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Debunking Multifamily Myths: What Every Investor Needs to Know - MPI Multifamily Commercial Real Estate Investing · Master Passive Income Podcast Network

• 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
  this
• 1:23
  is
• 1:24
  Carl
• 1:24
  Seaman
• 1:24
  here
• 1:25
  with
• 1:25
  Erica
• 1:25
  McDew
• 1:26
  with
• 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
• 1:31
  real
• 1:31
  estate
• 1:31
  success
• 1:31
  guide,
• 1:32
  you
• 1:32
  can
• 1:32
  text
• 1:32
  the
• 1:32
  word
• 1:33
  FREEDOM
• 1:33
  to
• 1:33
  33777.
• 1:35
  Today
• 1:36
  we're
• 1:36
  going
• 1:36
  to
• 1:36
  be
• 1:36
  talking
• 1:36
  about
• 1:37
  a
• 1:37
  really
• 1:37
  fun
• 1:38
  topic,
• 1:38
  and
• 1:39
  that's
• 1:39
  multifamily
• 1:40
  myths.
• 1:41
  There's
• 1:41
  so
• 1:41
  many
• 1:41
  of
• 1:41
  these
• 1:42
  out
• 1:42
  there,
• 1:42
  so
• 1:42
  Erica
• 1:43
  and
• 1:43
  I
• 1:43
  are
• 1:43
  hoping
• 1:43
  to
• 1:44
  debunk
• 1:44
  a
• 1:44
  few
• 1:44
  of
• 1:45
  them
• 1:45
  today.
• 1:49
  Welcome
• 1:49
  to
• 1:49
  the
• 1:50
  Master
• 1:50
  Passive
• 1:50
  Income
• 1:51
  Multifamily
• 1:52
  Podcast
• 1:53
  where
• 1:53
  we
• 1:53
  guide
• 1:53
  you
• 1:53
  to
• 1:54
  invest
• 1:54
  in
• 1:54
  commercial
• 1:55
  real
• 1:55
  estate
• 1:55
  with
• 1:55
  a
• 1:56
  special
• 1:56
  focus
• 1:57
  on
• 1:57
  raising
• 1:57
  money
• 1:58
  from
• 1:58
  others
• 1:59
  to
• 1:59
  buy
• 1:59
  bigger
• 2:00
  and
• 2:00
  better
• 2:00
  deals.
• 2:01
  And
• 2:01
  now,
• 2:01
  here
• 2:01
  are
• 2:02
  your
• 2:02
  hosts,
• 2:02
  Charles
• 2:03
  seaman
• 2:03
  and
• 2:03
  Erica
• 2:04
  McNew.
• 2:08
  These
• 2:08
  myths
• 2:09
  will
• 2:09
  hold
• 2:09
  you
• 2:09
  back
• 2:10
  and
• 2:10
  become
• 2:10
  limiting
• 2:10
  beliefs
• 2:11
  if
• 2:11
  you
• 2:11
  don't
• 2:11
  debunk
• 2:12
  them.
• 2:12
  So
• 2:12
  we're
• 2:13
  here
• 2:13
  to
• 2:13
  help
• 2:13
  you
• 2:13
  get
• 2:13
  through
• 2:13
  the
• 2:14
  limiting
• 2:14
  beliefs
• 2:14
  so
• 2:15
  that
• 2:15
  you
• 2:15
  know
• 2:15
  that
• 2:15
  you
• 2:15
  can
• 2:16
  do
• 2:16
  it
• 2:16
  as
• 2:16
  well.
• 2:17
  Let's
• 2:17
  start
• 2:17
  with
• 2:17
  myth
• 2:18
  number
• 2:18
  one.
• 2:18
  Multifamily
• 2:19
  investing
• 2:20
  is
• 2:20
  only
• 2:21
  for
• 2:21
  the
• 2:21
  wealthy.
• 2:21
  Erica,
• 2:22
  do
• 2:22
  you
• 2:22
  have
• 2:22
  any
• 2:22
  insight
• 2:23
  on
• 2:23
  that?
• 2:23
  I
• 2:24
  do
• 2:24
  not
• 2:24
  think
• 2:24
  so
• 2:24
  at
• 2:25
  all.
• 2:25
  So
• 2:25
  you
• 2:25
  have
• 2:26
  a
• 2:26
  variety
• 2:26
  of
• 2:26
  different
• 2:27
  type
• 2:27
  of
• 2:27
  loans
• 2:28
  out
• 2:28
  there.
• 2:29
  Some
• 2:29
  of
• 2:29
  my
• 2:29
  favorite
• 2:30
  loan
• 2:30
  products
• 2:31
  are
• 2:31
  the
• 2:31
  FHA
• 2:32
  for
• 2:33
  three
• 2:33
  and
• 2:33
  a
• 2:33
  half
• 2:33
  percent
• 2:33
  down,
• 2:34
  where
• 2:34
  you
• 2:34
  can
• 2:34
  buy
• 2:34
  up
• 2:34
  to
• 2:34
  a
• 2:35
  four
• 2:35
  plex,
• 2:35
  live
• 2:36
  in
• 2:36
  one
• 2:36
  unit,
• 2:36
  rent
• 2:37
  out
• 2:37
  the
• 2:37
  other
• 2:37
  three
• 2:37
  and,
• 2:38
  and
• 2:38
  then
• 2:38
  another
• 2:38
  one
• 2:39
  of
• 2:39
  my
• 2:39
  favorite
• 2:39
  loan
• 2:40
  products
• 2:40
  is
• 2:40
  a
• 2:40
  VA
• 2:41
  loan
• 2:41
  for
• 2:41
  our
• 2:41
  veterans.
• 2:42
  Va.
• 2:42
  Many
• 2:43
  people
• 2:43
  don't
• 2:43
  know
• 2:43
  this,
• 2:43
  but
• 2:44
  you
• 2:44
  can
• 2:44
  actually
• 2:44
  purchase
• 2:44
  up
• 2:45
  to
• 2:45
  a
• 2:45
  4
• 2:45
  unit
• 2:45
  with
• 2:46
  your
• 2:46
  VA
• 2:46
  loan
• 2:47
  so
• 2:47
  that
• 2:47
  not
• 2:47
  only
• 2:47
  do
• 2:48
  you
• 2:48
  have
• 2:48
  an
• 2:48
  owner
• 2:48
  occupied
• 2:49
  unit
• 2:49
  in
• 2:49
  your
• 2:49
  primary,
• 2:50
  but
• 2:50
  you
• 2:50
  already
• 2:51
  have
• 2:51
  income
• 2:51
  from
• 2:52
  three
• 2:52
  other
• 2:52
  units.
• 2:53
  So
• 2:53
  the
• 2:53
  FHA
• 2:54
  and
• 2:54
  the
• 2:54
  va,
• 2:55
  the
• 2:55
  VA
• 2:55
  is
• 2:55
  obviously
• 2:55
  no
• 2:56
  money
• 2:56
  down.
• 2:57
  So
• 2:57
  it's
• 2:57
  a
• 2:57
  huge
• 2:58
  bonus
• 2:59
  product
• 2:59
  for
• 2:59
  our,
• 3:00
  for
• 3:00
  our
• 3:00
  veterans
• 3:00
  that
• 3:01
  I
• 3:01
  don't
• 3:01
  see
• 3:01
  enough
• 3:01
  people
• 3:02
  take
• 3:02
  advantage
• 3:02
  of.
• 3:03
  I
• 3:03
  really
• 3:03
  love
• 3:03
  that
• 3:03
  one.
• 3:04
  And
• 3:04
  then
• 3:04
  obviously
• 3:05
  to
• 3:05
  be
• 3:05
  able
• 3:05
  to
• 3:05
  purchase
• 3:05
  a
• 3:06
  fourplex
• 3:06
  with
• 3:06
  three
• 3:07
  and
• 3:07
  a
• 3:07
  half,
• 3:07
  three
• 3:07
  percent
• 3:08
  down,
• 3:08
  that's
• 3:09
  pretty
• 3:09
  significant.
• 3:10
  You
• 3:10
  don't
• 3:10
  need
• 3:10
  to
• 3:10
  be
• 3:10
  wealthy.
• 3:11
  You
• 3:11
  do
• 3:11
  need
• 3:11
  to
• 3:11
  have
• 3:11
  some
• 3:12
  savings.
• 3:12
  So
• 3:13
  keep
• 3:13
  in
• 3:13
  mind,
• 3:13
  guys,
• 3:14
  that's
• 3:14
  definitely
• 3:14
  a
• 3:14
  great
• 3:15
  strategy
• 3:15
  if
• 3:15
  you're
• 3:16
  looking
• 3:16
  to
• 3:16
  go
• 3:16
  out
• 3:16
  there
• 3:16
  and
• 3:16
  do
• 3:16
  a
• 3:17
  house
• 3:17
  hack,
• 3:17
  which
• 3:17
  is
• 3:17
  obviously
• 3:18
  a
• 3:18
  very
• 3:18
  popular
• 3:19
  strategy
• 3:19
  in
• 3:19
  recent
• 3:19
  years.
• 3:20
  You
• 3:20
  know,
• 3:20
  using
• 3:21
  loan
• 3:21
  products
• 3:22
  like
• 3:22
  that,
• 3:22
  like
• 3:22
  the
• 3:22
  VA
• 3:23
  loans,
• 3:23
  if
• 3:23
  you're
• 3:23
  a
• 3:23
  veteran,
• 3:24
  you
• 3:24
  know,
• 3:24
  different
• 3:24
  FHA
• 3:25
  programs,
• 3:25
  those
• 3:25
  can
• 3:25
  be
• 3:26
  great
• 3:26
  resources.
• 3:26
  And
• 3:27
  if
• 3:27
  you
• 3:27
  buy
• 3:27
  a
• 3:27
  fourplex,
• 3:28
  you
• 3:28
  know,
• 3:28
  if
• 3:29
  you
• 3:29
  have
• 3:29
  three
• 3:29
  units
• 3:29
  that
• 3:30
  are
• 3:30
  occupied
• 3:30
  and
• 3:30
  paying
• 3:31
  rent,
• 3:31
  that
• 3:31
  means
• 3:31
  you're
• 3:31
  essentially
• 3:32
  living
• 3:32
  for
• 3:32
  free
• 3:32
  each
• 3:33
  month.
• 3:33
  So
• 3:33
  you
• 3:33
  don't
• 3:33
  have
• 3:33
  a
• 3:33
  housing
• 3:34
  cost.
• 3:34
  And
• 3:34
  that's.
• 3:35
  That
• 3:35
  saves
• 3:35
  for
• 3:35
  most
• 3:36
  people
• 3:36
  a
• 3:36
  lot
• 3:36
  of
• 3:36
  money
• 3:36
  that
• 3:37
  goes
• 3:37
  back
• 3:37
  into
• 3:37
  their
• 3:37
  pocket
• 3:38
  they
• 3:38
  can
• 3:38
  use
• 3:38
  for
• 3:38
  something
• 3:39
  else.
• 3:39
  Absolutely.
• 3:40
  Yeah.
• 3:40
  And
• 3:41
  it
• 3:41
  allows
• 3:41
  people
• 3:42
  that
• 3:42
  have
• 3:42
  been
• 3:42
  diligent
• 3:43
  with
• 3:43
  their
• 3:43
  savings,
• 3:43
  you
• 3:44
  know,
• 3:44
  and
• 3:44
  diligent
• 3:44
  with
• 3:44
  their
• 3:45
  credit,
• 3:45
  that
• 3:45
  allows
• 3:46
  them
• 3:46
  an
• 3:46
  opportunity.
• 3:47
  Say
• 3:47
  it's
• 3:47
  not
• 3:47
  a
• 3:47
  fourplex,
• 3:48
  say
• 3:48
  it's
• 3:48
  just
• 3:48
  a
• 3:48
  duplex.
• 3:49
  That
• 3:50
  cash
• 3:50
  flow
• 3:50
  from
• 3:51
  that
• 3:51
  additional
• 3:51
  unit,
• 3:52
  it
• 3:52
  could
• 3:52
  cover
• 3:52
  half
• 3:53
  your
• 3:53
  mortgage
• 3:53
  on
• 3:53
  the
• 3:53
  property
• 3:54
  or
• 3:54
  more.
• 3:55
  So,
• 3:55
  I
• 3:55
  mean,
• 3:55
  that's
• 3:56
  really
• 3:56
  significant
• 3:57
  to
• 3:57
  have
• 3:57
  that
• 3:57
  type
• 3:57
  of
• 3:58
  debt
• 3:58
  pay
• 3:58
  down
• 3:59
  on
• 3:59
  what
• 3:59
  is
• 3:59
  basically
• 4:00
  your
• 4:00
  primary
• 4:00
  residence.
• 4:01
  So
• 4:01
  a
• 4:01
  lot
• 4:02
  of
• 4:02
  different
• 4:02
  ways.
• 4:02
  It
• 4:03
  doesn't
• 4:03
  mean
• 4:03
  that
• 4:03
  you
• 4:03
  have
• 4:04
  to
• 4:04
  be
• 4:04
  wealthy
• 4:04
  to
• 4:04
  get
• 4:04
  in.
• 4:05
  Okay,
• 4:05
  so
• 4:05
  let's
• 4:05
  go
• 4:06
  on
• 4:06
  to
• 4:06
  myth
• 4:06
  number
• 4:06
  two,
• 4:06
  Erica.
• 4:07
  So
• 4:07
  we
• 4:07
  got
• 4:07
  needing
• 4:08
  prior
• 4:08
  real
• 4:08
  estate
• 4:09
  experience
• 4:09
  to
• 4:09
  invest
• 4:10
  in
• 4:10
  multifamily.
• 4:11
  What's
• 4:11
  the
• 4:11
  reality
• 4:11
  you
• 4:12
  find
• 4:12
  here,
• 4:12
  Erica?
• 4:13
  I
• 4:13
  actually
• 4:14
  find
• 4:14
  that
• 4:15
  you
• 4:15
  don't
• 4:15
  need
• 4:15
  experience.
• 4:17
  You
• 4:17
  do
• 4:17
  need
• 4:17
  to
• 4:18
  find
• 4:18
  people
• 4:18
  that
• 4:18
  have
• 4:19
  experience.
• 4:19
  That's
• 4:20
  the
• 4:20
  key
• 4:20
  there.
• 4:21
  So
• 4:21
  if
• 4:21
  you
• 4:22
  are
• 4:22
  somebody
• 4:22
  that
• 4:22
  doesn't
• 4:22
  have
• 4:23
  experience,
• 4:23
  but
• 4:23
  you
• 4:24
  want
• 4:24
  to
• 4:24
  invest
• 4:24
  in
• 4:24
  multifamily,
• 4:25
  for
• 4:25
  instance,
• 4:25
  you're
• 4:26
  somebody
• 4:26
  that
• 4:26
  can
• 4:26
  find
• 4:27
  opportunities.
