Latest / MPI Multifamily Commercial Real Estate Investing / Transitioning from Single-Family to Multifamily

Transcript

Transitioning from Single-Family to Multifamily · MPI Multifamily Commercial Real Estate Investing

• 1:13
  Foreign.
• 1:16
  You're
• 1:17
  listening
• 1:17
  to
• 1:17
  the
• 1:18
  Master
• 1:18
  Passive
• 1:18
  Income
• 1:19
  Podcast
• 1:19
  Network.
• 1:23
  Hey
• 1:23
  guys,
• 1:23
  Charles
• 1:24
  Seaman
• 1:24
  here
• 1:24
  with
• 1:24
  Erica
• 1:25
  McNew
• 1:25
  and
• 1:25
  we're
• 1:25
  hosting
• 1:26
  the
• 1:26
  Master
• 1:26
  Passive
• 1:27
  Income
• 1:27
  Multifamily
• 1:28
  podcast.
• 1:29
  And
• 1:29
  if
• 1:29
  you
• 1:30
  want
• 1:30
  a
• 1:30
  commercial
• 1:30
  real
• 1:30
  estate
• 1:31
  success
• 1:31
  guide,
• 1:32
  you
• 1:32
  can
• 1:32
  text
• 1:32
  the
• 1:32
  word
• 1:32
  freedom
• 1:33
  to
• 1:34
  33777.
• 1:36
  So
• 1:36
  today
• 1:36
  we're
• 1:36
  going
• 1:36
  to
• 1:36
  be
• 1:37
  talking
• 1:37
  about
• 1:37
  a
• 1:37
  really
• 1:37
  interesting
• 1:38
  topic.
• 1:38
  We
• 1:38
  know
• 1:39
  that
• 1:39
  a
• 1:39
  lot
• 1:39
  of
• 1:39
  our
• 1:39
  listeners
• 1:40
  started
• 1:40
  out
• 1:41
  as
• 1:41
  single
• 1:41
  family
• 1:41
  investors.
• 1:42
  Many
• 1:42
  of
• 1:42
  them
• 1:43
  still
• 1:43
  invest
• 1:43
  in
• 1:44
  single
• 1:44
  family.
• 1:44
  So
• 1:44
  we're
• 1:45
  going
• 1:45
  to
• 1:45
  talk
• 1:45
  about
• 1:45
  some
• 1:45
  of
• 1:45
  the
• 1:46
  key
• 1:46
  differences
• 1:46
  between
• 1:47
  investing
• 1:47
  in
• 1:47
  single
• 1:47
  family
• 1:48
  and
• 1:48
  investing
• 1:48
  in
• 1:48
  multifamily
• 1:49
  and
• 1:50
  why
• 1:50
  you
• 1:50
  might
• 1:50
  want
• 1:50
  to
• 1:51
  make
• 1:51
  the
• 1:51
  jump
• 1:51
  if
• 1:51
  you
• 1:52
  haven't
• 1:52
  done
• 1:52
  so
• 1:52
  already.
• 1:56
  Welcome
• 1:57
  to
• 1:57
  the
• 1:57
  Master
• 1:58
  Passive
• 1:58
  Income
• 1:58
  Multifamily
• 1:59
  Podcast
• 2:00
  where
• 2:00
  we
• 2:01
  guide
• 2:01
  you
• 2:01
  to
• 2:01
  invest
• 2:01
  in
• 2:02
  commercial
• 2:02
  real
• 2:02
  estate
• 2:03
  with
• 2:03
  a
• 2:03
  special.
• 2:03
  Focus
• 2:04
  on
• 2:05
  raising
• 2:05
  money
• 2:06
  from
• 2:06
  others
• 2:06
  to
• 2:06
  buy
• 2:07
  bigger
• 2:07
  and
• 2:07
  better
• 2:08
  deals.
• 2:08
  And
• 2:09
  now
• 2:09
  here
• 2:09
  are
• 2:09
  your
• 2:09
  hosts,
• 2:10
  Charles
• 2:10
  seaman
• 2:11
  and
• 2:11
  Erica
• 2:11
  McCarthy.
• 2:12
  News.
• 2:16
  These
• 2:16
  myths
• 2:16
  will
• 2:17
  hold
• 2:17
  you
• 2:17
  back
• 2:17
  and
• 2:17
  become
• 2:18
  limiting
• 2:18
  beliefs
• 2:18
  if
• 2:19
  you
• 2:19
  don't
• 2:19
  debunk
• 2:19
  them.
• 2:20
  So
• 2:20
  we're
• 2:20
  here
• 2:21
  to
• 2:21
  help
• 2:21
  you
• 2:21
  get
• 2:21
  through
• 2:21
  the
• 2:21
  limiting
• 2:22
  beliefs
• 2:22
  so
• 2:22
  that
• 2:22
  you
• 2:23
  know
• 2:23
  that
• 2:23
  you
• 2:23
  can
• 2:23
  do
• 2:23
  it
• 2:24
  as
• 2:24
  well.
• 2:24
  Let's
• 2:25
  start
• 2:25
  with
• 2:25
  myth
• 2:25
  number
• 2:26
  one.
• 2:26
  Multifamily
• 2:27
  investing
• 2:28
  is
• 2:28
  only
• 2:28
  for
• 2:29
  the
• 2:29
  wealthy.
• 2:29
  Erica,
• 2:29
  do
• 2:30
  you
• 2:30
  have
• 2:30
  any
• 2:30
  insight
• 2:30
  on
• 2:30
  that?
• 2:31
  I
• 2:31
  do
• 2:32
  not
• 2:32
  think
• 2:32
  so
• 2:32
  at
• 2:32
  all.
• 2:33
  So
• 2:33
  you
• 2:33
  have
• 2:33
  a
• 2:34
  variety
• 2:34
  of
• 2:34
  different
• 2:35
  type
• 2:35
  of
• 2:35
  loans
• 2:36
  out
• 2:36
  there.
• 2:36
  Some
• 2:37
  of
• 2:37
  my
• 2:37
  favorite
• 2:37
  loan
• 2:38
  products
• 2:38
  are
• 2:39
  the
• 2:39
  FHA
• 2:40
  for
• 2:40
  3.5%
• 2:41
  down
• 2:41
  where
• 2:42
  you
• 2:42
  can
• 2:42
  buy
• 2:42
  up
• 2:42
  to
• 2:42
  a
• 2:42
  4
• 2:43
  Plex,
• 2:43
  live
• 2:43
  in
• 2:44
  one
• 2:44
  unit,
• 2:44
  rent
• 2:44
  out
• 2:44
  the
• 2:45
  other
• 2:45
  three
• 2:45
  and
• 2:46
  then
• 2:46
  another
• 2:46
  one
• 2:46
  of
• 2:47
  my
• 2:47
  favorite
• 2:47
  loan
• 2:47
  products
• 2:48
  is
• 2:48
  a
• 2:48
  VA
• 2:48
  loan
• 2:49
  for
• 2:49
  our
• 2:49
  veterans
• 2:50
  va.
• 2:50
  Many
• 2:50
  people
• 2:51
  don't
• 2:51
  know
• 2:51
  this,
• 2:51
  but
• 2:51
  you
• 2:51
  can
• 2:52
  actually
• 2:52
  purchase
• 2:52
  up
• 2:52
  to
• 2:53
  a
• 2:53
  4
• 2:53
  unit
• 2:53
  with
• 2:53
  your
• 2:53
  VA
• 2:54
  loan.
• 2:54
  So
• 2:55
  that
• 2:55
  not
• 2:55
  only
• 2:55
  do
• 2:55
  you
• 2:55
  have
• 2:55
  an
• 2:56
  owner
• 2:56
  occupied
• 2:56
  unit
• 2:57
  in
• 2:57
  your
• 2:57
  primary,
• 2:58
  but
• 2:58
  you
• 2:58
  already
• 2:58
  have
• 2:59
  income
• 2:59
  from
• 2:59
  three
• 3:00
  other
• 3:00
  units.
• 3:01
  So
• 3:01
  the
• 3:01
  FHA
• 3:02
  and
• 3:02
  the
• 3:02
  va.
• 3:02
  The
• 3:02
  VA
• 3:03
  is
• 3:03
  obviously
• 3:03
  no
• 3:03
  money
• 3:04
  down.
• 3:04
  So
• 3:05
  it's
• 3:05
  a
• 3:05
  huge
• 3:06
  bonus
• 3:06
  product
• 3:07
  for
• 3:07
  our,
• 3:07
  for
• 3:08
  our
• 3:08
  veterans
• 3:08
  that
• 3:08
  I
• 3:08
  don't
• 3:09
  see
• 3:09
  enough
• 3:09
  people
• 3:09
  take
• 3:10
  advantage
• 3:10
  of.
• 3:10
  I
• 3:11
  really
• 3:11
  love
• 3:11
  that
• 3:11
  one.
• 3:11
  And
• 3:12
  then
• 3:12
  obviously
• 3:12
  to
• 3:13
  be
• 3:13
  able
• 3:13
  to
• 3:13
  purchase
• 3:13
  a
• 3:13
  fourplex
• 3:14
  with
• 3:14
  three
• 3:14
  and
• 3:15
  a
• 3:15
  half,
• 3:15
  three
• 3:15
  percent
• 3:15
  down,
• 3:16
  that's
• 3:16
  pretty
• 3:17
  significant.
• 3:17
  You
• 3:18
  don't
• 3:18
  need
• 3:18
  to
• 3:18
  be
• 3:18
  wealthy.
• 3:18
  You
• 3:19
  do
• 3:19
  need
• 3:19
  to
• 3:19
  have
• 3:19
  some
• 3:19
  savings.
• 3:20
  So
• 3:21
  keep
• 3:21
  in
• 3:21
  mind
• 3:21
  that's
• 3:22
  definitely
• 3:22
  a
• 3:22
  great
• 3:22
  strategy
• 3:23
  if
• 3:23
  you're
• 3:23
  looking
• 3:24
  to
• 3:24
  go
• 3:24
  out
• 3:24
  there
• 3:24
  and
• 3:24
  do
• 3:24
  a
• 3:24
  house
• 3:25
  hack,
• 3:25
  which
• 3:25
  is
• 3:25
  obviously
• 3:26
  a
• 3:26
  very
• 3:26
  popular
• 3:26
  strategy
• 3:27
  in
• 3:27
  recent
• 3:27
  years.
• 3:28
  You
• 3:28
  know,
• 3:28
  using
• 3:29
  loan
• 3:29
  products
• 3:29
  like
• 3:30
  that,
• 3:30
  like
• 3:30
  the
• 3:30
  VA
• 3:30
  loans,
• 3:31
  if
• 3:31
  you're
• 3:31
  a
• 3:31
  veteran,
• 3:31
  you
• 3:32
  know,
• 3:32
  different
• 3:32
  FHA
• 3:32
  programs,
• 3:33
  those
• 3:33
  can
• 3:33
  Be
• 3:33
  great
• 3:34
  resources.
• 3:34
  And
• 3:35
  if
• 3:35
  you
• 3:35
  buy
• 3:35
  a
• 3:35
  four
• 3:35
  plex,
• 3:36
  you
• 3:36
  know,
• 3:36
  if
• 3:36
  you
• 3:37
  have
• 3:37
  three
• 3:37
  units
• 3:37
  that
• 3:37
  are
• 3:37
  occupied
• 3:38
  and
• 3:38
  paying
• 3:38
  rent,
• 3:39
  that
• 3:39
  means
• 3:39
  you're
• 3:39
  essentially
• 3:40
  living
• 3:40
  for
• 3:40
  free
• 3:40
  each
• 3:40
  month.
• 3:41
  So
• 3:41
  you
• 3:41
  don't
• 3:41
  have
• 3:41
  a
• 3:41
  housing
• 3:41
  course.
• 3:42
  And
• 3:42
  that,
• 3:42
  that
• 3:42
  saves
• 3:43
  for
• 3:43
  most
• 3:43
  people
• 3:44
  a
• 3:44
  lot
• 3:44
  of
• 3:44
  money
• 3:44
  that
• 3:44
  goes
• 3:45
  back
• 3:45
  into
• 3:45
  their
• 3:45
  pocket
• 3:45
  they
• 3:46
  can
• 3:46
  use
• 3:46
  for
• 3:46
  something
• 3:46
  else.
• 3:47
  Absolutely,
• 3:48
  yeah.
• 3:48
  And
• 3:48
  it
• 3:49
  allows
• 3:49
  people
• 3:49
  that
• 3:50
  have
• 3:50
  been
• 3:50
  diligent
• 3:50
  with
• 3:50
  their
• 3:51
  savings,
• 3:51
  you
• 3:51
  know,
• 3:51
  and
• 3:52
  diligent
• 3:52
  with
• 3:52
  their
• 3:52
  credit,
• 3:53
  that
• 3:53
  allows
• 3:53
  them
• 3:54
  an
• 3:54
  opportunity.
• 3:54
  Say
• 3:55
  it's
• 3:55
  not
• 3:55
  a
• 3:55
  fourplex,
• 3:55
  say
• 3:56
  it's
• 3:56
  just
• 3:56
  a
• 3:56
  duplex.
• 3:57
  That
• 3:57
  cash
• 3:58
  flow
• 3:58
  from
• 3:58
  that
• 3:58
  additional
• 3:59
  unit,
• 3:59
  it
• 4:00
  could
• 4:00
  cover
• 4:00
  half
• 4:00
  your
• 4:01
  mortgage
• 4:01
  on
• 4:01
  the
• 4:01
  property
• 4:02
  or
• 4:02
  more.
• 4:02
  So,
• 4:03
  I
• 4:03
  mean,
• 4:03
  that's
• 4:03
  really
• 4:04
  significant
• 4:04
  to
• 4:05
  have
• 4:05
  that
• 4:05
  type
• 4:05
  of
• 4:05
  debt
• 4:06
  pay
• 4:06
  down
• 4:06
  on
• 4:07
  what
• 4:07
  is
• 4:07
  basically
• 4:08
  your
• 4:08
  primary
• 4:08
  residence.
• 4:09
  So
• 4:09
  a
• 4:09
  lot
• 4:09
  of
• 4:09
  different
• 4:10
  ways.
• 4:10
  It
• 4:10
  doesn't.
• 4:11
  Doesn't
• 4:11
  mean
• 4:11
  that
• 4:11
  you
• 4:11
  have
• 4:11
  to
• 4:11
  be
• 4:12
  wealthy
• 4:12
  to
• 4:12
  get
• 4:12
  in.
• 4:13
  Okay,
• 4:13
  so
• 4:13
  let's
• 4:13
  go
• 4:13
  on
• 4:13
  to
• 4:14
  myth
• 4:14
  number
• 4:14
  two.
• 4:14
  Erica.
• 4:15
  So
• 4:15
  we
• 4:15
  got
• 4:15
  needing
• 4:16
  prior
• 4:16
  real
• 4:16
  estate
• 4:16
  experience
• 4:17
  to
• 4:17
  invest
• 4:17
  in
• 4:18
  multifamily.
