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From Residential to Multifamily: Growing Your Real Estate Portfolio · The Academy Presents podcast

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  Did you know that 90 % of the world's millionaires
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  invest in real estate? Well, I'm Angel with the
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  Academy Presents Real Estate Investing Rocks,
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  and I'm here to help you if you want to go for
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  your piece of that pie. Are you new? Are you
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  new to this and you just don't know where to
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  start? It's okay. Are you someone that has invested,
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  but you feel stuck, you feel like you've lost
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  momentum, you don't know where to really head
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  from here? Are you a seasoned real estate investor
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  who is doing great, but maybe you just want to
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  hone a few skills here and there? This is the
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  place for you. The Academy Presents Real Estate
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  Investing Rocks podcast will connect you with
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  industry experts so that you can save time, avoid
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  costly mistakes, and begin living the life you've
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  dreamed of all through real estate investing.
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  You're already taking the first step. just by
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  joining us here today. Yeah, absolutely. So I
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  love the presentation, and this is really great.
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  And I think that a lot of what you're talking
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  about here can be used, like you said, across
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  multiple asset classes because, guys, for those
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  of you that have seen the recording I did with
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  Julian Peterson, we talked a little bit about
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  really backing up and remembering what it was
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  like to get started with something small. You
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  can get started with residential multis. You
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  can get started with, you know, five to 15, you
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  know, 20 unit. If you saw the recording with
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  the coal pentagraphs, we talked about what she
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  calls micro family. She doesn't even call it
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  multifamily. She calls it micro family because
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  she feels like it's a really good place to be.
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  And you can learn so much. And bank loans are
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  not the scariest thing out there. If you're sitting
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  here in multifamily thinking everything has to
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  be non recourse agency, it doesn't have to be.
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  There's lots of banks out there, especially those
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  local banks that want to work with you. And some
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  of them will even keep it in house. Like the
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  recourse loan we have on our second multifamily,
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  they're keeping that loan in house. And then
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  if we need to do anything to it, we can modify
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  it there. So if you get in a sticky situation,
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  using a local bank can be really advantageous
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  because They're very likely to work with you
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  because they can be a little bit more flexible
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  than some of those big banks. But if you, you
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  know, what is it you get? You get 10 loans per
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  name in the traditional with that W -2 type loan.
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  That can be split. You could do 10 in your name
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  and 10 in your partner's names and now you've
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  got 20. Those are pretty beautiful loans. We've
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  got some singles that have those traditional
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  loans and they're pretty nice too. We've got
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  some singles that are commercial. It just depends
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  on what fits for that particular deal. So it's,
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  I don't know, I'm trying to think of like some
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  of the different places where it makes more sense
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  to use one over the other, but I guess they're
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  also unique that it just depends on what's working
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  out. Yeah, usually what I see is it starts with,
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  well, I can't find enough deals. Then once they
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  find the deals, they use up all their capital.
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  And then they say, oh, I don't have enough capital.
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  So then they're trying to find the capital. And
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  then it's like, oh, well, how do I maximize the
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  ROI so I need as little capital as possible?
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  And so, yeah, thinking about the financing thing,
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  if you have zero deals, your job should be to
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  get a rejected offer in the next 48 hours. Like,
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  I would not worry at all. about financing if
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  you have zero deals. Your job would be to make
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  an offer on a house and get told no because what's
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  going to happen is or on a multifamily whatever
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  it is because they're going to say oh where's
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  your proof of funds like oh you know here's just
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  an LOI I don't need it you know I don't want
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  the proof of funds I just want to have a conversation
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  you can call the listing agent directly you could
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  offer them something solo that they're insulting
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  they tell you to go pound Sam but you'll go oh
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  great like I've at least exercised that muscle
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  and if someone finally counters or if you want
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  to make an actual serious offer like you see
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  a private they're gonna be like oh well where's
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  your pre -approval letter it's like okay well
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  are you then gonna go get that and so like but
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  some people are just like so afraid to make the
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  offer like just make the offer and then whatever
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  somebody asks you for okay that's your next domino
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  that you need to get maybe you need the cash
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  maybe you need the financing whatever it is but
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  some people want to get all the dominoes lined
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  up and then they'll make an offer and for me
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  just make the offer and if somebody asks for
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  something either get creative or go get it then.
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  Now we got really fortunate when we moved here
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  to Wichita Falls. It turned out that the realtor
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  that we used, he works with investors. Not all
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  realtors work with investors. So we've been really
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  fortunate that our first deal with him was our
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  own personal home. And then the other homes that
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  we've bought, he's brokered them for us. So We,
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  like I said, we just got really fortunate. Um,
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  if someone doesn't have an agent that they feel
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  confident with or feel secure with, how would
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  you suggest that they go about maybe finding
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  that person? So I was just on a podcast with
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  Gary Wilson and he has the global investor agent
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  where all he does is train agents to work with
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  investors. And so that might just be a free resource
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  of agents to search by your state, by your city.
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  because he trains investor agents, because I'm
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  of the same opinion, an agent can absolutely
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  make or break something. And so finding the right
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  one, that's honestly my criteria. It's like,
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  hey, do you have investment properties yourself?
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  If the answer is no, they're not an investor
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  agent, because an investor knows rentals, they
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  know who's the contact for, who's the best people
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  to do this, that, or the other. And so my general
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  rule with them, and there's some people that
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  are like, I'm really good at selling residential
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  single -family homes. And if I have to list with
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  one, okay, that makes sense because they have
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  a great buyer pool. They're like all of your
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  house sold before it's even listed because of
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  their marketing, because they're like listing
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  a home with an investor agent is to me is less
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  important than buying with an investor agent.