• 4:28
  You
• 4:28
  are
• 4:28
  able
• 4:28
  to
• 4:28
  find
• 4:29
  the
• 4:29
  property
• 4:29
  off
• 4:30
  market,
• 4:30
  you're
• 4:30
  able
• 4:31
  to
• 4:31
  negotiate
• 4:32
  with
• 4:32
  the
• 4:32
  seller
• 4:32
  directly.
• 4:33
  You
• 4:33
  have
• 4:33
  an
• 4:33
  opportunity.
• 4:34
  You
• 4:34
  have
• 4:34
  none
• 4:35
  of
• 4:35
  the
• 4:35
  money.
• 4:35
  You
• 4:35
  have
• 4:35
  no
• 4:36
  experience
• 4:36
  at
• 4:36
  all.
• 4:37
  But
• 4:37
  you
• 4:37
  know,
• 4:37
  you
• 4:37
  found
• 4:38
  something.
• 4:38
  It's
• 4:39
  a
• 4:39
  beautiful.
• 4:39
  Part
• 4:40
  of
• 4:40
  why
• 4:40
  I
• 4:40
  encourage
• 4:41
  these
• 4:41
  networking
• 4:41
  events
• 4:42
  so
• 4:42
  much
• 4:42
  is
• 4:43
  because
• 4:43
  by
• 4:43
  the
• 4:43
  time
• 4:43
  you've
• 4:44
  gone
• 4:44
  out
• 4:44
  there
• 4:44
  and
• 4:44
  found
• 4:44
  an
• 4:45
  opportunity,
• 4:45
  should
• 4:46
  you
• 4:46
  have
• 4:46
  created
• 4:46
  the
• 4:46
  right
• 4:47
  network
• 4:47
  around
• 4:47
  you
• 4:47
  of
• 4:47
  people
• 4:48
  that
• 4:48
  do
• 4:48
  have
• 4:48
  the
• 4:48
  experience
• 4:49
  to
• 4:49
  get
• 4:49
  the
• 4:49
  deal
• 4:50
  done,
• 4:50
  that
• 4:50
  can
• 4:51
  be
• 4:51
  your
• 4:51
  outlet
• 4:52
  in
• 4:52
  for
• 4:52
  no
• 4:53
  money,
• 4:53
  down
• 4:53
  for
• 4:53
  no
• 4:54
  money
• 4:54
  in.
• 4:54
  You
• 4:54
  can
• 4:54
  get
• 4:54
  in
• 4:55
  on
• 4:55
  a
• 4:55
  really
• 4:55
  decent
• 4:56
  sized
• 4:56
  project
• 4:57
  just
• 4:57
  by
• 4:57
  being
• 4:57
  the
• 4:57
  one
• 4:57
  that
• 4:57
  found
• 4:58
  the
• 4:58
  opportunity
• 4:59
  that
• 4:59
  doesn't
• 4:59
  require
• 5:00
  any
• 5:00
  experience,
• 5:00
  and
• 5:00
  it
• 5:00
  doesn't
• 5:01
  require
• 5:01
  any
• 5:01
  money.
• 5:02
  Awesome.
• 5:02
  So
• 5:03
  I
• 5:03
  definitely
• 5:03
  agree
• 5:04
  with
• 5:04
  a
• 5:04
  lot
• 5:04
  of
• 5:04
  those
• 5:04
  points.
• 5:05
  You
• 5:05
  know,
• 5:05
  you
• 5:05
  need
• 5:05
  to
• 5:05
  have
• 5:06
  the
• 5:06
  right
• 5:06
  team
• 5:06
  around
• 5:06
  you
• 5:07
  in
• 5:07
  anything,
• 5:07
  right?
• 5:07
  So
• 5:07
  if
• 5:07
  you
• 5:07
  got
• 5:07
  to
• 5:08
  be
• 5:08
  successful,
• 5:08
  you
• 5:08
  got
• 5:08
  to
• 5:09
  figure
• 5:09
  out
• 5:09
  who
• 5:09
  you
• 5:10
  need
• 5:10
  on
• 5:10
  the
• 5:10
  team
• 5:11
  with
• 5:11
  you.
• 5:11
  And
• 5:12
  one
• 5:12
  of
• 5:12
  the
• 5:12
  things
• 5:12
  that's
• 5:13
  going
• 5:13
  to
• 5:13
  be
• 5:13
  key
• 5:13
  there
• 5:13
  is
• 5:13
  understanding
• 5:14
  what
• 5:14
  you're
• 5:15
  good
• 5:15
  at.
• 5:15
  You
• 5:15
  have
• 5:15
  to
• 5:15
  know
• 5:16
  what
• 5:16
  you
• 5:16
  bring
• 5:16
  to
• 5:16
  the
• 5:16
  table,
• 5:17
  what
• 5:17
  makes
• 5:17
  you
• 5:17
  unique,
• 5:18
  why
• 5:18
  people
• 5:18
  want
• 5:19
  to
• 5:19
  work
• 5:19
  with
• 5:19
  you.
• 5:19
  And
• 5:19
  then
• 5:20
  you
• 5:20
  need
• 5:20
  to
• 5:20
  go
• 5:20
  out
• 5:20
  there
• 5:20
  and
• 5:20
  find
• 5:21
  people
• 5:21
  that
• 5:21
  can
• 5:21
  fill
• 5:21
  those
• 5:21
  gaps
• 5:22
  for
• 5:22
  you.
• 5:22
  So
• 5:22
  if
• 5:22
  you
• 5:23
  have
• 5:23
  the
• 5:23
  ability
• 5:24
  to
• 5:24
  go
• 5:24
  out
• 5:24
  there
• 5:24
  and
• 5:24
  source
• 5:24
  deals
• 5:25
  like
• 5:25
  Eric
• 5:25
  is
• 5:25
  saying,
• 5:25
  but
• 5:26
  you
• 5:26
  need
• 5:26
  somebody
• 5:26
  to
• 5:26
  go
• 5:26
  out
• 5:27
  there
• 5:27
  and
• 5:27
  oversee
• 5:28
  management
• 5:28
  or
• 5:29
  Somebody
• 5:29
  to
• 5:29
  oversee
• 5:29
  construction
• 5:30
  or
• 5:30
  somebody
• 5:30
  to
• 5:31
  sign
• 5:31
  on
• 5:31
  a
• 5:32
  loan.
• 5:32
  You
• 5:32
  have
• 5:32
  to
• 5:32
  find
• 5:33
  those
• 5:33
  right
• 5:33
  partners
• 5:33
  to
• 5:34
  fill
• 5:34
  the
• 5:34
  gaps.
• 5:34
  Absolutely.
• 5:35
  Myth
• 5:36
  number
• 5:36
  three,
• 5:36
  managing
• 5:37
  multifamily
• 5:38
  properties
• 5:38
  is
• 5:39
  overwhelming.
• 5:40
  What
• 5:40
  do
• 5:40
  you
• 5:40
  think
• 5:40
  there,
• 5:40
  Erica?
• 5:41
  If
• 5:41
  you
• 5:41
  hire
• 5:41
  the
• 5:42
  property
• 5:42
  management
• 5:43
  company.
• 5:43
  No,
• 5:44
  it
• 5:44
  is
• 5:44
  not.
• 5:44
  And
• 5:45
  that's
• 5:45
  another
• 5:45
  part
• 5:46
  of
• 5:46
  having
• 5:46
  the
• 5:46
  right
• 5:46
  relationships.
• 5:47
  Again,
• 5:48
  one
• 5:48
  of
• 5:48
  my
• 5:48
  favorite
• 5:48
  books
• 5:48
  is
• 5:48
  Millionaire
• 5:49
  Real
• 5:49
  Estate
• 5:49
  Investor.
• 5:50
  It
• 5:50
  really
• 5:51
  goes
• 5:51
  through
• 5:52
  in
• 5:52
  detail
• 5:52
  for
• 5:53
  multiple
• 5:53
  chapters
• 5:54
  on
• 5:54
  how
• 5:54
  to
• 5:54
  build
• 5:54
  the
• 5:54
  right
• 5:55
  work
• 5:55
  network.
• 5:55
  The
• 5:56
  most
• 5:56
  important
• 5:56
  person
• 5:57
  on
• 5:57
  your
• 5:57
  team
• 5:57
  is
• 5:58
  going
• 5:58
  to
• 5:58
  be
• 5:58
  your
• 5:58
  property
• 5:59
  manager.
• 5:59
  I
• 6:00
  can
• 6:00
  vouch
• 6:00
  personally
• 6:01
  as
• 6:01
  a
• 6:01
  real
• 6:01
  estate
• 6:01
  broker
• 6:02
  for
• 6:02
  10
• 6:02
  years
• 6:03
  now
• 6:03
  that
• 6:04
  I
• 6:04
  do
• 6:04
  not
• 6:04
  have
• 6:05
  the
• 6:05
  same
• 6:05
  scope
• 6:06
  of
• 6:06
  knowledge
• 6:06
  as
• 6:07
  a
• 6:07
  property
• 6:07
  manager
• 6:08
  on
• 6:08
  the
• 6:08
  rental
• 6:09
  rates
• 6:09
  of
• 6:09
  a
• 6:09
  certain
• 6:09
  property,
• 6:10
  whether
• 6:10
  or
• 6:10
  not
• 6:10
  it
• 6:11
  can
• 6:11
  rent
• 6:11
  or
• 6:12
  will
• 6:12
  rent.
• 6:12
  Those
• 6:13
  are
• 6:13
  all
• 6:13
  things
• 6:13
  that
• 6:13
  you
• 6:14
  get
• 6:14
  from
• 6:14
  a
• 6:14
  property
• 6:14
  manager.
• 6:15
  So
• 6:15
  that
• 6:15
  relationship
• 6:16
  in
• 6:16
  particular
• 6:17
  is
• 6:18
  critical
• 6:18
  to
• 6:19
  ensuring
• 6:20
  that
• 6:20
  you
• 6:20
  don't
• 6:21
  take
• 6:21
  on
• 6:21
  a
• 6:21
  full
• 6:22
  time
• 6:22
  job,
• 6:23
  but
• 6:23
  rather
• 6:23
  are
• 6:24
  passively
• 6:24
  investing
• 6:25
  in
• 6:25
  real
• 6:25
  estate.
• 6:25
  Yes,
• 6:26
  very
• 6:26
  true.
• 6:26
  One
• 6:27
  thing
• 6:27
  I
• 6:27
  would
• 6:27
  say,
• 6:27
  you
• 6:27
  know,
• 6:28
  kind
• 6:28
  of
• 6:28
  further
• 6:28
  touching
• 6:29
  on
• 6:29
  Erica's
• 6:29
  point.
• 6:29
  You
• 6:30
  know,
• 6:30
  I
• 6:30
  always
• 6:30
  say
• 6:31
  the
• 6:31
  broker
• 6:31
  is
• 6:32
  the
• 6:32
  expert
• 6:32
  on
• 6:32
  anything
• 6:33
  sale
• 6:33
  related.
• 6:33
  That's
• 6:34
  what
• 6:34
  they
• 6:34
  do.
• 6:34
  They
• 6:35
  have
• 6:35
  expertise
• 6:35
  there,
• 6:36
  they
• 6:36
  know
• 6:36
  the
• 6:36
  market,
• 6:36
  they
• 6:36
  know
• 6:37
  what's
• 6:37
  happening.
• 6:37
  The
• 6:38
  property
• 6:38
  manager
• 6:38
  is
• 6:38
  going
• 6:38
  to
• 6:38
  be
• 6:39
  the
• 6:39
  expert
• 6:39
  on
• 6:39
  rental
• 6:40
  items.
• 6:40
  You
• 6:40
  know,
• 6:40
  they,
• 6:41
  they
• 6:41
  know
• 6:41
  what
• 6:42
  a
• 6:42
  property
• 6:42
  can
• 6:42
  rent
• 6:42
  for.
• 6:43
  They
• 6:43
  know
• 6:43
  which
• 6:44
  areas
• 6:44
  you
• 6:44
  might
• 6:44
  not
• 6:44
  want
• 6:45
  to
• 6:45
  be
• 6:45
  in
• 6:45
  because
• 6:45
  maybe
• 6:46
  they're
• 6:46
  rougher
• 6:46
  areas.
• 6:47
  Now
• 6:47
  again,
• 6:47
  different
• 6:48
  people
• 6:48
  want
• 6:48
  different
• 6:48
  things.
• 6:49
  So
• 6:49
  if
• 6:49
  that's
• 6:49
  your
• 6:49
  thing,
• 6:50
  you
• 6:50
  can,
• 6:50
  you
• 6:50
  can
• 6:50
  do
• 6:50
  that.
• 6:51
  You
• 6:51
  just
• 6:51
  got
• 6:51
  to
• 6:51
  make
• 6:51
  sure
• 6:51
  you're
• 6:52
  prepared
• 6:52
  to
• 6:52
  handle
• 6:53
  it.
• 6:53
  You
• 6:53
  know,
• 6:53
  you
• 6:53
  got
• 6:53
  to
• 6:54
  find
• 6:54
  somebody
• 6:54
  who
• 6:54
  specializes
• 6:55
  in
• 6:55
  the
• 6:56
  type
• 6:56
  of
• 6:56
  property
• 6:56
  you're
• 6:57
  looking
• 6:57
  at.
• 6:57
  If
• 6:57
  you're
• 6:58
  going
• 6:58
  out
• 6:58
  and
• 6:58
  you're
• 6:58
  buying
• 6:58
  a
• 6:58
  300
• 6:59
  a
• 6:59
  class
• 7:00
  apartment
• 7:00
  building,
• 7:00
  you're
• 7:01
  not
• 7:01
  going
• 7:01
  to
• 7:01
  be
• 7:01
  using
• 7:01
  a
• 7:02
  property
• 7:02
  manager
• 7:02
  who
• 7:02
  manages,
• 7:03
  you
• 7:03
  know,
• 7:03
  5
• 7:04
  and
• 7:04
  10
• 7:04
  unit
• 7:04
  C
• 7:05
  class
• 7:05
  properties
• 7:05
  because
• 7:05
  that's
• 7:06
  not
• 7:06
  going
• 7:06
  to
• 7:06
  be
• 7:06
  the
• 7:06
  right
• 7:06
  fit.
• 7:07
  So
• 7:07
  you
• 7:07
  need
• 7:08
  somebody
• 7:08
  with
• 7:08
  experience
• 7:09
  and
• 7:09
  expertise
• 7:09
  to
• 7:10
  again,
• 7:10
  fill
• 7:10
  in
• 7:11
  the
• 7:11
  gaps
• 7:11
  that
• 7:11
  you
• 7:11
  might
• 7:11
  not
• 7:12
  have.