• 4:18
  What's
• 4:19
  the
• 4:19
  reality
• 4:19
  you
• 4:19
  find
• 4:20
  here?
• 4:20
  I
• 4:21
  actually
• 4:22
  find
• 4:22
  that
• 4:22
  you
• 4:23
  don't
• 4:23
  need
• 4:23
  experience.
• 4:24
  You
• 4:24
  do,
• 4:25
  you
• 4:25
  do
• 4:25
  need
• 4:25
  to
• 4:25
  find
• 4:26
  people
• 4:26
  that
• 4:26
  have
• 4:26
  experience.
• 4:27
  That's
• 4:28
  the
• 4:28
  key
• 4:28
  there.
• 4:29
  So
• 4:29
  if
• 4:29
  you
• 4:29
  are
• 4:30
  somebody
• 4:30
  that
• 4:30
  doesn't
• 4:30
  have
• 4:30
  experience,
• 4:31
  but
• 4:31
  you
• 4:31
  want
• 4:31
  to
• 4:31
  invest
• 4:32
  in
• 4:32
  multifamily,
• 4:33
  for
• 4:33
  instance,
• 4:33
  you're
• 4:34
  somebody
• 4:34
  that
• 4:34
  can
• 4:34
  find
• 4:34
  opportunities.
• 4:36
  You
• 4:36
  are
• 4:36
  able
• 4:36
  to
• 4:36
  find
• 4:36
  the
• 4:37
  property
• 4:37
  off
• 4:37
  market,
• 4:38
  you're
• 4:38
  able
• 4:38
  to
• 4:39
  negotiate
• 4:39
  with
• 4:39
  the
• 4:40
  seller
• 4:40
  directly.
• 4:40
  You
• 4:41
  have
• 4:41
  an
• 4:41
  opportunity.
• 4:42
  You
• 4:42
  have
• 4:42
  none
• 4:42
  of
• 4:42
  the
• 4:42
  money.
• 4:43
  You
• 4:43
  have
• 4:43
  no
• 4:43
  experience
• 4:44
  at
• 4:44
  all.
• 4:44
  But
• 4:45
  you
• 4:45
  know,
• 4:45
  you
• 4:45
  found
• 4:45
  something.
• 4:46
  It's
• 4:46
  a
• 4:46
  beautiful.
• 4:47
  That
• 4:47
  part
• 4:47
  of
• 4:48
  why
• 4:48
  I
• 4:48
  encourage
• 4:48
  these
• 4:49
  networking
• 4:49
  events
• 4:50
  so
• 4:50
  much
• 4:50
  is
• 4:50
  because
• 4:51
  by
• 4:51
  the
• 4:51
  time
• 4:51
  you've
• 4:51
  gone
• 4:52
  out
• 4:52
  there
• 4:52
  and
• 4:52
  found
• 4:52
  an
• 4:52
  opportunity,
• 4:53
  should
• 4:53
  you
• 4:53
  have
• 4:54
  created
• 4:54
  the
• 4:54
  right
• 4:54
  network
• 4:55
  around
• 4:55
  you
• 4:55
  of
• 4:55
  people
• 4:55
  that
• 4:56
  do
• 4:56
  have
• 4:56
  the
• 4:56
  experience
• 4:57
  to
• 4:57
  get
• 4:57
  the
• 4:57
  deal
• 4:57
  done,
• 4:58
  that
• 4:58
  can
• 4:58
  be
• 4:58
  your
• 4:59
  outlet.
• 4:59
  In
• 5:00
  for
• 5:00
  no
• 5:00
  money,
• 5:01
  down
• 5:01
  for
• 5:01
  no
• 5:01
  money.
• 5:02
  In.
• 5:02
  You
• 5:02
  can
• 5:02
  get
• 5:02
  in
• 5:02
  on
• 5:03
  a
• 5:03
  really
• 5:03
  decent
• 5:03
  sized
• 5:04
  project
• 5:04
  just
• 5:05
  by
• 5:05
  being
• 5:05
  the
• 5:05
  one
• 5:05
  that
• 5:05
  found
• 5:05
  the
• 5:06
  opportunity.
• 5:06
  That
• 5:07
  doesn't
• 5:07
  require
• 5:07
  any
• 5:07
  experience
• 5:08
  and
• 5:08
  it
• 5:08
  doesn't
• 5:08
  require
• 5:09
  any
• 5:09
  money.
• 5:09
  Awesome.
• 5:10
  So
• 5:11
  I
• 5:11
  definitely
• 5:11
  agree
• 5:11
  with
• 5:11
  a
• 5:12
  lot
• 5:12
  of
• 5:12
  those
• 5:12
  points.
• 5:12
  You
• 5:13
  know,
• 5:13
  you
• 5:13
  need
• 5:13
  to
• 5:13
  have
• 5:13
  the
• 5:13
  right
• 5:14
  team
• 5:14
  around
• 5:14
  you
• 5:14
  in
• 5:14
  anything,
• 5:15
  right?
• 5:15
  So
• 5:15
  if
• 5:15
  you
• 5:15
  gotta
• 5:15
  be
• 5:15
  successful,
• 5:16
  you
• 5:16
  gotta
• 5:16
  figure
• 5:17
  out
• 5:17
  who
• 5:17
  you
• 5:17
  need
• 5:18
  on
• 5:18
  the
• 5:18
  team
• 5:18
  with
• 5:19
  you.
• 5:19
  And
• 5:20
  one
• 5:20
  of
• 5:20
  the
• 5:20
  things
• 5:20
  that's
• 5:20
  gonna
• 5:21
  be
• 5:21
  key
• 5:21
  there
• 5:21
  is
• 5:21
  understanding
• 5:22
  what
• 5:22
  you're
• 5:22
  good
• 5:23
  at.
• 5:23
  You
• 5:23
  have
• 5:23
  to
• 5:23
  know
• 5:23
  what
• 5:23
  you
• 5:24
  bring
• 5:24
  to
• 5:24
  the
• 5:24
  table,
• 5:24
  what
• 5:25
  makes
• 5:25
  you
• 5:25
  unique,
• 5:26
  why
• 5:26
  people
• 5:26
  wanna
• 5:26
  work
• 5:27
  with
• 5:27
  you.
• 5:27
  And
• 5:27
  then
• 5:27
  you
• 5:28
  need
• 5:28
  to
• 5:28
  go
• 5:28
  out.
• 5:28
  There
• 5:28
  and
• 5:28
  find
• 5:28
  people
• 5:29
  that
• 5:29
  can
• 5:29
  fill
• 5:29
  those
• 5:29
  gaps
• 5:30
  for
• 5:30
  You.
• 5:30
  So
• 5:30
  if
• 5:30
  you
• 5:30
  have
• 5:31
  the
• 5:31
  ability
• 5:31
  to
• 5:31
  go
• 5:32
  out
• 5:32
  there
• 5:32
  and
• 5:32
  source
• 5:32
  deals
• 5:32
  like
• 5:33
  Eric
• 5:33
  is
• 5:33
  saying,
• 5:33
  but
• 5:33
  you
• 5:33
  need
• 5:34
  somebody
• 5:34
  to
• 5:34
  go
• 5:34
  out
• 5:34
  there
• 5:35
  and
• 5:35
  oversee
• 5:36
  management,
• 5:36
  somebody
• 5:37
  to
• 5:37
  oversee
• 5:37
  construction
• 5:38
  or
• 5:38
  somebody
• 5:38
  to
• 5:39
  sign
• 5:39
  on
• 5:39
  a
• 5:39
  loan.
• 5:40
  You
• 5:40
  have
• 5:40
  to
• 5:40
  find
• 5:40
  those
• 5:40
  right
• 5:41
  partners
• 5:41
  to
• 5:41
  fill
• 5:41
  the
• 5:42
  gaps.
• 5:42
  Absolutely.
• 5:43
  Myth
• 5:43
  number
• 5:44
  three,
• 5:44
  managing
• 5:45
  multifamily
• 5:45
  properties
• 5:46
  is
• 5:46
  overwhelming.
• 5:47
  What
• 5:48
  do
• 5:48
  you
• 5:48
  think
• 5:48
  there,
• 5:48
  Erica?
• 5:49
  If
• 5:49
  you
• 5:49
  hire
• 5:49
  the
• 5:50
  property
• 5:50
  management
• 5:51
  company?
• 5:51
  No,
• 5:51
  it
• 5:51
  is
• 5:52
  not.
• 5:52
  And
• 5:53
  that's
• 5:53
  another
• 5:53
  part
• 5:53
  of
• 5:54
  having
• 5:54
  the
• 5:54
  right
• 5:54
  relationships.
• 5:55
  Again,
• 5:55
  one
• 5:55
  of
• 5:55
  my
• 5:56
  favorite
• 5:56
  books
• 5:56
  is
• 5:56
  Millionaire
• 5:57
  Real
• 5:57
  Estate
• 5:57
  Investor.
• 5:58
  It
• 5:58
  really
• 5:59
  goes
• 5:59
  through
• 5:59
  in
• 6:00
  detail
• 6:00
  for
• 6:01
  multiple
• 6:01
  chapters
• 6:01
  on
• 6:02
  how
• 6:02
  to
• 6:02
  build
• 6:02
  the
• 6:02
  right
• 6:02
  work
• 6:03
  network.
• 6:03
  The
• 6:03
  most
• 6:04
  important
• 6:04
  person
• 6:05
  on
• 6:05
  your
• 6:05
  team
• 6:05
  is
• 6:05
  going
• 6:06
  to
• 6:06
  be
• 6:06
  your
• 6:06
  property
• 6:06
  manager.
• 6:07
  I
• 6:07
  can
• 6:08
  vouch
• 6:08
  personally
• 6:08
  as
• 6:08
  a
• 6:09
  real
• 6:09
  estate
• 6:09
  broker
• 6:09
  for
• 6:10
  10
• 6:10
  years
• 6:10
  now
• 6:11
  that
• 6:12
  I
• 6:12
  do
• 6:12
  not
• 6:12
  have
• 6:12
  the
• 6:13
  same
• 6:13
  scope
• 6:14
  of
• 6:14
  knowledge
• 6:14
  as
• 6:14
  a
• 6:14
  property
• 6:15
  manager
• 6:16
  on
• 6:16
  the
• 6:16
  rental
• 6:16
  rates
• 6:16
  of
• 6:17
  a
• 6:17
  certain
• 6:17
  property,
• 6:18
  whether
• 6:18
  or
• 6:18
  not
• 6:18
  it
• 6:18
  can
• 6:19
  rent
• 6:19
  or
• 6:19
  will
• 6:20
  rent.
• 6:20
  Those
• 6:20
  are
• 6:21
  all
• 6:21
  things
• 6:21
  that
• 6:21
  you
• 6:21
  get
• 6:21
  from
• 6:22
  a
• 6:22
  property
• 6:22
  manager.
• 6:23
  So
• 6:23
  that
• 6:23
  relationship
• 6:24
  in
• 6:24
  particular
• 6:25
  is
• 6:25
  critical
• 6:26
  to
• 6:27
  ensuring
• 6:28
  that
• 6:28
  you
• 6:28
  don't
• 6:28
  take
• 6:29
  on
• 6:29
  a
• 6:29
  full
• 6:29
  time
• 6:30
  job,
• 6:30
  but
• 6:31
  rather
• 6:31
  are
• 6:31
  passively
• 6:32
  investing
• 6:32
  in
• 6:32
  real
• 6:33
  estate.
• 6:33
  Yes,
• 6:34
  very
• 6:34
  true.
• 6:34
  One
• 6:34
  thing
• 6:35
  I
• 6:35
  would
• 6:35
  say,
• 6:35
  you
• 6:35
  know,
• 6:35
  kind
• 6:36
  of
• 6:36
  further
• 6:36
  touching
• 6:36
  on
• 6:37
  Erica's
• 6:37
  point.
• 6:37
  You
• 6:37
  know,
• 6:38
  I
• 6:38
  always
• 6:38
  say
• 6:39
  the
• 6:39
  broker
• 6:39
  is
• 6:39
  the
• 6:39
  expert
• 6:40
  on
• 6:40
  anything
• 6:40
  sale
• 6:41
  related.
• 6:41
  That's
• 6:41
  what
• 6:41
  they
• 6:42
  do.
• 6:42
  They
• 6:42
  have
• 6:43
  expertise
• 6:43
  there,
• 6:43
  they
• 6:44
  know
• 6:44
  the
• 6:44
  market,
• 6:44
  they
• 6:44
  know
• 6:44
  what's
• 6:45
  happening.
• 6:45
  The
• 6:45
  property
• 6:46
  manager
• 6:46
  is
• 6:46
  going
• 6:46
  to
• 6:46
  be
• 6:46
  the
• 6:46
  expert
• 6:47
  on
• 6:47
  rental
• 6:47
  items.
• 6:48
  You
• 6:48
  know,
• 6:48
  they,
• 6:48
  they
• 6:49
  know
• 6:49
  what
• 6:49
  a
• 6:49
  property
• 6:50
  can
• 6:50
  rent
• 6:50
  for.
• 6:50
  They
• 6:51
  know
• 6:51
  which
• 6:51
  areas
• 6:52
  you
• 6:52
  might
• 6:52
  not
• 6:52
  want
• 6:52
  to
• 6:52
  be
• 6:53
  in
• 6:53
  because
• 6:53
  maybe
• 6:53
  they're
• 6:54
  rougher
• 6:54
  areas.
• 6:54
  Now
• 6:55
  again,
• 6:55
  different
• 6:55
  people
• 6:56
  want
• 6:56
  different
• 6:56
  things.
• 6:56
  So
• 6:57
  if
• 6:57
  that's
• 6:57
  your
• 6:57
  thing,
• 6:57
  you
• 6:57
  can,
• 6:58
  you
• 6:58
  can
• 6:58
  do
• 6:58
  that.
• 6:58
  You
• 6:59
  just
• 6:59
  got
• 6:59
  to
• 6:59
  make
• 6:59
  sure
• 6:59
  you're
• 6:59
  prepared
• 7:00
  to
• 7:00
  handle
• 7:00
  it.
• 7:01
  You
• 7:01
  know,
• 7:01
  you
• 7:01
  got
• 7:01
  to
• 7:01
  find
• 7:01
  somebody
• 7:02
  who
• 7:02
  specializes
• 7:03
  in
• 7:03
  the
• 7:03
  type
• 7:04
  of
• 7:04
  property
• 7:04
  you're
• 7:04
  looking
• 7:04
  at.
• 7:05
  If
• 7:05
  you're
• 7:05
  going
• 7:05
  out
• 7:06
  and
• 7:06
  you're
• 7:06
  buying
• 7:06
  a
• 7:06
  300
• 7:07
  a
• 7:07
  class
• 7:07
  apartment
• 7:08
  building,
• 7:08
  you're
• 7:09
  not
• 7:09
  going
• 7:09
  to
• 7:09
  be
• 7:09
  using
• 7:09
  a
• 7:09
  property
• 7:10
  manager
• 7:10
  who
• 7:10
  manages
• 7:11
  5
• 7:11
  and
• 7:11
  10
• 7:12
  unit
• 7:12
  C
• 7:12
  class
• 7:13
  properties
• 7:13
  because
• 7:13
  that's
• 7:13
  not
• 7:13
  going
• 7:14
  to
• 7:14
  be
• 7:14
  the
• 7:14
  right
• 7:14
  fit.