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  I don't know. We've just been really fortunate
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  that it worked out the way it worked out. And
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  I think the day that I knew was when He called,
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  he said that we were part of his investors and
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  we were like, Oh, I think we have found the right
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  person. And I think too, when you run into a
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  brokerage or you run into a realtor that has
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  a property management company in -house, they
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  tend to be a little more investor friendly because
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  they're providing more than one service. And
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  so we were also able to use that same brokerage
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  for our property management. And how nice is
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  that where they're like, Oh, by the way, We'll
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  just take care of all that. And they can tell
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  you the market trends, the market rent, what
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  vacancies are at. No, they're they're amazing.
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  And the last two that we bought, you said you
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  haven't been in the homes. Well, the last two
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  we got, we were at Tidal and I literally just
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  handed the keys across the table when they handed
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  them to me. And I was like, this is amazing.
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  And it was super cool. And they cash flowed.
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  And we did. That was the first time we hadn't
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  gone into a house before we bought it. So it's
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  um, you may be very familiar with not going into
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  the home when you buy but we never had and so
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  not but not many people are and and and to start
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  off or as I mean, of course if you can most I
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  mean, it's it's almost Advised to do that. We
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  have a system now where we got the inspection
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  the appraisal and different things that we're
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  verifying things Then we use the agent as boots
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  on the ground you know, do various things. So
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  we, you know, we get different, we get, you know,
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  various things, but to be able to have that team
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  in place is awesome. But number two, just go
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  enjoy it. Go look at the property that you're
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  about to buy. Go critique. Go if the seller didn't
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  clean out something like, Nope, I'm not closing
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  until they clear that out. Or you give me a $1
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  ,500 seller credit because then I got to go clean
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  it and I got to bring in a dumpster. And if they
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  really want that money to close, you can negotiate
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  a little bit. Now, whether or not they're willing
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  to call your bluff, they could just say no, but
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  you know, for the art of negotiation, just say,
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  Hey, I want $1 ,500 or go clear out your stuff
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  because you said it was going to be, you know,
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  broom, sweat clean, or this crap was going to
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  be out there. And what's the worst they can say?
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  No, you could sign anyways. Um, if they say yes,
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  just get the title, the doctor up something on
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  the, on the, on the settlement statement and
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  voila, $1 ,500 less. Yeah. And guys, if you're,
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  if you're wanting to do multifamily, and you
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  haven't done any other kind of real estate investing,
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  I'm always going to say that residential is my
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  home. That's where I started. That's where I
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  learned. I watched my grandparents do it. And
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  it's a very low risk way to get started. And
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  Freddie, I think it's Freddie. It is, absolutely
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  it is. Freddie Mac is now giving credit as experience
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  for people that have 10 years experience with
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  residential multis. They can now get agency loans.
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  they get their they get their freddy card so
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  there is absolutely known reason to get started
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  in residential multis because your agency lenders
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  are seeing it too now fanny isn't doing it but
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  freddy is so it's a really great way to get started
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  i mean it's it's more manageable you don't have
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  to have a whole team of people to do it you know
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  you're you're gonna want to have a team like
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  a property management team and stuff but you
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  don't have to with a two unit, three unit, four
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  unit, you could do that on your own. Now, I do
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  not push self -management because I think it's
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  insane. Having somebody else take care of the
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  headaches is 100 % worth 10%. It's probably 200
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  % worth 10%. But, you know, that's your call.
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  If you want to learn how to do the management
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  piece of it too, you go for it. Yeah, I think
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  it depends on what season in life you're in.
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  You're single. you're not married whatever it
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  is go ahead manage that sucker yourself if you're
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  married with kids and responsibilities or that
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  your time is don't yeah not even a question and
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  so depending on what season in life you're in
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  and your availability yes you can learn a lot
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  by self -managing i started off but that was
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  pre -marriage and pre -kids like sure i somebody
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  gives you a call on a Saturday or Sunday night,
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  it's kind of bummed. You got to leave the bar.
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  Not that it ever happened, but like that would
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  be the extreme, right? Versus like, oh, my kid's
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  been screaming all night and someone wants me
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  to come do something, but I'm here with my kid
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  and not bringing my kid over there to do something
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  like your responsibilities proportionally impact
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  your involvement. No, it changes. And I think
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  one of the reasons why I'm so jaded about is
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  I did watch my grandparents self -manage and
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  I watched them self -manage. to a time in life
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  where they really shouldn't have been. So I did
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  help them get a property manager after we had
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  gotten into it and had property management and
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  stuff. So we were able to do that for them. But
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  yeah, that's what jaded me was watching them.
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  I was just like, this isn't happening to me.
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  But yeah. Thank you so much for being here and
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  for sharing all of this. This was awesome. Again,
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  I'm always going to light up when it comes to
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  the residential stuff because that's we've been
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  a residential for 20 years. And both Jason and
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  I grew up in families that were investing in
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  residential real estate. So this is when I get
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  nervous, this is what I want to go back to. I
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  want to cling to the stuff that I really understand
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  and know. But it was it was a great it was a
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  great starting point. And even though I do get
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  stressed out with the multifamily stuff sometimes,
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  I can fall back on experiences that I had in
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  residential and use those to help me sort of
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  navigate through the rest of the stuff. So just
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  thank you again. And this was awesome. You're
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  welcome. Pleasure. Absolutely. And guys. If you
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  want to be on this side, that's great. We've
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  got tons of content. But if you want to join
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  us on the live side, you can upgrade to a VIP
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  ticket or get the VIP subscription and come join
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  us over there. We've got tons going on there
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  as well. So whichever way you choose. Until next
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  time.