• 7:12
  And
• 7:13
  that's
• 7:13
  going
• 7:13
  to
• 7:13
  go
• 7:13
  a
• 7:13
  long
• 7:14
  way
• 7:14
  both
• 7:14
  with
• 7:14
  getting
• 7:15
  approval
• 7:15
  from
• 7:15
  the
• 7:15
  lender
• 7:16
  to
• 7:16
  get
• 7:16
  a
• 7:16
  loan
• 7:17
  for
• 7:17
  the
• 7:17
  property
• 7:17
  and
• 7:17
  also
• 7:18
  to
• 7:18
  actually
• 7:18
  operate
• 7:19
  the
• 7:19
  property
• 7:19
  successfully.
• 7:20
  So
• 7:20
  find
• 7:21
  who
• 7:21
  the
• 7:21
  right
• 7:21
  people
• 7:22
  and
• 7:22
  the
• 7:22
  right
• 7:22
  companies
• 7:22
  are
• 7:23
  that
• 7:23
  you
• 7:23
  need
• 7:23
  to
• 7:23
  be
• 7:23
  working
• 7:23
  with.
• 7:24
  Ask
• 7:24
  other
• 7:24
  investors.
• 7:25
  You
• 7:25
  can
• 7:25
  do
• 7:25
  this
• 7:26
  in
• 7:26
  networking
• 7:26
  events
• 7:27
  and
• 7:27
  you
• 7:27
  could
• 7:27
  also
• 7:27
  just
• 7:27
  do
• 7:28
  simple
• 7:28
  Google
• 7:28
  searches
• 7:29
  and
• 7:29
  figure
• 7:29
  out
• 7:30
  who
• 7:30
  are
• 7:30
  the
• 7:30
  people
• 7:30
  that
• 7:30
  you
• 7:31
  need
• 7:31
  to
• 7:31
  know
• 7:31
  on
• 7:32
  the
• 7:32
  website.
• 7:32
  I
• 7:33
  completely
• 7:33
  agree
• 7:34
  and
• 7:34
  I
• 7:34
  will
• 7:34
  add
• 7:34
  to
• 7:34
  that
• 7:35
  that
• 7:35
  it's
• 7:35
  funny
• 7:35
  that
• 7:36
  sometimes
• 7:36
  I
• 7:36
  will
• 7:36
  actually
• 7:37
  Help
• 7:37
  my
• 7:37
  investors
• 7:38
  find
• 7:38
  their
• 7:39
  buy
• 7:39
  box
• 7:39
  based
• 7:40
  on
• 7:40
  their
• 7:40
  work
• 7:40
  network.
• 7:41
  So
• 7:41
  for
• 7:41
  instance,
• 7:42
  like
• 7:42
  I
• 7:42
  met
• 7:42
  a
• 7:43
  regional
• 7:43
  property
• 7:43
  manager
• 7:44
  or
• 7:44
  a
• 7:45
  company
• 7:45
  that
• 7:45
  does
• 7:45
  a
• 7:46
  large
• 7:46
  property
• 7:46
  management
• 7:47
  company
• 7:47
  out
• 7:47
  of
• 7:47
  it's
• 7:48
  all
• 7:48
  in
• 7:48
  southeastern
• 7:49
  mostly
• 7:49
  Florida
• 7:49
  yesterday.
• 7:50
  And
• 7:50
  he,
• 7:50
  I
• 7:51
  could
• 7:51
  tell
• 7:51
  hearing
• 7:51
  him
• 7:51
  on
• 7:51
  the
• 7:52
  phone,
• 7:52
  I'm
• 7:52
  like,
• 7:52
  this
• 7:52
  is
• 7:53
  somebody
• 7:53
  I
• 7:53
  want
• 7:53
  to
• 7:53
  work
• 7:53
  with.
• 7:54
  And
• 7:54
  I
• 7:55
  turned
• 7:55
  around,
• 7:55
  was
• 7:55
  like,
• 7:55
  hi,
• 7:56
  how
• 7:56
  are
• 7:56
  you?
• 7:57
  And
• 7:57
  got
• 7:57
  his
• 7:57
  information.
• 7:58
  Turns
• 7:58
  out
• 7:58
  he
• 7:58
  was
• 7:59
  not
• 7:59
  one
• 7:59
  of
• 7:59
  the
• 7:59
  companies
• 8:00
  that
• 8:00
  my
• 8:00
  partner
• 8:00
  had
• 8:01
  interviewed
• 8:01
  for
• 8:01
  his
• 8:01
  larger
• 8:02
  assets
• 8:02
  in
• 8:02
  Florida.
• 8:03
  So
• 8:03
  I've
• 8:03
  connected
• 8:03
  them
• 8:04
  now,
• 8:04
  but
• 8:04
  one
• 8:04
  of
• 8:04
  my
• 8:04
  first
• 8:05
  questions
• 8:05
  is
• 8:05
  like,
• 8:06
  what
• 8:06
  will
• 8:06
  you
• 8:06
  manage
• 8:07
  and
• 8:07
  what
• 8:07
  will
• 8:07
  you
• 8:07
  not
• 8:07
  manage?
• 8:08
  Right?
• 8:08
  Because
• 8:09
  some
• 8:09
  the
• 8:09
  thing
• 8:09
  is
• 8:10
  a
• 8:10
  lot
• 8:10
  of
• 8:10
  people
• 8:10
  think,
• 8:10
  okay,
• 8:11
  I'm
• 8:11
  going
• 8:11
  to
• 8:11
  go
• 8:11
  smaller.
• 8:12
  I'm
• 8:12
  going
• 8:12
  to
• 8:12
  purchase
• 8:12
  a
• 8:12
  30
• 8:13
  unit
• 8:13
  instead
• 8:13
  of
• 8:13
  100
• 8:14
  unit.
• 8:14
  For
• 8:14
  instance,
• 8:15
  I'm
• 8:15
  going
• 8:15
  to
• 8:15
  a
• 8:16
  smaller
• 8:16
  because
• 8:16
  it's
• 8:16
  one
• 8:16
  of
• 8:16
  my
• 8:17
  first
• 8:17
  times
• 8:17
  doing
• 8:17
  it.
• 8:17
  And
• 8:18
  I
• 8:18
  encourage
• 8:19
  that.
• 8:19
  That
• 8:19
  can
• 8:20
  be
• 8:20
  a
• 8:20
  really
• 8:20
  great
• 8:20
  strategy
• 8:21
  for
• 8:21
  many
• 8:21
  reasons.
• 8:22
  And
• 8:22
  are
• 8:22
  you
• 8:22
  going
• 8:22
  to
• 8:23
  be
• 8:23
  able
• 8:23
  to
• 8:23
  get
• 8:23
  the
• 8:23
  right
• 8:24
  property
• 8:24
  manager
• 8:24
  that
• 8:25
  you
• 8:25
  actually
• 8:26
  for
• 8:26
  this
• 8:26
  to
• 8:26
  be
• 8:26
  a
• 8:26
  passive
• 8:27
  investment
• 8:27
  on
• 8:28
  a
• 8:28
  30
• 8:28
  unit
• 8:29
  or
• 8:29
  will
• 8:29
  it
• 8:29
  require
• 8:30
  that
• 8:30
  you
• 8:30
  have
• 8:30
  more
• 8:30
  units?
• 8:31
  And
• 8:32
  so
• 8:32
  also
• 8:32
  like
• 8:32
  those
• 8:33
  relationships
• 8:34
  will
• 8:34
  somehow
• 8:35
  sometimes
• 8:35
  kind
• 8:36
  of
• 8:36
  amend
• 8:36
  the
• 8:36
  buy
• 8:37
  box,
• 8:37
  if
• 8:37
  you
• 8:37
  will.
• 8:38
  So
• 8:38
  it's
• 8:39
  knowing
• 8:39
  who
• 8:39
  you're
• 8:39
  going
• 8:39
  to
• 8:39
  be
• 8:39
  working
• 8:40
  with
• 8:40
  ahead
• 8:40
  of
• 8:40
  time,
• 8:40
  being
• 8:41
  proactive
• 8:41
  in
• 8:41
  those
• 8:41
  relationships,
• 8:42
  that's
• 8:42
  part
• 8:42
  of
• 8:43
  why
• 8:43
  it's
• 8:43
  so
• 8:43
  important.
• 8:44
  Oh,
• 8:44
  100%,
• 8:44
  I
• 8:45
  agree.
• 8:45
  Got
• 8:45
  to
• 8:46
  find
• 8:46
  that
• 8:46
  right
• 8:46
  fit.
• 8:46
  Just
• 8:47
  keep
• 8:47
  that
• 8:47
  in
• 8:47
  mind.
• 8:48
  Okay,
• 8:48
  so
• 8:48
  let's
• 8:48
  go
• 8:48
  on
• 8:49
  to
• 8:49
  the
• 8:49
  next
• 8:49
  myth.
• 8:50
  Myth
• 8:50
  number
• 8:50
  four,
• 8:51
  only
• 8:51
  big
• 8:51
  cities
• 8:52
  are
• 8:52
  good
• 8:52
  for
• 8:52
  multifamily
• 8:53
  investing.
• 8:54
  So
• 8:54
  when
• 8:54
  we
• 8:54
  say
• 8:55
  big
• 8:55
  cities,
• 8:55
  that's,
• 8:56
  that's
• 8:56
  a
• 8:56
  pretty
• 8:56
  broad
• 8:57
  term.
• 8:57
  But
• 8:57
  think
• 8:58
  of
• 8:58
  like
• 8:58
  a
• 8:58
  primary
• 8:58
  market,
• 8:59
  like
• 8:59
  a
• 8:59
  New
• 8:59
  York
• 8:59
  or
• 9:00
  Los
• 9:00
  Angeles
• 9:01
  or
• 9:01
  Dallas,
• 9:02
  you
• 9:02
  know,
• 9:02
  big
• 9:03
  markets
• 9:03
  like
• 9:03
  that
• 9:03
  that
• 9:03
  are
• 9:04
  really
• 9:04
  like
• 9:04
  the
• 9:04
  main
• 9:05
  economic
• 9:05
  hubs
• 9:06
  of
• 9:06
  the
• 9:06
  country.
• 9:06
  Do
• 9:06
  you
• 9:07
  agree,
• 9:07
  Erica,
• 9:07
  that
• 9:07
  you
• 9:07
  need
• 9:07
  to
• 9:07
  be
• 9:08
  in
• 9:08
  one
• 9:08
  of
• 9:08
  those
• 9:08
  markets
• 9:08
  to
• 9:09
  be
• 9:09
  doing
• 9:09
  multifamily
• 9:09
  investing?
• 9:10
  I
• 9:10
  agree.
• 9:11
  You're
• 9:11
  absolutely.
• 9:12
  For
• 9:12
  especially
• 9:13
  like
• 9:13
  you
• 9:13
  get
• 9:14
  into
• 9:14
  larger
• 9:14
  multifamily
• 9:15
  assets.
• 9:16
  Part
• 9:16
  of
• 9:17
  when
• 9:17
  I
• 9:17
  went
• 9:17
  to
• 9:17
  start
• 9:18
  into
• 9:18
  multifamily
• 9:19
  last
• 9:20
  year
• 9:20
  in
• 9:20
  March,
• 9:21
  I,
• 9:21
  you
• 9:21
  know,
• 9:22
  first
• 9:22
  thing
• 9:22
  I
• 9:22
  did
• 9:22
  was
• 9:22
  looked
• 9:22
  at
• 9:23
  all
• 9:23
  of
• 9:23
  our
• 9:23
  inventory
• 9:23
  and
• 9:23
  got
• 9:24
  to
• 9:24
  know
• 9:24
  our
• 9:24
  inventory
• 9:24
  at
• 9:24
  a
• 9:25
  high
• 9:25
  level.
• 9:25
  And
• 9:25
  I
• 9:26
  quickly
• 9:26
  realized
• 9:27
  why
• 9:27
  so
• 9:27
  many
• 9:27
  people
• 9:27
  love
• 9:28
  Charlotte,
• 9:28
  North
• 9:28
  Carolina.
• 9:29
  We
• 9:29
  have
• 9:29
  a
• 9:30
  absurd
• 9:30
  amount
• 9:31
  of
• 9:31
  100
• 9:31
  plus
• 9:31
  store
• 9:32
  apartment
• 9:32
  complexes
• 9:32
  that
• 9:33
  you
• 9:33
  can
• 9:33
  purchase.
• 9:33
  And
• 9:34
  not
• 9:34
  all
• 9:34
  markets
• 9:35
  are
• 9:35
  like
• 9:35
  that.
• 9:36
  So
• 9:36
  we're
• 9:36
  very
• 9:36
  fortunate
• 9:37
  to
• 9:37
  be
• 9:37
  in
• 9:37
  a
• 9:37
  market
• 9:37
  like
• 9:38
  Charlotte.
• 9:38
  However,
• 9:39
  when
• 9:39
  it
• 9:39
  comes
• 9:39
  to
• 9:40
  like
• 9:40
  even
• 9:40
  like
• 9:41
  the
• 9:41
  single
• 9:41
  family
• 9:42
  Resident
• 9:42
  opportunities
• 9:43
  that
• 9:43
  you'll
• 9:43
  have.
• 9:43
  Those
• 9:43
  tertiary
• 9:44
  markets
• 9:45
  are
• 9:45
  insane
• 9:45
  sometimes.
• 9:46
  So
• 9:46
  like
• 9:46
  I
• 9:46
  drove
• 9:47
  through
• 9:47
  Mississippi,
• 9:48
  going
• 9:48
  to
• 9:49
  Austin,
• 9:49
  Texas
• 9:50
  three
• 9:50
  times
• 9:50
  in
• 9:50
  2022,
• 9:52
  and
• 9:52
  I
• 9:52
  stopped
• 9:53
  by
• 9:53
  Vicksburg,
• 9:53
  Mississippi
• 9:54
  in
• 9:54
  particular.
• 9:55
  Houses
• 9:55
  were
• 9:56
  $80,000
• 9:57
  a
• 9:57
  piece,
• 9:57
  renting
• 9:58
  at
• 9:58
  almost
• 9:58
  1400
• 9:59
  dollars
• 9:59
  a
• 9:59
  month.
• 10:00
  So
• 10:01
  that's.
• 10:01
  You
• 10:01
  don't
• 10:02
  find
• 10:02
  those
• 10:02
  type
• 10:02
  of
• 10:03
  cap
• 10:03
  rates
• 10:03
  in
• 10:03
  Charlotte,
• 10:04
  North
• 10:04
  Carolina
• 10:04
  right
• 10:04
  now.
• 10:05
  So
• 10:05
  the
• 10:05
  tertiary
• 10:06
  markets,
• 10:06
  secondary
• 10:07
  markets
• 10:07
  are
• 10:08
  amazing
• 10:08
  opportunities,
• 10:09
  but
• 10:10
  depending
• 10:10
  on
• 10:10
  what
• 10:10
  product
• 10:10
  type
• 10:11
  you're
• 10:11
  buying,
• 10:11
  for
• 10:11
  sure.