• 7:15
  So
• 7:15
  you
• 7:15
  need
• 7:15
  somebody
• 7:16
  with
• 7:16
  experience
• 7:16
  and
• 7:17
  expertise
• 7:17
  to
• 7:18
  again,
• 7:18
  fill
• 7:18
  in
• 7:18
  the
• 7:18
  gaps
• 7:19
  that
• 7:19
  you
• 7:19
  might
• 7:19
  not
• 7:19
  have.
• 7:20
  And
• 7:20
  that's
• 7:21
  going
• 7:21
  to
• 7:21
  go
• 7:21
  a
• 7:21
  long
• 7:21
  way
• 7:22
  both
• 7:22
  with
• 7:22
  getting
• 7:22
  approval
• 7:23
  from
• 7:23
  the
• 7:23
  lender
• 7:23
  to
• 7:24
  get
• 7:24
  a
• 7:24
  loan
• 7:24
  for
• 7:25
  the
• 7:25
  property
• 7:25
  and
• 7:25
  also
• 7:25
  to
• 7:26
  actually
• 7:26
  operate
• 7:26
  the
• 7:26
  property
• 7:27
  successfully.
• 7:28
  So
• 7:28
  find
• 7:29
  who
• 7:29
  the
• 7:29
  right
• 7:29
  people
• 7:29
  and
• 7:29
  the
• 7:30
  right
• 7:30
  companies
• 7:30
  are
• 7:30
  that
• 7:30
  you
• 7:31
  need
• 7:31
  to
• 7:31
  be
• 7:31
  working
• 7:31
  with.
• 7:32
  Ask
• 7:32
  other
• 7:32
  investors.
• 7:33
  You
• 7:33
  can
• 7:33
  do
• 7:33
  this
• 7:33
  at
• 7:33
  networking
• 7:34
  events.
• 7:34
  And
• 7:35
  you
• 7:35
  could
• 7:35
  also
• 7:35
  just
• 7:35
  do
• 7:35
  simple
• 7:36
  Google
• 7:36
  searches
• 7:36
  and
• 7:37
  figure
• 7:37
  out
• 7:37
  who
• 7:38
  are
• 7:38
  the
• 7:38
  people
• 7:38
  that
• 7:38
  you
• 7:38
  need
• 7:39
  to
• 7:39
  know
• 7:39
  on
• 7:39
  their
• 7:40
  side.
• 7:40
  I
• 7:40
  completely
• 7:41
  agree.
• 7:41
  And
• 7:41
  I
• 7:42
  will
• 7:42
  add
• 7:42
  to
• 7:42
  that
• 7:42
  that
• 7:43
  it's
• 7:43
  funny
• 7:43
  that
• 7:43
  sometimes
• 7:44
  I
• 7:44
  will
• 7:44
  actually
• 7:45
  help
• 7:45
  my
• 7:45
  investors
• 7:46
  find
• 7:46
  their
• 7:46
  buy
• 7:47
  box
• 7:47
  based
• 7:47
  on
• 7:48
  their
• 7:48
  work
• 7:48
  network.
• 7:49
  So
• 7:49
  for
• 7:49
  instance,
• 7:50
  like
• 7:50
  I
• 7:50
  met
• 7:50
  a
• 7:50
  regional
• 7:51
  property
• 7:51
  manager
• 7:52
  for
• 7:52
  a
• 7:52
  company
• 7:53
  that
• 7:53
  does
• 7:53
  a
• 7:53
  large
• 7:54
  property
• 7:54
  management
• 7:54
  company
• 7:55
  out
• 7:55
  of,
• 7:55
  it's
• 7:55
  all
• 7:56
  in
• 7:56
  southeastern
• 7:56
  mostly
• 7:57
  Florida
• 7:57
  yesterday.
• 7:58
  And
• 7:58
  he,
• 7:58
  I
• 7:58
  could
• 7:59
  tell
• 7:59
  hearing
• 7:59
  him
• 7:59
  on
• 7:59
  the
• 7:59
  phone,
• 8:00
  I'm
• 8:00
  like,
• 8:00
  this
• 8:00
  is
• 8:00
  somebody
• 8:01
  I
• 8:01
  want
• 8:01
  to
• 8:01
  work
• 8:01
  with.
• 8:02
  And
• 8:02
  I
• 8:02
  turned
• 8:03
  around,
• 8:03
  was
• 8:03
  like,
• 8:03
  hi,
• 8:04
  how
• 8:04
  are
• 8:04
  you?
• 8:05
  And
• 8:05
  got
• 8:05
  his
• 8:05
  information.
• 8:06
  Turns
• 8:06
  out
• 8:06
  he
• 8:06
  was
• 8:06
  not
• 8:07
  one
• 8:07
  of
• 8:07
  the
• 8:07
  companies
• 8:07
  that
• 8:08
  my
• 8:08
  partner
• 8:08
  had
• 8:08
  interviewed
• 8:09
  for
• 8:09
  his
• 8:09
  larger
• 8:09
  assets
• 8:10
  in
• 8:10
  Florida.
• 8:10
  So
• 8:10
  I've
• 8:11
  connected
• 8:11
  them
• 8:11
  now.
• 8:12
  But
• 8:12
  one
• 8:12
  of
• 8:12
  my
• 8:12
  first
• 8:12
  questions
• 8:13
  is
• 8:13
  like,
• 8:13
  what
• 8:14
  will
• 8:14
  you
• 8:14
  manage
• 8:14
  and
• 8:15
  what
• 8:15
  will
• 8:15
  you
• 8:15
  not
• 8:15
  manage?
• 8:16
  Right?
• 8:16
  Because
• 8:16
  some,
• 8:17
  the
• 8:17
  thing
• 8:17
  is
• 8:17
  a
• 8:17
  lot
• 8:18
  of
• 8:18
  people
• 8:18
  think,
• 8:18
  okay,
• 8:18
  I'm
• 8:18
  going
• 8:19
  to
• 8:19
  go
• 8:19
  smaller,
• 8:19
  I'm
• 8:20
  going
• 8:20
  to
• 8:20
  purchase
• 8:20
  a
• 8:20
  30
• 8:21
  unit
• 8:21
  instead
• 8:21
  of
• 8:21
  100
• 8:22
  unit,
• 8:22
  for
• 8:22
  instance.
• 8:23
  I'm
• 8:23
  going
• 8:23
  to
• 8:23
  smaller
• 8:24
  because
• 8:24
  it's
• 8:24
  one
• 8:24
  of
• 8:24
  my
• 8:24
  first
• 8:24
  times
• 8:25
  doing
• 8:25
  it.
• 8:25
  And
• 8:26
  I
• 8:26
  encourage
• 8:27
  that.
• 8:27
  That
• 8:27
  can
• 8:27
  be
• 8:27
  a
• 8:28
  really
• 8:28
  great
• 8:28
  strategy
• 8:28
  for
• 8:29
  many
• 8:29
  reasons.
• 8:29
  And
• 8:30
  are
• 8:30
  you
• 8:30
  going
• 8:30
  to
• 8:30
  be
• 8:30
  able
• 8:31
  to
• 8:31
  get
• 8:31
  the
• 8:31
  right
• 8:31
  property
• 8:32
  manager
• 8:32
  that
• 8:32
  you
• 8:33
  actually
• 8:33
  want
• 8:33
  for
• 8:34
  this
• 8:34
  to
• 8:34
  be
• 8:34
  a
• 8:34
  passive
• 8:35
  investment
• 8:35
  on
• 8:35
  a
• 8:36
  30
• 8:36
  unit
• 8:36
  or
• 8:37
  will
• 8:37
  it
• 8:37
  require
• 8:37
  that
• 8:38
  you
• 8:38
  have
• 8:38
  more
• 8:38
  units?
• 8:39
  And
• 8:39
  so
• 8:40
  also
• 8:40
  like,
• 8:40
  those
• 8:41
  relationships
• 8:41
  will
• 8:42
  somehow
• 8:42
  sometimes
• 8:43
  kind
• 8:43
  of
• 8:44
  amend
• 8:44
  the
• 8:44
  buy
• 8:44
  box,
• 8:45
  if
• 8:45
  you
• 8:45
  will.
• 8:46
  So
• 8:46
  it's
• 8:46
  knowing
• 8:47
  who
• 8:47
  you're
• 8:47
  going
• 8:47
  to
• 8:47
  be
• 8:47
  working
• 8:47
  with
• 8:48
  ahead
• 8:48
  of
• 8:48
  time,
• 8:48
  being
• 8:48
  proactive
• 8:49
  in
• 8:49
  those
• 8:49
  relationships,
• 8:50
  that's
• 8:50
  part
• 8:50
  of
• 8:50
  why
• 8:50
  it's
• 8:51
  so
• 8:51
  important.
• 8:51
  Oh,
• 8:52
  100%,
• 8:52
  I
• 8:53
  agree.
• 8:53
  Got
• 8:53
  to
• 8:53
  find
• 8:53
  that
• 8:54
  right
• 8:54
  fit.
• 8:54
  Just
• 8:54
  keep
• 8:55
  that
• 8:55
  in
• 8:55
  mind.
• 8:55
  Okay,
• 8:56
  so
• 8:56
  let's
• 8:56
  go
• 8:56
  on
• 8:56
  to
• 8:56
  the
• 8:57
  next
• 8:57
  myth
• 8:57
  myth
• 8:58
  number
• 8:58
  four.
• 8:58
  Only
• 8:59
  big
• 8:59
  cities
• 8:59
  are
• 9:00
  good
• 9:00
  for
• 9:00
  multifamily
• 9:01
  investing.
• 9:02
  So
• 9:02
  when
• 9:02
  we
• 9:02
  say
• 9:03
  big
• 9:03
  cities,
• 9:03
  that's,
• 9:03
  that's
• 9:04
  a
• 9:04
  pretty
• 9:04
  broad
• 9:04
  term.
• 9:05
  But
• 9:05
  think
• 9:05
  of
• 9:05
  like
• 9:06
  a
• 9:06
  primary
• 9:06
  market
• 9:07
  like
• 9:07
  a
• 9:07
  New
• 9:07
  York
• 9:07
  or
• 9:07
  Los
• 9:08
  Angeles
• 9:08
  or
• 9:09
  Dallas.
• 9:10
  You
• 9:10
  know,
• 9:10
  big
• 9:10
  markets
• 9:11
  like
• 9:11
  that
• 9:11
  that
• 9:11
  are
• 9:11
  really
• 9:11
  like
• 9:12
  the
• 9:12
  main
• 9:13
  economic
• 9:13
  hubs
• 9:13
  of
• 9:13
  the
• 9:14
  country.
• 9:14
  Do
• 9:14
  you
• 9:14
  agree,
• 9:14
  Erica,
• 9:15
  that
• 9:15
  you
• 9:15
  need
• 9:15
  to
• 9:15
  be
• 9:15
  in
• 9:15
  one
• 9:16
  of
• 9:16
  those
• 9:16
  markets
• 9:16
  to
• 9:16
  be
• 9:16
  doing
• 9:17
  multifamily
• 9:17
  investing?
• 9:18
  I
• 9:18
  agree.
• 9:18
  You're
• 9:19
  absolutely.
• 9:20
  For
• 9:20
  especially
• 9:21
  like
• 9:21
  you
• 9:21
  get
• 9:21
  into
• 9:22
  larger
• 9:22
  multifamily
• 9:23
  assets.
• 9:24
  Part
• 9:24
  of
• 9:24
  when
• 9:25
  I
• 9:25
  went
• 9:25
  to
• 9:25
  start
• 9:26
  into
• 9:26
  multifamily
• 9:27
  last
• 9:27
  year
• 9:28
  in
• 9:28
  March,
• 9:28
  I,
• 9:29
  you
• 9:29
  know,
• 9:29
  first
• 9:30
  thing
• 9:30
  I
• 9:30
  did
• 9:30
  was
• 9:30
  looked
• 9:30
  at
• 9:30
  all
• 9:30
  of
• 9:31
  our
• 9:31
  inventory
• 9:31
  and
• 9:31
  got
• 9:31
  to
• 9:31
  know
• 9:32
  our
• 9:32
  inventory
• 9:32
  at
• 9:32
  a
• 9:32
  high
• 9:32
  level.
• 9:33
  And
• 9:33
  I
• 9:33
  quickly
• 9:34
  realized
• 9:34
  why
• 9:35
  so
• 9:35
  many
• 9:35
  people
• 9:35
  love
• 9:35
  Charlotte,
• 9:36
  North
• 9:36
  Carolina.
• 9:37
  We
• 9:37
  have
• 9:37
  a
• 9:38
  absurd
• 9:38
  amount
• 9:38
  of
• 9:39
  100
• 9:39
  plus
• 9:39
  store
• 9:39
  apartment
• 9:40
  complexes
• 9:40
  that
• 9:40
  you
• 9:40
  can
• 9:41
  purchase.
• 9:41
  And
• 9:42
  not
• 9:42
  all
• 9:42
  markets
• 9:43
  are
• 9:43
  like
• 9:43
  that.
• 9:43
  So
• 9:44
  we're
• 9:44
  very
• 9:44
  fortunate
• 9:45
  to
• 9:45
  be
• 9:45
  in
• 9:45
  a
• 9:45
  market
• 9:45
  like
• 9:45
  Charlotte.
• 9:46
  However,
• 9:47
  when
• 9:47
  it
• 9:47
  comes
• 9:47
  to
• 9:47
  like,
• 9:48
  even
• 9:48
  like
• 9:49
  the
• 9:49
  single
• 9:49
  family
• 9:49
  resident
• 9:50
  opportunities
• 9:50
  that
• 9:51
  you'll
• 9:51
  have,
• 9:51
  those
• 9:51
  tertiary
• 9:52
  markets
• 9:52
  are
• 9:52
  insane
• 9:53
  sometimes.
• 9:54
  So
• 9:54
  like
• 9:54
  I
• 9:54
  drove
• 9:55
  through
• 9:55
  Mississippi,
• 9:56
  going
• 9:56
  to
• 9:56
  Austin,
• 9:57
  Texas
• 9:57
  three
• 9:58
  times
• 9:58
  in
• 9:58
  2022,
• 9:59
  and
• 10:00
  I
• 10:00
  stopped
• 10:00
  by
• 10:01
  Vicksburg,
• 10:01
  Mississippi
• 10:02
  in
• 10:02
  particular.
• 10:03
  Houses
• 10:03
  were
• 10:04
  $80,000
• 10:05
  a
• 10:05
  piece,
• 10:05
  renting
• 10:05
  at
• 10:06
  almost
• 10:06
  fourteen
• 10:06
  hundred
• 10:07
  dollars
• 10:07
  a
• 10:07
  month.
