looks like and the details that are relevant to you.The importance of tracking your capital account balance as a limited partner. Tweetables:“If I put 50,000 bucks into a partnership, then my capital account is 50,000 bucks. If the partnership liquidates and it has a gain, first they have to pay me back my 50,000 before it's allowed to distribute gain to anybody else.” — @BHallCPA [0:10:02]“The biggest thing that you need to make sure that you very clearly track is that capital count on an ongoing basis.” — @BHallCPA [0:12:08]Links Mentioned in Today’s Episode:Brandon Hall on LinkedInBrandon Hall on TwitterThe Real Estate CPAPassive Income through Multifamily Real Estate Group on FacebookGary Lipsky on TwitterKyle Mitchell on FacebookGarzella Group

Episode #106: Taxes with Brandon Hall

When it comes to real estate investing, you could have the best investment strategies or the most unique business model, but without the correct mindset, you’re unlikely to make it very far. By continuing to let self-limiting beliefs dictate your choices, you will always make decisions from a position of fear, which will hold you back from your potential. Our guest today, Steven Pasevento, is the host of the Investor Mindset Podcast and an active investor who has flipped over 150 homes within his first two years in the business. One of his core beliefs is that investing in yourself leads to the biggest return on investment, which is why he is a proponent of putting in the work to change your mindset. In this episode, we learn about Steven’s background and how he has managed to achieve real estate success despite starting with very limited capital. By not giving into self-doubt, he was able to achieve more than he ever dreamed of. He wanted to share these lessons with others, which prompted him to start his Investor Mindset podcast. After interviewing over 100 people, who are all at the top of the game, he noticed a pattern: It is important to have your mind in the right place, to have the right thoughts and beliefs so that you can take the right actions in your life.Key Points From This Episode:Learn more about Steven’s background and his experience in real estate so far.Find out Steven’s motivation for starting The Investor Mindset podcast. What happened when Steven entered into a head-to-head negotiation with Chris Voss.Why embracing challenges rather than running away from them will lead to greater growth.How to build up discipline, which is a crucial mindset tool that will help you succeed.Why adopting a growth mindset helps you reframe mistakes as learning opportunities.A small action you can take today to shift your mindset into a more positive one.Break down your large goal into small, actionable daily steps to not feel overwhelmed. Final four questions with Steven: A tool he can’t live without, his biggest mistake, and more.Links Mentioned in Today’s Episode:Steven PesaventoSteven Pesavento on InstagramSteven Pesavento on LinkedInSteven Pesavento on TwitterThe Investor MindsetThe Investor Mindset PodcastFree eBookChristopher VossChris Voss on The Investor MindsetWayne PattonWayne Patton’s phone numberFrank KernLimitless EstatesLimitless Estates on YouTubeLimitless Estates Monthly MeetupLimitless Estates EmailPassive Income Through Multifamily Real Estate Facebook Group Free Call with Kyle or Lalita

Episode #105: The Investor Mindset with Steven Pesavento

Welcome to the Passive income through multifamily real estate podcast brought to you by Limitless Estates where Kyle and Lalita talk to top experts and seasoned passive investors in the business to help provide clarity and key insights to keep you safe on your journey to financial freedom. Our goal is to help you get educated on how to create passive income for you and your family by using real estate as your vehicle.

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Passive Income through Multifamily Real Estate

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