• 10:12
  Yeah.
• 10:12
  And
• 10:12
  that's
• 10:13
  really
• 10:13
  important.
• 10:13
  You
• 10:13
  have
• 10:13
  to
• 10:13
  know
• 10:14
  the
• 10:14
  market
• 10:14
  and
• 10:14
  know
• 10:14
  what
• 10:14
  you're
• 10:14
  looking
• 10:15
  for.
• 10:15
  So
• 10:15
  different
• 10:16
  markets
• 10:16
  are
• 10:16
  going
• 10:16
  to
• 10:16
  bring
• 10:17
  different
• 10:17
  things.
• 10:17
  Right.
• 10:18
  So
• 10:18
  can
• 10:18
  you
• 10:19
  invest
• 10:19
  in
• 10:19
  a
• 10:19
  primary
• 10:19
  market
• 10:20
  and
• 10:20
  be
• 10:20
  successful?
• 10:21
  Absolutely.
• 10:21
  Most
• 10:22
  times
• 10:22
  those
• 10:22
  markets
• 10:23
  are
• 10:23
  going
• 10:23
  to
• 10:23
  have
• 10:23
  more
• 10:23
  competition.
• 10:24
  That
• 10:24
  means
• 10:24
  they're
• 10:25
  going
• 10:25
  to
• 10:25
  have
• 10:25
  higher
• 10:25
  prices,
• 10:26
  lower
• 10:26
  cap
• 10:26
  rates.
• 10:27
  The
• 10:27
  benefits
• 10:28
  in
• 10:28
  markets
• 10:28
  like
• 10:28
  that
• 10:28
  is
• 10:29
  that
• 10:29
  even
• 10:29
  when
• 10:29
  cycles
• 10:30
  change,
• 10:30
  usually
• 10:30
  they
• 10:31
  don't
• 10:31
  get
• 10:31
  hit
• 10:31
  as
• 10:31
  hard
• 10:32
  as
• 10:32
  some
• 10:32
  smaller
• 10:32
  markets.
• 10:33
  But
• 10:33
  it
• 10:33
  also
• 10:34
  means
• 10:34
  that
• 10:34
  you
• 10:34
  may
• 10:34
  have,
• 10:35
  you
• 10:35
  know,
• 10:35
  a
• 10:35
  lot
• 10:35
  more
• 10:36
  competition
• 10:36
  and
• 10:37
  you
• 10:37
  need
• 10:38
  to
• 10:38
  have
• 10:38
  a
• 10:38
  bigger
• 10:38
  checkbook
• 10:38
  if
• 10:39
  you're
• 10:39
  going
• 10:39
  to
• 10:39
  go
• 10:39
  out
• 10:39
  there
• 10:39
  and
• 10:39
  do
• 10:39
  deals
• 10:40
  there.
• 10:40
  So
• 10:41
  being
• 10:41
  in
• 10:41
  secondary
• 10:41
  or
• 10:42
  tertiary
• 10:42
  markets,
• 10:43
  you
• 10:43
  know,
• 10:43
  you
• 10:44
  know,
• 10:44
  one
• 10:44
  thing
• 10:44
  a
• 10:44
  lot
• 10:44
  of
• 10:44
  people
• 10:45
  don't
• 10:45
  realize
• 10:45
  is
• 10:45
  how
• 10:46
  few
• 10:46
  primary
• 10:47
  markets
• 10:47
  there
• 10:47
  are
• 10:47
  really
• 10:47
  in
• 10:48
  the
• 10:48
  country.
• 10:48
  There's
• 10:48
  maybe
• 10:49
  six
• 10:49
  or
• 10:49
  seven
• 10:50
  there,
• 10:50
  the
• 10:51
  biggest
• 10:51
  markets
• 10:51
  in
• 10:52
  the
• 10:52
  country,
• 10:52
  even
• 10:53
  markets
• 10:53
  like
• 10:53
  Charlotte,
• 10:54
  technically,
• 10:54
  the
• 10:54
  secondary
• 10:55
  markets.
• 10:55
  And
• 10:56
  there's
• 10:56
  still
• 10:56
  a
• 10:56
  lot
• 10:56
  of
• 10:57
  economic
• 10:57
  growth
• 10:57
  and
• 10:57
  a
• 10:57
  lot
• 10:58
  of
• 10:58
  economic
• 10:58
  diversity
• 10:59
  and
• 10:59
  vibrancy
• 10:59
  that,
• 11:00
  that
• 11:00
  keep
• 11:00
  people
• 11:01
  coming
• 11:01
  to
• 11:01
  these
• 11:01
  markets.
• 11:02
  And
• 11:02
  then
• 11:02
  you
• 11:02
  get
• 11:02
  into
• 11:03
  tertiary
• 11:03
  markets.
• 11:03
  I
• 11:03
  mean,
• 11:04
  I
• 11:04
  know
• 11:04
  a
• 11:04
  lot
• 11:04
  of
• 11:04
  people
• 11:05
  right
• 11:05
  now
• 11:05
  and
• 11:06
  even
• 11:06
  over
• 11:06
  the
• 11:06
  last
• 11:06
  year
• 11:06
  or
• 11:07
  two
• 11:07
  that
• 11:07
  have
• 11:07
  really
• 11:08
  been
• 11:08
  focusing
• 11:08
  on
• 11:08
  tertiary
• 11:09
  markets
• 11:09
  because
• 11:09
  there's
• 11:10
  just
• 11:10
  less
• 11:10
  competition
• 11:11
  and
• 11:11
  there's
• 11:12
  good
• 11:12
  and
• 11:12
  bad
• 11:12
  sides
• 11:12
  to
• 11:13
  everything.
• 11:13
  Right.
• 11:13
  So
• 11:13
  you
• 11:14
  have
• 11:14
  to
• 11:14
  figure
• 11:14
  out
• 11:14
  what
• 11:14
  you
• 11:14
  want.
• 11:15
  If
• 11:15
  you
• 11:15
  want
• 11:15
  a
• 11:16
  built
• 11:16
  in
• 11:16
  buyer
• 11:16
  pool,
• 11:17
  then
• 11:17
  you
• 11:17
  go
• 11:17
  invest
• 11:17
  in
• 11:17
  a
• 11:18
  big
• 11:18
  market
• 11:18
  with
• 11:18
  more
• 11:18
  competition.
• 11:19
  If
• 11:20
  you
• 11:20
  want
• 11:20
  a
• 11:20
  deal
• 11:21
  that's
• 11:21
  going
• 11:21
  to
• 11:21
  produce
• 11:21
  a
• 11:21
  little
• 11:22
  bit
• 11:22
  more
• 11:22
  cash
• 11:22
  flow,
• 11:22
  you're
• 11:22
  probably
• 11:23
  better
• 11:23
  off
• 11:23
  in
• 11:23
  a
• 11:23
  tertiary
• 11:24
  market
• 11:24
  because
• 11:24
  you're
• 11:24
  getting
• 11:25
  that
• 11:25
  cash
• 11:25
  flow
• 11:26
  from
• 11:26
  having
• 11:26
  less
• 11:26
  competition
• 11:27
  and
• 11:28
  less
• 11:28
  price
• 11:29
  on
• 11:29
  those
• 11:29
  deals.
• 11:30
  But
• 11:30
  the
• 11:30
  downside
• 11:31
  is
• 11:31
  if
• 11:31
  you
• 11:31
  eventually
• 11:31
  go
• 11:31
  to
• 11:32
  sell
• 11:32
  that
• 11:32
  property
• 11:32
  in
• 11:32
  the
• 11:32
  future,
• 11:33
  you're
• 11:33
  still
• 11:33
  going
• 11:34
  to
• 11:34
  have
• 11:34
  less
• 11:35
  competition.
• 11:35
  So
• 11:36
  the
• 11:36
  same
• 11:36
  way
• 11:37
  it
• 11:37
  worked
• 11:37
  you
• 11:37
  as
• 11:37
  a
• 11:37
  buyer,
• 11:37
  you
• 11:38
  may
• 11:38
  work
• 11:38
  against
• 11:38
  you
• 11:38
  as
• 11:38
  a
• 11:39
  seller.
• 11:39
  So
• 11:39
  just
• 11:39
  keep
• 11:39
  that
• 11:39
  in
• 11:40
  mind,
• 11:40
  something
• 11:40
  to
• 11:40
  be
• 11:40
  aware
• 11:41
  of.
• 11:41
  Yeah,
• 11:41
  definitely.
• 11:42
  Agree.
• 11:42
  Okay,
• 11:43
  so
• 11:43
  myth
• 11:43
  number
• 11:43
  five,
• 11:44
  multifamily
• 11:45
  is
• 11:45
  too
• 11:45
  risky
• 11:46
  for
• 11:46
  new
• 11:46
  investors.
• 11:47
  What
• 11:48
  do
• 11:48
  you
• 11:48
  think
• 11:48
  there
• 11:48
  are?
• 11:49
  I
• 11:49
  love
• 11:49
  multifamily.
• 11:50
  Because
• 11:50
  of
• 11:51
  scale.
• 11:51
  So
• 11:52
  in
• 11:52
  my
• 11:52
  opinion,
• 11:53
  you
• 11:53
  have
• 11:53
  to
• 11:53
  be
• 11:54
  careful
• 11:54
  of
• 11:54
  vacancy
• 11:54
  rates.
• 11:55
  That's
• 11:55
  what's
• 11:55
  going
• 11:55
  to
• 11:56
  like
• 11:56
  crush
• 11:56
  your
• 11:56
  cash
• 11:57
  flow
• 11:57
  equation.
• 11:58
  So
• 11:58
  I
• 11:58
  think
• 11:58
  that
• 11:58
  multifamily
• 11:59
  allows
• 11:59
  you
• 12:00
  to
• 12:00
  mitigate
• 12:00
  your
• 12:01
  risk
• 12:01
  on
• 12:01
  vacancy.
• 12:02
  You
• 12:02
  know,
• 12:02
  like
• 12:03
  you
• 12:03
  have
• 12:03
  a
• 12:03
  single
• 12:03
  family,
• 12:04
  you
• 12:04
  have
• 12:04
  trouble
• 12:05
  getting
• 12:05
  somebody
• 12:05
  in
• 12:05
  there
• 12:06
  for
• 12:06
  two,
• 12:06
  three
• 12:06
  months.
• 12:07
  That's
• 12:07
  two,
• 12:07
  three
• 12:07
  months
• 12:07
  of
• 12:08
  you
• 12:08
  carrying
• 12:08
  a
• 12:08
  mortgage
• 12:09
  payment
• 12:09
  on
• 12:09
  that
• 12:09
  property
• 12:10
  without
• 12:10
  any
• 12:10
  cash
• 12:11
  flow
• 12:11
  coming
• 12:11
  in.
• 12:11
  And
• 12:12
  that
• 12:12
  can
• 12:12
  be
• 12:12
  extremely
• 12:13
  detrimental
• 12:13
  on
• 12:14
  your
• 12:14
  annual
• 12:14
  operating
• 12:15
  expense,
• 12:15
  so,
• 12:15
  or
• 12:16
  on
• 12:16
  your
• 12:16
  annual
• 12:16
  P
• 12:16
  L.
• 12:17
  So
• 12:17
  I
• 12:17
  think
• 12:17
  that
• 12:17
  even
• 12:18
  just
• 12:18
  a
• 12:18
  duplex,
• 12:19
  you
• 12:19
  know,
• 12:19
  you
• 12:19
  have
• 12:19
  vacancy
• 12:20
  on
• 12:20
  one
• 12:20
  side
• 12:20
  at
• 12:21
  least
• 12:21
  you
• 12:21
  have
• 12:21
  half
• 12:21
  the
• 12:21
  mortgage
• 12:22
  still
• 12:22
  being
• 12:22
  covered
• 12:23
  or
• 12:23
  more
• 12:23
  so
• 12:24
  I
• 12:24
  think
• 12:24
  that,
• 12:24
  that,
• 12:25
  that
• 12:25
  ability
• 12:25
  to
• 12:25
  scale.
• 12:26
  And
• 12:26
  then
• 12:26
  also
• 12:27
  if
• 12:27
  you
• 12:27
  think
• 12:27
  about
• 12:28
  capital
• 12:28
  expenditures,
• 12:29
  you're
• 12:29
  going
• 12:29
  to
• 12:29
  have
• 12:30
  the
• 12:30
  roof
• 12:30
  J.C.
• 12:31
  the
• 12:31
  windows,
• 12:31
  structural.
• 12:32
  You're
• 12:32
  going
• 12:32
  to
• 12:32
  have
• 12:33
  those
• 12:33
  things
• 12:33
  on
• 12:33
  every
• 12:33
  property
• 12:34
  that
• 12:34
  you
• 12:34
  have
• 12:34
  to
• 12:34
  look
• 12:34
  at.
• 12:35
  And
• 12:35
  I
• 12:35
  love
• 12:36
  the
• 12:36
  idea
• 12:36
  of
• 12:36
  like,
• 12:37
  okay,
• 12:37
  I've,
• 12:37
  I've
• 12:38
  had
• 12:38
  to
• 12:38
  put
• 12:38
  on
• 12:38
  a
• 12:38
  new
• 12:39
  roof,
• 12:39
  but
• 12:39
  it
• 12:40
  covered
• 12:40
  all
• 12:40
  of
• 12:41
  the
• 12:41
  units.
• 12:41
  Right.
• 12:42
  All
• 12:42
  at
• 12:42
  the
• 12:42
  same
• 12:42
  time,
• 12:43
  versus
• 12:44
  like
• 12:44
  a
• 12:44
  portfolio,
• 12:45
  even
• 12:45
  of
• 12:45
  single
• 12:45
  family
• 12:46
  residences.
• 12:47
  I
• 12:47
  put
• 12:47
  the
• 12:47
  roof
• 12:47
  on
• 12:47
  one,
• 12:48
  it
• 12:48
  cost
• 12:49
  X
• 12:49
  amount
• 12:49
  and
• 12:49
  it
• 12:49
  only
• 12:50
  covered
• 12:50
  one
• 12:51
  property
• 12:51
  and
• 12:52
  one
• 12:52
  tenant.
• 12:53
  So
• 12:53
  that
• 12:53
  I
• 12:54
  think
• 12:54
  doing
• 12:54
  things
• 12:54
  at
• 12:54
  scale,
• 12:55
  if
• 12:55
  anything,
• 12:55
  it
• 12:56
  helps
• 12:56
  mitigate
• 12:56
  your
• 12:57
  risk.
• 12:57
  Totally.
• 12:58
  I
• 12:58
  agree
• 12:58
  with
• 12:58
  that.
• 12:58
  Let's,
• 12:59
  let's
• 12:59
  dive
• 12:59
  into
• 12:59
  myth
• 13:00
  number
• 13:00
  six.
• 13:00
  And
• 13:00
  this
• 13:00
  will
• 13:00
  be
• 13:01
  one
• 13:01
  of
• 13:01
  Erica's
• 13:01
  favorites.