• 10:08
  So
• 10:08
  that's,
• 10:09
  you
• 10:09
  don't
• 10:09
  find
• 10:10
  those
• 10:10
  type
• 10:10
  of
• 10:10
  cap
• 10:11
  rates
• 10:11
  in
• 10:11
  Charlotte,
• 10:11
  North
• 10:12
  Carolina
• 10:12
  right
• 10:12
  now.
• 10:13
  So
• 10:13
  the
• 10:13
  tertiary
• 10:14
  markets,
• 10:14
  secondary
• 10:14
  markets
• 10:15
  are
• 10:15
  amazing
• 10:16
  opportunities,
• 10:17
  but
• 10:17
  depending
• 10:18
  on
• 10:18
  what
• 10:18
  product
• 10:18
  type
• 10:18
  you're
• 10:19
  buying
• 10:19
  for
• 10:19
  sure.
• 10:19
  Yeah.
• 10:20
  And
• 10:20
  that's
• 10:20
  really
• 10:21
  important.
• 10:21
  You
• 10:21
  have
• 10:21
  to
• 10:21
  know
• 10:21
  the
• 10:21
  market
• 10:22
  and
• 10:22
  know
• 10:22
  what
• 10:22
  you're
• 10:22
  looking
• 10:22
  for.
• 10:23
  So
• 10:23
  different
• 10:23
  markets
• 10:24
  are
• 10:24
  going
• 10:24
  to
• 10:24
  bring
• 10:24
  different
• 10:25
  things.
• 10:25
  Right.
• 10:25
  So
• 10:26
  can
• 10:26
  you
• 10:26
  invest
• 10:27
  in
• 10:27
  a
• 10:27
  primary
• 10:27
  market
• 10:27
  and
• 10:28
  be
• 10:28
  successful?
• 10:28
  Absolutely.
• 10:29
  Most
• 10:29
  times
• 10:30
  those
• 10:30
  markets
• 10:30
  are
• 10:30
  going
• 10:30
  to
• 10:31
  have
• 10:31
  more
• 10:31
  competition.
• 10:32
  That
• 10:32
  means
• 10:32
  they're
• 10:32
  going
• 10:32
  to
• 10:33
  have
• 10:33
  higher
• 10:33
  prices,
• 10:34
  lower
• 10:34
  cap
• 10:34
  rates.
• 10:35
  The
• 10:35
  benefits
• 10:35
  in
• 10:35
  markets
• 10:36
  like
• 10:36
  that
• 10:36
  is
• 10:36
  that
• 10:37
  even
• 10:37
  when
• 10:37
  cycles
• 10:37
  change,
• 10:38
  usually
• 10:38
  they
• 10:38
  don't
• 10:38
  get
• 10:39
  hit
• 10:39
  as
• 10:39
  hard
• 10:39
  as
• 10:39
  some
• 10:40
  smaller
• 10:40
  markets.
• 10:41
  But
• 10:41
  it
• 10:41
  also
• 10:41
  means
• 10:42
  that
• 10:42
  you
• 10:42
  may
• 10:42
  have,
• 10:42
  you
• 10:43
  know,
• 10:43
  a
• 10:43
  lot
• 10:43
  more
• 10:43
  competition
• 10:44
  and
• 10:45
  you
• 10:45
  need
• 10:45
  to
• 10:45
  have
• 10:46
  a
• 10:46
  bigger
• 10:46
  checkbook
• 10:46
  if
• 10:46
  you're
• 10:46
  going
• 10:47
  to
• 10:47
  go
• 10:47
  out
• 10:47
  there
• 10:47
  and
• 10:47
  do
• 10:47
  deals
• 10:48
  there.
• 10:48
  So
• 10:48
  being
• 10:49
  in
• 10:49
  secondary
• 10:49
  or
• 10:49
  tertiary
• 10:50
  markets,
• 10:50
  you
• 10:51
  know,
• 10:51
  you
• 10:51
  know,
• 10:52
  one
• 10:52
  thing
• 10:52
  a
• 10:52
  lot
• 10:52
  of
• 10:52
  people
• 10:52
  don't
• 10:53
  realize
• 10:53
  is
• 10:53
  how
• 10:53
  few
• 10:54
  primary
• 10:54
  markets
• 10:55
  there
• 10:55
  are
• 10:55
  really
• 10:55
  in
• 10:55
  the
• 10:56
  country.
• 10:56
  There's
• 10:56
  maybe
• 10:57
  six
• 10:57
  or
• 10:57
  seven.
• 10:58
  They're
• 10:58
  the
• 10:58
  biggest
• 10:59
  markets
• 10:59
  in
• 10:59
  the
• 10:59
  country.
• 11:00
  Even
• 11:00
  markets
• 11:01
  like
• 11:01
  Charlotte,
• 11:01
  technically
• 11:02
  a
• 11:02
  secondary
• 11:02
  markets.
• 11:03
  And
• 11:03
  there's
• 11:04
  still
• 11:04
  a
• 11:04
  lot
• 11:04
  of
• 11:04
  economic
• 11:05
  growth
• 11:05
  and
• 11:05
  a
• 11:05
  lot
• 11:05
  of
• 11:05
  economic
• 11:06
  diversity
• 11:06
  and
• 11:06
  vibrancy
• 11:07
  that,
• 11:07
  that
• 11:08
  keep
• 11:08
  people
• 11:08
  coming
• 11:09
  to
• 11:09
  these
• 11:09
  markets
• 11:10
  and
• 11:10
  then
• 11:10
  you
• 11:10
  get
• 11:10
  into
• 11:10
  tertiary
• 11:11
  markets.
• 11:11
  I
• 11:11
  mean,
• 11:11
  I
• 11:11
  know
• 11:12
  a
• 11:12
  lot
• 11:12
  of
• 11:12
  people
• 11:13
  right
• 11:13
  now
• 11:13
  and
• 11:13
  even
• 11:13
  over
• 11:14
  the
• 11:14
  last
• 11:14
  year
• 11:14
  or
• 11:14
  two
• 11:15
  that
• 11:15
  have
• 11:15
  really
• 11:15
  been
• 11:16
  focusing
• 11:16
  on
• 11:16
  tertiary
• 11:16
  markets
• 11:17
  because
• 11:17
  there's
• 11:17
  just
• 11:18
  less
• 11:18
  competition
• 11:19
  and
• 11:19
  there's
• 11:19
  good
• 11:20
  and
• 11:20
  bad
• 11:20
  sides
• 11:20
  to
• 11:20
  everything.
• 11:21
  Right.
• 11:21
  So
• 11:21
  you
• 11:21
  have
• 11:21
  to
• 11:22
  figure
• 11:22
  out
• 11:22
  what
• 11:22
  you
• 11:22
  want.
• 11:22
  If
• 11:23
  you
• 11:23
  want
• 11:23
  a
• 11:23
  built
• 11:24
  in
• 11:24
  buyer
• 11:24
  pool,
• 11:24
  then
• 11:24
  you
• 11:25
  go
• 11:25
  invest
• 11:25
  in
• 11:25
  a
• 11:25
  big
• 11:25
  market
• 11:26
  with
• 11:26
  more
• 11:26
  competition.
• 11:27
  If
• 11:27
  you
• 11:28
  want
• 11:28
  a
• 11:28
  deal
• 11:28
  that's
• 11:29
  going
• 11:29
  to
• 11:29
  produce
• 11:29
  a
• 11:29
  little
• 11:29
  bit
• 11:30
  more
• 11:30
  cash
• 11:30
  flow,
• 11:30
  you're
• 11:30
  probably
• 11:30
  better
• 11:31
  off
• 11:31
  in
• 11:31
  a
• 11:31
  tertiary
• 11:31
  market
• 11:32
  because
• 11:32
  you're
• 11:32
  getting
• 11:33
  that
• 11:33
  cash
• 11:33
  flow
• 11:33
  from
• 11:34
  having
• 11:34
  less
• 11:34
  competition
• 11:35
  and
• 11:35
  less,
• 11:35
  you
• 11:35
  know,
• 11:36
  less
• 11:36
  price
• 11:36
  on
• 11:37
  those
• 11:37
  deals.
• 11:37
  But
• 11:38
  the
• 11:38
  downside
• 11:38
  is
• 11:38
  if
• 11:39
  you
• 11:39
  eventually
• 11:39
  go
• 11:39
  to
• 11:39
  sell
• 11:40
  that
• 11:40
  property
• 11:40
  in
• 11:40
  the
• 11:40
  future,
• 11:41
  you're
• 11:41
  still
• 11:41
  going
• 11:41
  to
• 11:41
  have
• 11:42
  less,
• 11:42
  less
• 11:42
  competition.
• 11:43
  So
• 11:43
  in
• 11:43
  the
• 11:44
  same,
• 11:44
  the
• 11:44
  same
• 11:44
  way
• 11:44
  it
• 11:44
  works
• 11:45
  you
• 11:45
  as
• 11:45
  a
• 11:45
  buyer,
• 11:45
  you
• 11:45
  may
• 11:45
  work
• 11:46
  against
• 11:46
  you
• 11:46
  as
• 11:46
  a
• 11:46
  seller.
• 11:47
  So
• 11:47
  just
• 11:47
  Keep
• 11:47
  that
• 11:47
  in
• 11:47
  mind.
• 11:48
  Something
• 11:48
  to
• 11:48
  be
• 11:48
  aware
• 11:48
  of.
• 11:49
  Yeah,
• 11:49
  definitely
• 11:50
  agree.
• 11:50
  Okay,
• 11:50
  so
• 11:50
  myth
• 11:51
  number
• 11:51
  five,
• 11:52
  multifamily
• 11:53
  is
• 11:53
  too
• 11:53
  risky
• 11:54
  for
• 11:54
  new
• 11:54
  investors.
• 11:55
  What
• 11:55
  do
• 11:55
  you
• 11:56
  think
• 11:56
  there
• 11:56
  are.
• 11:56
  I
• 11:57
  love
• 11:57
  multifamily
• 11:58
  because
• 11:58
  of
• 11:58
  scale.
• 11:59
  So
• 12:00
  in
• 12:00
  my
• 12:00
  opinion,
• 12:01
  you
• 12:01
  have
• 12:01
  to
• 12:01
  be
• 12:01
  careful
• 12:02
  of
• 12:02
  vacancy
• 12:02
  rates.
• 12:03
  That's
• 12:03
  what's
• 12:03
  going
• 12:03
  to
• 12:03
  like
• 12:04
  crush
• 12:04
  your
• 12:04
  cash
• 12:04
  flow
• 12:05
  equation.
• 12:05
  So
• 12:05
  I
• 12:06
  think
• 12:06
  that
• 12:06
  multifamily
• 12:07
  allows
• 12:07
  you
• 12:07
  to
• 12:07
  mitigate
• 12:08
  your
• 12:08
  risk
• 12:09
  on
• 12:09
  vacancy.
• 12:10
  You
• 12:10
  know,
• 12:10
  like
• 12:10
  you
• 12:11
  have
• 12:11
  a
• 12:11
  single
• 12:11
  family,
• 12:12
  you
• 12:12
  have
• 12:12
  trouble
• 12:13
  getting
• 12:13
  somebody
• 12:13
  in
• 12:13
  there
• 12:13
  for
• 12:14
  two,
• 12:14
  three
• 12:14
  months.
• 12:14
  That's
• 12:15
  two,
• 12:15
  three
• 12:15
  months
• 12:15
  of
• 12:15
  you
• 12:16
  carrying
• 12:16
  a
• 12:16
  mortgage
• 12:16
  payment
• 12:17
  on
• 12:17
  that
• 12:17
  property
• 12:18
  without
• 12:18
  any
• 12:18
  cash
• 12:18
  flow
• 12:19
  coming
• 12:19
  in.
• 12:19
  And
• 12:19
  that
• 12:20
  can
• 12:20
  be
• 12:20
  extremely
• 12:20
  detrimental
• 12:21
  on
• 12:21
  your
• 12:21
  annual
• 12:22
  operating
• 12:23
  expense,
• 12:23
  so.
• 12:23
  Or
• 12:23
  on
• 12:24
  your
• 12:24
  annual
• 12:24
  P
• 12:24
  L.
• 12:25
  So
• 12:25
  I
• 12:25
  think
• 12:25
  that
• 12:25
  even
• 12:25
  just
• 12:26
  a
• 12:26
  duplex,
• 12:26
  you
• 12:27
  know,
• 12:27
  you
• 12:27
  have
• 12:27
  vacancy
• 12:28
  on
• 12:28
  one
• 12:28
  side
• 12:28
  at
• 12:28
  least
• 12:29
  you
• 12:29
  have
• 12:29
  half
• 12:29
  the
• 12:29
  mortgage
• 12:30
  still
• 12:30
  being
• 12:30
  covered
• 12:30
  or
• 12:31
  more
• 12:31
  so
• 12:31
  I
• 12:32
  think
• 12:32
  that,
• 12:32
  that,
• 12:32
  that
• 12:33
  ability
• 12:33
  to
• 12:33
  scale.
• 12:34
  And
• 12:34
  then
• 12:34
  also
• 12:35
  if
• 12:35
  you
• 12:35
  think
• 12:35
  about
• 12:35
  capital
• 12:36
  expenditures,
• 12:37
  you're
• 12:37
  going
• 12:37
  to
• 12:37
  have
• 12:37
  the
• 12:38
  roof,
• 12:38
  they
• 12:38
  see
• 12:38
  the
• 12:39
  windows
• 12:39
  structural.
• 12:40
  You're
• 12:40
  going
• 12:40
  to
• 12:40
  have
• 12:40
  those
• 12:40
  things
• 12:41
  on
• 12:41
  every
• 12:41
  property
• 12:41
  that
• 12:41
  you
• 12:42
  have
• 12:42
  to
• 12:42
  look
• 12:42
  at.
• 12:42
  And
• 12:43
  I
• 12:43
  love
• 12:43
  the
• 12:44
  idea
• 12:44
  of
• 12:44
  like,
• 12:44
  okay,
• 12:45
  I've,
• 12:45
  I've
• 12:46
  had
• 12:46
  to
• 12:46
  put
• 12:46
  on
• 12:46
  a
• 12:46
  new
• 12:46
  roof,
• 12:47
  but
• 12:47
  it
• 12:47
  covered
• 12:48
  all
• 12:48
  of
• 12:48
  the
• 12:48
  units.
• 12:49
  Right.
• 12:50
  All
• 12:50
  at
• 12:50
  the
• 12:50
  same
• 12:50
  time,
• 12:51
  versus
• 12:51
  like
• 12:52
  a
• 12:52
  portfolio,
• 12:53
  even
• 12:53
  of
• 12:53
  single
• 12:53
  family
• 12:54
  residences.
• 12:54
  I
• 12:55
  put
• 12:55
  the
• 12:55
  roof
• 12:55
  on
• 12:55
  one,
• 12:56
  it
• 12:56
  cost
• 12:56
  X
• 12:57
  amount
• 12:57
  and
• 12:57
  it
• 12:57
  only
• 12:57
  covered
• 12:58
  one
• 12:59
  property
• 12:59
  and
• 13:00
  one
• 13:00
  tenant.