• 13:02
  The
• 13:02
  best
• 13:02
  deals
• 13:03
  are
• 13:03
  listed
• 13:03
  on
• 13:03
  the
• 13:03
  mls.
• 13:04
  So
• 13:05
  I
• 13:05
  actually,
• 13:06
  I
• 13:06
  have,
• 13:07
  as
• 13:07
  funny
• 13:07
  as
• 13:07
  this
• 13:08
  is,
• 13:08
  I
• 13:08
  agree
• 13:09
  that
• 13:09
  some
• 13:09
  of
• 13:10
  the
• 13:10
  best
• 13:10
  deals
• 13:10
  are
• 13:10
  actually
• 13:11
  listed
• 13:11
  on
• 13:11
  mls.
• 13:12
  So,
• 13:12
  so
• 13:13
  I've
• 13:13
  done
• 13:13
  a
• 13:14
  lot
• 13:14
  of
• 13:14
  distressed
• 13:14
  properties,
• 13:15
  right.
• 13:15
  I've
• 13:15
  done
• 13:15
  tax
• 13:16
  foreclosures,
• 13:16
  I've
• 13:16
  dealt
• 13:17
  with
• 13:17
  a
• 13:17
  lot
• 13:17
  of
• 13:17
  title
• 13:17
  issues.
• 13:18
  I've
• 13:18
  dealt
• 13:18
  with
• 13:19
  a
• 13:19
  lot
• 13:19
  when
• 13:19
  it
• 13:19
  comes
• 13:19
  to
• 13:19
  off
• 13:20
  market
• 13:20
  properties.
• 13:20
  And
• 13:21
  what
• 13:21
  I
• 13:21
  have
• 13:21
  found
• 13:22
  is,
• 13:22
  especially
• 13:23
  when
• 13:23
  you're
• 13:23
  getting
• 13:23
  into
• 13:23
  multifamily,
• 13:24
  what
• 13:24
  you
• 13:24
  will
• 13:25
  find
• 13:25
  is
• 13:25
  residential
• 13:26
  agents
• 13:27
  that
• 13:27
  have
• 13:27
  commercial
• 13:27
  multifamily
• 13:28
  properties
• 13:28
  listed
• 13:29
  in
• 13:29
  MLS
• 13:29
  that
• 13:29
  should
• 13:30
  not
• 13:30
  have
• 13:30
  those
• 13:30
  properties
• 13:31
  and
• 13:31
  should
• 13:31
  not
• 13:31
  be
• 13:31
  the
• 13:31
  agent
• 13:32
  on
• 13:32
  those
• 13:32
  properties
• 13:32
  because
• 13:32
  they
• 13:33
  don't
• 13:33
  know
• 13:33
  what
• 13:33
  they're
• 13:33
  doing.
• 13:34
  And
• 13:34
  typically
• 13:34
  if
• 13:34
  I
• 13:34
  find
• 13:35
  something
• 13:35
  like
• 13:35
  that,
• 13:36
  it
• 13:36
  ends
• 13:36
  up
• 13:36
  being
• 13:37
  highly
• 13:37
  negotiable.
• 13:38
  And
• 13:38
  so
• 13:39
  I
• 13:39
  actually,
• 13:40
  I
• 13:40
  have
• 13:40
  a
• 13:40
  partner
• 13:40
  in
• 13:41
  Florida
• 13:41
  that
• 13:41
  even
• 13:42
  acquired
• 13:43
  as
• 13:43
  the
• 13:43
  general
• 13:43
  partner
• 13:44
  a
• 13:44
  $17
• 13:45
  million
• 13:46
  multifamily
• 13:46
  asset.
• 13:45
  120
• 13:48
  doors
• 13:48
  that
• 13:48
  was
• 13:49
  nowhere
• 13:49
  except
• 13:49
  on
• 13:50
  MLS.
• 13:51
  So
• 13:51
  I
• 13:51
  think
• 13:51
  that
• 13:51
  a
• 13:52
  lot
• 13:52
  of
• 13:52
  investors
• 13:52
  go
• 13:53
  off
• 13:53
  market,
• 13:53
  off
• 13:53
  market.
• 13:54
  And
• 13:54
  yes,
• 13:54
  I
• 13:54
  agree
• 13:55
  going
• 13:55
  to
• 13:55
  a
• 13:56
  broker
• 13:56
  like
• 13:56
  myself
• 13:56
  is
• 13:56
  critical
• 13:57
  because
• 13:57
  I
• 13:57
  have
• 13:57
  the
• 13:58
  relationships
• 13:58
  in
• 13:58
  place
• 13:59
  Already
• 13:59
  that
• 14:00
  allow
• 14:00
  me
• 14:00
  to
• 14:00
  have
• 14:00
  a
• 14:01
  flow
• 14:02
  of
• 14:02
  off
• 14:02
  market
• 14:02
  properties
• 14:03
  in
• 14:03
  any
• 14:03
  area
• 14:04
  and
• 14:04
  that
• 14:04
  is
• 14:04
  extremely
• 14:05
  valuable.
• 14:05
  And
• 14:06
  at
• 14:06
  the
• 14:06
  same
• 14:07
  time,
• 14:07
  keep
• 14:07
  in
• 14:07
  mind
• 14:08
  that
• 14:08
  some
• 14:08
  of
• 14:09
  those
• 14:09
  properties
• 14:09
  are
• 14:09
  going
• 14:10
  to
• 14:10
  come
• 14:10
  with
• 14:10
  us
• 14:10
  pulling
• 14:11
  teeth
• 14:11
  to
• 14:11
  get
• 14:11
  documents
• 14:12
  out
• 14:12
  of
• 14:12
  the
• 14:12
  seller.
• 14:13
  Some
• 14:13
  of
• 14:13
  those
• 14:13
  properties
• 14:13
  will
• 14:14
  come
• 14:14
  with
• 14:14
  title
• 14:14
  issues
• 14:14
  that
• 14:15
  they
• 14:15
  did
• 14:15
  not
• 14:15
  disclose
• 14:15
  upfront.
• 14:16
  Right.
• 14:17
  So
• 14:17
  some
• 14:17
  of
• 14:17
  those
• 14:18
  off
• 14:18
  market
• 14:19
  versus
• 14:19
  on
• 14:19
  market,
• 14:20
  like
• 14:20
  I
• 14:20
  find
• 14:21
  great
• 14:21
  deals
• 14:21
  in
• 14:21
  both
• 14:21
  categories,
• 14:22
  honestly.
• 14:23
  So
• 14:23
  it's
• 14:23
  funny
• 14:24
  you
• 14:24
  mentioned
• 14:24
  that.
• 14:24
  I've
• 14:25
  actually
• 14:25
  done
• 14:25
  a
• 14:25
  pretty
• 14:25
  even
• 14:26
  mix
• 14:26
  of
• 14:27
  on
• 14:27
  market
• 14:27
  and
• 14:27
  off
• 14:27
  market
• 14:28
  as
• 14:28
  well.
• 14:28
  And
• 14:28
  I
• 14:28
  don't,
• 14:29
  you
• 14:29
  know,
• 14:29
  I'm
• 14:29
  not
• 14:29
  a
• 14:29
  believer
• 14:29
  that
• 14:30
  a
• 14:30
  deal
• 14:30
  has
• 14:30
  to
• 14:30
  be
• 14:30
  off
• 14:31
  market
• 14:31
  to
• 14:31
  make
• 14:31
  sense,
• 14:31
  but
• 14:32
  I
• 14:32
  think
• 14:32
  there
• 14:32
  are
• 14:32
  certain
• 14:32
  advantages
• 14:33
  to
• 14:33
  both
• 14:34
  in
• 14:34
  my
• 14:34
  experience.
• 14:34
  What
• 14:35
  I've
• 14:35
  always
• 14:35
  found
• 14:35
  is
• 14:35
  that
• 14:36
  a
• 14:36
  deal
• 14:36
  that's
• 14:36
  off
• 14:37
  market
• 14:37
  usually
• 14:38
  has
• 14:38
  more
• 14:38
  hair
• 14:38
  on
• 14:38
  it
• 14:39
  and
• 14:39
  that's
• 14:39
  usually
• 14:39
  the
• 14:39
  reason
• 14:40
  it's
• 14:40
  not
• 14:40
  being
• 14:40
  brought
• 14:41
  to
• 14:41
  market.
• 14:41
  And
• 14:41
  if
• 14:41
  you
• 14:41
  want
• 14:41
  to
• 14:42
  deal
• 14:42
  with
• 14:42
  more
• 14:42
  hair,
• 14:42
  then
• 14:43
  that's
• 14:43
  a
• 14:43
  good
• 14:43
  thing
• 14:44
  because
• 14:44
  those
• 14:44
  can
• 14:45
  be
• 14:45
  more
• 14:45
  attractive
• 14:45
  deals.
• 14:46
  But
• 14:46
  that
• 14:46
  means
• 14:46
  you're
• 14:46
  probably
• 14:47
  going
• 14:47
  to
• 14:47
  have
• 14:47
  more
• 14:47
  heavy
• 14:47
  lifting,
• 14:48
  you're
• 14:48
  probably
• 14:48
  going
• 14:48
  to
• 14:48
  have
• 14:49
  a
• 14:49
  little
• 14:49
  more,
• 14:49
  a
• 14:49
  little
• 14:50
  more
• 14:50
  work
• 14:50
  on
• 14:50
  the
• 14:50
  front
• 14:51
  end.
• 14:51
  But
• 14:51
  because
• 14:51
  of
• 14:51
  that,
• 14:52
  sometimes
• 14:52
  you
• 14:52
  get
• 14:52
  a
• 14:52
  cheaper
• 14:53
  price
• 14:53
  and
• 14:53
  a
• 14:53
  greater
• 14:54
  opportunity.
• 14:54
  You
• 14:55
  know,
• 14:55
  if
• 14:55
  something's
• 14:56
  being
• 14:56
  marketed,
• 14:57
  you
• 14:57
  know,
• 14:57
  the
• 14:57
  way
• 14:57
  I
• 14:58
  kind
• 14:58
  of
• 14:58
  look
• 14:58
  at
• 14:58
  it
• 14:58
  is
• 14:59
  most
• 14:59
  times
• 14:59
  it's,
• 14:59
  it's
• 15:00
  already
• 15:00
  pretty.
• 15:01
  You
• 15:01
  don't
• 15:01
  need
• 15:01
  a
• 15:01
  makeover.
• 15:02
  It's
• 15:02
  something
• 15:02
  that,
• 15:02
  you
• 15:03
  know,
• 15:03
  it's,
• 15:04
  I
• 15:04
  mean,
• 15:04
  yes,
• 15:04
  you
• 15:04
  may
• 15:04
  still
• 15:05
  need
• 15:05
  some
• 15:05
  improvements,
• 15:05
  you
• 15:05
  may
• 15:05
  need
• 15:06
  some
• 15:06
  value
• 15:06
  add,
• 15:07
  opportunity,
• 15:08
  but
• 15:08
  it's
• 15:08
  not
• 15:08
  the
• 15:08
  ugly
• 15:09
  duckling
• 15:09
  in
• 15:09
  the
• 15:09
  bunch.
• 15:09
  The
• 15:10
  off
• 15:10
  market
• 15:10
  ones
• 15:10
  can
• 15:10
  be
• 15:11
  more
• 15:11
  the
• 15:11
  ugly
• 15:11
  ducking
• 15:12
  but
• 15:12
  also
• 15:12
  the
• 15:13
  opportunity.
• 15:13
  So
• 15:13
  keep
• 15:13
  that
• 15:13
  in
• 15:14
  mind.
• 15:14
  There's
• 15:14
  pros
• 15:14
  and
• 15:15
  cons
• 15:15
  to
• 15:15
  both.
• 15:15
  Sometimes
• 15:16
  you
• 15:16
  want
• 15:16
  the
• 15:16
  nice
• 15:16
  clean
• 15:17
  property.
• 15:17
  One
• 15:17
  of
• 15:17
  the,
• 15:18
  one
• 15:18
  of
• 15:18
  the
• 15:18
  things
• 15:18
  that
• 15:18
  I
• 15:18
  actually
• 15:19
  look
• 15:19
  for
• 15:19
  now
• 15:19
  is
• 15:20
  maybe
• 15:20
  a
• 15:20
  little
• 15:20
  different
• 15:20
  than
• 15:20
  what
• 15:21
  I
• 15:21
  did
• 15:21
  in
• 15:21
  the
• 15:21
  past.
• 15:21
  I
• 15:22
  like
• 15:22
  properties
• 15:22
  that,
• 15:23
  that
• 15:23
  are
• 15:23
  pretty,
• 15:23
  that
• 15:23
  don't
• 15:23
  need
• 15:24
  a
• 15:24
  ton
• 15:24
  of
• 15:24
  work,
• 15:24
  they're
• 15:24
  safer,
• 15:25
  there's
• 15:25
  less
• 15:26
  risk.
• 15:26
  So
• 15:26
  because
• 15:27
  of
• 15:27
  that
• 15:27
  there's
• 15:28
  a
• 15:28
  reason
• 15:28
  to
• 15:29
  look
• 15:29
  at
• 15:29
  those
• 15:29
  deals.
• 15:29
  But
• 15:30
  it's
• 15:30
  all
• 15:30
  in
• 15:30
  perspective
• 15:31
  and
• 15:31
  depending
• 15:31
  on
• 15:31
  what
• 15:32
  fits
• 15:32
  your
• 15:32
  criteria.
• 15:33
  And
• 15:33
  I
• 15:34
  will
• 15:34
  add
• 15:34
  to
• 15:34
  that
• 15:35
  and
• 15:35
  gosh,
• 15:36
  brokers
• 15:36
  would
• 15:36
  shoot
• 15:36
  me
• 15:37
  for
• 15:37
  saying
• 15:37
  this,
• 15:37
  but
• 15:38
  when
• 15:38
  another
• 15:38
  agent
• 15:39
  is
• 15:39
  involved,
• 15:40
  they
• 15:40
  have
• 15:40
  a
• 15:40
  duty
• 15:40
  to
• 15:41
  disclose
• 15:41
  material
• 15:42
  facts.
• 15:42
  And
• 15:42
  if
• 15:42
  something
• 15:43
  is
• 15:43
  found
• 15:43
  on
• 15:43
  that
• 15:43
  property
• 15:44
  that
• 15:44
  was
• 15:44
  not
• 15:44
  properly
• 15:45
  disclosed
• 15:45
  of,
• 15:45
  or
• 15:46
  if
• 15:46
  we
• 15:46
  close
• 15:46
  on
• 15:46
  that
• 15:46
  deal
• 15:47
  and
• 15:47
  something
• 15:47
  goes
• 15:47
  wrong
• 15:47
  that
• 15:48
  should
• 15:48
  not
• 15:48
  have
• 15:48
  gone
• 15:48
  wrong.
• 15:49
  Agents
• 15:49
  carry
• 15:50
  errors
• 15:50
  and
• 15:50
  emissions
• 15:50
  insurance.
• 15:51
  And
• 15:51
  I
• 15:51
  always
• 15:52
  tell
• 15:52
  My
• 15:52
  investors,
• 15:53
  like,
• 15:53
  no,
• 15:53
  we
• 15:54
  don't
• 15:54
  want
• 15:54
  to
• 15:54
  have
• 15:54
  to
• 15:54
  pull
• 15:55
  on
• 15:55
  somebody's
• 15:55
  EO
• 15:55
  insurance.
• 15:56
  But
• 15:56
  if
• 15:56
  there's
• 15:57
  no
• 15:57
  broker
• 15:57
  involved
• 15:58
  on
• 15:58
  the
• 15:58
  other
• 15:58
  side,
• 15:59
  and
• 15:59
  the
• 15:59
  seller
• 16:00
  is
• 16:00
  the
• 16:00
  one
• 16:00
  that
• 16:00
  has
• 16:00
  just
• 16:01
  misrepresented
• 16:01
  a
• 16:01
  bunch
• 16:02
  of
• 16:02
  things
• 16:02
  that
• 16:02
  weren't
• 16:02
  discovered
• 16:03
  until
• 16:03
  after
• 16:03
  closing,
• 16:04
  your
• 16:04
  recourse
• 16:05
  is
• 16:05
  to
• 16:05
  sue
• 16:05
  the
• 16:06
  seller.
• 16:06
  And
• 16:07
  that's
• 16:07
  not
• 16:08
  going
• 16:08
  to
• 16:08
  be
• 16:08
  as
• 16:08
  fruitful
• 16:09
  for
• 16:09
  you,
• 16:09
  I
• 16:09
  promise,
• 16:10
  as
• 16:10
  being
• 16:10
  able
• 16:10
  to
• 16:11
  pull
• 16:11
  on
• 16:11
  an
• 16:11
  agent's
• 16:11
  EO
• 16:12
  insurance.
• 16:13
  So
• 16:13
  that
• 16:13
  kind
• 16:14
  of,
• 16:14
  you
• 16:14
  know,
• 16:14
  insurance
• 16:15
  and
• 16:15
  thinking
• 16:15
  through
• 16:15
  those
• 16:16
  things,
• 16:16
  I
• 16:16
  think
• 16:16
  is
• 16:16
  also
• 16:17
  important.
• 16:17
  It
• 16:17
  just
• 16:17
  makes
• 16:18
  for,
• 16:18
  like
• 16:18
  you
• 16:18
  said,
• 16:18
  a
• 16:19
  much
• 16:19
  cleaner,
• 16:19
  smoother
• 16:20
  process
• 16:21
  many
• 16:21
  times.
• 16:21
  Yep.
• 16:22
  Keep
• 16:22
  in
• 16:22
  mind,
• 16:22
  guys,
• 16:23
  I
• 16:23
  know
• 16:23
  we
• 16:23
  have
• 16:23
  different
• 16:24
  listeners
• 16:24
  that
• 16:24
  are
• 16:25
  looking
• 16:25
  for
• 16:25
  different
• 16:26
  deals
• 16:26
  on,
• 16:26
  you
• 16:26
  know,
• 16:27
  on
• 16:27
  the
• 16:27
  show
• 16:28
  here.
• 16:28
  The
• 16:28
  MLS
• 16:28
  is
• 16:29
  really
• 16:29
  more
• 16:29
  for
• 16:29
  the
• 16:29
  residential
• 16:30
  market.
• 16:30
  So
• 16:30
  when
• 16:30
  we're
• 16:30
  using
• 16:31
  that
• 16:31
  acronym,
• 16:32
  you
• 16:32
  know,
• 16:32
  you
• 16:32
  will
• 16:32
  find
• 16:32
  smaller
• 16:33
  multifamily
• 16:33
  properties
• 16:34
  there.
• 16:34
  If
• 16:34
  you're
• 16:34
  looking
• 16:34
  for
• 16:35
  a
• 16:35
  duplex,
• 16:35
  you're
• 16:35
  looking
• 16:35
  for
• 16:36
  a
• 16:36
  four
• 16:36
  plex.
• 16:36
  Yeah,
• 16:37
  the
• 16:37
  MLS
• 16:37
  can
• 16:37
  definitely
• 16:38
  be
• 16:38
  a
• 16:38
  resource.
• 16:38
  Once
• 16:39
  you
• 16:39
  go
• 16:39
  into
• 16:39
  the
• 16:39
  commercial
• 16:40
  side,
• 16:40
  you
• 16:40
  don't
• 16:41
  really
• 16:41
  have
• 16:41
  an
• 16:41
  MLS
• 16:41
  per
• 16:42
  se,
• 16:42
  but
• 16:42
  the
• 16:42
  equivalent
• 16:43
  is
• 16:43
  just
• 16:43
  the.
• 16:43
  The
• 16:43
  on
• 16:44
  market.
• 16:44
  Lazy.
• 16:45
  Yep.
• 16:45
  And
• 16:46
  that's
• 16:46
  also
• 16:46
  why
• 16:46
  it's
• 16:47
  important
• 16:47
  to
• 16:47
  secure
• 16:47
  a
• 16:48
  great
• 16:48
  broker.
• 16:48
  I
• 16:48
  look
• 16:49
  for
• 16:49
  properties
• 16:49
  on
• 16:49
  MLS
• 16:50
  Costar,
• 16:51
  Crexi,
• 16:51
  LoopNet.
• 16:52
  I
• 16:52
  look
• 16:53
  for
• 16:53
  properties
• 16:53
  on
• 16:54
  other
• 16:54
  sites
• 16:55
  that
• 16:55
  I
• 16:55
  actually
• 16:55
  have
• 16:55
  AI
• 16:56
  scraping
• 16:56
  websites
• 16:57
  of
• 16:57
  different
• 16:57
  commercial
• 16:58
  development
• 16:58
  firms.
• 16:59
  So,
• 16:59
  like,
• 16:59
  I
• 16:59
  look
• 17:00
  for
• 17:00
  properties
• 17:00
  through
• 17:00
  a
• 17:00
  variety
• 17:01
  of
• 17:01
  different
• 17:01
  sources
• 17:02
  because
• 17:02
  like
• 17:02
  you
• 17:03
  said,
• 17:03
  there
• 17:03
  isn't
• 17:03
  really
• 17:03
  a
• 17:03
  commercial
• 17:04
  mls.
• 17:04
  So
• 17:05
  especially
• 17:05
  as
• 17:05
  you
• 17:05
  get
• 17:05
  into
• 17:06
  commercial
• 17:06
  multifamily,
• 17:07
  securing
• 17:07
  the
• 17:07
  right
• 17:07
  work
• 17:08
  team,
• 17:08
  including
• 17:08
  a
• 17:08
  great
• 17:09
  broker,
• 17:09
  to
• 17:09
  help
• 17:10
  you
• 17:10
  secure
• 17:10
  options
• 17:11
  of
• 17:11
  properties,
• 17:11
  is
• 17:11
  really
• 17:12
  important.
• 17:12
  Okay,
• 17:12
  so
• 17:12
  then
• 17:13
  we
• 17:13
  have
• 17:13
  number
• 17:13
  seven.
• 17:14
  You
• 17:14
  have
• 17:14
  to
• 17:14
  be
• 17:15
  hands
• 17:15
  on
• 17:15
  with
• 17:15
  every
• 17:15
  aspect
• 17:16
  of
• 17:16
  the
• 17:16
  investment.
• 17:17
  You
• 17:17
  know,
• 17:17
  as
• 17:17
  somebody
• 17:18
  who's
• 17:18
  a
• 17:18
  control
• 17:18
  freak,
• 17:19
  I
• 17:19
  tend
• 17:20
  to
• 17:20
  be
• 17:20
  pretty
• 17:20
  hands
• 17:20
  on
• 17:20
  with
• 17:21
  most
• 17:21
  things,
• 17:21
  but
• 17:21
  you
• 17:22
  don't
• 17:22
  need
• 17:22
  to
• 17:22
  be.
• 17:22
  And
• 17:22
  there's
• 17:22
  probably
• 17:23
  more
• 17:23
  effective
• 17:23
  ways
• 17:24
  to
• 17:24
  do
• 17:24
  it.
• 17:24
  I'll
• 17:24
  let
• 17:24
  Erica
• 17:25
  talk
• 17:25
  about
• 17:25
  some
• 17:25
  of
• 17:25
  those
• 17:25
  because
• 17:26
  she's
• 17:26
  a
• 17:26
  little
• 17:26
  more,
• 17:27
  you
• 17:27
  know,
• 17:27
  tech
• 17:27
  savvy
• 17:28
  than
• 17:28
  I
• 17:28
  am
• 17:28
  and
• 17:28
  she
• 17:28
  probably
• 17:29
  delegates
• 17:29
  better
• 17:29
  than
• 17:29
  I
• 17:30
  do.
• 17:30
  So,
• 17:30
  Erica,
• 17:31
  what
• 17:31
  do
• 17:31
  you
• 17:31
  find
• 17:32
  effective
• 17:32
  that
• 17:33
  people
• 17:33
  can
• 17:33
  use
• 17:33
  in
• 17:33
  this,
• 17:34
  in.
• 17:34
  This
• 17:34
  area
• 17:34
  for
• 17:35
  being
• 17:36
  a
• 17:36
  little
• 17:36
  bit
• 17:36
  more
• 17:36
  hands
• 17:36
  off
• 17:36
  with
• 17:37
  your
• 17:37
  assets?
• 17:38
  Right.
• 17:38
  So.
• 17:39
  So
• 17:39
  how
• 17:39
  do
• 17:39
  we
• 17:39
  dispel
• 17:40
  the
• 17:40
  myth
• 17:40
  that
• 17:41
  you
• 17:41
  need
• 17:41
  to
• 17:41
  be
• 17:41
  hands
• 17:41
  on?
• 17:42
  I
• 17:42
  just
• 17:42
  do
• 17:42
  it
• 17:42
  by
• 17:42
  choice.
• 17:43
  I
• 17:43
  think
• 17:44
  that
• 17:44
  also
• 17:44
  goes
• 17:44
  back
• 17:45
  to
• 17:45
  your
• 17:46
  property
• 17:46
  manager.
• 17:47
  Your
• 17:47
  property
• 17:48
  manager,
• 17:48
  the
• 17:48
  ones
• 17:48
  that
• 17:48
  you're
• 17:49
  interviewing,
• 17:49
  they
• 17:49
  should
• 17:50
  have
• 17:50
  the
• 17:50
  correct
• 17:50
  technology
• 17:51
  systems
• 17:51
  in
• 17:51
  place
• 17:52
  to
• 17:52
  make
• 17:52
  sure
• 17:52
  that
• 17:53
  It's
• 17:53
  a
• 17:53
  smooth
• 17:53
  process
• 17:54
  for
• 17:54
  your
• 17:54
  tenants
• 17:54
  and
• 17:55
  that
• 17:55
  you're
• 17:55
  mitigating
• 17:55
  the
• 17:56
  risk,
• 17:56
  how
• 17:56
  they
• 17:56
  qualify
• 17:57
  those
• 17:57
  tenants
• 17:58
  is
• 17:58
  extremely
• 17:59
  important.
• 17:59
  I
• 17:59
  think
• 18:00
  this,
• 18:00
  yeah,
• 18:00
  it
• 18:00
  really
• 18:01
  goes
• 18:01
  back
• 18:01
  to
• 18:01
  your
• 18:01
  work
• 18:02
  network.
• 18:02
  Those
• 18:02
  are
• 18:03
  the
• 18:03
  people
• 18:03
  that
• 18:03
  are
• 18:03
  going
• 18:03
  to
• 18:03
  make
• 18:03
  this
• 18:03
  easiest
• 18:04
  for
• 18:04
  you
• 18:04
  also
• 18:05
  including
• 18:06
  your
• 18:06
  contractor,
• 18:06
  your
• 18:06
  handyman.
• 18:07
  There's
• 18:07
  going
• 18:08
  to
• 18:08
  be
• 18:08
  capital
• 18:08
  expenditures
• 18:09
  and
• 18:09
  repairs
• 18:09
  on
• 18:09
  every
• 18:10
  property.
• 18:10
  And
• 18:11
  so
• 18:11
  having
• 18:12
  the
• 18:12
  right
• 18:12
  contractor
• 18:13
  and
• 18:13
  handyman
• 18:14
  to
• 18:15
  mitigate
• 18:15
  that,
• 18:15
  and
• 18:16
  especially
• 18:16
  if
• 18:16
  you're
• 18:16
  doing
• 18:17
  value
• 18:17
  add
• 18:17
  on
• 18:18
  multifamily.
• 18:18
  So
• 18:19
  if
• 18:19
  you
• 18:19
  have
• 18:19
  a
• 18:19
  contractor
• 18:20
  coming
• 18:20
  in
• 18:20
  and
• 18:20
  doing
• 18:20
  value
• 18:21
  add
• 18:21
  and
• 18:21
  doing
• 18:21
  like
• 18:22
  interior
• 18:22
  construction
• 18:23
  on
• 18:23
  each
• 18:24
  unit,
• 18:24
  you
• 18:24
  definitely
• 18:25
  want
• 18:25
  to
• 18:25
  make
• 18:25
  sure
• 18:26
  you
• 18:26
  have
• 18:26
  the
• 18:26
  right
• 18:26
  people
• 18:26
  at
• 18:27
  that
• 18:27
  point.
• 18:27
  Because
• 18:28
  going
• 18:28
  over
• 18:29
  on
• 18:29
  expenses,
• 18:30
  when
• 18:30
  you
• 18:30
  do
• 18:30
  it
• 18:30
  at
• 18:30
  scale,
• 18:31
  that's
• 18:31
  where
• 18:32
  you
• 18:32
  know
• 18:32
  it
• 18:32
  can
• 18:32
  mess
• 18:33
  up
• 18:33
  your
• 18:33
  entire
• 18:33
  cash
• 18:34
  flow
• 18:34
  equation.
• 18:35
  So
• 18:35
  I
• 18:35
  think
• 18:35
  that
• 18:35
  your
• 18:36
  work
• 18:36
  network
• 18:36
  is,
• 18:36
  is
• 18:37
  really,
• 18:37
  really
• 18:37
  important
• 18:38
  to
• 18:38
  making
• 18:38
  sure
• 18:38
  the
• 18:38
  asset
• 18:39
  remains
• 18:39
  hands
• 18:39
  off
• 18:40
  totally.