• 13:01
  So
• 13:01
  that
• 13:01
  I
• 13:01
  think
• 13:02
  doing
• 13:02
  things
• 13:02
  at
• 13:02
  scale,
• 13:03
  if
• 13:03
  anything,
• 13:03
  it
• 13:03
  helps
• 13:04
  mitigate
• 13:04
  your
• 13:04
  risk.
• 13:05
  Totally.
• 13:05
  I
• 13:05
  agree
• 13:06
  with
• 13:06
  that.
• 13:06
  Let's,
• 13:07
  let's
• 13:07
  dive
• 13:07
  into
• 13:07
  myth
• 13:07
  number
• 13:08
  six.
• 13:08
  And
• 13:08
  this
• 13:08
  will
• 13:08
  be
• 13:08
  one
• 13:09
  of
• 13:09
  Erica's
• 13:09
  favorites.
• 13:10
  The
• 13:10
  best
• 13:10
  deals
• 13:10
  are
• 13:10
  listed
• 13:11
  on
• 13:11
  the
• 13:11
  mls.
• 13:12
  So
• 13:12
  I
• 13:13
  actually,
• 13:14
  I
• 13:14
  have,
• 13:14
  as
• 13:15
  funny
• 13:15
  as
• 13:15
  this
• 13:15
  is,
• 13:16
  I
• 13:16
  agree
• 13:17
  that
• 13:17
  some
• 13:17
  of
• 13:17
  the
• 13:17
  best
• 13:18
  deals
• 13:18
  are
• 13:18
  actually
• 13:19
  listed
• 13:19
  on
• 13:19
  mls,
• 13:20
  so,
• 13:20
  so
• 13:21
  I've
• 13:21
  done
• 13:21
  a
• 13:21
  lot
• 13:21
  of
• 13:22
  distressed
• 13:22
  properties.
• 13:23
  Right.
• 13:23
  I've
• 13:23
  done
• 13:23
  tax
• 13:23
  foreclosures.
• 13:24
  I've
• 13:24
  dealt
• 13:24
  with
• 13:24
  a
• 13:24
  lot
• 13:25
  of
• 13:25
  title
• 13:25
  issues.
• 13:26
  I've
• 13:26
  dealt
• 13:26
  with
• 13:26
  a
• 13:26
  lot
• 13:27
  when
• 13:27
  it
• 13:27
  comes
• 13:27
  to
• 13:27
  off
• 13:27
  market
• 13:28
  properties.
• 13:28
  And
• 13:29
  what
• 13:29
  I
• 13:29
  have
• 13:29
  found
• 13:29
  is,
• 13:30
  especially
• 13:30
  when
• 13:31
  you're
• 13:31
  getting
• 13:31
  into
• 13:31
  multifamily,
• 13:32
  what
• 13:32
  you
• 13:32
  will
• 13:32
  find
• 13:33
  is
• 13:33
  residential
• 13:34
  agents
• 13:34
  that
• 13:35
  have
• 13:35
  commercial
• 13:35
  multifamily
• 13:36
  properties
• 13:36
  listed
• 13:36
  in
• 13:37
  MLS
• 13:37
  that
• 13:37
  should
• 13:37
  not
• 13:38
  have
• 13:38
  those
• 13:38
  properties
• 13:38
  and
• 13:39
  should
• 13:39
  not
• 13:39
  be
• 13:39
  the
• 13:39
  agent
• 13:39
  on
• 13:40
  those
• 13:40
  properties
• 13:40
  because
• 13:40
  they
• 13:40
  don't
• 13:40
  know
• 13:41
  what
• 13:41
  they're
• 13:41
  doing.
• 13:41
  And
• 13:42
  typically
• 13:42
  if
• 13:42
  I
• 13:42
  find
• 13:43
  something
• 13:43
  like
• 13:43
  that,
• 13:43
  it
• 13:44
  ends
• 13:44
  up
• 13:44
  being
• 13:44
  highly
• 13:45
  negotiable.
• 13:45
  And
• 13:46
  so
• 13:46
  I
• 13:47
  actually,
• 13:47
  I
• 13:48
  have
• 13:48
  a
• 13:48
  partner
• 13:48
  in
• 13:48
  Florida
• 13:49
  that
• 13:49
  even
• 13:50
  acquired
• 13:51
  as
• 13:51
  the
• 13:51
  general
• 13:51
  partner
• 13:52
  a
• 13:52
  $17
• 13:53
  million
• 13:53
  multifamily
• 13:54
  asset.
• 13:53
  120
• 13:55
  doors
• 13:56
  that
• 13:56
  was
• 13:56
  nowhere
• 13:57
  except
• 13:57
  on
• 13:57
  MLS.
• 13:58
  So
• 13:59
  I
• 13:59
  think
• 13:59
  that
• 13:59
  a
• 13:59
  lot
• 13:59
  of
• 14:00
  investors
• 14:00
  go
• 14:00
  off
• 14:00
  market,
• 14:01
  off
• 14:01
  market.
• 14:01
  And
• 14:02
  yes,
• 14:02
  I
• 14:02
  agree
• 14:03
  going
• 14:03
  to
• 14:03
  a
• 14:03
  broker
• 14:04
  like
• 14:04
  myself
• 14:04
  is
• 14:04
  critical
• 14:05
  because
• 14:05
  I
• 14:05
  have
• 14:05
  the
• 14:05
  relationships
• 14:06
  in
• 14:06
  place
• 14:06
  already
• 14:07
  that
• 14:07
  allow
• 14:07
  me
• 14:08
  to
• 14:08
  have
• 14:08
  a
• 14:09
  flow
• 14:09
  of
• 14:09
  off
• 14:10
  market
• 14:10
  properties
• 14:10
  in
• 14:11
  any
• 14:11
  area.
• 14:11
  And
• 14:12
  that
• 14:12
  is
• 14:12
  extremely
• 14:12
  valuable.
• 14:13
  And
• 14:14
  at
• 14:14
  the
• 14:14
  same
• 14:14
  time,
• 14:15
  keep
• 14:15
  in
• 14:15
  mind
• 14:16
  that
• 14:16
  some
• 14:16
  of
• 14:16
  those
• 14:17
  properties
• 14:17
  are
• 14:17
  going
• 14:17
  to
• 14:17
  come
• 14:18
  with
• 14:18
  us
• 14:18
  pulling
• 14:18
  teeth
• 14:19
  to
• 14:19
  get
• 14:19
  documents
• 14:19
  out
• 14:20
  of
• 14:20
  the
• 14:20
  seller.
• 14:20
  Some
• 14:21
  of
• 14:21
  those
• 14:21
  properties
• 14:21
  will
• 14:21
  come
• 14:21
  with
• 14:22
  title
• 14:22
  issues
• 14:22
  that
• 14:22
  they
• 14:23
  did
• 14:23
  not
• 14:23
  disclose
• 14:23
  upfront.
• 14:24
  Right.
• 14:24
  So
• 14:25
  some
• 14:25
  of
• 14:25
  those
• 14:26
  off
• 14:26
  market
• 14:26
  versus
• 14:27
  on
• 14:27
  market,
• 14:27
  like
• 14:28
  I
• 14:28
  find
• 14:28
  great
• 14:29
  deals
• 14:29
  in
• 14:29
  both
• 14:29
  categories,
• 14:30
  honestly.
• 14:31
  So
• 14:31
  it's
• 14:31
  funny
• 14:31
  you
• 14:32
  mentioned
• 14:32
  that.
• 14:32
  I've
• 14:32
  actually
• 14:33
  done
• 14:33
  a
• 14:33
  pretty
• 14:33
  even
• 14:34
  mix
• 14:34
  of
• 14:34
  on
• 14:35
  market
• 14:35
  and
• 14:35
  off
• 14:35
  market
• 14:35
  as
• 14:36
  well.
• 14:36
  And
• 14:36
  I
• 14:36
  don't,
• 14:36
  you
• 14:37
  know,
• 14:37
  I'm
• 14:37
  not
• 14:37
  a
• 14:37
  believer
• 14:37
  that
• 14:37
  a
• 14:37
  deal
• 14:38
  has
• 14:38
  to
• 14:38
  be
• 14:38
  off
• 14:38
  market
• 14:39
  to
• 14:39
  make
• 14:39
  sense,
• 14:39
  but
• 14:39
  I
• 14:39
  think
• 14:40
  there
• 14:40
  are
• 14:40
  certain
• 14:40
  advantages
• 14:41
  to
• 14:41
  both
• 14:41
  in
• 14:42
  my
• 14:42
  experience.
• 14:42
  What
• 14:42
  I've
• 14:43
  always
• 14:43
  found
• 14:43
  is
• 14:43
  that
• 14:44
  a
• 14:44
  deal
• 14:44
  that's
• 14:44
  off
• 14:44
  market
• 14:45
  usually
• 14:45
  has
• 14:46
  more
• 14:46
  hair
• 14:46
  on
• 14:46
  it
• 14:46
  and
• 14:47
  that's
• 14:47
  usually
• 14:47
  the
• 14:47
  reason
• 14:47
  it's
• 14:48
  not
• 14:48
  being
• 14:48
  brought
• 14:48
  to
• 14:48
  market.
• 14:49
  And
• 14:49
  if
• 14:49
  you
• 14:49
  want
• 14:49
  to
• 14:49
  deal
• 14:50
  with
• 14:50
  more
• 14:50
  hair,
• 14:50
  then
• 14:50
  that's
• 14:51
  a
• 14:51
  good
• 14:51
  thing
• 14:51
  because
• 14:52
  those
• 14:52
  can
• 14:52
  be
• 14:52
  more
• 14:53
  attractive
• 14:53
  deals.
• 14:53
  But
• 14:54
  that
• 14:54
  means
• 14:54
  you're
• 14:54
  probably
• 14:54
  going
• 14:54
  to
• 14:54
  have
• 14:55
  more
• 14:55
  heavy
• 14:55
  lifting,
• 14:56
  you're
• 14:56
  probably
• 14:56
  going
• 14:56
  to
• 14:56
  have
• 14:56
  a
• 14:56
  little
• 14:57
  more,
• 14:57
  a
• 14:57
  little
• 14:57
  more
• 14:58
  work
• 14:58
  on
• 14:58
  the
• 14:58
  front
• 14:58
  end.
• 14:59
  But
• 14:59
  because
• 14:59
  of
• 14:59
  that,
• 14:59
  sometimes
• 15:00
  you
• 15:00
  get
• 15:00
  a
• 15:00
  cheaper
• 15:00
  price
• 15:01
  and
• 15:01
  a
• 15:01
  greater
• 15:01
  opportunity.
• 15:02
  You
• 15:03
  know,
• 15:03
  if
• 15:03
  something's
• 15:04
  being
• 15:04
  marketed,
• 15:05
  you
• 15:05
  know,
• 15:05
  the
• 15:05
  way
• 15:05
  I
• 15:05
  kind
• 15:05
  of
• 15:06
  look
• 15:06
  at
• 15:06
  it
• 15:06
  is
• 15:06
  most
• 15:07
  times
• 15:07
  it's,
• 15:07
  it's
• 15:08
  already
• 15:08
  pretty.
• 15:08
  You
• 15:09
  don't
• 15:09
  need
• 15:09
  a
• 15:09
  makeover.
• 15:09
  It's
• 15:10
  something
• 15:10
  that,
• 15:10
  you
• 15:10
  know,
• 15:11
  it's,
• 15:11
  I
• 15:12
  mean,
• 15:12
  yes,
• 15:12
  you
• 15:12
  may
• 15:12
  still
• 15:12
  need
• 15:12
  some
• 15:13
  improvements,
• 15:13
  you
• 15:13
  may
• 15:13
  need
• 15:13
  some
• 15:14
  value
• 15:14
  add,
• 15:15
  opportunity,
• 15:15
  but
• 15:16
  it's
• 15:16
  not
• 15:16
  the
• 15:16
  ugly
• 15:17
  duckling
• 15:17
  of
• 15:17
  the
• 15:17
  bunch.
• 15:17
  The
• 15:17
  off
• 15:18
  market
• 15:18
  ones
• 15:18
  can
• 15:18
  be
• 15:19
  more
• 15:19
  the
• 15:19
  ugly
• 15:19
  ducking,
• 15:20
  but
• 15:20
  also
• 15:20
  the
• 15:20
  opportunity.
• 15:21
  So
• 15:21
  keep
• 15:21
  that
• 15:21
  in
• 15:21
  mind.
• 15:22
  There's
• 15:22
  pros
• 15:22
  and
• 15:22
  cons
• 15:23
  to
• 15:23
  both.
• 15:23
  Sometimes
• 15:24
  you
• 15:24
  want
• 15:24
  the
• 15:24
  nice
• 15:24
  clean
• 15:24
  property.
• 15:25
  One
• 15:25
  of
• 15:25
  the,
• 15:25
  one
• 15:26
  of
• 15:26
  the
• 15:26
  things
• 15:26
  that
• 15:26
  I
• 15:26
  actually
• 15:26
  look
• 15:27
  for
• 15:27
  now
• 15:27
  is
• 15:27
  maybe
• 15:28
  a
• 15:28
  little
• 15:28
  different
• 15:28
  than
• 15:28
  what
• 15:28
  I
• 15:28
  did
• 15:29
  in
• 15:29
  the
• 15:29
  past.
• 15:29
  I
• 15:29
  like
• 15:30
  properties
• 15:30
  that,
• 15:30
  that
• 15:31
  are
• 15:31
  pretty,
• 15:31
  that
• 15:31
  don't
• 15:31
  need
• 15:31
  a
• 15:31
  ton
• 15:32
  of
• 15:32
  work,
• 15:32
  they're
• 15:32
  safer,
• 15:33
  there's
• 15:33
  less
• 15:33
  risk.
• 15:34
  So
• 15:34
  because
• 15:34
  of
• 15:35
  that
• 15:35
  there's
• 15:36
  a
• 15:36
  reason
• 15:36
  to
• 15:36
  look
• 15:36
  at
• 15:37
  those
• 15:37
  deals.
• 15:37
  But
• 15:37
  it's
• 15:38
  all
• 15:38
  in
• 15:38
  perspective
• 15:39
  and
• 15:39
  depending
• 15:39
  on
• 15:39
  what
• 15:39
  fits
• 15:40
  your
• 15:40
  criteria.
• 15:41
  And
• 15:41
  I
• 15:41
  will
• 15:42
  add
• 15:42
  to
• 15:42
  that
• 15:42
  and
• 15:43
  gosh,
• 15:43
  brokers
• 15:44
  would
• 15:44
  shoot
• 15:44
  me
• 15:44
  for
• 15:45
  saying
• 15:45
  this,
• 15:45
  but
• 15:45
  when
• 15:46
  another
• 15:46
  agent
• 15:46
  is
• 15:47
  involved,
• 15:47
  they
• 15:48
  have
• 15:48
  a
• 15:48
  duty
• 15:48
  to
• 15:48
  disclose
• 15:49
  material
• 15:49
  facts.