• 18:40
  And
• 18:41
  another
• 18:41
  way
• 18:41
  to
• 18:41
  do
• 18:41
  it,
• 18:41
  if
• 18:42
  you
• 18:42
  want
• 18:42
  to
• 18:42
  invest
• 18:42
  passively
• 18:43
  now,
• 18:43
  this
• 18:43
  would
• 18:43
  require
• 18:44
  having
• 18:44
  some
• 18:44
  money,
• 18:44
  but
• 18:44
  you
• 18:44
  could
• 18:45
  also
• 18:45
  be
• 18:45
  a
• 18:45
  passive
• 18:45
  investor
• 18:46
  in
• 18:46
  a
• 18:46
  syndication
• 18:46
  deal.
• 18:47
  So
• 18:47
  if
• 18:47
  you
• 18:47
  do
• 18:47
  that,
• 18:48
  you
• 18:48
  know,
• 18:48
  it's
• 18:48
  a
• 18:48
  pretty
• 18:48
  hands
• 18:49
  off
• 18:49
  approach,
• 18:49
  but
• 18:50
  it
• 18:50
  does
• 18:50
  require
• 18:50
  some
• 18:51
  capital.
• 18:51
  So
• 18:51
  it
• 18:51
  depends
• 18:51
  on
• 18:52
  which
• 18:52
  approach
• 18:52
  you
• 18:53
  look.
• 18:53
  Yep,
• 18:53
  absolutely.
• 18:54
  Myth
• 18:54
  number
• 18:54
  eight,
• 18:55
  this
• 18:55
  is
• 18:55
  probably
• 18:55
  a
• 18:56
  pretty
• 18:56
  easy
• 18:56
  one
• 18:56
  to
• 18:56
  dispel.
• 18:57
  Multi
• 18:57
  family
• 18:58
  properties
• 18:58
  don't
• 18:58
  appreciate
• 18:59
  as
• 18:59
  much
• 19:00
  as
• 19:00
  single
• 19:00
  family.
• 19:01
  What
• 19:01
  do
• 19:01
  you
• 19:01
  think
• 19:01
  about
• 19:01
  that,
• 19:01
  Erica?
• 19:02
  So
• 19:03
  I
• 19:03
  agree
• 19:04
  actually
• 19:04
  that
• 19:05
  multifamily
• 19:05
  doesn't
• 19:05
  appreciate
• 19:06
  at
• 19:06
  the
• 19:06
  same
• 19:07
  rate
• 19:07
  as
• 19:07
  single
• 19:07
  family.
• 19:08
  However,
• 19:09
  multifamily,
• 19:10
  based
• 19:10
  on
• 19:10
  the
• 19:10
  age
• 19:10
  of
• 19:11
  the
• 19:11
  building,
• 19:12
  the
• 19:12
  land
• 19:12
  value
• 19:13
  becomes
• 19:14
  significant
• 19:14
  enough
• 19:15
  that
• 19:15
  for
• 19:15
  instance,
• 19:16
  here
• 19:16
  in
• 19:16
  Charlotte
• 19:16
  area,
• 19:17
  like
• 19:17
  in
• 19:17
  south
• 19:17
  Charlotte,
• 19:18
  we're
• 19:18
  about
• 19:18
  to
• 19:18
  tear
• 19:19
  down.
• 19:19
  It's
• 19:19
  like
• 19:20
  a
• 19:20
  almost
• 19:20
  200
• 19:21
  unit
• 19:21
  complex
• 19:22
  that
• 19:22
  was
• 19:22
  built
• 19:22
  in
• 19:22
  1980s
• 19:23
  and
• 19:24
  it's
• 19:24
  going
• 19:24
  to
• 19:24
  be
• 19:25
  torn
• 19:25
  down
• 19:25
  to
• 19:26
  build
• 19:26
  new
• 19:26
  multifamily
• 19:28
  because
• 19:28
  the
• 19:28
  land
• 19:29
  value
• 19:29
  has
• 19:29
  appreciated
• 19:30
  that
• 19:30
  much.
• 19:31
  So
• 19:31
  I
• 19:31
  do
• 19:31
  think
• 19:32
  that
• 19:32
  while
• 19:33
  like
• 19:33
  year
• 19:34
  over
• 19:34
  year,
• 19:34
  multifamily
• 19:35
  might
• 19:35
  not
• 19:35
  appreciate
• 19:36
  on
• 19:36
  the
• 19:36
  same
• 19:37
  trajectory
• 19:37
  as
• 19:37
  single
• 19:38
  family,
• 19:38
  you
• 19:38
  still
• 19:39
  have
• 19:39
  the
• 19:39
  appreciation
• 19:39
  of
• 19:40
  land
• 19:40
  values
• 19:40
  that
• 19:40
  the
• 19:40
  multifamily
• 19:41
  is
• 19:41
  sitting
• 19:41
  on.
• 19:42
  And
• 19:42
  many
• 19:42
  times
• 19:42
  what
• 19:43
  you'll
• 19:43
  find
• 19:43
  is
• 19:43
  after
• 19:43
  a
• 19:44
  certain
• 19:44
  amount
• 19:44
  of
• 19:44
  time
• 19:45
  it
• 19:45
  does
• 19:45
  make
• 19:45
  sense
• 19:45
  to
• 19:45
  tear
• 19:46
  that
• 19:46
  down
• 19:46
  and
• 19:47
  many
• 19:47
  times
• 19:47
  build
• 19:47
  more
• 19:48
  multifamily.
• 19:49
  So
• 19:49
  that's
• 19:49
  what
• 19:49
  I'm
• 19:49
  seeing
• 19:49
  in
• 19:49
  Charlotte
• 19:50
  right
• 19:50
  now.
• 19:50
  You
• 19:51
  know,
• 19:52
  I'm
• 19:52
  actually
• 19:52
  going
• 19:52
  to
• 19:52
  look
• 19:53
  at
• 19:53
  it
• 19:53
  from
• 19:53
  a
• 19:53
  different
• 19:53
  perspective.
• 19:54
  So
• 19:55
  with
• 19:55
  multifamily
• 19:56
  you
• 19:57
  may
• 19:57
  not
• 19:57
  get
• 19:57
  the
• 19:57
  same
• 19:58
  ROI
• 19:59
  of
• 19:59
  percentage
• 19:59
  return
• 19:59
  that
• 20:00
  you
• 20:00
  would
• 20:00
  with
• 20:00
  single
• 20:00
  family.
• 20:01
  It's
• 20:01
  rare
• 20:01
  that
• 20:01
  you
• 20:01
  will
• 20:02
  actually,
• 20:02
  but
• 20:02
  when
• 20:03
  you
• 20:03
  start
• 20:03
  making
• 20:03
  more
• 20:03
  money
• 20:04
  is
• 20:04
  on
• 20:04
  the
• 20:04
  actual
• 20:05
  dollars.
• 20:05
  And
• 20:06
  obviously
• 20:06
  when
• 20:06
  you're
• 20:06
  dealing
• 20:07
  with
• 20:07
  the
• 20:07
  larger
• 20:07
  property,
• 20:07
  even
• 20:08
  if
• 20:08
  you
• 20:08
  have
• 20:08
  a
• 20:08
  lower
• 20:08
  rate
• 20:08
  of
• 20:09
  return,
• 20:09
  it
• 20:09
  equates
• 20:09
  to
• 20:10
  more
• 20:10
  dollars
• 20:10
  because
• 20:11
  it's
• 20:11
  just
• 20:11
  a
• 20:11
  bigger
• 20:11
  property.
• 20:12
  So
• 20:13
  what's
• 20:13
  the
• 20:13
  difference
• 20:13
  with
• 20:13
  valuations?
• 20:14
  Well,
• 20:14
  single
• 20:15
  family
• 20:15
  is
• 20:15
  driven
• 20:16
  by
• 20:16
  comps
• 20:16
  in
• 20:17
  the
• 20:17
  market.
• 20:17
  Now,
• 20:18
  most
• 20:18
  multifamily
• 20:19
  investors
• 20:19
  do
• 20:19
  look
• 20:20
  at
• 20:20
  comps
• 20:20
  also,
• 20:20
  but
• 20:21
  it's
• 20:21
  not
• 20:21
  the
• 20:21
  only
• 20:21
  driver.
• 20:22
  So
• 20:22
  if
• 20:22
  you're
• 20:22
  looking
• 20:23
  at
• 20:23
  like
• 20:23
  a
• 20:23
  duplex
• 20:23
  or
• 20:23
  a
• 20:24
  triplex,
• 20:24
  then
• 20:25
  cops
• 20:25
  are
• 20:25
  the
• 20:25
  only
• 20:25
  drivers.
• 20:26
  Let
• 20:26
  me
• 20:26
  be
• 20:26
  clear
• 20:26
  on
• 20:26
  that.
• 20:27
  But
• 20:27
  if
• 20:27
  you're
• 20:27
  looking
• 20:28
  at
• 20:28
  a
• 20:28
  20
• 20:29
  or
• 20:29
  50
• 20:29
  or
• 20:29
  100
• 20:30
  unit
• 20:30
  apartment
• 20:30
  building,
• 20:31
  then
• 20:31
  those
• 20:31
  are
• 20:31
  driven
• 20:32
  really
• 20:32
  by
• 20:32
  cap
• 20:32
  rates
• 20:32
  a
• 20:33
  lot
• 20:33
  of
• 20:33
  times.
• 20:33
  And
• 20:34
  they
• 20:34
  are
• 20:34
  driven
• 20:34
  by
• 20:34
  comps
• 20:35
  also,
• 20:35
  but
• 20:35
  just
• 20:35
  as
• 20:35
  much
• 20:36
  by
• 20:36
  income
• 20:36
  and
• 20:36
  by
• 20:37
  cap
• 20:37
  rates.
• 20:37
  One
• 20:38
  of
• 20:38
  the
• 20:38
  things
• 20:38
  that
• 20:38
  happens
• 20:39
  that
• 20:39
  can
• 20:39
  give
• 20:39
  multifamily
• 20:40
  an
• 20:40
  advantage
• 20:41
  or
• 20:41
  also
• 20:41
  a
• 20:41
  disadvantage,
• 20:42
  but
• 20:42
  an
• 20:43
  advantage
• 20:43
  in
• 20:43
  this
• 20:43
  case
• 20:44
  is
• 20:44
  that
• 20:44
  cap
• 20:45
  rates
• 20:45
  can
• 20:45
  change.
• 20:45
  So
• 20:46
  if
• 20:46
  we
• 20:46
  look
• 20:46
  back
• 20:46
  at
• 20:47
  the
• 20:47
  last
• 20:47
  cycle,
• 20:47
  there
• 20:48
  was
• 20:48
  a
• 20:48
  lot
• 20:48
  of
• 20:48
  people
• 20:48
  that
• 20:49
  invested
• 20:49
  in
• 20:49
  multifamily
• 20:50
  who
• 20:50
  made
• 20:50
  a
• 20:50
  lot
• 20:50
  of
• 20:50
  money
• 20:51
  because
• 20:51
  cap
• 20:51
  rates
• 20:51
  were
• 20:52
  compressing.
• 20:52
  So
• 20:53
  even
• 20:53
  if
• 20:53
  the
• 20:54
  things
• 20:54
  didn't
• 20:54
  go
• 20:54
  100%
• 20:55
  as
• 20:55
  expected
• 20:56
  with
• 20:56
  the
• 20:56
  operation
• 20:57
  or
• 20:57
  even
• 20:57
  the
• 20:57
  acquisition
• 20:58
  of
• 20:58
  the
• 20:58
  property,
• 20:58
  not
• 20:59
  that
• 20:59
  I'm
• 20:59
  encouraging
• 20:59
  that,
• 21:00
  but
• 21:00
  even
• 21:00
  if
• 21:00
  they
• 21:00
  didn't,
• 21:01
  a
• 21:01
  lot
• 21:01
  of
• 21:01
  people
• 21:01
  still
• 21:01
  made
• 21:02
  money
• 21:02
  because
• 21:02
  cap
• 21:03
  rates
• 21:03
  compressed
• 21:03
  and
• 21:04
  they
• 21:04
  did
• 21:04
  quite
• 21:04
  well.
• 21:05
  You
• 21:05
  know,
• 21:05
  one
• 21:05
  deal
• 21:05
  that
• 21:05
  stands
• 21:06
  out
• 21:06
  to
• 21:06
  me,
• 21:06
  just
• 21:06
  to
• 21:07
  illustrate
• 21:07
  a
• 21:07
  really
• 21:07
  large
• 21:08
  example,
• 21:08
  there
• 21:08
  was
• 21:09
  a
• 21:09
  deal
• 21:09
  I
• 21:09
  was
• 21:09
  looking
• 21:09
  at
• 21:09
  in
• 21:10
  2021.
• 21:11
  There
• 21:11
  was
• 21:12
  a
• 21:12
  deal
• 21:12
  in
• 21:12
  Charlotte,
• 21:12
  pretty
• 21:13
  decent
• 21:13
  area,
• 21:13
  nice
• 21:14
  property,
• 21:14
  and
• 21:15
  like
• 21:15
  a
• 21:15
  300
• 21:15
  unit
• 21:16
  apartment
• 21:16
  complex.
• 21:17
  The
• 21:17
  broker
• 21:17
  that
• 21:17
  was
• 21:18
  listing
• 21:18
  it
• 21:18
  was
• 21:19
  aiming
• 21:19
  to
• 21:19
  get
• 21:19
  somewhere
• 21:20
  around
• 21:20
  $78
• 21:20
  million
• 21:21
  for
• 21:21
  the
• 21:21
  complex.
• 21:22
  They
• 21:22
  actually
• 21:22
  sold
• 21:22
  it
• 21:23
  for
• 21:23
  like
• 21:21
  91
• 21:23
  million.
• 21:24
  So
• 21:24
  needless
• 21:25
  to
• 21:25
  say,
• 21:25
  I'm
• 21:25
  sure
• 21:26
  that
• 21:26
  the
• 21:26
  seller
• 21:27
  was
• 21:27
  quite
• 21:27
  happy
• 21:27
  with
• 21:27
  that
• 21:28
  return
• 21:28
  because
• 21:29
  it
• 21:29
  probably
• 21:29
  surprised
• 21:30
  even
• 21:30
  the
• 21:30
  broker.
• 21:30
  I
• 21:30
  don't
• 21:31
  think
• 21:31
  they
• 21:31
  expected
• 21:31
  that
• 21:32
  that's
• 21:32
  not
• 21:32
  going
• 21:33
  to
• 21:33
  happen
• 21:33
  in
• 21:33
  every
• 21:33
  deal.
• 21:34
  But
• 21:34
  that's
• 21:34
  just
• 21:34
  an
• 21:35
  example.
• 21:35
  And
• 21:36
  the
• 21:36
  reason
• 21:36
  that
• 21:36
  happens
• 21:37
  is
• 21:37
  because
• 21:37
  one,
• 21:37
  cap
• 21:37
  rates
• 21:38
  compress
• 21:38
  and
• 21:39
  two,
• 21:39
  you
• 21:39
  have
• 21:39
  a
• 21:39
  big
• 21:40
  buyer
• 21:40
  pool.