• 15:50
  And
• 15:50
  if
• 15:50
  something
• 15:50
  is
• 15:51
  found
• 15:51
  on
• 15:51
  that
• 15:51
  property
• 15:51
  that
• 15:52
  was
• 15:52
  not
• 15:52
  properly
• 15:52
  disclosed
• 15:53
  of,
• 15:53
  or
• 15:53
  if
• 15:53
  we
• 15:54
  close
• 15:54
  on
• 15:54
  that
• 15:54
  deal
• 15:54
  and
• 15:54
  something
• 15:55
  goes
• 15:55
  wrong
• 15:55
  that
• 15:55
  should
• 15:56
  not
• 15:56
  have
• 15:56
  gone
• 15:56
  wrong.
• 15:57
  Agents
• 15:57
  carry
• 15:57
  errors
• 15:58
  and
• 15:58
  omissions
• 15:58
  insurance.
• 15:59
  And
• 15:59
  I
• 15:59
  always
• 15:59
  tell
• 16:00
  my
• 16:00
  investors,
• 16:01
  like,
• 16:01
  no,
• 16:01
  we
• 16:01
  don't
• 16:01
  want
• 16:02
  to
• 16:02
  have
• 16:02
  to
• 16:02
  pull
• 16:02
  on
• 16:02
  somebody's
• 16:03
  EO
• 16:03
  insurance,
• 16:04
  but
• 16:04
  if
• 16:04
  there's
• 16:04
  no
• 16:05
  broker
• 16:05
  involved
• 16:05
  on
• 16:06
  the
• 16:06
  other
• 16:06
  side
• 16:06
  and
• 16:07
  the
• 16:07
  seller
• 16:07
  is
• 16:08
  the
• 16:08
  one
• 16:08
  that
• 16:08
  has
• 16:08
  just
• 16:08
  misrepresented
• 16:09
  a
• 16:09
  bunch
• 16:09
  of
• 16:10
  things
• 16:10
  that
• 16:10
  weren't
• 16:10
  discovered
• 16:11
  until
• 16:11
  after
• 16:11
  closing,
• 16:12
  your
• 16:12
  recourse
• 16:13
  is
• 16:13
  to
• 16:13
  sue
• 16:13
  the
• 16:13
  seller.
• 16:14
  And
• 16:15
  that's
• 16:15
  not
• 16:15
  going
• 16:16
  to
• 16:16
  be
• 16:16
  as
• 16:16
  fruitful
• 16:16
  for
• 16:17
  you,
• 16:17
  I
• 16:17
  promise,
• 16:18
  as
• 16:18
  being
• 16:18
  able
• 16:18
  to
• 16:18
  pull
• 16:19
  on
• 16:19
  an
• 16:19
  agent's
• 16:19
  EO
• 16:20
  insurance.
• 16:20
  So
• 16:21
  that
• 16:21
  kind
• 16:21
  of,
• 16:22
  you
• 16:22
  know,
• 16:22
  insurance
• 16:22
  and
• 16:23
  thinking
• 16:23
  through
• 16:23
  those
• 16:23
  things,
• 16:24
  I
• 16:24
  think
• 16:24
  is
• 16:24
  also
• 16:24
  important.
• 16:25
  It
• 16:25
  just
• 16:25
  makes
• 16:25
  for,
• 16:26
  like
• 16:26
  you
• 16:26
  said,
• 16:26
  a
• 16:26
  much
• 16:27
  cleaner,
• 16:27
  smoother
• 16:28
  process
• 16:28
  many
• 16:29
  times.
• 16:29
  Yep.
• 16:30
  Keep
• 16:30
  in
• 16:30
  mind,
• 16:30
  guys,
• 16:30
  I
• 16:31
  know
• 16:31
  we
• 16:31
  have
• 16:31
  different
• 16:31
  listeners
• 16:32
  that
• 16:32
  are
• 16:33
  looking
• 16:33
  for
• 16:33
  different
• 16:33
  deals
• 16:34
  on,
• 16:34
  you
• 16:34
  know,
• 16:35
  on
• 16:35
  the
• 16:35
  show
• 16:35
  here.
• 16:36
  The
• 16:36
  MLS
• 16:36
  is
• 16:36
  really
• 16:37
  more
• 16:37
  for
• 16:37
  the
• 16:37
  residential
• 16:38
  market.
• 16:38
  So
• 16:38
  when
• 16:38
  we're
• 16:38
  using
• 16:38
  that
• 16:39
  acronym,
• 16:39
  you
• 16:39
  know,
• 16:40
  you
• 16:40
  will
• 16:40
  find
• 16:40
  smaller
• 16:41
  multifamily
• 16:41
  properties
• 16:42
  there.
• 16:42
  If
• 16:42
  you're
• 16:42
  looking
• 16:42
  for
• 16:42
  a
• 16:42
  duplex,
• 16:43
  you're
• 16:43
  looking
• 16:43
  for
• 16:43
  a
• 16:43
  four
• 16:44
  plex.
• 16:44
  Yeah,
• 16:44
  the
• 16:45
  MLS
• 16:45
  can
• 16:45
  definitely
• 16:45
  be
• 16:46
  a
• 16:46
  resource.
• 16:46
  Once
• 16:47
  you
• 16:47
  go
• 16:47
  into
• 16:47
  the
• 16:47
  commercial
• 16:48
  side,
• 16:48
  you
• 16:48
  don't
• 16:48
  really
• 16:49
  have
• 16:49
  an
• 16:49
  MLS
• 16:49
  per
• 16:49
  se,
• 16:50
  but
• 16:50
  the
• 16:50
  equivalent
• 16:51
  is
• 16:51
  just
• 16:51
  the.
• 16:51
  The
• 16:51
  on
• 16:51
  market.
• 16:52
  Lazy.
• 16:53
  Yep.
• 16:53
  And
• 16:53
  that's
• 16:54
  also
• 16:54
  why
• 16:54
  it's
• 16:54
  important
• 16:55
  to
• 16:55
  secure
• 16:55
  a
• 16:55
  great
• 16:56
  broker.
• 16:56
  I
• 16:56
  look
• 16:56
  for
• 16:56
  properties
• 16:57
  on
• 16:57
  mls,
• 16:58
  costar,
• 16:59
  crexi,
• 16:59
  Loop
• 17:00
  Net.
• 17:00
  I
• 17:00
  look
• 17:00
  for
• 17:01
  properties
• 17:01
  on
• 17:02
  other
• 17:02
  sites
• 17:02
  that
• 17:03
  I
• 17:03
  actually
• 17:03
  have
• 17:03
  AI
• 17:04
  scraping
• 17:04
  websites
• 17:04
  of
• 17:05
  different
• 17:05
  commercial
• 17:05
  development
• 17:06
  firms.
• 17:06
  So,
• 17:07
  like,
• 17:07
  I
• 17:07
  look
• 17:07
  for
• 17:07
  properties
• 17:08
  through
• 17:08
  a
• 17:08
  variety
• 17:09
  of
• 17:09
  different
• 17:09
  sources
• 17:10
  because
• 17:10
  like
• 17:10
  you
• 17:10
  said,
• 17:11
  there
• 17:11
  isn't
• 17:11
  really
• 17:11
  a
• 17:11
  commercial
• 17:12
  mls.
• 17:12
  So
• 17:12
  especially
• 17:13
  as
• 17:13
  you
• 17:13
  get
• 17:13
  into
• 17:13
  commercial
• 17:14
  multifamily,
• 17:15
  securing
• 17:15
  the
• 17:15
  right
• 17:15
  work
• 17:15
  team,
• 17:16
  including
• 17:16
  a
• 17:16
  great
• 17:16
  broker
• 17:17
  to
• 17:17
  help
• 17:17
  you
• 17:17
  secure
• 17:18
  options
• 17:18
  of
• 17:19
  properties
• 17:19
  is
• 17:19
  really
• 17:19
  important.
• 17:20
  Okay,
• 17:20
  so
• 17:20
  then
• 17:20
  we
• 17:21
  have
• 17:21
  number
• 17:21
  seven.
• 17:21
  You
• 17:22
  have
• 17:22
  to
• 17:22
  be
• 17:22
  hands
• 17:23
  on
• 17:23
  with
• 17:23
  every
• 17:23
  aspect
• 17:24
  of
• 17:24
  the
• 17:24
  investment.
• 17:24
  You
• 17:25
  know,
• 17:25
  as
• 17:25
  somebody
• 17:25
  who's
• 17:26
  a
• 17:26
  control
• 17:26
  freak,
• 17:27
  I
• 17:27
  tend
• 17:27
  to
• 17:27
  be
• 17:28
  pretty
• 17:28
  hands
• 17:28
  on
• 17:28
  with
• 17:28
  most
• 17:29
  things,
• 17:29
  but
• 17:29
  you
• 17:29
  don't
• 17:30
  need
• 17:30
  to
• 17:30
  be.
• 17:30
  And
• 17:30
  there's
• 17:30
  probably
• 17:30
  more
• 17:31
  effective
• 17:31
  ways
• 17:31
  to
• 17:31
  do
• 17:32
  it.
• 17:32
  I'll
• 17:32
  let
• 17:32
  Erica
• 17:32
  talk
• 17:32
  about
• 17:33
  some
• 17:33
  of
• 17:33
  those
• 17:33
  because
• 17:34
  she's
• 17:34
  a
• 17:34
  little
• 17:34
  more,
• 17:34
  you
• 17:35
  know,
• 17:35
  tech
• 17:35
  savvy
• 17:35
  than
• 17:36
  I
• 17:36
  am
• 17:36
  and
• 17:36
  she
• 17:36
  probably
• 17:36
  delegates
• 17:37
  better
• 17:37
  than
• 17:37
  I
• 17:37
  do.
• 17:38
  So,
• 17:38
  Erica,
• 17:38
  what
• 17:38
  do
• 17:39
  you
• 17:39
  find
• 17:39
  effective
• 17:40
  that
• 17:40
  people
• 17:41
  can
• 17:41
  use
• 17:41
  in
• 17:41
  this,
• 17:41
  in.
• 17:42
  This
• 17:42
  area
• 17:42
  for
• 17:43
  being
• 17:43
  a
• 17:43
  little
• 17:44
  bit
• 17:44
  more
• 17:44
  hands
• 17:44
  off
• 17:44
  with
• 17:44
  your
• 17:45
  assets?
• 17:46
  Right.
• 17:46
  So,
• 17:46
  so
• 17:47
  how
• 17:47
  do
• 17:47
  we
• 17:47
  dispel
• 17:48
  the
• 17:48
  myth
• 17:48
  that
• 17:48
  you
• 17:48
  need
• 17:49
  to
• 17:49
  be
• 17:49
  hands
• 17:49
  on
• 17:49
  I
• 17:50
  just
• 17:50
  do
• 17:50
  it
• 17:50
  by
• 17:50
  choice.
• 17:51
  I
• 17:51
  think
• 17:51
  that
• 17:52
  also
• 17:52
  goes
• 17:52
  back
• 17:53
  to
• 17:53
  your
• 17:54
  property
• 17:54
  manager.
• 17:55
  Your
• 17:55
  property
• 17:55
  manager,
• 17:56
  the
• 17:56
  ones
• 17:56
  that
• 17:56
  you're
• 17:56
  interviewing,
• 17:57
  they
• 17:57
  should
• 17:57
  have
• 17:57
  the
• 17:58
  correct
• 17:58
  technology
• 17:59
  systems
• 17:59
  in
• 17:59
  place
• 18:00
  to
• 18:00
  make
• 18:00
  sure
• 18:00
  that
• 18:00
  it's
• 18:00
  a
• 18:01
  smooth
• 18:01
  process
• 18:01
  for
• 18:02
  your
• 18:02
  tenants
• 18:02
  and
• 18:02
  that
• 18:03
  you're
• 18:03
  mitigating
• 18:03
  the
• 18:03
  risk.
• 18:04
  How
• 18:04
  they
• 18:04
  qualify
• 18:05
  those
• 18:05
  tenants
• 18:05
  is
• 18:06
  extremely
• 18:06
  important.
• 18:07
  I
• 18:07
  think
• 18:07
  this,
• 18:08
  yeah,
• 18:08
  it
• 18:08
  really
• 18:08
  goes
• 18:08
  back
• 18:09
  to
• 18:09
  your
• 18:09
  work
• 18:09
  network.
• 18:10
  Those
• 18:10
  are
• 18:10
  the
• 18:10
  people
• 18:11
  that
• 18:11
  are
• 18:11
  going
• 18:11
  to
• 18:11
  make
• 18:11
  this
• 18:11
  easiest
• 18:12
  for
• 18:12
  you.
• 18:12
  Also
• 18:13
  including
• 18:13
  your
• 18:14
  contractor
• 18:14
  and
• 18:14
  your
• 18:14
  handyman.
• 18:15
  There's
• 18:15
  going
• 18:15
  to
• 18:15
  be
• 18:15
  capital
• 18:16
  expenditures
• 18:16
  and
• 18:16
  repairs
• 18:17
  on
• 18:17
  every
• 18:17
  property.
• 18:18
  And
• 18:19
  so
• 18:19
  having
• 18:20
  the
• 18:20
  right
• 18:20
  contractor
• 18:21
  and
• 18:21
  handyman
• 18:22
  to
• 18:22
  mitigate
• 18:23
  that,
• 18:23
  and
• 18:23
  especially
• 18:24
  if
• 18:24
  you're
• 18:24
  doing
• 18:25
  value
• 18:25
  add
• 18:25
  on
• 18:25
  multifamily.
• 18:26
  So
• 18:26
  if
• 18:27
  you
• 18:27
  have
• 18:27
  a
• 18:27
  contractor
• 18:27
  coming
• 18:28
  in
• 18:28
  and
• 18:28
  doing
• 18:28
  value
• 18:29
  add
• 18:29
  and
• 18:29
  doing
• 18:29
  like
• 18:29
  interior
• 18:30
  construction
• 18:31
  on
• 18:31
  each
• 18:31
  unit,
• 18:32
  you
• 18:32
  definitely
• 18:33
  want
• 18:33
  to
• 18:33
  make
• 18:33
  sure
• 18:33
  you
• 18:33
  have
• 18:34
  the
• 18:34
  right
• 18:34
  people
• 18:34
  at
• 18:34
  that
• 18:35
  point.
• 18:35
  Because
• 18:36
  going
• 18:36
  over
• 18:36
  on
• 18:37
  expenses,
• 18:37
  when
• 18:37
  you
• 18:38
  do
• 18:38
  it
• 18:38
  at
• 18:38
  stake
• 18:38
  scale,
• 18:39
  that's
• 18:39
  where
• 18:40
  you
• 18:40
  know
• 18:40
  it
• 18:40
  can
• 18:40
  mess
• 18:40
  up
• 18:41
  your
• 18:41
  entire
• 18:41
  cash
• 18:41
  flow
• 18:42
  equation.