• 21:41
  So
• 21:41
  when
• 21:41
  you're
• 21:41
  looking
• 21:41
  at
• 21:42
  smaller
• 21:43
  multifamily,
• 21:43
  usually
• 21:44
  up
• 21:44
  to
• 21:44
  20
• 21:44
  units
• 21:45
  and
• 21:45
  larger
• 21:45
  multifamily,
• 21:46
  let's
• 21:46
  call
• 21:46
  it
• 21:46
  150
• 21:47
  units
• 21:47
  and
• 21:47
  above,
• 21:48
  you're
• 21:48
  dealing
• 21:48
  with
• 21:48
  big
• 21:48
  buyer
• 21:49
  pools,
• 21:49
  and
• 21:49
  especially
• 21:50
  when
• 21:50
  you
• 21:50
  get
• 21:50
  on
• 21:50
  that
• 21:50
  larger
• 21:51
  side,
• 21:51
  at
• 21:51
  that
• 21:51
  point
• 21:51
  you
• 21:51
  start
• 21:52
  dealing
• 21:52
  with,
• 21:52
  you
• 21:52
  know,
• 21:52
  a
• 21:53
  lot
• 21:53
  of
• 21:53
  institutional
• 21:53
  players
• 21:54
  and
• 21:54
  they
• 21:55
  pay
• 21:55
  pretty
• 21:55
  premium
• 21:56
  prices
• 21:56
  on
• 21:56
  things.
• 21:57
  So
• 21:57
  because
• 21:57
  of
• 21:57
  that,
• 21:58
  if
• 21:58
  you're
• 21:58
  selling
• 21:58
  something
• 21:59
  to
• 21:59
  them,
• 21:59
  you
• 21:59
  can
• 21:59
  also
• 21:59
  have
• 22:00
  to
• 22:00
  stand
• 22:00
  to
• 22:00
  the
• 22:00
  benefit
• 22:01
  and
• 22:01
  be
• 22:01
  in
• 22:01
  a
• 22:01
  pretty
• 22:01
  good
• 22:01
  position.
• 22:02
  Yeah,
• 22:02
  that's.
• 22:03
  I
• 22:04
  love
• 22:04
  that.
• 22:04
  Such
• 22:05
  good
• 22:05
  perspective.
• 22:06
  So
• 22:06
  number
• 22:07
  nine,
• 22:07
  multifamily
• 22:08
  investments
• 22:08
  are
• 22:08
  not
• 22:09
  as
• 22:09
  liquid.
• 22:10
  What
• 22:10
  do
• 22:10
  you
• 22:10
  think
• 22:10
  there?
• 22:11
  I
• 22:11
  think
• 22:11
  real
• 22:11
  estate
• 22:12
  in
• 22:12
  general
• 22:12
  is
• 22:13
  not
• 22:13
  as
• 22:13
  liquid
• 22:14
  as
• 22:14
  maybe
• 22:14
  some
• 22:15
  other
• 22:15
  investments
• 22:15
  are.
• 22:16
  However,
• 22:17
  the.
• 22:17
  There's
• 22:17
  pros
• 22:18
  to
• 22:18
  that
• 22:19
  where
• 22:19
  it
• 22:19
  retains
• 22:20
  value,
• 22:20
  in
• 22:20
  my
• 22:20
  opinion,
• 22:21
  better.
• 22:21
  I
• 22:21
  think
• 22:21
  that
• 22:22
  in
• 22:22
  my
• 22:22
  market,
• 22:23
  I
• 22:23
  have.
• 22:24
  So
• 22:24
  I
• 22:25
  am.
• 22:25
  We
• 22:25
  are
• 22:25
  so
• 22:25
  inundated
• 22:26
  and
• 22:26
  saturated
• 22:27
  with
• 22:27
  investors
• 22:28
  for
• 22:28
  multifamily
• 22:29
  specifically,
• 22:30
  that
• 22:30
  I've
• 22:31
  joked
• 22:31
  over
• 22:31
  the
• 22:31
  years
• 22:32
  that,
• 22:32
  like,
• 22:32
  it's
• 22:33
  not
• 22:33
  real
• 22:33
  estate
• 22:33
  is
• 22:33
  not
• 22:34
  liquid,
• 22:34
  but,
• 22:34
  gosh,
• 22:35
  in
• 22:35
  certain
• 22:35
  markets,
• 22:36
  in
• 22:36
  certain
• 22:36
  times,
• 22:36
  it
• 22:37
  definitely
• 22:37
  seems
• 22:37
  like
• 22:37
  it.
• 22:38
  So
• 22:38
  if,
• 22:39
  you
• 22:39
  know,
• 22:39
  a
• 22:39
  multifamily
• 22:39
  asset
• 22:40
  were
• 22:40
  to
• 22:40
  pop
• 22:40
  up
• 22:40
  right
• 22:40
  now
• 22:41
  on
• 22:41
  market,
• 22:41
  I'd
• 22:42
  have
• 22:42
  no
• 22:42
  problem
• 22:42
  getting
• 22:43
  it
• 22:43
  closed
• 22:43
  within
• 22:43
  the
• 22:44
  next
• 22:44
  60
• 22:44
  days,
• 22:44
  no
• 22:45
  matter
• 22:45
  what
• 22:45
  the
• 22:45
  size
• 22:46
  is.
• 22:46
  Even
• 22:46
  so,
• 22:47
  there's.
• 22:48
  Depending
• 22:48
  on
• 22:48
  the
• 22:48
  market,
• 22:49
  depending
• 22:49
  on
• 22:49
  the
• 22:49
  timing
• 22:50
  of
• 22:50
  the
• 22:50
  market,
• 22:51
  real
• 22:51
  estate
• 22:51
  becomes
• 22:52
  much
• 22:52
  more
• 22:52
  liquid.
• 22:52
  And
• 22:53
  right
• 22:53
  now,
• 22:54
  we're
• 22:54
  still
• 22:54
  at
• 22:54
  such
• 22:54
  a
• 22:55
  shortage
• 22:55
  of
• 22:55
  inventory
• 22:56
  nationally
• 22:57
  that
• 22:57
  I
• 22:57
  don't
• 22:57
  see
• 22:58
  that
• 22:58
  changing
• 22:58
  in
• 22:59
  the
• 22:59
  near
• 22:59
  future.
• 23:00
  Awesome.
• 23:00
  And
• 23:01
  then
• 23:01
  we
• 23:01
  have
• 23:01
  our
• 23:01
  last
• 23:02
  one
• 23:02
  here.
• 23:03
  Multifamily
• 23:03
  Myth
• 23:04
  number
• 23:04
  10.
• 23:04
  Multifamily
• 23:05
  investing
• 23:06
  is
• 23:06
  all
• 23:06
  about
• 23:06
  cash
• 23:07
  flow.
• 23:07
  So
• 23:08
  in
• 23:08
  my
• 23:09
  personal
• 23:09
  experience,
• 23:10
  multifamily
• 23:10
  investing
• 23:11
  is
• 23:11
  actually
• 23:11
  more
• 23:11
  about
• 23:12
  mitigating
• 23:12
  taxes.
• 23:13
  So
• 23:14
  when
• 23:14
  you
• 23:14
  get
• 23:14
  to
• 23:15
  a
• 23:15
  point
• 23:15
  that
• 23:15
  you're
• 23:15
  investing
• 23:15
  in
• 23:16
  the
• 23:16
  larger
• 23:16
  multifamily
• 23:17
  assets,
• 23:17
  cash
• 23:18
  flow
• 23:18
  is
• 23:18
  king.
• 23:18
  Obviously,
• 23:19
  cash
• 23:19
  flow
• 23:19
  is
• 23:19
  very,
• 23:20
  very
• 23:20
  important.
• 23:21
  And
• 23:21
  I
• 23:21
  think
• 23:21
  that
• 23:22
  also
• 23:22
  important
• 23:23
  along
• 23:23
  with
• 23:23
  cash
• 23:23
  flow
• 23:24
  is
• 23:24
  the
• 23:24
  potential
• 23:25
  that
• 23:25
  you
• 23:25
  have
• 23:25
  for
• 23:26
  rent
• 23:26
  bump
• 23:26
  per
• 23:26
  door
• 23:27
  that
• 23:27
  will
• 23:27
  lead
• 23:28
  to
• 23:28
  the
• 23:28
  value.
• 23:28
  Add
• 23:29
  that
• 23:29
  to
• 23:29
  get
• 23:29
  you
• 23:29
  to
• 23:29
  the
• 23:29
  cash
• 23:30
  flow
• 23:30
  that
• 23:30
  you
• 23:30
  actually
• 23:30
  really
• 23:31
  want.
• 23:31
  So
• 23:31
  I
• 23:31
  think
• 23:32
  that's
• 23:32
  really
• 23:32
  important
• 23:32
  to
• 23:33
  look
• 23:33
  at
• 23:33
  right
• 23:33
  now.
• 23:34
  But
• 23:34
  most
• 23:34
  of
• 23:34
  my
• 23:35
  clients
• 23:35
  are
• 23:35
  actually
• 23:35
  purchasing
• 23:36
  multifamily
• 23:36
  to
• 23:37
  mitigate
• 23:37
  their
• 23:37
  taxes.
• 23:38
  Do
• 23:38
  a
• 23:38
  cost
• 23:38
  seg
• 23:39
  study
• 23:39
  at
• 23:39
  the
• 23:39
  beginning
• 23:39
  of
• 23:40
  the
• 23:40
  purchase,
• 23:41
  and
• 23:41
  then
• 23:41
  depreciate
• 23:42
  the
• 23:42
  asset
• 23:42
  and
• 23:43
  1031
• 23:43
  money
• 23:43
  into
• 23:44
  the
• 23:44
  next
• 23:44
  one.
• 23:44
  Yeah,
• 23:45
  I
• 23:45
  think
• 23:45
  you
• 23:46
  got
• 23:46
  that
• 23:46
  perspective
• 23:46
  right.
• 23:47
  Cash
• 23:47
  flow
• 23:47
  is
• 23:47
  important
• 23:47
  because
• 23:48
  it
• 23:48
  keeps
• 23:48
  you
• 23:48
  afloat.
• 23:49
  It
• 23:49
  keeps
• 23:50
  the
• 23:50
  bills
• 23:50
  of
• 23:50
  the
• 23:50
  property
• 23:51
  paid.
• 23:51
  It
• 23:51
  keeps
• 23:52
  money
• 23:52
  coming
• 23:52
  in.
• 23:53
  You
• 23:53
  need
• 23:53
  that
• 23:53
  with
• 23:54
  any
• 23:54
  business.
• 23:54
  If
• 23:54
  you're
• 23:55
  running
• 23:55
  cash
• 23:55
  flow
• 23:55
  negative,
• 23:56
  eventually
• 23:56
  you
• 23:56
  got
• 23:57
  to
• 23:57
  have
• 23:57
  a
• 23:57
  problem.
• 23:57
  But
• 23:58
  most
• 23:58
  people
• 23:58
  I
• 23:58
  know
• 23:58
  who
• 23:58
  invest
• 23:59
  in
• 23:59
  apartments
• 24:00
  are
• 24:00
  usually
• 24:00
  doing
• 24:01
  so
• 24:01
  for
• 24:01
  the
• 24:01
  tax
• 24:01
  benefits.
• 24:02
  That's
• 24:02
  a
• 24:02
  big
• 24:02
  one.
• 24:02
  And
• 24:03
  really
• 24:03
  for
• 24:03
  appreciation.
• 24:04
  While
• 24:05
  appreciation
• 24:05
  should
• 24:06
  never
• 24:06
  be
• 24:06
  the
• 24:06
  whole
• 24:07
  cake,
• 24:07
  it's
• 24:07
  only
• 24:07
  the
• 24:07
  icing
• 24:08
  on
• 24:08
  the
• 24:08
  cake.
• 24:08
  It's
• 24:08
  a
• 24:09
  big
• 24:09
  piece
• 24:09
  of
• 24:09
  the
• 24:09
  cake
• 24:09
  with
• 24:09
  multi.
• 24:10
  And
• 24:10
  one
• 24:10
  of
• 24:11
  the
• 24:11
  reasons
• 24:11
  that
• 24:11
  there
• 24:11
  is
• 24:11
  such
• 24:11
  a
• 24:12
  big
• 24:12
  buyer
• 24:12
  pool
• 24:13
  is
• 24:13
  post
• 24:13
  pandemic.
• 24:14
  A
• 24:14
  lot
• 24:14
  of
• 24:15
  buyers
• 24:15
  who
• 24:15
  were
• 24:15
  investing
• 24:16
  in
• 24:16
  other
• 24:16
  commercial
• 24:16
  real
• 24:17
  estate
• 24:17
  asset
• 24:17
  classes,
• 24:18
  which
• 24:18
  they
• 24:18
  were
• 24:18
  multifamily
• 24:19
  because
• 24:19
  they
• 24:20
  became
• 24:20
  very
• 24:20
  concerned
• 24:21
  that
• 24:21
  some
• 24:21
  of
• 24:21
  those
• 24:21
  other
• 24:21
  asset
• 24:22
  classes
• 24:22
  weren't
• 24:23
  going
• 24:23
  to
• 24:23
  work
• 24:23
  so
• 24:23
  well.
• 24:24
  And
• 24:24
  as
• 24:25
  many
• 24:25
  of
• 24:25
  them
• 24:25
  shifted,
• 24:26
  a
• 24:26
  lot
• 24:26
  of
• 24:26
  them
• 24:26
  have
• 24:27
  stayed.
• 24:27
  And
• 24:27
  that's
• 24:28
  left
• 24:28
  a
• 24:28
  bigger
• 24:28
  buyer
• 24:29
  pool
• 24:29
  for
• 24:29
  multi
• 24:29
  family,
• 24:30
  which
• 24:30
  is
• 24:30
  basically
• 24:30
  driven
• 24:31
  values
• 24:31
  up
• 24:31
  to
• 24:32
  the
• 24:32
  long
• 24:32
  term.
• 24:32
  Yeah,
• 24:33
  absolutely.
• 24:34
  Well,
• 24:34
  guys,
• 24:34
  we
• 24:34
  want
• 24:35
  to
• 24:35
  thank
• 24:35
  you
• 24:35
  very
• 24:35
  much
• 24:35
  for
• 24:36
  joining
• 24:36
  us
• 24:36
  today
• 24:36
  for
• 24:36
  this
• 24:36
  episode.
• 24:37
  And
• 24:38
  we
• 24:38
  appreciate
• 24:38
  you
• 24:38
  listening
• 24:39
  to
• 24:39
  the
• 24:39
  Master
• 24:39
  Passive
• 24:40
  Income
• 24:40
  Multifamily
• 24:41
  podcast
• 24:41
  until
• 24:41
  next
• 24:42
  time.
• 24:42
  Thanks,
• 24:42
  guys.