• 18:42
  So
• 18:43
  I
• 18:43
  think
• 18:43
  that
• 18:43
  your
• 18:43
  work
• 18:44
  network
• 18:44
  is
• 18:44
  really,
• 18:45
  really
• 18:45
  important
• 18:45
  to
• 18:46
  making
• 18:46
  sure
• 18:46
  the
• 18:46
  asset
• 18:46
  remains
• 18:47
  hands
• 18:47
  off
• 18:48
  totally.
• 18:48
  And
• 18:48
  another
• 18:49
  way
• 18:49
  to
• 18:49
  do
• 18:49
  it,
• 18:49
  if
• 18:49
  you
• 18:49
  want
• 18:49
  to
• 18:50
  invest
• 18:50
  passively
• 18:50
  now,
• 18:51
  this
• 18:51
  would
• 18:51
  require
• 18:51
  having
• 18:52
  some
• 18:52
  money,
• 18:52
  but
• 18:52
  you
• 18:52
  could
• 18:52
  also
• 18:53
  be
• 18:53
  a
• 18:53
  passive
• 18:53
  investor
• 18:53
  in
• 18:53
  a
• 18:54
  syndication
• 18:54
  deal.
• 18:55
  So
• 18:55
  if
• 18:55
  you
• 18:55
  do
• 18:55
  that,
• 18:55
  you
• 18:55
  know,
• 18:56
  it's
• 18:56
  a
• 18:56
  pretty
• 18:56
  hands
• 18:56
  off
• 18:56
  approach,
• 18:57
  but
• 18:57
  it
• 18:58
  does
• 18:58
  require
• 18:58
  some
• 18:58
  capital.
• 18:59
  So
• 18:59
  it
• 18:59
  depends
• 18:59
  on
• 19:00
  which
• 19:00
  approach
• 19:00
  you
• 19:00
  look.
• 19:01
  Yep,
• 19:01
  myth
• 19:02
  number
• 19:02
  eight,
• 19:02
  this
• 19:03
  is
• 19:03
  probably
• 19:03
  a
• 19:03
  pretty
• 19:03
  easy
• 19:04
  one
• 19:04
  to
• 19:04
  dispel.
• 19:05
  Multifamily
• 19:06
  properties
• 19:06
  don't
• 19:06
  appreciate
• 19:07
  as
• 19:07
  much
• 19:07
  as
• 19:08
  single
• 19:08
  family.
• 19:08
  What
• 19:09
  do
• 19:09
  you
• 19:09
  think
• 19:09
  about
• 19:09
  that,
• 19:09
  Erica?
• 19:10
  So
• 19:11
  I
• 19:11
  agree
• 19:12
  actually
• 19:12
  that
• 19:12
  multifamily
• 19:13
  doesn't
• 19:13
  appreciate
• 19:14
  at
• 19:14
  the
• 19:14
  same
• 19:14
  rate
• 19:15
  as
• 19:15
  single
• 19:15
  family.
• 19:16
  However,
• 19:16
  multifamily,
• 19:17
  based
• 19:18
  on
• 19:18
  the
• 19:18
  age
• 19:18
  of
• 19:18
  the
• 19:19
  building,
• 19:19
  the
• 19:20
  land
• 19:20
  value
• 19:21
  becomes
• 19:21
  significant
• 19:22
  enough
• 19:22
  that
• 19:23
  for
• 19:23
  instance,
• 19:23
  here
• 19:24
  in
• 19:24
  Charlotte
• 19:24
  area,
• 19:24
  like
• 19:25
  in
• 19:25
  south
• 19:25
  Charlotte,
• 19:26
  we're
• 19:26
  about
• 19:26
  to
• 19:26
  tear
• 19:26
  down.
• 19:27
  It's
• 19:27
  like
• 19:27
  a
• 19:28
  almost
• 19:28
  200
• 19:28
  unit
• 19:29
  complex
• 19:29
  that
• 19:29
  was
• 19:30
  built
• 19:30
  in
• 19:30
  1980s
• 19:31
  and
• 19:32
  it's
• 19:32
  going
• 19:32
  to
• 19:32
  be
• 19:32
  torn
• 19:33
  down
• 19:33
  to
• 19:34
  build
• 19:34
  new
• 19:34
  multifamily
• 19:35
  because
• 19:36
  the
• 19:36
  land
• 19:36
  value
• 19:37
  has
• 19:37
  appreciated
• 19:38
  that
• 19:38
  much.
• 19:39
  So
• 19:39
  I
• 19:39
  do
• 19:39
  think
• 19:40
  that
• 19:40
  while
• 19:41
  like
• 19:41
  year
• 19:41
  over
• 19:42
  year,
• 19:42
  multifamily
• 19:43
  might
• 19:43
  not
• 19:43
  appreciate
• 19:44
  on
• 19:44
  the
• 19:44
  same
• 19:44
  trajectory
• 19:45
  as
• 19:45
  single
• 19:45
  family,
• 19:46
  you
• 19:46
  still
• 19:46
  have
• 19:46
  the
• 19:47
  appreciation
• 19:47
  of
• 19:47
  land
• 19:48
  values
• 19:48
  that
• 19:48
  the
• 19:48
  multifamily
• 19:49
  is
• 19:49
  sitting
• 19:49
  on.
• 19:49
  And
• 19:50
  many
• 19:50
  times
• 19:50
  what
• 19:50
  you'll
• 19:51
  find
• 19:51
  is
• 19:51
  after
• 19:51
  a
• 19:51
  certain
• 19:52
  amount
• 19:52
  of
• 19:52
  time
• 19:52
  it
• 19:52
  does
• 19:53
  make
• 19:53
  sense
• 19:53
  to
• 19:53
  tear
• 19:53
  that
• 19:54
  down
• 19:54
  and
• 19:54
  many
• 19:54
  times
• 19:55
  build
• 19:55
  more
• 19:55
  multifamily.
• 19:56
  So
• 19:56
  that's
• 19:57
  what
• 19:57
  I'm
• 19:57
  seeing
• 19:57
  in
• 19:57
  Charlotte
• 19:58
  right
• 19:58
  now.
• 19:58
  You
• 19:58
  know,
• 19:59
  I'm
• 20:00
  actually
• 20:00
  going
• 20:00
  to
• 20:00
  look
• 20:00
  at
• 20:00
  it
• 20:01
  From
• 20:01
  a
• 20:01
  different
• 20:01
  perspective.
• 20:02
  So
• 20:03
  with
• 20:03
  multifamily,
• 20:04
  you
• 20:04
  may
• 20:05
  not
• 20:05
  get
• 20:05
  the
• 20:05
  same
• 20:06
  ROI
• 20:06
  or
• 20:07
  percentage
• 20:07
  return
• 20:07
  that
• 20:07
  you
• 20:07
  would
• 20:08
  with
• 20:08
  single
• 20:08
  family.
• 20:08
  It's
• 20:09
  rare
• 20:09
  that
• 20:09
  you
• 20:09
  will
• 20:10
  actually.
• 20:10
  But
• 20:10
  when
• 20:10
  you
• 20:11
  start
• 20:11
  making
• 20:11
  more
• 20:11
  money
• 20:11
  is
• 20:12
  on
• 20:12
  the
• 20:12
  actual
• 20:12
  dollars.
• 20:13
  And
• 20:13
  obviously
• 20:14
  when
• 20:14
  you're
• 20:14
  dealing
• 20:14
  with
• 20:14
  the
• 20:15
  larger
• 20:15
  property,
• 20:15
  even
• 20:15
  if
• 20:16
  you
• 20:16
  have
• 20:16
  a
• 20:16
  lower
• 20:16
  rate
• 20:16
  of
• 20:16
  return,
• 20:17
  it
• 20:17
  equates
• 20:17
  to
• 20:17
  more
• 20:18
  dollars
• 20:18
  because
• 20:18
  it's
• 20:19
  just
• 20:19
  a
• 20:19
  bigger
• 20:19
  property.
• 20:20
  So
• 20:20
  what's
• 20:21
  the
• 20:21
  difference
• 20:21
  with
• 20:21
  valuations?
• 20:22
  Well,
• 20:22
  single
• 20:23
  family
• 20:23
  is
• 20:23
  driven
• 20:23
  by
• 20:24
  comps
• 20:24
  in
• 20:24
  the
• 20:24
  market.
• 20:25
  Now,
• 20:26
  most
• 20:26
  multifamily
• 20:27
  investors
• 20:27
  do
• 20:27
  look
• 20:27
  at
• 20:28
  comps
• 20:28
  also,
• 20:28
  but
• 20:28
  it's
• 20:29
  not
• 20:29
  the
• 20:29
  only
• 20:29
  driver.
• 20:30
  So
• 20:30
  if
• 20:30
  you're
• 20:30
  looking
• 20:30
  at
• 20:30
  like
• 20:31
  a
• 20:31
  duplex
• 20:31
  or
• 20:31
  a
• 20:31
  triplex,
• 20:32
  then
• 20:32
  comps
• 20:33
  are
• 20:33
  the
• 20:33
  only
• 20:33
  drivers.
• 20:33
  Let
• 20:34
  me
• 20:34
  be
• 20:34
  clear
• 20:34
  on
• 20:34
  that.
• 20:34
  But
• 20:35
  if
• 20:35
  you're
• 20:35
  looking
• 20:35
  at
• 20:36
  a
• 20:36
  20
• 20:36
  or
• 20:37
  50
• 20:37
  or
• 20:37
  100
• 20:37
  unit
• 20:38
  apartment
• 20:38
  building,
• 20:38
  then
• 20:39
  those
• 20:39
  are
• 20:39
  driven
• 20:39
  really
• 20:39
  by
• 20:40
  cap
• 20:40
  rates
• 20:40
  a
• 20:40
  lot
• 20:40
  of
• 20:40
  times.
• 20:41
  And
• 20:41
  they
• 20:41
  are
• 20:42
  driven
• 20:42
  by
• 20:42
  comps
• 20:42
  also,
• 20:43
  but
• 20:43
  just
• 20:43
  as
• 20:43
  much
• 20:43
  by
• 20:44
  income
• 20:44
  and
• 20:44
  by
• 20:44
  cap
• 20:45
  rates.
• 20:45
  One
• 20:45
  of
• 20:46
  the
• 20:46
  things
• 20:46
  that
• 20:46
  happens
• 20:46
  that
• 20:47
  can
• 20:47
  give
• 20:47
  multifamily
• 20:48
  an
• 20:48
  advantage
• 20:49
  or
• 20:49
  also
• 20:49
  a
• 20:49
  disadvantage,
• 20:50
  but
• 20:50
  an
• 20:50
  advantage
• 20:51
  in
• 20:51
  this
• 20:51
  case
• 20:51
  is
• 20:52
  that
• 20:52
  cap
• 20:52
  rates
• 20:53
  can
• 20:53
  change.
• 20:53
  So
• 20:54
  if
• 20:54
  we
• 20:54
  look
• 20:54
  back
• 20:54
  at
• 20:54
  the
• 20:54
  last
• 20:55
  cycle
• 20:55
  was
• 20:56
  a
• 20:56
  lot
• 20:56
  of
• 20:56
  people
• 20:56
  that
• 20:56
  invested
• 20:57
  in
• 20:57
  multifamily
• 20:57
  who
• 20:57
  made
• 20:58
  a
• 20:58
  lot
• 20:58
  of
• 20:58
  money
• 20:58
  because
• 20:59
  cap
• 20:59
  rates
• 20:59
  were
• 20:59
  compressing.
• 21:00
  So
• 21:01
  even
• 21:01
  if
• 21:01
  things
• 21:02
  didn't
• 21:02
  go
• 21:02
  100%
• 21:03
  as
• 21:03
  expected
• 21:04
  with
• 21:04
  the
• 21:04
  operation
• 21:05
  or
• 21:05
  even
• 21:05
  the
• 21:05
  acquisition
• 21:05
  of
• 21:06
  the
• 21:06
  property,
• 21:06
  not
• 21:06
  that
• 21:06
  I'm
• 21:07
  encouraging
• 21:07
  that,
• 21:07
  but
• 21:08
  even
• 21:08
  if
• 21:08
  they
• 21:08
  didn't,
• 21:08
  a
• 21:09
  lot
• 21:09
  of
• 21:09
  people
• 21:09
  still
• 21:09
  made
• 21:09
  money
• 21:10
  because
• 21:10
  cap
• 21:10
  rates
• 21:11
  compressed
• 21:11
  and
• 21:11
  they
• 21:12
  did
• 21:12
  quite
• 21:12
  well.
• 21:12
  You
• 21:12
  know,
• 21:13
  one
• 21:13
  deal
• 21:13
  that
• 21:13
  stands
• 21:14
  out
• 21:14
  to
• 21:14
  me,
• 21:14
  just
• 21:14
  to
• 21:14
  illustrate
• 21:15
  a
• 21:15
  really
• 21:15
  large
• 21:16
  example,
• 21:16
  there
• 21:16
  was
• 21:16
  a
• 21:16
  deal
• 21:17
  I
• 21:17
  was
• 21:17
  looking
• 21:17
  at
• 21:17
  in
• 21:17
  2021.
• 21:19
  I
• 21:19
  was
• 21:19
  a
• 21:19
  deal
• 21:20
  in
• 21:20
  Charlotte,
• 21:20
  pretty
• 21:20
  decent
• 21:21
  area,
• 21:21
  nice
• 21:21
  property,
• 21:22
  and
• 21:22
  like
• 21:23
  a
• 21:23
  300
• 21:23
  unit
• 21:23
  apartment
• 21:24
  complex,
• 21:24
  the
• 21:25
  broker
• 21:25
  that
• 21:25
  was
• 21:25
  listing
• 21:26
  it
• 21:26
  was
• 21:26
  aiming
• 21:27
  to
• 21:27
  get
• 21:27
  somewhere
• 21:27
  around
• 21:28
  $78
• 21:28
  million
• 21:29
  for
• 21:29
  the
• 21:29
  complex.
• 21:29
  They
• 21:30
  actually
• 21:30
  sold
• 21:30
  it
• 21:30
  for
• 21:30
  like
• 21:28
  $91
• 21:30
  million.
• 21:32
  So
• 21:32
  needless
• 21:32
  to
• 21:33
  say,
• 21:33
  I'm
• 21:33
  sure
• 21:33
  that
• 21:34
  the
• 21:34
  seller
• 21:34
  was
• 21:35
  quite
• 21:35
  happy
• 21:35
  with
• 21:35
  that
• 21:35
  return
• 21:36
  because
• 21:36
  it
• 21:36
  probably
• 21:37
  surprised
• 21:37
  even
• 21:37
  the
• 21:38
  broker.
• 21:38
  I
• 21:38
  don't
• 21:38
  think
• 21:38
  they
• 21:39
  expected
• 21:39
  that
• 21:40
  that's
• 21:40
  not
• 21:40
  going
• 21:40
  to
• 21:40
  happen
• 21:41
  in
• 21:41
  every
• 21:41
  deal.
• 21:41
  But
• 21:42
  that's
• 21:42
  just
• 21:42
  an
• 21:42
  example.
• 21:43
  And
• 21:43
  the
• 21:44
  reason
• 21:44
  that
• 21:44
  happens
• 21:44
  is
• 21:44
  because
• 21:45
  one,
• 21:45
  cap
• 21:45
  rates
• 21:46
  compress
• 21:46
  and
• 21:46
  two,
• 21:47
  you
• 21:47
  have
• 21:47
  a
• 21:47
  big
• 21:47
  buyer
• 21:48
  pool.
• 21:48
  So
• 21:49
  when
• 21:49
  you're
• 21:49
  looking
• 21:49
  at,
• 21:49
  you
• 21:50
  know,
• 21:50
  smaller
• 21:50
  multifamily,
• 21:51
  usually
• 21:51
  up
• 21:52
  to
• 21:52
  20
• 21:52
  units
• 21:52
  and
• 21:53
  larger
• 21:53
  multifamily,
• 21:53
  let's
• 21:54
  call
• 21:54
  it
• 21:54
  150
• 21:54
  units
• 21:55
  and
• 21:55
  above,
• 21:55
  you're
• 21:56
  dealing
• 21:56
  with
• 21:56
  big
• 21:56
  buyer
• 21:56
  pools.
• 21:57
  And
• 21:57
  especially
• 21:57
  when
• 21:58
  you
• 21:58
  get
• 21:58
  on
• 21:58
  that
• 21:58
  larger
• 21:58
  side,
• 21:59
  at
• 21:59
  that
• 21:59
  point,
• 21:59
  you
• 21:59
  start
• 21:59
  dealing
• 22:00
  with,
• 22:00
  you
• 22:00
  know,
• 22:00
  a
• 22:00
  lot
• 22:00
  of
• 22:01
  institutional
• 22:01
  players,
• 22:02
  and
• 22:02
  they
• 22:02
  pay
• 22:03
  pretty
• 22:03
  premium
• 22:03
  prices
• 22:04
  on
• 22:04
  things.
• 22:04
  So
• 22:05
  because
• 22:05
  of
• 22:05
  that,
• 22:05
  if
• 22:06
  you're
• 22:06
  selling
• 22:06
  something
• 22:06
  to
• 22:06
  them,
• 22:07
  you
• 22:07
  can
• 22:07
  stand
• 22:08
  to
• 22:08
  the
• 22:08
  benefit
• 22:08
  and
• 22:09
  be
• 22:09
  in
• 22:09
  a
• 22:09
  pretty
• 22:09
  good
• 22:09
  position.
• 22:10
  Yeah,
• 22:10
  that's.
• 22:11
  I
• 22:11
  love
• 22:12
  that.
• 22:12
  Such
• 22:12
  good
• 22:13
  perspective.
• 22:14
  So
• 22:14
  number
• 22:14
  nine,
• 22:15
  multifamily
• 22:15
  investments
• 22:16
  are
• 22:16
  not
• 22:17
  as
• 22:17
  liquid.
• 22:18
  What
• 22:18
  do
• 22:18
  you
• 22:18
  think
• 22:18
  there?
• 22:19
  I
• 22:19
  think
• 22:19
  real
• 22:19
  estate
• 22:20
  in
• 22:20
  general
• 22:20
  is
• 22:20
  not
• 22:20
  as
• 22:21
  liquid
• 22:21
  as
• 22:22
  maybe
• 22:22
  some
• 22:22
  other
• 22:23
  investments
• 22:23
  are.
• 22:24
  However,
• 22:24
  the.
• 22:25
  There's
• 22:25
  pros
• 22:26
  to
• 22:26
  that
• 22:26
  where
• 22:27
  it
• 22:27
  retains
• 22:27
  value,
• 22:28
  in
• 22:28
  my
• 22:28
  opinion,
• 22:28
  better.
• 22:29
  I
• 22:29
  think
• 22:29
  that
• 22:29
  in
• 22:30
  my
• 22:30
  market,
• 22:31
  I
• 22:31
  have.
• 22:32
  So
• 22:32
  I
• 22:32
  am.
• 22:33
  We
• 22:33
  are
• 22:33
  so
• 22:33
  inundated
• 22:34
  and
• 22:34
  saturated
• 22:35
  with
• 22:35
  investors
• 22:36
  for
• 22:36
  multifamily,
• 22:37
  specifically,
• 22:37
  that
• 22:38
  I've
• 22:39
  joked
• 22:39
  over
• 22:39
  the
• 22:39
  years
• 22:40
  that,
• 22:40
  like,
• 22:40
  it's
• 22:40
  not
• 22:41
  real
• 22:41
  estate
• 22:41
  is
• 22:41
  not
• 22:41
  liquid.
• 22:42
  But,
• 22:42
  gosh,
• 22:42
  in
• 22:43
  certain
• 22:43
  markets
• 22:43
  and
• 22:44
  certain
• 22:44
  times,
• 22:44
  it
• 22:44
  definitely
• 22:45
  seems
• 22:45
  like
• 22:45
  it.
• 22:46
  So
• 22:46
  it,
• 22:46
  you
• 22:46
  know,
• 22:47
  a
• 22:47
  multifamily
• 22:47
  asset
• 22:47
  were
• 22:48
  to
• 22:48
  pop
• 22:48
  up
• 22:48
  right
• 22:48
  now
• 22:48
  on
• 22:48
  market,
• 22:49
  I'd
• 22:49
  have
• 22:50
  no
• 22:50
  problem
• 22:50
  getting
• 22:50
  it
• 22:51
  closed
• 22:51
  within
• 22:51
  the
• 22:51
  next
• 22:51
  60
• 22:52
  days,
• 22:52
  no
• 22:52
  matter
• 22:53
  what
• 22:53
  the
• 22:53
  size
• 22:53
  is.
• 22:53
  Even
• 22:54
  so,
• 22:55
  there's.
• 22:55
  Depending
• 22:56
  on
• 22:56
  the
• 22:56
  market,
• 22:56
  depending
• 22:57
  on
• 22:57
  the
• 22:57
  timing
• 22:57
  of
• 22:58
  the
• 22:58
  market,
• 22:58
  real
• 22:59
  estate
• 22:59
  becomes
• 22:59
  much
• 22:59
  more
• 23:00
  liquid.
• 23:00
  And
• 23:01
  right
• 23:01
  now,
• 23:01
  we're
• 23:02
  still
• 23:02
  at
• 23:02
  such
• 23:02
  a
• 23:02
  shortage
• 23:03
  of
• 23:03
  inventory
• 23:04
  nationally
• 23:04
  that
• 23:05
  I
• 23:05
  don't
• 23:05
  see
• 23:05
  that
• 23:06
  changing
• 23:06
  in
• 23:06
  the
• 23:07
  near
• 23:07
  future.
• 23:07
  Awesome.
• 23:08
  And
• 23:08
  then
• 23:08
  we
• 23:09
  have
• 23:09
  our
• 23:09
  last
• 23:10
  one
• 23:10
  here.
• 23:10
  Multifamily
• 23:11
  Myth
• 23:11
  number
• 23:12
  10.
• 23:12
  Multifamily
• 23:13
  investing
• 23:13
  is
• 23:14
  all
• 23:14
  about
• 23:14
  cash
• 23:14
  flow.
• 23:15
  So
• 23:16
  in
• 23:16
  my
• 23:16
  personal
• 23:17
  experience,
• 23:17
  multifamily
• 23:18
  investing
• 23:19
  is
• 23:19
  actually
• 23:19
  more
• 23:19
  about
• 23:19
  mitigating
• 23:20
  taxes.
• 23:21
  So
• 23:21
  when
• 23:22
  you
• 23:22
  get
• 23:22
  to
• 23:22
  a
• 23:22
  point
• 23:23
  that
• 23:23
  you're
• 23:23
  investing
• 23:23
  in
• 23:23
  the
• 23:23
  larger
• 23:24
  multifamily
• 23:24
  assets,
• 23:25
  cash
• 23:25
  flow
• 23:26
  is
• 23:26
  king.
• 23:26
  Obviously,
• 23:27
  cash
• 23:27
  flow
• 23:27
  is
• 23:27
  very,
• 23:27
  very
• 23:28
  important.
• 23:28
  And
• 23:29
  I
• 23:29
  think
• 23:29
  that
• 23:30
  also
• 23:30
  important
• 23:30
  along
• 23:31
  with
• 23:31
  cash
• 23:31
  flow
• 23:31
  is
• 23:32
  the
• 23:32
  potential
• 23:33
  that
• 23:33
  you
• 23:33
  have
• 23:33
  for
• 23:33
  rent
• 23:34
  bump
• 23:34
  per
• 23:34
  door
• 23:35
  that
• 23:35
  will
• 23:35
  lead
• 23:35
  to
• 23:36
  the
• 23:36
  value
• 23:36
  add
• 23:37
  to
• 23:37
  get
• 23:37
  you
• 23:37
  to
• 23:37
  the
• 23:37
  cash
• 23:37
  flow
• 23:38
  that
• 23:38
  you
• 23:38
  actually
• 23:38
  really
• 23:38
  want.
• 23:39
  So
• 23:39
  I
• 23:39
  think
• 23:39
  that's
• 23:40
  really
• 23:40
  important
• 23:40
  to
• 23:40
  look
• 23:41
  at
• 23:41
  right
• 23:41
  now.
• 23:41
  But
• 23:42
  most
• 23:42
  of
• 23:42
  my
• 23:42
  clients
• 23:43
  are
• 23:43
  actually
• 23:43
  purchasing
• 23:43
  multifamily
• 23:44
  to
• 23:44
  mitigate
• 23:45
  their
• 23:45
  taxes,
• 23:46
  do
• 23:46
  a
• 23:46
  cost
• 23:46
  seg
• 23:46
  study
• 23:47
  at
• 23:47
  the
• 23:47
  beginning
• 23:47
  of
• 23:47
  the
• 23:48
  purchase,
• 23:49
  and
• 23:49
  then
• 23:49
  depreciate
• 23:50
  the
• 23:50
  asset
• 23:50
  and
• 23:50
  1031
• 23:51
  money
• 23:51
  into
• 23:51
  the
• 23:52
  next
• 23:52
  one.
• 23:52
  Yeah,
• 23:53
  I
• 23:53
  think
• 23:53
  you
• 23:53
  got
• 23:53
  that
• 23:54
  perspective
• 23:54
  right.
• 23:54
  Cash
• 23:55
  flow
• 23:55
  is
• 23:55
  important
• 23:55
  because
• 23:55
  it
• 23:56
  keeps
• 23:56
  you
• 23:56
  afloat.
• 23:57
  It
• 23:57
  keeps
• 23:57
  the
• 23:58
  bills
• 23:58
  of
• 23:58
  the
• 23:58
  property
• 23:59
  paid.
• 23:59
  It
• 23:59
  keeps
• 24:00
  money
• 24:00
  coming
• 24:00
  in.
• 24:01
  You
• 24:01
  need
• 24:01
  that
• 24:01
  with
• 24:02
  any
• 24:02
  business.
• 24:02
  If
• 24:02
  you're
• 24:02
  running
• 24:03
  cash
• 24:03
  flow
• 24:03
  negative,
• 24:04
  eventually
• 24:04
  you
• 24:04
  got
• 24:04
  to
• 24:04
  have
• 24:04
  a
• 24:05
  problem.
• 24:05
  But
• 24:05
  most
• 24:06
  people
• 24:06
  I
• 24:06
  know
• 24:06
  who
• 24:06
  invest
• 24:07
  in
• 24:07
  apartments
• 24:08
  are
• 24:08
  usually
• 24:08
  doing
• 24:08
  so
• 24:09
  for
• 24:09
  the
• 24:09
  tax
• 24:09
  benefits.
• 24:10
  That's
• 24:10
  a
• 24:10
  big
• 24:10
  one.
• 24:10
  And
• 24:10
  really
• 24:11
  for
• 24:11
  appreciation
• 24:12
  while
• 24:12
  appreciation
• 24:13
  should
• 24:13
  never
• 24:14
  be
• 24:14
  the
• 24:14
  whole
• 24:14
  cake,
• 24:15
  it's
• 24:15
  only
• 24:15
  the
• 24:15
  icing
• 24:15
  on
• 24:16
  the
• 24:16
  cake.
• 24:16
  It's
• 24:16
  a
• 24:16
  big
• 24:16
  piece
• 24:17
  of
• 24:17
  the
• 24:17
  cake
• 24:17
  with
• 24:17
  multi.
• 24:18
  And
• 24:18
  one
• 24:18
  of
• 24:18
  the
• 24:18
  reasons
• 24:19
  that
• 24:19
  there
• 24:19
  is
• 24:19
  such
• 24:19
  a
• 24:19
  big
• 24:20
  buyer
• 24:20
  pool
• 24:20
  is
• 24:21
  post
• 24:21
  pandemic.
• 24:22
  A
• 24:22
  lot
• 24:22
  of
• 24:22
  buyers
• 24:23
  who
• 24:23
  were
• 24:23
  investing
• 24:23
  in
• 24:24
  other
• 24:24
  commercial
• 24:24
  real
• 24:24
  estate
• 24:25
  asset
• 24:25
  classes
• 24:25
  switched
• 24:26
  over
• 24:26
  to
• 24:26
  multifamily
• 24:27
  because
• 24:27
  they
• 24:27
  became
• 24:28
  very
• 24:28
  concerned
• 24:28
  that
• 24:29
  some
• 24:29
  of
• 24:29
  those
• 24:29
  other
• 24:29
  asset
• 24:30
  classes
• 24:30
  weren't
• 24:30
  going
• 24:31
  to
• 24:31
  form
• 24:31
  so
• 24:31
  well.
• 24:32
  And
• 24:32
  as
• 24:32
  many
• 24:33
  of
• 24:33
  them
• 24:33
  shifted,
• 24:34
  a
• 24:34
  lot
• 24:34
  of
• 24:34
  them
• 24:34
  have
• 24:34
  stayed.
• 24:35
  And
• 24:35
  that's
• 24:35
  left
• 24:36
  a
• 24:36
  bigger
• 24:36
  buyer
• 24:36
  pool
• 24:37
  were
• 24:37
  multi
• 24:37
  dealing,
• 24:38
  which
• 24:38
  is
• 24:38
  basically
• 24:38
  driven
• 24:39
  values
• 24:39
  up
• 24:39
  for
• 24:39
  the
• 24:39
  long
• 24:40
  term.
• 24:40
  Yeah,
• 24:41
  absolutely.
• 24:41
  Well,
• 24:42
  guys,
• 24:42
  we
• 24:42
  want
• 24:42
  to
• 24:42
  thank
• 24:43
  you
• 24:43
  very
• 24:43
  much
• 24:43
  for
• 24:43
  joining
• 24:44
  us
• 24:44
  today
• 24:44
  for
• 24:44
  this
• 24:44
  episode,
• 24:45
  and
• 24:45
  we
• 24:46
  appreciate
• 24:46
  you
• 24:46
  listening
• 24:46
  to
• 24:47
  the
• 24:47
  Master
• 24:47
  Passive
• 24:47
  Income
• 24:48
  Multifamily
• 24:48
  Podcast
• 24:49
  until
• 24:49
  next
• 24:49
  time.
• 24:50
  Thanks,
• 24:50
  guys.